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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):
July 30, 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 July 30, 2024, announcing financial results for the quarter ended
June 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 July 30, 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 July 30, 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 September 16, 2024, and is expected to be paid on October 15, 2024.
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: July 30, 2024
|
DT MIDSTREAM, INC.
(Registrant) |
| by |
| |
/s/ Jeffrey Jewell |
| |
Name: Jeffrey Jewell |
| |
Title: Chief Financial Officer |
NEWS RELEASE
DT Midstream Reports Strong Second Quarter 2024 Results
DETROIT, July 30, 2024 – DT Midstream, Inc. (NYSE: DTM)
today announced second quarter 2024 reported net income of $96 million, or $0.98 per diluted share. For the second quarter of 2024, Operating
Earnings were also $96 million, or $0.98 per diluted share. Adjusted EBITDA for the quarter was $248 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 October 15, 2024 to stockholders of record at the close of business September
16, 2024.
“We had another strong quarter, and the business is performing
on track with our full-year plan,” said David Slater, President and CEO. “We continue to make great progress on our active
construction projects and advancing new opportunities which will support our future growth.”
Slater noted the following significant business updates:
| • | Placed the LEAP Phase 3 expansion project in-service early and on budget |
| • | Executed new agreements to connect three producers located in East Texas to our Haynesville System |
| • | Completed the detailed evaluation of the Class V test well for our carbon capture and sequestration project in Louisiana, confirming
the suitability of the formation |
“Our second quarter results demonstrate the durability
of our business and put us in a strong position to meet our financial goals for 2024,” said Jeff Jewell, Executive Vice President
and CFO.
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 Southwestern 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)
|
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|
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Three
Months Ended |
| | |
June 30, | |
March 31, |
| | |
2024 | |
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 | |
$ | 96 | | |
$ | — | | |
$ | — | | |
$ | 96 | | |
$ | 97 | | |
$ | — | | |
$ | — | | |
$ | 97 | |
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| | | |
| | | |
| | | |
| | | |
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| | |
| Six Months Ended | |
| | |
| June 30, | | |
| June 30, | |
| | |
| 2024 | | |
| 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 | |
$ | 193 | | |
$ | — | | |
$ | — | | |
$ | 193 | | |
$ | 172 | | |
$ | — | | |
$ | — | | |
$ | 172 | |
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| (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)
|
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|
| | |
Three Months Ended |
| | |
June 30, | |
March 31, |
| | |
2024 | |
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 | |
$ | 0.98 | | |
$ | — | | |
$ | — | | |
$ | 0.98 | | |
$ | 0.99 | | |
$ | — | | |
$ | — | | |
$ | 0.99 | |
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| | | |
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| | |
