Topaz Energy (TPZ) Corporate presentation summary

Business model and financial profile

• Royalty portfolio spans 9 million gross acres and produced 24.1 Mboe/d in 2026e guidance; infrastructure revenue is guided at $93 million, with 80% fixed.

• Royalty interests receive operator-funded development without capital costs; 2020–2025 average FCF margins were 92% for royalties and 80% for infrastructure.

• 2026e outlook includes 23,900–24,300 boe/d production, $92–94 million infrastructure revenue and other income, and a 62% dividend payout ratio.

• 2026e guidance midpoint implies ~1.0x net debt to EBITDA; year-end net debt is estimated at $425–430 million before acquisitions.

Growth opportunities

• Organic royalty growth outlook is 4–7% annually, including 8–10% annual growth in NEBC Montney and Clearwater; other royalty areas are projected at 0–4%.

• Tourmaline’s five-year plan supports NEBC Montney growth; Clearwater growth is underpinned by waterflood development and operator capital.

• Illustrative 2031 scenario combines 12% annual growth in NEBC Montney and Clearwater with $4 AECO and $80 WTI, adding $205 million annual operating income versus 2026e.

• Clearwater waterflood results indicate 2x higher production, 47% lower decline rate and 30% lower maintenance capital; 2025 reserve replacement was 3.0x.

Dividends and shareholder returns

• Dividend is $0.35 per share quarterly, or $1.40 annualized, with a 4.5% current yield; 10 increases since Q4 2020 represent 75% cumulative growth and 10% CAGR.

• More than $1.0 billion in dividends was paid from 2020 through Q3 2026; infrastructure revenue covered 43% of the 2026e dividend.

• Total shareholder return CAGR since January 2021 was 22%, versus 16% for the TSX Composite Index.