Gear Energy Ltd T.GXE

TAX pool of 668 millions...

[JTDOUBLE]

Market Capitalization 261 millions..

Like I said before GXE is ripe for take over not just because the company has no debt and a Cash cow

But take a look of the tax Pool here almost 3 times what the company worth this alone gives a lot of weight especially most oil gas are in black and the need for find tax credits to lessen tax owe..

Tax Pool Summary December 31, 2021 ($ MM)

 Canadian Oil and Gas Property Expense 130

Canadian Development Expense 196

Canadian Exploration Expense 28

Undepreciated Capital Cost 60 Non-Capital Losses 253

Estimated Realizable Tax Pools, Federal and Provincial 668

[Roscoe747]

There is no reason for a forced sale so any potential buyer will need to make an offer that convinces shareholders to sell. Given the penchant for a return of capital in the industry, a share deal is likely to fail and a cash deal will require a sufficient premium to entice selling. A buyer big enough to utilise the tax polls can offer such a premium though.

[Roscoe747]

There is no reason for a forced sale so any potential buyer will need to make an offer that convinces shareholders to sell. Given the penchant for a return of capital in the industry, a share deal is likely to fail and a cash deal will require a sufficient premium to entice selling. A buyer big enough to utilise the tax polls can offer such a premium though.

[JTDOUBLE]

Roscoe , what are the biggest oil in gas companies near GXE assets ?? Thanks !!

[Roscoe747]

I don't know because I've not been interested enough in the issue to look. Assuming the scattered nature of Gear's assets and its heavy oil weighting, I am in some doubt as to its attraction as an accretive acquisition. The growth profile (and MD&A mention of acquisitions with FCF) presented by Gear suggests modest growth in production by workovers, waterflood, drilling and tuck

[jleer42]

As CEO Ingram seems to be a straight shooter, I'm not aware of him doing anything which could be dishonest. We have had one dividend at this point, let's see what is announced when the 2nd dividend is declared. The 70% isn't some sort of slush fund, it is to be allocated to share buybacks, capital investments, cash funded acquisitions and special dividends. I have no issue with Gear

[Roscoe747]

I certainly do not mean to imply any wrongdoing or dishonesty to management, I'm simply stating that management needs to align itself with shareholder interests in regard to returning cash to shareholders. This position is counter intuitive to management's primary function of growing the company. Oil and gas extraction is perceived to be a sunset industry by some entities. While it may be