Core Points - South Bow Corp. held its annual general meeting on May 15, 2025, where shareholders approved all resolutions presented [1][2] - The company appointed 11 board members with voting in favor ranging from 96.51% to 99.83% [1] - KPMG LLP was appointed as the company's auditors with 99.76% of votes in favor [2] - The approach to executive compensation was accepted with 95.95% of votes in favor [2] Company Overview - South Bow operates 4,900 kilometers (3,045 miles) of crude oil pipeline infrastructure, connecting Alberta crude oil supplies to U.S. refining markets [2] - The company is based in Calgary, Alberta, and is a spinoff from TC Energy, officially becoming a standalone entity on October 1, 2024 [2]

Core Viewpoint - South Bow Corp. reported its first-quarter 2025 financial and operational results, demonstrating resilience despite market volatility and outlining its outlook for the year ahead [1]. Financial Performance - Revenue for Q1 2025 was $498 million, with a net income of $88 million, translating to $0.42 per share [5][7]. - Normalized EBITDA for the quarter was $266 million, reflecting an 8% decrease from Q4 2024 due to lower demand for uncommitted capacity [5][7]. - Distributable cash flow amounted to $151 million, with total long-term debt and net debt remaining stable at $5.7 billion and $4.9 billion, respectively [5][7]. - The company declared dividends totaling $104 million, or $0.50 per share, during the first quarter [5][7]. Operational Performance - The Keystone Pipeline recorded a throughput of approximately 613,000 barrels per day (bbl/d) with a System Operating Factor (SOF) of 98% [5][7]. - The U.S. Gulf Coast segment of the Keystone Pipeline System had a throughput of approximately 726,000 bbl/d [5][7]. - The Blackrod Connection Project's construction was completed, and the facility is expected to be in service by early 2026, with cash flows anticipated to increase through 2027 [5][7]. Market Outlook - The crude oil pipeline capacity in the Western Canadian Sedimentary Basin continues to exceed supply, leading to low demand for uncommitted capacity on the Keystone Pipeline in the near term [11]. - Economic and geopolitical uncertainties, including rapidly changing global trade policies, have contributed to significant volatility in commodity prices [11]. 2025 Guidance - South Bow reaffirmed its guidance for normalized EBITDA of approximately $1.01 billion for 2025, with 90% of this secured through committed arrangements [17]. - The company adjusted its normalized EBITDA guidance range to $1.01 billion +/- 1% / -2% due to strong Q1 performance [17]. - Normalized EBITDA for Q2 2025 is expected to be approximately 7% to 8% lower than Q1 2025 [17]. Capital Allocation Priorities - The company focuses on paying a sustainable base dividend, strengthening its investment-grade financial position, and leveraging existing infrastructure to enhance customer offerings [17].

Core Viewpoint - South Bow Corp. has successfully restarted the Keystone Pipeline after receiving regulatory approval following an oil release incident on April 8, 2025, near Fort Ransom, North Dakota [1][3]. Group 1: Incident Response and Recovery - South Bow has repaired and replaced the affected pipeline section and has recovered most of the estimated 3,500 barrels of oil released, focusing on soil remediation [2]. - The company is committed to the safety of personnel and minimizing environmental risks, with continuous air quality monitoring showing no adverse health concerns [2]. - A Corrective Action Order was issued by PHMSA on April 11, 2025, requiring South Bow to implement specific corrective actions, which included a restart plan that has been approved [3]. Group 2: Regulatory Compliance and Operations - The Keystone Pipeline is now operating under certain pressure restrictions as mandated by PHMSA, and South Bow has also informed the Canada Energy Regulator about similar restrictions on the Canadian sections of the pipeline [3]. - The pipeline was operating within its design and regulatory approval requirements at the time of the incident [3]. - South Bow is actively engaging with regulators, local officials, landowners, and the community during the recovery process [2][3]. Group 3: Communication and Updates - South Bow will continue to provide updates regarding the incident and recovery efforts on its website [4].

