South Bow Corporation (SOBO) 2026 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the first quarter 2026 results conference call and webcast. (Operator Instructions) Please be advised that today's conference is being recorded.

各位女士、先生，感謝您耐心等候。歡迎參加 2026 年第一季業績電話會議與網路直播。(接線員指示) 請注意，今天的會議將被錄音。

I would now like to turn the conference over to Martha Wilmot, Director of Investor Relations. Please go ahead.

現在我想把會議交給投資人關係總監 Martha Wilmot。請開始。

Thank you, Michelle, and welcome, everyone, to South Bow's first-quarter 2026 earnings call. With me today are Bevin Wirzba, President and Chief Executive Officer; Van Dafoe, Senior Vice President and Chief Financial Officer; and Richard Prior, Senior Vice President and Chief Operating Officer.

謝謝你，Michelle，也歡迎各位參加 South Bow 2026 年第一季財報電話會議。今天與我一同出席的有：總裁兼執行長 Bevin Wirzba；資深副總裁兼財務長 Van Dafoe；以及資深副總裁兼營運長 Richard Prior。

Before I turn it over to Bevin, 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 Bow's SEDAR profile and in South Bow's filings with the SEC. Today's discussion will also include non-GAAP financial measures and ratios that may not be comparable to those presented by other entities.

在我把時間交給 Bevin 之前，我想提醒各位，今天的發言將包含前瞻性資訊與陳述，相關風險與不確定性已在我們的公開揭露文件中說明，文件可於 South Bow 的 SEDAR 檔案以及 South Bow 向 SEC 提交的文件中查閱。今天的討論也將包含非 GAAP 財務衡量指標與比率，可能與其他公司所呈現者不具可比性。

With that, I'll turn it over to Bevin.

接下來我把時間交給 Bevin。

Yeah, thank you, Martha, and good morning, everyone. We appreciate you joining us.

好的，謝謝你，Martha，各位早安。感謝各位撥冗參與。

South Bow delivered solid first-quarter results, underpinned by strong operational performance and stable cash flows, despite heightened geopolitical and market uncertainty.

South Bow 第一季交出穩健的業績表現，儘管地緣政治與市場不確定性升高，仍受惠於強勁的營運表現與穩定的現金流。

During the quarter, we advanced the strategic priorities we laid out for the year. These included placing the Blackrod Connection Project into commercial service, continuing remedial pipeline integrity work on our Keystone Pipeline, and conducting the open season for Prairie Connector, which I'll address in a moment. Throughout this work, we remained focused on safe and reliable operations and disciplined capital allocation.

本季我們推進了年初所提出的策略重點。包括讓 Blackrod Connection Project 進入商轉、持續對 Keystone 管線進行修復性的管線完整性工作，以及進行 Prairie Connector 的開放季（open season），我稍後會說明。在整體工作過程中，我們始終聚焦於安全可靠的營運，以及嚴謹的資本配置。

Before I turn it over to Richard and Van, I want to address Prairie Connector directly and set expectations for today's call. We closed bids for the open season at the end of March as planned, and we are currently in a 60-day evaluation period. As you can appreciate, these are significant decisions for South Bow and our customers being made against a complex macro, regulatory, and policy backdrop. We intend to use the full 60-day evaluation period to reach a commercial determination.

在我把時間交給 Richard 和 Van 之前，我想直接談 Prairie Connector，並為今天的電話會議設定預期。我們如期於 3 月底結束開放季投標，目前正處於 60 天的評估期。如各位所理解，South Bow 與客戶在複雜的總體環境、監管與政策背景下做出這些重大決策。我們打算充分運用這 60 天評估期，以做出商業上的判定。

So, while I expect our analysts will have many ways to ask about it on today's call, we do not have anything further to add beyond what we have already disclosed. At the conclusion of the 60 days, we will communicate the outcome of the open season and outline potential next steps if the project continues to be advanced.

因此，雖然我預期分析師今天會以各種方式詢問此事，但除了我們已揭露的內容之外，目前沒有進一步補充。在 60 天期滿時，我們將公布開放季結果，並在專案持續推進的前提下，說明可能的後續步驟。

As a reminder, the concept behind Prairie Connector is to move Canadian crude oil from Hardesty, Alberta to the Canadian-US Border, where it could connect with downstream pipeline systems, serving multiple US markets, including Cushing, Oklahoma, and destinations on the US Gulf Coast.

提醒各位，Prairie Connector 的構想是將加拿大原油自亞伯達省 Hardesty 輸送至加美邊境，並可在該處與下游管線系統銜接，服務多個美國市場，包括奧克拉荷馬州 Cushing，以及美國墨西哥灣沿岸的目的地。

Last week, a Presidential permit was issued to Bridger Pipeline for cross-border facilities that would transport the Canadian crude oil we are proposing to move into the United States. This represents a meaningful development in the permitting process for cross-border energy infrastructure, and one that has understandably attracted its fair share of attention.

上週，總統許可（Presidential permit）已核發給 Bridger Pipeline，用於跨境設施，該設施將運輸我們擬輸送至美國的加拿大原油。這是跨境能源基礎設施許可流程中的一項重要進展，也理所當然地引起了相當多的關注。

That said, we are continuing to work diligently to ensure any project we advance is within our risk preferences and that risks are allocated appropriately among the parties best positioned to manage and mitigate them. Our team brings deep pipeline development experience across multiple jurisdictions and projects, some more famous than others. And we are applying all those learnings to find an allocation of risk that makes sense for all stakeholders.

