CALGARY, AB, April 29, 2024 /CNW/ - Topaz Energy Corp. (TSX:TPZ) ("Topaz" or the "Company") is pleased to provide first quarter 2024 financial results and confirm the Company's 2024e guidance estimates.  Select financial information is outlined below and should be read in conjunction with Topaz's interim condensed consolidated financial statements ("Consolidated Financial Statements") and related management's discussion and analysis ("MD&A") as at and for the three months ended March 31, 2024, which are available on SEDAR+ at www.sedarplus.ca and on Topaz's website at www.topazenergy.ca. First Quarter 2024 Highlights Topaz's undeveloped lands continue to attract a strong, consistent level of development activity.  12% of the total wells drilled across the WCSB(9) were spud on Topaz royalty acreage during the first quarter of both 2024 and 2023.  Since the beginning of 2021, the total number of gross wells drilled across Topaz's royalty acreage represents 13% of the wells drilled across the WCSB(9).  Over that same time, Topaz's heavy oil royalty production has increased significantly from 50 bbl/d to 2,877 bbl/d, the majority of which is attributed to growth from the Clearwater play. Based on operator drilling plans, 9 to 11 rigs will remain active across Topaz's royalty acreage through spring break-up(3), a record level as spring conditions typically restrict most development activity.  Royalty acreage activity is expected to resume with 25 to 29 planned drilling rigs following break-up(3). Topaz generated total revenue and other income of $78.2 million, 54% of which was derived from oil and liquids royalties, 23% from natural gas royalties, and 23% from Topaz's infrastructure portfolio. Cash flow of $67.9 million or $0.47 per diluted share,(2) was generated from 19,192 boe/d(4) (30% oil and liquids) average royalty production and 99% infrastructure asset capacity utilization. FCF(1) of $66.3 million or $0.46 per diluted share(2) was allocated to dividends and debt reduction.  Topaz paid a $0.32 per share first quarter dividend ($1.28 per share annualized(12)) which represents a 6.4% trailing annualized yield to the Q1 2024 average share price(10).  Topaz reduced net debt(1) $20.5 million or 6% during the quarter. Topaz confirms its previously announced guidance estimates for 2024e of 18,800 to 19,600 boe/d(3)(4) royalty production and $69.0 to $71.0 million(3) of processing revenue and other income. For the balance of 2024e, Topaz's dividend is sustainable down to very low commodity prices ($0.01 per mcf natural gas and US$50.00 per bbl crude oil(3)(13)). First Quarter 2024 Update Financial Overview Topaz generated $78.2 million total revenue and other income, 77% of which from royalty assets that generated a 99% operating margin(1) and 23% from infrastructure assets that generated an 89% operating margin(1).  Cash flow of $67.9 million or $0.47 per diluted share(2) was lower than the prior quarter, driven by 3% lower commodity pricing including wider crude oil differentials, and lower royalty production attributed to extreme January weather conditions and Topaz's last scheduled royalty rate reversion.  The decrease was offset by a $0.6 million higher hedging gain, 12% stronger WCS differential pricing, and 6% lower interest expense.  Topaz paid $46.4 million in dividends (68% payout ratio(1)), and generated $19.9 million of Excess FCF(1) which was allocated to debt repayment. Topaz exited Q1 2024 with $322.3 million of net debt(1), $20.5 million or 6% lower than the end of 2023.  As at April 29, 2024, Topaz has $650.0 million of available credit capacity(6) which provides financial flexibility for strategic growth opportunities. Royalty Activity First quarter average royalty production of 19,192 boe/d(4) (30% oil and liquids) achieved the midpoint of Topaz's 2024e guidance range.  The estimated gross operator production across Topaz's royalty acreage in Q1 2024 represented approximately 8% of total WCSB production(8). During the quarter, operators spud 145 gross wells (5.0 net)(7) and reactivated 6 gross wells across Topaz's royalty acreage, compared to 147 gross wells spud (5.0 net) and 10 gross wells reactivated during the prior quarter.  At the end of the first quarter, 95 of the 145 gross wells drilled in Q1 2024 had not yet been brought on production, compared to 87 out of 147 at the end of Q4 2023.  During Q1 2024, Topaz's total realized royalty production price was $34.55 per boe, 3% lower than the prior quarter, driven by lower crude oil and natural gas liquids market pricing.  The majority of Topaz's royalty agreements do not permit standard royalty deductions which enhances Topaz's commodity exposure and profitability.  For Q1 2024, Topaz's realized natural gas price represents 100% of the AECO 5A benchmark price and Topaz's realized heavy crude oil price represents 97% of the WCS heavy oil benchmark price.  