Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Merger or Acquisition (November 2024)
12 slides from Dt Midstream's merger presentation, Nov 19, 2024
Slide 1: Midwest Pipeline Acquisition
Midwest Pipeline Acquisition November 19, 2024 DT Midstream NYSE: DTM
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement New slide Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,”
Slide 3: Expanding DTM's FERC Natural Gas Pipeline Network with Bolt-on Acquisition
3 Expanding DTM’s FERC Natural Gas Pipeline Network with Bolt-on Acquisition 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 ~1,300 miles of interstate pipelines Direct
Slide 4: Transaction Overview
Definition of Distributable Cash Flow (non-GAAP) included in the appendix 4 Transaction Overview Purchase Price Cash purchase price of $1.2B (no assumed debt) ~10.5x 2025E Adjusted EBITDA multiple Expected Financing ~$900MM debt ~$300MM common equity Expected Close Expected closing in late 2024 or e
Slide 5: Acquisition Fully Aligns with DTM's Investment Thesis
5 Acquisition Fully Aligns with DTM’s Investment Thesis Highly complementary to DTM’s existing business Operating ownership in FERC-regulated natural gas pipelines Increases Pipeline segment mix Leading Portfolio Mix Premier Geographic Presence Strong Credit Profile Durable Contracting Premier asset
Slide 6: High Quality, Premier Pipeline Assets Serving the Upper Midwest
6 Acquiring 100% interest ~400-mile pipeline ~1.5 Bcf/d design capacity Key interconnects include Rockies Express, ANR, NGPL, Northern Border, Guardian Pipeline, and TGP Midwestern Gas Transmission Guardian Pipeline Viking Gas Transmission Acquiring 100% interest ~260-mile pipeline ~1.3 Bcf/d design
Slide 7: Assets Serve Attractive and Durable Markets
Source: S&P Global Commodity Insights 7 Assets Serve Attractive and Durable Markets Resilient heating demand drives strong utilization, with future increased power demand Strong residential and commercial heating demand supports long-term utilization Assets located in the top region for heating degr
Slide 8: High Credit Quality Demand-Pull Customer Base
Based on acquired pipeline firm customer contracts as of Oct. 2024 8 High Credit Quality Demand-Pull Customer Base Primarily investment grade credit utility customers Utilities, power plants, municipalities & industrials Investment Grade ~90% ~85% Highly contracted with strong demand-pull cust
Slide 9: Highly Complementary, Interconnected Assets
9 Highly Complementary, Interconnected Assets Combined asset platform enables growth in pipeline and storage services Canadian Supply Transport to/from Gulf Coast Marcellus/ Utica Supply Direct connectivity to Vector and NEXUS to access Appalachia supply New assets can access DTM’s existing storage
Slide 10: Acquisition Enhances DTM's Financial Profile
Definition of Distributable Cash Flow (non-GAAP) included in the appendix Includes DTM’s proportionate share (based on ownership) in asset-level debt at joint venture pipelines Definition of Adjusted EBITDA (non-GAAP) included in the appendix Dividend policy is subject to change and any dividend pay
Slide 11: fh? Bf Midstream
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Slide 12: Non-GAAP Definitions
12 Non-GAAP Definitions Adjusted EBITDA and Distributable Cash Flow (DCF) are non-GAAP measures New slide 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 adjuste