Q2 2026 South Bow Corp Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Transcript

Key Points

Positve

Secured 465,000 barrels per day of 20-year customer commitments, demonstrating strong market endorsement and long-term revenue visibility.
Raised full-year 2026 normalized EBITDA guidance to $1.04 billion and distributable cash flow guidance to $665 million, reflecting strong operational performance.
Improved leverage ratio to 4.4 times net debt to normalized EBITDA, strengthening the balance sheet and supporting future growth investments.
Established new throughput records on the US Gulf Coast segment of the Keystone Pipeline, capitalizing on increased demand for market access.
Advanced growth portfolio with Prairie Connector and Liberty Bridge projects, targeting FID by mid-2027, leveraging pre-invested corridors for cost-efficient expansion.

Negative

Pressure restrictions from the milepost 171 incident remain, with phased lifting expected only through end of 2026 and into 2027, limiting full operational capacity.
Permit durability remains a key uncertainty, with no final assurance yet, posing a risk to the FID timeline and project execution.
Second-half 2026 outlook is tempered by low inventory levels at Hardesty and Cushing, potentially limiting upside despite strong first-half performance.
Growth capital expenditures increased to support development activities, adding financial commitments before FID and potentially impacting near-term cash flows.
The compressed timeline from mid-2027 FID to year-end 2028 in-service for Prairie Connector and Liberty Bridge leaves limited contingency for construction delays.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SOBO.TO - South Bow Corporation
Q2 2026 South Bow Corp Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by. Welcome to South Bow Q2 2026 Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your first speaker today Martha Wilmot. Please go ahead.

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Unidentified_2 [2]
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