Yes there is no excuse of a fire in a gas processing plant. BUT the Operator is Conoco, one of the best oilcompanies. Means, it is a plus that a small Company as Elk, is a Partner of a Major as Conoco.
In my opinion the negative, financial Impact of the fire is for Elk not as negative as emphasized by others because of their (and Conoco's??) insurance:
See Feb 2019 presentation: Late December 2018 fire occurred in Lost Cabin Gas Plant resulting in Train 3 damage & shut-down Elk has 11-months of business interruption insurancecovering ~US$440,000/month of gas sales revenues starting Feb 2019 Elk is fully insured for capital cost Train 3 repairs Operator estimates 9-12 months to restoreTrain 3 operations & has started ordering long-lead items Madden Shallow Gas Plant & Train 2 operations unaffected and fully operational 18
ELK Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
