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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 29, 2024
Commission File Number: 1-40392
DT Midstream, Inc.
Delaware |
38-2663964 |
(State or other jurisdiction of
incorporation or organization) |
(I.R.S Employer
Identification No.) |
Registrant's address of principal executive offices:
500 Woodward Ave., Suite 2900, Detroit, Michigan 48226-1279
Registrant’s telephone number, including
area code: (313) 402-8532
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
|
Trading Symbol(s) |
|
Name of Exchange on which Registered |
Common stock, par value $0.01 |
|
DTM |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under Exchange Act (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
DT Midstream, Inc. (“DT Midstream”) is furnishing
the Securities and Exchange Commission with its earnings release issued October 29, 2024, announcing financial results for the quarter
ended September 30, 2024. A copy of the earnings release, including supplemental financial information, is furnished as Exhibit 99.1
and incorporated by reference.
| Item 7.01. | Regulation FD Disclosure. |
DT Midstream is furnishing
the SEC with its slide presentation issued October 29, 2024. A copy of the slide presentation is furnished as Exhibit 99.2 and incorporated
herein by reference.
In
DT Midstream’s earnings release issued on October 29, 2024, DT Midstream also announced that its Board of Directors has declared
a quarterly cash dividend of $0.735 per share of common stock. The dividend is payable to DT Midstream’s stockholders of record
as of December 16, 2024, and is expected to be paid on January 15, 2025.
In accordance with General
Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed
"filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities
of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except
as shall be expressly set forth in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
Forward-Looking Statements:
This Current Report on Form 8-K contains forward-looking
statements that are subject to various assumptions, risks and uncertainties. It should be read in conjunction with the “Forward-Looking
Statements” section in DT Midstream’s Form 10-K (which section is incorporated by reference herein), and in conjunction with
other SEC reports filed by DT Midstream that discuss important factors that could cause DT Midstream’s actual results to differ
materially. DT Midstream expressly disclaims any current intention to update any forward-looking statements contained in this report as
a result of new information or future events or developments.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 29, 2024
DT MIDSTREAM, INC.
(Registrant) |
by |
|
/s/ Jeffrey Jewell |
|
Name: Jeffrey Jewell |
|
Title: Chief Financial Officer |
NEWS RELEASE
DT Midstream Reports Strong Third Quarter 2024 Results; Raises
Adjusted EBITDA Guidance
DETROIT, Oct. 29, 2024 – DT Midstream, Inc. (NYSE: DTM)
today announced third quarter 2024 reported net income of $88 million, or $0.90 per diluted share. For the third quarter of 2024, Operating
Earnings were also $88 million, or $0.90 per diluted share. Adjusted EBITDA for the quarter was $241 million.
Reconciliations of Operating Earnings and Adjusted EBITDA (non-GAAP
measures) to reported net income are included at the end of this news release.
The company also announced that the DT Midstream Board of Directors
declared a $0.735 per share dividend on its common stock payable January 15, 2025 to stockholders of record at the close of business December
16, 2024.
“We continue our strong performance in 2024,” said
David Slater, President and CEO. “And we have made great progress advancing new opportunities which will support our future growth.”
Slater noted the following significant business updates:
| • | Reached final investment decision on the Phase 4 expansion of the LEAP system,
which will expand the system to 2.1 Bcf/d by the first half of 2026 |
| • | Upsized the future interconnect between our Stonewall System and Mountain
Valley Pipeline |
| • | Upgraded to investment-grade by Fitch Ratings |
“Our year-to-date results are ahead of plan,” said
Jeff Jewell, Executive Vice President and CFO. “Our strong performance is leading us to increase our Adjusted EBITDA guidance for
2024 to $950 - $980 million.”
The company has scheduled a conference call to discuss results
for 9:00 a.m. ET (8:00 a.m. CT) today. Investors, the news media and the public may listen to a live internet broadcast of the call at
this link. The participant toll-free telephone dial-in number in the U.S. and Canada is 888.596.4144,
and the toll number is 646.968.2525; the passcode is 4749988. International access numbers are available here.
The webcast will be archived on the DT Midstream website at investor.dtmidstream.com.
# # #
About DT Midstream
DT Midstream (NYSE: DTM) is an owner, operator and developer of natural
gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities. The company transports
clean natural gas for utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern
and Midwestern United States and Canada. The Detroit-based company offers a comprehensive, wellhead-to-market array of services, including
natural gas transportation, storage and gathering. DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, including
a goal of achieving 30% of its carbon emissions reduction by 2030. For more information, please visit the DT Midstream website at www.dtmidstream.com.
Why DT Midstream Uses Operating Earnings, Adjusted EBITDA
and Distributable Cash Flow
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 meaningful representation of the company’s earnings from ongoing operations and uses Operating Earnings as the primary
performance measurement for external communications with analysts and investors. Internally, DT Midstream uses Operating Earnings to measure
performance against budget and to report to the Board of Directors.
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 to include the
proportional share of net income from equity method investees (excluding interest, taxes, depreciation and amortization), and to
exclude
certain items the company considers non-routine. DT Midstream believes Adjusted EBITDA is useful to the company and external users of
DT Midstream’s financial statements in understanding operating results and the ongoing performance of the underlying business because
it allows management and investors to have a better understanding of actual operating performance unaffected by the impact of interest,
taxes, depreciation, amortization and non-routine charges noted in the table below. We believe the presentation of Adjusted EBITDA is
meaningful to investors because it is frequently used by analysts, investors and other interested parties in the midstream industry to
evaluate a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary
substantially from company to company depending on accounting methods, book value of assets, capital structure and the method by which
assets were acquired, among other factors. DT Midstream uses Adjusted EBITDA to assess the company’s performance by reportable segment
and as a basis for strategic planning and forecasting.
Distributable Cash Flow (DCF) is calculated by deducting earnings from
equity method investees, depreciation and amortization attributable to noncontrolling interests, cash interest expense, maintenance capital
investment (as defined below), and cash taxes from, and adding interest expense, income tax expense, depreciation and amortization, certain
items we consider non-routine and dividends and distributions from equity method investees to, Net Income Attributable to DT Midstream.
Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual
obligations that do not generate incremental earnings. We believe DCF is a meaningful performance measurement because it is useful to
us and external users of our financial statements in estimating the ability of our assets to generate cash earnings after servicing our
debt, paying cash taxes and making maintenance capital investments, which could be used for discretionary purposes such as common stock
dividends, retirement of debt or expansion capital expenditures.
DT Midstream does not forecast net income as it cannot, without unreasonable
efforts, estimate or predict with certainty the components of net income. These components, net of tax, may include, but are not limited
to, impairments of assets and other charges,
divestiture costs, acquisition costs, or changes in accounting principles. All of these components
could significantly impact such financial measures. At this time, DT Midstream is not able to estimate the aggregate impact, if any, of
these items on future period reported earnings. Accordingly, DT Midstream is not able to provide a corresponding GAAP equivalent for Adjusted
EBITDA.
Forward-looking Statements
This release 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 plans for our future operating and financial performance,
business prospects, outcomes of regulatory proceedings, market conditions, and other matters, based on what we believe to be reasonable
assumptions and on information currently available to us.
Forward-looking statements can be identified by the use of words such
as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,”
“estimate,” “project,” “target,” “anticipate,” “will,” “should,”
“see,” “guidance,” “outlook,” “confident” and other words of similar meaning. The absence
of such words, expressions or statements, however, does not mean that the statements are not forward-looking. In particular, express or
implied statements relating to future earnings, cash flow, results of operations, uses of cash, tax rates and other measures of financial
performance, future actions, conditions or events, potential future plans, strategies or transactions of DT Midstream, and other statements
that are not historical facts, are forward-looking statements.
Forward-looking statements are not guarantees of future results and
conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially
different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of DT Midstream
including, but not limited to, the following: changes in general economic conditions, including increases in interest rates and associated
Federal Reserve
policies, a potential economic recession, and the impact of inflation
on our business; industry changes, including the impact of consolidations, alternative energy sources, technological advances, infrastructure
constraints and changes in competition; global supply chain disruptions; actions taken by third-party operators, processors, transporters
and gatherers; changes in expected production from Expand Energy and other third parties in our areas of operation; demand for natural
gas gathering, transmission, storage, transportation and water services; the availability and price of natural gas to the consumer compared
to the price of alternative and competing fuels; our ability to successfully and timely implement our business plan; our ability to complete
organic growth projects on time and on budget; our ability to finance, complete, or successfully integrate acquisitions; the price and
availability of debt and equity financing; restrictions in our existing and any future credit facilities and indentures; the effectiveness
of our information technology and operational technology systems and practices to detect and defend against evolving cyber attacks on
United States critical infrastructure; changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event;
operating hazards, environmental risks, and other risks incidental to gathering, storing and transporting natural gas; geologic and reservoir
risks and considerations; natural disasters, adverse weather conditions, casualty losses and other matters beyond our control; the impact
of outbreaks of illnesses, epidemics and pandemics, and any related economic effects; the impacts of geopolitical events, including the
conflicts in Ukraine and the Middle East; labor relations and markets, including the ability to attract, hire and retain key employee
and contract personnel; large customer defaults; changes in tax status, as well as changes in tax rates and regulations; the effects
and associated cost of compliance with existing and future laws and governmental regulations, such as the Inflation Reduction Act; changes
in environmental laws, regulations or enforcement policies, including laws and regulations relating to climate change and greenhouse
gas emissions; ability to develop low carbon business opportunities and deploy greenhouse gas reducing technologies; changes in insurance
markets impacting costs and the level and types of coverage available; the timing and extent of changes in commodity prices; the success
of our risk management strategies; the suspension, reduction or termination of our customers’ obligations under our commercial
agreements; disruptions due to equipment interruption or failure at our facilities, or third-party facilities on which our business is
dependent; the effects of future litigation; and the risks described in our Annual Report on Form 10-K for the year ended December 31,
2023 and our reports and registration statements filed from time to time with the SEC.
The above list of factors is not exhaustive. New factors emerge from
time to time. We cannot predict what factors may arise or how such factors may cause actual results to vary materially from those stated
in forward-looking statements, see the discussion under the section entitled “Risk Factors” in our Annual Report for the year
ended December 31, 2023, filed with the SEC on Form 10-K and any other reports filed with the SEC. Given the uncertainties and risk factors
that could cause our actual results to differ materially from those contained in any forward-looking statement, you should not put undue
reliance on any forward-looking statements.
Any forward-looking statements speak only as of the date on which such
statements are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements,
whether as a result of new information, subsequent events or otherwise.