Six Months Ended |
| | |
June 30, | |
June 30, |
| | |
2024 | |
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 | |
$ | 1.97 | | |
$ | — | | |
$ | — | | |
$ | 1.97 | | |
$ | 1.76 | | |
$ | — | | |
$ | — | | |
$ | 1.76 | |
| | |
| | | |
| | | |
| | | |
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| | | |
| | | |
| | | |
| | |
| |
(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 |
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DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA (non-GAAP, unaudited) |
| | |
| |
| |
| |
|
| | |
Three Months Ended | |
Six Months Ended |
| | |
June 30, | |
March 31, | |
June 30, | |
June 30, |
| | |
2024 | |
2024 | |
2024 | |
2023 |
| Consolidated | |
(millions) |
| Net Income Attributable to DT Midstream | |
$ | 96 | | |
$ | 97 | | |
$ | 193 | | |
$ | 172 | |
| Plus: Interest expense | |
| 39 | | |
| 40 | | |
| 79 | | |
| 73 | |
| Plus: Income tax expense | |
| 33 | | |
| 31 | | |
| 64 | | |
| 69 | |
| Plus: Depreciation and amortization | |
| 53 | | |
| 50 | | |
| 103 | | |
| 87 | |
| Plus: EBITDA from equity method investees (1) | |
| 67 | | |
| 75 | | |
| 142 | | |
| 142 | |
| Less: Interest income | |
| — | | |
| (1 | ) | |
| (1 | ) | |
| (1 | ) |
| Less: Earnings from equity method investees | |
| (39 | ) | |
| (46 | ) | |
| (85 | ) | |
| (91 | ) |
| Less: Depreciation and amortization attributable to noncontrolling interests | |
| (1 | ) | |
| (1 | ) | |
| (2 | ) | |
| (2 | ) |
| Adjusted EBITDA | |
$ | 248 | | |
$ | 245 | | |
$ | 493 | | |
$ | 449 | |
| | |
| | | |
| | | |
| | | |
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| |
|
|
|
|
|
|
|
|
| (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 | |
Six Months Ended |
| | |
June 30, | |
March 31, | |
June 30, | |
June 30, |
| | |
2024 | |
2024 | |
2024 | |
2023 |
| | |
(millions) |
| Earnings from equity method investees | |
$ | 39 | | |
$ | 46 | | |
$ | 85 | | |
$ | 91 | |
| Plus: Depreciation and amortization attributable to equity method investees | |
| 21 | | |
| 20 | | |
| 41 | | |
| 41 | |
| Plus: Interest expense attributable to equity method investees | |
| 7 | | |
| 9 | | |
| 16 | | |
| 10 | |
| EBITDA from equity method investees | |
$ | 67 | | |
$ | 75 | | |
$ | 142 | | |
$ | 142 | |
| | |
| | | |
| | | |
| | | |
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DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment (non-GAAP, unaudited) |
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| |
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|
| | |
Three Months Ended | |
Six Months Ended |
| | |
June 30, | |
March 31, | |
June 30, | |
June 30, |
| | |
2024 | |
2024 | |
2024 | |
2023 |
| Pipeline | |
(millions) |
| Net Income Attributable to DT Midstream | |
$ | 71 | | |
$ | 74 | | |
$ | 145 | | |
$ | 121 | |
| Plus: Interest expense | |
| 12 | | |
| 13 | | |
| 25 | | |
| 29 | |
| Plus: Income tax expense | |
| 24 | | |
| 24 | | |
| 48 | | |
| 49 | |
| Plus: Depreciation and amortization | |
| 19 | | |
| 18 | | |
| 37 | | |
| 33 | |
| Plus: EBITDA from equity method investees (1) | |
| 67 | | |
| 75 | | |
| 142 | | |
| 142 | |
| Less: Interest income | |
| — | | |
| (1 | ) | |
| (1 | ) | |
| (1 | ) |
| Less: Earnings from equity method investees | |
| (39 | ) | |
| (46 | ) | |
| (85 | ) | |
| (91 | ) |
| Less: Depreciation and amortization attributable to noncontrolling interests | |
| (1 | ) | |
| (1 | ) | |
| (2 | ) | |
| (2 | ) |
| Adjusted EBITDA | |
