RE:RE:RE:OPEC+ done , Nuttal pop soon... $60 oil sweetspot for GXE!
100% oilypants. I think AliNaimi summed it up well as did Nuttall when hee was talking about Parax (top pick) and how they could be a takeout target for Vermillion (or someone like them) at a significant premium because of their cash flow hence increasing their multiple. I think Gear is perfectly situated for this and the sharks will be circling. Their the only heavy oil play (and one of the only CAN E&P's) that is poised to exit 2021 debt free. A merger or takeout by a company with great production but higher debt - think CJ, BNE or even a smaller company like JOY would be great for both companies. On the flip side there is no downside for Gear even if that doesn't happen as they are throwing off so much cashflow at $60 oil. The longer oil stays up here and people believe it is not a spike and drop all of these jr's are going to re-rated closer to their NAV. At 50c -with good momentum, Nuttall chirping and Q1 cash numbers I can't find a better bet for a double out there with limited downside even if oil were to go back to $55. Not to mention pedigree of the management team and Don Gray - founder of Peyto as their largest shareholder and chairman of the board. These guys know how to build a company for success - it is obvious by how well positioned they are coming out of the worst year for oil companies in a few generations.