DT Midstream, Inc. · NYSE:DTM
DT Midstream — Investor Presentation (November 2022)
24 slides from DT Midstream's investor presentation, November 2022
Slide 1: Premier Natural Gas Midstream Company
PREMIER NATURAL GAS MIDSTREAM COMPANY NOVEM B E R 2022
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: DTM provides a clear, disciplined and balanced investment thesis
DTM provides a clear, disciplined and balanced investment thesis Integrated assets in world class dry Predictable, robust contracted gas basins serving key markets cash flows Haynesville / Appalachia dry gas focus Strong cash flow Integrated asset footprint Long-term take-or-pay contracts Well posit
Slide 4: Integrated platform in the leading dry gas formations serving growing domestic and LNG demand
Integrated platform in the leading dry gas formations serving growing domestic and LNG demand markets DTM Operating Regions Pipelines connect world-class basins to high-quality markets • ~900 miles of FERC-regulated interstate pipelines that have interconnections with multiple interstate pipelines a
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 Portfolio durability Strong growth Well positioned for business mix platforms energy transition 100% Strategically natural gas focused Irreplaceable positioned in the core energy two lowest-c
Slide 6: Executing on our plan to be net zero by 2050
Executing on our plan to be net zero by 2050 Annual GHG emissions (million metric tons / year) ~30% Currently executing – Carbon capture and sequestration – Electric compression – Methane monitoring and reduction technologies – Renewable natural gas connections Opportunities being evaluated – Hydrog
Slide 7: Consistent track record of successful organic development
Consistent track record of successful organic development Historical Adjusted EBITDA1 growth (millions) $810 - $825 $82 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E Natural gas price Natural gas price down cycle down cycle Asset growth timeline ✓ Washington 10 expansio
Slide 8: Revenue is supported by a strong and diverse customer mix with contractual credit enhancements
Revenue is supported by a strong and diverse customer mix with contractual credit enhancements 2022E contribution1 by counterparty credit quality Solid and improving credit profile 100% • Mix of demand pull and supply push customers across our 100% assets 90% • Utility and pipeline customers provide
Slide 9: The Haynesville and Appalachia resource areas served by our assets are highly economic
The Haynesville and Appalachia resource areas served by our assets are highly economic New drill supply curve 2023 - 20251 Breakeven Price (Bcf/d) ($/MMBtu) $5.00 Average 2023 - 2025 Henry Hub forward price2: $4.82/MMBtu $4.50 $4.00 $3.50 $3.00 $2.50 Blue Union / LEAP $2.00 AGS / Stonewall SGC / Blu
Slide 10: Appalachia and the 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, US lower 48 current dry gas rig count1 (Bcf/d) % of 2035 120 Total Supply 110 100 79 ~27% 90 80 70 ~24% 50 60 44 50 Utica 14 ~17% 40 30 ~7% DTM basins
Slide 11: DTM assets are supporting growing LNG export demand
DTM assets are supporting growing LNG export demand US LNG exports (Bcf/d) 24 Cove Point LNG +13 Bcf/d 20 16 ~8 Bcf/d 12 of Louisiana Gulf Coast area LNG export growth 8 through 20301 4 LNG facilities Operational 0 Gulf Coast Under development 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 LNG co
Slide 12: First-of-its-kind carbon neutral "wellhead to water" service offering
First-of-its-kind carbon neutral “wellhead to water” service offering Haynesville / LA Gulf Coast DTM pipeline assets LNG facilities DTM treating plants Operational Blue Union expansion build Under development New electric compression Increasing LEAP capacity by 90% from 1.0 Bcf/d +90% Contracted LE
Slide 13: Advancing our energy transition platform with our initial carbon capture and sequestration project
Advancing our energy transition platform with our initial carbon capture and sequestration project Louisiana CCS project area Leveraging our strong expertise and integrated asset platform to advance carbon capture and sequestration • Utilizing CO2 from DTM owned treating facilities • Constructing ne
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) In-service Project Status date(s) Stonewall expansion Q2 2022 Completed Michigan Gathering to intrastate pipeline conversion Q4 2022 On track Pipeline Haynesville LEAP pipeline expansion – Phase 1
Slide 16: Delivering strong Adjusted EBITDA growth
Delivering strong Adjusted EBITDA growth Adjusted EBITDA1 (millions) 950 Original guidance / outlook Increased 2022 guidance 900 Guidance / outlook increase $865 - $905 • Strong base business performance across both 850 segments and regions $810 - $825 800 • Includes uplift from Millennium Pipeline
Slide 17: Strong balance sheet with no near-term debt maturities
Strong balance sheet with no near-term debt maturities Debt maturity profile1 (billions) $1.1 Maintaining flexible, well-capitalized balance sheet $1.0 • Upsized $750 million committed revolver to $1 billion and extended maturity by another year to 2027 $0.6 • $355 million of cash on hand2 $0.4 • Cu
Slide 18: Operating in an environmentally sensitive, safe, and socially responsible manner
Operating in an environmentally sensitive, safe, and socially responsible manner Achieving top-decile methane intensity performance Gathering segment methane Pipeline segment methane intensity intensity 2020 to 2021 2020 to 2021 35% 25% Fostering a strong safety culture Employee total recordable Emp
Slide 19: Committed to a leading environmental, social and governance program
Committed to a leading environmental, social and governance program Environmental Social Governance • Targeting net zero greenhouse gas • Established $4 million charitable fund for • Strong C-Corp governance with separate emissions by 2050 and a 30% reduction community investment Chairman and CEO by
Slide 20: Committed to strong governance practices
Committed to strong governance practices DT Midstream Board Members 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 Robert Skaggs, Jr. Wright Lassiter III Executive Chairman Lead I
Slide 21: 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 21
Slide 22: Appendix
Appendix _ oe Ew’ & Midstream
Slide 23: 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, and loss from financing activities, further adjusted to include our proport
Slide 24: 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 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 $ 38 o