South Bow (SOBO) Corporate presentation summary

Strategic and corporate overview

• Operates a 4,900 km liquids pipeline network with 1.25 MMbbl/d delivery and 7.6 MMbbl storage capacity.

• Focuses on connecting resilient supply to major North American demand markets, especially the US Gulf Coast.

• Leadership team and board bring deep industry expertise and a strong governance framework.

• Vision emphasizes safety, integrity, teamwork, and delivering energy reliably.

Asset and operational highlights

• Keystone Pipeline System spans 4,300 km, operating across three Canadian provinces and eight US states.

• System throughput averaged 596 Mbbl/d in 2023, with a system operating factor of 95%.

• US Gulf Coast segment enhances connectivity to major refineries and export terminals.

• Intra-Alberta pipelines connect oil sands production to refining and export markets, with >160 billion barrels in reserves.

• Blackrod Connection Project to add 25 km of pipeline, C$250M investment, in service by 2026.

Financial and market fundamentals

• 88% of comparable EBITDA is contracted, with 96% of revenue from investment-grade counterparties.

• 2025E comparable EBITDA projected at C$1.4–1.5B, with minimal commodity price risk.

• Initial net debt-to-comparable EBITDA ratio of 5.0x, targeting reduction to 4.0x over the long term.

• Sustainable base dividend of ~US$2.00/share (C$2.75/share), with inaugural dividend of C$0.69/share expected Nov 2024.

• Capital allocation priorities: reduce leverage, invest in strategic corridor, repurchase shares, and grow base dividend.