Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Q3 2024 Earnings Presentation
27 slides from Dt Midstream's earnings presentation, Oct 29, 2024
Slide 1: Third Quarter 2024 Earnings Call
Third Quarter 2024 Earnings Call October 29, 2024 Ammons compressor station – Appalachia Gathering System phase 2 expansion
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: Third Quarter 2024 Accomplishments
Third Quarter 2024 Accomplishments Strong financial performance ✓ Third quarter 2024 net income of $88 million and Adjusted EBITDA1 of $241 million ✓ Raising 2024 Adjusted EBITDA guidance range to $950 - $980 million ✓ Confident in 2025 Adjusted EBITDA early outlook of $980 - $1,040 million ✓ Upgrad
Slide 4: DTM Provides a Distinctive Investment Opportunity
DTM Provides a Distinctive Investment Opportunity Premium, high-quality attributes compared to other gas-focused peers 5-7% long-term growth rate EBITDA CAGR Dividend CAGR Leading Organic self-funded and fully supported by 2021-2023 2021-2023 9% Growth ~$1.3B organic project backlog 7% 100% natural
Slide 5: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results Adjusted EBITDA1 (millions) xx segment % of total $248 $241 Pipeline2 • Full-quarter impact of LEAP Phase 3 expansion in Q3 $153 62% $156 65% Gathering • Results in-line when adjusting for favorable one-time items of ~$10 million in Q2 not repeating in Q3 $95 38%
Slide 6: LEAP Phase 4 expansion will increase capacity to 2.1 Bcf/d
LEAP Phase 4 expansion will increase capacity to 2.1 Bcf/d Haynesville System to provide additional 0.2 Bcf/d of wellhead to Gulf Coast markets access DTM assets LNG facilities Capital efficient, lower-risk expansion provides timely DTM treating plants Operational access to coming LNG demand LEAP Ph
Slide 7: Upsizing Strategic Appalachian Basin Interconnect
Upsizing Strategic Appalachian Basin Interconnect Expansion increases interconnect capacity and access to growing Mid-Atlantic market Access to Midwest Markets New agreement expanding Mountain Valley Pipeline (MVP) interconnect • Increases outlet capacity on Stonewall by 100 MMcf/d – Expected to be
Slide 8: Upgraded to Investment Grade by Fitch Ratings
Upgraded to Investment Grade by Fitch Ratings Reduction in DTM debt strengthens balance sheet and extends runway to next maturity Debt maturity profile (billions) Undrawn revolver capacity Long-term debt No maturities for 5 years Investment grade Fitch BBB- long-term issuer default rating $1.1 $1.0
Slide 9: Guidance Updates Reflect Strong Year-to-Date Performance
Guidance Updates Reflect Strong Year-to-Date Performance Increasing 2024 Adjusted EBITDA, Operating Earnings, Operating EPS and Distributable Cash Flow guidance (millions, except EPS) Prior Guidance Updated Guidance Drivers • Strong performance in first three quarters; Adjusted EBITDA1 $930 - $980 $
Slide 10: Growth Investment Projects
Growth Investment Projects Continue to advance and deliver on short-cycle growth investments Expected Project in-service dates Haynesville LEAP expansion – Phase 4 1H 2026 In-flight project updates Pipeline Stonewall to Mountain Valley Pipeline (MVP) expansion (Upsized) 1H 2026 • Reached FID on LEAP
Slide 11: Disciplined Capital Investment
Disciplined Capital Investment Strong organic origination is solidifying our 2025 capital plan and is underpinning future growth Growth capex (millions) Committed New Commitments Pre-FID / Highly Probable Cash flow after dividends $330 - $350 Flexible, short-cycle, capital investments • Capital inve
Slide 12: Louisiana Carbon Capture and Sequestration
Louisiana Carbon Capture and Sequestration Continuing pre-FID engineering – awaiting regulatory guidance from the State of Louisiana Project timeline Methodical project development approach Capital deployment ✓ Class VI well permit filing Q4 2022 ✓ Conducted 3D seismic survey Disciplined storage sit
Slide 13: Quarterly Financial Results
Quarterly Financial Results Three months ended (millions, except EPS) September 30, 2024 June 30, 2024 Key drivers Adjusted EBITDA1 $241 $248 Pipeline segment $156 $153 Gathering segment $85 $95 • Favorable one-time items in Q2 not repeating in Q3 Operating Earnings2 $88 $96 Operating EPS2 $0.90 $0.
Slide 14: DT Midstream Investment Thesis
DT Midstream Investment Thesis Pure play natural gas midstream portfolio Premium shareholder returns Strong organic growth Balance sheet strength 14
Slide 15: Appendix
Appendix 15
Slide 16: Gathering Volume Summary
Gathering Volume Summary Resilient volume performance throughout 2024 Haynesville throughput Northeast throughput (bcf/d) Blue Union Gathering (bcf/d) Susquehanna Gathering Appalachia Gathering Tioga Gathering Ohio Utica Gathering 1.60 1.53 1.54 1.56 1.52 1.50 1.51 1.43 1.39 1.37 Q3 2023 Q4 2023 Q1
Slide 17: Continuing Our Track Record of Distinctive Growth
Continuing Our Track Record of Distinctive Growth Targeting long-term Adjusted EBITDA growth of 5-7% Adjusted EBITDA1 (millions) 5-7% long-term +6% growth rate $980 - $1,040 Differentiated growth drivers $930 - $980 $1.3 billion organic growth project backlog Tangible energy transition projects
Slide 18: Strong Long-term Production Outlook in Both Basins
Strong Long-term Production Outlook in Both Basins Haynesville and Appalachia production are expected to experience significant growth over the next decade Historical production Production forecast (bcf/d) Haynesville Appalachia (bcf/d) Haynesville Appalachia 60 +18 bcf/d 67 50 40 27 49 30 15 20 10
Slide 19: Joint Venture Debt Details
Joint Venture Debt Details Annual debt paydown at Millennium and Vector DTM proportionate share End of year debt balances Interest expense Asset Weighted average (DTM ownership %) 2023 2024 2025 2023 2024 2025 interest rate Maturity NEXUS Pipeline Bullets, 2028 $371 $371 $371 $14 $21 $21 5.68%1 (50%
Slide 20: 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 21: 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 22: Non-GAAP Reconciliations
New slide Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings – DT Midstream Consolidated Three Months Ended September 30, June 30, 2024 2024 Reported Pre-tax Income Operating Reported Pre-tax Income Operating Earnings Adjustments Taxes (1) Earnings Earnings Adjustments Taxes (
Slide 23: Non-GAAP Reconciliations
New slide Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings per diluted share(2) – DT Midstream Consolidated Three Months Ended September 30, June 30, 2024 2024 Reported Pre-tax Income Operating Reported Pre-tax Income Operating Earnings Adjustments Taxes (1) Earnings Earning
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2024 2024 2024 2023 Consolidated (millions) Net Income Attributable to DT Midstream $ 88 $ 96 $ 281 $ 263 Plus
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2024 2024 2024 2023 Pipeline (millions) Net Income Attributable to DT Midstream $ 71 $ 71 $ 2
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2024 2024 2024 2023 Gathering (millions) Net Income Attributable to DT Midstream $ 17 $ 25 $
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2024 2024 2024 2023 Consolidated (millions) Net Income Attributable to DT Midstream $ 88 $ 96 $ 281 $