South Bow Corp · TSX:SOBO
South Bow — Investor Day (November 2025)
49 slides from South Bow's investor day presentation, Nov 19, 2025
Slide 1: Investor Day
Investor Day NOVEMBER 19, 2025
Slide 2: Agenda
Agenda CONVERSATION WITH MANAGEMENT Bevin Wirzba President & Chief Executive Officer Van Dafoe Senior Vice-President & Chief Financial Officer Richard Prior Senior Vice-President & Chief Operating Officer Q&A SESSION BREAKOUT SESSIONS Asset Integrity & Safe Operations Gary Salsman Vice President, Sa
Slide 3: Introduction
69 souTHBOW Introduction
Slide 4: Establishing South Bow as an Independent Company
Establishing South Bow as an Independent Company South Bow delivered on all milestones to successfully execute the spinoff transaction JULY 27 DECEMBER 15 APRIL 10 JUNE 4 AUGUST 28 OCTOBER 1 2023 2023 2024 2024 2024 2024 TC Energy announces South Bow TC Energy files TC Energy's South Bow completes S
Slide 5: 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 4,900 km 1.25 MMbbl/d Liquids Pipeline Liquids Tank Terminal City pipeline crude oil delivered footprint safely and reliably 90 % 4.7 x FORT MCMURRAY 2025F norma
Slide 6: South Bow Has Delivered on Its First-year Commitments
South Bow Has 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 Assembled a high- Advanced the Blackrod Achieved strong 31% S&P/TSX c
Slide 7: South Bow's Values in Action
South Bow's Values in Action Values-based culture is guiding strategic decision-making and long-term value creation WE ARE WE DO THE WE TAKE PRIDE WE WIN SAFE RIGHT THING IN WHAT WE DO AS A TEAM 6
Slide 8: 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 9: Strategic Overview
69 souTHBOW Strategic Overview
Slide 10: Operational and Portfolio Attributes
Operational and Portfolio Attributes Building a resilient energy infrastructure company with a scalable, competitive, and diversified portfolio INITIAL STATE TARGETED STATE OPERATIONAL Safety Focus on Lagging Indicators Focus on Leading Indicators Asset Integrity Second-quartile Industry-leading Sys
Slide 11: Financial and Capital Markets Attributes
Financial and Capital Markets Attributes Building a resilient energy infrastructure company with financial strength, scale, and attractive shareholder returns INITIAL STATE TARGETED STATE FINANCIAL Net Debt-to-normalized EBITDA Ratio1 2 5x 4x Normalized EBITDA1 Growth Rate 2% to 3% 2% to 3% + Strate
Slide 12: Capital Allocation Overview
Capital Allocation Overview
Slide 13: 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 14: South Bow Can Self-fund Its Base Value Proposition
South Bow Can Self-fund Its Base Value Proposition South Bow can deliver on its capital allocation priorities without the need for outside capital 2025 FUNDING MODEL 2026 FUNDING MODEL $ billions $ billions 1.2 1.2 0.9 0.9 0.6 Debt Reduction 0.6 Normalized Debt Reduction & Normalized EBITDA1 Growth
Slide 15: South Bow Pays a Sustainable Dividend
South Bow Pays a Sustainable Dividend South Bow's stable cash flows underpin a sustainable base dividend with an attractive yield 2026E DIVIDEND PAYOUT RATIO1 2 3 SOUTH BOW'S DIVIDEND PAYOUT RATIO3 % % 200 Canadian Midstream 200 U.S. Midstream 150 150 100 100 50 50 0 0 Initial Current Target Initial
Slide 16: South Bow Is Strengthening Its Financial Position
South Bow Is Strengthening Its Financial Position Deleveraging profile de-risked by strong commercial underpinning, stable cash flows, and attractive growth outlook 2026E NET DEBT-TO-2026E EBITDA1 2 3 SOUTH BOW'S NET DEBT-TO-NORMALIZED EBITDA3 4 x x 5 Canadian Midstream 5 U.S. Midstream 4 4 3 3 2 2
Slide 17: Asset Integrity Overview
69 souTHBOW Asset Integrity Overview
Slide 18: South Bow Is Prioritizing the Integrity of Its Assets
South Bow Is Prioritizing the Integrity of Its Assets South Bow's goal is to be an industry leader in asset integrity APPROACH TO ASSET INTEGRITY ACCIDENTS PER THOUSAND MILES1 2 10-year average 1.2 Take a proactive approach to integrity and risk management 0.9 0.6 Group Average: 0.40 0.3 0.0 Targete
Slide 19: Initial Findings from Milepost 171
Initial Findings from Milepost 171 South Bow is incorporating findings into its remedial work plan and integrity programs INITIAL FINDINGS Liquids Pipeline CAO Affected Pipeline2 CAO Accident Segment2 Liquids Tank Terminal Both pipe and welds conformed to industry standards for design, materials,
Slide 20: South Bow's Response to Milepost 171
South Bow's Response to Milepost 171 South Bow's comprehensive integrity program will ensure the long-term safety and integrity of its assets MILEPOST 171 REMEDIAL ACTIONS MILEPOST 171 REMEDIAL WORK1 To improve the probability of feature detection: Completed Conducting additional in-line inspectio
