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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 scienceguy36on Mar 25, 2024 4:59pm
236 Views
Post# 35951602

RE:no idea

RE:no ideaIt's a risk that GXE  is taking to increase share holder value and increase the SP. They obviously think the stock is currently undervalued. However, for them to implement buybacks and pay an industry leading dividend too boot, they will be anticipating oil staying above $80.00. A stock buyback can be a good thing if a company is able to still have cash to pay the dividend and increase production. However, by initiating a buyback to raise its share price while ignoring its future growth potential, shareholders may lose out in the long run. It all comes down to where the price of oil is going to settle, if it does.

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