Slide 1: Second Quarter 2023 Earnings Call
SECOND QUARTER 2023 EARNINGS CALL AU G U S T 1 , 2 0 2 3
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: Second Quarter 2023 Accomplishments
Second Quarter 2023 Accomplishments Strong financial performance ✓ Net income of $91 million and Adjusted EBITDA1 of $224 million ✓ Confident in 2023 Adjusted EBITDA guidance and 2024 Adjusted EBITDA early outlook Successful development activity TBD - Construction photo ✓ New greenfield gathering op
Slide 4: 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 5: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results Adjusted EBITDA1 (millions), xx segment % of overall $225 $224 Pipeline • Lower winter weather related revenues from $141 63% $139 62% pipeline joint ventures in Q2 2023 Gathering • Q2 2023 results in-line with Q1 2023 $84 37% $85 38% Q1 2023 Q2 2023 Gathering P
Slide 6: New Greenfield Investment in Ohio Utica Resource
New Greenfield Investment in Ohio Utica Resource Finalized development plan with new owner1, accelerated build into 2023 from 2024 Emerging associated gas resource development area • Initial gathering backbone buildout of >200 MMcf/d capacity – Expected DTM investment2 of ~$100 million for 2023-2024
Slide 7: 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 a proximal geological storag
Slide 8: 2023-2027 Overall Growth Capital Outlook Remains Unchanged
2023-2027 Overall Growth Capital Outlook Remains Unchanged Shifting 2024 committed capital into 2023 for new Ohio Utica opportunity 2023-2027 capital outlook (Growth capex), Committed capital $1.7 - $2.2 billion Accelerating new greenfield investment • Committed capital of ~$0.8 billion is unchanged
Slide 9: Growth Investment Summary
Growth Investment Summary Projects remain on-schedule and on-budget Contracted growth investments Key project updates • LEAP phase 1 construction on-track for Project In-service date(s) early Q4 2023 in-service • Gathering expansions on-schedule Haynesville LEAP pipeline expansion – Phase 1 Q4 2023
Slide 10: Gathering Volume Summary
Gathering Volume Summary Haynesville throughput Northeast throughput (bcf/d) Blue Union Gathering (bcf/d) Susquehanna Gathering Appalachia Gathering Tioga Gathering July average 1.70 1.35 1.36 1.39 1.66 1.63 ~1.6 Bcf/d 1.35 1.28 1.53 1.53 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 20
Slide 11: Financial Results
Financial Results Three months ended (millions, except EPS) June 30, 2023 March 31, 2023 Key drivers Adjusted EBITDA1 $224 $225 Pipeline segment $139 $141 Gathering segment $85 $84 Operating Earnings2 $91 $81 • Deferred tax adjustment in Q1 2023 Operating EPS2 $0.93 $0.84 Distributable Cash Flow3 $1
Slide 12: Diversified Asset Base Anchored by Strong Pipeline Segment
Diversified Asset Base Anchored by Strong Pipeline Segment 7% 7% 62% 26% 28% 43% Q2 2023 Adjusted Q2 2023 Adjusted Q2 2023 Adjusted EBITDA1 by segment EBITDA by demand area EBITDA by supply area 67% 38% 22% Pipeline Gathering Gulf Coast Midwest Marcellus / Utica Haynesville Northeast & Mid-Atlantic
Slide 13: Appendix
Appendix _ oe Ew’ & Midstream
Slide 14: 2023/2024 Guidance Summary
2023/2024 Guidance Summary (millions, except EPS) Prior guidance Current guidance Key drivers Adjusted EBITDA1 $895 - $935 $895 - $935 Operating Earnings2 $340 - $356 $340 - $356 Operating EPS2 $3.50 - $3.66 $3.50 - $3.66 2023 Distributable Cash Flow3 $625 - $675 $625 - $675 Capital Expenditures4 $6
Slide 15: Capital Allocation Approach
Capital Allocation Approach Preserve balance sheet strength • Current plan naturally deleverages the business into mid 3x’s 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 coverage, wit
Slide 16: 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 17: Phase 1 LEAP Expansion On-track for Early Q4 2023 In-service
Phase 1 LEAP Expansion On-track for Early Q4 2023 In-service 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 Louisiana New electric compression
Slide 18: 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 ~10 Bcf/d of Louisiana Gulf 12 Coast area LNG export growt
Slide 19: Strong Long-term Production Outlook in Both Basins
Strong Long-term Production Outlook in Both Basins Haynesville & Appalachia production is expected to experience significant growth through 2030 Historical production Production forecast (bcf/d) Haynesville Appalachia (bcf/d) Haynesville Appalachia 60 +15 Bcf/d 61 50 40 21 46 30 13 20 10 40 0 33 201
Slide 20: 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 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 Reported to Operating Earnings 23
Slide 24: Non-GAAP Reconciliations
New slide Non-GAAP Reconciliations Reconciliation of Reported to Operating Earnings per diluted share(2) 24
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA 25
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment 26
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment 27
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow 28