South Bow Q1 Revenue $491M, 616,000 bpd Throughput and $0.50 Dividend
SOBO•South Bow reported Q1 2026 revenue of $491 million with net income of $77 million (EPS $0.37) and normalized EBITDA of $257 million, marking a $5 million sequential increase. The company achieved 616,000 barrels per day Keystone throughput, placed its Blackrod Connection Project into service, and declared a $0.50/share dividend.
1. First-quarter Financial Performance
In Q1 2026, South Bow generated $491 million in revenue and $77 million in net income, equating to $0.37 per share. Normalized EBITDA reached $257 million, up $5 million from Q4 2025, while distributable cash flow rose to $168 million, a $19 million increase driven by lower current taxes.
2. Operational and Project Updates
The Keystone Pipeline System delivered average throughput of 616,000 barrels per day with a 95% System Operating Factor and 709,000 bpd on the U.S. Gulf Coast segment. The Blackrod Connection Project entered commercial service on schedule and budget, expected to add about $10 million in normalized EBITDA this year, and remedial work on the Milepost 171 incident continues with 11 inline inspections and 76 integrity digs completed.
3. Returns to Shareholders
South Bow returned $104 million to shareholders in Q1 via a $0.50 per share dividend and its board approved a $0.50 quarterly payout payable July 15, 2026. Dividends will be designated as eligible for Canadian tax purposes, maintaining the company’s sustainable return policy.
4. Balance Sheet and Project Development
As of March 31, 2026, total long-term debt stood at $5.8 billion with net debt of $4.7 billion and a net debt-to-normalized EBITDA ratio of 4.7x. Bids closed for the Prairie Connector open season on March 30, 2026, and a 60-day evaluation will determine if the project advances to secure long-term transport commitments.
