Daily Brief Energy/Materials: Texas Pacific Land , Agnico Eagle Mines , Canacol Energy and more

• TPL captured more water business in the second quarter than the Company had previously achieved leading to revenue and earnings exceeding our expectations
• The water business has been a revenue source smoothing out the volatility associated with the movement in oil and gas prices and production levels
• While TPL is not expecting to repeat second quarter levels in the third quarter, the water business should continue to perform better than previously expected

Agnico Eagle Mines (AEM) reported record quarterly gold production of 873koz in Q223 at a US$840/oz total cash cost and a US$1,150/oz all-in sustaining cost (AISC) that drove strong financial results of adjusted EPS of US$0.65/share and operating cash flow of US$1.46/share. Record-breaking production reflects 100% ownership for the full quarter of Canadian Malartic, which will add c 80–90koz in attributable production per quarter. Additionally, AEM recorded the safest half-year performance in its history. Guidance for FY23 has been reiterated at 3.24–3.44Moz at a cash cost of US$840–890/oz and AISC of US$1,140–1,190/oz. The quarterly dividend remains at US$0.40/share.

Canacol Energy issued an operational update on 3 August that included gas sales and drilling plans. July 2023 gas sales were 197mmcf/day, in line with sales a year earlier. However, perhaps more importantly, the group is mobilising two additional rigs to increase production capacity to meet potential higher demand due to the emerging El Niño effect.