Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Citi One-on-One Midstream / Energy Infrastructure Conference 2021
29 slides from Dt Midstream's conference presentation, Aug 18, 2021
Slide 1: Citi One-on-One Midstream / Energy Infrastructure Conference
CITI ONE-ON-ONE MIDSTREAM / ENERGY INFRASTRUCTURE CONFERENCE A U G U ST 1 8 - 1 9, 2 0 2 1
Slide 2: Safe Harbor Statement
New slide Safe Harbor Statement This presentation contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. These forward-looking statements are intended to provide management’s current expectati
Slide 3: Investment thesis
Investment thesis Integrated assets in world class dry Predictable, robust contracted gas basins serving key markets cash flows Appalachia / Haynesville dry gas focus Strong cash flow Integrated asset footprint Long-term contracts Wellhead to market service Sizable take-or-pay commitments Stable bal
Slide 4: Integrated assets in world class basins
Integrated assets in world class basins
Slide 5: Integrated platform in the leading dry gas formations serving growing demand markets
Integrated platform in the leading dry gas formations serving growing demand markets Pipeline segment connects world-class basins to high-quality Eastern Canada markets Northeast • 900 miles of FERC-regulated interstate pipelines that have interconnections with multiple interstate pipelines and LDCs
Slide 6: Diversified earnings contributions from the best dry gas basins and strong markets
Diversified earnings contributions from the best dry gas basins and strong markets 6% 4% 52% 31% 41% Q2 2021 adjusted 34% Q2 2021 adjusted Q2 2021 adjusted EBITDA1 by segment EBITDA by demand area EBITDA by supply area 65% 48% 19% Pipeline and Other Gathering Gulf Coast Midwest Marcellus / Utica Hay
Slide 7: Key demand markets feature positive long-term growth outlooks
Key demand markets feature positive long-term growth outlooks Gulf Coast demand1 Midwest demand Northeast and Mid-Atlantic demand3 Eastern Canada demand4 (Bcf/d) (Bcf/d) (Bcf/d) (Bcf/d) 31% 3% 8% 25 11% 11.3 2.8 54.6 11.0 2.6 19.5 14.5 20 41.5 17.5 5.7 6.2 1.6 11.6 15 8.6 1.6 Other2 11.7 8.4 9.5 10
Slide 8: Appalachia and Haynesville expected to supply the majority of US gas by 2035
Currently the most active dry gas basins, Appalachia and Haynesville are expected to supply the majority of US gas by 2035 US Lower 48 Supply Forecast, US Lower 48 current dry gas rig count1 (Bcf/d) % of 2035 120 Total Supply 110 45 100 ~26% 40 90 Utica 11 80 70 ~23% 60 50 17 ~17% 40 Marcellus 29 30
Slide 9: Haynesville production and area LNG exports are both at historic highs
Haynesville production and area LNG exports are both at historic highs (Bcf/d) Haynesville production US LNG export feedgas 14 14 ~10.5 Bcf/d YTD 2021 average 12 12 10 10 8 8 6 6 4 4 45 rigs 2 currently running - most 2 among dry gas basins1 0 0 2011 2013 2015 2017 2019 2021 2016 2017 2018 2019 2020
Slide 10: Haynesville assets well positioned to deliver wellhead supply to LNG export and Gulf Coast markets
Haynesville assets are well positioned to deliver wellhead supply to LNG export and Gulf Coast markets Bridging the gap between the world class Haynesville basin and growing Gulf Coast and global demand markets • Blue Union / LEAP can be efficiently expanded • LEAP is a 36” 1.0 Bcf/d regional gather
Slide 11: Predictable cash flows supported by strong balance sheet
Predictable cash flows supported by strong balance sheet
Slide 12: Consistent track record of successful organic development and acquisitions
Consistent track record of successful organic development and acquisitions Historical adjusted EBITDA1 growth $710 (millions) $82 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Asset growth timeline ✓ Washington 10 expansion ✓ Bluestone lateral and gathering system in- ✓ NEXUS Pipe
Slide 13: Growth supported by highly stable cash flows backed by long-term fee-based contracts
Growth is supported by highly stable cash flows backed by long-term fee-based contracts Strong cash flow support Underpinned by long-term, fee-based contracts with average life of approximately % MVC / demand nine years ~90% ~90% or flowing gas2 • ~90% of total contribution1 is from MVCs / demand ch
Slide 14: 2021 adjusted EBITDA and operating earnings guidance
2021 adjusted EBITDA and operating earnings guidance Adjusted EBITDA1 Operating Earnings2 (millions) (millions) +7% +7% $710 - $750 $296 - $312 $665 - $703 $277- $293 Positioned for continued success with strong growth outlook for 2021 • 2021 adjusted EBITDA and operating earnings biased to the uppe
Slide 15: On track to achieve 2022 early outlook
