Slide 1: Second Quarter 2022 Earnings Call
Second Quarter 2022 Earnings Call August 3, 2022 DT Midstream
Slide 2: Safe Harbor Statement
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 expectations or pla
Slide 3: Second quarter 2022 accomplishments
Second quarter 2022 accomplishments Strong financial performance Delivered net income of $91 million and adjusted EBITDA1 of $205 million driven by strong growth in the pipeline segment Firmly on track to achieve 2022 guidance with year-to-date performance ahead of plan High confidence in 2023 early
Slide 4: Celebrating our 1-year anniversary after a successful first year
Celebrating our 1-year anniversary after a successful first year NYSE OPENING BELL* DTM LISTED NYSE DT Midstream NEW YORK STOCK EXCHANGE Executing on growth and value creating opportunities across our attractive footprint Key accomplishments Increasing LEAP capacity by 70% Increasing Blue Union1 cap
Slide 5: Strong quarterly increase in EBITDA - on track with full-year guidance
Strong quarterly increase in EBITDA - on track with full-year guidance Segment adjusted EBITDA1 (millions) $191 $205 $105 $116 $86 $89 Q1 2022 Q2 2022 Pipeline Gathering Strong second quarter growth in both segments Pipeline • Stonewall expansion placed in-service in May • Higher revenues on LEAP th
Slide 6: Quarterly financial results
Quarterly financial results Three months ended (millions, except EPS) June 30, 2022 March 31, 2022 Key drivers • Adjusted EBITDA1 $205 $191 Strong pipeline segment results • Pipeline segment $116 $105 Stonewall expansion in-service and higher LEAP revenues • Gathering segment $89 $86 Higher revenues
Slide 7: Strong confidence in achieving 2022 guidance and 2023 early outlook
Strong confidence in achieving 2022 guidance and 2023 early outlook New investments and existing business platforms support incremental growth • Year-to-date 2022 performance ahead of plan creating high confidence in full year guidance • New gathering expansion projects to be placed in-service start
Slide 8: Reached final investment decision on Haynesville system phase 2 expansion
Reached final investment decision on Haynesville system phase 2 expansion; expanding LEAP from 1.0 Bcf/d to 1.7 Bcf/d Capital efficient, lower-risk expansion provides timely access to growing LNG demand Phase 1: Increasing LEAP capacity by 30% and Blue Union gathering capacity by 25% • On-track and
Slide 9: Major growth projects are on track
Major growth projects are on track Contracted growth investments (new projects in bold) Project In-service date(s) Status Pipeline Stonewall expansion Q2 2022 Completed May 2022 Michigan Gathering to intrastate pipeline conversion Q4 2022 On track Haynesville LEAP pipeline expansion – Phase 1 Q4 202
Slide 10: Over 2.8 Bcf/d of production volumes gathered in Q2 2022
Over 2.8 Bcf/d of production volumes gathered in Q2 2022 Gathering segment average throughput1 (Bcf/d) +11% 2.52 2.62 2.91 2.91 2.81 1.23 1.35 1.55 1.57 1.53 1.29 1.27 1.37 1.34 1.28 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Haynesville Northeast Overall volume performance consistent with our plan for
Slide 11: DT Midstream is uniquely positioned to capitalize on CCS opportunities
DT Midstream is uniquely positioned to capitalize on CCS opportunities Proximity to favorable storage geology Key components for a successful CCS project Low CO2 capture cost Operational expertise Key criteria intersection of low CO2 capture cost, favorable storage geology, and operational expertise
Slide 12: Committed to operating in an ethical, environmentally sensitive, and socially responsible manner
Committed to operating in an ethical, environmentally sensitive, and socially responsible manner DT Midstream Corporate Sustainability Report | 2022 Achieving top-decile methane intensity performance Gathering segment methane intensity 2020 to 2021 35% Pipeline segment methane intensity 2020 to 2021
Slide 13: Clean assets, clean balance sheet, clean story
Clean assets, clean balance sheet, clean story DT Midstream 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 DT Midstream 13
Slide 14: Appendix
Appendix DT Midstream
Slide 15: DTM has significant exposure to growing LNG export demand
