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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 uwebb429on Feb 23, 2023 2:14am
160 Views
Post# 35299986

RE:Buyback dividend plus 18.9m capex !!

RE:Buyback dividend plus 18.9m capex !!At the end of Q3 GXE had a surplus of $6.959 M. At the end of Q4, the surplus was gone and in its place was a debt of $2.220 M. The dividend payout accounted for $7.795 M of that difference. In other words, the entire dividend was financed by using cash on hand along with some debt. 

GXE reported that WTI averaged $82.65 last quarter but today WTI is sitting at only $74.00. The WCS / WTI differential is better but the drop in WTI means they still have the same problem.

People in this forum have been saying for months that you cannot keep paying out an almost 12% dividend if the cash flow you are generating cannot cover this. Nothing has changed. 
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