redhots Posted June 8, 2016 Share Posted June 8, 2016 Borrowing base review dealt with. GEAR ENERGY LTD. ANNOUNCES STRATEGIC COMBINATION WITH STRIKER EXPLORATION CORP., A $15 MILLION BOUGHT DEAL FINANCING, PRO FORMA $50 MILLION SENIOR SECURED REVOLVING CREDIT FACILITIES AND INCREASED 2016 BUDGET GUIDANCE gear_striker.pdf Link to comment Share on other sites More sharing options...
tombgrt Posted June 8, 2016 Share Posted June 8, 2016 Big news. Will have to read the details later but thanks. Link to comment Share on other sites More sharing options...
redhots Posted June 15, 2016 Share Posted June 15, 2016 Here is the Preliminary Short Form Prospectus More diversified. (Increase in Light & Medium crude and Gas) Retiring old debt. New debt will be ~ $49 million The borrowing base will still have a semi-annual review 17.5 - 21.25 million shares offered at $.70 Outstanding shares will go from 85 million to 187 million. gear-pro.pdf Link to comment Share on other sites More sharing options...
redhots Posted June 29, 2016 Share Posted June 29, 2016 Gear Energy Ltd. Announces Closing of $20.125 Million Financing Every insider (minus 1 director) purchased some shares with this last financing... Also, new presentation and monthly report. 2016-06.pdfGear+Insider+Trading+Report+June+29%2c2016.pdfGear+Energy+June+2016.pdf Link to comment Share on other sites More sharing options...
tombgrt Posted August 8, 2016 Share Posted August 8, 2016 August presentation http://www.gearenergy.com/LiteratureRetrieve.aspx?ID=233897 Did he quit the Monthly reports? Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted September 30, 2016 Share Posted September 30, 2016 No, he's still doing the monthly reports. Also, a new SA article if anyone is interested: http://seekingalpha.com/article/4009390-gear-energy-top-oil-pick-2017 Link to comment Share on other sites More sharing options...
tombgrt Posted December 30, 2016 Share Posted December 30, 2016 Quiet here but what a year it has been! Link to comment Share on other sites More sharing options...
investor-man Posted December 30, 2016 Share Posted December 30, 2016 Quiet here but what a year it has been! Yes, and still one of the best ideas out there IMHO! Link to comment Share on other sites More sharing options...
tombgrt Posted December 30, 2016 Share Posted December 30, 2016 Agreed. Still holding all In had at the Loes earlier this year. Link to comment Share on other sites More sharing options...
tombgrt Posted November 3, 2017 Share Posted November 3, 2017 This thing still flying under the radar. Likely because the sector is generally hated, stocks are lagging commodity price increases and because the market cap is way to small for decent sized funds. Not to mention tax loss selling, which I assume can affect small caps easily. - Outsider type chairman and CEO - Both own plenty of stock and have bought more in recent months. - D/CF below 1 - low cost operator - expected to grow CF/share again strongly, always focussing on IRRs Valued at ~3.5xEV/DACF. That valuation made some sense two years ago with Gear much more levered, less diversified, and the general oil storm only starting. Bought some more recently at $0.72-0.75. Anyone with a bearish view willing to share? Other than thesis based on oil <$45 WTI. Link to comment Share on other sites More sharing options...
investor-man Posted November 8, 2017 Share Posted November 8, 2017 I've bought more since I wrote my last post almost a year ago, and it's one of my largest and favorite holdings despite it doing nothing since I bought it. This thing still flying under the radar. Likely because the sector is generally hated, stocks are lagging commodity price increases and because the market cap is way to small for decent sized funds. Not to mention tax loss selling, which I assume can affect small caps easily. - Outsider type chairman and CEO - Both own plenty of stock and have bought more in recent months. - D/CF below 1 - low cost operator - expected to grow CF/share again strongly, always focussing on IRRs Valued at ~3.5xEV/DACF. That valuation made some sense two years ago with Gear much more levered, less diversified, and the general oil storm only starting. Bought some more recently at $0.72-0.75. Anyone with a bearish view willing to share? Other than thesis based on oil <$45 WTI. Link to comment Share on other sites More sharing options...
tombgrt Posted November 9, 2017 Share Posted November 9, 2017 Yes, it is the burden of buying illiquid small caps. Earnings out last night. Perfectly in line with expectations. Small acquisition. Will be interesting to hear what they plan for next year. Paradise hill doing great. Let us hope they can build on it a little more. See last monthly as well: http://www.gearenergy.com/monthly-reports Link to comment Share on other sites More sharing options...
tombgrt Posted January 4, 2018 Share Posted January 4, 2018 For what it's worth, Don Gray bought 350.000 shares at $0.82 two weeks back. Chump change for him but counts as a vote of confidence nonetheless! Also liked how Ingram Gillmore bought 8.500 shares just to get to an even 1.200.000 shares. :D Link to comment Share on other sites More sharing options...
investor-man Posted January 5, 2018 Share Posted January 5, 2018 yeah saw that too. kind of a drag that canadian oil prices aren't keeping pace with WTI, but it'll catch up. Link to comment Share on other sites More sharing options...
