OTCPK:ICPVF - Post by User
Post by
downwithdotcom1on Sep 03, 2020 12:01pm
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Post# 31504142
analyst commentary to the pipeline leak..differing outcomes?
analyst commentary to the pipeline leak..differing outcomes?see below. situation appears to be somewhat FLUID.. (get it haha). regards. dwdc
"The shutdown of Inter Pipeline's Polaris diluent pipeline dominated investor conversations yesterday, as a handful of unknowns still remain," the investment bank said in a research note. " ... One key unknown is the cause of the incident and whether the event can be classified as force majeure (FM) or gross negligence. If FM is declared, we expect minimal financial impacts to IPL CN, while gross negligence could result in an EBITDA impact of ~C$4M per week from lost volumes, clean-up costs and some liability for IPL CN covering lost or damaged condensate. The company's outperformance relative to midstream peers since the leak was reported on Saturday (+2.4% vs AMNA) implies investors generally believe FM will be declared and the incident will be temporary. At this point we have no reason to think otherwise and expect a minimal financial impact as we await further details related to the dynamic situation."