South Bow Corp · TSX:SOBO
South Bow — Q2 2026 Earnings Presentation
38 slides from South Bow's earnings presentation, Aug 6, 2026
Slide 1: Corporate Presentation
CORPORATE PRESENTATION August 2026
Slide 2: South Bow at a Glance
South Bow at a Glance A strategic liquids pipelines franchise connecting resilient supply to the strongest demand markets in North America OPERATIONAL HIGHLIGHTS Liquids Pipeline Liquids Tank Terminal 4,900 km Pipeline footprint City 1.25 MMbbl/d Crude oil delivered safely and reliably 7.7 MMbbl Ter
Slide 3: Q2 2026 Highlights
Q2 2026 Highlights Delivered strong financial and operational performance while advancing strategic growth initiatives FINANCIAL STABILITY GROWTH INITIATIVES $280 MM Strong demand on the U.S. Gulf Coast segment of the Keystone Pipeline System Normalized EBITDA1 Secured 20-year binding commitments
Slide 4: South Bow Delivered on Its First-year Commitments
South Bow Delivered on Its First-year Commitments Demonstrating wide range of capabilities has been critical to South Bow's success ORGANIZATIONAL PROJECT CAPITAL MARKETS TOTAL CAPABILITIES EXECUTION PERFORMANCE RETURNS1 38% Assembled a high- Advanced the Blackrod Achieved strong S&P/TSX calib
Slide 5: South Bow's 2026 Priorities
South Bow's 2026 Priorities Focus is on maintaining safe operations, maturing and executing growth portfolio, and enhancing competitiveness SAFE GROWTH BUSINESS FINANCIAL OPERATIONS PORTFOLIO COMPETITIVENESS DISCIPLINE Maintain safe Mature and execute Continue to optimize Adhere to capital o
Slide 6: South Bow's Corridor Is Unrivalled
South Bow's Corridor Is Unrivalled Assets are strategically positioned to effectively serve customers' needs SOUTH BOW'S STRATEGIC ATTRIBUTES South Bow Pipeline South Bow Tank Terminal Peer Pipeline Connects North America's strongest supply and demand markets Offers competitive tolls and commerc
Slide 7: High-quality Contractual Framework
High-quality Contractual Framework Stable, predictable cash flows underpinned by strong contract tenor and creditworthy counterparties HIGHLY CONTRACTED STRONG STRUCTURAL CREDITWORTHY CASH FLOWS DEMAND FOR SERVICES CUSTOMER BASE ~90% >95% >90% of 2026F normalized of customers are refiners, of annual
Slide 8: Canadian Heavy Crude Oil Supply Is Resilient
Canadian Heavy Crude Oil Supply Is Resilient Canada is a global leader and North America's backbone in heavy crude oil supply WCSB CRUDE OIL SUPPLY OUTLOOK1 Liquids Pipeline Liquids Tank Terminal MMbbl/d 8 6 Light & Medium Crude Oil 4 2 Heavy Crude Oil 0 WCSB >160 Bbbl 2026 2035 2050 Estimated Reser
Slide 9: Demand for Canadian Heavy Crude Oil Is Enduring
Demand for Canadian Heavy Crude Oil Is Enduring Canadian heavy crude oil supply is secure and strongly positioned to capture additional U.S. refining market share U.S. CRUDE OIL REFINING OUTLOOK1 2026E PADDs 2 & 3 HEAVY CRUDE OIL SOURCES1 MMbbl/d % 20 All PADDs 100 PADDs 2 & 3 Rest of World 15 75 >1
Slide 10: Increasing Demand for Western Canadian Egress
Increasing Demand for Western Canadian Egress WCSB will require additional pipeline egress, and South Bow is well positioned to compete WCSB CRUDE OIL SUPPLY AND PIPELINE CAPACITY OUTLOOK1 2 SUPPLY-EGRESS BALANCE OUTLOOK1 2 MMbbl/d MMbbl/d 1.2 6 Potential Supply Growth 0.8 Supply Available for Expor
Slide 11: South Bow's Capital Allocation Priorities
South Bow's Capital Allocation Priorities Taking a disciplined approach to preserve optionality and maximize total shareholder return over the long term 1 2 3 4 PAY A SUSTAINABLE STRENGTHEN FINANCIAL INVEST IN STRATEGIC INCREASE RETURNS TO BASE DIVIDEND POSITION CORRIDOR AND SHAREHOLDERS GROW PER-SH
Slide 12: South Bow Is a Differentiated Investment
