- 2025 Growth Metrics: 17% royalty production increase, 20% infrastructure revenue growth, and 10% higher year-end reserves (55.7M boe).
- Q4 Production Growth: Royalty production averaged 23,400 boe/d (+15% YoY), full-year at 22,400 boe/d (+17% YoY).
- Capital Investment & Drilling: $2.8B invested, 694 gross wells drilled (10% YoY), and 22% more wells brought onstream in 2025.
- Reserve Replacement: 11.9M boe additions replaced 8.2M boe production at 1.5x ratio, with Clearwater achieving 3x replacement via waterflood.
- Financial Performance: Q4 net income up 64% to $32.7M, $0.34 dividend/share (65% payout ratio), and $80.6M cash flow (+6% YoY).
Operational Highlights
The operational performance was equally impressive, with an estimated $2.8 billion of operated capital invested on Topaz's acreage, resulting in a record 694 gross wells drilled. The company's year-end 2025 total proved plus probable reserves increased by 10% to 55.7 million boe, driven by growth in the Clearwater and Northeast BC Montney. As Marty Staples, President and CEO, noted, "Over the past 2 years, we have seen our Clearwater reserve life index double as a result of waterflood performance that continues to enhance heavy oil recovery."
Guidance and Outlook
Topaz has provided 2026 guidance estimates, expecting average royalty production to range from 23,500 to 23,900 boe per day and processing revenue to be between $92 million to $94 million. The company anticipates exiting 2026 with a net debt-to-EBITDA ratio of 1.2x and generating a 68% payout ratio. Analysts estimate revenue growth to be around 10.8% for the next year, indicating a positive outlook.
Valuation and Dividend Yield
With a current P/E Ratio of 83.5 and a Dividend Yield of 4.42%, Topaz's valuation appears to be factoring in a certain level of growth. The company's ROE of 4.44% and ROIC of 7.65% indicate a decent return on equity and invested capital. The dividend yield, combined with the expected payout ratio, suggests a sustainable dividend payment. The EV/EBITDA ratio of 16.51 is relatively in line with industry peers, indicating that the company's valuation is fairly priced.