South Bow Corporation

Good day and thank you for standing by. Welcome to the Southville first quarter 2025 results conference call and webcast. At this time, all participants are on a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would like to end the conference over your speaker day. Martha Wilmot, please go ahead.

Thank you, Kevin, and welcome everyone to South Boath's first quarter 2025 earnings call. With me today are Bevan Worspa, President and Chief Executive Officer, Van Defoe, Senior Vice President and Chief Financial Officer, and Richard Pryor, Senior Vice President and Chief Operating Officer. We also have additional members of our leadership team in the room to help with the question and answer session. Before I hand it over to Bevan, I'd like to remind listeners that today's remarks will include forward-looking information and statements which are subject to the risks and uncertainties addressed in our public disclosure documents available under South Post CEDAR Plus profile and in South Post filings with the SEC. Today's discussion will also include non-GAAP financial measures and ratios, which may not be comparable to measures presented by other entities. Finally, I'll ask our analyst callers to hold themselves to two questions each to keep the discussion moving along. With that, I'll turn the call over to Bevan.

Thanks, Martha, and good morning, everyone. We appreciate you joining us today as we have many items to update you on since our last call. First, I would like to touch on our first quarter results as we had a solid financial start to 2025 and accomplished important milestones on our road to independence. We now have two quarters under our belts and the financial resilience of our business is becoming increasingly evident thanks to our highly contracted assets and the fundamental need for our services. In the first quarter, normalized EBITDA was $266 million, and we successfully maintained our debt metrics despite a volatile market backdrop. We demonstrated strong project execution in completing the pipeline scope of our Black Rod Connection project and implementing our new enterprise resource planning system. We also demonstrated our commitment to returning value to shareholders through our latest quarterly dividend declaration of $0.50 per share. which will be payable on July 15th to shareholders of record on June 30th. Southbow's journey began in July 2023, and we have consistently achieved every target set as we transitioned into an independent company. The team has done an outstanding job demonstrating our ability to operate independently, and we will continue doing so in the future. Moving on to milepost 171, I've spoken with several of our shareholders since the unfortunate incident in North Dakota, and I shared with them that maintaining safe and reliable operations was the most important goal we had to meet in becoming an independent company. I can't underscore the significance of our system's safety and reliability enough, which is why we have shown it in our actions through significant investments in our integrity programs over the last several years. We will continue investing in these programs as we work through our remedial action plans. As I have said many times, no incident is ever acceptable at South Bow, but I'm proud of the way our team came together and demonstrated South Bow's ability to execute and get our system back up quickly and effectively while meeting the expectations of our regulators, the surrounding community and local leaders. The collaboration I witnessed throughout our organization showed our strength to be agile and perform as a standalone entity while coming together to find answers. This unified partnership will continue as we complete our investigations and more importantly, find solutions to prevent future incidents. At Southbow, we have significant financial protections to safeguard our cash flows during incidents. 90% of our EBITDA is contracted over the next seven years. meaning there is no commodity price or volumetric risk in our base business. Our transportation service agreements contain provisions which enable continued collection of fixed tolls during outages, and we have insurance that will cover most of the costs associated with such incidents. Taking that into consideration, we are reaffirming our normalized EBITDA guidance of $1.01 billion for this year. You'll hear more on that in later remarks. With that, I will now ask Richard and Van to walk through the more critical aspects of the incident and how we are managing the business operationally and financially. Richard?