South Bow Investor Day Summary Company Overview - **Company**: South Bow - **Event**: Inaugural Investor Day - **Key Executives Present**: Bevin Wirzba (CEO), Van Dafoe (CFO), Richard Prior (COO) [1][2] Core Industry Insights - **Industry Focus**: Heavy oil supply and demand dynamics - **Market Position**: South Bow connects the strongest supply of heavy oil globally to high demand markets in the Midwest and Gulf Coast [4][9] - **Unique Value Proposition**: South Bow operates an integrated value chain, enhancing customer relationships and creating value for both shareholders and customers [4][10] Financial Performance and Goals - **Milestones Achieved**: Successfully completed a spin-off from TC, listed on NYSE on October 8, 2024, and met all initial commitments [6][7] - **Financial Strategy**: Focus on reducing costs, maintaining a lean operational model, and optimizing capital allocation [11][30] - **Debt Management**: Targeting a leverage ratio of four times by 2027, ahead of schedule [30][54] Safety and Operational Excellence - **Safety Record**: Achieved 1.5 million work hours without a recordable incident in 2025 [18] - **Operational Goals**: Continuous improvement in safety performance and operational efficiency [27][33] - **Asset Integrity Focus**: Investing $150 million annually in pipeline integrity programs, aiming for industry-leading performance [56][57] Growth Strategy - **Growth Opportunities**: Plans for both organic growth (e.g., BlackRod project) and inorganic opportunities to expand revenue streams [28][41] - **Market Demand**: Anticipated increase in Canadian crude oil demand in the U.S., particularly in PADD 2 and PADD 3 markets [71][72] - **Production Forecast**: Potential for an additional million barrels per day from the Western Canadian Sedimentary Basin (WCSB) over the next decade [74] Key Challenges and Responses - **Incident Management**: Addressed the Milepost 171 incident effectively, with rapid response and remediation efforts [62][63] - **Regulatory Compliance**: Ongoing transparency with regulators and commitment to improving pipeline integrity [66][67] Conclusion - **Commitment to Shareholders**: South Bow emphasizes a sustainable dividend, financial discipline, and a focus on long-term growth while maintaining a strong balance sheet [44][45][53] - **Future Outlook**: Confident in the ability to leverage existing assets and market conditions to drive growth and enhance shareholder value [48][72]

Core Insights - Enbridge Inc. has approved a $1.4 billion expansion project, the Mainline Optimization Phase 1, to increase the capacity of the Mainline and Flanagan South pipelines, which are essential for transporting Canadian crude oil to U.S. refineries [1][8] Capacity Expansion for Mainline and Flanagan South - The expansion will add a total capacity of 250,000 barrels per day (bbl/d) for Canadian oil producers, enhancing the ability to transport crude to U.S. Midwest and Gulf Coast markets [2] - The Mainline network will see an increase of 150,000 bbl/d through terminal upgrades and upstream system enhancements, while the Flanagan South pipeline capacity will be boosted by 100,000 bbl/d via new pump stations and increased terminal capacity [2] - The expanded capacity is expected to be operational by 2027 [2] Current Capacity and Performance - The Mainline System currently has a capacity of 3 million bbl/d and achieved record shipments of 3.1 million bbl/d in the third quarter [3] - The Mainline Optimization Phase 1 project aims to enhance egress capacity for Canadian oil shippers while maintaining capital efficiency, improving connectivity to refining markets across North America [3] Future Expansion Considerations - Enbridge is evaluating a potential second phase of expansion for the Mainline network, which could add another 250,000 bbl/d [4] - The company plans to assess commercial interest in this second phase next year, indicating a strategic focus on expanding transportation networks to the U.S. despite Canadian government efforts to diversify markets [4] Oil Production Trends - Canadian oil production reached a record 5.1 million bbl/d last year, with expectations of growth by 500,000-600,000 bbl/d by the end of the decade [5] - Enbridge's planned expansions are aligned with anticipated demand growth in the coming years [5]

Core Viewpoint - TC Energy is highlighted as a strong investment choice in the energy sector, particularly for investors seeking steady income due to its extensive pipeline network and power generation capabilities [1]. Group 1: Company Overview - TC Energy is headquartered in Calgary, Alberta, and operates nearly 58,000 miles of natural gas pipelines [1]. - The company manages seven power-generation facilities that can supply energy to over 4 million homes [1]. Group 2: Performance Metrics - TC Energy has seen a Relative Strength (RS) Rating upgrade to 71, indicating improving technical performance [3]. - The company has reached an RS Rating benchmark of 80-plus, showcasing its strong market position [3]. Group 3: Market Position - TC Energy is noted for offering a rare combination of high yield and steady stock performance, making it an attractive option for investors [3].

