Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Wolfe Research Utilities, Midstream & Clean Energy Conference 2024
26 slides from Dt Midstream's conference presentation, Oct 2, 2024
Slide 1: Wolfe Research Utilities, Midstream & Clean Energy Conference
Wolfe Research Utilities, Midstream & Clean Energy Conference October 2, 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: DT Midstream Investment Thesis
DT Midstream Investment Thesis Pure play natural gas Premium shareholder Strong organic growth Balance sheet strength midstream portfolio returns ~65% pipeline segment1; Distinctive Adjusted Sizeable project backlog of Line-of-sight to investment highest in sector2 EBITDA4 growth of 9%5 >$1.3 billio
Slide 4: Quality Portfolio Delivering Sector-Leading Results
Quality Portfolio Delivering Sector-Leading Results Distinctive and durable business attributes Strong organic results with no Sector-leading Pipeline contribution1 commodity exposure Premium quality portfolio Adjusted EBITDA2 2020 - 2023 Adjusted EBITDA CAGR 100% DTM Peers1 Natural gas focus Pipeli
Slide 5: 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 5
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 and flowing gas2 “Rising star3” Non-inv
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 $1.3 billion organic growth project backlog Tangible energy transition projects
Slide 10: Millennium Pipeline Project Financing Optimizes Balance Sheet
Millennium Pipeline Project Financing Optimizes Balance Sheet Financing supports full paydown of term loan, extending runway to next debt maturity Debt maturity profile (billions) Undrawn revolver capacity Drawn revolver balance1 Long-term debt Issuance of non-recourse debt at Millennium • $800 mill
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 3 In-Service Pipeline In-flight project updates Stonewall to Mountain Valley Pipeline (MVP) expansion 1H 2026 • LEAP Phase 3 expansion in-
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 67 50 40 27 49 30 15 20 10
Slide 14: Haynesville System LEAP Expansion Potential of ~4 Bcf/d
Haynesville System LEAP Expansion Potential of ~4 Bcf/d Haynesville System provides 1.9 Bcf/d of wellhead to Gulf Coast markets access DTM assets LNG facilities Phase 3 LEAP expansion in service early and on budget, DTM treating plants Operational Electric compression Under development increasing ca
Slide 15: East Texas Gathering Expansion
East Texas Gathering Expansion Attaching three producers to Haynesville System with sizable additional acreage dedications DTM treating plants Third party processing plant DTM Haynesville System Existing acreage dedication Carthage Continuing to expand and diversify the supply access of New acreage
Slide 16: Louisiana Carbon Capture and Sequestration
Louisiana Carbon Capture and Sequestration Evaluation of Class V test well confirms suitability of formation – on track for 2H 2024 FID Project timeline Methodical project development approach Capital deployment ✓ Class VI well permit filing Disciplined storage site selection and stakeholder engagem
Slide 17: New Clean Fuels Gathering Project
New Clean Fuels Gathering Project New strategic 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 Committed capital remains within 2024 guidance and free cash flow Growth capex (millions) Committed Pre-FID / Highly Probable Cash flow after dividends $330 - $375 Flexible, short-cycle, capital investments • Capital investment program funded within free cash flow • In
Slide 19: Balanced Partnership Governance Structures
Balanced Partnership Governance Structures Joint Venture Asset Original Independently Owner Ownership Operator Developer Managed Managed Balanced and equitable DT Midstream 52.5% ✓ partnership agreements ✓ TC Energy 47.5% ✓ ✓ • Independent management teams for FERC assets DT Midstream 50% ✓ –
Slide 20: Executing a Leading ESG Program
Executing a Leading ESG Program Focused on impactful environmental, social and governance initiatives Environmental • Continuing to advance CCS opportunity in Louisiana • Advancing hydrogen development opportunities with strategic partnership Corporate Sustainability Report 2024 • Transitioning to n
Slide 21: Appendix
Appendix 21
Slide 22: 2024/2025 Guidance Summary
2024/2025 Guidance Summary (millions, except EPS) Current Guidance Adjusted EBITDA1 $930 - $980 Operating Earnings2 $335 - $375 Operating EPS2 $3.43 - $3.83 2024 Distributable Cash Flow3 $640 - $700 Capital Expenditures $360 - $415 Growth Capital4 $330 - $375 Maintenance Capital $30 - $40 2025 Adjus
Slide 23: 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 24: 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 25: 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 26: 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
DT Midstream — Wolfe Research Utilities, Midstream & Clean Energy Conference 2024 on 6ix