Investor Relations
Todd Lohrmann, DT Midstream, 313.774.2424
investor_relations@dtmidstream.com
DT Midstream, Inc. Reconciliation of Reported to Operating Earnings (non-GAAP, unaudited) |
| |
Three Months Ended |
| |
September 30, 2024 | |
June 30, 2024 |
| |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings | |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings |
| |
(millions) |
Adjustments | |
| |
$ |
— |
| |
$ |
— |
| |
| |
| |
$ |
— |
| |
$ |
— |
| |
|
Net Income Attributable to DT Midstream | |
$ | 88 | | |
$ | — | | |
$ | — | | |
$ | 88 | | |
$ | 96 | | |
$ | — | | |
$ | — | | |
$ | 96 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
Nine Months Ended |
| |
September 30, 2024 | |
September 30, 2023 |
| |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings | |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings |
| |
(millions) |
Adjustments | |
| | | |
$ | — | | |
$ | — | | |
| | | |
| | | |
$ | — | | |
$ | — | | |
| | |
Net Income Attributable to DT Midstream | |
$ | 281 | | |
$ | — | | |
$ | — | | |
$ | 281 | | |
$ | 263 | | |
$ | — | | |
$ | — | | |
$ | 263 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
(1) |
Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments |
|
DT Midstream, Inc. Reconciliation of Reported to Operating Earnings per diluted share(2) (non-GAAP, unaudited) |
| |
|
| |
Three Months Ended |
| |
September 30, 2024 | |
June 30, 2024 |
| |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings | |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings |
| |
(per share) |
Adjustments | |
| |
$ |
— |
| |
$ |
— |
| |
| |
| |
$ |
— |
| |
$ |
— |
|
|
Net Income Attributable to DT Midstream | |
$ | 0.90 | | |
$ | — | | |
$ | — | | |
$ | 0.90 | | |
$ | 0.98 | | |
$ | — | | |
$ | — | | |
$ | 0.98 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
Nine Months Ended |
| |
September 30, 2024 | |
September 30, 2023 |
| |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings | |
Reported Earnings | |
Pre-tax Adjustments | |
Income Taxes(1) | |
Operating Earnings |
| |
(per share) |
Adjustments | |
| | | |
$ | — | | |
$ | — | | |
| | | |
| | | |
$ | — | | |
$ | — | | |
| | |
Net Income Attributable to DT Midstream | |
$ | 2.87 | | |
$ | — | | |
$ | — | | |
$ | 2.87 | | |
$ | 2.70 | | |
$ | — | | |
$ | — | | |
$ | 2.70 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
(1) |
Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments |
|
(2) |
Per share amounts are divided by Weighted Average Common Shares Outstanding — Diluted, as noted on the Consolidated Statements of Operations |
|
DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA (non-GAAP, unaudited) |
| |
| |
|
| |
Three Months Ended | |
Nine Months Ended |
| |
September 30, 2024 | |
June 30, 2024 | |
September 30, 2024 | |
September 30, 2023 |
Consolidated | |
(millions) |
Net Income Attributable to DT Midstream | |
$ | 88 | | |
$ | 96 | | |
$ | 281 | | |
$ | 263 | |
Plus: Interest expense | |
| 38 | | |
| 39 | | |
| 117 | | |
| 111 | |
Plus: Income tax expense | |
| 30 | | |
| 33 | | |
| 94 | | |
| 102 | |
Plus: Depreciation and amortization | |
| 53 | | |
| 53 | | |
| 156 | | |
| 133 | |
Plus: Loss from financing activities | |
| 4 | | |
| — | | |
| 4 | | |
| — | |
Plus: EBITDA from equity method investees (1) | |
| 70 | | |
| 67 | | |
| 212 | | |
| 212 | |
Less: Interest income | |
| (1 | ) | |
| — | | |
| (2 | ) | |
| (1 | ) |
Less: Earnings from equity method investees | |
| (40 | ) | |
| (39 | ) | |
| (125 | ) | |
| (132 | ) |
Less: Depreciation and amortization attributable to noncontrolling interests | |
| (1 | ) | |
| (1 | ) | |
| (3 | ) | |
| (3 | ) |
Adjusted EBITDA | |
$ | 241 | | |
$ | 248 | | |
$ | 734 | | |
$ | 685 | |
| |
| | | |
| | | |
| | | |
| | |
|
(1) |
Includes share of our equity method investees’ earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows: |
|
| |
Three Months Ended | |
Nine Months Ended |
| |
September 30, 2024 | |
June 30, 2024 | |
September 30, 2024 | |
September 30, 2023 |
| |
(millions) |
Earnings from equity methods investees | |
$ | 40 | | |
$ | 39 | | |
$ | 125 | | |
$ | 132 | |
Plus: Depreciation and amortization attributable to equity method investees | |
| 20 | | |
| 21 | | |
| 61 | | |
| 61 | |
Plus: Interest expense attributable to equity method investees | |
| 10 | | |
| 7 | | |
| 26 | | |
| 19 | |
EBITDA from equity method investees | |
$ | 70 | | |
$ | 67 | | |
$ | 212 | | |
$ | 212 | |
DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment (non-GAAP, unaudited) |
| |
| |
| |
| |
|
| |
Three Months Ended | |
Nine Months Ended |
| |
September 30, 2024 | |
June 30, 2024 | |
September 30, 2024 | |
September 30, 2023 |
Pipeline | |
(millions) |
Net Income Attributable to DT Midstream | |
$ | 71 | | |
$ | 71 | | |
$ | 216 | | |
$ | 185 | |
Plus: Interest expense | |
| 12 | | |
| 12 | | |
| 37 | | |
| 42 | |
Plus: Income tax expense | |
| 24 | | |
| 24 | | |
| 72 | | |
| 72 | |
Plus: Depreciation and amortization | |
| 18 | | |
| 19 | | |
| 55 | | |
| 50 | |
Plus: Loss from financing activities | |
| 2 | | |
| — | | |
| 2 | | |
| — | |
Plus: EBITDA from equity method investees (1) | |
| 70 | | |
| 67 | | |
| 212 | | |
| 212 | |
Less: Interest income | |
| — | | |
| — | | |
| (1 | ) | |
| (1 | ) |
Less: Earnings from equity method investees | |
| (40 | ) | |
| (39 | ) | |
| (125 | ) | |
| (132 | ) |
Less: Depreciation and amortization attributable to noncontrolling interests | |
| (1 | ) | |
| (1 | ) | |
| (3 | ) | |
| (3 | ) |
Adjusted EBITDA | |
$ | 156 | | |
$ | 153 | | |
$ | 465 | | |
$ | 425 | |
| |
| | | |
| | | |
| | | |
| | |
|
(1) |
Includes share of our equity method investees’ earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows: |
|
|
|
| |
Three Months Ended | |
Nine Months Ended |
| |
September 30, 2024 | |
June 30, 2024 | |
September 30, 2024 | |
September 30, 2023 |
| |
(millions) |
Earnings from equity methods investees | |
$ | 40 | | |
$ | 39 | | |
$ | 125 | | |
$ | 132 | |
Plus: Depreciation and amortization attributable to equity method investees | |
| 20 | | |
| 21 | | |
| 61 | | |
| 61 | |
Plus: Interest expense attributable to equity method investees | |
| 10 | | |
$ | 7 | | |
| 26 | | |
| 19 | |
EBITDA from equity method investees | |
$ | 70 | | |
$ | 67 | | |
$ | 212 | | |
$ | 212 | |
DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment (non-GAAP, unaudited) |
| |
| |
| |
| |
|
| |
Three Months Ended | |
Nine Months Ended |
| |
September 30, 2024 | |
June 30, 2024 | |
September 30, 2024 | |
September 30, 2023 |
Gathering | |
(millions) |
Net Income Attributable to DT Midstream | |
$ | 17 | | |