儘管如此，我們仍持續努力，確保任何我們推進的專案都符合我們的風險偏好，並且讓風險在最有能力管理與降低風險的各方之間得到適當分配。我們的團隊在多個司法管轄區與多個專案上具備深厚的管線開發經驗，有些專案比其他更為人所熟知。我們正運用這些經驗教訓，尋求一套對所有利害關係人都合理的風險分配方式。

Recent global events have reinforced that secure, reliable energy and the infrastructure that delivers it truly matter. At South Bow, we are encouraged to be part of the conversation and to support our customers in increasing competitive, responsible Canadian energy in a world that continues to need more of it.

近期全球事件再次證明，安全、可靠的能源以及提供能源的基礎設施確實至關重要。在 South Bow，我們很高興能參與相關對話，並支持客戶在一個仍然需要更多能源的世界中，提升具競爭力且負責任的加拿大能源供應。

With that, I'll turn it over to Richard.

接下來我把時間交給 Richard。

Thanks, Bevin, and good morning. I'll start with safety and pipeline integrity, which remain top priorities.

謝謝你，Bevin，各位早安。我先從安全與管線完整性談起，這仍是我們的首要重點。

During the quarter, we continued to progress our remedial work related to the Milepost 171 incident, including a combination of in-line inspections and integrity digs across the Keystone system. In parallel, we're working closely with our in-line inspection technology providers to enhance tool performance and detection capabilities, including advancing the development of a new phased array ultrasonic tool, which we have now completed three successful runs with.

本季我們持續推進與 Milepost 171 事件相關的修復工作，包括在 Keystone 系統進行一系列管內檢測（in-line inspections）與完整性開挖檢修（integrity digs）。同時，我們也與管內檢測技術供應商密切合作，提升工具效能與偵測能力，包括推進新型相控陣超音波工具的開發；目前我們已成功完成三次運行。

We are encouraged that this tool enhances our overall detection capabilities and will be an important component of our ongoing integrity program. Overall, we are pleased with the progress we've made under the remedial work plan. Based on the work completed to date, we expect pressure restrictions to be lifted in a phased manner, with the process beginning later this year.

我們很受鼓舞，該工具提升了我們整體的偵測能力，並將成為我們持續完整性計畫的重要組成。整體而言，我們對修復工作計畫的進展感到滿意。根據目前已完成的工作，我們預期壓力限制將以分階段方式解除，流程將於今年稍晚開始。

Turning to operations, our first-quarter throughput was driven by strong operational performance and ongoing optimization of our systems. The Keystone pipeline operated with a 95% system operating factor, enabling us to transport more than 600,000 barrels per day during the quarter, providing customers with an opportunity to move makeup barrels as well as limited spot movements.

談到營運，我們第一季的輸送量受惠於強勁的營運表現以及系統持續最佳化。Keystone 管線系統以 95% 的系統運轉率運行，使我們在本季得以運輸每日超過 600,000 桶，並為客戶提供移轉補償桶（makeup barrels）以及有限現貨輸送的機會。

As the quarter progressed, we started to see strong demand for capacity on our assets, most notably on the US Gulf Coast segment, with recent geopolitical events driving an increase in demand for export barrels. With the modest widening of Cushing to US Gulf Coast differentials, we have been seeing higher throughput on our Market Link asset in the second quarter.

隨著季度推進，我們開始看到資產容量需求強勁，最明顯的是美國墨西哥灣沿岸區段；近期地緣政治事件推動出口桶需求增加。隨著 Cushing 至美國墨西哥灣沿岸價差小幅擴大，我們在第二季看到 Market Link 資產的輸送量提高。

I'll finish with a brief comment on growth, with broad macro changes supporting an increasing production outlook in the Western Canadian sedimentary basin. In that context, we continue to evaluate smaller-scale customer-led opportunities within our existing footprint.

最後簡要談成長：廣泛的總體環境變化支持西加拿大沉積盆地（Western Canadian Sedimentary Basin）的產量展望上升。在此背景下，我們持續評估在既有版圖內、由客戶主導的小規模機會。

These include either expanding into connectivity that would direct more barrels onto our systems or deliver barrels off our systems into new destinations. As Bevin noted, we will advance these opportunities with the same level of discipline that we are applying to Prairie Connector and to our inorganic growth strategy.

這些機會包括擴展連通性，將更多原油導入我們的系統，或將原油自我們的系統輸送至新的目的地。如 Bevin 所提，我們將以推進 Prairie Connector 與我們的非有機成長策略相同的紀律來推進這些機會。

With that, I'll turn it over to Van to walk through our financial performance and outlook.

接下來我把時間交給 Van，請他說明我們的財務表現與展望。

Thanks, Richard, and good morning. Soth Bow delivered normalized EBITDA of $257 million in the first quarter of 2026, which was in line with market expectations and modestly higher than the fourth quarter of 2025. While normalized EBITDA in our Keystone segment declined due to lower maintenance activity in the period, this was more than offset by higher contributions from our marketing segment.

謝謝你，Richard，各位早安。South Bow 於 2026 年第一季達成標準化 EBITDA 為 2.57 億美元，符合市場預期，且較 2025 年第四季小幅增加。雖然 Keystone 區段的標準化 EBITDA 因本期維護活動較少而下滑，但行銷區段較高的貢獻已足以抵銷。

Our expectations for 2026 remain unchanged, and we are reaffirming our normalized EBITDA outlook of $1.03 billion, within a range of 2%. Based on our current outlook, any potential upside from the marketing segment, reflecting current market dynamics, is expected to fall within our guidance range.

