Dt Midstream, Inc. · NYSE:DTM

Dt Midstream — Q4 2022 Earnings Presentation

32 slides from Dt Midstream's earnings presentation, Feb 16, 2023

  1. Slide 1: Fourth Quarter 2022 Earnings Call

    FOURTH QUARTER 2022 EARNINGS CALL FEBRUARY 16, 2023

  2. 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

  3. Slide 3: Midstream Investment Thesis

    Midstream Investment Thesis Clean assets, clean balance sheet, clean story Integrated assets in the Mature environmental, Highly contracted Strong balance sheet two best dry gas basins social and governance cash flows with low leverage serving key markets leadership • Haynesville / Appalachia • Long

  4. Slide 4: 2022 Year in Review

    2022 Year in Review Exceeded our financial plan Advanced our ESG agenda $370 million $830 million net income Adjusted EBITDA1 CO2 $647 million +7% Inaugural Filed for Class VI permit Awarded top ranking for Distributable Cash Flow2 dividend increase from 2021 sustainability report for CCS3 project c

  5. Slide 5: Exceeded Our 2022 Financial Plan

    Exceeded Our 2022 Financial Plan Continued track record of strong performance Original guidance Actual Adjusted EBITDA1 Quarterly dividend Distributable Cash Flow2 (millions) (per share) (millions) +8% +7% +9% $830 $0.64 $647 $596 $575 - $625 $770 - $810 $0.60 $768 $500 - $550 $710 - $750 2021 2022

  6. Slide 6: Fourth Quarter 2022 Financial Results

    Fourth Quarter 2022 Financial Results Pipeline segment grows to 61% of overall business Adjusted EBITDA1 (millions), xx segment % of overall +10% Pipeline $227 • Fourth quarter benefit of Millennium Pipeline $207 acquisition • Strong short-term revenues from pipeline joint $139 61% ventures, LEAP an

  7. Slide 7: All-time High in Gathered Volumes

    All-time High in Gathered Volumes Volume growth enabled by contracted expansion projects Haynesville throughput (bcf/d) 1.57 1.66 1.70 Haynesville 1.55 1.53 • Higher production volumes on Blue Union driven by new capacity Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Northeast throughput1 (bcf/d) Susqueha

  8. Slide 8: Strong Financial Outlook

    Strong Financial Outlook Well-positioned to continue our strong performance Adjusted EBITDA1 Quarterly dividend Distributable Cash Flow2 (millions) (per share) (millions) +9% CAGR +8% +8% $920 - $970 $0.69 $625 - $675 $880 - $920 $0.64 $575 - $625 $770 - $810 2022 original 2023 updated 2024 early 20

  9. Slide 9: Distinctive Adjusted EBITDA Growth

    Distinctive Adjusted EBITDA Growth Growth through 2024 is underpinned by contracted investments Adjusted EBITDA1 (millions) +9% CAGR $920 - $970 $880 - $920 • Significant growth across both Pipeline and Gathering segments, in both Haynesville and +$15 million Appalachia $770 - $810 from early outloo

  10. Slide 10: Increasing Dividend by 8%

    Increasing Dividend by 8% Strengthening total shareholder returns with dividend increase Quarterly dividend (per share) +8% Long-term contracted cash flows support 8% $0.69 dividend increase +7% • Dividend of $0.69 per share for Q1 2023 $0.64 Financial policy is to maintain a durable and $0.60 growi

  11. Slide 11: Maintaining Balance Sheet Strength and Financial Flexibility

    Maintaining Balance Sheet Strength and Financial Flexibility Committed to achieving investment grade credit rating Highly contracted No near-term debt Strong liquidity Low leverage cash flows maturities • ~$690 million of available • ~90% of 2022 total • 3.8x leverage ratio3 • No debt maturities unt

  12. Slide 12: Updated Long-Term Capital Outlook

    Updated Long-Term Capital Outlook Disciplined capital investment approach to deliver shareholder value Five-year capital outlook (billions) Equity value creation $1.7 - $2.2 Incremental cash flow $1.2 - $1.7 Updated five-year capital outlook supports long-term value creation • Strong organic growth

  13. Slide 13: 2023 Capital Investment Guidance

    2023 Capital Investment Guidance Significant construction activity in 2023 backed by contracted projects Capital investment guidance (millions) Growth1 Maintenance $605 - $690 $30 - $40 • Capital investments are backed by long-term take-or-pay agreements • All projects are on schedule and on budget

