Core Viewpoint - DT Midstream, Inc. is set to announce its second quarter 2025 financial results on July 31, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for 9:00 a.m. ET on the same day [2] - Investors and the public can access a live internet broadcast of the call [2] Group 2: Company Overview - DT Midstream is involved in the ownership, operation, and development of natural gas pipelines, storage, and related facilities [3] - The company provides services for utilities, power plants, and large industrial customers across the U.S. and Canada [3] - DT Midstream aims for net zero greenhouse gas emissions by 2050, with a target of 30% carbon emissions reduction by 2030 [3]

Core Viewpoint - DT Midstream, Inc. has achieved investment grade ratings from all three major credit rating agencies, reflecting the strength of its balance sheet and business quality, positioning the company for continued growth [1][3]. Company Overview - DT Midstream is involved in the ownership, operation, and development of natural gas pipelines, storage, and gathering systems, providing services across the Southern, Northeastern, and Midwestern United States and Canada [2]. - The company is committed to transitioning towards net zero greenhouse gas emissions by 2050, with a target of achieving a 30% reduction in carbon emissions by 2030 [2]. Credit Rating Upgrades - Fitch Ratings upgraded DT Midstream's credit rating to BBB- with a stable outlook on October 3, 2024 [3]. - Moody's Ratings upgraded the credit rating to Baa3 with a stable outlook on May 16, 2025 [3]. - S&P Global Ratings upgraded the credit rating to BBB- with a stable outlook on July 8, 2025 [3].

Core Viewpoint - The past year has been favorable for investors in midstream companies, with many experiencing double-digit growth year over year, including DT Midstream (NYSE: DTM) which has significantly outperformed small-cap midstream peers [1] Group 1: Company Performance - DT Midstream has shown strong performance, aligning with the positive trend in the midstream sector [1] Group 2: Industry Insights - The midstream sector has generally benefited from favorable market conditions, leading to substantial gains for investors [1]

Core Viewpoint - DT Midstream, Inc. has achieved investment grade ratings from two credit agencies, which is expected to enhance liquidity and reduce interest expenses [1][6]. Company Overview - DT Midstream is involved in the ownership, operation, and development of natural gas pipelines, storage, and gathering systems, serving utilities, power plants, and large industrial customers across the U.S. and Canada [2]. - The company is committed to transitioning towards net zero greenhouse gas emissions by 2050, with a target of achieving a 30% reduction in carbon emissions by 2030 [2]. Credit Rating Details - Moody's upgraded DT Midstream's credit rating to Baa3 with a stable outlook on May 16, 2025 [6]. - Fitch Ratings upgraded DT Midstream's credit rating to BBB- with a stable outlook on October 3, 2024 [6].

Financial Performance - Operating revenues for the three months ended March 31, 2025, increased to $303 million, up from $240 million in the same period of 2024, representing a 26.25% growth[25] - Net income attributable to DT Midstream for the three months ended March 31, 2025, was $108 million, compared to $97 million for the same period in 2024, reflecting an 11.34% increase[25] - Basic earnings per common share rose to $1.07 for the three months ended March 31, 2025, compared to $1.00 for the same period in 2024, marking a 7% increase[25] - Operating income for the three months ended March 31, 2025, was $148 million, compared to $124 million in the same period of 2024, a 19.35% increase[25] - The company reported comprehensive income attributable to DT Midstream of $109 million for the three months ended March 31, 2025, compared to $97 million in the same period of 2024, a 12.37% increase[27] - Net cash from operating activities for the three months ended March 31, 2025, was $247 million, compared to $241 million for the same period in 2024, a 2.49% increase[34] - As of March 31, 2025, DT Midstream reported a net income of $111 million, compared to $100 million for the same period in 2024, reflecting an increase of 11%[36] - The company declared dividends of $0.820 per common share, totaling $83 million for the first quarter of 2025, up from $71 million in the same quarter of 2024[36] - Basic earnings per share for Q1 2025 were $1.07, up from $1.00 in Q1 2024, while diluted earnings per share increased to $1.06 from $0.99[87] Assets and Liabilities - Total assets as of March 31, 2025, were $9,932 million, slightly down from $9,935 million as of December 31, 2024[30] - Total liabilities decreased to $5,150 million as of March 31, 2025, from $5,169 million as of December 31, 2024[32] - The company’s long-term debt remained stable at $3,320 million as of March 31, 2025, compared to $3,319 million at the end of 2024[32] - The company’s retained earnings