CALGARY, AB — February 24, 2026 — Leads & Copy — Topaz Energy Corp. (TSX: TPZ) has released its fourth quarter and annual financial results for 2025, highlighting increased royalty production and infrastructure revenue alongside lower cash expenses.
The company’s financial information can be found in its consolidated financial statements and management’s discussion and analysis on SEDAR+ and Topaz’s website.
Annual highlights for 2025 include:
- 17% higher royalty production, 20% higher infrastructure revenue, and 28% lower cash expenses.
- 7% higher cash flow per share and 15% higher earnings per share.
- A record 91% FCF Margin and 18% higher Excess FCF per share.
- Operator-funded capital spending of $2.8 billion across Topaz’s royalty acreage and a 10% increase in gross wells drilled, leading to a record 17% share of drilling activity in the Western Canadian Sedimentary Basin (WCSB).
- A 10% increase in reserves attributed to acquisitions and operator-funded activity.
- A 50% increase in Topaz’s Clearwater reserves and approximately 2.0 times higher Clearwater reserve life index (RLI).
- $125.4 million in acquisitions, including royalty and infrastructure assets in the Alberta Montney.
- A 4% higher dividend per share and approval of the 2026 first quarter dividend at $0.34 per share ($1.36 per share annualized).
Topaz’s 2026 guidance estimates include royalty production between 23,500 and 23,900 boe/d and processing revenue and other income between $92.0 and $94.0 million. The company anticipates exiting 2026 with net debt between $420.0 and $425.0 million, based on estimated commodity pricing.
The company’s royalty guidance range remains flexible to accommodate adjustments by operators responding to supply/demand and commodity price factors in the WCSB.
Total proved plus probable developed reserves of 65.7 mmboe increased 10% from 2024, driven by growth in Clearwater and NEBC Montney reserves. These core areas represent 56% of Topaz’s total reserves, with associated RLIs increasing over the past two years.
Since its inception, Topaz has acquired cumulative developed reserves of 53.7 mmboe, with 37.6 mmboe produced to date. The company holds 65.7 mmboe of developed reserves as of December 31, 2025.
Q4 2025 cash flow reached $80.6 million with a 92% free cash flow (FCF) Margin, providing $79.7 million of FCF. Cash flow and FCF each increased 6% and 11%, respectively, from Q4 2024, reaching $0.52 per diluted share.
Royalty production revenue totaled $62.5 million ($29.02 per boe), representing 72% of Topaz’s total revenue, while infrastructure assets’ processing revenue and other income contributed 28% ($24.2 million).
Topaz’s Q4 2025 net income of $32.7 million was 64% higher than Q4 2024, driven by increased royalty production, processing revenue, and a lower unrealized loss on financial instruments.
The company realized a $19.8 million hedging gain during 2025. Approximately 22% of natural gas is hedged at a weighted average fixed price of C$3.18 per mcf, and 12% of total liquids is hedged at a weighted average fixed price of US$67.68/bbl.
Topaz paid a Q4 2025 dividend of $0.34 per share ($52.4 million), representing a 65% payout ratio and a 5.1% trailing annualized yield to the fourth quarter average share price.
Excess FCF of $27.3 million during Q4 2025 was allocated to debt repayment and acquisition growth, with $10.2 million spent on acquisitions during the quarter.
The company exited 2025 with $517.5 million of net debt, representing 1.5x net debt to annualized Q4 2025 EBITDA. As of February 24, 2026, Topaz has approximately $0.5 billion of available credit capacity for strategic growth opportunities.
Q4 2025 royalty production averaged 23,399 boe/d, 15% higher than Q4 2024, with total oil and liquids royalty production reaching a record 6,889 bbl/d.
Drilling activity in the fourth quarter included 190 gross wells spud across various regions, with 248 gross wells brought on production, a 7% increase over Q4 2024.
Topaz expects to maintain the current 27-30 active drilling rigs on its royalty acreage through the first quarter of 2026, based on planned operator drilling activity.
During Q4 2025, Topaz generated $24.2 million in processing revenue and other income, a 10% increase over Q4 2024. Infrastructure assets generated 99% utilization, with $0.9 million in maintenance-related capital expenditures.
Topaz’s Board has declared the first quarter 2026 dividend at $0.34 per share, payable on March 31, 2026, to shareholders of record on March 13, 2026.
Since its inaugural dividend in Q1 2020, Topaz has paid $6.62 per share in dividends to its shareholders through December 31, 2025. The sustainability of Topaz’s 2026 dividend is attributed to high-margin infrastructure revenue, hedging strategies, and a diversified asset portfolio.
Topaz is a royalty and infrastructure energy company focused on generating free cash flow growth and paying reliable and sustainable dividends through its relationship with Tourmaline Oil Corp.
Topaz’s common shares are listed on the TSX under the symbol TPZ and are included in the S&P/TSX Composite Index.
Additional information about Topaz, including the Financial Statements and MD&A, is available on SEDAR+ and Topaz’s website.
Topaz will host a conference call to discuss these results tomorrow, Wednesday, February 25, 2026 at 7:00 a.m. EST.
Source: Topaz Energy Corp.
