South Bow Corporation Launches as Independent Company
South Bow (SOBO) has officially launched as an independent company, separating from TC Energy The company's shares will begin trading on the Toronto Stock Exchange on Oct. 2, 2024, and are expected to start trading on the New York Stock Exchange around Oct. 8, 2024. South Bow is a liquids pipelines company connecting Canadian crude oil supply to U.S. Midwest and Gulf Coast markets.
The company plans to focus on creating long-term value through a disciplined approach to capital allocation, prioritizing financial strength and low-risk investments. South Bow intends to pay a strong and sustainable base dividend, with the inaugural dividend expected to be declared on Nov. 7, 2024, and paid on Jan. 31, 2025. TC Energy shareholders of record on Sept. 25, 2024, received one South Bow common share for every five TC Energy common shares owned.
South Bow (SOBO) ha ufficialmente avviato la sua attività come azienda indipendente, separandosi da TC Energy. Le azioni dell'azienda inizieranno a essere negoziate sulla Borsa di Toronto il 2 ottobre 2024 e dovrebbero cominciare a essere scambiate sul New York Stock Exchange intorno all'8 ottobre 2024. South Bow è un'azienda di pipeline per liquidi che collega l'offerta di petrolio greggio canadese ai mercati del Midwest e della Gulf Coast degli Stati Uniti.
L'azienda prevede di concentrarsi su creare valore a lungo termine attraverso un approccio disciplinato nella gestione del capitale, dando priorità alla solidità finanziaria e a investimenti a basso rischio. South Bow intende distribuire un dividendo base forte e sostenibile, con il dividendo inaugurale previsto per essere dichiarato il 7 novembre 2024 e pagato il 31 gennaio 2025. Gli azionisti di TC Energy registrati il 25 settembre 2024 hanno ricevuto un'azione comune di South Bow per ogni cinque azioni comuni di TC Energy possedute.
South Bow (SOBO) ha lanzado oficialmente como una empresa independiente, separándose de TC Energy. Las acciones de la empresa comenzarán a cotizar en la Bolsa de Toronto el 2 de octubre de 2024 y se espera que empiecen a negociarse en la Bolsa de Nueva York alrededor del 8 de octubre de 2024. South Bow es una empresa de oleoductos de líquidos que conecta el suministro de petróleo crudo canadiense con los mercados del Medio Oeste y la Costa del Golfo de EE. UU.
La empresa planea centrarse en crear valor a largo plazo mediante un enfoque disciplinado hacia la asignación de capital, priorizando la solidez financiera y las inversiones de bajo riesgo. South Bow tiene la intención de pagar un dividendo base fuerte y sostenible, con el dividendo inaugural previsto para ser declarado el 7 de noviembre de 2024 y pagado el 31 de enero de 2025. Los accionistas de TC Energy registrados el 25 de septiembre de 2024 recibieron una acción ordinaria de South Bow por cada cinco acciones ordinarias de TC Energy que poseían.
South Bow (SOBO)는 TC Energy에서 독립된 회사로 공식 출범했습니다. 이 회사의 주식은 2024년 10월 2일 토론토 증권 거래소에서 거래를 시작할 것이며, 2024년 10월 8일경 뉴욕 증권 거래소에서 거래를 시작할 것으로 예상됩니다. South Bow는 액체 파이프라인 회사입니다 캐나다의 원유 공급을 미국 중서부 및 걸프 코스트 시장과 연결하고 있습니다.
회사는 장기적인 가치를 창출하는 것에 집중할 계획이며, 자본 할당에 대한 엄격한 접근 방식을 통해 재무 건전성과 저위험 투자를 우선시할 것입니다. South Bow는 강력하고 지속 가능한 기본 배당금을 지급할 계획이며, 첫 번째 배당금은 2024년 11월 7일에 발표되고 2025년 1월 31일에 지급될 예정입니다. 2024년 9월 25일 기준으로 TC Energy의 주주들은 소유한 TC Energy 보통주 5주당 South Bow의 보통주 1주를 받았습니다.
South Bow (SOBO) a été officiellement lancé en tant qu'entreprise indépendante, se séparant de TC Energy. Les actions de l'entreprise commenceront à être négociées à la Bourse de Toronto le 2 octobre 2024 et devraient commencer à être négociées à la Bourse de New York vers le 8 octobre 2024. South Bow est une entreprise de pipelines de liquides reliant l'offre de pétrole brut canadien aux marchés du Midwest et de la Côte du Golfe des États-Unis.