South Bow Is a Differentiated Investment Strong and sustainable dividend, combined with profitable growth, offers an attractive total return for shareholders STRONG AND IRREPLICABLE ASSETS FINANCIAL STRENGTH SUSTAINABLE BASE WITH A COMPELLING AND INVESTMENT-GRADE DIVIDEND GROWTH PROFILE DEBT CAPITAL
Slide 13: Asset Overview
ASSET OVERVIEW
Slide 14: Keystone Pipeline System
Keystone Pipeline System Spanning 4,300 kilometres, system safely transports liquids across three Canadian provinces and eight U.S. states AVERAGE THROUGHPUT1 2 Liquids Pipeline Mbbl/d Liquids Tank Terminal City 800 600 400 582 595 626 584 606 200 0 2022 2023 2024 2025 2026 YTD HARDISTY SYSTEM OPERA
Slide 15: Keystone Pipeline System – Milepost 171
Keystone Pipeline System – Milepost 171 South Bow is committed to the long-term safety and reliability of its assets THINGS TO KNOW Liquids Pipeline CAO Affected Pipeline Incident occurred at Milepost 171 near Fort Ransom, North Dakota CAO Accident Segment Liquids Tank Terminal PHMSA issued a Co
Slide 16: Keystone Pipeline System – U.S. Gulf Coast Segment
Keystone Pipeline System – U.S. Gulf Coast Segment Provides a connection to the growing refining and export demand markets in the U.S. Gulf Coast AVERAGE THROUGHPUT1 Mbbl/d CUSHING 800 OK 181 165 600 157 155 400 159 537 614 563 590 200 378 0 2022 2023 2024 2025 2026 YTD Keystone Marketlink2 3 TX HOU
Slide 17: U.S. Gulf Coast Connectivity Potential
U.S. Gulf Coast Connectivity Potential Enhancing connectivity to refining, terminalling, and export facilities to serve growing demand for heavy crude oil HOUSTON, TEXAS PORT ARTHUR, TEXAS South Bow Pipeline South Bow Tank Terminal Peer Pipeline SOUTH BOW HOUSTON TANK TERMINAL CONNECTION TO PORT ART
Slide 18: Intra-Alberta Pipeline Systems
Intra-Alberta Pipeline Systems South Bow is well positioned to capitalize on potential oil sands supply growth REMAINING CONTRACT TERM1 years WHITE SPRUCE PIPELINE Blackrod Blackrod Connection Connection Project Project Grand Grand Rapids Rapids Pipeline White White Spruce Spruce BLACKROD CONNECTION
Slide 19: Blackrod Connection Project
Blackrod Connection Project Demonstrated project execution excellence with South Bow's first major growth project PROJECT OVERVIEW Connects IPC's Blackrod SAGD project to South Bow's Grand Rapids Pipeline System 25-km crude oil and natural gas pipelines and associated facilities Placed into serv
Slide 20: Proposed Growth Initiatives
Proposed Growth Initiatives Advancing toward FID while strictly adhering to risk preferences and capital allocation priorities COMMERCIAL SUPPORT1 PRE-FID ACTIVITIES Secured 20-year binding commitments for firm Final investment decision (FID) on the proposed Prairie Connector transportation service
Slide 21: Proposed Growth Initiatives
Proposed Growth Initiatives Advancing toward FID while strictly adhering to risk preferences and capital allocation priorities PRAIRIE CONNECTOR PROJECT LIBERTY BRIDGE PIPELINE PROJECT Proposed 530-km, 36-inch crude oil pipeline extending Proposed joint development of a crude oil pipeline from Hardi
Slide 22: Financial Overview
FINANCIAL OVERVIEW
Slide 23: Investment-grade Financial Position
Investment-grade Financial Position Deleveraging profile de-risked by strong commercial underpinning, stable cash flows, and attractive growth outlook DEBT MATURITIES1 2 INVESTMENT-GRADE CREDIT RATINGS3 U.S.$ billions Moody's S&P Fitch Baa3 BBB- BBB- 1.6 Weighted average cost of long-term debt: 5.68
Slide 24: Sustainable Dividend