Core Insights - Enbridge Inc. reported Q3 2025 adjusted EPS of 33 cents, missing the Zacks Consensus Estimate of 39 cents and down from 40 cents in the previous year [1][10] - Total revenues for the quarter were $10.6 billion, a decline from $10.9 billion year-over-year, also missing the Zacks Consensus Estimate of $10.86 billion [1][10] - The weak performance was primarily due to lower Adjusted EBITDA contributions from the Liquids Pipelines and Renewable Power Generation segments [2][10] Segmental Analysis - **Liquids Pipelines**: Adjusted EBITDA was C$2.31 billion, down from C$2.34 billion year-over-year, affected by lower contributions from the Flanagan South and Spearhead Pipelines [4] - **Gas Transmission**: Adjusted earnings increased to C$1.26 billion from C$1.15 billion, driven by favorable contracting and contributions from the Venice Extension project [5] - **Gas Distribution and Storage**: Profit rose to C$560 million from C$522 million, supported by increased contributions from U.S. Gas Utilities and acquisitions in North Carolina [6] - **Renewable Power Generation**: Earnings increased to C$100 million from C$86 million year-over-year [6] - **Eliminations and Other**: Adjusted EBITDA decreased to C$38 million from C$96 million in the previous year [7] Financial Metrics - Distributable Cash Flow (DCF) was reported at C$2.57 billion, down from C$2.6 billion a year ago [8] - Long-term debt stood at C$100.6 billion, with cash and cash equivalents of C$1.4 billion and a current portion of long-term debt at C$1.8 billion [9] Outlook - For 2025, Enbridge reaffirmed its guidance for Adjusted EBITDA in the range of $19.4-$20.0 billion and DCF per share between $5.50-$5.90 [10] - The company expects a near-term growth outlook (2023-2026) of 7-9% for adjusted EBITDA and nearly 3% for DCF per share [10]

Financial Data and Key Metrics Changes - The company reported a record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [7][24] - Adjusted EBITDA increased by $66 million compared to Q3 2024, while EPS decreased from $0.55 to $0.46 due to seasonal lower EBITDA in Q3 [24] - The debt to EBITDA ratio for the quarter is 4.8 times, remaining within the target leverage range of 4.5 to 5 times [7][26] Business Line Data and Key Metrics Changes - In the liquids segment, mainline volumes reached a record average of 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - The gas transmission segment experienced strong performance due to favorable contracting and rate case outcomes, contributing to overall growth [25] - The gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [25] Market Data and Key Metrics Changes - The company added $3 billion in new growth capital to its secured capital program, showcasing continued execution on commitments [8][9] - The North American energy landscape is evolving with increased demand driven by LNG development, power generation, and data centers [31][32] - The company is positioned to add over 60 BCF of new natural gas storage capacity adjacent to major LNG centers in North America [18][19] Company Strategy and Development Direction - The company aims for 5% growth through the end of the decade, supported by $35 billion in secured capital [31][32] - The focus remains on brownfield, highly strategic projects that are economically viable and supported by underlying energy fundamentals [28][31] - The company is actively pursuing opportunities in gas distribution and storage, particularly in response to power demand and data center growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA in the upper half of the guidance range of $19.4 billion to $20 billion [26] - The company anticipates continued strong performance despite headwinds from higher interest rates and tight differentials [27] - Management highlighted the importance of strategic positioning in the growing North American storage market to support LNG capacity and power demand growth [19][20] Other Important Information - The company has sanctioned expansions of gas storage facilities to support LNG buildout along the U.S. Gulf Coast [9][17] - The company is advancing a joint venture with Oxy to develop the Pelican CO2 hub in Louisiana, which will provide transportation and sequestration for 2.3 million tons of CO2 per year [9][15] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an acceleration in commercial activity across various regions, particularly in Ohio and Utah, driven by data center demand and power generation [34][35] Question: Construction timeline for Line 5 - Management indicated that permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with completion expected in 2027 [42][43] Question: Mainline optimization phase two - Management confirmed that customer demand and a favorable environment are driving the expedited timing for expanded egress to Canadian producers [48][49] Question: Growth outlook and capital sequencing - Management expressed confidence in maintaining capital spending between $9 billion and $10 billion, with a strong project pipeline supporting growth [55][56] Question: Customer conversations regarding gas storage in Western Canada - Management highlighted strong customer interest in gas storage expansions, with significant contracts already signed for new capacity [70][72] Question: Managing cost risk in power generation projects - Management emphasized prudent capital management and strong contractor relationships to mitigate cost risks in competitive markets [78][80]

