Canada's South Bow Q3 revenue rises; lifts 2026 cash flow outlook
SOBO•South Bow reported third-quarter revenue of $503 million, above the $467.69 million consensus estimate, and raised its 2026 distributable cash flow guidance by 4% to $690 million. Net income was $99 million.
1. Quarterly results
South Bow's third-quarter revenue rose to $503 million, beating the $467.69 million analyst consensus. Net income was $99 million and normalized EBITDA was $248 million. The company said tighter pricing differentials and moderated demand for capacity on the U.S. Gulf Coast segment of the Keystone Pipeline System weighed on results.
2. Cash flow outlook
South Bow raised its 2026 distributable cash flow guidance by 4% to $690 million, with a range of 2%, reflecting lower-than-expected current income taxes. It reaffirmed 2026 normalized EBITDA guidance of $1.04 billion and projected 2027 normalized EBITDA of $1.07 billion, including increased contributions from the Blackrod Connection Project. Keystone Pipeline throughput averaged 586,000 barrels per day in the quarter.