$ | 153 | | |
$ | 156 | | |
$ | 309 | | |
$ | 280 | |
| | |
| | | |
| | | |
| | | |
| | |
| |
|
|
|
|
|
|
|
|
| (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 | |
Six Months Ended |
| | |
June 30, | |
March 31, | |
June 30, | |
June 30, |
| | |
2024 | |
2024 | |
2024 | |
2023 |
| | |
(millions) |
| Earnings from equity method investees | |
$ | 39 | | |
$ | 46 | | |
$ | 85 | | |
$ | 91 | |
| Plus: Depreciation and amortization attributable to equity method investees | |
| 21 | | |
| 20 | | |
| 41 | | |
| 41 | |
| Plus: Interest expense attributable to equity method investees | |
| 7 | | |
$ | 9 | | |
| 16 | | |
| 10 | |
| EBITDA from equity method investees | |
$ | 67 | | |
$ | 75 | | |
$ | 142 | | |
$ | 142 | |
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DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment (non-GAAP, unaudited) |
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|
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Three Months Ended | |
Six Months Ended |
| | |
June 30, | |
March 31, | |
June 30, | |
June 30, |
| | |
2024 | |
2024 | |
2024 | |
2023 |
| Gathering | |
(millions) |
| Net Income Attributable to DT Midstream | |
$ | 25 | | |
$ | 23 | | |
$ | 48 | | |
$ | 51 | |
| Plus: Interest expense | |
| 27 | | |
| 27 | | |
| 54 | | |
| 44 | |
| Plus: Income tax expense | |
| 9 | | |
| 7 | | |
| 16 | | |
| 20 | |
| Plus: Depreciation and amortization | |
| 34 | | |
| 32 | | |
| 66 | | |
| 54 | |
| Adjusted EBITDA | |
$ | 95 | | |
$ | 89 | | |
$ | 184 | | |
$ | 169 | |
| | |
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DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow (non-GAAP, unaudited) |
| | |
| |
| |
| |
|
| | |
Three Months Ended | |
Six Months Ended |
| | |
June 30, | |
March 31, | |
June 30, | |
June 30, |
| | |
2024 | |
2024 | |
2024 | |
2023 |
| Consolidated | |
(millions) |
| Net Income Attributable to DT Midstream | |
$ | 96 | | |
$ | 97 | | |
$ | 193 | | |
$ | 172 | |
| Plus: Interest expense | |
| 39 | | |
| 40 | | |
| 79 | | |
| 73 | |
| Plus: Income tax expense | |
| 33 | | |
| 31 | | |
| 64 | | |
| 69 | |
| Plus: Depreciation and amortization | |
| 53 | | |
| 50 | | |
| 103 | | |
| 87 | |
| Plus: Adjustments for non-routine items (1) | |
| — | | |
| — | | |
| — | | |
| (371 | ) |
| Less: Earnings from equity method investees | |
| (39 | ) | |
| (46 | ) | |
| (85 | ) | |
| (91 | ) |
| Less: Depreciation and amortization attributable to noncontrolling interests | |
| (1 | ) | |
| (1 | ) | |
| (2 | ) | |
| (2 | ) |
| Plus: Dividends and distributions from equity method investees | |
| 50 | | |
| 75 | | |
| 125 | | |
| 509 | |
| Less: Cash interest expense | |
| (64 | ) | |
| (10 | ) | |
| (74 | ) | |
| (69 | ) |
| Less: Cash taxes | |
| (1 | ) | |
| (2 | ) | |
| (3 | ) | |
| (18 | ) |
| Less: Maintenance capital investment (1) | |
| (6 | ) | |
| (7 | ) | |
| (13 | ) | |
| (11 | ) |
| Distributable Cash Flow | |
$ | 160 | | |
$ | 227 | | |
$ | 387 | | |
$ | 348 | |
| | |
| | | |
| | | |
| | | |
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| |
(1) |
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. |
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# # #
Second Quarter 2024
Earnings Call
July 30, 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 Southwestern 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
Second Quarter 2024 Accomplishments
Strong financial performance
