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TOPAZ ENERGY TOPAZ ENERGY CORP . ANNOUNCES FIRST QUARTER 2021 FINANCIAL RESULTS WHICH INCLUDES 66 % REVENUE AND EBITDA GROWTH , DECLARES $ 0.20 PER SHARE QUARTERLY DIVIDEND AND PROVIDES INCREASED 2021 GUIDANCE ESTIMATES May 6 , 2021 Calgary , Alberta - Topaz Energy Corp. ( TSX : TPZ ) ( " Topaz ” or the " Company " ) is pleased to announce financial results for the three months ended March 31 , 2021 and increased 2021 guidance estimates to incorporate recent acquisition activity . Through a combination of organic growth , accretive acquisitions and stable EBITDA ( 2 ) generated from Topaz's infrastructure assets , Topaz's total revenue and other income ( 1 ) grew 66 % from the prior year . Topaz's low cost , high margin business enabled Topaz's first quarter EBITDA ( 2 ) to correspondingly grow 66 % from the prior year . During the first quarter Topaz paid $ 0.20 per share in dividends representing a payout ratio ( 2 ) of 65 % , which has compressed from a 77 % payout ratio ( 2 ) in the first quarter of 2020 . During the first quarter of 2021 Topaz continued to execute its growth strategy , investing $ 144.0 million to acquire 765,000 gross acres of high margin gross overriding royalty interests in the Deep Basin and Clearwater areas of Alberta . The acquisitions provide over 1,200 boe / d of annual average royalty production in 2021 and are supported by capital development for further growth . Recent drilling results on the acquired royalty acreage have outperformed peers as well as Topaz's expectations . Topaz also invested $ 12.0 million in infrastructure assets during the first quarter , acquiring a non - operated working interest in pipeline connected water management and conservation facilities secured by a 15 year fixed take or pay contract through which Topaz will earn $ 27.8 million in fixed processing revenue over the 15 year term . Since January 1 , 2020 Topaz has invested approximately $ 386.0 million in cumulative royalty and infrastructure acquisitions which Topaz estimates will generate between $ 41.0 and $ 43.0 million of annualized EBITDA ( 2 ) in 2021 and between $ 46.0 and $ 48.0 million in 2022 , based on current commodity prices ( 5 ) . Topaz's royalty acquisitions are underpinned by cumulative capital development spending estimated at $ 500.0 million over the next two years , which supports Topaz's future royalty production growth expectations . Topaz's $ 300.0 million credit facility is undrawn and its March 31 , 2021 adjusted working capital ( after accounting for the royalty acquisition announced April 12 , 2021 ) is estimated at $ 63.0 million . Near term , Topaz's growth strategy is to utilize its cash as well as leverage of up to 1x its 2021 estimated EBITDA ( 2 ) ( 5 ) range of $ 136.0 to 138.0 million to invest in additional acquisition growth opportunities . Highlights of Topaz's financial results as at and for the three months ended March 31 , 2021 ( " Q1 2021 " ) and March 31 , 2020 ( " Q1 2020 " ) , significant transactions completed subsequent to March 31 , 2021 ( " Subsequent Period " ) and increased guidance estimates for 2021 are presented below : Financial performance • Generated 66 % higher total revenue and other income ( 1 ) in Q1 2021 ( $ 37.8 million ) compared to Q1 2020 ( $ 22.8 million ) which was driven by 13 % average royalty production volume growth , 75 % higher processing revenue and a 55 % increase in natural gas ( AECO ) pricing . Generated 66 % higher EBITDA ( 2 ) in Q1 2021 ( $ 34.6 million ) compared to Q1 2020 ( $ 20.8 million ) . Topaz realized an EBITDA margin ( 2 ) of 92 % and 91 % in Q1 2021 and Q1 2020 , respectively . Royalty activity update • • Topaz's average royalty production ( 4 ) of 11,743 boe / d in Q1 2021 grew 13 % from 10,378 boe / d in Q1 2020. Royalty production revenue of $ 24.2 million in Q1 2021 grew 67 % from $ 14.5 million in Q1 2020 which is attributed to gross overriding royalty acquisitions , volume growth attributed to Topaz's existing royalty assets and improved commodity pricing ( 55 % increase in natural gas ( AECO ) and 26 % increase in crude oil ( NYMEX WTI ) ) . During Q1 2021 , 79 gross wells were spud on Topaz's royalty acreage ( 68 gross wells on acreage operated by Tourmaline Oil Corp. ( " Tourmaline " ) and 11 gross wells on Topaz's greater Clearwater acreage ) and 70 gross wells were brought on production which represents a 93 % increase in capital activity relative to Q1 2020 , when 41 gross wells were spud on Topaz's royalty acreage ( all operated by Tourmaline ) .