Dt Midstream, Inc. · NYSE:DTM

Dt Midstream — Q3 2023 Earnings Presentation

29 slides from Dt Midstream's earnings presentation, Nov 1, 2023

  1. Slide 1: Third Quarter 2023 Earnings Call

    THIRD QUARTER 2023 EARNINGS CALL N O VE MB ER 1 , 2 0 2 3

  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: Third Quarter 2023 Accomplishments

    Third Quarter 2023 Accomplishments Strong financial performance ✓ Net income of $91 million and Adjusted EBITDA1 of $236 million ✓ Confirming 2023 Adjusted EBITDA guidance midpoint of $915 million and narrowing range to $905 - $925 million ✓ Confident in 2024 Adjusted EBITDA early outlook of $920 -

  4. Slide 4: Midstream Investment Thesis

    Midstream Investment Thesis Pure play natural gas - 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 • Pure play Haynesville / • Long-term ta

  5. Slide 5: Third Quarter 2023 Financial Results

    Third Quarter 2023 Financial Results Adjusted EBITDA1 (millions) xx segment % of overall $236 $224 Pipeline • LEAP Phase 1 expansion placed in-service in late $145 61% August $139 62% Gathering • Higher revenue on Blue Union and lower overall operation and maintenance in the third quarter $85 38% $9

  6. Slide 6: Gathering Volume Summary

    Gathering Volume Summary Haynesville throughput Northeast throughput (bcf/d) Blue Union Gathering (bcf/d) Susquehanna Gathering Appalachia Gathering Tioga Gathering 1.70 1.36 1.39 1.39 1.66 1.63 1.35 1.35 1.60 1.53 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 • Q3

  7. Slide 7: Growth Investment Summary

    Growth Investment Summary Projects are on schedule and on budget Contracted growth investments Key project updates Project In-service date(s) • LEAP Phase 1 expansion placed in-service ahead of schedule in late August Haynesville LEAP pipeline expansion – Phase 1 In-service • LEAP Phase 2 & 3, Appal

  8. Slide 8: 2023-2027 Overall Growth Capital Outlook

    2023-2027 Overall Growth Capital Outlook Opportunity for excess free cash flow allocation in 2024 2023-2027 capital outlook (Growth capex) Committed capital $1.7 - $2.2 Committed to preserving balance sheet strength billion and achieving an investment grade credit rating • Investments in 2024 will b

  9. Slide 9: Ohio Utica System

    Ohio Utica System Construction progressing ahead of schedule Emerging associated gas resource development area • Initial gathering backbone buildout of >200 MMcf/d capacity – Expected DTM investment1 of ~$100 million for 2023-2024 Direct access to premium – ~5x build multiple at full run-rate market

  10. Slide 10: 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 Electric compression Further

  11. Slide 11: DTM Assets are Strategically Located to Support Growing Demand

    DTM Assets are Strategically Located to Support Growing Demand LEAP is directly interconnected to ~6 Bcf/d of incremental new LNG export demand growth Adding new supply and demand connectivity to 1 Haynesville system to support LNG demand wave •1 New 400 MMcf/d supply interconnect with 3rd- party pr

  12. Slide 12: 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 geological storage formation

  13. Slide 13: Quarterly Financial Results

    Quarterly Financial Results Three months ended (millions, except EPS) September 30, 2023 June 30, 2023 Key drivers Adjusted EBITDA1 $236 $224 Pipeline segment $145 $139 • LEAP Phase 1 expansion placed in-service in late August • Higher revenue on Blue Union and lower overall Gathering segment $91 $8

  14. Slide 14: 2023/2024 Guidance Summary

    2023/2024 Guidance Summary (millions, except EPS) Prior guidance Updated guidance Adjusted EBITDA1 $895 - $935 $905 - $925 Operating Earnings2 $340 - $356 $340 - $356 Operating EPS2 $3.50 - $3.66 $3.50 - $3.66 2023 Distributable Cash Flow3 $625 - $675 $650 - $675 Capital Expenditures4 $730 - $790 $7

  15. Slide 15: Appendix

    Appendix _ oe Ew’ & Midstream

  16. Slide 16: Year-To-Date Financial Results

    Year-To-Date Financial Results Nine months ended (millions, except EPS) September 30, 2023 September 30, 2022 Adjusted EBITDA1 $685 $610 Pipeline segment $425 $343 Gathering segment $260 $267 Operating Earnings2 $263 $248 Operating EPS2 $2.70 $2.55 Distributable Cash Flow3 $541 $507 Growth Capital4

  17. Slide 17: Capital Allocation Approach

    Capital Allocation Approach Preserve balance sheet strength • Deleveraging into low 3x’s (on-balance sheet) / mid-3x’s (proportional) 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

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: Diversified Asset Base Anchored by Strong Pipeline Segment

    Diversified Asset Base Anchored by Strong Pipeline Segment 7% 7% 61% 28% 26% 42% Q3 2023 Adjusted Q3 2023 Adjusted Q3 2023 Adjusted EBITDA1 by segment EBITDA by demand area EBITDA by supply area 67% 39% 23% Pipeline Gathering Gulf Coast Midwest Marcellus / Utica Haynesville Northeast & Mid-Atlantic

  21. Slide 21: Significant LNG Export Demand Growth Expected Over the Next Decade

    Significant LNG Export Demand Growth Expected Over the Next Decade ~10 Bcf/d of Louisiana Gulf Coast area LNG export growth through 20302 US LNG export capacity1 (bcf/d) 28 24 +12 Bcf/d 20 16 12 8 4 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 Sabine Pass Calcasieu Pass Plaquemines Port Arthur Cor

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: Non-GAAP Reconciliations

    New slide Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings 24

  25. Slide 25: Non-GAAP Reconciliations

    New slide Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings per diluted share(2) 25

  26. Slide 26: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA 26

  27. Slide 27: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment 27

  28. Slide 28: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment 28

  29. Slide 29: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow 29

DT Midstream — Q3 2023 Earnings Presentation on 6ix