Newly listed Topaz Energy forecasts double digit earnings and output growth in 2021
The Calgary company says it expects production will rise to 11,550 barrels of oil equivalent per day
CALGARY — Three weeks after its initial public offering, Topaz Energy Corp. says it expects about 15% growth in royalty production and 38% higher adjusted earnings next year compared with this year.
The Calgary company, which listed its shares on the Toronto Stock Exchange in a $250-million IPO, says it expects production will rise to 11,550 barrels of oil equivalent per day from 10,100 boe/d this year and earnings before interest, taxation, depreciation and amortization will rise to $123 million compared with $89 million this year.
It also hopes to boost revenue from processing and other income by 46% to $30 million.
Topaz was created by Calgary-based oil and gas producer Tourmaline Oil Corp. a year ago as a vehicle to hold petroleum processing and handling assets that it felt were not being recognized in its share price.
Last week, Topaz agreed to pay $130 million to buy a gross overriding royalty on production from lands Tourmaline is buying through a deal to purchase two privately held oil and gas companies for about $526 million in cash and shares.
During the three months ended Sept. 30, Topaz completed $153 million of deals to buy infrastructure assets and royalties from Tourmaline and other parties.
Topaz says it had a net loss of $2.9 million on revenue of $26 million in the three months ended Sept. 30, up from a loss of $1.1 million on revenue of $20 million in the second quarter.
In early trading in Toronto, its shares rose by as much as 1.7% or 25 cents to $14.60, well ahead of the $13 IPO price.