No Need to be alarmed - RBC 10:01 AM EDT, 04/01/2022 (MT Newswires) -- RBC Capital Markets said Thursday that Pembina Pipeline Corp. (PPL.TO) investors should not be alarmed by Ruby Pipeline's filing for Chapter 11 bankruptcy protection.
Pembina owns a 50% convertible preferred interest in Ruby and RBC said the development has no material impact on its positive thesis for Pembina's shares.
Ruby has been a troubled asset for some time and it was not producing any cash flow for Pembina, RBC said. If anything, RBC was previously concerned that Pembina would inject equity into Ruby to try to protect it from bankruptcy protection.
RBC gave Pembina an outperform rating with a price target of $49.00