South Bow Corp
For the period ended Dec 31, 2024. Filed Mar 6, 2025.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2024 · Filed Mar 6, 2025
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Contents
EX-99.3 · Normalized EBITDA
Normalized EBITDA
Normalized EBITDA is used as a measure of earnings from ongoing operations. Management uses this measure to monitor and evaluate the financial performance of the Company’s operations and to identify and evaluate trends. This measure is useful for investors as it allows for more comparable performance of the Company across periods for ongoing operations. Normalized EBITDA represents income before income taxes adjusted for the normalizing items, in addition to excluding charges for depreciation and amortization, interest expense, and interest income.
The following table reconciles income before taxes to normalized EBITDA for the three months and year ended December 31, 2024 and 2023:
| Three Months Ended December 31, | Year Ended December 31, | |||
|---|---|---|---|---|
| U.S.$ millions | 2024 | 2023 | 2024 | 2023 |
| Income before income taxes | 72 | 131 | 418 | 562 |
| Adjusted for specific items: | ||||
| Depreciation and amortization | 62 | 61 | 246 | 244 |
| Interest expense | 84 | 105 | 388 | 220 |
| Interest income and other | 28 | (7) | (12) | (32) |
| Risk management instruments | 57 | (15) | 8 | 25 |
| Keystone variable toll disputes | (3) | — | 8 | 42 |
| Milepost 14 costs | 4 | — | 4 | — |
| Separation costs | (1) | 3 | 29 | 3 |
| Keystone XL costs and other | (13) | — | 2 | 10 |
| Normalized EBITDA | 290 | 278 | 1,091 | 1,074 |
The following table reconciles income (loss) before income tax to normalized EBITDA by operating segment for the years ended December 31, 2024 and 2023:
| Year Ended December 31, 2024 | ||||
|---|---|---|---|---|
| U.S.$ millions | Keystone Pipeline System | Marketing | Intra-Alberta & Other | Total |
| Income (loss) before income taxes | 778 | 6 | (366) | 418 |
| Adjusted for specific items: | ||||
| Depreciation and amortization | 238 | — | 8 | 246 |
| Interest expense | 1 | 1 | 386 | 388 |
| Interest income and other | (3) | (3) | (6) | (12) |
| Risk management instruments | — | 8 | — | 8 |
| Keystone variable toll disputes | 8 | — | — | 8 |
| Milepost 14 costs | 4 | — | — | 4 |
| Separation costs | — | — | 29 | 29 |
| Keystone XL costs and other | 2 | — | — | 2 |
| Segment normalized EBITDA | 1,028 | 12 | 51 | 1,091 |
| Year Ended December 31, 2023 | ||||
|---|---|---|---|---|
| U.S.$ millions | Keystone Pipeline System | Marketing | Intra-Alberta & Other | Total |
| Income (loss) before income taxes | 687 | 19 | (144) | 562 |
| Adjusted for specific items: | ||||
| Depreciation and amortization | 239 | — | 5 | 244 |
| Interest expense | 7 | 2 | 211 | 220 |
| Interest income and other | (4) | (4) | (24) | (32) |
| Risk management instruments | — | 25 | — | 25 |
| Keystone variable toll disputes | 42 | — | — | 42 |
| Separation costs | — | — | 3 | 3 |
| Keystone XL costs and other | 10 | — | — | 10 |
| Segment normalized EBITDA | 981 | 42 | 51 | 1,074 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.