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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 Gringottson Mar 18, 2023 2:54pm
535 Views
Post# 35346947

Production cuts and/or debt payment cuts...

Production cuts and/or debt payment cuts......The dividend issue aside, if oil stays in the mid-60 range or lower. Many OIL companies will have to start making some serious decisions regarding debt payment and/or production cuts (especially those that are still highly leveraged). Prodution cuts will likely impact price per barrel over the mid to long-term whereas debt payment delays will crush share price (companies like BTE "2.6 billion in debt" and TVE "1.6 billionin debt" could fall into this catagory). 
 

GXE is in a tough place regarding dividend if oil stays in the 60's but many others will be in a worse situation. Thankfully, GXE has no debt to speak of. 

More optomistically, the $15 decline in oil price the past week does not appear to be supported by fundamentals. The oil price will hopefully correct as the global financial worries resolve themselves. 

Without doubt, the oil sector is facing interesting times.

glta  
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