TRMLF - Topaz Energy: A Royalty Opportunity

2024-04-02 06:38:15 ET

Summary

• Topaz Energy is a combination midstream interest holder and royalty company.
• The nonoperating model means that the company does not control its future growth.
• Topaz Energy's royalty interests in the Clearwater Play provide a profitable source of future growth.
• The nonoperating model also means most of the cash flow becomes free cash flow.
• With the Tourmaline backing, this royalty and midstream company has sharply reduced risks from the typical new company.

Topaz Energy (TPZEF)(TPZ:CA) is a combination midstream interest holder and royalty company. This combines two different businesses which may confuse the market somewhat when evaluating the stock. However, the free cash flow generated by a business like this should confuse no one because it will generate a lot of free cash flow that the market claims to love....

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