Financial Data and Key Metrics Changes - The company reported record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [7][24] - Adjusted EBITDA increased by $66 million compared to Q3 2024, while EPS decreased from $0.55 to $0.46 due to seasonal lower EBITDA in Q3 [24][26] - Debt to EBITDA ratio stands at 4.8 times, remaining within the target leverage range of 4.5 to 5 times [7][26] Business Line Data and Key Metrics Changes - Liquids segment achieved record mainline volumes of approximately 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - Gas transmission experienced strong performance with favorable contracting outcomes and contributions from new projects [25] - Gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [25][21] Market Data and Key Metrics Changes - The company added $3 billion in new growth capital to its secured capital program, showcasing continued execution on growth commitments [8][29] - The North American energy landscape is evolving with increased demand driven by LNG development, power generation, and data centers [31][70] Company Strategy and Development Direction - The company aims for 5% growth through the end of the decade, supported by $35 billion in secured capital [31][26] - Focus on brownfield projects that are capital efficient and strategically aligned with energy fundamentals [29][31] - The company is positioned to capitalize on the growing demand for natural gas and renewable energy projects [22][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA in the upper half of the guidance range of $19.4 billion to $20 billion [26][31] - Positive rate settlements in gas distribution are expected to enhance revenue and support continued investment [21][26] - The company is optimistic about the future growth potential in the renewable energy sector, particularly in solar projects [22][97] Other Important Information - The company has sanctioned expansions in gas storage to meet increasing LNG-related demand, adding over 60 Bcf of new natural gas storage capacity [18][19] - The management team is focused on maintaining a disciplined capital allocation strategy while pursuing growth opportunities [28][29] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an increase in commercial activity across various regions, particularly in Ohio and Utah, driven by data center demand and power generation [34][35] Question: Construction timeline for Line 5 - Permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with completion expected in 2027 [42][43] Question: Mainline optimization phase two - Management confirmed that customer demand is driving the expedited timing for expanded egress to Canadian producers [48][49] Question: Growth outlook and capital sequencing - Management expressed confidence in maintaining capital spending between $9 billion and $10 billion, with a strong project backlog supporting growth [55][56] Question: Renewable energy portfolio - The company is well-positioned in the solar market, with strong customer demand and several projects in development [96][97]

Financial Data and Key Metrics Changes - Enbridge reported a record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [6][24] - The debt to EBITDA ratio for the quarter was 4.8 times, remaining within the target leverage range of 4.5 to 5 times [6][27] - Compared to Q3 2024, adjusted EBITDA increased by $66 million, while EPS decreased from $0.55 to $0.46 per share due to seasonal lower EBITDA in Q3 [24][25] Business Line Data and Key Metrics Changes - Liquids segment achieved record mainline volumes of 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - Gas transmission experienced strong performance with favorable contracting outcomes and contributions from new projects [24] - Gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [24] Market Data and Key Metrics Changes - The U.S. Northeast is experiencing increased demand for natural gas, with expansions in the Algonquin pipeline to address supply shortages [15][17] - The North American storage market is tightening, with Enbridge positioned to add over 60 BCF of new natural gas storage capacity [17][18] Company Strategy and Development Direction - Enbridge's strategy focuses on executing a diverse range of growth projects across all business segments, with a commitment to maintaining a low-risk business model [10][28] - The company anticipates achieving 5% growth through the end of the decade, supported by $35 billion in secured capital [28][29] - Enbridge is advancing projects that align with energy demand growth driven by LNG development, power generation, and data centers [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience and the