Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — J.P. Morgan Energy, Power & Renewables Conference 2023
22 slides from Dt Midstream's conference presentation, Jun 21, 2023
Slide 1: J.P. Morgan Energy, Power & Renewables Conference
J.P. MORGAN ENERGY, POWER & RENE WABLES CONFERENCE JU N E 2 1 , 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 • Current plan naturally deleverages the business into low 3x’s over the 5-year period • Committed to long-term 4x leverage ratio ceiling Durable and growing dividend • +15% dividend increase since the spin-off from DTE Energy • 2.4x divide
Slide 9: Disciplined Capital Investment Approach to Deliver Shareholder Value
Disciplined Capital Investment Approach to Deliver Shareholder Value 2023-2027 capital outlook (Growth capex) $1.7 - $2.2 billion 5-year capital outlook is self-funded and supports deleveraging to low 3x’s • Cash flow will be deployed to the most accretive ~$0.8 billion committed to option (i.e., gr
Slide 10: Geared to Capture Future Growth
Geared to Capture Future Growth Differentiated Commercial Approach Provides a Unique Competitive Advantage Pure play natural gas focus • Dominant position in the two premier dry gas basins • Integrated wellhead to market connectivity Positioned for Energy Transition Investments • Executing on CCS pr
Slide 11: Strong Organic Opportunities Across Our Existing Footprint
Strong Organic Opportunities Across Our Existing Footprint Asset 2023-2027 commercial focus Overview LEAP • Active discussions for expansions up to ~3 Bcf/d • Connecting growing Haynesville supply with growing LNG demand Stonewall • Active discussions with existing and new customers for • Providing
Slide 12: Growth Investment Summary
Growth Investment Summary Projects remain on-schedule and on-budget and have been significantly de-risked Contracted growth investments Project capital Capital spend to date & committed procurement contracts1 Project In-service date(s) Haynesville LEAP pipeline expansion – Phase 1 Q4 2023 ~80% of ov
Slide 13: Phase 1 LEAP Expansion On-track for Q4 2023 In-service
Phase 1 LEAP Expansion On-track for Q4 2023 In-service Serving growing LNG export demand via capital efficient expansion Haynesville / Louisiana Gulf Coast DTM assets LNG facilities DTM treating plants Operational Blue Union expansion build Under development Louisiana New electric compression Contra
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 Executive Chairman • Long-term incentive plans tied to total shareholder return targets Robert Skaggs, Jr. Stephen Baker Executive Chairman Lead Ind
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: Appendix
Appendix _ oe Ew’ & Midstream
Slide 19: Guidance Summary
Guidance Summary (millions, except EPS) Guidance Adjusted EBITDA1 $895 - $935 Operating Earnings2 $340 - $356 Operating EPS2 $3.50 - $3.66 2023 Distributable Cash Flow3 $625 - $675 Capital Expenditures $605 - $690 Growth Capital4 $575 - $650 Maintenance Capital $30 - $40 2024 Adjusted EBITDA (early
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 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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