我們對 2026 年的預期維持不變，並重申標準化 EBITDA 展望為 10.3 億美元，誤差範圍為 2%。依據我們目前的展望，行銷區段在現行市場動態下的任何潛在上行空間，預期仍將落在我們的指引區間內。

Distributable cash flow of $168 million increased quarter over quarter, driven primarily by lower current taxes in the period. We continue to maintain our full-year distributable cash flow outlook of $655 million that we will use to fund our dividend, strengthen our balance sheet, and where appropriate, allocate capital towards growth.

可分配現金流為 1.68 億美元，較上一季增加，主要受本期當期所得稅較低所帶動。我們仍維持全年可分配現金流展望 6.55 億美元，將用於支付股利、強化資產負債表，並在適當情況下將資本配置於成長。

Turning to leverage, we exited the quarter with a net debt to normalized EBITDA ratio of 4.7 times. That is unchanged from December 31 and in line with our expectations. As Blackrod cash flows begin to ramp in the second half of the year, our leverage profile will improve modestly through the balance of 2026.

談到槓桿，我們在本季結束時的淨負債對標準化 EBITDA 比率為 4.7 倍。此數值與 12 月 31 日相比不變，且符合我們的預期。隨著 Blackrod 現金流在下半年開始逐步提升，我們的槓桿概況將在 2026 年剩餘期間小幅改善。

Lastly, the Board of Directors approved our quarterly dividend of $0.50 per share yesterday. As we said consistently, the dividend remains a foundational component of South Bow's total return proposition.

最後，董事會昨日核准我們每股 0.50 美元的季度股利。正如我們一貫所說，股利仍是 South Bow 總報酬主張的基礎性組成部分。

Switching briefly to growth and building on Bevin and Richard's comments, we've received a number of questions on how we think about funding growth at South Bow. At a high level, our approach is straightforward. Any growth we pursue will be evaluated through a disciplined capital allocation lens.

接著簡要談談成長，並延續 Bevin 與 Richard 的評論，我們收到不少問題，詢問我們如何看待在 South Bow 為成長提供資金。從高層次來看，我們的方法很直接。我們所追求的任何成長，都將以嚴謹的資本配置視角加以評估。

At our Investor Day in November, I outlined a range of potential financing alternatives for large-scale growth opportunities, including cash on hand, insurance capital, and new equity, depending on the opportunity and the associated risk profile. Importantly, I also walked through the financing criteria that guides our decision-making. These include adhering to our capital allocation priorities, protecting our dividend sustainability, preserving our investment-grade credit profile, maintaining leverage neutrality, and delivering per-share accretion.

在 11 月的投資人日上，我概述了針對大型成長機會的一系列潛在融資替代方案，包括手上現金、保險資本以及新股權，視機會本身及其相關風險輪廓而定。重要的是，我也說明了指引我們決策的融資準則。這些準則包括遵循我們的資本配置優先順序、保護股利的可持續性、維持投資等級的信用評等、維持槓桿中性，以及帶來每股增益。

With that brief financial overview and outlook, I'll turn it back to Bevin for closing remarks.

以上是簡要的財務概覽與展望，我把時間交回給 Bevin 作結語。

Thanks, Van, and thanks, Richard. To close, I want to come back to something I've said before because it really does define South Bow. We operate critical and enduring energy infrastructure in a corridor that connects one of the strongest and most secure supply basins in the world to some of the most attractive refining and demand markets. That positioning matters, and it matters to our customers.

謝謝你，Van，也謝謝你，Richard。在結尾時，我想回到我以前說過的一點，因為那確實定義了 South Bow。我們在一條走廊上營運關鍵且長久的能源基礎設施，該走廊連結了全球最強且最安全的供應盆地之一，以及一些最具吸引力的煉油與需求市場。這樣的定位很重要，而且對我們的客戶也很重要。

Canadian producers have clear ambitions to materially grow their asset bases. With our customer-led strategy, our focus is on putting forward the most competitive solutions to support that growth while staying firmly aligned with our capital allocation principles and risk preferences. As we've said consistently, growth at Southwell will be balanced with financial discipline. We are committed to maintaining a strong balance sheet and delivering a meaningful and sustainable dividend while investing in growth. That balance is central to how we run this company, and it's fundamental to our strategy.

加拿大生產商對於大幅擴增其資產基礎有明確的企圖心。在我們以客戶為導向的策略下，我們的重點是在堅守資本配置原則與風險偏好一致的前提下，提出最具競爭力的解決方案以支持該成長。正如我們一貫所說，Southwell 的成長將與財務紀律取得平衡。我們致力於在投資成長的同時，維持強健的資產負債表，並提供具意義且可持續的股利。這種平衡是我們經營這家公司的核心，也是我們策略的根本。

With that, I'll now ask the operator to open the line for questions.

接下來，我請接線員開放提問。

(Operator Instructions)

(接線員指示)

Sam Burwell, Jefferies.

Sam Burwell，Jefferies。

Hey, guys. Good morning.

嗨，各位。早安。

Appreciate the disclaimer around Prairie questions, but I'll give it a shot.

我理解你們對 Prairie 問題的免責聲明，但我還是想試著問問看。

I want to better understand what the key hurdles are remaining prior to making a call on whether to advance Prairie. I just want to get a sense of what's non-negotiable prior to making a call before the end of the evaluation period relative to what could get sorted out prior to an FID down the line.

