South Bow (SOBO) investor relations material

Executive summary

• Delivered strong Q1 2026 operational performance with Keystone Pipeline throughput averaging 616,000 barrels per day and a 95% system operating factor, despite geopolitical and market uncertainty.

• Blackrod Connection Project entered commercial service on time and on budget, expected to add $10 million in normalized EBITDA in 2026.

• Advanced strategic priorities, including continued Keystone Pipeline integrity work and closing bids for Prairie Connector open season.

• Remedial actions for the MP-171 incident progressed, with 11 in-line inspections and 76 integrity digs completed.

• Focused on safe, reliable operations and disciplined capital allocation.

Financial highlights

• Q1 2026 revenue was $491 million, net income $77 million ($0.37/share), normalized EBITDA $257 million, and distributable cash flow $168 million, with EBITDA up $5 million from Q4 2025.

• Distributable cash flow rose by $19 million from Q4 2025, primarily due to lower current taxes.

• Quarterly dividend of $0.50 per share approved, payable July 15, 2026.

• Total long-term debt stood at $5.8 billion and net debt at $4.7 billion as of March 31, 2026.

• Net debt-to-normalized EBITDA ratio was 4.7x, unchanged from December 31.

Outlook and guidance

• Reaffirmed full-year 2026 normalized EBITDA outlook of $1.03 billion within a 2% range, with 90% secured through committed arrangements.

• Distributable cash flow outlook for 2026 maintained at $655 million.

• Q2 2026 normalized EBITDA expected to be slightly higher than Q1 due to elevated U.S. Gulf Coast demand.

• Blackrod cash flows expected to ramp up in H2 2026, modestly improving leverage.

• Growth capital expenditure outlook to be updated upon sanctioning the next development project.