$ | 25 | | |
$ | 65 | | |
$ | 78 | |
Plus: Interest expense | |
| 26 | | |
| 27 | | |
| 80 | | |
| 69 | |
Plus: Income tax expense | |
| 6 | | |
| 9 | | |
| 22 | | |
| 30 | |
Plus: Depreciation and amortization | |
| 35 | | |
| 34 | | |
| 101 | | |
| 83 | |
Plus: Loss from financing activities | |
| 2 | | |
| — | | |
| 2 | | |
| — | |
Less: Interest income | |
| (1 | ) | |
| — | | |
| (1 | ) | |
| — | |
Adjusted EBITDA | |
$ | 85 | | |
$ | 95 | | |
$ | 269 | | |
$ | 260 | |
DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow (non-GAAP, unaudited) |
| |
| |
| |
| |
|
| |
Three Months Ended | |
Nine Months Ended |
| |
September 30, 2024 | |
June 30, 2024 | |
September 30, 2024 | |
September 30, 2023 |
Consolidated | |
(millions) |
Net Income Attributable to DT Midstream | |
$ | 88 | | |
$ | 96 | | |
$ | 281 | | |
$ | 263 | |
Plus: Interest expense | |
| 38 | | |
| 39 | | |
| 117 | | |
| 111 | |
Plus: Income tax expense | |
| 30 | | |
| 33 | | |
| 94 | | |
| 102 | |
Plus: Depreciation and amortization | |
| 53 | | |
| 53 | | |
| 156 | | |
| 133 | |
Plus: Loss from financing activities | |
| 4 | | |
| — | | |
| 4 | | |
| — | |
Plus: Adjustments for non-routine items(1) | |
| (416 | ) | |
| — | | |
| (416 | ) | |
| (371 | ) |
Less: Earnings from equity method investees | |
| (40 | ) | |
| (39 | ) | |
| (125 | ) | |
| (132 | ) |
Less: Depreciation and amortization attributable to noncontrolling interests | |
| (1 | ) | |
| (1 | ) | |
| (3 | ) | |
| (3 | ) |
Plus: Dividends and distributions from equity method investees | |
| 465 | | |
| 50 | | |
| 590 | | |
| 557 | |
Less: Cash interest expense | |
| (6 | ) | |
| (64 | ) | |
| (80 | ) | |
| (76 | ) |
Less: Cash taxes | |
| (4 | ) | |
| (1 | ) | |
| (7 | ) | |
| (21 | ) |
Less: Maintenance capital investment(2) | |
| (4 | ) | |
| (6 | ) | |
| (17 | ) | |
| (22 | ) |
Distributable Cash Flow | |
$ | 207 | | |
$ | 160 | | |
$ | 594 | | |
$ | 541 | |
| |
| | | |
| | | |
| | | |
| | |
|
(1) |
Distributable Cash Flow calculation excludes certain items we consider non-routine. For the three and nine months ended September 30, 2024, adjustments for non-routine items included the $416 million Millennium financing distribution. For the nine months ended September 30, 2023, adjustments for non-routine items included the $371 million NEXUS financing distribution. |
|
(2) |
Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual obligations that do not generate incremental earnings. |
|
# # #
Third Quarter 2024
Earnings Call
October 29, 2024
Ammons compressor station - Appalachia Gathering System phase 2 expansion
DT Midstream
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 plans for our future operating and financial performance, business prospects, outcomes of regulatory proceedings, market conditions, and other matters, based on what we believe to be reasonable assumptions and on information currently available to us.
Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident" and other words of similar meaning. The absence of such words, expressions or statements, however, does not mean that the statements are not forward-looking. In particular, express or implied statements relating to future earnings, cash flow, results of operations, uses of cash, tax rates and other measures of financial performance, future actions, conditions or events, potential future plans, strategies or transactions of DT Midstream, and other statements that are not historical facts, are forward-looking statements.
Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of DT Midstream including, but not limited to, the following: changes in general economic conditions, including increases in interest rates and associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; industry changes, including the impact of consolidations, alternative energy sources, technological advances, infrastructure constraints and changes in competition; global supply chain disruptions; actions taken by third-party operators, processors, transporters and gatherers; changes in expected production from Expand Energy and other third parties in our areas of operation; demand for natural gas gathering, transmission, storage, transportation and water services; the availability and price of natural gas to the consumer compared to the price of alternative and competing fuels; our ability to successfully and timely implement our business plan; our ability to complete organic growth projects on time and on budget; our ability to finance, complete, or successfully integrate acquisitions; the price and availability of debt and equity financing; restrictions in our existing and any future credit facilities and indentures; the effectiveness of our information technology and operational technology systems and practices to detect and defend against evolving cyber attacks on United States critical infrastructure; changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event; operating hazards, environmental risks, and other risks incidental to gathering, storing and transporting natural gas; geologic and reservoir risks and considerations; natural disasters, adverse weather conditions, casualty losses and other matters beyond our control; the impact of outbreaks of illnesses, epidemics and pandemics, and any related economic effects; the impacts of geopolitical events, including the conflicts in Ukraine and the Middle East; labor relations and markets, including the ability to attract, hire and retain key employee and contract personnel; large customer defaults; changes in tax status, as well as changes in tax rates and regulations; the effects and associated cost of compliance with existing and future laws and governmental regulations, such as the Inflation Reduction Act; changes in environmental laws, regulations or enforcement policies, including laws and regulations relating to climate change and greenhouse gas emissions; ability to develop low carbon business opportunities and deploy greenhouse gas reducing technologies; changes in insurance markets impacting costs and the level and types of coverage available; the timing and extent of changes in commodity prices; the success of our risk management strategies; the suspension, reduction or termination of our customers' obligations under our commercial agreements; disruptions due to equipment interruption or failure at our facilities, or third-party facilities on which our business is dependent; the effects of future litigation; and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2023 and our reports and registration statements filed from time to time with the SEC.
