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ssuaphoto Despite strong oil prices in the last year and a half, most oil companies are still carrying substantial amounts of debt. However, there are some exceptions like Gear Energy Ltd. (TSX: GXE:CA , OTCQX:GENGF ). After a record-breaking Q2’22 , the Canadian company managed to achieve a net cash position and implemented a monthly dividend payment and a share buyback procedure. Although the spread between Western Canada Select (WCS) and West Texas Intermediate (WTI) has widened in the past few months, a normalization is expected to follow soon. Meanwhile, the depreciation of the Canadian dollar against the USD is also beneficial for the company. Currently, the shares are trading at above 9% gross dividend yield, and I estimate that the company is trading around 4x projected earnings, which looks like an attractive opportunity. Company overview Gear Energy is an energy company, engaged in exploration and production of primarily oil and some gas, with assets located in Canada. Average daily production has fluctuated around 6kBOE, with the number for 2022 expected to be around 5% below that. Heavy oil, which is generally traded at a discount, amount to roughly half of the production while the rest is light and […]
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