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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 Maxmoeon Mar 26, 2024 10:00am
139 Views
Post# 35952770

RE:no idea

RE:no ideaFor Me, It's a bad idea to buy an energy producer or any cyclical commodity producer, for the dividend. It's just too volatile of a business. And we've seen repeatedly over the last 10+ years that a dividend is useless as a tool to support the stock price or to be "paid while we wait". The stocks just keep going lower and the yields get goofy until there is a cut. My top performer, and Eric's, is ATH. No dividend. The dividend payers come under pressure when oil trades under 80 because a cut is expected. An 8% yield is NOT a good thing. It's a warning. Buying back stock can be adjusted day by day depending on cash flow, market prices, commodity markets, etc etc. But dividends are handcuffs. If yields are low, like <3%, there are unhappy shareholders whining about the low yield. There is just no winning with the divy. May as well just cut it to zero and crank up the NCIB. Peyto and freehold both have big divy yields and both have done nothing over the past year. Which is better than gear, but pitiful compared to ATH, meg and other no, or low, divy payers. Good luck. The fact the strategic review didn't result in a transaction doesn't mean it's not still on the front burner. It just means a "friendly" bid from an acquirer that offers everyone a nice cushy job didn't happen. The value of the barrels in the ground haven't changed. It's a bargain. Good Luck to the patient and remember the credo. "It's lonely at the bottom". 
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