Slide 1: Year End 2021 Earnings Call
YEAR END 2021 EARNINGS CALL FEBRUARY 25, 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: 2021 accomplishments
2021 accomplishments Executed spin-off from DTE Energy Successful debt raise and equity trading debut Stand-alone C-Corp Strong financial performance 2021 adjusted EBITDA 1 provided 12% growth from 2020 original guidance Delivered distinctive total shareholder return Robust commercial activity New c
Slide 4: Positioned for continued success in 2022 and beyond
Positioned for continued success in 2022 and beyond Strong financial performance • Increased 2022 adjusted EBITDA1 guidance midpoint provides 8% growth from 2021 original guidance • 2023 adjusted EBITDA early outlook delivers continued organic growth Delivering superior shareholder returns • Increas
Slide 5: Strong durable portfolio, delivering premium growth
Strong durable portfolio, delivering premium growth Adjusted EBITDA1 (millions) Operating earnings2 (millions) +12% 800 700 600 $665-$703 $710 $710-$750 $768 2020 2021 Original guidance Actual 350 300 250 +18% $277-$293 $300 $296-$312 $336 2020 2021 Original guidance Actual 1. Definition and reconci
Slide 6: Excellent 2021 performance across both segments
Excellent 2021 performance across both segments Adjusted EBITDA1 (millions) Operating earnings2 (millions) $407 $361 2021 $768 Pipeline Gathering 2021 $336 2021 47% 53% Business mix Operating EPS: $3.46 Key drivers • Greater contribution from pipeline segment – LEAP in-service for full-year 2021 – I
Slide 7: Increased 2022 guidance provides 8% growth
Increased 2022 guidance provides 8% growth Positioned to deliver strong organic growth in 2022 • Leveraging well positioned asset platforms in the Haynesville and Appalachia • Strong growth in pipeline segment • Long-term contracted cash flows • Offsetting first full-year of public company costs 700
Slide 8: Strengthening total shareholder returns with 7% dividend increase
Strengthening total shareholder returns with 7% dividend increase Annualized dividend ($/share) $0.64 Quarterly dividend $0.60 $2.40 $2.56 2021 2022 +7% Long-term contracted cash flow generation supports durable and growing dividend • Board approved increased dividend of $0.64 / share for Q1 2022 •
Slide 9: Strong asset platforms expected to deliver 5%-7% growth into 2023
Strong asset platforms are expected to deliver 5%-7% growth into 2023 Well positioned asset platforms in premier dry gas basins will continue to drive growth • Investing in growth opportunities in both the Haynesville and Appalachia • Strong growth across both segments • Expansion projects with long
Slide 10: Maximizing total shareholder return via strong cash flow generation
Maximizing total shareholder return via our strong cash flow generation $575-$625 2022 guidance Distributable cash flow 1 (millions) Highly accretive growth projects – Substantial set of organic projects at favorable build multiples Return capital to shareholders – Increasing dividend with growth in
Slide 11: Solidifying our 5-year growth investment plan
Solidifying our 5-year growth investment plan through highly accretive organic projects 2022 guidance $ 320-$ 360 $30-$40 $350-$400 2022 capital investments (millions) Growth capital1 Maintenance capital Project In-service date(s) Pipeline Vector Blue Water Energy Center lateral Q1 2021 Stonewall ex
Slide 12: Haynesville wellhead to water system expansion
Phase 1 Haynesville “wellhead to water” system expansion connects highly economic supply with growing global demand Strong fundamentals around our Haynesville system have yielded new contracted expansions Phase 1 • Expansion agreements executed with largest Haynesville producer, Southwestern Energy
Slide 13: Well positioned assets provide robust organic growth opportunities
Our well positioned assets provide robust organic growth opportunities Platform Region 2022/2023 commercial focus Pipeline LEAP Lateral Haynesville • We remain in active discussions with multiple counterparties for a phase 2 expansion NEXUS Pipeline Appalachia • Open season discussions underway Mill
Slide 14: Leading the industry with a mature ESG program
Leading the industry with a mature environmental, social and governance program Environmental • Targeting net zero greenhouse gas emissions by 2050 and a 30% reduction by 2030 • Continuing to advance CCS opportunity in Louisiana • Advancing hydrogen development opportunities with strategic partnersh
Slide 15: 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 Mature environmental, social and governance leadership DT Midstream Delivering accretive growth in 2022 and
Slide 16: Appendix
APPENDIX LL’ i Midstream.