balance as of March 31, 2025, was $747 million, slightly up from $723 million as of December 31, 2024[36] - Total assets as of March 31, 2025, amounted to $929 million, a slight increase from $914 million as of December 31, 2024[48] - The carrying value of goodwill remained unchanged at $776 million as of March 31, 2025, with no impairments reported[85] Cash and Liquidity - Cash and cash equivalents increased to $83 million as of March 31, 2025, up from $68 million at the end of 2024, indicating a 22.06% increase[30] - Cash and cash equivalents increased to $24 million as of March 31, 2025, from $17 million at the end of 2024[48] - The company maintains a Revolving Credit Facility as a source of liquidity, alongside cash generated from operations[42] - The company has a total availability of $1 billion under the Revolving Credit Facility, with net availability of $919 million after accounting for outstanding borrowings of $65 million and letters of credit of $16 million[100] - The weighted average interest rate for Revolving Credit Facility borrowings outstanding was 5.68% as of March 31, 2025[100] Acquisitions and Investments - The company completed the Midwest Pipeline Acquisition on December 31, 2024, enhancing its natural gas transmission capabilities[38] - The company completed the Midwest Pipeline Acquisition on December 31, 2024, for a preliminary purchase price of $1.2 billion, acquiring 100% operating ownership in three interstate natural gas transmission pipelines[119] - The intangible assets from the acquisition were valued at approximately $11 million, with the excess purchase price classified as goodwill[121] - The Clean Fuels Gathering segment's results of operations are included after the July 1, 2024 acquisition date[114] Revenue Streams - Pipeline revenue increased to $169 million in Q1 2025 from $107 million in Q1 2024, while gathering revenue remained relatively stable at $134 million compared to $133 million[71] - Operating revenues for non-consolidated equity method investees were $209 million for the three months ended March 31, 2025, compared to $214 million in 2024[56] - Earnings from equity method investees totaled $37 million for the three months ended March 31, 2025, down from $46 million in the same period of 2024[52] Financial Ratios and Covenants - The consolidated net leverage ratio as of March 31, 2025, is 2.3 to 1, and the interest coverage ratio is 9.0 to 1, indicating compliance with financial covenants[104] - The interim effective tax rate for the three months ended March 31, 2025, was 24%, consistent with the same period in 2024[90] Other Financial Information - Contract liabilities as of March 31, 2025, amounted to $155 million, with expected revenue recognition of $15 million in the remainder of 2025[77] - The total transaction price allocated to remaining performance obligations expected to be recognized as revenue in future periods is $1.414 billion[80] - The company has accrued contingent liabilities of $3 million for future slope restoration expenditures as of March 31, 2025[111] - The company has a maximum potential indemnification under surety bond agreements of $13 million as of March 31, 2025[107] - The company has a credit facility to Vector for CAD $70 million, with a maximum potential payout of USD $49 million[108] - The company recorded $10 million as a long-term prepaid asset related to a gas supply agreement at Clean Fuels Gathering, with $6 million paid during the three months ended March 31, 2025[109] Risks and Dependencies - The company is dependent on a key customer, Expand Energy, for a significant portion of its revenues, which poses a credit risk if volumes from this customer decline[174] - The most recent FERC rate proceedings for the company's pipelines were settled on February 15, 2023, May 3, 2022, and July 31, 2024, with no open proceedings as of March 31, 2025[127]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $280 million for Q1 2025, an increase of $45 million from the previous quarter [13] - The pipeline segment results were $39 million higher than Q4 2024, reflecting a full quarter contribution from acquired interstate pipelines [13] - Gathering segment results increased by $6 million compared to Q4 2024, driven by lower expenses and growing volumes in the Haynesville [13] Business Line Data and Key Metrics Changes - Total gathering volumes in the Haynesville averaged 1.67 Bcf per day, an increase from the previous quarter due to new volumes and the return of offline production [13] - In the Northeast, volumes averaged 1.3 Bcf per day, a decrease from the previous quarter due to timing of producer activity [14] Market Data and Key Metrics Changes - The first quarter of 2025 experienced significant market volatility, with natural gas prices rising due to cold weather in January, followed by a decline as markets adjusted to tariff announcements [8] - Total U.S. natural gas supply and demand are expected to grow by approximately 19 Bcf per day through 