Sustainable Dividend South Bow's stable cash flows underpin a sustainable base dividend with an attractive yield DIVIDEND PHILOSOPHY SOUTH BOW'S CURRENT DIVIDEND Dividends will be the primary means of returning capital to $0.50 shareholders Dividend stability and sustainability is of foremost im
Slide 25: South Bow's 2026 Guidance
South Bow's 2026 Guidance Financial outlook is underpinned by highly contracted and stable cash flows 2026 GUIDANCE1 2 NORMALIZED EBITDA3 $ millions 1,040 ~20 ~5 + 2% / -1% $1,040 MM +2% /-1% 1,022 Normalized EBITDA3 ~5 Financial charges4 $315 MM ± 2% Effective tax rate 22% - 23% 2025A Keystone Mark
Slide 26: 2026 Expected Range of Outcomes
2026 Expected Range of Outcomes Financial outlook may be modestly impacted by changes in pressure restrictions and pricing differentials Normalized EBITDA1 2 $1.04B + 2% Normalized EBITDA1 Minimal Impact Normalized EBITDA1 Modest Increase Pressure Restrictions Lifted over the Distributable Cash Flow
Slide 27: Appendix
APPENDIX
Slide 28: Q2 2026 Results
Q2 2026 Results Three Months Ended Six Months Ended $ millions, except where noted March 31, 2026 June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 FINANCIAL RESULTS 1 Normalized EBITDA 257 280 250 537 516 Keystone Pipeline System 233 259 234 492 469 Marketing 9 2 (1) 11 15 Intra-Alberta & Oth
Slide 29: Advisory Statements
ADVISORY STATEMENTS
Slide 30: Advisory Statements
Advisory Statements FORWARD-LOOKING INFORMATION AND STATEMENTS This presentation contains certain forward-looking statements and forward-looking information (collectively, forward-looking statements), including forward-looking statements within the meaning of the "safe harbor" provisions of applicab
Slide 31: Advisory Statements
Advisory Statements FORWARD-LOOKING INFORMATION AND STATEMENTS (CONTINUED) The forward-looking information in this presentation also includes financial outlooks and other related forward-looking information. Management approved the financial outlooks contained in this presentation, including 2026 no
Slide 32: Advisory Statements
Advisory Statements SPECIFIED FINANCIAL MEASURES In this presentation, South Bow references certain non-GAAP financial measures and non-GAAP ratios that do not have standardized meanings under GAAP and may not be comparable to similar measures presented by other entities. These non-GAAP financial me
Slide 33: Financial Reconciliations
FINANCIAL RECONCILIATIONS
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations NORMALIZED EBITDA Normalized EBITDA and segment normalized EBITDA are used as measures of earnings from ongoing operations. Management uses these measures to monitor and evaluate the financial performance of the Company's operations and to identify and evaluate trends. These
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations DISTRIBUTABLE CASH FLOW Distributable cash flow is used to assess the cash generated through business operations that can be used for South Bow's capital allocation decisions, helping investors understand the Company's cash-generating capabilities and its potential for retur
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations NET DEBT AND NET DEBT-TO-NORMALIZED EBITDA RATIO Net debt is used as a key leverage measure to assess and monitor South Bow's financing structure, providing an overview of the Company's long-term debt obligations, net of cash and cash equivalents. Management believes this me
Slide 37: Contact Information
Contact Information SOUTH BOW CORPORATION 707 - 5 Street SW Calgary, AB Canada T2P 1V8 www.southbow.com INVESTOR RELATIONS Martha Wilmot Director, Investor Relations Ben Pike Senior Investor Relations Analyst investor.relations@southbow.com 37
Slide 38: Delivering Energy. Forging Progress. Together.
DELIVERING ENERGY. FORGING PROGRESS. TOGETHER.