Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Mizuho Power, Energy & Infrastructure Conference 2024
23 slides from Dt Midstream's conference presentation, Dec 9, 2024
Slide 1: DT Midstream Company Presentation
DT Midstream Company Presentation December 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: 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 sizable organic project backlog 7% 100% natural
Slide 4: DT Midstream has strategically located, integrated assets
DT Midstream has strategically located, integrated assets Uniquely positioned to benefit from growing LNG and power demand Sources: S&P Global Commodity Insights, Wood Mackenzie North America Gas Investment Horizon Outlook – October 2023 4
Slide 5: Expanding DTM's FERC Natural Gas Pipeline Network with Bolt-on Acquisition
Expanding DTM’s FERC Natural Gas Pipeline Network with Bolt-on Acquisition, Expected to Close Late 2024/Early 2025 Acquisition of three FERC-regulated, demand-pull interstate pipeline systems directly connected or proximal to DTM’s existing network • Assets provide >3.7 Bcf/d of capacity across ~1,3
Slide 6: Delivering Distinctive and Predictable Growth
Delivering Distinctive and Predictable Growth Track record of strong growth Historical Adjusted EBITDA1 Relative Growth (Millions) 2020-2023 Adjusted EBITDA CAGR 9% 9% CAGR $924 $841 $778 $720 4% 2020 2021 2022 2023 Peer average2 ✓ Well positioned assets and take-or-pay contract structures consisten
Slide 7: Diversified Asset Base Anchored by Strong Pipeline Segment
Diversified Asset Base Anchored by Strong Pipeline Segment Highest natural gas pipeline asset contribution in sector1 Business mix (% of total 2023 Adjusted EBITDA2) Highly contracted asset portfolio supports Millennium NEXUS 11% Pipeline stable cash flows 63% 13% Ohio Utica LEAP • Average portfolio
Slide 8: High Quality Cash Flows and Customers
High Quality Cash Flows and Customers Cash flows are underpinned by take-or-pay contracts and high credit quality customers Total revenue contribution Customer credit (% of 2023 contribution1) (% of 2023 contribution) ~90% ~85% Demand / MVC or Investment grade flowing gas2 Non-investment grade with
Slide 9: 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 Sizable organic growth project backlog Tangible energy transition projects Ful
Slide 10: On Track to Reach Investment Grade
On Track to Reach Investment Grade Positive reaction from rating agencies to announced acquisition agreement Debt maturity profile (billions) Undrawn revolver capacity Drawn revolver balance1 Long-term debt Weighted average maturity of ~7 years Investment grade 1.10 Fitch BBB- long-term issuer defau
Slide 11: 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 1H 2026 • Reached FID on LEAP Phase 4 e
Slide 12: Sizeable Organic Project Backlog
Sizeable Organic Project Backlog Balanced opportunity set across all business segments Pipeline Gathering Project Contribution Status Project Contribution Status LEAP phase 1 expansion Aug. 2023 In-service Blue Union gathering / treating expansion Dec. 2023 In-service LEAP phase 2 expansion Dec. 202
Slide 13: 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 65 50 40 23 47 30 14 20 10
Slide 14: 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 15: 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 – In-service expe
Slide 16: 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 17: Clean Fuels Gathering Project
Clean Fuels Gathering Project Energy Transition investment leverages DTM’s gas gathering, treating and tax credit expertise Clean Fuels Transaction Process Producer Responsibility DT Midstream Responsibility Fugitive coal mine methane gas Attractive investment establishes DTM as an early mover in th
Slide 18: Disciplined Capital Investment
Disciplined Capital Investment Strong organic origination is solidifying our 2025 capital plan and is underpinning future growth Growth capex1 (millions) Committed Pre-FID / Highly Probable Cash flow after dividends $330 - $350 Flexible, short-cycle, capital investments • Capital investment program
Slide 19: Appendix
Appendix 19
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: Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Year Ended December 31, December 31, 2023 2022 Net Income Attributable to DT Midstream $ 384 $ 370 Plus: Interest expense 150 137 Plus: Income tax expense 104 100 Plus: Depreciation and amortization
Slide 23: Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Year Ended December 31, December 31, 2021 2020 Net Income Attributable to DT Midstream $ 307 $ 312 Plus: Interest expense 112 113 Plus: Income tax expense 104 116 Plus: Depreciation and amortization
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