Slide 1: Fourth Quarter 2023 Earnings Call
Fourth Quarter 2023 Earnings Call February 16, 2024 Ammons compressor station Appalachia Gathering System phase 2 expansion DT Midstream
Slide 2: Safe Harbor Statement
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 expectations or pla
Slide 3: DT Midstream Investment Thesis
DT Midstream Investment Thesis Pure play natural gas midstream portfolio ~65% pipeline segment1; highest in sector2 ~9-year contract tenor3 No commodity exposure Integrated wellhead to market service Premium shareholder returns Distinctive Adjusted EBITDA4 growth of 10%5 Consistent dividend growth o
Slide 4: 2023 Year in Review
2023 Year in Review Delivering on our commitments and building for the future Delivered strong growth and financial results exceeding guidance Executed growth investments ahead of schedule and on budget Positioned assets to ramp into growing gas demand Advanced energy transition platform DT Midstrea
Slide 5: 2023 Year in Review: Financial Results
2023 Year in Review: Financial Results Strong financial performance across key metrics Distinctive growth $924 million Adjusted EBITDA1 10% YoY and exceeded guidance midpoint Growing return of capital 7% annual dividend growth2 2.6x dividend coverage ratio3 Irreplaceable natural gas pipeline portfol
Slide 6: 2023 Year in Review: Completed Growth Investments
2023 Year in Review: Completed Growth Investments Organic growth projects placed in-service early and on budget Market Project Key accomplishment First-mover advantage Gulf Coast / LNG LEAP phase 1 & 2 expansions (in-service early) +700 MMcf/d of capacity Positioned for demand ramp Gulf Coast / LNG
Slide 7: 2023 Year in Review: Executing on Organic Growth
2023 Year in Review: Executing on Organic Growth Executed new commercial agreements to serve key demand markets Northeast Appalachia Gathering System phase 3: Incremental 60 MMcf/d mainline capacity Tioga Gathering: Incremental 70 MMcf/d capacity Ohio Utica Gathering System: >200 MMcf/d gathering ba
Slide 8: Delivering Distinctive and Predictable Growth
Delivering Distinctive and Predictable Growth Track record of strong growth Historical Adjusted EBITDA1 (Millions) 9% CAGR $720 2020 $778 2021 $841 2022 $924 2023 Relative Growth 2020-2023 Adjusted EBITDA CAGR2 9% DT Midstream 4% Peer average3 Well positioned assets and take-or-pay contract structur
Slide 9: Full Year Financial Results
Full Year Financial Results Distinctive financial growth Adjusted EBITDA1 (millions) xx segment % of total +10% $814 $486 58% $355 42% 2022 $924 $581 63% $343 37% 2023 Pipeline Gathering Pipeline LEAP expansions Increased ownership in Millennium pipeline Higher Washington 10 storage rates Gathering
Slide 10: Continuing Our Track Record of Distinctive Growth
Continuing Our Track Record of Distinctive Growth Targeting long-term Adjusted EBITDA growth of 5-7% Adjusted EBITDA1 (millions) +6% $930 - $980 2024 guidance $980 - $1,040 2025 early outlook 5-7% long-term growth rate Differentiated growth drivers $1.3 billion organic growth project backlog Tangibl
Slide 11: Committed Growth Investment Summary
Committed Growth Investment Summary Continue to advance short-cycle growth investments Project Expected in-service dates Pipeline Haynesville LEAP pipeline expansion - phase 2 In-service Haynesville LEAP Gillis Access interconnect Q2 2024 Haynesville LEAP pipeline expansion - phase 3 Q3 2024 Gatheri
Slide 12: 2024 Growth Capex
2024 Growth Capex Flexible capital budget, fully funded within cash flows Growth capex (millions) ~$100 Committed growth capex (prior disclosure) ~$35 Deferral from 2023 to 2024 $95 - $125 New growth projects added in Q4 2023 Cash flow after dividends $70 - $115 Highly probable (pre-FID1 projects) F
Slide 13: Disciplined Capital Investment
Disciplined Capital Investment Self-funding highly accretive organic growth projects Growth capex (millions) Committed Pre-FID 2023 original guidance $677 2023 actuals1 $300 - $375 2024 guidance2 ~$50 2025 Flexible, short-cycle, capital investments Total committed capex of ~$300 million over 2024/20
Slide 14: Sizeable Organic Project Backlog
Sizeable Organic Project Backlog Balanced opportunity set across all business segments Pipeline Project Contribution Status LEAP phase 1 expansion Aug. 2023 In-service LEAP phase 2 expansion Dec. 2023 In-service LEAP Gillis Access interconnect Q2 2024 In development LEAP phase 3 expansion Q3 2024 In
Slide 15: Dividend Growth
Dividend Growth Consistent return of capital via dividend increases Annualized dividend (per share) 7% CAGR 2.40 2021 actual 2.56 2022 actual 2.76 2023 actual +7% 2.94 20241 Financial policy is to provide a growing and durable dividend Plan to grow dividend 5-7% annually, in-line with Adjusted EBITD
