Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — Investor Presentation (November 2024)
27 slides from Dt Midstream's investor presentation, November 2024
Slide 1: DT Midstream – Company Presentation
DT Midstream – Company Presentation November 2024 Ammons compressor station – Appalachia Gathering System phase 2 expansion
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: DTM Provides a Distinctive Investment Opportunity
DTM Provides a Distinctive Investment Opportunity Premium, high-quality attributes compared to other gas-focused peers 5-7% long-term growth rate EBITDA CAGR Dividend CAGR Leading Organic self-funded and fully supported by 2021-2023 2021-2023 9% Growth ~$1.3B organic project backlog 7% 100% natural
Slide 4: DT Midstream has strategically located, integrated assets
DT Midstream has strategically located, integrated assets Uniquely positioned to benefit from growing LNG and power demand Sources: S&P Global Commodity Insights, Wood Mackenzie North America Gas Investment Horizon Outlook – October 2023 4
Slide 5: Delivering Distinctive and Predictable Growth
Delivering Distinctive and Predictable Growth Track record of strong growth Historical Adjusted EBITDA1 Relative Growth (Millions) 2020-2023 Adjusted EBITDA CAGR 9% 9% CAGR $924 $841 $778 $720 4% 2020 2021 2022 2023 Peer average2 ✓ Well positioned assets and take-or-pay contract structures consisten
Slide 6: Diversified Asset Base Anchored by Strong Pipeline Segment
Diversified Asset Base Anchored by Strong Pipeline Segment Highest natural gas pipeline asset contribution in sector1 Business mix (% of total 2023 Adjusted EBITDA2) Highly contracted asset portfolio supports Millennium NEXUS 11% Pipeline stable cash flows 63% 13% Ohio Utica LEAP • Average portfolio
Slide 7: High Quality Cash Flows and Customers
High Quality Cash Flows and Customers Cash flows are underpinned by take-or-pay contracts and high credit quality customers Total revenue contribution Customer credit (% of 2023 contribution1) (% of 2023 contribution) ~90% ~85% Demand / MVC or Investment grade flowing gas2 Non-investment grade with
Slide 8: Continuing Our Track Record of Distinctive Growth
Continuing Our Track Record of Distinctive Growth Targeting long-term Adjusted EBITDA growth of 5-7% Adjusted EBITDA1 (millions) 5-7% long-term +6% growth rate $980 - $1,040 Differentiated growth drivers $930 - $980 $1.3 billion organic growth project backlog Tangible energy transition projects
Slide 9: Upgraded to Investment Grade by Fitch Ratings
Upgraded to Investment Grade by Fitch Ratings Reduction in DTM debt strengthens balance sheet and extends runway to next maturity Debt maturity profile (billions) Undrawn revolver capacity Drawn revolver balance1 Long-term debt No maturities for 5 years Investment grade Fitch BBB- long-term issuer d
Slide 10: Growth Investment Projects
Growth Investment Projects Continue to advance and deliver on short-cycle growth investments Expected Project in-service dates Haynesville LEAP expansion – Phase 4 1H 2026 In-flight project updates Pipeline Stonewall to Mountain Valley Pipeline (MVP) expansion 1H 2026 • Reached FID on LEAP Phase 4 e
Slide 11: Sizeable Organic Project Backlog
Sizeable Organic Project Backlog Balanced opportunity set across all business segments Pipeline Gathering Project Contribution Status Project Contribution Status LEAP phase 1 expansion Aug. 2023 In-service Blue Union gathering / treating expansion Dec. 2023 In-service LEAP phase 2 expansion Dec. 202
Slide 12: Strong Long-term Production Outlook in Both Basins
Strong Long-term Production Outlook in Both Basins Haynesville and 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 67 50 40 27 49 30 15 20 10
Slide 13: LEAP Phase 4 expansion will increase capacity to 2.1 Bcf/d