ability to deliver strong results through various economic cycles [25][28] - The company noted improving policy support for energy infrastructure investments, which is expected to enhance growth opportunities [28][55] Other Important Information - Enbridge has sanctioned $3 billion in new growth capital projects during the quarter, showcasing continued execution on growth commitments [7][27] - The company has maintained a consistent dividend growth for 30 consecutive years, reflecting the stability of its business fundamentals [27] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an acceleration in commercial activity driven by demand from data centers and power generation, particularly in Ohio and Utah [30][31] Question: Line 5 construction and permitting - Management indicated that permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with expectations to complete the Wisconsin Reboot by 2027 [34] Question: Mainline optimization phase two - Management confirmed that the optimization is not an acceleration but a continuation of efforts to meet customer demand, with significant supply growth expected from Canadian producers [37][39] Question: Growth outlook and capital sequencing - Management expressed confidence in maintaining capital spending between $9 billion and $10 billion, with a strong project pipeline supporting growth [42][44] Question: LNG Canada and gas storage opportunities - Management highlighted strong customer interest in gas storage expansions, with significant contracts already signed for new capacity [49] Question: Managing cost risk in hot markets - Management emphasized prudent capital management and strong contractor relationships to mitigate cost risks in competitive areas [51][52]

Core Insights - Enbridge Inc. reported strong third quarter 2025 financial results, achieving record EBITDA and reaffirming its financial guidance for the year [3][5][17] - The company continues to capitalize on growing energy demand across North America, leveraging its extensive infrastructure to deliver gas, liquids, and renewable power [2][8] Financial Performance - GAAP earnings attributable to common shareholders for Q3 2025 were $0.7 billion or $0.30 per share, down from $1.3 billion or $0.59 per share in Q3 2024 [5][9] - Adjusted earnings for Q3 2025 were $1.0 billion or $0.46 per share, compared to $1.2 billion or $0.55 per share in the same period last year [5][51] - Adjusted EBITDA for Q3 2025 increased to $4.3 billion from $4.2 billion in Q3 2024, driven by acquisitions and favorable contracting [14][34] Project Developments - Enbridge sanctioned $3 billion in new projects during the quarter, including the Southern Illinois Connector and expansions in gas storage facilities [3][5][22] - The Southern Illinois Connector project will provide 100 kbpd of long-haul service and is expected to cost $0.5 billion, entering service in 2028 [4][22] - The company is advancing multiple expansion opportunities in the Liquids segment, including Mainline Optimization Phase 1 and Phase 2, which will add significant capacity [4][8] Growth Outlook - Enbridge has added approximately $7 billion to its secured project backlog, totaling $35 billion in sanctioned growth capital expected to enter service through 2030 [8][21] - The company reaffirms its 2025 financial guidance for adjusted EBITDA between $19.4 billion and $20.0 billion and DCF per share between $5.50 and $5.90 [17][19] Business Segments Performance - Liquids Pipelines segment reported adjusted EBITDA of $2.3 billion, slightly down from $2.34 billion in Q3 2024, primarily due to lower contributions from certain pipelines [36][37] - Gas Transmission segment saw adjusted EBITDA increase to $1.26 billion from $1.15 billion in the previous year, attributed to successful rate case settlements and new projects [38][39] - Gas Distribution and Storage segment's adjusted EBITDA rose to $560 million from $522 million, reflecting strong performance from U.S. gas utilities [40][43] Renewable Energy Initiatives - Enbridge is advancing over 1.4 GW of solar projects expected to be operational by 2027, targeting technology and data center clients [7][8] - The company is also involved in carbon capture projects, including the Pelican CO2 Hub in Louisiana, expected to cost $0.3 billion and enter service in 2029 [5][23]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $3.84 billion, a decrease from $3.96 billion in Q3 2024, but flat year-over-year when excluding non-recurring items [3][4] - Year-to-date adjusted EBITDA reached $11.8 billion, compared to $11.6 billion for the same period in 2024 [4] - Distributable Cash Flow (DCF) attributable to partners was approximately $1.9 billion for the first nine months of 2025 [4] Business Line Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA increased to $1.1 billion from $1 billion in Q3 2024, driven by higher throughput [4] - Midstream segment adjusted EBITDA decreased to $751 million from $816 million in Q3 2024, impacted by a one-time business interruption claim in the previous year [5] - Crude oil segment adjusted