Here are 1-2 brief analogies for South Bow (SOBO):

• It's like Enbridge for North American energy delivery, but with an unwavering commitment to ethical conduct and environmental protection.
• Think of a company like Kinder Morgan, focused on North American energy infrastructure, but built from the ground up on principles of integrity, community trust, and environmental stewardship.

• Energy Delivery Services: South Bow safely and reliably delivers critical energy supplies for its North American customers.

South Bow (symbol: SOBO) is an energy infrastructure company primarily involved in the safe and reliable transportation and storage of crude oil and other liquid hydrocarbons, predominantly through extensive pipeline systems across North America. As such, it sells its services primarily to other companies (B2B), rather than directly to individual consumers.

While specific customer names are typically not publicly disclosed due to the confidential nature of commercial agreements, South Bow's major customers fall into the following categories within the North American energy sector:

• Crude Oil Producers and Upstream Companies: These are companies engaged in the exploration, development, and production of crude oil. They utilize South Bow's pipelines to transport their extracted crude from production basins (e.g., Western Canada) to market hubs, storage facilities, or refineries.
• Refining and Downstream Companies: These companies own and operate oil refineries that process crude oil into various petroleum products (such as gasoline, diesel, and jet fuel). They rely on South Bow's infrastructure to reliably receive large volumes of crude oil feedstock for their operations, often connecting to refining centers in the U.S. Midwest and Gulf Coast.
• Oil Marketers and Traders: These entities specialize in the buying, selling, and logistical movement of large volumes of crude oil and other liquid hydrocarbons. They use South Bow's pipeline network for efficient transportation and delivery as part of their trading, supply chain management, and arbitrage strategies.

Bevin Wirzba President and Chief Executive Officer

Bevin Wirzba leads South Bow as President and Chief Executive Officer, overseeing a team of over 600 professionals. Prior to South Bow, he served as Executive Vice-President at TransCanada PipeLines Limited until 2024. His extensive career also includes roles as Senior Vice-President, Business Development and Capital Markets at ARC Resources Ltd., Managing Director at RBC Dominion Securities, and various multidisciplinary positions with Chevron Corp. He holds a Bachelor of Science in Civil Engineering and an MBA.

Van R. Dafoe Senior Vice-President and Chief Financial Officer

Van R. Dafoe brings over 30 years of energy industry experience to his role as Senior Vice-President and Chief Financial Officer, where he is responsible for finance, accounting, tax, risk management, capital markets, and information technology. Previously, he was Senior Vice-President and Chief Financial Officer at ARC Resources Ltd. He holds a Bachelor of Commerce (Honours) Degree and is a Chartered Professional Accountant.

Richard J. Prior Senior Vice President & Chief Operating Officer

Richard J. Prior is the Senior Vice President and Chief Operating Officer, and is also referred to as Executive Vice President & President, Liquids Pipelines. He emphasizes safety as a core principle, with over 2.5 million work hours under his oversight across various projects, including the Blackrod Connection Project, completed with zero recordable safety incidents.

Lori M. Muratta Senior Vice-President & General Counsel

Lori M. Muratta serves as the Senior Vice-President and General Counsel for South Bow.

Martha Wilmot Director of Investor Relations

Martha Wilmot is the Director of Investor Relations, actively participating in the company's earnings calls.

The public company South Bow (SOBO), an energy infrastructure company focused on safely and reliably delivering critical energy supplies across North America, faces several key business risks. These risks include significant financial leverage, ongoing operational constraints and regulatory scrutiny related to pipeline incidents, and broader geopolitical and regulatory challenges affecting its operations and growth prospects.

