Financial Data and Key Metrics Changes - The company generated $250 million of normalized EBITDA in the second quarter, maintaining debt metrics for the second consecutive quarter [4] - The outlook for normalized EBITDA for 2025 is reaffirmed at $1.01 billion, while distributable cash flow is revised to $590 million from $535 million [10][12] - Maintenance capital expenditures outlook is reduced by $10 million to $55 million for 2025 [11] Business Line Data and Key Metrics Changes - 90% of normalized EBITDA is contracted, indicating stability in the base business despite market volatility [10] - The company continues to fulfill contractual commitments of 585,000 barrels per day while addressing operational challenges [7] Market Data and Key Metrics Changes - The company anticipates lower demand for uncommitted capacity in the near term due to the startup of the TMX pipeline [27] - 94% of the Keystone system is fully contracted, with only 6% reserved for spot capacity [28] Company Strategy and Development Direction - The company is transitioning from a rate-regulated entity to a more commercially focused organization, optimizing workflows for long-term competitiveness [4][5] - Strategic focus includes leveraging pre-invested capital in Alberta and Gulf Coast systems to provide incremental capacity solutions [17] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the safety of operations and the ability to address corrective actions from the Milepost 171 incident [6][9] - The company is on track to meet near-term deleveraging targets and maintain a quarterly dividend of $0.50 per share [12][13] Other Important Information - The total estimated cost for the Milepost 171 incident, including response and cleanup, is approximately $60 million, with insurance expected to cover most of these costs [7] - The root cause failure analysis is ongoing, with results expected by the end of September [8][24] Q&A Session Summary Question: Energy infrastructure development in Canada - Management anticipates higher crude oil production and is committed to leveraging existing infrastructure to meet demand [16] Question: Opportunities post-TSA exit - Exiting TSAs allows the company to focus solely on its business and accelerate workflow optimization [18][19] Question: Delay in root cause analysis - Management clarifies that there is no significant delay, and the analysis is expected to be completed in September [22][23] Question: Demand for uncommitted capacity - The company remains competitive in the Gulf Coast market and anticipates limited spot volumes in the near term [27][28] Question: Organic and inorganic growth opportunities - The company is actively pursuing growth opportunities in both Canada and the U.S., with a balanced focus [33][34] Question: Cash tax trajectory - Current tax reductions are expected to be around $15 million, which will be used for growth capital or deleveraging [40][42] Question: Metallurgical analysis findings - The analysis indicates an isolated issue rather than a systemic problem, with further details pending the completion of the root cause analysis [44][46] Question: Future toll revisions - Management expresses confidence in the market-driven contracts of Keystone, differing from competitors' tolling mechanisms [50][52]