Second quarter 2024 net income of $96 million and Adjusted EBITDA1 of $248 million
Reaffirming 2024 Adjusted EBITDA guidance range of $930 - $980 million
Confident in 2025 Adjusted EBITDA early outlook of $980 - $1,040 million
Moody's and Fitch issued positive rating outlook/watch
Successful construction and development activity
LEAP Phase 3 expansion in-service early and on budget
Executed agreements to connect three producers to our Haynesville System from East Texas acreage
Remain in early-stage discussions on data center-related opportunities
Continuing to advance energy transition platform
Louisiana CCS on-track for 2H 2024 final investment decision
Developing new clean fuels gathering project
DT Midstream
1. Definition and reconciliation of Adjusted EBITDA (non-GAAP) to net income included in the appendix
3
Quality Portfolio Delivering Sector-Leading Results
Distinctive and durable business attributes
Sector-leading pipeline contribution1
Adjusted EBITDA2
Pipeline3 65%
Gathering 35%
Strong organic results with no commodity exposure
2020 - 2023 Adjusted EBITDA CAGR
DTM 9% Peers1 4%
2024E Dividend Coverage Ration
DTM 2.4x Peers1 1.8x
3-yr Distribution CAGR
DTM 7% Peers1 4%
Premium quality portfolio
100% Natural gas focus
~90%
MVC/Demand charges and glowing gas4
~9 years
Average contract tenor for both segments
>$1.3B organic growth project backlog at 5-8x build multiples
DT Midstream
1. Peer group sets utilized: Pipeline contribution - Based on Q4 2023 adjusted EBITDA; US-based midstream peers (AM, ENLC, ET, ETRN, EPD, KMI, MPLX, OKE, TRGP, WES, WMB); Adj. EBITDA CAGR - average of gas-focused peers (AM, ENLC, ETRN, KMI, TRP, WMB); Dividend coverage and distribution-CAGR - average of large-cap peers (WMB, KMI, EPD, MPLX, ET, TRP, OKE)
2. Definition and reconciliation of adjusted EBITDA (non-GAAP) to net income included in this appendix
3. The terminology and asset categorization used here are for accounting purposes only and do not reflect on the jurisdictional status of any particular asset
4. Flowing gas represents proved developed producing reserves (PDPs); % is of 2023 total revenue
Source: Wells Fargo Equity Research
4
DT Midstream has strategically located, integrated assets
Uniquely positioned to benefit from growing LNG and power demand
Forecasted Data Center Cumulative New Electricity Demand (TWh)
250
200
150
100
50
0
2024
2025
2026
2027
2028
2029
2030
PJM
MISO
+57% CAGR
Michigan System
Vector Pipeline
Washington 10 Storage Complex
Bluestone Gathering Lateral Pipeline
Millennium Pipeline
Generation Pipeline
Tioga Gathering System
NEXUS Gas Transmission Pipeline
Susquehanna Gathering System
Birdsboro Pipeline
Ohio Utica Gathering System
Appalachia Gathering System
Stonewall Gas Gathering Lateral Pipeline
PJM Service Territory
MISO Service Territory
Data Center Count Density
LNG Facilities
Operational
Under development
Haynesville System
Gillis Hub
Henry Hub
Forecasted LNG Capacity Growth in Louisiana Gulf Coast Area
(Bcf/d)
+55% CAGR
0.8
7.2
11.3
2024
2027
2030
Plaquemines
Golden Pass
Port Arthur
Sabine Pass
Calcasieu Pass
Delfin
DT Midstream
Sources: S+P Global Commodity Insights, Wood Mackenzie North America Gas Investment Horizon Outlook - October 2023
5
Second Quarter 2024 Financial Results
Adjusted EBITDA1
(millions) xx segment % of total
$245
$156
$89
Q1 2024
64%
36%
$248
$153
$95
62%
38%
Q2 2024
Pipeline
Gathering
Pipeline2
Higher firm revenue on LEAP and W10 storage, offset by lower seasonal earnings from JV pipelines
