DT Midstream, Inc. · NYSE:DTM
DT Midstream — Q1 2022 Earnings Presentation
29 slides from DT Midstream's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Earnings Call
FIRST QUARTER 2022 EARNINGS CALL M AY 5 , 2 0 2 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
Slide 3: First quarter 2022 accomplishments
First quarter 2022 accomplishments Strong financial performance ✓ Delivered adjusted EBITDA1 of $191 million – on plan for the first quarter and firmly on track to achieve 2022 guidance ✓ Converted a significant portion of our variable rate debt to a fixed rate and extended term Robust commercial ac
Slide 4: Delivered strong quarterly results on track with full-year guidance
Delivered strong quarterly results on track with full-year guidance Segment adjusted EBITDA1 (millions) $196 $191 Continued strong business performance in both segments $89 $86 • Stable gathering segment volumes across both the Haynesville and Appalachia – Executed pull-forward of new customer volum
Slide 5: Strong confidence in achieving 2022 guidance and 2023 early outlook
Strong confidence in achieving 2022 guidance and 2023 early outlook Adjusted EBITDA1 (millions) 5% - 7% 850 CAGR $810 - $850 New projects and existing business will deliver 800 $770 - $810 incremental growth 750 $710 - $750 • Investing in growth opportunities in both basins and both segments 700 • E
Slide 6: Over 2.9 Bcf/d of production volumes gathered in Q1 2022
Over 2.9 Bcf/d of production volumes gathered in Q1 2022 Gathering segment average throughput1 (Bcf/d) +18% 2.91 2.91 2.62 2.46 2.52 Haynesville 1.55 1.57 • Q1 2022 volumes in-line with Q4 2021 as new 1.16 1.23 1.35 customer volumes were pulled forward into 2021 Northeast • Overall volumes for Q1 20
Slide 7: Quarterly financial results
Quarterly financial results Three months ended (millions, except EPS) March 31, 2022 December 31, 2021 Adjusted EBITDA1 $191 $196 Pipeline segment $105 $107 Gathering segment $86 $89 Operating Earnings2 $81 $87 Operating EPS2 $0.84 $0.89 Distributable cash flow3 $182 $121 Growth capital4 $17 $37 Mai
Slide 8: Financial strength supported by strong balance sheet with 8-year debt maturity
Financial strength is supported by strong balance sheet with a weighted average debt maturity of 8 years Debt maturity profile1 (billions) Converted variable rate to fixed rate and extended Converted 60% of 7-year variable rate term loan to 10-year maturity by 4 years fixed rate senior notes $1.1 •
Slide 9: Haynesville rig count has surged above pre-pandemic levels
Haynesville rig count has surged above pre-pandemic levels; production is expected to experience strong growth through 2030 Haynesville gas rig count Haynesville production (Bcf/d) 70 +34 rigs 20 since June 2020 low 65 18 +7 Bcf/d 60 16 55 14 50 45 12 40 10 35 8 30 6 25 20 4 2017 2018 2019 2020 2021
Slide 10: DTM has significant exposure to growing LNG export demand
DTM has significant exposure to growing LNG export demand US LNG exports (Bcf/d) 24 Cove Point LNG +13 Bcf/d 20 16 ~8 Bcf/d 12 of Louisiana Gulf Coast area LNG export growth 8 through 20301 4 LNG facilities Operational 0 Gulf Coast Under development 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 11: Haynesville system is well-positioned to serve growing supply
Haynesville system is well-positioned to serve growing supply Phase 1 Haynesville / LA Gulf Coast DTM pipeline assets LNG facilities • Expansion is on track and on budget ~7 Bcf/d DTM treating plants Operational of supply growth – Critical long-lead equipment has been ordered through 20302 Expansion
Slide 12: Appalachia expected to account for greater than 1/3 of US gas supply
Appalachia is expected to account for greater than 1/3 of US gas supply through 2030 Appalachia production (Bcf/d) Marcellus Utica Largest US supply basin with durable production 40 • Appalachia is expected to maintain its ~35% share of US supply 36 Emerging takeaway capacity constraints favor 32 pi
