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CIBC expects markets to treat South Bow variable toll as one-time item

CIBC analyst Robert Catellier notes that Keystone made a compliance filing with the FERC on the variable toll issue, with Keystone estimating that it owes about $21.9M in reparations and refunds to shippers, including interest, through December 31, 2024. This amount is prior to indemnities and for prior years, notes the firm, which expects markets to treat it as a one-time item rather than placing a multiple on it. The firm, which maintains its view that it is “not likely to be material,” reiterates a Neutral rating and $23 price target on South Bow shares.

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