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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 screamer99on Apr 03, 2024 6:58pm
251 Views
Post# 35969164

RE:RE:RE:Seems GXE finally on the map

RE:RE:RE:Seems GXE finally on the map Eric's concern is when he liquidates. Stock price has nothing to do with it. He can't invest millions in GXE and liquidate his position without impacting the stock price.

Yes, he mentioned it on Market Call. What I heard in addition to them having a good balance sheet is that their free cash flow is 22% - which is enormous. He's modelling 8% - 10% free cash flow valuation for larger companies so even if you apply 12% to GXE, this would be nearly a double.

They have production forecast to increase in Q4 which is a bit unfortunate because the OPEC supply cuts will be reduced, but at $80 oil, the dividend seems to be safe. Interest rates will likely decline this year which will make dividends more attractive.

For an 8% yield on today's price with DRIP? I'll take it.
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