DTM has significant exposure to growing LNG export demand Arkansas Mississippi Louisiana Texas HAYNESVILLE SHALE Blue Union Gathering LEAP Lateral Golden Pass Lake Charles Driftwood Cameron Sabine Pass CP2 Calcasieu Pass Plaquemines Gulf Coast LNG corridor Cove Point LNG Maryland West Virginia Virgi
Slide 16: Favorable fundamentals and growth opportunities in both basins that we serve
Favorable fundamentals and growth opportunities in both basins that we serve Haynesville • Expanding LEAP from 1.0 Bcf/d to 1.7 Bcf/d; can be further expanded to 3.0 Bcf/d with looping and compression • Gathering and treating expansions serve growing production • Growth opportunities driven by stron
Slide 17: Year-to-date financial results
Year-to-date financial results Six months ended (millions, except EPS) June 30, 2022 June 30, 2021 Adjusted EBITDA1 $396 $384 Pipeline segment $221 $199 Gathering segment $175 $185 Operating Earnings2 $160 $174 Operating EPS2 $1.64 $1.80 Distributable cash flow3 $321 $317 Growth capital4 $50 $53 Mai
Slide 18: Financial strength supported by strong balance sheet with 8 year weighted average maturity
Financial strength is supported by strong balance sheet with a weighted average debt maturity of 8 years Maintaining flexible, well-capitalized balance sheet • $3.1 billion in long-term debt – $0.4 billion term loan B due 2028 – $1.1 billion senior notes due 2029 – $1.0 billion senior notes due 2031
Slide 19: Disciplined financial approach
Disciplined financial approach Self-funded investment program $1.2 - $1.7 billion • Growth investment range from 2021 - 2025 is driven by organic opportunities within existing platforms Strong organic growth 7% - 9% growth • 2021 adjusted EBITDA1 original guidance to 2022 adjusted EBITDA guidance Di
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: Adjusted EBITDA and distributable cash flow (DCF) are non-GAAP measures
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 to include our proportional shar
Slide 22: Operating earnings and operating earnings per share are non-GAAP measures
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 a more me
Slide 23: Reconciliation of Reported to Operating Earnings (non-GAAP)
Reconciliation of Reported to Operating Earnings (non-GAAP) Three Months Ended June 30, 2022 March 31, 2022 Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings Reported Earnings Pre-tax Adjustments Income Taxes Operating Earnings Gain on sale $ (17) A $ 5 $ — $ — Net Income Att
Slide 24: Reconciliation of Reported to Operating Earnings per diluted share (non-GAAP)
Reconciliation of Reported to Operating Earnings per diluted share(2) (non-GAAP) Three Months Ended June 30, 2022 March 31, 2022 Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings Reported Earnings Pre-tax Adjustments Income Taxes Operating Earnings Gain on sale $ (0.17) A $ 0
Slide 25: Reconciliation of Net Income to Adjusted EBITDA (non-GAAP)
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA (non-GAAP) Three Months Ended Six Months Ended June 30, 2022 March 31, 2022, June 30, 2022, June 30, 2021 Consolidated (millions) Net Income Attributable to DT Midstream $ 91 $ 81 $ 172 $146 Plus: Interest expense 33 31 64
Slide 26: Reconciliation to Adjusted EBITDA, Pipeline Segment (non-GAAP)
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment (non-GAAP) Three Months Ended Six Months Ended June 30, 2022 March 31, 2022, June 30, 2022, June 30, 2021 Pipeline (millions) Net Income Attributable to DT Midstream $ 52 $ 48 $ 100 $86 Plus: Interest expen
Slide 27: Reconciliation to Adjusted EBITDA, Gathering Segment (non-GAAP)
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment (non-GAAP) Three Months Ended Six Months Ended June 30, 2022 March 31, 2022, June 30, 2022, June 30, 2021 Gathering (millions) Net Income Attributable to DT Midstream $ 39 $ 33 $ 72 $60 Plus: Interest expe
Slide 28: Reconciliation of Net Income to Distributable Cash Flow (non-GAAP)
Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow (non-GAAP) Three Months Ended Six Months Ended June 30, 2022 March 31, 2022, June 30, 2022, June 30, 2021 (millions) Net Income Attributable to DT Midstream $ 91 $ 81 $ 172 $146 Plus: Interest expense 33 31 64 50 Pl