Core Points - South Bow Corp. will release its first-quarter 2025 financial and operational results on May 15, 2025, after market close [1] - A conference call and webcast to discuss these results will be held on May 16, 2025, at 8 a.m. MT (10 a.m. ET) [2] - The annual general meeting of shareholders will take place virtually on May 15, 2025, at 8 a.m. MT (10 a.m. ET) [5] Financial and Operational Results - The first-quarter 2025 financial results will be available after market close on May 15, 2025 [1] - Audited consolidated financial statements for the year ended December 31, 2024, are accessible on South Bow's website and through regulatory filings [7] Conference Call and Meeting Details - The conference call will provide an opportunity for stakeholders to discuss the first-quarter results [2] - Registration is required to access the conference call, and participants will receive a unique PIN [3] - The annual meeting will enable greater shareholder attendance and participation through a live audio webcast [5][6]

Tuesday’s Keystone pipeline spill resulted in roughly 3,500 barrels of crude oil being released in North Dakota.While that might not sound like much, the issue has halted the flow of millions of gallons of crude oil on the way from Canada to U.S. refineries. The $5.2 billion pipeline transported an average of 624,000 barrels, roughly 26 million gallons, in 2024.Here’s the rub — refineries keep a supply of crude on hand — but if the shutdown continues for a couple of more days, gas, and diesel in particular, ...

Core Points - South Bow Corp has shut down the Keystone Pipeline due to an oil release incident near Fort Ransom, North Dakota [1] - The shutdown was initiated after leak detection systems identified a pressure drop, with the system being fully shut down within two minutes [2] - Approximately 3,500 barrels of oil have been estimated to be released from the pipeline [2] Response Efforts - The company has activated emergency response procedures, focusing on onsite staff safety, community well-being, and environmental protection [3] - Continuous air and environmental monitoring has been established to mitigate risks associated with the incident [3] - South Bow will provide ongoing updates regarding the situation on its website [3] Forward-Looking Statements - The news release includes forward-looking statements regarding the company's response efforts and future updates related to the oil release [4][5] - These statements are based on assumptions about market conditions, regulatory approvals, and operational costs [5][6] - The company does not guarantee the accuracy of these forward-looking statements, as they are subject to various risks and uncertainties [6][7]

Company Overview - South Bow Corporation has officially listed on the Toronto Stock Exchange (TSX) [1] - The company was previously part of TC Energy's liquid pipelines business and became a standalone entity in 2024 [2] Operational Highlights - South Bow delivers 1.25 million barrels of crude oil daily through its pipeline infrastructure [2] - The company connects Alberta crude oil supplies to U.S. refining markets located in Illinois, Oklahoma, and the U.S. Gulf Coast [2] - South Bow emphasizes safe and reliable transportation to North America's highest demand markets [2]

Financial Data and Key Metrics Changes - South Bow generated normalized EBITDA of $1.09 billion and distributable cash flow of $608 million in 2024 [13] - The company expects to generate normalized EBITDA of $1.01 billion in 2025, reflecting a range of 3% [15] - The net debt to normalized EBITDA ratio is forecasted to be approximately 4.8x by the end of 2025 [16] Business Line Data and Key Metrics Changes - The marketing segment is expected to see a reduction of approximately $30 million year-over-year due to decreased activity and certain unwinds of positions to reduce risk [99] - 90% of normalized EBITDA is secured through committed arrangements, minimizing commodity price or volumetric risk [14][28] Market Data and Key Metrics Changes - There is significant demand for uncommitted capacity on Keystone and continued strength in demand for capacity on the U.S. Gulf Coast segment [14] - The company has observed extreme demand in the Gulf Coast for heavy barrels out of Canada, indicating strong supply and demand fundamentals [24] Company Strategy and Development Direction - The company is focused on leveraging existing infrastructure to deliver high returns for shareholders, with a keen interest in energy solutions in the U.S. and Canada [11] - South Bow's capital allocation priorities include paying a sustainable dividend and strengthening its investment-grade financial position [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage risks associated with tariffs and market volatility, with a strong contracted base supporting guidance [28][29] - The company is entering 2025 in a strong financial position and remains on track to meet near-term deleveraging targets [16] Other Important Information - The company received approval from PHMSA to lift pressure restrictions on a segment of the Keystone system, which is expected to improve operational efficiency [96] - The ongoing uncertainty around tariffs may create headwinds for uncommitted capacity, prompting a shift towards a more contracted strategy [15][72] Q&A Session Summary Question: Discussion on open season and interest levels - Management noted that Western Canadian sedimentary basin has been egress constrained for years, but there is encouragement from both supply and demand fundamentals [22][24] Question: Changes in long-term debt-to-EBITDA target - Management confirmed a focus on deleveraging to reach a target of four times by 2028, emphasizing the importance of maintaining a strong balance sheet [26] Question: Guidance on tariffs and downside risks - Management indicated that 90% of EBITDA is contracted, allowing for management of uncertainties within a 3% range [28][29] Question: Future growth opportunities and recapitalized optionality - Management discussed the pre-capitalized corridors and ongoing optimization of existing infrastructure to enhance capacity [38][40] Question: Marketing strategy and market conditions - Management highlighted a shift towards a contracted marketing strategy to mitigate volatility and improve shareholder value [72][106] Question: Variable toll issues and customer relations - Management is prioritizing customer-centric solutions and is in discussions to resolve ongoing commercial and legal issues [78][81] Question: Long-term EBITDA growth outlook - Management expressed confidence in achieving a 2% to 3% growth rate, driven by increased delivery points and capturing additional volumes [87][106] Question: PHMSA approval impact on capacity - Management confirmed that lifting the pressure restriction will enhance operational efficiency but did not provide specific throughput increases [96] Question: Balancing growth and deleveraging - Management stated that growth opportunities are aligned with deleveraging efforts, particularly through projects within pre-capitalized corridors [110][111]

