The light oil improvements will lead to superior light oil profitability eventually. Already, profitability has materially improved.
Gear Energy's heavy oil profitability is among the best in the industry. Paradise Hill has an ROR of 105% at WTI $50.
Gear Energy trades at a cash flow discount to Baytex Energy using enterprise value despite better profitability and less debt.
The Gear Energy Stryker Exploration could prove to be extremely accretive in the future.
Higher profitability and lower debt gives Gear Energy proportionately more cash flow to invest in growth. Gear Energy will probably grow at a faster rate than Baytex Energy.