Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Wolfe Research Utilities, Midstream & Clean Energy Conference 2023
23 slides from Dt Midstream's conference presentation, Sep 29, 2023
Slide 1: Wolfe Research Utilities, Midstream & Clean Energy Conference
WOLFE RESEARCH UTILITIES, MIDSTREAM & CLEAN ENERGY CONFERENCE S E P T EMB ER 2 9 , 2 0 2 3
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: Midstream Investment Thesis
Midstream Investment Thesis Clean assets, clean balance sheet, clean story Integrated and Mature environmental, Highly contracted Strong balance sheet well-positioned social and governance cash flows with low leverage assets leadership • Haynesville / Appalachia • Long-term take-or-pay • Self-funded
Slide 4: DT Midstream Asset Footprint
DT Midstream Asset Footprint Integrated platform in the leading dry gas basins serving growing domestic and LNG demand Pipelines connect world-class basins to high-quality markets • ~900 miles of FERC-regulated interstate pipelines that have interconnections with multiple interstate pipelines and LD
Slide 5: 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 $841 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Natural gas price Natural gas price down cycle down cycle 1.
Slide 6: 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 +12 Bcf/d Cove Point LNG 20 16 ~10 Bcf/d of Louisiana Gulf 12 Coast area LNG export growt
Slide 7: Strong Long-term Production Outlook in Both Basins
Strong Long-term Production Outlook in Both Basins Haynesville & Appalachia production is expected to experience significant growth through 2030 Historical production Production forecast (bcf/d) Haynesville Appalachia (bcf/d) Haynesville Appalachia 60 +15 Bcf/d 61 50 40 21 46 30 13 20 10 40 0 33 201
Slide 8: Capital Allocation Approach
Capital Allocation Approach Preserve balance sheet strength • Deleveraging into mid-3x’s (proportional) / low 3x’s (on-balance sheet) over the 5-year period • Committed to long-term 4x leverage ratio ceiling Durable and growing dividend • +15% dividend increase since the Spin-Off • 2.4x dividend cov
Slide 9: 2023-2027 Overall Growth Capital Outlook Remains Unchanged
2023-2027 Overall Growth Capital Outlook Remains Unchanged Shifting 2024 committed capital into 2023 for new Ohio Utica opportunity 2023-2027 capital outlook (Growth capex), Committed capital $1.7 - $2.2 billion Accelerating new greenfield investment • Committed capital of ~$0.8 billion is unchanged
Slide 10: Strong Organic Opportunities Across Our Existing Footprint
Strong Organic Opportunities Across Our Existing Footprint Asset 2023-2027 commercial focus Overview • Connecting growing Haynesville supply with growing LNG LEAP • Active discussions for expansions up to ~3 Bcf/d demand • Active discussions with existing and new customers for • Providing incrementa
Slide 11: Growth Investment Summary
Growth Investment Summary Projects remain on-schedule and on-budget Contracted growth investments Key project updates • LEAP phase 1 placed in-service early, Project In-service date(s) ahead of planned Q4 2023 in-service date • Blue Union and Appalachia Gathering Haynesville LEAP pipeline expansion
Slide 12: New Greenfield Investment in Ohio Utica Resource
New Greenfield Investment in Ohio Utica Resource Finalized development plan with new owner1, accelerated build into 2023 from 2024 Emerging associated gas resource development area • Initial gathering backbone buildout of >200 MMcf/d capacity – Expected DTM investment2 of ~$100 million for 2023-2024
Slide 13: Phase 1 LEAP Expansion Placed In-service
Phase 1 LEAP Expansion Placed In-service Early commissioning of phase 1 expansion increases LEAP capacity from 1.0 Bcf/d to 1.3 Bcf/d Haynesville / Louisiana Gulf Coast DTM assets LNG facilities DTM treating plants Operational Blue Union expansion build Under development Louisiana Electric compressi
Slide 14: 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 • Project scope includes capture equipment, a new CO2 pipeline and storage development • Targeting a proximal geological storag
Slide 15: Committed to a Leading ESG Program
Committed to a Leading ESG Program Environmental • Continuing to advance CCS opportunity in Louisiana • Advancing hydrogen development opportunities with strategic partnership and participation in hydrogen hub initiatives Social • Established $4 million charitable fund for community investment • Imp
Slide 16: Committed to Strong Governance Practices
Committed to Strong Governance Practices Best-in-class governance practices DT Midstream Board Composition • Structured as C-Corp with separate CEO and Chairman • Long-term incentive plans tied to total shareholder return targets Robert Skaggs, Jr. Stephen Baker • Board committee focused on ESG init
Slide 17: Executing on our plan to be net zero by 2050
Executing on our plan to be net zero by 2050 Net zero Our approach by 2050 • Utilize existing technologies to 30% emissions actively reduce emissions from operations including reduction goal by 2030 – Electric compression – Methane monitoring and reduction equipment – Renewable natural gas Key initi
Slide 18: Focused on Impactful Sustainability Initiatives
Focused on Impactful Sustainability Initiatives 2023 Corporate Sustainability Report Highlights • MSCI upgraded DTM to the second highest ESG rating of “AA” • Reduced year-over-year employee safety incident rate by 43% • Doubled the percentage of ethnically diverse leadership • Increased workforce d
Slide 19: Appendix
Appendix _ oe Ew’ & Midstream
Slide 20: 2023/2024 Guidance Summary
2023/2024 Guidance Summary (millions, except EPS) Guidance Adjusted EBITDA1 $895 - $935 Operating Earnings2 $340 - $356 2023 Operating EPS2 $3.50 - $3.66 Distributable Cash Flow3 $625 - $675 Capital Expenditures4 $730 - $790 Growth Capital4 $700 - $750 Maintenance Capital $30 - $40 2024 Adjusted EBI
Slide 21: 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
Slide 22: 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
Slide 23: Non-GAAP Reconciliations
New slide Non-GAAP Reconciliations Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA (millions) 2022 1. Includes share of our equity method investees’ earnings before interest taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of Net inco
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