Slide 17: A clear, disciplined and balanced investment thesis
DTM provides a clear, disciplined and balanced investment thesis Integrated assets in world class dry gas basins serving key markets Haynesville / Appalachia dry gas focus Integrated asset footprint Well positioned for energy transition Predictable, robust contracted cash flows Strong cash flow Long
Slide 18: Growing and durable business positioned for today and the future
Growing and durable business that is positioned for today and the future Well balanced business mix 47% 53% Pipeline Gathering 2021 Adjusted EBITDA1 4% increase in pipeline segment contribution since 2020 Portfolio durability 100% natural gas focused Increasing contract length ~9 years overall weigh
Slide 19: Strong gathering volume growth across both regions in 2021
Strong gathering volume growth across both regions in 2021 1.29 1.29 1.27 1.37 1.16 1.23 1.35 1.55 Q3 2021 Q1 2021 Q2 2021 2.52 Q4 2021 2.91 2.46 2.62 +19% Gathering segment average throughput 1 (Bcf/d) +15% +8% Q3 to Q4 growth Haynesville Northeast Haynesville • Higher production volumes on Blue Un
Slide 20: Executing on our plan to be net zero by 2050
Executing on our plan to be net zero by 2050 Currently executing – Carbon capture and sequestration – Electric compression – Renewable natural gas connections Opportunities being evaluated – Methane reducing technologies (e.g., vent control devices, electrical glycol pumps, instrument air system) –
Slide 21: Committed to strong governance practices
Committed to strong governance practices Best-in-class governance practices • Structured as C-Corp with separate CEO and Executive Chairman • Long-term incentive plans tied to total shareholder return targets • Board committee focused on ESG initiatives • Broad range of experience and diversity • Fi
Slide 22: Strong balance sheet with no significant debt maturities for six years
Financial strength is supported by strong balance sheet with no significant debt maturities for six years Maintaining flexible, well-capitalized balance sheet • Continuously monitoring market conditions for capital structure improvements • $3.1 billion in long-term debt is in place – $1.0 billion te
Slide 23: Financial policy overview
Financial policy overview Self-funded investment program $1.2-$1.7 billion • Growth investment range from 2021-2025 is driven by organic opportunities within existing platforms Industry leading organic growth 7%-9% growth • 2021 adjusted EBITDA1 original guidance to 2022 adjusted EBITDA guidance Dis
Slide 24: 2021 results
2021 results Three months ended December 31 Year ended December 31 (millions, except EPS) Q4 2021 Q4 2020 Variance 2021 2020 Variance Adjusted EBITDA 1 $196 $175 $21 $768 $710 $58 Pipeline segment $107 91 $16 $407 $348 $59 Gathering segment $89 $84 $5 $361 $362 ($1) Operating Earnings 2 $87 $72 $15
Slide 25: 2022 guidance summary
2022 guidance summary (millions, except EPS) 2022 Guidance Adjusted EBITDA1 $770-$810 Operating Earnings2 $319-$335 Operating EPS 2 $3.30-$3.46 Distributable Cash Flow3 $575-$625 Capital Expenditures $350-$400 Growth Capital4 $320-$360 Maintenance Capital $30-$40 1. Definition and reconciliation of
Slide 26: Adjusted EBITDA and distributable cash flow 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, further adjusted to include our proportional share of net income from our equity meth
Slide 27: 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 28: Reconciliation of Reported to Operating Earnings
Reconciliation of Reported to Operating Earnings (non-GAAP) Three Months Ended December 31, 2021 2020 Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings Reported Earnings Pre-tax Adjustments Income Taxes (1) Operating Earnings (millions) Transaction costs $ — $ — $ 4 A $ (1) N
Slide 29: Reconciliation of Reported to Operating Earnings per diluted share
Reconciliation of Reported to Operating Earnings per diluted share (2) (non-GAAP) Three Months Ended December 31, 2021 2020(3) Reported Earnings Pre-tax Adjustments Income Taxes(1) Operating Earnings Reported Earnings Pre-tax Adjustments Income Taxes(1) Operating Earnings (per share) Transaction Cos
Slide 30: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA (non-GAAP) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Consolidated (millions) Net Income Attributable to DT Midstream $ 87 $ 69 $ 307 $ 312 Plus: Interest expense 31 31 112 113 Plus Income t
Slide 31: Reconciliation to Adjusted EBITDA: Pipeline Segment
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment (non-GAAP) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Pipeline (millions) Net Income Attributable to DT Midstream $ 51 $ 41 $ 178 $ 155 Plus: Interest expense 14 11 51 43 Pl
Slide 32: Reconciliation to Adjusted EBITDA: Gathering Segment
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment (non-GAAP) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Gathering (millions) Net Income Attributable to DT Midstream $ 36 $ 28 $ 129 $ 157 Plus: Interest expense 17 20 61 70
Slide 33: Reconciliation of Net Income to Distributable Cash Flow
Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow (non-GAAP) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 (millions) Net Income Attributable to DT Midstream $ 87 $ 69 $ 307 $ 312 Plus: Interest expense 31 31 112 113 Plus: Income tax e