我想更清楚了解，在決定是否推進 Prairie 之前，還剩下哪些關鍵門檻需要跨越。我想掌握的是：在評估期結束前做出決定之前，哪些事項是不可妥協的；相對地，哪些事項可能可以留待之後、在未來做出最終投資決策（FID）之前再解決。

Thank you, Sam. There's lots to consider, obviously, in evaluating the proposals received. Certainly, when we review what our customers have submitted, we have to confirm a number of things amongst our partners to ensure that we're all aligned in whether or not we take -- execute on those agreements that come in and move forward to the next step.

謝謝你，Sam。顯然，在評估收到的提案時有很多因素需要考量。當然，當我們審視客戶提交的內容時，我們必須在合作夥伴之間確認若干事項，以確保大家對於是否採取行動——也就是執行收到的協議並推進到下一步——都一致對齊。

And the next step is really to prepare for a potential investment decision on the project. And certainly, the typical elements that you would evaluate before FID are ensuring that your contracting strategy, your supply chain procurement, your cost estimates, the execution plan, all of those things are in line. But also, we're kicking off significant permitting efforts across the system in the United. States as well as doing the preliminary work in Canada.

而下一步其實就是為該專案可能的投資決策做準備。而且，在 FID 之前通常會評估的要素，包括確保你的簽約策略、供應鏈採購、成本估算、執行計畫等各方面都一致到位。但同時，我們也正在美國境內整個系統啟動大量的許可申請工作，並在加拿大進行前期工作。

One thing though I want to remind everyone as to my remarks is that there are other elements that remain in the project outside of just commercial risk. We need to ensure that we manage and mitigate any last-mile risk that could occur on the project in the future. Now, we're seeing great alignment amongst the regulatory environment in both Canada and the United States, but we cannot expose our shareholders to risks that they cannot bear, nor can we. So those would be the key gating items, Sam.

不過，我想提醒大家呼應我先前的發言：專案中除了商業風險之外，還有其他要素尚待處理。我們需要確保能管理並緩解未來專案可能出現的任何「最後一哩」風險。目前我們看到加拿大與美國的監管環境高度一致，但我們不能讓股東承擔他們無法承受的風險，我們也不能。所以，Sam，這些就是關鍵的把關項目。

Okay, perfect. And then follow-up would be, curious, what's the current max capacity on the Gulf Coast portion of Keystone, and how easily and cost-effectively could that potentially be expanded?

好的，完美。接著追問一下：Keystone 在墨西哥灣沿岸那一段目前的最大運能是多少？以及若要擴充，潛在上能有多容易、且成本效益如何？

Sure, it's Richard Prior here. So we're able to move in an excess of 800,000 barrels a day on the Gulf Coast leg. Remember, it was originally designed as part of the -- as part of what was going to be the Keystone XL system. And so it could move 830,000 barrels plus. I'd say at this point, it's pretty much max designed.

好的，我是 Richard Prior。我們在墨西哥灣沿岸這一段每天可輸送超過 80 萬桶。請記得，它最初的設計是作為——作為原本 Keystone XL 系統的一部分。因此它可以輸送 83 萬桶以上。我想就目前而言，基本上已接近設計上限。

There may be some modest amounts of optimization or using things like drag-reducing agent that we could kind of top that up a little bit, but it's at the upper end of what it can move. And we're seeing very strong throughput on it here in the second quarter. So I think we'll see when we release our second-quarter results, what kind of top-end capacity we're able to move on the Gulf Coast section.

或許可以透過一些小幅度的最佳化，或使用像是減阻劑之類的方式，把運能再稍微往上推一點，但它已經在可輸送量的高端。而且我們在第二季看到非常強勁的輸送量。所以我想等我們公布第二季財報時，就能看到我們在墨西哥灣沿岸這一段能達到的高端運能大概是多少。

All right. Awesome. Thank you, guys.

好。太棒了。謝謝各位。

Maurice Choy, RBC Capital Markets.

Maurice Choy，RBC Capital Markets。

Thank you, and good morning, everyone. Just sticking with the theme about the US Gulf Coast segment of Keystone, I know you mentioned the Q2 being a little bit higher than Q1 because of the higher demand. Just curious just to see how you think this durability of higher demand will be for the remainder of the year. But also more importantly, are you seeing any different submarkets within this region that's asking South Bpw to consider expanding into?

謝謝，大家早安。延續 Keystone 在美國墨西哥灣沿岸區段的主題，我知道你們提到因需求較高，第二季會比第一季高一些。我想請教你們如何看待這種較高需求在今年剩餘期間的持續性。但更重要的是，你們是否看到該區域內有任何不同的次級市場，正在要求 South Bpw 考慮擴張進入？

Well, Maurice, I'll start. And maybe I'll ask if you could repeat the last part of your question. I think neither Richard and I really caught that. But before you do, so we're seeing volumes, as Richard has pointed out, flowing very high on our Gulf Coast segment right now. Just to remind everyone, Cushing volumes, though, is what drives that ARB. And those flows and the Cushing volumes are reducing.

Maurice，我先回答。另外我想請你重複一下問題的最後一部分。我想我和 Richard 都沒有完全聽清楚。不過在你重複之前，正如 Richard 指出的，我們目前看到墨西哥灣沿岸區段的流量非常高。提醒大家一下，Cushing 的量才是驅動那個 ARB 的因素。而那些流量以及 Cushing 的量正在下降。

And we're getting -- so our outlook is that much of the volume growth that we've seen has been macro-driven here of late. And so we don't anticipate to see that level of strength through the back half of the year. But maybe if you could repeat the last part of your question, please?

而我們的看法是，近期我們看到的許多量的成長是由總體因素所驅動。因此我們不預期在今年下半年仍會維持那樣的強勁程度。不過可以請你重複一下問題最後一部分嗎？

Just thinking about, as this part of the pipeline extends itself. Are there any customers or sub-markets within the US Gulf Coast that is asking South Bow to expand more like fingers and toes?

