South Bow Corp

Capital Program

1. Supplementary financial measure to assist the reader in understanding the Company's capital investments and capital allocation decisions. Refer to the Supplementary Financial Measures section of this MD&A for additional details.

2. Maintenance capital expenditures are generally recoverable through South Bow's tolling arrangements.

Total capital expenditures were $13 million and $21 million, respectively, for the three and six months ended June 30, 2026, compared to $43 million and $107 million in the respective 2025 periods.

Growth capital expenditures were lower during the three and six months ended June 30, 2026 compared to the same periods in 2025, attributable to designating the Blackrod Connection Project commercially in-service on March 1, 2026. Growth capital investments made during the 2026 period include investments made for the Blackrod Connection Project, land purchases, and the Prairie Connector Project (refer to Recent Developments section of this MD&A for details).

Maintenance capital expenditures include investments made to support the Company's operations as well as spending for key infrastructure used by the Company. Lower maintenance capital expenditures during the three and six months ended June 30, 2026 compared to the 2025 periods was primarily attributable to reduced one-time capital investments to support the Spinoff, including information systems and leasehold improvements, and higher maintenance capital investments on the Keystone Pipeline System.

Separation capital expenditures during the three and six months ended June 30, 2025 represent the development of one-time capital investments to support the Spinoff transition, including information system infrastructure.