Topaz Energy (TPZ) Investor presentation summary

Financial performance and outlook

• Market capitalization at $4.6Bn and enterprise value at $5.1Bn as of February 2026, with a 4.5% dividend yield and 11% five-year dividend CAGR.

• 2026 guidance targets 23,700 Boe/d royalty production, $93mm fixed infrastructure revenue, and 6% royalty growth.

• Free cash flow margin consistently above 80%, with $1.4Bn FCF and $0.5Bn excess FCF generated over the past five years.

• 2026e payout ratio projected at 68%, with $210mm in dividends and $420–$425mm year-end net debt.

• Return on capital averaged 18% over five years, with disciplined leverage below 2.0x D:EBITDA.

Asset portfolio and growth drivers

• Royalty portfolio spans 9 million gross acres, with 70% gas-weighted production and significant exposure to Montney and Clearwater plays.

• Operator-funded growth drives 4–7% annual royalty growth, with additional 2–10% M&A-driven EBITDA growth targeted.

• Infrastructure assets generate $93mm/year in stable, mostly fixed revenue, supporting dividend coverage and growth.

• Developed reserves have been replaced at 1.9x since inception, with 3.6x reserves returned including booked future undeveloped reserves.

• Strategic partnerships with Tourmaline, Tamarack Valley, and Headwater underpin 90% of royalty revenue.

Operational efficiency and profitability

• Royalty interests yield a 96% FCF margin, significantly higher than E&P peers' 20% margin.

• Infrastructure assets deliver an 85% cash flow margin, outperforming the 25% peer average for midstream companies.

• 80% of infrastructure capacity is secured under long-term take-or-pay contracts, minimizing throughput risk.

• Operator-funded drilling and development ensure capital-free reserve replacement and production growth.

• Excess FCF is allocated to both dividends and disciplined M&A, supporting self-funded growth.