Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Investor Presentation (November 2022)
24 slides from Dt Midstream's investor presentation, Nov 21, 2022
Slide 1: Premier Natural Gas Midstream Company, November 2022
PREMIER NATURAL GAS MIDSTREAM COMPANY NOVEMBER 2022 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: DTM provides a clear, disciplined and balanced investment thesis
DTM provides a clear, disciplined and balanced investment thesis Integrated assets in world class dry gas basins serving key markets Haynesville / Appalachia dry gas focus Integrated asset footprint Well positioned for energy transition Predictable, robust contracted cash flows Strong cash flow Long
Slide 4: Integrated platform in the leading dry gas formations serving domestic and LNG demand
Integrated platform in the leading dry gas formations serving growing domestic and LNG demand 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 • Gas storage
Slide 5: Growing and durable pure play natural gas business positioned for today and the future
Growing and durable pure play natural gas business that is positioned for today and the future Well balanced business mix 55% 45% Q3 2022 Adjusted EBITDA1 Pipeline Gathering 6% Increase in pipeline segment contribution since 2020 Portfolio durability 100% natural gas focused ~90% of 2021 total contr
Slide 6: Executing on our plan to be net zero by 2050
Executing on our plan to be net zero by 2050 Currently executing – Carbon capture and sequestration – Electric compression – Methane monitoring and reduction technologies – Renewable natural gas connections Opportunities being evaluated – Hydrogen – Solar – Biosequestration Annual GHG emissions (mil
Slide 7: Consistent track record of successful organic development
Consistent track record of successful organic development Historical adjusted EBITDA1 growth (millions) ~18% CAGR $82 $810 - $825 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E Natural gas price down cycle Natural gas price down cycle Asset growth timeline Washington 10
Slide 8: Revenue supported by a strong and diverse customer mix with credit enhancements
Revenue is supported by a strong and diverse customer mix with contractual credit enhancements 2022E contribution1 by counterparty credit quality 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Over 85% Investment grade and “Rising Stars”2 100% Investment grade & "rising stars" Non-investment grade with
Slide 9: Haynesville and Appalachia resource areas served by our assets are highly economic
The Haynesville and Appalachia resource areas served by our assets are highly economic New drill supply curve 2023 - 20251 (Bcf/d) Breakeven Price ($/MMBtu) Average 2023 - 2025 Henry Hub forward price2: $4.82/MMBtu $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Blue Union / LEAP A
Slide 10: Appalachia and Haynesville expected to supply half of US gas by 2035
Currently the most active dry gas basins, Appalachia and the Haynesville, are expected to supply half of US gas by 2035 US Lower 48 Supply Forecast, (Bcf/d) 120 110 100 90 80 70 60 50 40 30 20 10 2020 2025 2030 2035 % of 2035 Total Supply ~27% ~24% ~17% ~7% ~25% DTM basins ~50% of anticipated US sup
Slide 11: DTM assets are supporting growing LNG export demand
DTM assets are supporting growing LNG export demand Arkansas Mississippi HAYNESVILLE SHALE Blue Union Gathering LEAP Lateral Texas Louisiana Golden Pass Sabine Pass Lake Charles Driftwood Cameron CP2 Calcasieu Pass Plaquemines Gulf Coast LNG corridor Cove Point LNG MARCELLUS SHALE Appalachia Gatheri
Slide 12: First-of-its-kind carbon neutral wellhead to water service offering
First-of-its-kind carbon neutral “wellhead to water” service offering Increasing LEAP capacity by 90% from 1.0 Bcf/d to 1.9 Bcf/d through three phases of expansion • Multiple capital efficient, low-risk expansions will provide timely access to growing LNG demand • Recently announced phase 3 Haynesvi
Slide 13: Advancing energy transition platform with initial carbon capture and sequestration project
Advancing our energy transition platform with our initial carbon capture and sequestration project Louisiana CCS project area Texas Louisiana Gillis Hub Third party treating facility annual reported CO2 emissions (2020) 12,500-50,000 mtCO2e 50,000-100,000 mtCO2e 100,000-250,000 mtCO2e DTM pipeline a
Slide 14: Increased ownership in a premier natural gas asset serving key demand markets
Increased ownership in a premier natural gas asset serving key demand markets Transaction overview • Acquired additional 26.25% ownership interest in Millennium Pipeline, bringing DTM’s total ownership to 52.5% • ~$552 million purchase price represents a 10x multiple of 2023 Adjusted EBITDA1 • Immed
Slide 15: Significant growth projects across both platforms
Significant growth projects across both platforms Contracted growth investments (new projects in bold) Project In-service date(s) Status Pipeline Stonewall expansion Q2 2022 Completed Michigan Gathering to intrastate pipeline conversion Q4 2022 On track Haynesville LEAP pipeline expansion – Phase 1
Slide 16: Delivering strong Adjusted EBITDA growth
Delivering strong Adjusted EBITDA growth Increased 2022 guidance • Strong base business performance across both segments and regions • Includes uplift from Millennium Pipeline acquisition Raised 2023 early outlook • Full-year Millennium Pipeline acquisition uplift of ~$55 million • 2023 guidance wil
Slide 17: Strong balance sheet with no near-term debt maturities
Strong balance sheet with no near-term debt maturities Maintaining flexible, well-capitalized balance sheet • Upsized $750 million committed revolver to $1 billion and extended maturity by another year to 2027 • $355 million of cash on hand2 • Current leverage ratio of 3.4x3; committed to long-term
Slide 18: Operating in an environmentally sensitive, safe, and socially responsible manner
Operating in an environmentally sensitive, safe, and socially responsible manner DT Midstream DT Midstream Corporate Sustainability Report | 2022 Achieving top-decile methane intensity performance Gathering segment methane intensity 2020 to 2021 Pipeline segment methane intensity 2020 to 2021 35% 25
Slide 19: Committed to a leading environmental, social and governance program
Committed to a leading environmental, social and governance program Environmental • Targeting net zero greenhouse gas emissions by 2050 and a 30% reduction by 2030 • Continuing to advance CCS opportunity in Louisiana • Advancing hydrogen development opportunities with strategic partnership • Joined
Slide 20: Committed to strong governance practices
Committed to strong governance practices Best-in-class governance practices • Structured as C-Corp with separate CEO and Executive Chairman • Long-term incentive plans tied to total shareholder return targets • Board committee focused on ESG initiatives • Broad range of experience and diversity • Fi
Slide 21: Clean assets, clean balance sheet, clean story
Clean assets, clean balance sheet, clean story DT Midstream 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 DT Midstream 21
Slide 22: Appendix
Appendix ~ a EW ff Midstrea
Slide 23: Adjusted EBITDA and distributable cash flow (DCF) are non-GAAP measures
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 our proportional shar
Slide 24: Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA
Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA (millions) 2008 Net income attributable to DT Midstream $ 38 Plus: Interest expense 7 Plus: Income tax expense 24 Plus: Depreciation and amortization 5 Plus: EBTDA from equity method investees1 31 Plus: Adjustments for non-