CALGARY, AB, Dec. 6, 2021 /CNW/ - Topaz Energy Corp. (TSX:
TPZ) ("Topaz" or the "Company") is pleased to announce that it will
be added to the S&P/TSX Composite Index effective Monday, December 20, 2021, prior to the open of
trading on the Toronto Stock Exchange (the "TSX"). The
S&P/TSX Composite Index is the headline index for Canada and is the principal benchmark measure
for the Canadian equity markets, represented by the largest
companies on the TSX. Inclusion in the S&P/TSX Composite
Index can potentially broaden participation in a company's investor
base by enabling investment from index funds and similar investment
vehicles.
Marty Staples, Topaz's President,
Chief Executive Officer and Director, stated, "On behalf of
the Board of Directors and our employees, we are honored to be
included in the S&P/TSX Composite Index. This represents a
major achievement for Topaz and its shareholders, and we believe an
important milestone acknowledging Topaz's significant growth and
diversification of its asset portfolio over its first year as a
public entity. We are also of the view that the addition of Topaz
to the S&P/TSX Composite may increase the Company's exposure to
a broader range of potential investors and should provide better
trading liquidity for all shareholders."
Credit Facility Expansion & Extension
Topaz is also pleased to announce that it has entered into an
amended and restated credit agreement with a syndicate of Canadian
banks providing for a $500 million
combined operating and syndicated unsecured credit facility, due
December 6, 2025 ("Expanded and
Extended Credit Facility"). The Expanded and Extended Credit
Facility provides for a permitted increase to $700 million, subject to agent consent, and is
subject to covenants which are consistent with the covenants under
its prior credit facility. The Expanded and Extended Credit
Facility replaces the Company's prior syndicated secured credit
facility, which provided for aggregate borrowing capacity of
$400 million and was due February 19, 2024.
The Company's business model is supported by its conservative
capital structure which currently has moderate debt and significant
free cash flow which, together, provide financial
flexibility. The Expanded and Extended Credit Facility
provides enhanced financial flexibility at attractive pricing to
position the Company to strategically execute accretive growth
transactions.
ABOUT THE COMPANY
Topaz is a unique royalty and energy infrastructure company
focused on generating free cash flow growth and paying reliable and
sustainable dividends to its shareholders, through its strategic
relationship with Canada's largest
natural gas producer, Tourmaline Oil Corp., an investment grade
senior Canadian E&P company, and leveraging industry
relationships to execute complementary acquisitions from other
high-quality energy companies, while maintaining its commitment to
environmental, social and governance best practices. For further
information, please visit the Company's website
www.topazenergy.ca.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") that relate to the Company's current expectations and
views of future events. These forward-looking statements relate to
future events or the Company's future performance. Any statements
that express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance
(often, but not always, through the use of words or phrases such as
"will likely result", "are expected to", "expects", "will
continue", "is anticipated", "anticipates", "believes",
"estimated", "intends", "plans", "forecast", "projection",
"strategy", "objective" and "outlook") are not historical facts and
may be forward-looking statements and may involve estimates,
assumptions and uncertainties which could cause actual results or
outcomes to differ materially from those expressed in such
forward-looking statements. No assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this news release should not be unduly
relied upon. These statements speak only as of the date of this
news release. In particular and without limitation, this news
release contains forward-looking statements pertaining to the
following: the benefits to be derived from the Company's business
model, capital structure and Expanded and Extended Credit Facility,
including enhanced financial flexibility and the ability to
strategically execute accretive growth transactions; the effects
and benefits of the S&P/TSX Composite Index inclusion; and the
Company's business as described under the heading "About the
Company" above. Forward–looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond the Company's control, which could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward–looking information. Such
risks and uncertainties include, but are not limited to, the
failure to complete acquisitions on the terms or on the timing
announced or at all and the failure to realize some or all of the
anticipated benefits of acquisitions including estimated royalty
production, royalty production revenue and free cash flow per share
growth, and the factors discussed in the Company's recently filed
Management's Discussion and Analysis (See "Forward-Looking
Statements" therein), Annual Information Form (See "Risk Factors"
and "Forward-Looking Statements" therein) and other reports on file
with applicable securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com) or Topaz's
website (www.topazenergy.ca).
NON-GAAP FINANCIAL MEASURES
In addition to using financial measures prescribed by
International Financial Reporting Standards ("IFRS" or "GAAP"),
references are made in this news release to "free cash flow", which
is a measure that does not have any standardized meaning as
prescribed by IFRS. Management uses this term for its own
performance measures and to provide shareholders and potential
investors with a measurement of the Company's efficiency and its
ability to generate the cash necessary to fund dividends and a
portion of its future growth expenditures or to repay debt.
Accordingly, investors are cautioned that this non-GAAP financial
measure may not be comparable to similarly defined measures
presented by other entities and should not be considered in
isolation nor as an alternative to net income (loss) from
continuing operations or other financial information determined in
accordance with GAAP as an indication of the Company's
performance. References to "free cash flow" are to the amount
of cash estimated to be available for dividends to shareholders in
accordance with the Company's dividend policy and is defined as
cash flow less capital expenditures, where "cash flow" is defined
as cash from (used in) operations before changes in non-cash
working capital.
SOURCE Topaz Energy Corp.