mcliu Posted January 5, 2018 Share Posted January 5, 2018 I don't understand O&G very well, so I was wondering if someone can clarify why the company is increasing capital expenditure next year with record low prices? Why not wait and see if prices recover before drilling? Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted January 5, 2018 Share Posted January 5, 2018 I don't understand O&G very well, so I was wondering if someone can clarify why the company is increasing capital expenditure next year with record low prices? Why not wait and see if prices recover before drilling? Canadian Heavy prices have more than doubled off the Jan 16 lows. Not sure what you mean by record low prices. Link to comment Share on other sites More sharing options...
mcliu Posted January 5, 2018 Share Posted January 5, 2018 I don't understand O&G very well, so I was wondering if someone can clarify why the company is increasing capital expenditure next year with record low prices? Why not wait and see if prices recover before drilling? Canadian Heavy prices have more than doubled off the Jan 16 lows. Not sure what you mean by record low prices. I just mean that, relative to prices over the past 10 years, the price for WCS could be significantly higher.. So why don't companies just stop drilling and wait for prices to recover before doing anything? I mean, the oil's in the ground and it's not going anywhere.. I'm a rookie at analyzing O&G, so just bear with me. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted January 5, 2018 Share Posted January 5, 2018 I don't understand O&G very well, so I was wondering if someone can clarify why the company is increasing capital expenditure next year with record low prices? Why not wait and see if prices recover before drilling? Canadian Heavy prices have more than doubled off the Jan 16 lows. Not sure what you mean by record low prices. I just mean that, relative to prices over the past 10 years, the price for WCS could be significantly higher.. So why don't companies just stop drilling and wait for prices to recover before doing anything? I mean, the oil's in the ground and it's not going anywhere.. I'm a rookie at analyzing O&G, so just bear with me. Just in general for oil companies, if they can get returns above their cost of capital then it's worth while drilling is the view. There are land expiries in some cases which may justify drilling and not deferring. For GXE in particular they cite returns of 40-100% at US$50 WTI so they see it worthwhile to drill. They can also drill and grow within cash flow which should increase value for shareholders. It seems like in general, there is more talk about maximizing cash flow as opposed to growth in the industry and we'll see if that is the case over the next 12 months. Link to comment Share on other sites More sharing options...
tombgrt Posted January 16, 2018 Share Posted January 16, 2018 Don Gray upped his position again with another 400k shares at CAD$0.99 . January presentation online as well. Link to comment Share on other sites More sharing options...
tombgrt Posted April 5, 2018 Share Posted April 5, 2018 Well, I guess we are nearly trading at 2x ev/dacf unhedged. Early last year we traded briefly at $1.2, 60% above today's price with production 20% lower and WCS around 20% lower. Given production growth, quality of management, downside risk,... this should trade at at least $2 and would still be cheap. $5+ / share again would not been farfetched in a few years if oil prices recover further and production doubles. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted April 5, 2018 Share Posted April 5, 2018 GMP FirstEnergy has GXE (and ATU for that matter) trading around 1.5x EV/EBITDA on 2019E based on their WCS forecast of $61.57 next year which seemed high two weeks ago but with WCS hitting almost $60 yesterday doesn't seem outlandish anymore. Link to comment Share on other sites More sharing options...
tombgrt Posted April 23, 2018 Share Posted April 23, 2018 https://www.reuters.com/article/us-canada-crude-trucks-insight/facing-shipping-constraints-canada-moving-oil-one-truckload-at-a-time-idUSKBN1HU0F4 Trucks loaded with crude are an increasingly common sight at the border. Production has risen in the world’s fifth largest producer but full pipelines and a rail car shortage have made it difficult for drillers to ship oil out of Canada. Some oil producers are feeling the pressure from customers. Alberta-based Gear Energy Ltd pumps about 7,500 barrels of oil equivalent per day, and recently had an Asian customer walk away from an agreement to buy crude after failing to secure a way to ship oil to the West Coast. “We’ve never had more inbound calls looking for heavy oil,” said Gear Chief Executive Officer Ingram Gillmore. “And we have never had more challenges actually getting it to them. It is very frustrating.” This is not going away, especially with Venezuela imploding faster and faster. Link to comment Share on other sites More sharing options...
investor-man Posted April 24, 2018 Share Posted April 24, 2018 it's about time this moved! Hopefully it keeps going. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted April 24, 2018 Share Posted April 24, 2018 Stock is definitely lagging oil prices but that makes sense for small caps not in any ETF. ATU.V, PPR.TO, IPO.TO and many others in that camp (but I mention those because I own them!). WCS closed at C$66.20 today (being helped by the weakening CAD). The last time WCS was this high was 2014. http://www.psac.ca/business/GMPFirstEnergy/ GMP covers both GXE and ATU and has 2019E CFPS at $0.45 and $0.21, respectively for 2019E at a WCS of $61.57 which is about have the current share price with net cash (i.e. no debt) at that price. Link to comment Share on other sites More sharing options...
tombgrt Posted May 17, 2018 Share Posted May 17, 2018 http://gearenergy.com/wp-content/uploads/2018/05/Gear-Insider-Trading-Report-May-16-2018.pdf Don Gray added another 355,940 shares to his position. Link to comment Share on other sites More sharing options...
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