Tudor, Pickering, Holt on Tuesday reiterated its buy rating on the shares of Topaz Energy (TPZ.TO) with a C$29.00 price target after the oil and gas royalty and infrastructure company reported third-quarter results.
"Topaz printed Q3'25 financials included C$0.49 CFPS, in-line with TPHe and ahead of the Street C$0.46, with capex (ex. ~C$71.7MM acquisitions) of ~C$1.86MM comparing to TPHe/Street ~C$1.5MM/~C$1.6MM. On operations, production of 21.6mboepd was ~1mboepd weaker than our model but in-line with consensus (TPHe/Street 22.6/21.9), with the delta vs. our model on production heavily driven by a difference in gas volumes of (89.6mmcf/d vs. TPHe 95.3) with 6.7mboepd liquids comparing to TPHe/Street 6.8/6.5. That said, the Q3'25 AECO price environment materially limited any cash flow impact from the volumes delta, with infrastructure revenues more than offsetting at C$21.2MM vs. our $C19.6MM estimate. On shareholder returns, the company allocated C$52.3MM of its Q3'25 C$73MM FCF to its previously-increased dividend for a ~70% payout ratio," analyst Jeoffrey Lambujon wrote.
(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: 24.78, Change: -0.06, Percent Change: -0.24
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