The above list of factors is not exhaustive. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under the section entitled "Risk Factors" in our Annual Report for the year ended December 31, 2023, filed with the SEC on Form 10-K and any other reports filed with the SEC. Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, you should not put undue reliance on any forward-looking statements.
Any forward-looking statements speak only as of the date on which such statements are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.
DT Midstream
2
Third Quarter 2024 Accomplishments
Strong financial performance
Third quarter 2024 net income of $88 million and Adjusted EBITDA1 of $241 million
Raising 2024 Adjusted EBITDA guidance range to $950 - $980 million
Confident in 2025 Adjusted EBITDA early outlook of $980 - $1,040 million
Upgraded to investment grade by Fitch Ratings
Successful commercial development activity
Reached FID on Phase 4 LEAP expansion of 200 MMcf/d, which will increase total system capacity to 2.1 Bcf/d
Upsized interconnect between our Stonewall System and Mountain Valley Pipeline
Advancing discussions on data center-related opportunities
Continuing to advance energy transition platform
Initial construction underway for clean fuels gathering project
Detailed engineering continues for Louisiana CCS project; awaiting Class VI well permit requirements from the State of Louisiana
DT Midstream
1. Definition and reconciliation of Adjusted EBITDA (non-GAAP) to net income included in the appendix
3
DTM Provides a Distinctive Investment Opportunity
Premium, high-quality attributes compared to other gas-focused peers
Leading Organic Growth
5-7% long-term growth rate
self-funded and fully supported by ~$1.3B organic project backlog
Leading Portfolio Mix
100% natural gas focus
with no marketing or commodity exposure
Premier Geographic Presence
Projects in top tier markets and basins
positioned to capitalize on LNG and power demand growth
Durable Contracting
~90% demand-based contracts1
providing resilient cash flow with ~9-year average2 contract tenor
Strong Credit Profile
Investment grade rated by Fitch
with ~85% investment grade customers
EBITDA CAGR
2021-2023
9%
DTM
3%
Gas-Focused Peers3
Dividend CAGR
2021-2023
7%
DTM
3%
Gas-Focused Peers3
Highest Pipeline Contribution in Section4
Adjusted EBITDA5
Pipeline
65%
Gathering
35%
DT Midstream
1. Represents % of 2023 revenue contribution comprised of demand, MVC or flowing gas/proved developed producing reserves
2. Overall portfolio weighted average contract tenor as of 12/31/2023
3. Average of gas-focused peers include WMB, KMI, AM
4. Based on Q4 2023 adjusted EBITDA; US-based midstream peers (AM, ENLC, ETRN, EPD, KMI, MPLX, OKE, TRGP, WES, WMB)
5. Definition and reconciliation of adjusted EBITDA (non-GAAP) to net income included in this appendix
4
Third Quarter 2024 Financial Results
Adjusted EBITDA1
(millions) xx segment % of total
$248
$153
$95
Q2 2024
62%
38%
$241
$156
$85
Q3 2024
65%
35%
Pipeline
Gathering
Pipeline2
Full-quarter impact of LEAP Phase 3 expansion in Q3
Gathering
Results in-line when adjusting for favorable one-time items of ~$10 million in Q2 not repeating in Q3
DT Midstream
1. Definition and reconciliation of Adjusted EBITDA (non-GAAP) to net income included in the appendix
2. The terminology and asset categorization used here are for accounting purposes only and do not reflect on the jurisdictional status of any particular asset
5
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
Capital efficient, lower-risk expansion provides timely access to coming LNG demand
Project will provide ~0.2 Bcf/d incremental LEAP capacity, increasing capacity from 1.9 Bcf/d to 2.1 Bcf/d
Project entails incremental compression and looping
Expansion is underpinned by new long-term, demand-based contracts with two new LEAP customers
Project expected to be in-service 1H 2026
Continuing discussions for additional expansions
LEAP can be further expanded to serve growing Gulf Coast LNG and industrial corridor demand
Haynesville System offers leading wellhead-to-water connectivity
Texas
Gillis Hub
LNG Corridor
Lake Charles LNG
Driftwood LNG
Cameron LNG
CP2
Calcasieu Pass
Sabine Pass LNG
Port Arthur
Golden Pass LNG
Delfin LNG
Henry Hub
Plaquemines
DTM assets
DTM treating plants
Electric compression
Acreage dedication
LNG facilities
Operational
Under development
LEAP Phase 4 Expansion +200 MMcf/d
LEAP capacity (Bcf/d)
In-service
Original
1.0
Phase 1 expansion
0.3
Aug. 2023
Phase 2 expansion
0.4
Jan. 2024
Phase 3 expansion
0.2
Jun. 2024
Phase 4 expansion
0.2
1H 2026
Total
2.1
Expansion potential
~4
DT Midstream
BP(2) and Sabine
WA tenor of 8.2 yrs
6
Upsizing Strategic Appalachian Basin Interconnect
Expansion increases interconnect capacity and access to growing Mid-Atlantic market
NEXUS Pipeline
Access to Midwest Markets
Ohio
West Virginia
Mountain Vallely Pipeline
MVP Interconnect
Third-party processing plant
Third-party pipeline
Pennsylvania
West Virginia
Appalachia Gathering System
Stonewall Gas Gathering
Access to Mid-Atlantic Markets
New agreement expanding Mountain Valley Pipeline (MVP) interconnect
Increases outlet capacity on Stonewall by 100 MMcf/d
Expected to be in-service 1H 2026
Strong commercial structure with new customer
Anchored by a long-term contract with a large privately held producer
Demand-based contract protects project economics
DT Midstream
7
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
Long-term debt
No maturities for 5 years
$1.0
$1.1
$1.0
$0.6
2024
2025
2026
2027
2028
2029
2030
2031
2032
Investment grade
Fitch BBB- long-term issuer default rating
Positive outlook
Moody's rating
2.8x / 3.7x
on-balance sheet2 / proportional leverage
1.3x reduction
in on-balance sheet leverage since 2021
DT Midstream
1. As of 9/30/2024
2. Represents on-balance sheet net debt/TTM EBITDA as of 9/30/2024
1.3x reduction based on 4.1x net leverage ratio at Sept. 30, 2021
8
Guidance Updates Reflect Strong Year-to-Date Performance
Increasing 2024 Adjusted EBITDA, Operating Earnings, Operating EPS and Distributable Cash Flow guidance
