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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

Comment by w8asecon Jan 18, 2023 7:59pm
180 Views
Post# 35232030

RE:RE:RE:RE:RE:RE:This really is the pooch of the industry

RE:RE:RE:RE:RE:RE:This really is the pooch of the industry

If they drop the divy back to zero we'll have a chance at climbing over $1.50... This is a penny stock, it doesn't need to be paying a divy.

NCIB is far better for shareholders than a high dividend.

 

When a company pays a huge dividend that money is gone from the company forever, (like having an added monthly debt) (EPS decreases by the divy amount) but when a company buys back and cancels shares the EPS increase, and that increase is present moving forward in every financial statement. 

 

Share price increase from a higher EPS usually, always beats the Divy.

 

Warren Buffet once mentioned that he preferred a company not pay a Divy.... Having the money stay with the company is better.

 




Roscoe747 wrote: GXE failed to execute on guidance in 2022. The fact that it was due to macro factors affecting WTI prices and, especially the WCS differential due to SPR releases makes no difference to the financial statements.

At this time, any appreciation in GXE's fortunes are predicated on increasing global demand and an end to SPR releases. In 2024 the TXM will provide for export to the Pacific rim of 800 k/bbl/d which will positively affect both pricing and the WCS discount but that is a year away.

The concern to me right now is how much capex per flowing barrel GXE is spending on increased production and the depletion rate of that production. The fact that the production increase of ~ 600 b/ day disappears in June/23 is not encouraging.

It may be time to examine the business plan with a view to aligning mediocre assets with renewing the RLI for a better long term outcome. That likely involves removing the dividend, acquaisitions of other acretive business arraingements and suffering the resulting fallout to the share price.

The alternative is pumping down the RLI and calling it a day.


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