Record production and …

Appearance date: May 06, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Topaz Energy Corp (TPZEF) achieved record production and quarterly drilling activity in the first quarter of 2025.

• The company increased its quarterly dividend by 3% to $ 0.34 per share and marked the 9th increase since the beginning.

• The Royalty Production rose 10% and 17% compared to the previous year compared to the previous quarter.

• The Topaz Energy Corp (TPZEF) recorded an operating range of 99% for the license fees in the first quarter.

• The company included a strong circular performance, which rose from 85% to 88% in the first quarter.

• Heavy oil volumes had a slight decline compared to the previous quarter.

• There is uncertainty about future activity levels due to fluctuating oil and gas prices.

• The company has not identified any new acquisition options that correspond to its criteria, which indicates potential challenges in growth through acquisitions.

• A significant part of the drilled fountain has not yet been completed, which can delay the production increase.

• The company is exposed to potential risks from market volatility and the dependence on some well -capitalized operators for most of its license production.

Q: How does the level of activity change in view of the current oil and gas market conditions in the course of the year? A: Marty Staples, President and CEO, mentioned that during the separation period they saw record activities with 14 to 16 rigs, which was significantly higher than in the previous year. You have not received any evidence from operators to change the drilling plans and you expect the holes to be continued. The company observes a gas working building that benefits its portfolio. They are also patient with acquisitions and are waiting for the right ways to surrender to the market.

Q: Are you rather inclined to acquire the infrastructure or oil and gas rights on the current market? A: Marty Staples, President and CEO, explained that Topaz Energy is indifferent to the acquisition of infrastructure or oil and gas rights. You look at both options and are open to hybrid offers. The decision depends on the correct return and quality so that Topaz processes a transaction.

Q: Can you explain the performance of light and heavy amounts of oil in your portfolio in a quarter? A: Marty Staples, President and CEO, and Cherie Stevenson, CFO, explained that there is a strong performance in light oil volumes, especially Tamarack and Southeast Saskatchewan. With severe oil volumes, a strong performance of Tamarack and headwater was provided, although there was certain income from the fourth quarter in the fourth quarter. Overall, core operators grew consistently.