L'entreprise prévoit de se concentrer sur la création de valeur à long terme grâce à une approche disciplinée de l'allocation du capital, en donnant la priorité à la solidité financière et aux investissements à faible risque. South Bow entend verser un dividende de base fort et durable, le dividende inaugural devant être déclaré le 7 novembre 2024 et payé le 31 janvier 2025. Les actionnaires de TC Energy inscrits au 25 septembre 2024 ont reçu une action ordinaire de South Bow pour chaque cinq actions ordinaires de TC Energy détenues.
South Bow (SOBO) wurde offiziell als unabhängiges Unternehmen gegründet und hat sich von TC Energy getrennt. Die Aktien des Unternehmens werden am 2. Oktober 2024 an der Toronto Stock Exchange gehandelt, und es wird erwartet, dass sie um den 8. Oktober 2024 auch an der New York Stock Exchange gehandelt werden. South Bow ist ein Unternehmen für Flüssigkeitspipelines, das das Angebot an kanadischem Rohöl mit den Märkten im US-Mittelwesten und an der Golfküste verbindet.
Das Unternehmen plant, sich auf die Schaffung langfristiger Werte durch einen disziplinierten Ansatz bei der Kapitalallokation zu konzentrieren, wobei finanzielle Stärke und risikoarme Investitionen priorisiert werden. South Bow beabsichtigt, eine starke und nachhaltige Basisdividende zu zahlen, wobei die erste Dividende voraussichtlich am 7. November 2024 erklärt und am 31. Januar 2025 ausgezahlt wird. Die Aktionäre von TC Energy, die am 25. September 2024 registriert sind, erhalten eine South Bow-Stammaktie für jeweils fünf gehaltene Stammaktien von TC Energy.
- South Bow (SOBO) launches as an independent, publicly traded company
- Shares to be listed on both Toronto Stock Exchange and New York Stock Exchange
- Company has a strategic corridor and high-quality contractual framework
- Plans to pay a strong and sustainable base dividend
- Focused on low-risk, modest capital investments to enhance and expand pre-capitalized corridor
- None.
Insights
South Bow 's launch as an independent entity marks a significant development in the energy infrastructure sector. The company's strategic focus on liquids pipelines, connecting Canadian crude oil supply to key U.S. markets, positions it well in a robust oil demand environment. Key points to consider:
- Strong market position with high-quality contractual framework and investment-grade financial status
- Disciplined capital allocation strategy, prioritizing financial strength and low-risk investments
- Intention to pay a sustainable base dividend, reflecting stable cash flow expectations
- Trading on TSX (Oct 2) and NYSE (expected Oct 8) under ticker SOBO
The spin-off structure (1 South Bow share for every 5 TC Energy shares) suggests a significant valuation for the new entity. Investors should monitor the initial trading performance and dividend declaration (expected Nov 7) to gauge market reception and yield potential. The company's focus on the crude oil supply chain amid energy transition debates adds an interesting dynamic for long-term investors.
South Bow's emergence as a standalone entity is strategically timed with the current energy market dynamics. The company's focus on connecting Canadian crude to U.S. refineries aligns with ongoing energy security concerns and the resilient demand for oil in key markets. Notable aspects include:
- Positioning in the critical North American energy infrastructure landscape
- Exposure to both Midwest and Gulf Coast refining markets, diversifying demand sources
- Potential to capitalize on the "pre-capitalized corridor", suggesting efficient use of existing assets
The company's emphasis on a "robust backdrop for crude oil supply and demand" indicates confidence in the sector's medium-term outlook, despite global energy transition efforts. Investors should consider how South Bow's pure-play status in liquids pipelines might offer a differentiated investment proposition compared to more diversified energy infrastructure companies. The success of this spin-off could set a precedent for similar moves in the industry.
CALGARY, Alberta, Oct. 01, 2024 (GLOBE NEWSWIRE) -- South Bow Corporation (South Bow) is launching as an independent company after completing its planned separation from TC Energy Corporation (TC Energy). South Bow's common shares will commence trading on the Toronto Stock Exchange (TSX) on Oct. 2, 2024, and are expected to commence trading on the New York Stock Exchange (NYSE) on or about Oct. 8, 2024, under the ticker symbol SOBO.
"Today is an exciting day for South Bow as we start a new chapter of safely and reliably delivering energy and forging progress as a critical North American energy infrastructure company," said Bevin Wirzba, South Bow's President and Chief Executive Officer. "We are confident that as a standalone, publicly traded company, we will unlock significant value from our unrivalled market position. Supported by strong business fundamentals and a robust backdrop for crude oil supply and demand, we are focused on creating long-term value for our customers, communities, employees, and shareholders."
"On behalf of South Bow's leadership team and board of directors, I want to thank our team of founders for their tremendous efforts and dedication in getting us to this new beginning. It is a privilege to launch this company and celebrate this milestone alongside them," added Wirzba.