  14. Slide 14: Growth Project Summary

    Growth Project Summary Fully-contracted growth investments across both regions and business segments Contracted growth investments In-service Project Status date(s) Projects are backed by significant Haynesville LEAP pipeline expansion – Phase 1 Q4 2023 On track take-or-pay agreements • Expanding LE

  15. Slide 15: Strong Organic Opportunities Across Our Existing Footprint

    Strong Organic Opportunities Across Our Existing Footprint Asset 2023-2027 commercial focus Overview LEAP • Active discussions for expansions up to ~3 Bcf/d • Connecting growing Haynesville supply with growing LNG demand Stonewall • Active discussions with existing and new customers for • Providing

  16. Slide 16: Fully-contracted LEAP Expansion to 1.9 Bcf/d

    Fully-contracted LEAP Expansion to 1.9 Bcf/d Serving growing LNG export demand via capital efficient expansion Haynesville / Louisiana Gulf Coast DTM assets LNG facilities DTM treating plants Operational Blue Union expansion build Under development Increasing LEAP by 90% from 1.0 Bcf/d to 1.9 Bcf/d

  17. Slide 17: Louisiana Carbon Capture and Sequestration

    Louisiana Carbon Capture and Sequestration Advancing our energy transition platform Louisiana CCS project area Leveraging our strong expertise and integrated asset platform • Constructing new compression, CO2 pipeline and capture equipment • Targeting a proximal geological storage formation with cap

  18. Slide 18: Appendix

    Appendix _ oe Ew’ & Midstream

  19. Slide 19: Guidance Summary

    Guidance Summary (millions, except EPS) Guidance Adjusted EBITDA1 $880 - $920 Operating Earnings2 $340 - $356 Operating EPS2 $3.50 - $3.66 2023 Distributable Cash Flow3 $625 - $675 Capital Expenditures $605 - $690 Growth Capital4 $575 - $650 Maintenance Capital $30 - $40 2024 Adjusted EBITDA (early

  20. Slide 20: Consistent track record of growth through commodity cycles

    Consistent track record of growth through commodity cycles DTM has highly contracted cash flows and no direct commodity exposure Historical Adjusted EBITDA1 growth (millions) +20% CAGR $830 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Natural gas price Natural gas price down cycle down cycle 1.

  21. Slide 21: Strong Haynesville Production Outlook

    Strong Haynesville Production Outlook Haynesville rig count remains at all-time high levels; production is expected to experience strong growth through 2030 Haynesville rig count Haynesville production forecast 90 (bcf/d) +10+10 Bcf/d 80 21 70 60 11 50 40 30 20 2021 2030 2018 2019 2020 2021 2022 202

  22. Slide 22: Serving Highly Economic Resource Areas

    Serving Highly Economic Resource Areas DTM’s assets are well positioned on the new drilling cost supply curve New drill supply curve 2023 – 20251 Breakeven $/MMBtu Annual new supply needed to offset production declines and meet new demand DTM asset resource areas Blue Union / LEAP AGS / Stonewall SG

  23. Slide 23: DTM Assets are Supporting Growing LNG Export Demand

    DTM Assets are Supporting Growing LNG Export Demand DTM assets currently provide ~2 Bcf/d of access to LNG export terminals and are well- positioned to serve growing demand 1 US LNG export capacity (bcf/d) 28 24 +14 Bcf/d Cove Point LNG 20 16 ~9 Bcf/d of Louisiana Gulf 12 Coast area LNG export growt

  24. Slide 24: Financial Results

    Financial Results Three months ended Twelve months ended (millions, except EPS) December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 Adjusted EBITDA1 $227 $207 $830 $768 Pipeline segment $139 $115 $475 $407 Gathering segment $88 $92 $355 $361 Operating Earnings2 $91 $88 $339 $336

  25. Slide 25: Non-GAAP Definitions

    New slide 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 t

  26. Slide 26: Non-GAAP Definitions

    New slide 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 Opera

  27. Slide 27: Non-GAAP Reconciliations

    New slide Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings 27

  28. Slide 28: Non-GAAP Reconciliations

    New slide Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings per diluted share(2) 28

  29. Slide 29: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA 29

  30. Slide 30: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment 30

  31. Slide 31: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment 31

  32. Slide 32: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow 32

DT Midstream — Q4 2022 Earnings Presentation on 6ix