Gear Energy Ltd T.GXE

February Update

[Maxmoe]

Anyone read the swan song? I can't decide after reading it a second time, whether gear is about to be swallowed by MEG, ATH, or maybe even a swashbuckling brazen American. In any case the premium will be modest and it will disappear like one of the so many he eluded to in his nostalgic message. No fanfare. Not worth him hanging around for the big closing party. Who knows though, maybe the new pipeline space will spark a competing bid. I'll be happy with a round $1 worth of meg or Ath stock.

[Oldgreyguy]

As always the future of Gear is totally dependant on what Don Gray wants.  Perhaps he wants to see what the new guy can do for a while but there will come a time when he gets tired of it and that will be the end of Gear.  Hopefully there will be some premium at that time but it's hard to say.

[Maxmoe]

Don doesn't own enough stock to block an opportunistic, aka, unfriendly bid by someone wanting undervalued assets just as their fortunes start to improve with pipeline expansion. There will be no seat at the table for any of the gear gang. It may not happen. But they are very vulnerable right now. $1 would be a knock out bid. Someone could try a lower opening round jab. 

[Quintessential1]

I really didn't read the acquisition message between the lines but if you did that's good enough for me. I stuck to the chart and saw a 600k increase in FFO with the amount of debt added from the previous month's report being cut in half to 700k all being done on a modest increase of only 244 boe/d. If they can get that production level back to over 6k boe/d like they did in December

[Roscoe747]

The result of the strategic initiative was to remain independent. That strategy is, of course, based on present circumstance, not future metrics. According to Mr. Gillmore the team has innovated some designs that are applicable to the geology of Gear's wellsites. The question being what sort of production is possible in future and, by extension, what sort of supply/demand dynamic will the

[Roscoe747]

On another note, Gear lost almost a thousand bbl production from Dec to Jan. Probably due to cold weather and/ or third party outages. As this production comes back on line, FFO will rise accordingly. Or, on the not-so-bright side, calamity has struck.

[Quintessential1]

Huh, maybe sarcasm can tbe expressed in text.  Good point! GLTA

[lovehockey]

[lovehockey]

While there is an opinion that TMX pipeline will likely mean Americans will have an additional desire to get into Canadian energy I do not believe Gear will be sold. All large shareholders want to be in it long teem and want to control over distribution of the free cash. Gear will not be sold, not in the next year I think.

[Roscoe747]

No, TMX will mean more Canadians getting in to Canadian energy. As will the Shell et al LNG start up with access to Asian markets. These are huge gamechangers for Canada.The realisation that climate change is just another cultural marxism ploy to aid the globalist agenda will sink in hard and deep as the average Canadian faces stark choices in housing, heating and eating.  The choice

[Maxmoe]

Politics aside, Good questions. Heavy experience is why I put meg and Ath near the top of possible buyers. It's just too small to bother for su,cnq,imo,or even cve.