EBITDA was $746 million, down from $768 million in Q3 2024, affected by lower transportation revenues [5] - Interstate natural gas segment adjusted EBITDA decreased to $431 million from $460 million in Q3 2024, but included a $43 million increase from a prior tax obligation resolution [6] - Intrastate natural gas segment adjusted EBITDA fell to $230 million from $329 million in Q3 2024, despite increased volumes due to third-party growth [7] Market Data and Key Metrics Changes - The company experienced strong volumes in natural gas interstate and intrastate pipelines, with significant demand expected to support growth in gas-fired power plants and data centers [8][10] - The Desert Southwest pipeline project is fully contracted under long-term commitments, indicating strong market demand [9] Company Strategy and Development Direction - The company plans to spend approximately $4.6 billion on organic growth capital projects in 2025, down from a previous estimate of $5 billion [7] - Future growth capital is expected to be around $5 billion in 2026, primarily focused on natural gas segments [7] - The company is exploring converting NGL pipelines to natural gas service due to competitive pressures and potential for higher revenue [12][45] - Significant expansions in processing capacity in the Permian Basin are anticipated to support downstream pipeline networks [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to meet growing energy demand and highlighted a strong backlog of growth projects [23][24] - The company is focused on capital discipline and ensuring projects meet risk-return criteria before proceeding [22][76] - Management noted that the LNG project at Lake Charles is contingent on securing sufficient equity partners and contracts before moving to a final investment decision (FID) [22][76] Other Important Information - The company has entered into multiple long-term agreements with data centers and power plants, reflecting a growing demand for natural gas supply [15][36] - The expansion of the Bethel natural gas storage facility is expected to double its capacity, enhancing reliability and addressing demand fluctuations [13][66] Q&A Session Summary Question: Clarification on guidance for the year - Guidance for 2025 does not include the acquisition of Parkland, and the company expects to be slightly below the initial guidance range [27] Question: Details on Lake Charles LNG project - The company is focused on securing contracts and equity partners before proceeding to FID, with ongoing discussions to finalize agreements [28][30] Question: Financial impact of recent data center deals - The company is optimistic about the financial impact of data center agreements, which are expected to drive significant revenue growth [33][36] Question: Growth backlog and CapEx outlook - The company has a strong backlog of high-return projects, with a projected CapEx of $5 billion for the next year [54][55] Question: Converting NGL pipes to natural gas service - The company is considering converting underutilized NGL pipelines to natural gas service due to competitive pressures and potential for higher revenue [42][45] Question: Crude oil projects and earnings growth - The company expects new connections with Enbridge to maintain and potentially grow earnings across crude assets [46][50]

Industry Overview & Growth Drivers - Natural gas is considered a key enabler for the US economy, especially for powering the next generation of technology and AI [3][4] - The industry views natural gas as America's affordability superpower, costing the equivalent of 50 cents per gallon of gasoline on an energy equivalent basis [3] - The industry believes natural gas can scale fast, meet customer needs, and is the most dispatchable and fastest speed to market capability at scale [4][7] - The industry emphasizes the need for an "all the above" approach to energy, but sees natural gas as a crucial resource in the near term [8] Infrastructure & Regulatory Challenges - The industry expresses hope that the current administration is recognizing the affordability challenge and speeding up approvals for energy projects [8] - Lack of infrastructure is hindering economic investment in regions like New England and New York, where 20% of the population resides but receives less than 2% of economic investment for manufacturing and data centers [10][11] - Some states are perceived to be "weaponizing" the permitting process, creating regulatory burdens that make it difficult to build infrastructure [12][13] - It has been over a decade since new infrastructure was built in New York [10] Company Strategy & Future Outlook - Williams handles roughly a third of all natural gas in the US, operating 33,000 miles of pipelines [1] - Williams is focused on ensuring the US has the infrastructure and energy available to reach its full potential, engaging with hyperscalers to meet their needs [15][16] - Williams is working on projects to power data centers in the next 12-18 months, while also expanding infrastructure to build out the grid over time [18]