我在想的是，隨著這段管線向外延伸。在美國墨西哥灣沿岸是否有任何客戶或次級市場，要求 South Bow 進一步擴張，像是延伸出更多支線？

Yeah, great question. And we're in constant dialogue with our customers about increasing the amount of connectivity, both on the receipt end of our pipeline, but certainly on the delivery end, as you point out in the Gulf Coast.

是的，這是個很好的問題。我們一直與客戶保持對話，討論提升連通性的方式，無論是在管線的收油端，但如你所指出的，尤其是在墨西哥灣沿岸的交付端。

We are trying to make sure that as our customers that move barrels on the pipeline can efficiently as possible reach end market destinations, whether that be refineries or whether that be additional marine terminals. And so I'd say we're in a number of discussions about adding additional connectivity at the southern end of our pipeline so we can continue to serve as many markets, as many end users as possible.

我們正努力確保，讓在管線上運送原油的客戶能以最高效率抵達終端市場目的地，不論是煉油廠，或是額外的海運碼頭。因此我會說，我們正在進行多項討論，評估在管線南端增加更多連通性，以便我們能持續服務更多市場、更多終端用戶。

Thank you. And just to finish off, Van, you mentioned that any potential upside from marketing is expected to fall within your guidance range. Can I just ask how you would characterize the market conditions and the landscape that underpins this view differently? Is that a ceasefire type of environment or is that more of a extend to the year-end type of environment?

謝謝。最後收個尾，Van，你提到行銷業務任何潛在上行，預期都會落在你們的財測指引區間內。我想請教，你會如何描述支撐這個看法的市場狀況與競爭版圖？那會是一種「停火」式的環境，還是更像會延續到年底的環境？

Thanks, Maurice. Yeah, so for marketing, if you remember, what we did when we spun out is we reduced kind of the sandbox that marketing plays in. This quarter, the $9 million in EBITDA took advantage of some market volatility, and the team was able to capture some value there. I wouldn't expect that to progress throughout the rest of the year. What you'll probably see, we'd rather have our customers take those volumes. And so our marketing group is kind of the shipper of last resort when no one else will take it.

謝謝你，Maurice。是的，關於行銷，如果你還記得，我們在分拆時，縮小了行銷業務可以運作的「沙盒」範圍。本季9百萬美元的EBITDA受惠於一些市場波動，團隊也因此能夠在其中捕捉到一些價值。我不預期這種情況會在今年剩餘時間持續發展。你們可能會看到的是，我們更希望由客戶來承接那些量。因此，我們的行銷團隊某種程度上是「最後的承運人」，也就是當其他人都不願意接時才由我們來接。

Thank you very much.

非常感謝。

John Mackay, Goldman Sachs.

John Mackay，高盛。

Hey, team. Good morning. Thank you for the time. I will try one on Prairie Connector. And feel free to punt if needed, given the disclaimer. But I guess I'd just be curious to hear some of your thoughts on kind of what the overall structure of this could look like.

各位團隊好。早安。謝謝撥冗。我想問一題關於Prairie Connector。考量你們的免責聲明，如有需要也請直接略過。不過我主要想聽聽你們對於整體架構可能會長什麼樣子的想法。

Are you guys planning or is this part of the process to think through forming a kind of total JV where you guys will own not just the kind of portion of the line down to the border, but kind of interests south of the border? I understand those moving pieces, but maybe just walk us through kind of what the structure of this could look like over time.

你們是否規劃，或這是否是流程的一部分，去思考成立一種整體性的合資（JV），讓你們不僅擁有管線到邊境這一段的部分權益，也持有邊境以南的權益？我理解其中有很多變動因素，但能否帶我們走一遍，這個架構隨時間推進可能會如何演變？

Yes, John, we're still baking the cake on a few elements of that. And so, as I mentioned in my remarks, we're not going to really add. Obviously, we have our system that is -- that we were just talking about at length in terms of the Gulf Coast segment that we operate and own.

是的，John，我們在其中幾個要素上仍在持續推進、把方案「烤熟」。因此，如同我在發言中提到的，我們不會再多補充。當然，我們有自己的系統——也就是我們剛才針對我們營運並持有的墨西哥灣沿岸（Gulf Coast）區段，已經詳細討論過的那一段。

We obviously have the permitted right-of-way and existing pipe that's been constructed in Alberta and working with partners to determine the balance of the scope in the right way. Obviously, we're looking to execute this with as little risk as possible, and that's key to structuring our arrangements with our partners.

我們也很清楚，我們在亞伯達省已有取得許可的通行權（right-of-way）以及已建成的既有管線，並正與合作夥伴一起決定剩餘範疇的適當平衡。顯然，我們希望以盡可能低的風險來執行，而這也是我們與合作夥伴安排架構時的關鍵。

That's absolutely fair. The second one for me, you guys got Blackrod online with a good kind of -- as a proof of concept, but good example of what you can do on that portion of the system. Understand it's still early days after the oil price spike, but just curious what conversations have been around about next potential projects up there, whether or not the pace of conversations has picked up with where oil has gone. Thanks.

這完全合理。第二題，你們讓Blackrod順利上線，算是一個很好的概念驗證，也是一個很好的例子，展示你們在系統那一段能做到什麼。我知道油價飆升後仍屬早期階段，但我想了解，關於上游下一個潛在專案的討論大概是什麼情況？隨著油價走勢，相關對話的節奏是否有加快？謝謝。

Yeah, John, that's a great question. While there's been a lot of focus on Prairie Connector, we've actually been focused on just the balance of the increased egress potential out of the basin, which is great for our customers, so peers are moving west and east.