Key Risks to South Bow (SOBO)

1. High Financial Leverage and Debt Burden: South Bow is exposed to considerable financial risk due to its high debt-to-equity ratio of 2.19 and a low interest coverage ratio of 2.06, which is below the preferred level for financial stability. Analysts have noted that the company's liabilities, when compared to its cash and near-term receivables, exceed its market capitalization, and its net debt to EBITDA ratio stands at a high 5.8. Furthermore, its Altman Z-Score of 0.86 places the company in a "distress zone," indicating a potential bankruptcy risk within two years. Debt repayment is a top capital allocation priority for the company, and its dividend coverage has been flagged as not well supported by earnings.
2. Operational Constraints and Regulatory Scrutiny: The company faces ongoing operational risks, particularly concerning its Keystone Pipeline System. Following the Milepost 171 (MP-171) incident in April 2025, which involved an oil spill caused by a fatigue crack in a weld, regulators imposed operating pressure restrictions. These restrictions limit the pipeline's capacity to transport uncommitted or spot volumes, thereby impacting potential revenue. The Keystone system has a history of leaks, making its stability a continuous concern for investors and subjecting South Bow to heightened regulatory oversight and corrective action orders.
3. Geopolitical and Regulatory Challenges: South Bow operates within a complex geopolitical and regulatory landscape in North America. The company's projects, such as a potential revival of Keystone XL segments, are subject to significant regulatory and political approval risks on both sides of the Canada-U.S. border, which could lead to delays or reshaping of initiatives. Broader policy, trade, and environmental discussions add to the complexity and timing risks for its infrastructure projects. Additionally, geopolitical uncertainty and tariffs on energy exports have led to volatility in crude oil pricing differentials, potentially impacting South Bow's marketing segment and its uncommitted pipeline capacity.

The accelerating global transition to renewable energy sources and decarbonization efforts, which could lead to reduced long-term demand for traditional critical energy supplies.

The public company South Bow (SOBO) primarily operates as an energy infrastructure company, focusing on the transportation of crude oil through its pipeline systems across North America, including the Keystone Pipeline System. They also offer crude oil marketing services, which encompass transportation, storage, and logistics, along with ancillary terminal storage services.

The addressable market for South Bow's main products and services, primarily crude oil pipeline transportation and related logistics in North America, can be represented by the North America Oil & Gas Pipeline Market.

The North America Oil & Gas Pipeline Market was valued at approximately USD 6.52 billion in 2022 and is projected to grow to USD 9.88 billion by 2028, exhibiting a Compound Annual Growth Rate (CAGR) of 7.01% during that period. North America held a significant 40.0% share of the global Oil & Gas Pipeline Market in 2024.

Expected Drivers of Future Revenue Growth for South Bow (SOBO) over the Next 2-3 Years:

• Blackrod Connection Project: The Blackrod Connection Project, which entered commercial service in the first quarter of 2026, is expected to be a direct contributor to revenue growth. It is projected to add approximately $10 million in normalized EBITDA in 2026, with cash flows continuing to grow into 2027.
• Marketing Segment Recovery and Growth: South Bow anticipates a recovery and increased contribution from its marketing segment. Normalized EBITDA for this segment is expected to be approximately $15 million higher in 2026 compared to 2025, reflecting a rebound from prior losses.
• Keystone Pipeline System Normalization: The phased lifting of pressure restrictions related to the Milepost 171 incident on the Keystone Pipeline System is expected to drive revenue growth. Remedial actions have been completed, and management anticipates the Corrective Action Order could be lifted by the end of 2026, allowing the pipeline to return to baseline operations and potentially increase throughput.
• Strategic Corridor Expansion: South Bow is focused on strengthening and expanding its strategic pipeline corridor to enhance competitive connections and offer greater optionality to customers in North America. This includes pursuing both organic and inorganic growth opportunities to further extend its reach and service capabilities.

Share Issuance

• South Bow issued $9 million in common stock in 2024.
• For the trailing twelve months ending September 2025, the company issued $14 million in common stock.
• The number of shares outstanding increased by 0.69% in one year, reaching 208.25 million as of February 2026.

Capital Expenditures

• Capital expenditures totaled $37 million in 2023 and $122 million in 2024.
• In 2025, South Bow invested $103 million in the Blackrod Connection Project, with additional capital directed towards information systems and leasehold improvements for establishing the company as an independent entity.
• For 2026, planned capital expenditures include $10 million for growth initiatives and approximately $25 million (±$10 million) for maintenance, focusing on bolstering infrastructure and operational sustainability.