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Bullboard - Stock Discussion Forum 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... see more

TSX:GXE - Post Discussion

Gear Energy Ltd > Nothing new from Q3 report but some positives
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Post by lovehockey on Nov 09, 2023 4:48pm

Nothing new from Q3 report but some positives

Here are the positives:

-Q4 will average 5,900 boed, which means that likely closer to the end of year we will hit 6,000 boed. 
-Current dividend is guaranteed with WTI averaging at least $74. Anything above can go towards buybacks.
-Planned capex for 2024 is $57mln - which is $4.75mln monthly. That is acceptable even though I was hoping for $4.2mln


All in all the company is doing good. Now I just hope that the buyback is brought and special dividend is introduced.
Comment by brewster123 on Nov 09, 2023 4:52pm
Surge mentioned in their recent investors webinar that they may be interested in acquiring Gear.
Comment by NotThatBright22 on Nov 09, 2023 5:12pm
" Conversely, any future decrease in commodity prices may result in incremental debt and/or future dividend reductions."
Comment by lovehockey on Nov 09, 2023 5:29pm
In all honesty, I would cut the dividend right now and introduce the buyback. I guarantee you, that way we would get to $1.50 within 3 months of buybacks. With $1.3 mln you can buy currently 1.6 million shares monthly. That number will decline obviously but due to the lack of sellers the stock will rise significantly. 
Comment by w8asec on Nov 10, 2023 7:03am
agree... buy-backs most always gives back a larger shareholder return than dividends, and it's shocking that management didn't know that.
Comment by rustyblades on Nov 09, 2023 5:32pm
The way I interpreted the results, you can forget about a special dividend.
Comment by lovehockey on Nov 09, 2023 5:50pm
THat is not what they say however. Anything above $74 can go towards dividend increase as well. So special dividend would be a possibility specially when the oil hits $100, which it is just a matter of time. 
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