Gathering
Base business lower in Q2 due to timing of producer plans and production
Favorable one-time items of ~$10 million in Q23
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
3. Accounting adjustments originally expected in Q4 of 2024
6
Growth Investment Projects
Continue to advance and deliver on short-cycle growth investments
Project
Expected in-service dates
Pipeline
Haynesville LEAP expansion - Phase 3
In-Service
Stonewall to Mountain Valley Pipeline (MVP) expansion
1H 2026
Gathering
Appalachia Tioga Gathering expansion
Q2 2025
Appalachia Gathering System expansion - Phase 3
Q2 2025 - 1H 2026
Haynesville Blue Union well pad expansion
Q2 2025
Haynesville Blue Union new producer expansions
Q2 2025
Energy Transition1
Clean Fuels Gathering
2H 2025
In-flight project updates
LEAP Phase 3 expansion in-service early, on-budget
New Haynesville gathering expansions for three producers
All growth investments on track and on budget
DT Midstream
1. The asset categorization used here does not reflect the accounting segment.
7
Disciplined Capital Investment
Committed capital remains within 2024 guidance and free cash flow
Growth capex
(millions)
Committed
New Commitments
Pre-FID / Highly Probable
Cash flow after dividends
~$330 Committed
$330 - $375
2024 guidance1
2025
~$180 Committed
Flexible, short-cycle, capital investments
Capital investment program funded within free cash flow
Increasing committed capital in 2024-2025 to reflect new projects reaching FID
Raising 2024 growth capital guidance range floor to reflect strong commercial progress this year; no change to top end
DT Midstream
1. Guidance range is net of a ~$20 million customer contribution
8
LEAP Phase 3 Expansion Placed In-Service Early
Haynesville System provides 1.9 Bcf/d of wellhead to Gulf Coast markets access
Phase 3 LEAP expansion complete, increasing capacity from 1.7 Bcf/d to 1.9 Bcf/d
Integrated gathering wellhead-to-water connectivity
Project leverages recently expanded processing and entails incremental looping and compression
Expansion is underpinned by a take-or-pay contract
In active discussions for additional expansions
Capital efficient, lower-risk expansions provide timely access to growing LNG demand
Targeting 200 - 400 MMcf/d for Phase 4 expansion
Haynesville System LEAP expansion potential ~4 Bcf/d
DTM assets
DTM treating plants
Electric compression
Acreage dedication
LNG facilities
Operational
Under development
LEAP capacity (Bcf/d)
In-service
Original
Phase 1 expansion
Phase 2 expansion
Phase 3 expansion
Phase 4 expansion (pre-FID)
Total
Expansion potential
1.0
0.3
0.4
0.2
0.2-0.4
2.1-2.3
~4
Aug. 2023
Jan. 2024
Jun. 2024
2025/2026
Louisiana
Texas
Gillis Hub
Driftwood LNG
Lake Charles LNG
Cameron LNG
Port Arthur
Sabine Pass LNG
CP2
Henry Hub
Golden Pass LNG
Calcasieu Pass
Delfin LNG
Plaquemines
DT Midstream
9
New East Texas Gathering Expansion
Attaching three producers to Haynesville System with sizable additional acreage dedications
Continuing to expand and diversify the supply access of our Haynesville System
Expanding access to East Texas side of the Haynesville via new gathering agreements with three private producers
Long-term gathering contracts have acreage dedications to Haynesville System which total over 10,000 acres; customers have potential access to LEAP
Fully in-service by Q2 2025
Total expected capacity ramping up to ~400 MMcf/d1 over a two-year period
DTM treating plants
Third party processing plant
DTM Haynesville System
Existing acreage dedication
New acreage dedication
Carthage Hub
East TX Supply Access
Texas
Louisiana
To Gillis Hub
DT Midstream
1. Capacity is primarily wellhead to Haynesville in-basin delivery points
10
Louisiana Carbon Capture and Sequestration
Evaluation of Class V test well confirms suitability of formation - on track for 2H 2024 FID
Project timeline
Capital deployment
Q4 2022
Q2 2023
1H 2024
2H 2024
YE 2024
2H 2026
Class VI well permit filing
Conducted 3D seismic survey
Class V test well permit filing
Class V test well permit approved
Drill Class V test well
Evaluate Class V test well results
LA DENR final Class VI permit requirements Current stage
Final investment decision
Expected Class VI well permit approval
Expected Phase 1 project in-service
Minimizing capital spend until we reach a final investment decision
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 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
Commenced engineering design of system
Awaiting final Class VI well permit requirements from Louisiana DENR
Project remains on track for 2H 2024 FID
