Core Viewpoint - South Bow Corp. reported its second-quarter 2025 financial and operational results, highlighting stable performance despite challenges in the market and ongoing projects related to its spinoff from TC Energy [1]. Financial Performance - Revenue for Q2 2025 was $524 million, with a net income of $96 million, translating to $0.46 per share [8]. - Normalized EBITDA for Q2 2025 was $250 million, a 6% decrease from Q1 2025, primarily due to lower contributions from the Marketing segment [5][8]. - Distributable cash flow reached $167 million in Q2 2025 [5]. - The company maintained total long-term debt of $5.8 billion and net debt of $4.9 billion, with a net debt-to-normalized EBITDA ratio of 4.6 times as of June 30, 2025 [5][8]. Operational Performance - Average throughput on the Keystone Pipeline was approximately 544,000 barrels per day (bbl/d) in Q2 2025, with the U.S. Gulf Coast segment averaging about 760,000 bbl/d [5]. - The company completed construction of a 150,000-barrel crude oil storage tank as part of the Blackrod Connection Project, which is expected to be operational in early 2026 [5]. - South Bow successfully completed cleanup and reclamation of the Milepost 171 incident site, with costs estimated at $58 million, largely recoverable through insurance [5][12]. Returns to Shareholders - The company declared dividends totaling $104 million, or $0.50 per share, during Q2 2025, with the next dividend payment scheduled for October 15, 2025 [5][8]. - South Bow's capital allocation priorities include paying a sustainable base dividend and strengthening its investment-grade financial position [23]. Outlook - The demand for uncommitted capacity on the Keystone Pipeline is expected to remain low in the near term due to excess pipeline egress capacity in the Western Canadian Sedimentary Basin [13]. - South Bow anticipates a modest increase in its net debt-to-normalized EBITDA ratio through 2025, with expectations to begin reducing leverage once the Blackrod Connection Project starts generating cash flow in 2026 [14].

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 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]

Core Viewpoint - South Bow Corp. reports strong financial and operational results for 2024, highlighting its successful spinoff from TC Energy and providing an optimistic outlook for 2025, despite anticipated challenges in the market. Spinoff Transaction - South Bow launched as an independent company on October 1, 2024, completing its separation from TC Energy Corp. [5] - The company raised approximately $5.8 billion through an initial notes offering on August 28, 2024, and repaid outstanding long-term debt to TC Energy affiliates on the spinoff date [5]. Safety and Operational Performance - South Bow achieved record occupational and process safety performance in 2024 [5]. - The Keystone Pipeline recorded an annual System Operating Factor (SOF) of 95%, with average throughput of approximately 626,000 barrels per day (bbl/d), a 5% increase from 2023 [5]. - The U.S. Gulf Coast segment of the Keystone Pipeline System averaged approximately 795,000 bbl/d, increasing by 15% relative to 2023 [5]. Financial Performance - South Bow generated revenue of $488 million and $2,120 million for the three months and year ended December 31, 2024, respectively [11]. - The company recognized net income of $55 million ($0.26/share) and $316 million ($1.52/share) for the same periods [11]. - Normalized EBITDA for the year ended December 31, 2024, was $1,091 million, a 2% increase from 2023 [11]. - Distributable cash flow was $183 million and $608 million for the three months and year ended December 31, 2024, respectively [11]. Capital Expenditures and Debt - South Bow exited 2024 with total long-term debt of $5.7 billion and net debt of $4.9 billion, with a net debt-to-normalized EBITDA ratio of 4.5 times [11]. - The company expects its net debt-to-normalized EBITDA ratio to increase modestly in 2025 due to investments in the Blackrod Connection Project and one-time spinoff costs [6]. Returns to Shareholders - South Bow declared its inaugural quarterly dividend of $104 million ($0.50/share) on November 7, 2024, and plans to pay a similar dividend on April 15, 2025 [12]. 2025 Guidance - The company projects normalized EBITDA of approximately $1.01 billion for 2025, with about 90% secured through committed arrangements [20]. - Distributable cash flow is expected to be approximately $535 million, which will fund the anticipated annual dividend of $416 million ($2.00/share) [20]. - Capital expenditures for growth are estimated at $110 million for the Blackrod Connection Project in 2025 [20].