South Bow (SOBO) Investor Day 2025 presentation summary

Establishment and strategic positioning

• Successfully executed spinoff, launching as an independent liquids pipeline company in October 2024 after meeting all key milestones, including a $5.8 billion debt offering and strong shareholder support for the transaction.

• Operates a 4,900 km pipeline network delivering 1.25 million barrels per day, with 90% of 2025 forecast EBITDA contracted and an enterprise value of $11 billion as of October 2025.

• Achieved a 31% total return since inception, outperforming major indices, and assembled a high-caliber board and management team.

Financial strength and capital allocation

• Maintains a disciplined capital allocation strategy: sustainable base dividend, deleveraging to a 4x net debt-to-normalized EBITDA ratio, and investing in strategic growth.

• 2026 guidance includes normalized EBITDA of $1,030 million (±2%) and distributable cash flow of $655 million (±2%), underpinned by highly contracted, stable cash flows.

• Dividend payout ratio targeted to decrease, with a focus on maintaining investment-grade credit and self-funding growth without outside capital.

Operational excellence and asset integrity

• Prioritizes safe operations, asset integrity, and industry-leading safety performance, with proactive risk management and benchmarking against best practices.

• Incorporated findings from the Milepost 171 incident into remedial work and integrity programs, including increased inspections and technology upgrades.

• Comprehensive integrity program includes thousands of kilometers of in-line inspections and dozens of integrity digs annually.