Slide 21: Market Outlook
69 souTHBOW Market Outlook
Slide 22: 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 2025 2035 2050 Estimated Reser
Slide 23: Demand for Canadian Heavy Crude Oil Is Enduring
Demand for Canadian Heavy Crude Oil Is Enduring Canadian heavy crude oil is strongly positioned to capture additional U.S. refining market share U.S. CRUDE OIL REFINING OUTLOOK1 2025E PADDs 2 & 3 HEAVY CRUDE OIL SOURCES2 MMbbl/d % 20 All PADDs 100 PADDs 2 & 3 >700 MMbbl/d Rest of World Venezuela Can
Slide 24: 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 MMbbl/d 6 Potential Supply Growth Supply Available for Export >1 MMbbl/d supply growth potential 2 Potential Pip
Slide 25: South Bow's Corridor Is Unrivalled and Preferred
South Bow's Corridor Is Unrivalled and Preferred 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 tol
Slide 26: Growth Outlook
69 souTHBOW Growth Outlook
Slide 27: South Bow Is Maturing and Executing Its Growth Portfolio
South Bow Is Maturing and Executing Its Growth Portfolio South Bow is evaluating several opportunities to deliver on its strategic portfolio objectives Liquids Pipeline Liquids Tank Terminal City SCREENING / MATURING Organic & Inorganic Organic Opportunities Opportunities ~20 ~$4 B FORT MCMURRAY BLA
Slide 28: Blackrod Connection Project
Blackrod Connection Project Demonstrating safety and project execution excellence with South Bow's first major growth project PROJECT OVERVIEW Liquids Pipeline Blackrod Connection Project Liquids Tank Terminal IPC Blackrod Connecting IPC's Blackrod SAGD project to South Bow's Grand Rapids Pipeline S
Slide 29: Intra-Alberta Growth Potential
Intra-Alberta Growth Potential South Bow is well-positioned to capitalize on potential oil sands supply growth South Bow Pipeline South Bow Tank Terminal WHITE SPRUCE Operating Oil Sands Project PIPELINE Announced Oil Sands Project Peer Pipeline BLACKROD CONNECTION PROJECT GRAND RAPIDS PIPELINE SOUT
Slide 30: 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 31: Evaluating Strategic Inorganic Opportunities
Evaluating Strategic Inorganic Opportunities South Bow will exercise discipline in evaluating inorganic opportunities Possesses similar risk profile and passes Adheres to capital allocation priorities 'logic' test Leverages existing corridors, competitive Delivers accretion on per-share metrics adva
Slide 32: Financing South Bow's Growth Portfolio
Financing South Bow's Growth Portfolio South Bow will finance larger-scaled growth with an optimized capital structure FINANCING OPTIONS FINANCING CRITERIA Adheres to capital allocation priorities CASH Lower Cost of Capital Protects dividend sustainability Preserves investment-grade credit rat
Slide 33: 2026 Outlook
69 souTHBOW 2026 Outlook
Slide 34: 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 35: 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 1,030 ~10 + 2% / -2% $1,030 MM ± 2% 1,010 ~25 Normalized EBITDA3 + 1% / -2% Financial charges4 $315 MM ± 2% ~(15) Effective tax rate 22% - 23% 2025F Ke
Slide 36: 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 $1.03B + 2% Normalized EBITDA Minimal Impact Normalized EBITDA Modest Increase Pressure Restrictions Lifted over the Distributable Cash Flow Min
Slide 37: Closing Remarks
69 souTHBOW Closing Remarks
Slide 38: 2025 Investor Day Takeaways
2025 Investor Day Takeaways 1 South Bow is prioritizing safe operations and the integrity of its assets South Bow is leveraging an irreplicable corridor to drive growth 2 and competitive differentiation South Bow is executing a portfolio strategy that focuses on scale, 3 diversification, and financi
Slide 39: Why Invest in South Bow?
Why Invest in South Bow? 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 STRUCTURE South
Slide 40: Advisory Statements
69 souTHBOW Advisory Statements
Slide 41: Advisory Statements
Advisory Statements FORWARD-LOOKING INFORMATION 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 applicable securities l
Slide 42: Advisory Statements
Advisory Statements FORWARD-LOOKING INFORMATION (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 2025 and 2026 normaliz
Slide 43: 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 44: Financial Reconciliations
69 souTHBOW Financial Reconciliations
Slide 45: 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 46: 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 47: 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 48: 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 Investor Relations Analyst investor.relations@southbow.com 48
Slide 49: Delivering Energy. Forging Progress. Together.
DELIVERING ENERGY. FORGING PROGRESS. TOGETHER.