Topaz Energy Corp (TPZ) AI Stock Analysis

• Market Cap: C$4.07B
• Dividend Yield: 5.14%
• Average Volume (3M): 323.55K
• Price to Earnings (P/E): 74.4
• Beta (1Y): 0.82
• Revenue Growth: 2.02%
• EPS Growth: 12.06%
• Country: CA
• Employees: 8
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.14
• Shares Outstanding: 153,800,000
• 10 Day Avg. Volume: 377,771
• 30 Day Avg. Volume: 323,551
• PEG Ratio: 5.82
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -67.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$30.67
• Price Target Upside: 15.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: C$29.00 ▲(9.56%Upside)

Topaz Energy Corp's overall stock score is primarily driven by strong earnings call performance and positive corporate events, indicating strategic growth and solid shareholder confidence. Financial performance and technical analysis show areas for caution, particularly with revenue challenges and overbought technical indicators, while valuation suggests the stock is currently overpriced.

Positive Factors

Asset Portfolio

TPZ is appreciated for its high-quality asset portfolio which offers exposure to partner growth programs and defensive infrastructure revenue in a volatile market.

Dividend Increase

Investors should have increased confidence with another dividend bump, production guidance unchanged and a record 19% market-share of WCSB rig activity.

Value Creation

For every dollar spent, management created an additional $0.26 in value, showing strong potential for value creation.

Negative Factors

Inflationary Environment

Topaz stands out as a uniquely positioned company, especially amid uncertainties in the current inflationary environment.

Market Uncertainty

Topaz continues to be a well-positioned, defensive name amid uncertainties in the current macro environment.

Topaz Energy Corp Business Overview & Revenue Model

Company Description

Topaz Energy Corp. operates as a royalty and energy infrastructure company. It operates in Royalty Production and Infrastructure segments. The company holds gross overriding royalty interests on approximately 5.3 million gross acres of developed and undeveloped lands. It is also involved in the natural gas processing and water management infrastructure activities. The company was formerly known as Exshaw Oil Corp. and changed its name to Topaz Energy Corp. in November 2019. Topaz Energy Corp. was incorporated in 2006 and is headquartered in Calgary, Canada.

How the Company Makes Money

Topaz Energy Corp makes money through its portfolio of royalty interests and energy infrastructure assets. Its primary revenue stream comes from royalty payments, which are derived from the production of oil and gas from its royalty lands. These payments are typically a percentage of the revenue generated from the sale of oil and gas produced on these lands. Additionally, the company invests in and owns energy infrastructure assets, such as gas processing plants and natural gas pipelines, which provide further income through service fees and tariffs. Significant partnerships with exploration and production companies enable Topaz Energy Corp to enhance its asset base and ensure a steady flow of revenue.

Topaz Energy Corp Financial Statement Overview

Summary

Topaz Energy Corp exhibits strengths in maintaining a consistent EBITDA margin and a strong equity position. However, challenges such as declining revenue, increased leverage, and negative free cash flow highlight areas for improvement. The company needs to focus on revenue growth and managing its capital structure to ensure long-term financial health.

Income Statement

Topaz Energy Corp shows a stable gross profit margin and a positive EBITDA margin. However, the net profit margin is relatively low, and there is a decrease in total revenue from the previous year, indicating a challenge in revenue growth. The company's ability to maintain profitability through EBITDA is a positive sign, but the declining trend in EBIT and net income growth rate requires attention.

Balance Sheet

The company's debt-to-equity ratio has increased, suggesting a rise in leverage which might pose a risk if not managed properly. The equity ratio remains strong, indicating a solid financial position. Return on equity shows potential, but the increasing debt levels and reduced cash reserves could impact financial flexibility.

Cash Flow

Operating cash flow remains robust, though the free cash flow has turned negative due to significant capital expenditures. The company has a healthy operating cash flow to net income ratio, but the free cash flow decline indicates a need for careful management of capital expenditures to maintain liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
313.23M	299.80M	306.69M	356.74M	198.61M	89.64M
	Gross Profit
110.03M	103.36M	89.30M	147.28M	43.19M	4.15M
	EBIT
91.14M	80.91M	70.69M	143.16M	43.07M	4.75M
	EBITDA
304.84M	293.16M	315.42M	351.57M	193.10M	88.22M
	Net Income Common Stockholders
52.48M	46.39M	47.64M	99.36M	27.56M	3.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
220.19M	10.75M	3.46M	6.24M	801.00K	220.19M
	Total Assets
1.01B	1.89B	1.65B	1.84B	1.61B	1.01B
	Total Debt
0.00	540.40M	391.64M	464.58M	276.86M	0.00
	Net Debt
-220.19M	540.25M	388.18M	464.58M	276.86M	-220.19M
	Total Liabilities
2.82M	578.33M	403.37M	473.44M	286.83M	2.82M
	Stockholders Equity
1.01B	1.32B	1.24B	1.36B	1.32B	1.01B
Cash Flow		Free Cash Flow
-58.01M	-161.63M	246.03M	-36.81M	-757.08M	82.39M
	Operating Cash Flow
285.73M	276.27M	300.58M	317.88M	165.02M	83.64M
	Investing Cash Flow
-457.95M	-439.99M	-51.96M	-354.10M	-921.40M	-172.63M
	Financing Cash Flow
169.36M	160.41M	-245.16M	36.22M	536.20M	301.04M

Topaz Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TPZ, the sentiment is Positive. The current price of 26.47 is above the 20-day moving average (MA) of 25.23, above the 50-day MA of 23.96, and above the 200-day MA of 25.03, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 78.03 is Negative, neither overbought nor oversold. The STOCH value of 77.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TPZ.

Topaz Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPZ	70 Outperform	C$4.07B	74.35	4.22%	5.14%	2.02%	12.06%
Sector *	58 Neutral	$7.57B	3.50	-4.45%	10.15%	0.79%	-49.51%
GBNXF		$2.95B	25.44	17.23%	4.84%	―	―
FRHLF		$1.57B	13.47	15.22%	8.15%	―	―
PREKF		$4.11B	26.15	8.39%	4.15%	―	―
KEY	81 Outperform	C$9.76B	17.87	19.55%	4.88%	8.00%	52.89%
PEY	68 Neutral	C$4.11B	13.80	11.17%	6.40%	2.80%	-7.94%

Topaz Energy Corp Corporate Events

Topaz Energy Corp. Secures Shareholder Approval for Key Resolutions

Topaz Energy Corp. announced that all resolutions were approved at its annual shareholders’ meeting, including the appointment of eight directors and KPMG LLP as auditors. The company’s approach to executive compensation also received strong support. This outcome reflects shareholder confidence in Topaz’s strategic direction and governance, potentially strengthening its market position and stakeholder relations.

Topaz Energy Corp. Reports Record Q1 2025 Results and Increases Dividend

Topaz Energy Corp. reported a strong first quarter in 2025, with record royalty production and a notable increase in cash flow and free cash flow, both up by 13% per share compared to the previous year. The company achieved record processing revenue and announced a dividend increase, reflecting its strategy to align dividend growth with sustainable revenue increases. Topaz also extended its credit facility maturity date, maintaining a robust credit capacity, and continued to advance the construction of a new natural gas processing facility. These developments highlight Topaz’s strategic focus on enhancing shareholder value and expanding its operational capabilities.