Slide 13: Favorable fundamentals and growth opportunities in both basins
Favorable fundamentals and growth opportunities in both basins that we serve Haynesville • 300 MMcf/d LEAP pipeline phase 1 expansion in-flight; can be further expanded to 2.0 Bcf/d with compression • Gathering and treating expansions serve growing production • Growth opportunities driven by strong
Slide 14: Major growth projects are on track
Major growth projects are on track Contracted growth investments (New projects in bold) Project In-service date(s) Stonewall expansion Q2 2022 Pipeline Michigan Gathering to intrastate pipeline conversion Q4 2022 Haynesville LEAP pipeline expansion – Phase 1 Q4 2023 Appalachia Gathering System expan
Slide 15: Well positioned assets provide incremental organic growth opportunities
Our well positioned assets provide incremental organic growth opportunities Platform Region 2022/2023 commercial focus • In active discussions with multiple customers for a LEAP Lateral Haynesville phase 2 expansion Pipeline • Re-contracting opportunities NEXUS Pipeline Appalachia • Open season disc
Slide 16: Leading the industry with a mature ESG program
Leading the industry with a mature environmental, social and governance program Environmental Social Governance • Targeting net zero greenhouse gas • Established $4 million foundation for • Strong C-Corp governance with separate emissions by 2050 and a 30% reduction community investment Chairman and
Slide 17: Clean assets, clean balance sheet, clean story
Clean assets, clean balance sheet, clean story Integrated assets in premier dry gas basins serving key markets Stable balance sheet with low leverage Predictable, robust contracted cash flows Mature environmental, social and governance leadership 17
Slide 18: Appendix
Appendix _ oe Ew’ & Midstream
Slide 19: Disciplined financial approach
Disciplined financial approach Self-funded investment program Strong organic growth $1.2 - $1.7 billion 7% - 9% growth • Growth investment range from 2021 - • 2021 adjusted EBITDA1 original 2025 is driven by organic opportunities within existing platforms guidance to 2022 adjusted EBITDA guidance Va
Slide 20: 2022 guidance summary
2022 guidance summary (millions, except EPS) 2022 Guidance Adjusted EBITDA1 $770 - $810 Operating Earnings2 $319 - $335 Operating EPS2 $3.30 - $3.46 Distributable Cash Flow3 $575 - $625 Capital Expenditures $350 - $400 Growth Capital4 $320 - $360 Maintenance Capital $30 - $40 1. Definition and recon
Slide 21: Quarterly financial results
Quarterly financial results Three months ended (millions, except EPS) March 31, 2022 March 31, 2021 Adjusted EBITDA1 $191 $193 Pipeline segment $105 $100 Gathering segment $86 $93 Operating Earnings2 $81 $85 Operating EPS2 $0.84 $0.88 Distributable cash flow3 $182 $160 Growth capital4 $17 $24 Mainte
Slide 22: Adjusted EBITDA and distributable cash flow are non-GAAP measures
New slide 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 on extinguishment of debt, further adjusted to include our proport
Slide 23: Operating earnings and operating EPS are non-GAAP measures
New slide 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 operating earnings provide
Slide 24: Reconciliation of Reported to Operating Earnings (non-GAAP)
New slide Reconciliation of Reported to Operating Earnings (non-GAAP) 24
Slide 25: Reconciliation of Reported to Operating Earnings per diluted share
New slide Reconciliation of Reported to Operating Earnings per diluted share(2) (non-GAAP) 25
Slide 26: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA (non-GAAP) 26
Slide 27: Reconciliation to Adjusted EBITDA Pipeline Segment
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment (non-GAAP) 27
Slide 28: Reconciliation to Adjusted EBITDA Gathering Segment
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment (non-GAAP) 28
Slide 29: Reconciliation of Net Income to Distributable Cash Flow
Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow (non-GAAP) 29