South Bow Stock Earnings Reports

South Bow Corporation reported solid Q1 2026 results driven by operational strength and stable cash flows. Key financials: normalized EBITDA of $257 million (in line with expectations), distributable cash flow of $168 million, net debt to normalized EBITDA of 4.7x (unchanged from Dec 31), and a reaffirmed full-year normalized EBITDA guidance of $1.03 billion ±2%. The Board approved a quarterly dividend of $0.50 per share. Operationally, the BlackRock Connection project was placed into commercial service, Keystone throughput was strong (system operating factor ~95%, ~600k+ bpd in Q1) and the Gulf Coast leg can move in excess of 800k bpd. Remedial integrity work on the Keystone system is progressing, including successful runs of a new phased-array ultrasonic in-line inspection tool; pressure restrictions are expected to be lifted in a phased manner beginning later this year and continuing into 2027. Management is in a 60-day evaluation period for the Prairie Connector open season (bids closed end of March) and will use the full period to determine whether to advance the project, with emphasis on disciplined capital allocation, risk allocation, and protecting the balance sheet and dividend. Marketing contributed incrementally to EBITDA this quarter but any upside is expected to fall within existing guidance. Management reiterated that growth will be customer-led and balanced with financial discipline, preserving investment-grade metrics and dividend sustainability.