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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

Post by lovehockeyon Sep 07, 2023 4:28pm
186 Views
Post# 35624954

Gear should adopt Tourmaline approach...

Gear should adopt Tourmaline approach...Which is paying a small regular dividend and a larger special dividend. It actually works much better than a large regular dividend as was proven to work really well for Tourmaline because it gives a flexibility. I hope they don't increase the regular dividend once they make enough money. The management miscalculated the upcoming pressure on oil from the US and clearly didn't expect 300mln barrels of SPR to be dumped during the year they were paying 1 cent a month. They should have been paying 0.5 cents a month to begin with and 1.5 cents quarterly. That would still accumulate 3 cents a month but some of the quarters that could reduce the special dividend to 0.5 cents a quarter. That way the SP would have been under less stress. Also if buybacks were brought back the price of the stock would have jumped significantly as the volume is non existent. I think we should just be in the waiting mode as Geat SP will definitely improve in the next 6 months unless the oil price to collapse again for another unknown reason. 
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