Corporate Presentation MARCH 2025 South Bow at a Glance A strategic liquids pipelines franchise connecting resilient supply to the strongest demand markets in North America OPERATIONAL HIGHLIGHTS | 4,900 | km | Pipeline footprint | | --- | --- | --- | | 1.25 | MMbbl/d | Delivered safely and reliably | | 7.6 | MMbbl/d | Terminal storage capacity | FINANCIAL HIGHLIGHTS1 | 208 million | Shares outstanding | | --- | --- | | $5.5 billion | Market capitalization | | $11.0 billion | Enterprise value2 | | $2.00 /sh ...

Financial Data and Key Metrics Changes - South Bow generated normalized EBITDA of $1.09 billion and distributable cash flow of $608 million in 2024 [13] - The company expects to generate normalized EBITDA of $1.01 billion in 2025, reflecting a range of 3% [15] - The net debt to normalized EBITDA ratio is forecasted to be approximately 4.8% by the end of 2025 [16] Business Line Data and Key Metrics Changes - 90% of normalized EBITDA is secured through committed arrangements, minimizing commodity price or volumetric risk [14] - The marketing segment is expected to see a reduction of approximately $30 million year-over-year due to reduced activity and certain unwinds of positions [99] Market Data and Key Metrics Changes - There is significant demand for uncommitted capacity on Keystone and continued strength in demand for capacity on the U.S. Gulf Coast segment [14] - The company has observed extreme demand in the Gulf Coast for heavy barrels out of Canada, indicating strong supply and demand fundamentals [24] Company Strategy and Development Direction - South Bow aims to leverage existing infrastructure to deliver high returns for shareholders, with a focus on capital allocation priorities and risk management [10] - The company is committed to maintaining a sustainable dividend while strengthening its investment-grade financial position [10][17] - Future growth will be pursued within risk preferences, with a focus on optimizing existing corridors and enhancing contracted strategies [12][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position entering 2025 and the ability to meet near-term deleveraging targets [16] - The ongoing uncertainty around tariffs may create headwinds for uncommitted capacity, but the company believes it can manage risks within its guidance [29] Other Important Information - The company received approval from PHMSA to lift pressure restrictions on a segment of the Keystone system, which is expected to improve operational efficiency [96] - The variable toll complaint process is ongoing, with decisions awaited from both Canadian and U.S. regulatory bodies [78] Q&A Session Summary Question: Discussion on open season and interest levels - Management noted that Western Canadian sedimentary basin has been egress constrained for years, but there is encouragement from both supply and demand fundamentals [22][24] Question: Changes in long-term debt-to-EBITDA target - Management confirmed a focus on deleveraging to reach a target of four times by 2028, emphasizing the importance of maintaining a strong balance sheet [26] Question: Guidance on tariffs and downside risks - Management indicated that 90% of EBITDA is contracted, allowing for stability despite market uncertainties, and they believe they can manage risks within a 3% range [28][29] Question: Future growth opportunities and recapitalized optionality - Management highlighted the importance of leveraging existing infrastructure and optimizing capital investments to support growth [39][40] Question: Marketing strategy and market conditions - Management is shifting towards a more contracted marketing strategy to mitigate volatility and improve shareholder value [71][106] Question: PHMSA approval impact on capacity - Management stated that the approval will enhance operational efficiency but did not provide specific throughput increases at this time [97] Question: Long-term EBITDA growth outlook - Management expressed confidence in achieving a 2% to 3% growth rate, driven by increased delivery points and capturing additional volumes [87][106]