Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

Gear Energy Ltd. is a Canadian exploration and production company with heavy and light oil production in Central Alberta, West Central Saskatchewan and Southeast Saskatchewan. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its properties include Celtic/Paradise Hill, Saskatchewan; Wildmere Area, Alberta; Wilson Creek, Alberta, and Tableland, Saskatchewan. The Celtic/Paradise Hill is located within Township 52, and Ranges 23 and 24 W3 and is approximately 40 kilometers northeast of Lloydminster, Alberta. The Wildmere field is located within Townships 47, 48 and 49, and Ranges 3, 4, 5 and 6W4, is approximately 200 kilometers southeast of Edmonton, Alberta. The property consists of approximately 24,325 gross (23,000 net) acres of lands. The Tableland property development is predominately focused on the Three Forks/Torquay formation, with minor production from the Bakken and Ratcliffe formations.


TSX:GXE - Post by User

Post by zack50on Aug 09, 2022 12:50pm
126 Views
Post# 34882030

Benefits of zero net debt...

Benefits of zero net debt...Gear's zero net debt achieved in April of 2022 now allows for several benefits... namely, its ability to better weather any temporary period of lower oil prices. If this drop in commodity price does occur, then Gear will no longer be subject to any significant credit risk.

Additionally, with zero net debt, Gear is now able to decide exactly how it wishes to run its business, as opposed to having its lenders dictating the establishment of hedges, capping capital investments and restricting the return of capital to shareholders. We've just seen the latter, with the new monthly dividend program announced July 27, 2022 of $0.01 per share per month with initial distribution of $0.02 per share to be paid on August 31, 2022 for shareholders of record on August 15, 2022.


Finally, as indicated in the Q2/22 release, Gear has a net surplus of ~$10MM. They now have some dry powder to possibility seek out a strategic acquisition which hopefully would create value for us shareholders. The downside to this, of course is that Gear will most likely find itself back in a net debt position, so prudent consideration is key.

Strong financials, an exceptional balance sheet, solid yielding dividend and a deep Inventory of drilling locations and waterfloods should bode well for Gear's shareprice... as long as the price of oil stays in its present range of $90.

<< Previous
Bullboard Posts
Next >>