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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 Jul 22, 2023 4:01pm
183 Views
Post# 35552989

RE:RE:RE:Divvy in danger

RE:RE:RE:Divvy in dangerNo, I'm well aware of GXE's looming reserves conundrum. The issue today is that time is ruuning out on a creative solution and the FCF narrative to support a long term dividend on maintenance capital has, as yet, failed to materialise.

To me, the SP failing to hold at a loonie is directly caused by the threat of dividend suspension. I do not believe the SP will drop to $.60 rather the SP has already discounted the dividenf and the market considers a dollar fair value. Returning cash to shareholders has proven premature and, failing the fulfillment of the FCF narrative in the immediate future, GXE needs to ensure reserves replacement for 6kbbl/d long term.

Using CF to drill DUC deliniation wells or advancing waterfloods makes more sense at this present time than returning cash to shareholders and will do more to advance the share price than squandering it in pursuit of a dividend policy constantly in the shadow of the guillotine.



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