TRMLF - Topaz Energy: The Best Of Both Royalty And Midstream Worlds

2024-05-31 06:48:21 ET

Summary

• Topaz Energy is a Canadian company with royalty and midstream interests.
• The company's dividend policy is currently set at a rate that allows for reinvestment of cash flow and repayment of debt.
• Royalties are down because natural gas prices have weakened.
• The midstream interests make this idea less volatile than a pure royalty company.
• Clearwater royalties may eventually provide a means to above-average growth.

Topaz Energy (TPZ:CA)(TPZEF) is a combination of the midstream and the royalty business in the oil and gas industry. This is a Canadian company that does business in Canada and reports using Canadian dollars. The article continues the coverage from a previous article by including the latest earnings and an idea of future growth areas. While the company has begun to diversify away from Tourmaline (TOU:CA)(TRMLF), there are still plenty of connections with the company. Therefore, the royalty business has an emphasis on natural gas production while also holding acreage that promises more liquids production in the future.

Dividend Policy

The dividend is currently set at C$0.32 per share quarterly .

The dividend has been growing at a rapid pace. That pace is likely to slow now that the company has established a solid base of business. This was a relatively recent new issue, and so much of the presentation shows rapid growth from a small amount of business....

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