South Bow (SOBO) Q2 2026 earnings summary

Executive summary

• Secured 465,000 bbl/d of 20-year customer commitments, validating the corridor's value and market position.

• Achieved strong Q2 2026 results, driven by high demand for U.S. Gulf Coast pipeline capacity amid global crude trade disruptions.

• Advanced Prairie Connector and Liberty Bridge projects, focusing on stakeholder engagement, execution planning, and permitting for a mid-2027 FID.

• Maintained safe, reliable operations and strong asset integrity, with phased lifting of pressure restrictions expected through 2026-2027.

• Board leadership transitioned, with George Lewis appointed chair, supporting ongoing strategic execution.

Financial highlights

• Q2 2026 revenue was $546 million, net income $134 million ($0.64/share), and normalized EBITDA $280 million, up 9% sequentially.

• Increased full-year normalized EBITDA guidance to CAD 1.04 billion (range of +2%/-1%).

• Raised full-year distributable cash flow guidance to CAD 665 million (range of 2%).

• Quarterly dividend of CAD 0.50 per share approved, returning $104 million to shareholders.

• Distributable cash flow reached $175 million, up 4% from Q1 2026.

Outlook and guidance

• Targeting a final investment decision for Prairie Connector and Liberty Bridge in mid-2027.

• 2026 growth capital expenditures guidance increased to $80 million, including $65 million pre-FID costs for Prairie Connector and Liberty Bridge.

• Guidance reflects a modest second half, with upside potential from market events or record volumes.

• Q3 2026 normalized EBITDA expected to be ~10% lower than Q2 due to moderating demand.

• System designed for future expansion beyond 800,000 bbl/d, with low incremental build multiples.