Slide 1: Corporate Presentation
Corporate Presentation AUGUST 2025
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 FORT MCMURRAY Crude oil delivered safely and reliably
Slide 3: Q2 2025 Highlights
Q2 2025 Highlights Safely responded to Milepost 171 incident and commenced long-term system integrity activities FINANCIAL STABILITY MILEPOST 171 UPDATE $250 MM Delivered stable results due to strong Cleanup and reclamation of incident site complete Normalized EBITDA 1 commercial underpinnings C
Slide 4: Unrivalled Corridor
Unrivalled Corridor Safely and reliably delivering a premium service to customers South Bow Pipeline CONNECTS NORTH AMERICA'S STRONGEST South Bow Tank Terminal SUPPLY AND DEMAND MARKETS Peer Pipelines OFFERS COMPETITIVE TOLLS AND COMMERCIAL STRUCTURES PROVIDES MOST DIRECT PATH TO THE U.S. GULF COAST
Slide 5: 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% 96% of normalized EBITDA1 is of customers are refiners, of re
Slide 6: Enduring Market Fundamentals
Enduring Market Fundamentals South Bow's business is backstopped by a robust outlook for crude oil supply and demand for decades to come WCSB CRUDE OIL SUPPLY OUTLOOK1 WCSB Liquids Pipeline MMbbl/d ~5 MMbbl/d Liquids Tank Terminal 1 2024 Average Production 6.0 4.5 3.0 1.5 0.0 2024 2030 2050 PADD 2 P
Slide 7: Outlook for Western Canadian Egress
Outlook for Western Canadian Egress South Bow is well-positioned to maintain and capture additional market share given its strategic attributes WCSB CRUDE OIL PIPELINE CAPACITY OUTLOOK1 2 MMbbl/d 0.2 0.1 Supply Exceeds WCSB CRUDE OIL SUPPLY Pipeline Capacity EXPECTED TO EXCEED 0.0 Pipeline Capacity
Slide 8: Capital Allocation Priorities
Capital Allocation Priorities Disciplined approach to preserve optionality and maximize total shareholder return over the long term In addition to paying a sustainable base dividend, South Bow takes a risk-managed approach in allocating capital to: 1 2 3 4 REDUCE INVEST IN REPURCHASE GROW LEVERAGE S
Slide 9: South Bow Is a Differentiated Investment
South Bow Is a Differentiated Investment Total shareholder return can be delivered organically through a sustainable dividend and low-risk, profitable growth STRONG AND IRREPLICABLE ASSETS FINANCIAL STRENGTH SUSTAINABLE BASE WITH A COMPELLING AND INVESTMENT-GRADE DIVIDEND GROWTH PROFILE DEBT CAPITAL
Slide 10: Asset Overview
6p souTHBOw Asset Overview
Slide 11: 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 FORT MCMURRAY Mbbl/d Liquids Tank Terminal City 800 HARDISTY 600 CALGARY 400 603 582 595 626 578 200 0 2021 2022 2023 2024
Slide 12: 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 FORT MCMURRAY CAO Affected Segment Incident occurred at Milepost 171 near Fort Ransom, North Dakota CAO Accident Segment Liquids Tank Terminal PHMSA issue
Slide 13: U.S. Gulf Coast Segment
U.S. Gulf Coast Segment Provides a connection to the growing refining and export demand markets in the U.S. Gulf Coast Liquids Pipeline AVERAGE THROUGHPUT1 Liquids Tank Terminal Mbbl/d City 800 181 156 600 157 147 159 400 STEELE CITY 537 614 588 WOOD RIVER 200 428 378 PATOKA 0 2021 2022 2023 2024 20
Slide 14: U.S. Gulf Coast Connectivity
U.S. Gulf Coast Connectivity Enhancing connectivity to refining and terminalling facilities to serve growing demand for heavy crude oil PORT NECHES LINK P66 Beaumont Terminal Motiva Port Neches Terminal CITGO Sour Lake Terminal Valero Lucas Terminal Motiva Port Arthur Refinery Sunoco Nederland Termi
Slide 15: Intra-Alberta Pipeline Systems
Intra-Alberta Pipeline Systems Connecting Alberta's oil sands production to key refining and export markets AB SK REMAINING CONTRACT TERM1 years FORT MCMURRAY Grand Rapids White Spruce 14 16 18 20 OIL SANDS PRODUCTION OUTLOOK2 EDMONTON MMbbl/d ESTIMATED OIL SANDS RESERVES3 3.5 4.0 >160 billion barre
Slide 16: Blackrod Connection Project
Blackrod Connection Project Increasing connectivity in Alberta with current growth project AB SK Ready for in-service Early 2026 Capital cost $180 million FORT MCMURRAY EBITDA build multiple1 ~6x Connection from IPC's Blackrod SAGD project to South Bow's Grand Rapids Pipeline System 25-km crude
Slide 17: Financial Overview
6p souTHBOw Financial Overview
Slide 18: Investment-grade Financial Position
Investment-grade Financial Position Deleveraging profile de-risked by strong commercial underpinning, stable cash flows, and attractive growth outlook DEBT MATURITIES1 2 INVESTMENT-GRADE CREDIT RATINGS3 U.S.$ billions Moody's S&P Fitch Baa3 BBB- BBB- 1.6 Weighted average cost of long-term debt: 5.67
Slide 19: 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 20: 2025 Outlook
2025 Outlook Supported by highly contracted cash flows; range reflects expected impacts from Milepost 171 incident 2025 GUIDANCE1 NORMALIZED EBITDA $ millions Normalized EBITDA2 $1,010 MM +1%/-2% 1,091 Interest expense $325 MM +/-2% Effective tax rate 23% - 24% Distributable cash flow2 $590 MM +/-3%
Slide 21: Appendix
6p souTHBOw Appendix
Slide 22: Q2 2025 Results
Q2 2025 Results Three Months Ended Six Months Ended March 31, June 30, June 30, June 30, June 30, $ millions, except where noted 2025 2025 2024 2025 2024 FINANCIAL RESULTS Normalized EBITDA1 266 250 241 516 539 Keystone Pipeline System 235 234 243 469 520 Marketing 16 (1) (13) 15 (4) Intra-Alberta &
Slide 23: Advisory Statements
6p souTHBOw Advisory Statements
Slide 24: 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 25: Advisory Statements
Advisory Statements BASIS OF PREPARATION All financial figures and information have been presented in U.S. dollars (which includes references to "dollars" and "quot;), except where another currency has been indicated. ADVISORY – CREDIT RATINGS Credit ratings are intended to provide investors with an in
Slide 26: Financial Reconciliations
6p souTHBOw Financial Reconciliations
Slide 27: 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 28: 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 retu
Slide 29: 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 30: 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 30
Slide 31: Delivering Energy. Forging Progress. Together.
DELIVERING ENERGY. FORGING PROGRESS. TOGETHER.