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Acquisition-hungry Topaz Energy tests investors’ appetite with $253-million IPO

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Topaz has raised $353.8 million over two rounds of equity financing including Cambridge Global Asset Management, which holds 11.8 per cent, and Calgary-based ARC Financial, which controls 5 per cent, according to the Journal. Tourmaline retains 63.5 per cent of the company.

Topaz bought 12.5 per cent of the Glacier Gas Plant from Advantage Oil & Gas Ltd. in July for $100 million, a quarter of the Banshee Gas Plant from Tourmaline this month for $52.5 million, and a 4 per cent royalty interest in undeveloped lands near Clearwater, Alta.

“Topaz, as portrayed, has ample liquidity within its treasury to execute further acquisitions and/or structure further agreements,” noted Stifel FirstEnergy analysts Robert Fitzmartyn and Kalvin Baim, said in a note to clients on Sept. 8.

The analysts expect Topaz’s 2021 revenue stream to reach $117 million, derived from 67 per cent from royalty income and 33 per cent from midstream assets.

“Our forecast would portray Topaz as leveraged to a sizeable EBITDA (earnings before interest, taxation, depreciation and amortization) growth trajectory well above that of most of its peer group, a premise that could be boosted further given a comparably superior balance sheet,” the analysts said.

Financial Post

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