South Bow Corp (NYSE: SOBO)

South Bow Corporation is an energy infrastructure company that owns and operates critical liquids pipelines and facilities extending across Canada and the United States, safely and reliably connecting robust crude oil supplies to key refining and demand markets in the U. S. Midwest and Gulf Coast.

South Bow generates revenue primarily through long-term committed transportation arrangements where customers pay fixed monthly payments for access to pipeline capacity. The company also earns revenue from its non-regulated marketing entity and offers uncommitted pipeline capacity on a monthly basis or through periodic open seasons to capture incremental earnings. Revenue from transportation contracts is recognized ratably over the contract term regardless of actual crude oil volumes transported.

South Bow operates through the following segments: Keystone Pipeline System, Marketing, and Intra-Alberta & Other.

• Keystone Pipeline System owns and operates a 4,327-kilometre crude oil pipeline system transporting crude oil from Hardisty, Alberta to U. S. markets including Wood River and Patoka, Illinois, Cushing, Oklahoma, and the U. S. Gulf Coast. It provides pipeline transportation services supported by long-term contracts with fixed monthly payments linked to contracted throughput volumes.

• Marketing conducts activities through a non-regulated marketing entity that engages in the purchase and sale of crude oil and related products, leveraging market opportunities to generate earnings independent of the regulated pipeline operations.

• Intra-Alberta & Other includes the Grand Rapids Pipeline System, White Spruce Pipeline, Blackrod Lateral, McMillan North Lateral, HoustonLink, and Port Neches pipelines, focusing on regional crude oil and natural gas transportation within Alberta and connecting Keystone to third-party terminals in the U. S. Gulf Coast.

South Bow holds a competitive position as a premier WCSB egress pipeline due to Keystone's direct path, shortest transit times from Hardisty, Alberta to the U. S. Gulf Coast, and its ability to offer premium service connectivity. The company benefits from long-term contracts with investment-grade shippers, providing earnings stability and insulation from commodity price volatility, which enhances its ability to compete for contract renewals and new business.

South Bow serves shippers including refiners, traders, and producers who utilize its pipeline capacity to transport crude oil to key markets. Specific customers include major energy companies, with three major customers accounting for over 10 percent of total revenues each in 2025, though their names are not disclosed in the filing.