Tudor, Pickering, Holt on Wednesday maintained its buy rating on the shares of Topaz Energy (TPZ.TO) with a C$29.00 price target after the oil and gas royalty and infrastructure company reported fourth-quarter results.

"Positive and anticipating relative outperformance today, supported by a solid Q4'25 to finish off the year, with FY'26 guidance in-line. On Q4'25 financials, C$0.52 CFPS (and FCF) headlined results, better vs. consensus (middling TPHe/Street C$0.54/C$0.50). Compared to our model, better-than-expected production, infra revenue (C$24.3MM vs. TPHe C$22.1MM), light/medium oil realizations, NGL realizations, opex, and hedge gains were offset by misses on heavy oil realizations, gas realizations, marketing, and G&A. That said, TPZ's beat on capex (C$0.9MM ex-acquisitions vs. TPHe/Street C$1.5MM/C$1.7MM) solidified stronger-than-expected FCF vs. consensus (C$79.7MM vs. TPHe/Street C$81.9MM/C$76.3MM), and represented a 92% FCF margin in Q4'25 and resulted in a 91% FCF margin for FY'25. On volumes, Q4'25 royalty production of 23.4mboepd was ahead of TPHe/Street 23.1/23.1, with liquids of 6.9mbopd also better vs. TPHe/Street 6.7/6.8. On 2026 guidance, the outlook calls for FY'26 royalty production of 23.5-23.9mboepd (+6% y/y) vs. TPHe/Street 23.3/23.7, and infrastructure revenue of C$92-94MM (similar y/y pre-acquisitions; TPHe $104.1MM), with the framework underpinned by 27-30 active rigs currently on acreage," analyst Jeoffrey Lambujon wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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