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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 Roscoe747on Feb 02, 2023 7:36pm
129 Views
Post# 35263679

RE:RE:RE:RE:snipe coming end of day.

RE:RE:RE:RE:snipe coming end of day.

Yes, the dividend could be cut if sub$80 oil continues but the $80 threshold is an annual average that will be in doubt until demand improves. The WCS producers have a double torque in both WTI and a declining discount.


Heavy oil demand is a spring/summer event plus there is ever more heavy refining capacity in the Gulf. The wild card is, of course, the willingness of Biden to release more oil from the SPR. In 2023 he not only has a low remaining volume to contend with strategically but a Republican House may make it difficult to accomplish. I speculate no release if oil stays under ~ $120.

The problem for Gear, of course is not a dividend cut but the potential of a dividend cut creating uncertainty and volatility. Oh well, Hard Cheese as the Brits used to say.

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