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]
South Bow (NYSE:SOBO) 2025 Investor Day Transcript