South Bow is a liquids pipelines company that connects resilient Canadian crude oil supply to the strongest demand and refining markets in the U.S. Midwest and Gulf Coast through its strategic corridor, high-quality contractual framework, and investment-grade financial position. South Bow plans to take a disciplined approach to capital allocation to deliver a compelling return to shareholders, prioritizing strengthening its financial position and pursuing low-risk, modest capital investments that enhance and expand its pre-capitalized corridor. South Bow intends to pay a strong and sustainable base dividend that is underpinned by a stable cash flow profile.
South Bow intends to declare its inaugural dividend on Nov. 7, 2024. The dividend is expected to be paid on Jan. 31, 2025 to shareholders of record on Dec. 31, 2024. Dividends are subject to the discretion and approval of South Bow's board of directors.
South Bow common shares were distributed on Oct. 1, 2024 to TC Energy shareholders of record on Sept. 25, 2024, who received one South Bow common share for every five TC Energy common shares owned.
Forward-looking information and statements
This news release contains certain forward-looking statements and forward-looking information (collectively, forward-looking statements), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on South Bow's current expectations, estimates, projections, and assumptions in light of its experience and its perception of historical trends. All statements other than statements of historical facts may constitute forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as, "anticipate", "will", "expect", "estimate", "potential", "future", "outlook", "strategy", "maintain", "ongoing", "intend", and similar expressions suggesting future events or future performance.
In particular, this news release contains forward-looking statements, including certain financial outlooks, pertaining to, without limitation, the following: statements regarding South Bow's business strategy, areas of focus, and actions taken in relation thereto; expectations about current and future industry activities and market conditions, including their expected impact on South Bow; expectations about future demand for South Bow's infrastructure and services; South Bow's capital structure and allocation, including future actions that may be taken with respect thereto and expectations regarding future cash flows and uses thereof; expectations regarding South Bow's commercial agreements and development opportunities, including the expected timing and benefit thereof; competitive conditions and South Bow's ability to position itself competitively in the industry; expectations regarding the declaration and payment of dividends South Bow intends to pay to shareholders, including expected dividend payment dates; and expected dates when South Bow's common shares will commence trading on the TSX and NYSE.
The forward-looking statements are based on certain assumptions that South Bow has made in respect thereof as at the date of this news release regarding, among other things: oil and gas industry development activity levels and the geographic region of such activity; that favourable market conditions exist and that South Bow has and will have available capital to fund its capital expenditures and other planned spending; prevailing commodity prices, interest rates, inflation levels, carbon prices, tax rates, and exchange rates; the ability of South Bow to maintain current credit ratings; the availability of capital to fund future capital requirements; future operating costs; asset integrity costs; that all required regulatory and environmental approvals can be obtained on the necessary terms in a timely manner; prevailing regulatory, tax, and environmental laws and regulations; and the expectation that South Bow will satisfy the conditions to listing its common shares on the TSX and NYSE in a timely manner.
Although South Bow believes the assumptions and other factors reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these assumptions and factors will prove to be correct and, as such, forward-looking statements are not guarantees of future performance. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and related decisions and requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; the strength and operations of the energy industry; weakness or volatility in commodity prices; non-performance or default by counterparties; actions taken by governmental or regulatory authorities; the ability of South Bow to acquire or develop and maintain necessary infrastructure; fluctuations in operating results; adverse general economic and market conditions; the ability to access various sources of debt and equity capital on acceptable terms; and adverse changes in credit. The foregoing list of assumptions and risk factors should not be construed as exhaustive. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the results implied by forward-looking statements, refer to South Bow's alternative annual information form dated Sept. 30, 2024, available under South Bow's SEDAR+ profile at www.sedarplus.ca and, from time to time, in South Bow's public disclosure documents, available at www.sedarplus.ca, www.sec.gov, and through South Bow's website at www.southbow.com.
The forward-looking statements contained in this news release speak only as of the date hereof. South Bow does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
About South Bow
South Bow safely operates 4,900 kilometres (3,045 miles) of crude oil pipeline infrastructure, connecting Alberta crude oil supplies to U.S. refining markets in Illinois, Oklahoma, and the U.S. Gulf Coast through our unrivalled market position. We take pride in what we do – providing safe and reliable transportation of crude oil to North America's highest demand markets. Based in Calgary, Alberta, South Bow is the spinoff company of TC Energy, with Oct. 1, 2024 marking South Bow's first day as a standalone entity. To learn more, visit www.southbow.com.
Contact information
| Investor Relations | Media Relations |
| Martha Wilmot | Katie Stavinoha |
| investor.relations@southbow.com | communications@southbow.com |
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