TOPAZ ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS AND DIVIDEND INCREASE

• Event: Q1 2026 Financial Results and Dividend Increase announced on May 5, 2026.
• Production: Average royalty production of 24,609 boe/d, exceeding the high end of previously announced guidance (23,900 boe/d). Natural gas production hit a record 105.7 mmcf/d.
• Financials: Q1 Cash flow $80.1 million ($0.52/share); Free Cash Flow (FCF) $78.7 million ($0.51/share). Revenue $94.6 million.
• Dividend: Q2 2026 dividend increased to $0.35 per share (annualized $1.40), marking the tenth consecutive quarterly increase.
• Debt: Net debt reduced by 5% from Dec 31, 2025, ending at $492.1 million. Updated 2026 exit net debt guidance lowered to $407.0 million (previously $420.0-$425.0 million).
• Operations: 138 gross wells drilled in Q1. Infrastructure utilization at 98% with 92% operating margin.

• Positive Execution: The company delivered production above the high end of its own guidance, validating operational efficiency and operator performance (primarily Tourmaline).
• Balance Sheet Improvement: The revision of exit net debt guidance from a range ending at $425 million to a specific target of $407 million represents an accelerated deleveraging path. This reduces financial risk and supports the sustainability of the dividend.
• Dividend Safety: The 10th consecutive increase, while modest ($0.01/share), reinforces management's commitment to returning capital. However, the yield at current prices (~4.4%) is slightly compressed compared to previous lows due to share price appreciation.
• Routine Nature: While positive, this news confirms the trajectory established in the February 2026 guidance release rather than introducing a fundamentally new growth vector. The market had likely priced in strong Q1 performance given the Q3/Q4 2025 momentum and commodity environment.
• Risk Mitigation: Lower debt targets improve credit metrics, which is critical for a royalty company reliant on stable cash flows to service obligations.

• Business Model: Topaz Energy Corp. is an energy royalty and infrastructure company. It does not operate wells directly but holds overriding royalty interests (ORRIs) on production from operators like Tourmaline Oil Corp.
• Flagship Assets: Core assets are in the NEBC Montney, Clearwater, and Deep Basin regions of Western Canada.
• Infrastructure: Owns processing infrastructure with high utilization rates (98%), providing stable fee-based revenue streams ($23.4M in Q1) that hedge against commodity price volatility.
• Development: Focuses on acquiring royalties from major operators to capture growth without the capital intensity of direct drilling.