是的，John，這是個很好的問題。雖然大家很聚焦在Prairie Connector，但我們其實也一直在關注盆地外運能力（egress）的其餘增量潛力，這對我們客戶很有利，因此同業的流向正在往西、往東移動。

To satisfy or fill those expansions, including our own, there'll be a need to expand intra-Alberta systems. And so our team's been looking at our pre-invested corridor in the Grand Rapids, as you pointed out, where Blackrod is. That corridor is permitted and so we would look to see if there is opportunity to attract barrels into that system.

為了滿足或填補那些擴建（包含我們自己的擴建），將需要擴充亞伯達省內（intra-Alberta）的系統。因此，我們團隊一直在評估我們在Grand Rapids的既有前期投資走廊（pre-invested corridor），如你所指出，Blackrod就在那裡。該走廊已取得許可，因此我們會評估是否有機會把更多原油吸引進入該系統。

I recently visited the site last week at the Heartland facility where it was pre-built for receiving those barrels and then delivering them. We have a connection directly to TMX off of that Grand Rapids route. So we're looking at multiple solutions. Intra-Alberta, it was great to see our customer, IPC, be so successful with their first phase and encouraged by their comments on their quarter that they're evaluating Phase 2 as well. So these are all constructive elements to leveraging our pre-invested corridors in intra-Alberta.

我上週剛去參訪Heartland設施現場，那裡已預先建置好用來接收這些原油並進行輸送交付。我們從那條Grand Rapids路線可直接連接到TMX。因此我們正在評估多種解決方案。在亞伯達省內方面，很高興看到我們的客戶IPC在第一期非常成功，也從他們本季的評論中受到鼓舞，因為他們也在評估第二期。這些都是有利因素，有助於我們運用在亞伯達省內既有的前期投資走廊。

That's great. Thank you.

很好。謝謝。

Jeremy Tonet, JP Morgan.

Jeremy Tonet，摩根大通（JP Morgan）。

Hey, good morning. This is Eli on for Jeremy. Just wanted to touch on the pressure restricting lifting process on Keystone. Can you just remind us the key milestones there and then where you guys are at, and we should expect that to progress through the rest of the year? Thanks.

嗨，早安。我是Eli，代Jeremy提問。想請教Keystone上關於解除壓力限制的流程。你能否提醒我們關鍵里程碑有哪些、你們目前進度到哪裡，以及我們是否應預期今年剩餘時間會持續推進？謝謝。

Yeah, thanks. It's Richard Prior. I'll field this one. So first of all, I'd just say we're making very good progress. We're very pleased with the work that's been done to date on our remedial action program. And our view at this time is that it's going to put us in a position where later this year, we're going to be able to start removing pressure restrictions in a phased basis. So it'll probably look like a segment-by-segment basis.

好的，謝謝。我是Richard Prior。我來回答這題。首先我想說，我們進展非常順利。我們對目前為止在補救行動計畫（remedial action program）上完成的工作非常滿意。我們目前的看法是，這將使我們在今年稍晚能夠開始以分階段方式解除壓力限制。所以大概會是按區段逐段進行。

I think the process to remove all of the pressure restrictions on the pipeline is probably going to go into 2027 until we can lift it in its entirety or lift them in in its entirety. But it's really just the process segment by segment of running in-line inspection tools, analyzing the data, completing associated digs, verifying the integrity in each segment and completing the engineering analysis, and then in certain cases, working with a regulator to lift those pressure restrictions.

我認為，要把管線上所有壓力限制全部解除，可能會延續到2027年，才能完全解除（或把它們全部解除）。但本質上就是逐段進行：跑管內檢測工具（in-line inspection tools）、分析資料、完成相關開挖（digs）、驗證各區段的完整性並完成工程分析，然後在某些情況下，與監管機關合作解除那些壓力限制。

Got it. That's helpful. And then maybe just thinking about the outlook for interruptible volumes back on Keystone, whether that's later this year or next year, can you remind us the key differentials that make that economic for shippers and kind of how you see volumes above contracted resuming throughout this decade? Thanks.

了解。這很有幫助。再來想請教Keystone上可中斷（interruptible）的運量展望，不論是今年稍晚或明年，你能否提醒我們讓托運人（shippers）覺得有經濟性的關鍵價差（differentials）是哪些？以及你們如何看待本十年內合約量以上的運量逐步恢復？謝謝。

Yeah, so we've been able to move in excess of our contracted volumes in the last quarter, actually. We've had very high operational performance. We had a more measured amount of maintenance work in the first quarter, and so we were up at about 615,000 barrels. So that is beyond contracted capacity.

是的，我們其實在上一季已能運送超過合約量的運量。我們的營運表現非常好。第一季的維修工作量相對更為克制，因此我們達到約61.5萬桶。所以那已超過合約容量。

A lot of that in the first quarter was make-up rights, so we did move a few spot batches. I'd say as this year continues and then you get into next year, we see differentials continuing to widen out as more crude production comes on in Alberta and we'd see demand increasing for uncommitted space on the pipeline. I would say once we get all of the pressure restrictions removed, I think we're going to be back up in that, call it, 625,000-barrel type throughput volume that we'd be able to move.

