Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Mizuho Energy Summit 2023
23 slides from Dt Midstream's conference presentation, Mar 13, 2023
Slide 1: Mizuho Energy Summit
MIZUHO ENERGY SUMMIT MARCH 13, 2023
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 assets in the Mature environmental, Highly contracted Strong balance sheet two best dry gas basins social and governance cash flows with low leverage serving key markets leadership • Haynesville / Appalachia • Long
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 $830 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Natural gas price Natural gas price down cycle down cycle 1.
Slide 6: Serving Highly Economic Resource Areas
Serving Highly Economic Resource Areas DTM’s assets are well positioned on the new drilling cost supply curve New drill supply curve 2023 – 20251 Breakeven $/MMBtu Annual new supply needed to offset production declines and meet new demand DTM asset resource areas Blue Union / LEAP AGS / Stonewall SG
Slide 7: 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 ~9 Bcf/d of Louisiana Gulf 12 Coast area LNG export growt
Slide 8: Strong Haynesville Production Outlook
Strong Haynesville Production Outlook Haynesville rig count and production remain at all-time high levels; production is expected to experience strong growth through 2030 Historical Haynesville production & rig count Haynesville production forecast (bcf/d) Bcf/d Rigs 18 100 +8 Bcf/d +8 21 16 90 14 8
Slide 9: Distinctive Adjusted EBITDA Growth
Distinctive Adjusted EBITDA Growth Growth through 2024 is underpinned by contracted investments Adjusted EBITDA1 (millions) +9% CAGR $920 - $970 $880 - $920 • Significant growth across both Pipeline and Gathering segments, in both Haynesville and Appalachia $770 - $810 • Value accretive expansion pr
Slide 10: Maintaining Balance Sheet Strength and Financial Flexibility
Maintaining Balance Sheet Strength and Financial Flexibility Committed to achieving investment grade credit rating Highly contracted No near-term debt Strong liquidity Low leverage cash flows maturities • ~$690 million of available • ~90% of 2022 total • 3.8x leverage ratio3 • No debt maturities unt
Slide 11: 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 ~$0.8 billion committed to LEAP, • Cash flow will be deployed to the most accretive Blue Union
Slide 12: 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 13: Growth Project Summary
Growth Project Summary Fully-contracted growth investments across both regions and business segments Contracted growth investments In-service Project Status date(s) Projects are backed by significant Haynesville LEAP pipeline expansion – Phase 1 Q4 2023 On track take-or-pay agreements • Expanding LE
Slide 14: Fully-contracted LEAP Expansion to 1.9 Bcf/d
Fully-contracted LEAP Expansion to 1.9 Bcf/d 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 Increasing LEAP by 90% from 1.0 Bcf/d to 1.9 Bcf/d
Slide 15: 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 • Constructing new compression, CO2 pipeline and capture equipment • Targeting a proximal geological storage formation with cap
Slide 16: 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 17: 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 18: 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 19: Appendix
Appendix _ oe Ew’ & Midstream
Slide 20: Guidance Summary
Guidance Summary (millions, except EPS) Guidance Adjusted EBITDA1 $880 - $920 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 21: 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 22: 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 23: 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 taxes, depreciation and amortization, which we refer to as “EBTDA.” A reconciliation Net income attributab