Bullboard - Stock Discussion Forum Gear Energy Ltd T.GXE

Alternate Symbol(s): GENGF

Energy Oil & Gas E&P

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil... see more

Add To Watchlist

TSX:GXE - Post Discussion

Gear Energy Ltd > 630.9 miilions tax pool.. This is ..

View:

Post by JTDOUBLE on Apr 20, 2023 8:57am

630.9 miilions tax pool.. This is ..

why i been saying that acquisitions of gear not just the assets alone but the accumulated tax pool.

Gear indicates 93.8 millions free cash flow in 2022, on this rate , GXE will not pay taxes for 7 years..

630 millions of tax pool ..Hedge funds and profitable oil companies normally uses this as arbitrage acquisitions play especially now gears MC is only 286 m..just about 45% of the tax pool ..basically the tax pool alone 630 X 25 tax =157 m savings..

Basically the company after tax pool , the hedge fund could just buy without premium at 132 m ..

So given the valuations it is very attractive for the buyer at thie oil price level..

341

Comment

Comment by lashing on Apr 20, 2023 11:27am

No one is going to buy this for the tax pool

Comment

Comment by Roscoe747 on Apr 21, 2023 1:07pm

Tax is paid on net (taxable) income, not cash flow.

Comment

Comment by JTDOUBLE on Apr 21, 2023 2:46pm

The very conservative estimates not including the non cash items or amortizations of assets in calculating the span of years this company will not pay taxes..

Comment