South Bow (SOBO) investor relations material

Operational and strategic highlights

• Operates a 4,900 km liquids pipeline network with 1.25 MMbbl/d delivery and 7.7 MMbbl storage capacity.

• Achieved 95% system operating factor and 616 Mbbl/d Keystone throughput in Q1 2026.

• Advanced the Blackrod Connection Project and responded effectively to the Milepost 171 incident.

• Outperformed peers with a 38% total return since spinoff.

• Focused on safe operations, growth portfolio execution, and workflow optimization for 2026.

Market positioning and demand outlook

• Connects resilient Canadian supply to major U.S. demand centers, offering competitive tolls and flexible delivery.

• ~90% of 2026 normalized EBITDA is contracted, with >95% of customers being refiners or integrated companies.

• Canadian heavy crude supply is resilient, with WCSB holding >160 Bbbl reserves and a growing share of North American supply.

• U.S. refining demand for Canadian heavy crude is strong, with opportunities to capture additional market share.

• WCSB supply is expected to exceed pipeline egress capacity by mid-2027, supporting the need for new projects.

Financial performance and guidance

• Q1 2026 normalized EBITDA was $257M, with distributable cash flow of $168M and a net debt-to-normalized EBITDA ratio of 4.7x.

• 2026 guidance: $1,030M ±2% normalized EBITDA, $655M ±2% distributable cash flow, and $315M ±2% financial charges.

• Maintains an investment-grade credit rating (Baa3/BBB-/BBB-) and targets a net debt-to-normalized EBITDA ratio of 4x medium term.

• Pays a $2.00/share annual base dividend (~6% yield), with a focus on sustainability and potential for future growth.

• Dividend payout ratio is managed for stability, with dividends as the primary means of returning capital.