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TOPAZ ENERGY TOPAZ ENERGY CORP . ANNOUNCES SECOND QUARTER 2021 FINANCIAL RESULTS WHICH INCLUDES 52 % PER SHARE FCF GROWTH , DECLARES $ 0.21 PER SHARE QUARTERLY DIVIDEND AND PROVIDES INCREASED 2021 GUIDANCE ESTIMATES July 29 , 2021 Calgary , Alberta - Topaz Energy Corp. ( TSX : TPZ ) ( “ Topaz ” or the " Company " ) is pleased to announce financial results for the second quarter of 2021 and increased 2021 guidance estimates incorporating acquisition activity . Capital allocation strategy • Topaz's hybrid royalty and infrastructure business provides transparent , embedded & self - funded growth and balanced commodity exposure . Through execution of the Company's acquisition growth strategy , Topaz has doubled its second quarter total revenue and other income ( 1 ) from the prior year with a corresponding increase of over 2.0 times on both EBITDA ( 2 ) and FCF ( 2 ) . On a per share basis , Topaz's FCF ( 2 ) increased 52 % from $ 0.21 per share in Q2 2020 to $ 0.32 per share in Q2 2021 and Topaz estimates it will generate 2021 FCF ( 2 ) ( 5 ) of $ 1.41 per share which represents 45 % growth from 2020 ( $ 0.97 per share ) . Since its first quarter of full operations ( Q1 2020 ) Topaz has paid a stable quarterly dividend of $ 0.20 per share which was recently increased by 5 % to $ 0.21 per share . Topaz's increased 2021 guidance provides for approximately $ 173.0 million of FCF ( 2 ) ( 5 ) , and Topaz's indicative 2021 dividend of $ 102.0 million is supported through stable infrastructure FCF ( 2 ) ( 53 % ( 5 ) ) with the balance supported at commodity prices of C $ 1.50 / mcf AECO and US $ 45 / bbl WTI . Topaz estimates it will generate $ 71.0 million in excess FCF ( 2 ) ( 5 ) in 2021. Given the continued opportunity - rich M & A environment , Topaz's primary capital allocation focus is to pursue accretive growth acquisitions and Topaz will continue to review its dividend with a targeted payout range of 60 - 90 % . Acquisition strategy • • Since January 1 , 2020 Topaz has invested approximately $ 878.0 million in cumulative royalty and infrastructure acquisitions which Topaz estimates will generate $ 95.0 million of FCF ( 2 ) ( 5 ) in 2022 , representing an 11 % FCF yield ( 2 ) ( 5 ) . Topaz's royalty acquisitions are underpinned by committed operator capital and combined with its formative royalty assets , Topaz estimates its 2020 to 2023 compound annual royalty production growth rate to be 17 % ( 5 ) which provides embedded future growth with no further capital investment required by Topaz . Following the August 1 , 2021 close of Topaz's recently announced NEBC Montney royalty acquisition comprised of 296,000 gross acres of developed and undeveloped land and approximately 50,000 boe / d of liquids - rich natural gas production , Topaz will own royalty interests on substantially all of Tourmaline's acreage . Topaz is well poised for growth as Tourmaline has shifted its focus to optimization of organic growth opportunities given its significant consolidation initiatives have been completed . Topaz will focus on accretive acquisitions with third parties operating high quality , economically resilient growth assets as well as continue to evaluate other opportunities in order to further diversify its investment portfolio . Topaz's acquisition growth strategy is to utilize its excess FCF ( 2 ) as well as available borrowing capacity through its $ 300.0 million syndicated credit facility while maintaining a net debt ( cash ) to EBITDA ( 2 ) ( 5 ) ratio approximating 1.0 times . Highlights of Topaz's financial results as at and for the three and six months ended June 30 , 2021 as compared to the three and six months ended June 30 , 2020 ( “ Q2 2021 , " " YTD 2021 , ” “ Q2 2020 ” and “ YTD 2020 , " respectively ) , as well as significant transactions completed subsequent to June 30 , 2021 ( " Subsequent Period ” ) are presented below : Financial performance • Total revenue and other income ( 1 ) of $ 41.0 million for Q2 2021 was double the $ 20.0 million generated in Q2 2020 . The significant increase was driven by 24 % royalty production volume growth , 99 % higher processing revenue and a 56 % increase in natural gas ( AECO ) pricing .