2024
2025
(millions, except EPS)
Adjusted EBITDA1
Operating Earnings2
Operating EPS2
Distributable Cash Flow3
Capital Expenditures
Growth Capital4
Maintenance Capital
Adjusted EBITDA (early outlook)
Prior Guidance
$930 - $980
$335 - $375
$3.43 - $3.83
$640 - $700
$360 - $415
$330 - $375
$30 - $40
$980 - $1,040
Updated Guidance
$950 - $980
$345 - $375
$3.53 - $3.83
$670 - $700
$360 - $390
$330 - $350
$30 - $40
$980 - $1,040
Strong performance in first three quarters; incremental maintenance expected in Q4
Lower interest and income tax expenses
EBITDA performance and lower interest and cash taxes
Optimizing timing of cash flow for capital projects
DT Midstream
1. Definition and reconciliation of Adjusted EBITDA (non-GAAP) to net income included in the appendix
2. Definition and reconciliation of Operating Earnings and Operating Earnings per Share (non-GAAP) to reported earnings included in the appendix; EPS calculation based on average share count of approximately 98 million shares outstanding - diluted
3. Definition and reconciliation of Distributable Cash Flow (non-GAAP) to net income included in the appendix
4. Includes contribution to equity method investees; guidance range is net of a ~$20 million customer contribution
9
Growth Investment Projects
Continue to advance and deliver on short-cycle growth investments
Pipeline
Gathering
Project
Haynesville LEAP expansion - Phase 4
Stonewall to Mountain Valley Pipeline (MVP) expansion (Upsized)
Appalachia Tioga Gathering expansion
Appalachia Gathering System expansion - Phase 3
Haynesville Blue Union well pad expansion
Haynesville Blue Union new producer expansions
Clean Fuels Gathering
Expected in-service dates
1H 2026
1H 2026
Q2 2025
Q2 2025 - 1H 2026
Q2 2025
Q2 2025
2H 2025
In-flight project updates
Reached FID on LEAP Phase 4 expansion
Executed agreement to increase capacity of Stonewall to MVP interconnect
Clean fuels gathering buildout underway
All growth investments on track and on budget
DT Midstream
10
Disciplined Capital Investment
Strong organic origination is solidifying our 2025 capital plan and is underpinning future growth
Growth capex
(millions)
Cash flow after dividends
~$330 Committed
Committed
$330 - $350
2024 guidance1
New Commitments
~$310 Committed
Pre-FID / Highly Probable
2025
Committed capital increase driven by new projects reaching FID:
LEAP Phase 4 expansion
Stonewall-MVP upsize
Clean fuels gathering buildout
Flexible, short-cycle, capital investments
Capital investment program funded within free cash flow
No change to 2024 committed capital
Reducing top end of 2024 capital guidance range
Increasing committed capital in 2025 to reflect new organic projects reaching FID
DT Midstream
1. Guidance range is net of a ~$20 million customer contribution
11
Louisiana Carbon Capture and Sequestration
Continuing pre-FID engineering - awaiting regulatory guidance from the State of Louisiana
Project timeline
Capital deployment
Q4 2022
Q2 2023
1H 2024
Q4 2024
1H 2025
2H 2026
Minimizing capital spend until we reach a final investment decision
Class VI well permit filing
Conducted 3D seismic survey
Class V test well permit filing
Class V test well permit approved
Drilled Class V test well
Evaluated Class V test well results
LA DENR Class VI permit requirements Current stage
Final investment decision
Expected Class VI well permit approval
Expected Phase 1 project in-service
Methodical project development approach
Disciplined storage site selection and stakeholder engagement
Proximity to CO2 source and favorable sequestration geology
Early engagement of local community and Louisiana (LA) DENR1 on key development activities
Continued progress toward FID with successful Class V test well
Validated formation structure and completed injectivity tests
Secured key storage rights
Third party expert analysis of Class V test well completed; confirming formation suitability
Continuing detailed engineering design of system
Awaiting Class VI well permit requirements from LA DENR
Leveraging over 50 years of storage and pipeline development and operations experience
DT Midstream
1. Louisiana Department of Energy and Natural Resources
12
Quarterly Financial Results
(millions, except EPS)
Adjusted EBITDA1
Pipeline segment
Gathering segment
Operating Earnings2
Operating EPS2
Distributable Cash Flow3
Growth Capital4
Maintenance Capital
Three months ended
September 30, 2024
$241
$156
$85
$88
$0.90
$207
$80
$4
June 30, 2024
$248
$153
$95
$96
$0.98
$160
$745
$6
Key drivers
Favorable one-time items in Q2 not repeating in Q3
Cash interest payment in Q2
DT Midstream
1. Definition and reconciliation of Adjusted EBITDA (non-GAAP) to net income included in the appendix
2. Definition and reconciliation of Operating Earnings and Operating Earnings per Share (non-GAAP) to reported earnings included in the appendix; EPS calculation based on average share count of approximately 98 million shares outstanding - diluted
3. Definition and reconciliation of Distributable Cash Flow (non-GAAP) included in the appendix
4. Includes contribution to equity method investees
5. Growth capital reflects DT Midstream capital spend of $75 million less cash contribution from customers of ~$1 million in Q2 2024
13
DT Midstream Investment Thesis
DT Midstream
Pure play natural gas midstream portfolio
Premium shareholder returns
Strong organic growth
Balance sheet strength
DT Midstream
14
Appendix
DT Midstream
15
Gathering Volume Summary
Resilient volume performance throughout 2024
Haynesville throughput
(bcf/d)
Blue Union Gathering
1.60
Q3 2023
1.56
Q4 2023
1.52
Q1 2024
1.50
Q2 2024
1.51
Q3 2024
Northeast throughput
(bcf/d)
1.39
Q3 2023
Susquehanna Gathering
1.53
Q4 2023
Appalachia Gathering
1.54
Q1 2024
Tioga Gathering
1.43
Q2 2024
Ohio Utica Gathering
1.37
Q3 2024
DT Midstream
16
Continuing Our Track Record of Distinctive Growth
Targeting long-term Adjusted EBITDA growth of 5-7%
Adjusted EBITDA1
(millions)
$930 - $980
2024 original guidance
+6%
$980 - $1,040
2025 early outlook
5-7% long-term growth rate
