Bullboard - Stock Discussion Forum Gear Energy Ltd T.GXE

Alternate Symbol(s): GENGF

Energy Oil & Gas E&P

Gear Energy Ltd. is a Canadian exploration and production company with heavy and light oil production in Central Alberta, West Central Saskatchewan and Southeast Saskatchewan. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its properties include Celtic/Paradise Hill, Saskatchewan; Wildmere Area, Alberta... see more

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TSX:GXE - Post Discussion

Gear Energy Ltd > If GXE to merge it would be CJ

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Post by lovehockey on Jan 24, 2024 12:20pm

If GXE to merge it would be CJ

I still do not believe merging is needed (buyback is a true solution for shareholder's value) however Surge was never really a matching option as they had a debt of over $200MM with 20k+ barrels per day where Gear has $14MM of debt with 6k+ barrels per day. Surge has way more debt per flowing barrel so negotiations would have been difficult for a merger. Cardinal Energy in its turn had debt of $45MM which makes it very similar for debt per flowing barrel.

I am not a specialist in mergers by any means but I think that debt matching per flowing barrel makes it much easier to consider a merger. All of a sudden the merge makes Cardinal almost 30,000 boepd company. Just a thought.

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