Slide 16: 2024/2025 Guidance Summary
2024/2025 Guidance Summary (millions, except EPS) Guidance 2024 Adjusted EBITDA1 $930 - $980 2024 Operating Earnings2 $335 - $375 2024 Operating EPS2 $3.43 - $3.83 2024 Distributable Cash Flow3 $640 - $700 2024 Capital Expenditures4 $330 - $415 Growth Capital $300 - $375 Maintenance Capital $30 - $4
Slide 17: Pure Play Natural Gas Midstream Portfolio
Pure Play Natural Gas Midstream Portfolio Integrated pipeline platform in leading gas basins serving growing markets Pipelines connect world-class basins to high-quality markets ~900 miles of FERC-regulated interstate pipelines that have interconnections with multiple interstate pipelines and LDCs ~
Slide 18: Diversified Asset Base Anchored by Strong Pipeline Segment
Diversified Asset Base Anchored by Strong Pipeline Segment Highest natural gas pipeline asset contribution in sector1 Business mix (% of total 2023 Adjusted EBITDA2) Gathering 37% Ohio Utica <1% Tioga <1% AGS 11% Blue Union 14% Susquehanna 12% Pipeline 63% Millennium 13% NEXUS 11% LEAP 11% Stonewall
Slide 19: High Quality Cash Flows and Customers
High Quality Cash Flows and Customers Cash flows are underpinned by take-or-pay contracts and high credit quality customers Total revenue contribution (% of 2023 contribution1) ~90% demand / MVC or flowing gas2 Customer credit (% of 2023 contribution) ~85% Investment grade and "Rising star3" Non-inv
Slide 20: Positioned to Serve In-flight LNG Export Demand
Positioned to Serve In-flight LNG Export Demand LNG growth of ~7 Bcf/d within LEAP's corridor is not subject to DOE permit approvals Forecasted US LNG export capacity growth1 (bcf/d) ~16 Bcf/d 12.9 2023 17.3 4.4 12.9 2025 21.5 8.6 12.9 2027 25.8 1.4 0.5 11.0 12.9 2029 28.5 4.1 0.5 11.0 12.9 2031 Ope
Slide 21: New Haynesville Takeaway Capacity is Needed to Meet LNG Demand
New Haynesville Takeaway Capacity is Needed to Meet LNG Demand LEAP offers lower-risk, capital efficient expansion opportunity, proving timely access to LNG demand Forecasted Louisiana Gulf Coast area LNG capacity growth1 vs announced Haynesville takeaway expansions2 (Cumulative growth from 2023, bc
Slide 22: Increasing LEAP Expansion Potential
Increasing LEAP Expansion Potential Market fundamentals driving greater demand for Haynesville to Gulf Coast pipeline capacity Phase 3 LEAP expansion on track and on budget to increase capacity from 1.7 Bcf/d to 1.9 Bcf/d All pipeline crossings completed early Project includes a combination of loopi
Slide 23: Louisiana Carbon Capture and Sequestration
Louisiana Carbon Capture and Sequestration Disciplined approach to CCS project Illustrative Carbon Capture and Sequestration process Natural gas treating facility Equipment captures CO2 from treating plants CO2 Dedicated CO2 pipeline transports supercritical phase CO2 to storage site Permanent seque
Slide 24: Louisiana Carbon Capture and Sequestration: Project timeline
Louisiana Carbon Capture and Sequestration Disciplined approach to CCS project Project timeline Capital deployment Q4 2022 Class VI well permit filing Conducted 3D seismic survey Q2 2023 Class V test well permit filing 1H 2024 Class V test well permit approved Drill Class V test well Current stage E
Slide 25: Strong balance sheet, free of near-term debt maturities
Strong balance sheet, free of near-term debt maturities Expecting investment grade credit rating in 2024 Debt maturity profile ($ billions) Long-term debt Undrawn revolver capacity Drawn revolver balance No significant maturities for 4 years 2024 2025 2026 $1.0 $0.8 $0.2 2027 $0.4 2028 $1.1 2029 203
Slide 26: Appendix
Appendix DT Midstream 26
Slide 27: Ohio Utica System Initial Trunkline Construction Completed
Ohio Utica System Initial Trunkline Construction Completed Overall construction progressing ahead of schedule Vector Pipeline Washington 10 Storage Complex Michigan Direct access to premium markets Pennsylvania NEXUS Pipeline Kensington Ohio DTM initial focus area Berne Seneca West Virginia Third-pa
Slide 28: DTM Assets are Strategically Connected to Growing Demand
DTM Assets are Strategically Connected to Growing Demand LEAP offers 3.5 Bcf/d of direct connectivity to LNG markets Carthage Hub Louisiana DTM assets Third Party Pipelines DTM treating plants ANR LNG facilities Cameron Operational Columbia Gulf Under Construction (DOE Approved Creole Trail Pre-FID
Slide 29: Strong Long-term Production Outlook in Both Basins
Strong Long-term Production Outlook in Both Basins Haynesville and Appalachia production are expected to experience significant growth over the next decade Historical production (bcf/d) Haynesville Appalachia 60 50 40 30 20 10 0 2018 2019 2020 2021 2022 2023 2024 DUC inventory1 Haynesville 415 667 7
Slide 30: Executing a Leading ESG Program