On track to achieve 2022 early outlook Adjusted EBITDA1 Operating Earnings2 (millions) (millions) 5% - 7% 5% - 7% $755 - $795 $314 - $330 $710 - $750 $296- $312 Continuing strong growth into 2022 • Currently executing on highly accretive growth investments • Growth across both segments • Strong grow
Slide 16: Confidently executing on projects to deliver 2022 growth
Confidently executing on projects to deliver 2022 growth 2021 - 2022 incremental adjusted EBITDA1 Platform 2022 growth drivers (millions) LEAP Lateral • Contracted step-up growth • New long-term contracts NEXUS Pipeline • Higher rates Pipeline ~$20 - $25 Vector Pipeline • Bluewater Energy Center lat
Slide 17: Robust commercial activity year to date; executing on strategic priorities
Robust commercial activity year to date; executing on strategic priorities driving growth Platform Commercial Activity • Executed new long-term contracts with strong credit customers for a total of ~165 MMcf/d NEXUS Pipeline • Achieving improved rates • Two new market lateral connections Pipeline Mi
Slide 18: Financial policy overview
Financial policy overview Self-funded investment program Industry leading growth $1.2 - $1.7 billion 5% - 7% growth • Growth investment range over the 5-year • 2021 guidance to 2022 early outlook: plan driven by organic opportunities 5% - 7% adjusted EBITDA1 and within existing platforms operating e
Slide 19: Strong balance sheet with no significant debt maturities for seven years
Financial strength is supported by strong balance sheet with no significant debt maturities for seven years 1 Debt maturity profile (billions) $1.1 Maintaining flexible, well-capitalized balance sheet ~$1.0 $1.0 • No significant debt maturities for seven years from initial debt offering • No externa
Slide 20: Mature environmental, social and governance leadership
Mature environmental, social and governance leadership
Slide 21: Leading the industry with a mature ESG program
Leading the industry with a mature environmental, social and governance program Environmental Social Governance • Targeting net zero greenhouse gas • Focusing on the safety, diversity, well- • Focusing on the oversight of emissions by 2050; among the first in being and success of our employees envir
Slide 22: Mature environmental culture and industry leading aspirations
Mature environmental culture and industry leading aspirations Goal of leading environmental stewardship in the industry Annual GHG emissions (million metric tons / year) • Announced net zero emissions target by 2050; among first in sector to establish this goal ~30% – Targeting ~30% emissions reduct
Slide 23: Focusing on diversity, safety, well-being and success of employees, customers and communities
Focusing on the diversity, safety, well-being and success of our employees, customers and communities Embodying a strong safety culture • Safety culture is built on empowerment, training, process safety, proactive risk mitigation and maintaining high safety standards • Consistent safety performance
Slide 24: Committed to ethical and transparent governance practices
Committed to ethical and transparent governance practices Best-in-class governance practices • Structured as C-Corp with separate CEO and Executive Chairman • Incentive plans tied to safety and total shareholder return targets Robert Skaggs, Jr. David Slater Executive Chairman President and CEO • Bo
Slide 25: Clean assets, clean balance sheet, clean story
Clean assets, clean balance sheet, clean story Integrated assets in premier dry gas basins serving key markets Stable balance sheet with low leverage Predictable, robust contracted cash flows Mature environmental, social and governance leadership 25
Slide 26: Appendix
Appendix _ oe Ew’ & Midstream
Slide 27: Adjusted EBITDA and distributable cash flow (DCF) are non-GAAP measures
New slide Adjusted EBITDA and distributable cash flow (DCF) are non-GAAP measures Adjusted EBITDA is defined as GAAP net income attributable to DT Midstream before expenses for interest, taxes, depreciation and amortization, further adjusted to include our proportional share of net income from our e
Slide 28: Operating earnings is a non-GAAP measure
New slide Operating earnings is a non-GAAP measure Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DT Midstream management believes that operating earnings provide a more meaningful representation
Slide 29: Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA
New slide Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA (millions) 2008 2020 1. Includes share of our equity method investees’ earnings before taxes, depreciation and amortization, which we refer to as “EBTDA.” A reconciliation Net income attributable to DT Midstream $
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