Topaz estimates that operators invested $0.5 billion to $0.6 billion of development capital across the Company's royalty acreage in Q1 2024.  Drilling activity (145 gross wells spud(7)) was diversified across Topaz's portfolio as follows: 53 Clearwater, 35 NEBC Montney, 25 Deep Basin, 15 Peace River, 6 Central Alberta and 11 SE Saskatchewan/Manitoba.  Clearwater drilling activity increased 26% from the prior quarter. Infrastructure Activity Topaz generated $17.9 million in processing revenue and other income which was 4% higher than the prior year.  During Q1 2024, Topaz incurred $1.9 million in operating expenses resulting in an 89% operating margin(1).  The infrastructure assets generated 99% utilization and Topaz incurred $1.0 million in maintenance-related capital expenditures (before capitalized G&A).  Construction of the previously announced Clearwater Natural Gas Gathering Infrastructure continues to be advanced by the operator who has spent $15.3 million toward the project to date, and is expected to be completed by late 2024.  Following commissioning, Topaz will fund the final capital costs and generate incremental processing revenue.  The Clearwater Natural Gas Gathering Infrastructure is designed to conserve natural gas across Topaz's existing West Marten Hills royalty acreage and is expected to increase Topaz's existing royalty production revenue up to $0.5 million in 2025, meaningfully reduce CO2 emissions in the area, and generate approximately $3.7 million in infrastructure processing revenue for Topaz in 2025(3)(15). Dividend  Topaz's Board has declared the second quarter 2024 dividend at $0.32 per share which is expected to be paid on June 28, 2024, to shareholders of record on June 14, 2024.  The quarterly cash dividend is designated as an "eligible dividend" for Canadian income tax purposes.  The annualized dividend of $1.28 per share(12) provides a 5.6% yield to Topaz's current share price(11).  Topaz's 2024 estimated dividend is sustainable down to extremely low commodity prices ($0.01 per mcf natural gas and US$50.00 per bbl crude oil(3)(13)) due to the Company's high-margin, stable infrastructure income and hedging strategy.  Based on Topaz's 2024 midpoint royalty production estimate, 18% of natural gas is hedged at a weighted average fixed price of C$3.17 per mcf and approximately 40% of oil and total liquids is protected to a weighted average floor price of C$102.54 per bbl using collar structures to maintain upside price participation(13). Guidance Outlook 2024e Guidance Estimates Confirmed Topaz confirms the Company's previously announced 2024e guidance estimates, including average annual royalty production of 18,800 – 19,600 boe/d(3)(4) and processing revenue and other income between $69.0 and $71.0 million(3).  Topaz's royalty production guidance anticipates operator-funded capital development between $2.2 billion and $2.8 billion and incorporates the impact of Topaz's last contractually scheduled royalty rate reversion from 4% to 3%, effective January 1, 2024, on approximately 300 MMcf/d of gross natural gas production (approximately 500 boe/d to Topaz)(14ii). For 2024e, the royalty production guidance range purposefully remains flexible and allows for operators to adjust capital spending in response to near-term supply/demand and resulting commodity price factors in the WCSB.  Topaz's asset portfolio is diversified amongst oil and liquids-rich, natural gas-focused plays and is concentrated on the most commodity price-resilient activity areas.  Based on current commodity pricing(5), Topaz expects to exit 2024e with net debt(1) between $240.0 and $250.0 million, before consideration of incremental acquisitions or the costs of the Clearwater Natural Gas Gathering Infrastructure. 2024e Guidance Estimates(3)(14) $mm except boe/d Annual average royalty production (boe/d)(4) 18,800 – 19,600 Royalty production natural gas weighting (%)(4) ~70% Infrastructure processing revenue and other income $69.0 - $71.0mm Capital expenditures (excluding acquisitions) $4.0 – $5.0mm Dividend ($1.28 per share)(12) ~$185.4mm Dividend payout ratio(1)(5) ~64% Year end net debt(1)(5) $240.0 – $250.0mm Year end net debt to EBITDA(1)(5) ~0.8x Dividend Sustainability and Capital Allocation  Topaz's 2024e dividend payout ratio(1) of 64%(3)(14) remains at the lower end of the Company's targeted long-term payout of 60-90% to maintain financial flexibility for acquisition growth opportunities. Topaz's strategy is to continue to provide further dividend increases alongside sustainable organic and acquisition growth. Topaz's year-end 2024e net debt to EBITDA(1) is estimated at 0.8 times(3)(5) before consideration of acquisition activity, or 0.9 times(3)(5) following the commissioning and estimated costs attributed to the Clearwater Natural Gas Gathering Infrastructure(15).  