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 recoveries through the application of water flood technology. The key properties in the Central Alberta Light asset include Wilson Creek, Ferrier, Killam, Drayton Valley, and Chigwell.

TSX:GXE - Post by User

Gear Energy Ltd > Caterwauling

<< Previous

Bullboard Posts

Next >>

Comment by Chefboy69on Dec 12, 2022 7:37pm

108 Views

Post# 35167375

RE:RE:RE:RE:Caterwauling

please answer a very simple question

how long can Gear operrate with WCS below $62???
at what point is divi in trouble...

Keep in mind we are only in the second month of this...

So how long??

uwebb429 wrote:
Kadiddelhopper wrote: The dividend is very minor-league , hardly woth the mention, nor all the angst that is being stirred-up.

Anyone that thinks an 11% annual dividend is "very minor-league" should learn more about dividend paying stocks.

Not sure why anyone wants to argue with what Gear Energy has stated in their December 2022 presentation.

If WTI is at or above US$80/bbl, the dividend is forecast to be funded with free FFO. Prices below that, would necessitate a reduction in capital and/or the dividend

GXE's free cash flow calculation to cover the dividend is based on WTI at $80 and WCS at $62 or above. WCS is nowhere near that level at the moment. That's a problem that anyone holding this stock or thinking about buying this stock should be aware of.