DT Midstream, Inc. · NYSE:DTM
DT Midstream — US Capital Advisors Midstream Corporate Access Day 2022
32 slides from DT Midstream's conference presentation, Mar 30, 2022
Slide 1: US Capital Advisors Midstream Corporate Access Day
US CAPITAL ADVISORS MIDSTREAM CORPORATE ACCESS DAY MARCH 30, 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 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 LDC
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 2% 7% 40% 53% 2021 gathering 2021 adjusted 34% 2021 adjusted EBITDA 46% adjusted EBITDA by 52% EBITDA1 by segment by demand area supply area 47% 19% Pipeline Gathering Gulf Coast Midwest Marcellus / Utica Haynesville
Slide 7: Key demand markets feature positive long-term growth outlooks
Key demand markets feature positive long-term growth outlooks Demand growth forecast (Bcf/d) +20% 92 3 Eastern Canada1 77 15 Northeast and Mid-Atlantic2 Growing and stable demand across diverse 3 Midwest set of markets 15 Gulf Coast3 19 • Gulf coast demand is driven by robust LNG exports and industr
Slide 8: 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 64 100 ~27% +14 rigs since February 90 47 80 Utica 11 70 ~23% 60 26 50 ~1
Slide 9: Haynesville production and LNG exports are both at historic highs
Haynesville production and LNG exports are both at historic highs Haynesville production US LNG export feedgas (Bcf/d) (Monthly average) (Bcf/d) (Monthly average) 16 14 ~13.7 Bcf/d 2022 peak 14 12 12 10 10 8 8 6 6 4 4 64 rigs currently running - most 2 2 among dry gas basins1 0 0 2011 2013 2015 2017
Slide 10: Haynesville wellhead to water system expansion
Phase 1 Haynesville “wellhead to water” system expansion connects highly economic supply with growing global demand Haynesville / LA Gulf Coast Strong fundamentals around our Haynesville system have yielded new contracted expansions ~2-3 Bcf/d of supply growth Phase 1 through 2023 • Expansion agreem
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 $768 (millions) $82 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Asset growth timeline ✓ Washington 10 expansion ✓ Bluestone lateral and gathering system in- ✓ NEXUS
Slide 13: Growing and durable business positioned for today and the future
Growing and durable business that is positioned for today and the future Well balanced Portfolio durability Strong growth Well positioned for business mix platforms energy transition 100% natural gas focused Irreplaceable Strategically ~90% positioned in the core energy infrastructure 53% 2021 Adjus
Slide 14: Increased 2022 guidance provides 8% growth
Increased 2022 guidance provides 8% growth Adjusted EBITDA1 Operating earnings2 (millions) (millions) +8% +8% 800 $770 - $810 330 $319 - $335 Positioned to deliver strong organic $296 - $312 growth in 2022 $710 - $750 300 • Leveraging well positioned asset 700 platforms in the Haynesville and 270 Ap
Slide 15: Strengthening total shareholder returns with 7% dividend increase
Strengthening total shareholder returns with 7% dividend increase Annualized dividend ($/share) +7% $2.56 $2.40 Long-term contracted cash flow generation supports durable and growing dividend • Board approved increased dividend of $0.64 / share for Q1 2022 • ~2.4x coverage ratio providing cushion ab
Slide 16: Strong asset platforms expected to deliver 5% - 7% growth into 2023
Strong asset platforms are expected to deliver 5% - 7% growth into 2023 Adjusted EBITDA1 (millions) 5% - 7% 850 CAGR $810 - $850 Well positioned asset platforms in premier dry gas 800 $770 - $810 basins will continue to drive growth 750 $710 - $750 • Investing in growth opportunities in both the Hay
Slide 17: Maximizing total shareholder return via strong cash flow generation
Maximizing total shareholder return via our strong cash flow generation Distributable cash flow1 (millions) $575 - $625 Value creation ✓ Highly accretive growth projects – Substantial set of organic projects at favorable build multiples ✓ Return capital to shareholders – Increasing dividend with gro
Slide 18: Solidifying our 5-year growth investment plan through accretive organic projects
Solidifying our 5-year growth investment plan through highly accretive organic projects 2022 capital investments Completed or contracted growth investments (millions) Project In-service date(s) $350 - $400 $30 - $40 Vector Blue Water Energy Center lateral Q1 2021 Stonewall expansion Q2 2022 Pipeline
Slide 19: Well positioned assets provide robust organic growth opportunities
Our well positioned assets provide robust organic growth opportunities Platform Region 2022/2023 commercial focus • We remain in active discussions with multiple LEAP Lateral Haynesville counterparties for a phase 2 expansion Pipeline NEXUS Pipeline Appalachia • Open season discussions underway Mill
Slide 20: Stable cash flows backed by long-term fee-based contracts with strong customers
Growth is supported by highly stable cash flows backed by long-term fee-based contracts with strong customers Underpinned by long-term, fee-based contracts • ~90% of total contribution1 is from minimum volume 2021 revenue contribution composition commitments (MVC) / demand charges (take-or-pay) and
Slide 21: Strong balance sheet with no significant debt maturities for six years
Financial strength is supported by strong balance sheet with no significant debt maturities for six years 1 Debt maturity profile (billions) $1.1 ~$1.0 $1.0 Maintaining flexible, well-capitalized balance sheet • Continuously monitoring market conditions for capital structure improvements • $3.1 bill
Slide 22: Financial policy overview
Financial policy overview Self-funded investment program Industry leading organic growth $1.2 - $1.7 billion 7% - 9% growth • Growth investment range from 2021 - • 2021 adjusted EBITDA1 original guidance 2025 is driven by organic opportunities to 2022 adjusted EBITDA guidance within existing platfor
Slide 23: Mature environmental, social and governance leadership
Mature environmental, social and governance leadership
Slide 24: 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 • Established $4 million charitable fund for • Strong C-Corp governance with separate emissions by 2050 and a 30% reduction community investment Chairma
Slide 25: 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 – Renewable natural gas connections Opportunities being evaluated – Methane reducing technologies (e.g., vent control devi
Slide 26: 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
Slide 27: Focusing on diversity, safety, well-being 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 Serving our communities • Establ
Slide 28: 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 28
Slide 29: Appendix
Appendix _ oe Ew’ & Midstream
Slide 30: 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 31: 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 32: Reconciliation of net income to Adjusted EBITDA
New slide Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA (millions) 2008 2021 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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