Differentiated growth drivers
$1.3 billion organic growth project backlog
Tangible energy transition projects
Fully funded with long-term, contract-backed free cash flows
No marketing or commodity exposure
DT Midstream
1. Definition and reconciliation of Adjusted EBITDA (non-GAAP) to net income included in this appendix
17
Strong Long-term Production Outlook in Both Basin
Haynesville and Appalachia production are expected to experience significant growth over the next decade
Historical production
(bcf/d)
Haynesville
Appalachia
DUC inventory1
Haynesville
Appalachia
412
630
662
840
764
810
803
752
Production forecast
(bcf/d)
49
15
34
2023
Haynesville
+18 bcf/d
Appalachia
67
27
40
2023
DT Midstream
1. Drilled but uncompleted (DUC) wells data reflects EIA publication released October 8, 2024
Sources: EIA, S+P Global Commodity Insights, and Wood Mackenzie North America Gas Investment Horizon Outlook - October 2023
18
Joint Venture Debt Details
Annual debt paydown at Millennium and Vector
Asset (DTM ownership %)
NEXUS Pipeline (50%)
Millennium Pipeline (52.5%)
Total Millennium
Vector Pipeline(40%)
Prior Year
2024 Issuance
DTM proportionate share
End of year debt balances
2023
$371
$144
-
$144
$31
2024
$371
$129
$420
$549
$29
2025
$371
$114
$420
$534
$26
Interest expense
2023
$14
$13
-
$13
$2
2024
$21
$11
$7
$18
$2
2025
$21
$9
$25
$34
$2
Weighted average interest rate
5.68%1
5.80%1
5.88%2
6.11%1
Maturity
Bullets, 2028 through 2035
Fully amortized by 2032
Bullets, 2029 through 2036
Fully amortized by 2034
DT Midstream
1. Weighted average interest rate as of December 31, 2023
2. Weighted average interest rate as of September 30, 2024
19
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 to include our proportional share of net income from our equity method investees (excluding interest, taxes, depreciation and amortization), and to exclude certain items we consider non-routine. We believe Adjusted EBITDA is useful to us and external users of our financial statements in understanding our operating results and the ongoing performance of our underlying business because it allows our management and investors to have a better understanding of our actual operating performance unaffected by the impact of interest, taxes, depreciation, amortization and non-routine charges noted in the table below. We believe the presentation of Adjusted EBITDA is meaningful to investors because it is frequently used by analysts, investors and other interested parties in our industry to evaluate a company's operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending on accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors. We use Adjusted EBITDA to assess our performance by reportable segment and as a basis for strategic planning and forecasting.
Distributable Cash Flow (DCF) is calculated by deducting earnings from equity method investees, depreciation and amortization attributable to noncontrolling interests, cash interest expense, maintenance capital investment (as defined below), and cash taxes from, and adding interest expense, income tax expense, depreciation and amortization, certain items we consider non-routine and dividends and distributions from equity method investees to, Net Income Attributable to DT Midstream. Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual obligations that do not generate incremental earnings. We believe DCF is a meaningful performance measurement because it is useful to us and external users of our financial statements in estimating the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and making maintenance capital investments, which could be used for discretionary purposes such as common stock dividends, retirement of debt or expansion capital expenditures.
Adjusted EBITDA and DCF are not measures calculated in accordance with GAAP and should be viewed as a supplement to and not a substitute for the results of operations presented in accordance with GAAP. There are significant limitations to using Adjusted EBITDA and DCF as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect our net income or loss. Additionally, because Adjusted EBITDA and DCF exclude some, but not all, items that affect net income and are defined differently by different companies in our industry, Adjusted EBITDA and DCF do not intend to represent net income attributable to DT Midstream, the most comparable GAAP measure, as an indicator of operating performance and are not necessarily comparable to similarly titled measures reported by other companies.
Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA or DCF as projected for full-year 2024 or 2025 is not provided. We do not forecast net income as we cannot, without unreasonable efforts, estimate or predict with certainty the components of net income. These components, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these components could significantly impact such financial measures. At this time, management is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, we are not able to provide a corresponding GAAP equivalent for Adjusted EBITDA or DCF.
DT Midstream
20
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 Operating Earnings provide a more meaningful representation of the company's earnings from ongoing operations and uses Operating Earnings as the primary performance measurement for external communications with analysts and investors. Internally, DT Midstream uses Operating Earnings to measure performance against budget and to report to the Board of Directors.
In this presentation, DT Midstream provides guidance for future period Operating Earnings. It is likely that certain items that impact the company's future period reported results will be excluded from operating results. A reconciliation to the comparable future period reported earnings is not provided because it is not possible to provide a reliable forecast of specific line items (i.e., future non-recurring items, certain mark-to-market adjustments and discontinued operations). These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.
