DT Midstream, Inc. · NYSE:DTM
DT Midstream — Investor Presentation (June 2021)
31 slides from DT Midstream's investor presentation, June 2021
Slide 1: Premier Independent Midstream C-Corp
PREMIER INDEPENDENT MIDSTREAM C-CORP JUNE 2021
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: Spin is on track
Spin is on track Achieved progress to date ✓ Board of Directors nominated ✓ SEC Form 10 effective ✓ Successful debt raise Upcoming milestones on track ❑ Virtual equity road show June 9 - 28 ❑ When-issued trading to begin on June 18 ❑ Record date for distribution of DTM shares on June 18 ❑ Distributi
Slide 4: Investment thesis
Investment thesis • Positioned to capitalize on growing natural gas production volumes in the Marcellus / Utica and Integrated assets in premier dry Haynesville, which are expected to produce a majority of U.S. gas by 2035 gas basins serving key markets • Fully integrated platforms providing service
Slide 5: Dry gas-focused independent midstream C-Corp with diverse pipeline and gathering assets
Dry gas-focused independent midstream C-Corp with a diverse portfolio of pipeline and gathering assets Q1 2021 adjusted EBITDA1 Pipeline and Other 52% Gathering DT Midstream, Inc. 48% Pipeline and Other Gathering Unconsolidated JV Consolidated pipelines Storage pipelines Appalachia NEXUS - 50% Blues
Slide 6: Experienced management team with a proven track record of success
Experienced management team with a proven track record of success Robert Skaggs, Jr. David Slater Christopher Zona Executive Chairman President and CEO COO Over 35 years of experience in the energy Over 30 years of experience in the energy Over 28 years of experience in the energy industry; independ
Slide 7: Leading the industry with a mature ESG program
Leading the industry with a mature environmental, social and governance program Environmental Social Governance • Targeting net zero greenhouse gas • Focusing on the safety, diversity, well- • Focusing on the oversight of emissions by 2050; among the first in being and success of our employees envir
Slide 8: Fully integrated platform transporting production from low-cost dry gas formations to demand markets
Fully integrated platform transporting production from leading low-cost dry gas formations to growing demand markets Pipeline and Other connect world-class basins to high-quality Eastern Canada markets Northeast • 900 miles of FERC-regulated interstate pipelines that have interconnections with multi
Slide 9: Diversified asset base providing critical infrastructure and integrated service
Diversified asset base providing critical infrastructure and fully integrated wellhead to end market service 7% 6% 52% 40% 29% Q1 2021 adjusted Q1 2021 adjusted Q1 2021 adjusted EBITDA1 by segment 36% EBITDA by demand area EBITDA by supply area 65% 48% 17% Pipeline and Other Gathering Gulf Coast Mid
Slide 10: Highly stable cash flows backed by long-term fee-based contracts
Supported by highly stable cash flows backed by long-term fee-based contracts Strong cash flow support Underpinned by long-term, fee-based contracts with average life of approximately % MVC / demand nine years ~90% ~90% or flowing gas2 • ~90% of total contribution1 is from MVCs / demand charges (tak
Slide 11: Long history and strong working relationship with key customers
Long history and strong working relationship with key customers Solid and improving credit profile Top 10 customers1 • Mix of demand pull and supply push customers across our assets • Utility and pipeline customers provide strong demand pull • Financial health of producers continues to improve • Pro
Slide 12: Visibility into highly accretive growth projects
Visibility into highly accretive growth projects Platforms Growth Phase Growth opportunities Blue Union Gathering Early Gathering build-outs Tioga Gathering Early Gathering build-outs Gathering Appalachia Gathering Early / Mid Gathering build-outs Michigan Gathering Advanced Service conversions Susq
Slide 13: Track record of organic development and acquisitions
Consistent track record of successful organic development and acquisitions underpinned by premium financial returns Historical adjusted EBITDA1 growth $710 (millions) $82 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Asset growth timeline ✓ Washington 10 expansion ✓ Bluestone late
Slide 14: Asset portfolio supported by long-term contracts leads to consistent growth
Asset portfolio supported by long-term contracts leads to consistent growth Positioned for continued success with strong growth outlooks for Adjusted EBITDA1, operating earnings and EPS2 2021 and 2022 (millions, except EPS) • Consistent with historical performance; on track to achieve 2021 ~7% adjus
Slide 15: Strong balance sheet with no significant debt maturities for seven years
Financial strength is supported by strong balance sheet with no significant debt maturities for seven years 1 Debt maturity profile (billions) $1.4 Maintaining flexible, well-capitalized balance sheet $1.2 $1.1 $1.0 $1.0 • No significant debt maturities for seven years from $1.0 initial debt offerin
Slide 16: Strong cash flow generation provides significant financial flexibility
