South Bow Corp
For the period ended Dec 31, 2024. Filed Mar 6, 2025.
View on SEC.govAbout this filing
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
Use the contents to explore the available documents and sections.
Contents
EX-99.2 · Offsetting of Derivative Instruments
Offsetting of Derivative Instruments
South Bow enters into commodity derivative contracts with the right to offset in the normal course of business as well as in the event of default. The Company has no master netting agreements; however, similar contracts are entered into containing rights to offset.
The Company has elected to present the fair value of derivative instruments with the right to offset on a gross basis on the consolidated balance sheets.
The following tables show the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis:
| As at December 31, 2024 | Gross Derivative Instruments | Amounts Available for Offset 1 | Net Amounts |
|---|---|---|---|
| U.S.$ millions | |||
| Derivative instrument assets | 188 | (187) | 1 |
| Derivative instrument liabilities | (219) | 187 | (32) |
- Amounts available for offset do not include cash collateral pledged or received.
| As at December 31, 2023 | Gross Derivative Instruments | Amounts Available for Offset 1 | Net Amounts |
|---|---|---|---|
| U.S.$ millions | |||
| Derivative instrument assets | 527 | (516) | 11 |
| Derivative instrument liabilities | (552) | 516 | (36) |
- Amounts available for offset do not include cash collateral pledged or received.
With respect to the derivative instruments presented above, the Company provided cash collateral of $66 million and letters of credit of $16 million at December 31, 2024 (2023 – $70 million andnil, respectively) to its counterparties. At December 31, 2024, the Company heldno cash collateral and $70 million in letters of credit (2023 –nil and $3 million, respectively) from counterparties on asset exposures.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.