South Bow (SOBO) Investor Day 2025 summary

Strategic achievements and business transformation

• Completed spin-off, established independent operations, achieved NYSE listing, and built a new management team and board, optimizing cost structure and resolving legacy litigation.

• Achieved 31% total shareholder return since inception, outperforming major indices.

• Maintained a strong safety record, with over 1.5 million work hours without a recordable incident, and prioritized a values-based culture emphasizing safety, integrity, and teamwork.

• Delivered the Blackrod project on time and on budget, with the Blackrod Connection Project 95% complete and ready for service in early 2026.

• Achieved top performance in infrastructure segment total return, supported by a sustainable dividend.

Strategic priorities and growth outlook

• Focused on safe operations, continuous improvement, and cost optimization as foundational goals.

• Prioritizing both organic and inorganic growth, evaluating ~20 opportunities with $4B potential capital investment.

• Targeting to reduce leverage to 4x by 2027, a year ahead of previous guidance, and plans to lower net debt-to-normalized EBITDA to 4x.

• Ambitious goal to double or triple enterprise value within five years, leveraging both internal and external growth.

• Maintaining disciplined capital allocation, with a commitment to a meaningful and sustainable dividend and increasing shareholder returns.

Operational excellence and asset integrity

• Investing ~$150 million annually in pipeline integrity, using advanced inspection and leak detection technologies.

• Improved asset integrity performance by 40% over five years, aiming for top decile industry ranking, and targeting lower accident rates through proactive inspections and technology.

• Responded effectively to the Milepost 171 incident, implementing remedial programs and expecting to lift pressure restrictions incrementally by 2026.

• Nearly all pipeline system inspected annually, with comprehensive integrity assessments and increased in-line inspections and integrity digs through 2026.

• Focused on returning the Keystone Pipeline to baseline operations.