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Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

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

Post by BBAccount001on Jan 18, 2023 1:56pm
224 Views
Post# 35231133

CAPEX or Dividend

CAPEX or DividendI think we can all agree that the current CAPEX plan AND the dividend are not sustainable. Assuming CAPEX comes down in Q1 as drilling slows, the cash position should swing back to a positive number but some hard decisions will need to be made by mgmt wrt Q2 and beyond. If WTI/WCS stays where it is either the CAPEX or dividend will need to be cut.

I believe there are some tailwinds in our favor and will hold on for another year. I see:
1) China reopening - increase demand
2) Limited new supply coming online - flat supply
3) Transmountain expansion - tightening of WCS spread
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