is ATH on the hook if KXL is cancelled?what do you guys make of this?
Athabasca Oil Corp. provided TC Energy with US$48 million in financial assurances in the third quarter of 2019 when it committed to ship 7,200 bpd on the existing Keystone pipeline system, chief financial officer Matt Taylor said in an email.
“In the event the Keystone XL pipeline is cancelled before March 31, 2021 TC Energy would keep this conditional payment. When the project is officially sanctioned TC Energy is required to return the financial assurances back to Athabasca,” Taylor said.
Athabasca disclosed the conditional payment in its first quarter financial results this spring and indicated it was “evaluating various options under the agreements in order to manage risk and capture value for the company.”
Oil producers on hook for millions in contingency payments to TC Energy if Keystone XL cancelled | Financial Post