South Bow Corp · TSX:SOBO
South Bow — Investor Presentation (March 2026)
36 slides from South Bow's investor presentation, March 2026
Slide 1: Corporate Presentation March 2026
CORPORATE PRESENTATION March 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: 2025 Highlights
2025 Highlights Delivered solid financial performance while advancing South Bow's strategic objectives FINANCIAL STABILITY BLACKROD CONNECTION PROJECT $1,022 MM Slightly above guidance, supported by highly contracted cash flow and strong commercial Normalized EBITDA1 framework Successfully complet
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 2025 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 is secure and strongly positioned to capture additional U.S. refining market share U.S. CRUDE OIL REFINING OUTLOOK1 2025E PADDs 2 & 3 HEAVY CRUDE OIL SOURCES1 MMbbl/d % 20 All PADDs 100 PADDs 2 & 3 Rest of World >700 MMbbl/d 15
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 MMbbl/d >1 MMbbl/d supply growth potential 6 Potential Supply Growth 2 Supply Available for Export Potential Pip
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
6 souTHBow 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 Liquids Pipeline Mbbl/d Liquids Tank Terminal City 800 600 400 603 582 595 626 584 200 0 2021 2022 2023 2024 2025 HARDISTY SYSTEM OPERATING F
Slide 15: Keystone Pipeline – Milepost 171
Keystone Pipeline – 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 Correctiv
Slide 16: Keystone Pipeline – U.S. Gulf Coast Segment
Keystone Pipeline – U.S. Gulf Coast Segment Provides a connection to the growing refining and export demand markets in the U.S. Gulf Coast AVERAGE THROUGHPUT Mbbl/d CUSHING 800 OK 181 600 157 155 147 159 400 537 614 563 200 428 378 0 2021 2022 2023 2024 2025 Keystone Marketlink1 2 TX HOUSTON PORT AR
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: Financial Overview
6 souTHBow Financial Overview
Slide 21: 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: 5.67
Slide 22: 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 23: 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% 1,022 Normalized EBITDA3 ~15 ~15 Financial charges 4 $315 MM ± 2% Effective tax rate 22% - 23% 2025A Keystone Marke
Slide 24: 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 EBITDA1 Minimal Impact Normalized EBITDA1 Modest Increase Pressure Restrictions Lifted over the Distributable Cash Flow1
Slide 25: Appendix
6 souTHBow Appendix
Slide 26: Q4 & Year-end 2025 Results
Q4 & Year-end 2025 Results Three Months Ended Year Ended Sept. 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, $ millions, except where noted 2025 2025 2024 2025 2024 FINANCIAL RESULTS Normalized EBITDA1 254 252 290 1,022 1,091 Keystone Pipeline System 260 241 250 970 1,028 Marketing (17) (8) 24 (10) 12 Int
Slide 27: Advisory Statements
6 souTHBow Advisory Statements
Slide 28: 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 29: 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 30: 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 31: Financial Reconciliations
6 souTHBow Financial Reconciliations
Slide 32: 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 33: 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 34: 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 35: 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 35
Slide 36: Delivering Energy. Forging Progress. Together.
DELIVERING ENERGY. FORGING PROGRESS. TOGETHER.