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.