Executing a Leading ESG Program MSCI ESG RATINGS AA CCC B BB BBB A AA AAA Second highest MSCI rating among midstream peers Environmental Continuing to advance CCS opportunity in Louisiana Advancing hydrogen development opportunities with strategic partnership Transitioning to net zero GHG emissions
Slide 31: Full-Year Financial Results
Full-Year Financial Results (millions, except EPS) 2022 2023 Change Adjusted EBITDA1 $841 $924 10% Pipeline segment $486 $581 20% Gathering segment $355 $343 (3%) Operating Earnings2 $339 $384 13% Operating EPS2 $3.48 $3.94 13% Distributable Cash Flow3 $647 $700 8% Growth Capital4 $873 $6775 22% Mai
Slide 32: Quarterly Financial Results
Quarterly Financial Results (millions, except EPS) Q3 2023 Q4 2023 Adjusted EBITDA1 $236 $239 Pipeline segment $145 $156 Gathering segment $91 $83 Operating Earnings2 $91 $121 Operating EPS2 $0.94 $1.24 Distributable Cash Flow3 $193 $159 Growth Capital4 $1565 $1055 Maintenance Capital $11 $7 DT Mids
Slide 33: Fourth Quarter 2023 Financial Results
Fourth Quarter 2023 Financial Results Adjusted EBITDA1 (millions) xx segment % of total $236 $145 61% $91 39% Q3 2023 $239 $156 65% $83 35% Q4 2023 Gathering Pipeline Pipeline Full quarter of LEAP phase 1 expansion in-service Higher revenue on pipeline joint ventures and Washington 10 storage Gather
Slide 34: Gathering Volume Summary
Gathering Volume Summary Haynesville throughput (bcf/d) Blue Union Gathering Q1 2023 1.63 Q2 2023 1.53 Q3 2023 1.60 Q4 2023 1.56 Impact of producer activity deferrals in Q4 2023 Northeast throughput (bcf/d) Susquehanna Gathering Appalachia Gathering Tioga Gathering Q1 2023 1.36 Q2 2023 1.39 Q3 2023
Slide 35: Balanced Partnership Governance Structures
Balanced Partnership Governance Structures Joint Venture Asset Ownership Operator Original Developer Independently Managed Owner Managed MILLENNIUM PIPELINE COMPANY, L.L.C. NEXUS SM GAS TRANSMISSION Vector Pipeline DT Midstream Stonewall DT Midstream 52.5% TC Energy 47.5% DT Midstream 50% Enbridge 5
Slide 36: Joint Venture Debt Details
Joint Venture Debt Details Annual debt paydowns at Millennium and Vector DTM proportionate share Asset (DTM ownership %) End of year debt balances 2023 2024 2025 NEXUS Pipeline (50%) $371 $371 $371 Millennium Pipeline (52.5%) $144 $129 $114 Vector Pipeline (40%) $31 $29 $26 Interest expense 2023 202
Slide 37: Non-GAAP Definitions
Non-GAAP Definitions 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, and loss from financing activities, further adjusted to include
Slide 38: Non-GAAP Definitions
Non-GAAP Definitions Operating Earnings and Operating Earnings per share are non-GAAP measures 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 Earni
Slide 39: Non-GAAP Reconciliations: Reported to Operating Earnings
Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings Three Months Ended December 31, 2023 September 30,2023 Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings (millions) Adjustments
Slide 40: Non-GAAP Reconciliations: Operating Earnings per diluted share
Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings per diluted share(2) Three Months Ended December 31, 2023 September 30, 2023 Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings (
Slide 41: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Three Months Ended Year Ended December 31, 2023 September 30, 2023 December 31, 2023 December 31, 2022 Consolidated (millions) Net Income Attributable to DT Midstream $ 121 $ 91 $ 384 $ 370 Plus: In
Slide 42: Non-GAAP Reconciliations: Adjusted EBITDA Pipeline Segment
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment Three Months Ended Year Ended December 31, 2023 September 30, 2023 December 31, 2023 December 31, 2022 Pipeline (millions) Net Income Attributable to DT Midstream $ 93 $ 64 $ 278 $
Slide 43: Non-GAAP Reconciliations: Adjusted EBITDA Gathering Segment
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment Three Months Ended Year Ended December 31, 2023 September 30 ,2023 December 31, 2023 December 31, 2022 Gathering (millions) Net Income Attributable to DT Midstream $ 28 $ 27 $ 106
Slide 44: Non-GAAP Reconciliations: Distributable Cash Flow
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow Three Months Ended Year Ended December 31, 2023 September 30, 2023 December 31, 2023 December 31, 2022 (millions) Net Income Attributable to DT Midstream $ 121 $ 91 $ 384 $ 370 Plus: Interes
Slide 45: Non-GAAP Reconciliations: Adjusted EBITDA Years 2021 and 2020
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Year Ended December 31, 2021 December 31, 2020 Net Income Attributable to DT Midstream $ 307 $ 312 Plus: Interest expense 112 113 Plus: Income tax expense 104 116 Plus: Depreciation and amortization