Strong cash flow generation provides significant financial flexibility Annualized proforma 2021 distributable cash flow1 (millions) $710 - $750 $500 - $550 $275 - $325 Adjusted EBITDA2 Interest Payments Maintenance Capital Other Distributable Cash Flow Dividend Value creation Considerations for 2022
Slide 17: Clean assets, clean balance sheet, clean story
Clean assets, clean balance sheet, clean story Integrated assets in premier dry gas basins serving key markets Stable balance sheet with low leverage Predictable, robust contracted cash flows NYSE: DTM Mature environmental, social and governance leadership 17
Slide 18: Appendix
APPENDIX _ oe EW § Midstream
Slide 19: Committed to ethical and transparent governance practices
Committed to ethical and transparent governance practices Best-in-class governance practices • Structured as C-Corp with separate CEO and Executive Chairman • Incentive plans tied to safety and total shareholder return targets Robert Skaggs, Jr. David Slater Executive Chairman President and CEO • Bo
Slide 20: Focusing on diversity, safety, well-being of employees, customers and communities
Focusing on the diversity, safety, well-being and success of our employees, customers and communities Embodying a strong safety culture • Safety culture is built on empowerment, training, process safety, proactive risk mitigation and maintaining high safety standards • Consistent safety performance
Slide 21: Mature environmental culture and industry leading aspirations
Mature environmental culture and industry leading aspirations Annual GHG emissions Goal of leading environmental stewardship in the industry (million metric tons / year) • Announced net zero emissions target by 2050; among first in sector to establish ~30% this goal – Targeting ~30% emissions reduct
Slide 22: Pipeline and Other segment is critical, low-risk infrastructure
Pipeline and Other segment is comprised of critical, low-risk infrastructure Segment contribution composition1 Stable cash flows • Revenue is predominantly from MVCs / demand charges (take-or-pay) and currently flowing gas • Substantially all fee-based revenue with Contract type Customer type no com
Slide 23: High-quality Pipeline and Other segment backed by strong customers
High-quality Pipeline and Other segment backed by strong customers and fee-based demand charges Average Q1 2021 segment remaining Ownership Overview Key customers contribution1 contract tenor • NEXUS is a 256-mile, 1.4 Bcf/d pipeline linking Appalachia supply with 28% ~9 years Midwest and Ontario ma
Slide 24: High-quality Pipeline and Other segment backed by strong customers
New slide High-quality Pipeline and Other segment backed by strong customers and fee-based demand charges Average Q1 2021 segment remaining Overview Key customers contribution1 contract tenor • 155-mile, 1.0 Bcf/d pipeline connecting Haynesville supply to the Gulf Coast LEAP ~9 years • Supported by
Slide 25: Gathering segment features strategically-located assets serving top-tier supply
Gathering segment features strategically-located assets serving top-tier supply Q1 2021 contribution composition1 Premier supply basins • Gathering assets serve the Marcellus / Utica and Haynesville, which are the largest and among the most economic dry gas basins in the U.S. Contract type Supply ba
Slide 26: Well-positioned assets backed by MVCs, acreage dedications and contract enhancements
Well-positioned assets are backed by substantial MVCs, acreage dedications and strong contract enhancements Q1 2021 Average segment remaining Overview Key customers contribution1 contract tenor • 343-mile gathering system in Haynesville basin in Louisiana and east Texas Blue Union • Capacity of over
Slide 27: Key demand markets feature positive long-term growth outlooks
Key demand markets feature positive long-term growth outlooks Gulf Coast demand Midwest demand Northeast and Mid-Atlantic demand1 Eastern Canada demand (Bcf/d) (Bcf/d) (Bcf/d) (Bcf/d) 39% 13% 5% 21% 54.6 14.8 14.1 2.9 19.3 14.0 17.1 2.4 39.2 7.5 8.1 11.6 8.4 1.6 Other2 11.4 8.4 1.5 Industrial 9.7 11
Slide 28: Assets are backed by well-positioned, high-quality resources
Assets are backed by well-positioned, high-quality resources 2022 - 2024 drill supply curve1 $ / MMBtu (Bcf/d) 3.5 3.0 2.5 ~18 Bcf/d of new supply is needed to meet expected demand 2.0 1.5 Susquehanna Gathering / Bluestone Blue Union / LEAP 1.0 Appalachia Gathering System / Stonewall Gas Gathering O
Slide 29: Adjusted EBITDA and distributable cash flow are non-GAAP measures
New slide 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, further adjusted to include our proportional share of net income from our e
Slide 30: Reconciliation of reported to operating earnings (non-GAAP)
New slide Reconciliation of reported to operating earnings (non-GAAP) 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 meanin
Slide 31: Reconciliation of net income to Adjusted EBITDA
New slide Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA (millions) 2008 2020 1. Includes share of our equity method investees’ earnings before taxes, depreciation and amortization, which we refer to as “EBTDA.” A reconciliation Net income attributable to DT Midstream $