Gear Energy (GENGF) reported strong free cash flow and reduced its leverage during Q2. Also, considering the low leverage, management announced the intention of initiating a share buyback program. And despite the guidance was confirmed, the market didn't react as the stock price stayed close to its multi-year lows.
Besides the usual uncertainties around the limited egress capacity in Canada, the market may have difficulties to estimate Gear's free cash flow potential. The company can't hold its production flat with its reduced H1 capital program.
Thus, after having a close look at the