LEAP Phase 4 expansion will increase capacity to 2.1 Bcf/d Haynesville System to provide additional 0.2 Bcf/d of wellhead to Gulf Coast markets access DTM assets LNG facilities Capital efficient, lower-risk expansion provides timely DTM treating plants Operational access to coming LNG demand LEAP Ph
Slide 14: Upsizing Strategic Appalachian Basin Interconnect
Upsizing Strategic Appalachian Basin Interconnect Expansion increases interconnect capacity and access to growing Mid-Atlantic market Access to Midwest Markets New agreement expanding Mountain Valley Pipeline (MVP) interconnect • Increases outlet capacity on Stonewall by 100 MMcf/d – In-service expe
Slide 15: Louisiana Carbon Capture and Sequestration
Louisiana Carbon Capture and Sequestration Project has strong economics and will achieve a sizable reduction in our Scope 1 emissions Project timeline Capital Making progress toward a final investment decision with a phased deployment ✓ Class VI well permit filing approach to development Q4 2022 ✓ C
Slide 16: Clean Fuels Gathering Project
Clean Fuels Gathering Project Energy Transition investment leverages DTM’s gas gathering, treating and tax credit expertise Clean Fuels Transaction Process Producer Responsibility DT Midstream Responsibility Fugitive coal mine methane gas Attractive investment establishes DTM as an early mover in th
Slide 17: Disciplined Capital Investment
Disciplined Capital Investment Strong organic origination is solidifying our 2025 capital plan and is underpinning future growth Growth capex (millions) Committed Pre-FID / Highly Probable Cash flow after dividends $330 - $350 Flexible, short-cycle, capital investments • Capital investment program f
Slide 18: Balanced Partnership Governance Structures
Balanced Partnership Governance Structures Joint Venture Asset Original Independently Owner Ownership Operator Developer Managed Managed Balanced and equitable DT Midstream 52.5% ✓ partnership agreements ✓ TC Energy 47.5% ✓ ✓ • Independent management teams for FERC assets DT Midstream 50% ✓ –
Slide 19: Sustainability Accomplishments
Sustainability Accomplishments Committed to an authentic sustainability program Emissions Safety Diversity & Employee Community Training & Reductions Focus Inclusion Volunteerism Outreach Development 6% 83% ~160% 3,650 $535K 4,079 Reduction in Reduction in Increase in diverse Volunteer hours in Cont
Slide 20: 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 • Dedicated Board ESG committee Robert Skaggs, Jr. Stephen Baker • Bro
Slide 21: Emissions Reduction Plan
Emissions Reduction Plan Strategic, methodical approach to reach net zero emissions by 2050 Emissions Reduction Plan Core Strategy Components (Scope 1 Million MT) -30% Minimize near-term emissions growth ✓ via electric compression and emissions management protocols 1.47 Develop Carbon Capture & Sequ
Slide 22: Appendix
Appendix 22
Slide 23: 2024/2025 Guidance Summary
2024/2025 Guidance Summary (millions, except EPS) Current Guidance Adjusted EBITDA1 $950 - $980 Operating Earnings2 $345 - $375 Operating EPS2 $3.53 - $3.83 2024 Distributable Cash Flow3 $670 - $700 Capital Expenditures $360 - $390 Growth Capital4 $330 - $350 Maintenance Capital $30 - $40 2025 Adjus
Slide 24: 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 25: 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 26: Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Year Ended December 31, December 31, 2023 2022 Net Income Attributable to DT Midstream $ 384 $ 370 Plus: Interest expense 150 137 Plus: Income tax expense 104 100 Plus: Depreciation and amortization
Slide 27: Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Non-GAAP Reconciliations Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Year Ended December 31, December 31, 2021 2020 Net Income Attributable to DT Midstream $ 307 $ 312 Plus: Interest expense 112 113 Plus: Income tax expense 104 116 Plus: Depreciation and amortization