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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 lovehockeyon Jun 30, 2023 12:54pm
67 Views
Post# 35522523

RE:Dividend day

RE:Dividend dayI posted these numbers before but while the dividend is costing about $2.3 mln a month, Capex was costing  $6 mln. Now for Gear $6 mln is a relatively large number and if Gear decided to cut it to $2 mln nothing drastic would have happened. So when you see these "dividend specialists" claiming that in case of a growing debt dividend to be cut - this is their understanding of the game where I see Capex can be easily decreased for 6 months and with the debt being miniscule Gear would be debt free again while still paying dividends. 

Now obviously the company has a strong management that can make a decision that will benefit the company long term and still maintain high Capex, sure, it can happen. But would it be catastrofic? I don't think so. April oil demand in the US was record high since 2007 while production started to fall. SPR is in a horrible shape and nobody really knows how much longer Biden administration can milk that cow. Things will be ok. 
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