Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — US Capital Advisors Midstream Corporate Access Day 2024
24 slides from Dt Midstream's conference presentation, Jan 23, 2024
Slide 1: US Capital Advisors Midstream Corporate Access Day
US C APITAL ADVIS OR S M IDS TR E AM C OR POR ATE ACC E S S DAY JA NUA R Y 2 3 , 2 0 2 4
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 and Mature environmental, Highly contracted Strong balance sheet well-positioned social and governance cash flows with low leverage assets leadership • Haynesville / Appalachia • Long-term take-or-pay • Self-funded
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 EBITDA 1 growth (millions) +20% CAGR $841 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Natural gas price Natural gas price down cycle down cycle 1
Slide 6: Significant LNG Export Demand Growth Expected Over the Next Decade
Significant LNG Export Demand Growth Expected Over the Next Decade ~11 Bcf/d of Louisiana Gulf Coast area LNG export growth through 2033 1 US LNG export capacity (bcf/d) 32 +16 Bcf/d 28 24 20 16 12 8 4 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Sabine Pass Calcasieu Pass Plaquemines Po
Slide 7: Strong Long-term Production Outlook in Both Basins
Strong Long-term Production Outlook in Both Basins Haynesville & 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 50 67 40 27 49 30 15 20 10 40
Slide 8: Capital Allocation Approach
Capital Allocation Approach Preserve balance sheet strength • Deleveraging into mid-3x’s (proportional) / low 3x’s (on-balance sheet) over the 5-year period • Committed to long-term 4x leverage ratio ceiling Durable and growing dividend • +15% dividend increase since the Spin-Off • 2.4x dividend cov
Slide 9: 2023-2027 Overall Growth Capital Outlook
2023-2027 Overall Growth Capital Outlook Opportunity for excess free cash flow allocation in 2024 2023-2027 capital outlook (Growth capex) Committed capital $1.7 - $2.2 Committed to preserving balance sheet strength billion and achieving an investment grade credit rating • Investments in 2024 will b
Slide 10: Strong Organic Opportunities Across Our Existing Footprint
Strong Organic Opportunities Across Our Existing Footprint Asset 2023-2027 commercial focus Overview • Connecting growing Haynesville supply with growing LNG LEAP • Active discussions for expansions up to ~3 Bcf/d demand • Active discussions with existing and new customers for • Providing incrementa
Slide 11: Growth Investment Summary
Growth Investment Summary Projects are on schedule and on budget Contracted growth investments Key project updates • LEAP Phase 2 expansion mechanically complete; Project In-service date(s) ready for in-service on January 1, 2024 Haynesville LEAP pipeline expansion – Phase 1 In-service • LEAP Phase
Slide 12: Ohio Utica System Initial Trunkline Construction Completed
Ohio Utica System Initial Trunkline Construction Completed Overall construction progressing ahead of schedule Emerging associated gas resource development area • Initial gathering backbone buildout of >200 MMcf/d capacity – Expected DTM investment1 of ~$100 million for 2023-2024 Direct access – ~5x
Slide 13: Phase 2 LEAP Expansion Mechanically Complete Early
Phase 2 LEAP Expansion Mechanically Complete Early Capacity available for firm service starting January 1, 2024 Haynesville / Louisiana Gulf Coast DTM assets LNG facilities DTM treating plants Operational Blue Union expansion build Under development Phase 3 LEAP expansion on track and on budget to E
Slide 14: DTM Assets are Strategically Located to Support Growing Demand
DTM Assets are Strategically Located to Support Growing Demand LEAP is directly interconnected to ~6 Bcf/d of incremental new LNG export demand growth Adding new supply and demand connectivity to 1 Haynesville system to support LNG demand wave •1 New 400 MMcf/d supply interconnect with 3rd- party pr
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 • Project scope includes capture equipment, a new CO2 pipeline and storage development • Targeting geological storage formation
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 Chairman • Long-term incentive plans tied to total shareholder return targets Robert Skaggs, Jr. Stephen Baker • Board committee focused on ESG init
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: Focused on Impactful Sustainability Initiatives
Focused on Impactful Sustainability Initiatives 2023 Corporate Sustainability Report Highlights • MSCI upgraded DTM to the second highest ESG rating of “AA” • Reduced year-over-year employee safety incident rate by 43% • Doubled the percentage of ethnically diverse leadership • Increased workforce d
Slide 20: Appendix
Appendix ee Ew’ & Midstream
Slide 21: 2023/2024 Guidance Summary
2023/2024 Guidance Summary (millions, except EPS) Current guidance Adjusted EBITDA1 $905 - $925 Operating Earnings2 $340 - $356 Operating EPS 2 $3.50 - $3.66 2023 Distributable Cash Flow 3 $650 - $675 Capital Expenditures4 $730 - $790 Growth Capital4 $700 - $750 Maintenance Capital $30 - $40 2024 Ad
Slide 22: 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 23: 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 24: 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 interest taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of Net inco
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