Tudor, Pickering, Holt on Tuesday maintained its buy rating on the shares of Topaz Energy (TPZ.TO) with a C$29.00 price target following third-quarter results from the Western Canadian oil and gas royalty and infrastructure company.
"Neutral. Cash flow was in-line with expectations with slightly stronger gas production vs. liquids more than offsetting our slightly lower production estimate. Q3 results featured production of 18.7mboepd, ahead of TPHe 18.6mboepd but below Street 18.8mboepd, with liquids production below TPHe of 6.1mbpd and in-line with Street 6.0mbpd. Cash flow per share for the quarter totaled C$0.46, in-line with both TPHe and the Street. On capex, the company was ahead of our model at C$2.2MM vs TPHe/Street C$1.1MM, but shakes out to in-line FCF of C$65MM. On guidance updates, TPZ shifted annual royalty production guidance to 19.55mboepd at the midpoint (vs. previous 19.2) incl. the recent GORR acquisition (3MM TOU acres closing in Q4), shifting gas weighting down to 69% vs 70% and putting net debt at C$465mm at the midpoint exiting YE," analyst Jeoffrey Lambujon noted.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 27.63, Change: +0.61, Percent Change: +2.26
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