Pipestone suspends guidance in wake of unplanned downtime extension at Keyera Wapiti gas plant
The total scope of the problem and root cause of the outage has yet to be determined. As such the original estimate provided by Keyera to repair the plant and return to operations is no longer valid. In addition at this time, Keyera is unable to provide a definitive indication for the expected go-forward outage duration.
Based on this new development, Pipestone Energy is formally suspending its 2020 production and cash flow guidance due to the timing uncertainty for a return to normal operations at the Keyera Plant. It should be noted, the Company's contingent business interruption insurance includes coverage over the Keyera Plant and has a 30-day waiting period. As such it is expected to cover any net financial losses incurred by Pipestone Energy with respect to the outage post September 16, 2020 if required. When the Company receives definitive information in regards to an expected timeline for the resumption of operations at the Keyera Plant, Pipestone Energy will provide a further update to the market.