Topaz Energy (TPZ) Q3 2026 earnings summary

Executive summary

• Q3 royalty production rose 9% YoY to 23,507 boe/d; cash flow was $87.0 million and free cash flow was $85.4 million.

• Q3 net income was $32.0 million, while adjusted net income excluding unrealized derivative losses was $50.3 million.

Financial highlights

• Total revenue and other income was $104.3 million: 78% from royalties and 22% from infrastructure and other income.

• Cash flow was $0.56/share, up 14% YoY; FCF was $0.55/share, up 16% YoY, with $31.1 million of excess FCF.

• Q3 EBITDA was $102.2 million; net income was $32.0 million, or $0.21 per diluted share.

• Cash expenses excluding realized hedging gains/losses and current income tax were $9.0 million versus $10.3 million YoY.

Outlook and guidance

• 2026 guidance was reconfirmed: average royalty production of 23,900–24,300 boe/d, processing revenue and other income of $92–94 million, and year-end net debt of $425–430 million.

• Guidance assumes 95% infrastructure utilization, no incremental acquisitions, and Q4 pricing of C$2.00/mcf AECO and US$98.50/bbl WTI.

• Planned operator activity implies 24–29 drilling rigs on royalty acreage through Q4 2026.