South Bow Reports First-quarter 2026 Results and Declares Dividend

South Bow Corporation, based in Calgary, Alberta, has released its financial and operational results for the first quarter of 2026. The company's average throughput on the Keystone Pipeline during this period was approximately 616,000 barrels per day, reflecting strong operational performance with a System Operating Factor of 95%. Notably, throughput on the U.S. Gulf Coast segment averaged around 709,000 barrels per day.

During the quarter, South Bow placed the Blackrod Connection Project into commercial service, achieving this milestone on schedule and within budget, with a zero recordable case rate. The company expects cash flows from this project to increase throughout 2026, targeting around $10 million in normalized earnings before interest, income taxes, depreciation, and amortization. Additionally, South Bow has been actively addressing the Milepost 171 incident through remedial actions, including 11 in-line inspections and 76 integrity digs.

Financially, South Bow reported revenue of $491 million and net income of $77 million, or $0.37 per share, for the first quarter. Normalized EBITDA was recorded at $257 million, a slight increase from the previous quarter, driven primarily by higher contributions from the Marketing segment. The company's distributable cash flow rose to $168 million, up $19 million from the prior quarter, largely due to lower current taxes. As of March 31, 2026, South Bow's total long-term debt remained at $5.8 billion, with a net debt of $4.7 billion, resulting in a net debt-to-normalized EBITDA ratio of 4.7 times.

The company plans to return $104 million, or $0.50 per share, to its shareholders in the first quarter through its dividend program, with a quarterly dividend approved for payment on July 15, 2026. In addition, South Bow recently closed bids for a long-term transportation service project and will assess commercial support for the proposed Prairie Connector project over the next 60 days. The company's senior leadership will discuss these results in a conference call on May 8, 2026.