Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Wolfe Research Utilities, Midstream & Clean Energy Conference 2022
26 slides from Dt Midstream's conference presentation, Sep 30, 2022
Slide 1: Wolfe Research Utilities, Midstream & Clean Energy Conference
WOLFE RESEARCH UTILITIES, MIDSTREAM & CLEAN ENERGY CONFERENCE SEPTEMB ER 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: 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 • Entered into an agreement to acquire National Grid’s 26.25% ownership interest in Millennium Pipeline • ~$552 million purchase price represents a 10x multiple of 2023 Adjusted EBITDA1 • Immediately a
Slide 6: Immediately accretive transaction that is consistent with core investment thesis
Immediately accretive transaction that is consistent with core investment thesis DTM investment thesis Millennium Pipeline acquisition ✓ Fully-contracted under long-term take-or-pay agreements Predictable, robust contracted cash flows ✓ High credit quality customers including investment grade utilit
Slide 7: Favorable fundamentals and growth opportunities in both basins that we serve
Favorable fundamentals and growth opportunities in both basins that we serve Haynesville • Expanding LEAP from 1.0 Bcf/d to 1.7 Bcf/d; can be further expanded to ~3 Bcf/d with looping and compression • Gathering and treating expansions serve growing production • Growth opportunities driven by strong
Slide 8: Haynesville rig count has surged above pre-pandemic levels; production expected to grow
Haynesville rig count has surged above pre-pandemic levels; production is expected to experience strong growth through 2030 Haynesville gas rig count Haynesville production forecast (Bcf/d) +40 rigs since June 2020 low 70 65 +7 +7 Bcf/d 18 60 55 50 45 11 40 35 30 25 20 2017 2018 2019 2020 2021 2022
Slide 9: DTM has significant exposure to growing LNG export demand
DTM has significant exposure to 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
Slide 10: Reached final investment decision on Haynesville system phase 2 expansion
Reached final investment decision on Haynesville system phase 2 expansion; expanding LEAP from 1.0 Bcf/d to 1.7 Bcf/d Haynesville / LA Gulf Coast DTM pipeline assets LNG facilities Capital efficient, lower-risk expansion provides timely DTM treating plants Operational access to growing LNG demand Ex
Slide 11: Appalachia is expected to account for greater than 1/3 of US gas supply through 2030
Appalachia is expected to account for greater than 1/3 of US gas supply through 2030 Appalachia production (Bcf/d) Marcellus Utica Largest US supply basin with durable production 40 • Appalachia is expected to maintain its ~35% share of US supply 36 Emerging takeaway capacity constraints favor 32 pi
Slide 12: Predictable cash flows supported by strong balance sheet
Predictable cash flows supported by strong balance sheet
Slide 13: 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 14: Growing and durable business that is 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 Premier Strategically ~90% positioned in the core energy infrastructure 53% 2021 Adjusted of
Slide 15: Major growth projects are on track
Major growth projects are on track 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 Q4 2023 On trac
Slide 16: DT Midstream is uniquely positioned to capitalize on CCS opportunities
DT Midstream is uniquely positioned to capitalize on CCS opportunities Key criteria intersection of low CO2 capture cost, favorable storage geology, and operational expertise • DTM currently operates three treating plants in Louisiana Proximity to and has plans to add two additional treating units f
Slide 17: Growth is supported by highly stable cash flows backed by long-term fee-based contracts
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 18: Financial strength is supported by strong balance sheet with weighted average debt maturity of 8 years
Financial strength is supported by strong balance sheet with a weighted average debt maturity of 8 years Debt maturity profile (billions) Maintaining flexible, well-capitalized balance sheet $1.1 • $3.1 billion in long-term debt $1.0 – $0.4 billion term loan B due 2028 – $1.1 billion senior notes du
Slide 19: Mature environmental, social and governance leadership
Mature environmental, social and governance leadership
Slide 20: Committed to operating in an ethical, environmentally sensitive, and socially responsible manner
Committed to operating in an ethical, environmentally sensitive, 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 tota
Slide 21: 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 22: 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 23: 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 23
Slide 24: Appendix
Appendix _ oe Ew’ & Midstream
Slide 25: 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 26: 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 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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