Leveraging over 50 years of storage and pipeline development and operations experience
DT Midstream
1. Louisiana Department of Energy and Natural Resources
11
New Clean Fuels Gathering Project
New strategic investment leverages DTM's gas gathering, treating and tax credit expertise
Clean Fuels Transaction Process
Producer Responsibility
Fugitive coal mine methane gas
Produced gas from dedicated acreage
Performance guarantee
DT Midstream Responsibility
Gas gathering and treating
Gas delivery to interstate pipeline
Monetization of economic proceeds1
Tax credits
Carbon offsets
Gas sales
Attractive investment establishes DTM as an early mover in the growing clean fuels sector
Acquisition of an existing treating plant and buildout of new gas gathering system to serve clean fuel production
~$12 million initial payment in 2024; project contribution expected in 2H 2025
Project expected to provide clean fuel tax credits and environmental attributes
Working with an experienced producer that has developed projects across six states
DT Midstream
1. Monetization of proceeds will incorporate a sharing component with producer
12
Quarterly Financial Results
Three months ended
(millions, except EPS)
June 30, 2024
March 31, 2024
Key drivers
Adjusted EBITDA1
$248
$245
Pipeline segment
$153
$156
Gathering segment
$95
$89
One-time items totaling ~$10 million in Q2
Operating Earnings2
$96
$97
Operating EPS2
$0.98
$0.99
Distributable Cash Flow3
$160
$227
Cash interest payment in Q2
Growth Capital4
$745
$825
Maintenance Capital
$6
$7
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 ~$1 million cash contribution from customers received in Q2 2024; capital spend of $92 million less cash contribution from customers of $10 million in Q1 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
Haynesville throughput
(bcf/d)
Blue Union Gathering
1.53
1.60
1.56
1.52
1.50
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Northeast throughput
(bcf/d)
Susquehanna Gathering
Appalachia Gathering
Tioga Gathering
Ohio Utica Gathering
1.39
1.39
1.53
1.54
1.43
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
DT Midstream
16
2024/2025 Guidance Summary
(millions, except EPS)
Prior Guidance
Updated Guidance
2024
Adjusted EBITDA1
$930 - $980
$930 - $980
Operating Earnings2
$335 - $375
$335 - $375
Operating EPS2
$3.43 - $3.83
$3.43 - $3.83
Distributable Cash Flow3
$640 - $700
$640 - $700
Capital Expenditures
$330 - $415
$360 - $415
Growth Capital4
$300 - $375
$330 - $375
Raising floor to reflect progress
Maintenance Capital
$30 - $40
$30 - $40
2025
Adjusted EBITDA (early outlook)
$980 - $1,040
$980 - $1,040
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 this 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
DT Midstream
17
Continuing Our Track Record of Distinctive Growth
Targeting long-term Adjusted EBITDA growth of 5-7%
Adjusted EBITDA1
(millions)
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 commodity exposure
+6%
$930 - $980
$980 - $1,040
2024 guidance
2025 early outlook
1. Definition and reconciliation of Adjusted EBITDA (non-GAAP) to net income included in the appendix
DT Midstream
18
Strong Long-term Production Outlook in Both Basins
Haynesville and Appalachia production are expected to experience significant growth over the next decade
Historical production
(bcf/d)
Haynesville
Appalachia
Production forecast
(bcf/d)
Haynesville
Appalachia
60
50
40
30
20
10
0
2018
2019
2020
2021
2022
2023
2023
DUC inventory1
Haynesville
412
662
764
807
Appalachia
630
840
810
786
+18 bcf/d
49
67
15
27
34
40
2023
2033
1. Drilled but uncompleted (DUC) wells data reflects EIA publication released July 9, 2024
Sources: EIA, S+P Global Commodity Insights, and Wood Mackenzie North America Gas Investment Horizon Outlook - October 2023
DT Midstream
19
Executing a Leading ESG Program
Focused on impactful environmental, social and governance initiatives
Environmental
Continuing to advance CCS opportunity in Louisiana
Advancing hydrogen development opportunities with strategic partnership
Transitioning to net zero GHG emissions with a goal to complete by 2050, including a 30% reduction by 2030
Social
83% improvement in total recordable safety incident rate since 2020
Doubled the percentage of ethnically diverse leadership
Community giving and volunteer hours per employee is leading among midstream peers
Governance
Independent and diverse board
Long-term incentive plans tied to total shareholder return
DT Midstream
Corporate Sustainability Report 2024
Corporate Sustainability Report 2024
DT Midstream
20
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.