第一季其中很大一部分是補償權利（make-up rights），所以我們也確實運送了少量現貨批次（spot batches）。我會說，隨著今年持續推進並進入明年，隨著亞伯達省更多原油產量上線，我們看到價差持續擴大，對管線上未承諾空間（uncommitted space）的需求也會增加。我認為，一旦我們把所有壓力限制都解除，我們應該能回到大約62.5萬桶左右的輸送量（throughput volume）。

Great. Thanks.

很好。謝謝。

Benjamin Pham, BMO.

Benjamin Pham，BMO。

Well, good morning, first of all. I know you touched base on the regional pipe outlook, which seems quite positive still. Can you comment with all the export projects and [AWS] being announced, including yourself, is, you get a sense that there could be a meaningful pent-up demand of a regional pipeline build-out, assuming one or more of these projects are sanctioned?

首先，早安。我知道你們已談到區域管線展望，看起來仍相當正面。想請教，隨著各種出口專案與[AWS]陸續宣布（包括你們自己在內），你們是否感覺到：如果其中一個或多個專案獲得核准（sanctioned），區域管線擴建可能會出現相當可觀的累積（遞延）需求？

I think, Ben, this is Bevin, as I mentioned, yeah, we do see -- what's been encouraging, if you look at the growth CAGR of the basin over the last 10 years, it's been around 3%, approximately 1 million barrels of growth. That was able -- and then this last year and this year, another growth of kind of 100,000 and 150,000 barrels a year per annum.

我想，Ben，我是 Bevin，如我提到的，是的，我們確實看到——令人鼓舞的是，如果你看過去 10 年該盆地的成長年複合成長率（CAGR），大約在 3%，約增加 100 萬桶的成長。那是能夠——然後去年與今年，又分別有大約每年 10 萬桶與 15 萬桶的成長。

So by what Richard was mentioning, by the end of this year, we see that egress will then be kind of tapped. And then these expansions are being contemplated to address the outlook, which is, again, if you add up what we're hearing from customers, it may not be a 3% growth CAGR. But even a 2% growth CAGR is kind of what we've been hearing. And that looks to add over the course of the next five, six, seven years, probably another 1 million barrels a day, and that's what's underpinning, I guess, the expansion potential that we're seeing.

所以依照 Richard 提到的，到今年年底，我們看到外運能力（egress）將會差不多被用滿。接著，這些擴建正在被評估，以因應前景；也就是說，再次強調，如果把我們從客戶那裡聽到的加總起來，可能不會是 3% 的成長 CAGR。但我們聽到的，即使是 2% 的成長 CAGR 也差不多。而這看起來在接下來五、六、七年期間，可能再增加約 100 萬桶/日，這也是支撐我們所看到擴建潛力的基礎。

And so those barrels have to move, and they're all originating in the oil sense, and so there's a number of operators that have systems that can collect those barrels. We'll try to put forward the most competitive solutions. We have maybe a little bit more of an advantaged position on the west side, as opposed to some of our peers who have great positions on the east, but we'll still look to see how we can participate broadly in that growth.

因此，這些桶數必須被運出去，而且在原油端它們都源自該地區，所以有不少營運商擁有能夠收集這些桶數的系統。我們會努力提出最具競爭力的解決方案。相較於一些在東側佔有優勢、位置很好的同業，我們在西側可能有稍微更有利的位置，但我們仍會看看如何能在這波成長中更廣泛地參與。

Got it. And this may just tie to your balance sheet and even thinking about any project you're sessioned today at the timing of CapEx and how transacts from years to now. You probably don't have a pretty big need for CapEx you do announce in the growth project. But my question more specifically, I guess, you think about the balance sheet in a couple of years. Gow much CapEx do you think you can take on before considering asset sales or equity or partnerships?

了解。這可能只是連結到你們的資產負債表，甚至思考你們今天提到的任何專案在資本支出（CapEx）時點，以及從過去到現在的變化如何反映。你們可能沒有很大的 CapEx 需求，因為你們確實宣布了成長專案。但我更具體的問題是，我想，你們在思考兩三年後的資產負債表時，在考慮資產出售、發行股權或引入合作夥伴之前，你們覺得最多能承擔多少 CapEx？

Yeah, Ben, I'll start and then I'll pass it to Van. When we spun, we reserved -- obviously, our number one capital allocation priority is to reduce leverage. We had a target of getting down to 4 times. Within five years, we're a little bit ahead on that schedule based on the current base plan and Van can give those details.

好的，Ben，我先回答，然後再交給 Van。我們分拆時保留了——顯然，我們資本配置的首要優先事項是降低槓桿。我們的目標是降到 4 倍。在五年內達成；依照目前的基礎計畫，我們在進度上稍微超前，Van 可以提供細節。

But we did reserve as we were planning around $150 million per year of free cash flow to invest in the business. That will now grow to closer to $180 million with Blackrod coming on. And right now, we're not deploying capital, so we're building up cash on the balance sheet. So that's the high level. And maybe I'll turn it to Van to kind of go through a little bit more detail.

但在規劃時，我們確實預留了每年約 1.5 億美元的自由現金流，用於投資業務。隨著 Blackrod 上線，這將成長到接近 1.8 億美元。而目前我們沒有在部署資本，所以我們正在資產負債表上累積現金。以上是高層次的說明。也許我把時間交給 Van，請他再更詳細說明一些。

Yeah, thanks, Ben. I think first and foremost, keeping an eye on our investment-grade rating and making sure that that is maintained and actually a view to get to BBB flat over time is something that we are looking at. So we'll take that into account when we are financing these projects.

