South Bow Stock Plunges 4.94% After Keystone Pipeline Shutdown

On April 10, 2025, South Bow's stock experienced a significant drop of 4.94% during pre-market trading, reflecting investor concerns and market reactions to recent developments.

South Bow Corp. has declared a force majeure on the Keystone pipeline following an oil spill in North Dakota. The incident, which occurred at Milepost 171, resulted in the release of approximately 3,500 barrels of oil, prompting the company to shut down the pipeline and initiate response measures.

The spill has led to a widening of the Canadian crude oil discount to US oil, as the pipeline remains shut down. This incident has caused South Bow's stock to tumble to its lowest level since October, highlighting the impact of operational disruptions on the company's market performance.

Despite the containment of the oil spill and the isolation of the ruptured segment, the uncertainty surrounding the incident continues to weigh on investor sentiment. The company's response to the spill and the subsequent market reaction underscore the importance of operational integrity and risk management in the energy sector.