Insider Buying

Insider Buying Report: Topaz Energy Corp (TPZ:CN)

Topaz Energy Corp
(TPZ:CN)
12 months:
+34.07%
Activity:
Bullish
Pattern:
Purchases from CEO and CFO
News:
Q1 results
Topaz Energy Corp
(TPZ:CN)
12 months:
+34.07%
Activity:
Bullish
Pattern:
Purchases from CEO and CFO
News:
Q1 results

Top-level corporate insiders such as CEOs and CFOs tend to have the most up-to-date information on their businesses. If they’re buying company stock, it’s often a sign that the outlook for the stock is attractive.

In this report, we are going to highlight some interesting buying from top-level insiders at Topaz Energy Corp (TPZ:CN). Topaz Energy is a Canadian royalty and energy infrastructure company that was established in November 2019 through its key counterparty, Tourmaline Oil Corp – from whom it acquired its formative royalty and energy infrastructure assets. It is listed on the Toronto Stock Exchange and currently has a market capitalization of CAD $3.4 billion.

Topaz Energy Corp: Insider Buying

Our data shows that between May 31 and June 10, both CEO Marty Staples and CFO Cheree Stephenson bought TPZ stock. The former picked up 4,200 shares at a price of CAD $23.82 per share, while the latter acquired 10,750 shares at a price of CAD $23.57 per share. Combined, the two insiders spent around CAD 350,000 (approx. USD $280,000) on stock.

The graph represents Topaz Energy Corp' price history, with significant buy and sell events highlighted.

Industry Experts

This insider activity is worth highlighting for a couple of reasons. Firstly, both insiders here are likely to have a good understanding of their company’s prospects. Mr. Staples has over 20 years of experience in the oil and gas industry and previously played an integral role in the growth and development of Tourmaline Oil Corp. Meanwhile, Ms. Stephenson also has over 20 years of experience in the oil and gas industry and was previously Vice President, Finance, and CFO of another public Canadian energy company, Petrus Resources.

Secondly, Mr. Staples and Ms. Stephenson are not the only top-level insiders to purchase stock here recently. Earlier in May, Mike Rose, Chairman, President, and CEO of Tourmaline picked up 10,000 shares at a price of CAD $23.31 per share, spending CAD $233,000 on stock. This tells us that those within the company agree that the stock has a good chance of moving higher.

Guidance Raised

Topaz Energy recently produced a strong set of Q1 results and increased its guidance.

For the period, Topaz generated record cash flow and free cash flow of CAD $74.2 million and $73.8 million respectively. These figures represented growth of 115% and 117% year over year. Meanwhile, net income per diluted share came in at CAD $0.08 versus $0.05 a year earlier.

As for its guidance, Topaz increased its annual average royalty production forecast as well as its EBITDA forecast to account for its recent acquisition of Keystone Royalty Acquisition and higher commodity pricing. It now expects annual average royalty production of 16,500 to 16,700 boe/d (previous guidance: 16,100 to 16,300 boe/d) along with EBITDA to $316 million to $320 million (previous guidance: $269 million to $271 million).

In light of this performance, and the increase in guidance, we see the insider buying here as a bullish indicator.

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