好的，謝謝，Ben。我想首先最重要的是，關注我們的投資級評等，並確保能維持；而且長期來看，我們也希望能達到 BBB 平評等，這是我們正在考量的方向。因此，在為這些專案融資時，我們會把這點納入考量。

I think our original value proposition at that 2% to 3% growth, we view that being able to be funded through our distributable cash flow. We have that additional free cash flow to be able to do that. It's more the big chunkier ones that we would need some different financing besides our cash flow.

我想我們原本的價值主張是在 2% 到 3% 的成長下，我們認為可以透過可分配現金流來支應。我們也有額外的自由現金流可以做到這點。比較需要不同於現金流的融資方式的是那些規模更大、金額更「厚重」的專案。

And when you think, just to add on to that, Ben, the types of projects that we're investing in are all aligned with our risk preferences. And when you're building long contracted take-or-pay agreement style investments, the financing is more straightforward than something that has a lot of merchant or otherwise shorter tenure risk on it.

另外補充一下，Ben，我們投資的專案類型都符合我們的風險偏好。當你是在建置長期合約、take-or-pay（保量付費）協議型態的投資時，相較於具有較多現貨（merchant）或其他較短期限風險的投資，融資會更直接。

Okay, that's a great color. Thank you.

好的，這些說明很有幫助。謝謝。

Sumantra Banerjee, UBS.

UBS 的 Sumantra Banerjee。

Hi, thank you for taking the question. I know in the press release that you mentioned that you expect the WCSB crude oil supply to still grow modestly throughout the rest of the year. I'm just curious, given the recent geopolitical events -- and wanted to ask about the puts and takes that you're looking into and what could potentially change this view down the road?

嗨，謝謝讓我提問。我知道你們在新聞稿中提到，你們預期 WCSB 原油供給在今年剩餘時間仍會溫和成長。我只是好奇，考量近期地緣政治事件——想請教你們正在觀察的利多與利空因素（puts and takes）有哪些，以及未來可能有哪些因素會改變這個看法？

Well, it's a great question. And we brought forward the Prairie Connector opportunity to customers to address really what we saw as more of the optimization growth within the basin, the additional technology that our customers are using, extended well pairs, those types of things that didn't need a significant amount of capital as well as regulatory reform.

這是個很好的問題。我們把 Prairie Connector 的機會帶給客戶，主要是為了因應我們所看到盆地內更偏向最佳化的成長：客戶採用的額外技術、延伸井對（extended well pairs）等這類不需要大量資本的作法，以及監管改革。

And I think if you look at the releases by our customers in the past week, they've all pointed to ensuring that the policy and regulatory environment, particularly around emissions, are resolved in order to see them invest significant capital to grow the basin to meet that global desire for Canadian crude. So I think the next gating item in particular is, beyond what we could service with Prairie Connector would be more clarity amongst in the regulatory and policy environment.

而且我想，如果你看我們客戶在過去一週發布的訊息，他們都指出，必須先確保政策與監管環境——特別是排放相關——得到解決，才能看到他們投入大量資本來擴大盆地，以滿足全球對加拿大原油的需求。所以我認為下一個關鍵門檻，特別是超出我們透過 Prairie Connector 所能服務的部分，就是監管與政策環境需要更明確。

Got it. That's helpful. My quick follow-up is, I know you also mentioned previously that you expect leverage to tick down in the rest of the year, especially with Blackrod cash flows ramping up. I'm just curious about other puts and takes that we should consider there as well.

了解。這很有幫助。我快速追問一下：我知道你們先前也提到，你們預期今年剩餘時間槓桿會小幅下降，尤其是 Blackrod 現金流逐步拉升。我只是好奇，還有哪些我們也應該納入考量的利多與利空因素？

Could you repeat the back half of that, please, Sumantra?

Sumantra，你可以把後半段再重複一次嗎？

Sure. I know you mentioned Blackrod cash flows ramping up would help with the leverage to go down during the balance of the rest of the year. Just curious about anything -- any other factors that we should consider there?

當然。我知道你提到 Blackrod 現金流逐步拉升，會幫助今年剩餘時間槓桿下降。只是想了解，還有沒有其他——任何我們也應該考量的因素？

And so if you think about that normalized debt to EBITDA ratio, obviously there's two components of that. So year over year, our EBITDA would increase from [25 to 26]. And on top of that, we are paying down debt or accumulating cash on our balance sheet.

所以如果你看那個常態化的淨負債對 EBITDA 比率，顯然有兩個組成部分。因此，逐年來看，我們的 EBITDA 會從[25 到 26]增加。此外，我們也在償還債務或在資產負債表上累積現金。

We currently have limited growth capital in our guidance for this year, so that would put more cash on our balance sheet. So it's that combination of increased EBITDA year over year and increased cash or decreased net debt.

我們今年的指引目前包含的成長資本有限，因此會讓更多現金留在資產負債表上。所以就是這兩者的組合：逐年增加的 EBITDA，以及增加的現金或降低的淨負債。

Got it. That's helpful. I'll hand it over.

了解。這很有幫助。我把時間交回去。

Thank you very much.

非常感謝。

Thank you. And there are no further questions in the queue at this time. I will now turn the call back over to Bevin for closing remarks.

謝謝。目前佇列中沒有其他問題。我現在把電話會議交回給 Bevin 做結語。

Thank you, Michelle, and thank you to all the analysts that joined and asked questions. We really value your continued interest in South Bow, and we look forward to connecting with you again soon. Have a great day.

謝謝你，Michelle，也謝謝所有加入並提問的分析師。我們非常重視各位對 South Bow 持續的關注，也期待很快能再次與各位交流。祝各位有美好的一天。

This does conclude today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝各位參與，現在可以掛線。