DT Midstream
21
Non-GAAP Reconciliations
Reconciliation of Reported to Operating Earnings - DT Midstream Consolidated
Adjustments
Net Income Attributable to DT Midstream
Adjustments
Net Income Attributable to DT Midstream
Three Months Ended
(millions)
September 30,
2024
Reported Earnings
$88
Pre-tax Adjustments
$-
Income Taxes (1)
$-
Operating Earnings
$88
June 30,
2024
Reported Earnings
$96
Pre-tax Adjustments
$-
Income Taxes (1)
$-
Operating Earnings
$96
Nine Months Ended
September 30,
2024
(millions)
Reported Earnings
$281
Pre-tax Adjustments
$-
Income Taxes (1)
$-
Operating Earnings
$281
September 30,
2023
Reported Earnings
$263
Pre-tax Adjustments
$-
Income Taxes (1)
$-
Operating Earnings
$263
Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments
DT Midstream
22
Non-GAAP Reconciliations
Reconciliation of Reported to Operating Earnings per diluted share(2) - DT Midstream Consolidated
Three Months Ended
September 30, 2024
June 30, 2024
Reported Earnings
Pre-tax Adjustments
Income Taxes(1)
Operating Earnings
Reported Earnings
Pre-tax Adjustments
Income Taxes(1)
Operating Earnings
(per share)
Adjustments
$-
$-
$-
$-
Net Income Attributable to DT Midstream
$0.90
$-
$-
$0.90
$0.98
$-
$-
$0.98
Nine Months Ended
September 30, 2024
September 30, 2023
Reported Earnings
Pre-tax Adjustments
Income Taxes(1)
Operating Earnings
Reported Earnings
Pre-tax Adjustments
Income Taxes(1)
Operating Earnings
(per share)
Adjustments
$-
$-
$-
$-
Net Income Attributable to DT Midstream
$2.87
$-
$-
$2.87
$2.70
$-
$-
$2.70
(1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments
(2) Per share amounts are divided by Weighted Average Common Shares Outstanding - Diluted, as noted on the Consolidated Statements of Operations
DT Midstream
23
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Three Months Ended
Nine Months Ended
September 30, 2024
June 30, 2024
September 30, 2024
September 30, 2023
Consolidated
(millions)
Net Income Attributable to DT Midstream
$88
$96
$281
$263
Plus: Interest expense
38
39
117
111
Plus: Income tax expense
30
33
94
102
Plus: Depreciation and amortization
53
53
156
133
Plus: Loss from financing activities
4
-
4
-
Plus: EBITDA from equity method investees (1)
70
67
212
212
Less: Interest income
(1)
-
(2)
(1)
Less: Earnings from equity method investees
(40)
(39)
(125)
(132)
Less: Depreciation and amortization attributable to noncontrolling interests
(1)
(1)
(3)
(3)
Adjusted EBITDA
$241
$248
$734
$685
(1) Includes share of our equity method investees' earnings before interest, taxes, depreciation and amortization, which we refer to as "EBITDA." A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows:
Three Months Ended
Nine Months Ended
September 30, 2024
June 30, 2024
September 30, 2024
September 30, 2023
(millions)
Earnings from equity methods investees
$40
$39
$125
$132
Plus: Depreciation and amortization attributable to equity method investees
20
21
61
61
Plus: Interest expense attributable to equity method investees
10
7
26
19
EBITDA from equity method investees
$70
$67
$212
$212
DT Midstream
24
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment
Three Months Ended
Nine Months Ended
September 30, 2024
June 30, 2024
September 30, 2024
September 30, 2023
Pipeline
(millions)
Net Income Attributable to DT Midstream
$71
$71
$216
$185
Plus: Interest expense
12
12
37
42
Plus: Income tax expense
24
24
72
72
Plus: Depreciation and amortization
18
19
55
50
Plus: Loss from financing activities
2
-
2
-
Plus: EBITDA from equity method investees (1)
70
67
212
212
Less: Interest income
-
-
(1)
(1)
Less: Earnings from equity method investees
(40)
(39)
(125)
(132)
Less: Depreciation and amortization attributable to noncontrolling interests
(1)
(1)
(3)
(3)
Adjusted EBITDA
$156
$153
$465
$425
(1) Includes share of our equity method investees' earnings before interest, taxes, depreciation and amortization, which we refer to as "EBITDA." A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows:
Three Months Ended
Nine Months Ended
September 30, 2024
June 30, 2024
September 30, 2024
September 30, 2023
(millions)
Earnings from equity methods investees
$40
$39
$125
$132
Plus: Depreciation and amortization attributable to equity method investees
20
21
61
61
Plus: Interest expense attributable to equity method investees
10
7
26
19
EBITDA from equity method investees
$70
$67
$212
$212
DT Midstream
25
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment
Three Months Ended
Nine Months Ended
September 30, 2024
June 30, 2024
September 30, 2024
September 30, 2023
Gathering
(millions)
Net Income Attributable to DT Midstream
$17
$25
$65
$78
Plus: Interest expense
26
27
80
69
Plus: Income tax expense
6
9
22
30
Plus: Depreciation and amortization
35
34
101
83
Plus: Loss from financing activities
2
-
2
-
Less: Interest income
(1)
-
(1)
-
Adjusted EBITDA
$85
$95
$269
$260
DT Midstream
26
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow
Three Months Ended
Nine Months Ended
September 30, 2024
June 30, 2024
September 30, 2024
September 30, 2023
Consolidated
(millions)
Net Income Attributable to DT Midstream
$88
$96
$281
$263
Plus: Interest expense
38
39
117
111
Plus: Income tax expense
30
33
94
102
Plus: Depreciation and amortization
53
53
156
133
Plus: Loss from financing activities
4
-
4
-
Plus: Adjustments for non-routine items (1)
(416)
-
(416)
(371)
Less: Earnings from equity method investees
(40)
(39)
(125)
(132)
Less: Depreciation and amortization attributable to noncontrolling interests
(1)
(1)
(3)
(3)
Plus: Dividends and distributions from equity method investees
465
50
590
557
Less: Cash interest expense
(6)
(64)
(80)
(76)
Less: Cash taxes
(4)
(1)
(7)
(21)
Less: Maintenance capital investment (2)
(4)
(6)
(17)
(22)
Distributable Cash Flow
$207
$160
$594
$541
(1) Distributable Cash Flow calculation excludes certain items we consider non-routine. For the three and nine months ended September 30, 2024, adjustments for non-routine items included the $416 million Millennium financing distribution. For the nine months ended September 30, 2023, adjustments for non-routine items included the $371 million NEXUS financing distribution.
(2) Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual obligations that do not generate incremental earnings.
DT Midstream
27
v3.24.3
Cover
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Oct. 29, 2024 |
Cover [Abstract] |
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Oct. 29, 2024
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DT Midstream, Inc.
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0001842022
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Entity Tax Identification Number |
38-2663964
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Entity Incorporation, State or Country Code |
DE
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500 Woodward Ave., Suite 2900
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Detroit
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MI
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DT Midstream (NYSE:DTM)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
DT Midstream (NYSE:DTM)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025