Topaz Energy Corp (TPZ) AI Stock Analysis

• Market Cap: C$3.78B
• Dividend Yield: 5.3%
• Average Volume (3M): 436.91K
• Price to Earnings (P/E): 67.2
• Beta (1Y): 0.84
• Revenue Growth: 6.52%
• EPS Growth: -13.92%
• Country: CA
• Employees: 8
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.10
• Shares Outstanding: 153,800,000
• 10 Day Avg. Volume: 598,842
• 30 Day Avg. Volume: 436,906
• PEG Ratio: -29.03
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 13.61
• P/FCF Ratio: -25.25
• 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$30.88
• Price Target Upside: 22.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: C$27.00 ▲(6.72% Upside)

Topaz Energy Corp's overall stock score is driven by strong financial performance in terms of EBITDA margin and equity position, as well as positive earnings call highlights such as growth in royalty production and infrastructure revenue. However, the high P/E ratio and technical indicators suggest caution, with potential overvaluation and weak momentum. The company's debt levels and negative free cash flow are also areas of concern.

Positive Factors

Royalty Production Growth

The significant increase in royalty production indicates strong operational performance and enhances revenue stability, supporting long-term growth.

Infrastructure Utilization

High utilization of infrastructure assets maximizes efficiency and profitability, contributing to sustained operational success and competitive advantage.

Strategic Acquisition

The acquisition expands Topaz's asset base and aligns with growth projects, enhancing future revenue potential and strategic positioning.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain financial flexibility and cash flow, posing risks to long-term financial health and investment capacity.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues and may limit the company's ability to invest in growth opportunities without additional financing.

Declining Revenue

Declining revenue suggests challenges in market conditions or competitive pressures, which could impact long-term profitability and growth prospects.

Topaz Energy Corp Business Overview & Revenue Model

Company Description

Topaz Energy Corp (TPZ) is a dynamic energy company engaged in the exploration, production, and development of oil and natural gas resources. The company operates primarily in the upstream sector, focusing on the acquisition and development of oil and gas properties, leveraging advanced technologies to enhance production efficiency. Topaz Energy is committed to sustainable practices and innovation, providing reliable energy solutions while minimizing environmental impact.

How the Company Makes Money

Topaz Energy Corp generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its operational sites. The company's revenue model is built on long-term contracts and spot market sales, allowing for flexibility in pricing based on market conditions. Key revenue streams include production from owned and operated wells, as well as royalties from partnerships and joint ventures in exploration projects. Additionally, Topaz Energy benefits from strategic partnerships with other energy companies, allowing for shared resources and technologies that enhance operational efficiency and reduce costs, thus positively impacting overall earnings.

Topaz Energy Corp Financial Statement Overview

Summary

Topaz Energy Corp maintains a stable EBITDA margin and 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	329.12M	312.40M	321.42M	369.65M	211.54M	99.88M
Gross Profit	321.35M	305.05M	314.52M	363.27M	207.29M	95.67M
EBITDA	322.49M	293.00M	316.13M	351.45M	193.01M	88.21M
Net Income	62.91M	46.39M	47.64M	99.36M	27.56M	3.09M
Balance Sheet
Total Assets	1.83B	1.94B	1.70B	1.89B	1.67B	1.05B
Cash, Cash Equivalents and Short-Term Investments	306.00K	147.00K	3.46M	0.00	0.00	220.19M
Total Debt	525.49M	540.40M	391.64M	464.58M	276.86M	0.00
Total Liabilities	578.60M	627.64M	460.41M	532.40M	346.97M	43.62M
Stockholders Equity	1.26B	1.32B	1.24B	1.36B	1.32B	1.01B
Cash Flow
Free Cash Flow	-68.60M	-161.63M	246.03M	-36.81M	162.24M	82.39M
Operating Cash Flow	297.65M	276.27M	300.58M	317.88M	165.02M	83.64M
Investing Cash Flow	-384.76M	-439.99M	-51.96M	-354.10M	-921.40M	-172.63M
Financing Cash Flow	87.41M	160.41M	-245.16M	36.22M	536.20M	301.04M

Topaz Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 25.3 is above the 20-day moving average (MA) of 24.86, above the 50-day MA of 25.29, and above the 200-day MA of 24.50, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 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
PEY	81 Outperform	C$4.13B	12.25	12.21%	6.39%	7.02%	7.16%
KEY	72 Outperform	C$9.28B	17.49	18.92%	5.13%	1.57%	55.82%
FRU	69 Neutral	$2.28B	18.19	11.89%	7.56%	-0.92%	-23.14%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PSK	65 Neutral	C$5.95B	27.45	8.16%	3.98%	-1.59%	0.09%
TPZ	64 Neutral	C$3.78B	67.17	4.75%	5.30%	6.52%	-13.92%
GEI	59 Neutral	C$3.76B	24.92	16.47%	7.32%	-12.18%	-29.17%

Topaz Energy Corp Corporate Events

Topaz Energy Reports Record Growth in Q3 2025

Topaz Energy Corp announced a 15% growth in royalty production for the third quarter of 2025, reaching new record levels in Clearwater production. The company reported a cash flow increase of 7% per share compared to the previous year, with significant investments in its royalty acreage and a notable increase in processing revenue. Topaz’s strategic acquisition of NEBC Montney royalty assets from Tourmaline aligns with its growth plans, enhancing its market positioning. The company also reported a strong financial performance with a 95% free cash flow margin and a reduction in operating expenses and borrowing rates, indicating a robust operational and financial standing.

The most recent analyst rating on (TSE:TPZ) stock is a Buy with a C$29.75 price target. To see the full list of analyst forecasts on Topaz Energy Corp stock, see the TSE:TPZ Stock Forecast page.

Topaz Energy and Tourmaline Close $230 Million Secondary Offering

Topaz Energy Corp and Tourmaline Oil Corp have announced the closing of a $230 million secondary offering of Topaz’s common shares. The offering, which was made on a bought deal basis, involved the sale of 9.2 million shares by Tourmaline, reducing its equity position in Topaz as part of a long-term strategy. This move is expected to enhance Topaz’s trading liquidity and align with its structural objectives, although Topaz will not receive any proceeds from the sale.

The most recent analyst rating on (TSE:TPZ) stock is a Hold with a C$27.00 price target. To see the full list of analyst forecasts on Topaz Energy Corp stock, see the TSE:TPZ Stock Forecast page.

Tourmaline and Topaz Announce $200 Million Secondary Offering

Tourmaline Oil Corp and Topaz Energy Corp have announced a $200 million secondary offering of Topaz common shares, with Tourmaline selling 8 million shares to reduce its equity position in Topaz. This move is part of Tourmaline’s strategy to fund its NEBC Montney development project, which aims to significantly increase production and cash flow. The offering will enhance Topaz’s trading liquidity and align with its structural objectives.

The most recent analyst rating on (TSE:TPZ) stock is a Buy with a C$32.00 price target. To see the full list of analyst forecasts on Topaz Energy Corp stock, see the TSE:TPZ Stock Forecast page.

Topaz Energy Corp Acquires NEBC Montney Royalty Assets

Topaz Energy Corp has announced a $71.7 million acquisition of royalty interests on 134,000 acres in the NEBC Montney area from Tourmaline Oil Corp. This acquisition aligns with Tourmaline’s future growth projects and will be funded through Topaz’s existing credit facilities, potentially enhancing the company’s growth and market positioning.

The most recent analyst rating on (TSE:TPZ) stock is a Hold with a C$27.00 price target. To see the full list of analyst forecasts on Topaz Energy Corp stock, see the TSE:TPZ Stock Forecast page.