South Bow (SOBO) Corporate presentation summary

Strategic positioning and operational highlights

• Operates a 4,900 km liquids pipeline network with 1.25 MMbbl/d delivery and 7.7 MMbbl storage capacity.

• Connects resilient Canadian supply to major U.S. demand centers, especially the Gulf Coast.

• Maintains a highly contracted cash flow base, with ~90% of 2026 normalized EBITDA secured by long-term contracts.

• Over 95% of customers are investment-grade refiners, integrated companies, and producers.

• Strategic corridor offers competitive tolls, direct U.S. Gulf Coast access, and flexible delivery options.

Financial performance and stability

• Achieved Q2 2026 normalized EBITDA of $280M and distributable cash flow of $175M.

• Net debt-to-normalized EBITDA ratio improved to 4.4x, with a target of 4x over the medium term.

• 2026 guidance: normalized EBITDA of $1,040M (+2%/-1%) and distributable cash flow of $665M (±2%).

• Maintains investment-grade credit ratings (Moody's Baa3, S&P BBB-, Fitch BBB-).

• Pays a sustainable base dividend of $2.00/share annually (~5.5% yield), with potential for growth.

Growth initiatives and project execution

• Secured 20-year binding commitments for 465,000 bbl/d of firm transportation from Hardisty to U.S. points.

• Advancing Prairie Connector (530 km pipeline from Hardisty to U.S. border) and Liberty Bridge (Guernsey to Cushing) projects.

• Completed Blackrod Connection Project on time and on budget, connecting new oil sands supply.

• Outperformed peers with a 38% total return since spinoff.

• Expects WCSB supply to exceed pipeline egress by mid-2027, supporting need for new projects.