GENGF - Gear Energy Diversifies Into Lighter Oil Production So Cash Flow Becomes Less Volatile
Gear Energy (OTCPK:GENGF) is a heavy oil producer in Canada that has recently branched into lighter oil production. The latest acquisition of Steppe Resources sent debt spiraling above C$90 million right when the Alberta government (and company management) decided to limit production due to low pricing. The result was an unprecedented fast drop of cash flow.
(Canadian Dollars Unless Otherwise Stated)
Source: Gear Energy 2018 Fourth Quarter Earnings Press Release
Cash flow in the fourth quarter fell to less than C$2 million due to some extreme volatility in Canadian oil pricing as