The Company has a $700 million covenant-based unsecured credit facility, expandable to $1.0 billion, which provides financial flexibility and growth optionality(6). Additional information Additional information about Topaz, including the Consolidated Financial Statements and MD&A as at and for the three months ended March 31, 2024 are available on SEDAR+ at www.sedarplus.ca under the Company's profile, and on Topaz's website at www.topazenergy.ca. Q1 2024 CONFERENCE CALL Topaz will host a conference call tomorrow, Tuesday, April 30, 2024 starting at 9:00 a.m. MST (11:00 a.m. EST). To join the conference call without operator assistance, participants can register and enter their phone number at  https://emportal.ink/4akbl5E to receive an instant automated call back. Alternatively, participants can join by calling a live operator at 416-764-8659 or 1-888-664-6392 (North American toll free).  The conference call ID is 12063827. 2024 ANNUAL MEETING Topaz will host its annual shareholder meeting on Thursday, May 2, 2024 at 9:00 a.m. MST (11:00 a.m. EST) at the Calgary Petroleum Club (now to be held in the McMurray Room) located at 310 5th Avenue SW Calgary, Alberta.  If you were a shareholder of record of Topaz common shares at the close of business on March 18, 2024, you have received notice of, and are entitled to participate in, and vote at this meeting. We encourage you to vote your common shares and participate in the meeting. ABOUT THE COMPANY Topaz is a unique royalty and infrastructure energy company focused on generating free cash flow growth and paying reliable and sustainable dividends to its shareholders, through its strategic relationship with Canada's largest and most active natural gas producer, Tourmaline Oil Corp. ("Tourmaline"), an investment-grade senior Canadian E&P company, and leveraging industry relationships to execute complementary acquisitions from other high-quality energy companies, while maintaining its commitment to environmental, social and governance best practices. Topaz focuses on top-quartile energy resources and assets best positioned to attract capital in order to generate sustainable long-term growth and profitability. The Topaz royalty and energy infrastructure revenue streams are generated primarily from assets operated by natural gas producers with some of the lowest greenhouse gas emissions intensity in the Canadian senior upstream sector, including Tourmaline, which has received awards for environmental sustainability and conservation efforts. Certain of these producers have set long-term emissions reduction targets and continue to invest in technology to improve environmental sustainability. Topaz's common shares are listed and posted for trading on the TSX under the trading symbol "TPZ" and it is included in the S&P/TSX Composite Index. This is the headline index for Canada and is the principal benchmark measure for the Canadian equity markets, represented by the largest companies on the TSX. For further information, please visit the Company's website at  www.topazenergy.ca.  Topaz's SEDAR+ filings are available at www.sedarplus.ca. Selected Financial Information  For the periods ended($000s) except per share Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023    Royalty production revenue 60,338 64,268 67,629 57,667 60,924    Processing revenue 14,506 14,854 14,381 13,397 13,571    Other income(4) 3,372 3,656 3,762 3,616 3,690 Total 78,216 82,778 85,772 74,680 78,185 Cash expenses:    Operating (1,917) (979) (955) (3,022) (1,940)    Marketing (392) (384) (400) (315) (369)    General and administrative (1,970) (2,028) (1,490) (1,823) (1,569)    Realized gain (loss) on financial instruments 860 281 (761) 4,945 4,796    Interest expense (6,859) (7,279) (7,495) (6,987) (7,338) Cash flow 67,938 72,389 74,671 67,478 71,765 Per basic share(1)(2) $0.47 $0.50 $0.52 $0.47 $0.50 Per diluted share(1)(2) $0.47 $0.50 $0.52 $0.47 $0.50 Cash from operating activities 71,283 76,423 65,190 73,304 85,659      Per basic share(1)(2) $0.49 $0.53 $0.45 $0.51 $0.59      Per diluted share(1)(2) $0.49 $0.53 $0.45 $0.51 $0.59 Net income 6,196 19,635 10,750 9,366 7,893      Per basic share(2) $0.04 $0.14 $0.07 $0.06 $0.05      Per diluted share(2) $0.04 $0.13 $0.07 $0.06 $0.05 EBITDA(7) 74,654 79,552 81,996 74,316 78,947      Per basic share(1)(2) $0.52 $0.55 $0.57 $0.51 $0.55      Per diluted share(1)(2) $0.51 $0.55 $0.57 $0.51 $0.54 FCF(1) 66,266 71,676 72,390 66,379 71,290      Per basic share(1)(2) $0.46 $0.50 $0.50 $0.46 $0.49      Per diluted share(1)(2) $0.46 $0.49 $0.50 $0.46 $0.49      FCF margin(1) 85 % 87 % 84 % 89 % 91 % Dividends paid 46,361 44,847 44,805 43,355 43,309      Per share(1)(6) $0.32 $0.31 $0.31 $0.30 $0.30