DTMidstream
21
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
22
Non-GAAP Reconciliations
Reconciliation of Reported to Operating Earnings - DT Midstream Consolidated
Three Months Ended
June 30, 2024
March 31, 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 $96 $ - $ - $96 $97 $ - $ - $97
Six Months Ended
June 30, 2024
June 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 $193 $ - $ - $193 $172 $ - $ - $172
(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
23
Non-GAAP Reconciliations
Reconciliation of Reported to Operating Earnings per diluted share(2) - DT Midstream Consolidated
Three Months Ended
June 30, 2024
March 31, 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 $0.98 $ - $ - $0.98 $0.99 $ - $ - $0.99
Six Months Ended
June 30, 2024
June 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 $1.97 $ - $ - $1.97 $1.76 $ - $ - $1.76
(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
24
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
Consolidated
(millions)
Net Income Attributable to DT Midstream $96 $97 $193 $172
Plus: Interest expense 39 40 79 73
Plus: Income tax expense 33 31 64 69
Plus: EBITDA from equity method investees(1) 53 50 103 87
Less: Interest income - (1) (1) (1)
Less: Earnings from equity method investees (39) (46) (85) (91)
Less: Depreciation and amortization attributable to noncontrolling interests (1) (1) (2) (2)
Adjusted EBITDA $248 $245 $493 $449
(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
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
(millions)
Earnings from equity method investees $39 $46 $85 $91
Plus: Depreciation and amortization attributable to equity method investees 21 20 41 41
Plus: Interest expenses attributable to equity method investees 7 9 16 10
EBITDA from equity method investees $67 $75 $142 $142
DT Midstream
25
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
Pipeline
(millions)
Net Income Attributable to DT Midstream $71 $74 $145 $121
Plus: Interest expense 12 13 25 29
Plus: Income tax expense 24 24 48 49
Plus: Depreciation and amortization 19 18 37 33
Plus: EBITDA from equity method investees(1) 67 75 142 142
Less: Interest income - (1) (1) (1)
Less: Earnings from equity method investees (39) (46) (85) (91)
Less: Depreciation and amortization attributable to noncontrolling interests (1) (1) (2) (2)
Adjusted EBITDA $153 $156 $309 $280
(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
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
(millions)
Earnings from equity method investees $39 $46 $85 $91
Plus: Depreciation and amortization attributable to equity method investees 21 20 41 41
Plus: Interest expense attributable to equity method investees 7 9 16 10
EBITDA from equity method investees $67 $75 $142 $142
DT Midstream
26
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
Gathering
(millions)
Net Income Attributable to DT Midstream $25 $23 $48 $51
Plus: Interest expense 27 27 54 44
Plus: Income tax expense 9 7 16 20
Plus: Depreciation and amortization 34 32 66 54
Adjusted EBITDA $95 $89 $184 $169
DT Midstream
27
Non-GAAP Reconciliations
Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2024
June 30, 2023
Consolidated
(millions)
Net Income Attributable to DT Midstream $96 $97 $193 $172
Plus: Interest expense 39 40 79 73
Plus: Income tax expense 33 31 64 69
Plus: Depreciation and amortization 53 50 103 87
Plus: Adjustments for non-routine items(1) - - - (371)
Less: Earnings from equity method investees (39) (46) (85) (91)
Less: Depreciation and amortization attributable to noncontrolling interests (1) (1) (2) (2)
Plus: Dividends and distributions from equity method investees 50 75 125 509
Less: Cash interest expense (64) (10) (74) (69)
Less: Cash taxes (1) (2) (13) (11)
Less: Maintenance capital investment(1) (6) (7) (13) (11)
Distributable Cash Flow $160 $227 $387 $348
(1) 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
28
v3.24.2
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DT Midstream (NYSE:DTM)
過去 株価チャート
から 6 2024 まで 7 2024
DT Midstream (NYSE:DTM)
過去 株価チャート
から 7 2023 まで 7 2024