2030, primarily driven by LNG exports and utility-scale power generation [10] Company Strategy and Development Direction - The company is focused on executing a $2.3 billion organic growth project backlog and integrating newly acquired interstate pipelines [6][9] - There is a strong emphasis on the long-term outlook for natural gas infrastructure, with expected demand growth from LNG exports and industrial onshoring [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming 2025 adjusted EBITDA guidance and early outlook for 2026, citing a durable contract structure and minimal commodity exposure [9][15] - The company remains optimistic about the Haynesville activity and expects continued ramp-up throughout the year [22] Other Important Information - The company announced a first-quarter dividend of $0.82 per share, unchanged from the prior quarter, with a commitment to grow the dividend by 5% to 7% per year [15] - Management highlighted the positive political and regulatory support for natural gas and energy infrastructure, which is expected to benefit the sector [11] Q&A Session Summary Question: Gathering volumes in Q1 - Management noted that the uptick in Haynesville volumes aligns with large public producers and increased activity from private producers [21] Question: Data center projects - Management confirmed ongoing commercial conversations for data center power demand and utility-scale power generation projects [26] Question: Millennium pipeline open season - Management indicated strong interest in incremental capacity and the potential for synergies with existing assets [32][34] Question: Impact of tariffs on propane prices - Management stated that very little of their Appalachian gathering footprint is exposed to the wet side of the Marcellus or NGL side of the Utica, viewing it as a non-risk [98] Question: Confidence in 2025 and 2026 guidance - Management emphasized the durability of their portfolio, with no commodity exposure and minimal volumetric exposure, contributing to their confidence [106][108] Question: Changes in demand for power due to data center spending - Management reported robust demand for both site-specific and utility-scale power generation, with ongoing projects advancing [113][116]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted EBITDA of $280 million, an increase of $45 million from the previous quarter [11] - The pipeline segment results were $39 million higher than Q4 2024, reflecting a full quarter contribution from acquired interstate pipelines [11] - Gathering segment results increased by $6 million compared to Q4 2024, driven by lower overall expenses and growing volumes in the Haynesville [11] Business Line Data and Key Metrics Changes - Total gathering volumes in the Haynesville averaged 1.67 Bcf per day, an increase from the previous quarter due to new volumes and the return of offline production [11] - In the Northeast, volumes averaged 1.3 Bcf per day, a decrease from the previous quarter due to timing of producer activity [12] Market Data and Key Metrics Changes - The first quarter of 2025 experienced significant market volatility, with natural gas prices rising due to cold weather in January, followed by a decline as markets adjusted to tariff announcements [6] - Total U.S. natural gas supply and demand are expected to grow by approximately 19 Bcf per day through 2030, primarily driven by LNG exports and utility-scale power generation [8] Company Strategy and Development Direction - The company is focused on executing a $2.3 billion organic growth project backlog and integrating newly acquired interstate pipelines [5] - The company remains bullish about the long-term outlook for natural gas infrastructure, supported by growing demand from LNG exports and utility-scale power generation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming 2025 and 2026 adjusted EBITDA guidance, citing a durable contract structure and minimal commodity exposure [7] - The company highlighted the positive political and regulatory support for natural gas infrastructure, recognizing the need for streamlined processes to build necessary infrastructure [9] Other Important Information - The company announced a first-quarter dividend of $0.82 per share, unchanged from the prior quarter, with a commitment to grow the dividend by 5% to 7% per year [13] - The company is currently investment grade with Fitch ratings and on a positive outlook with Moody's and S&P [13] Q&A Session Summary Question: Gathering volumes in Q1 - Management noted that the uptick in Haynesville volumes aligns with large public producers' activity, while private producers have also become more active [20] Question: Update on data center projects - Management confirmed ongoing advanced commercial conversations for data center power demand and utility-scale power generation projects [24] Question: Outlook on Millennium project - Management indicated strong interest in incremental capacity and noted that the Millennium pipeline is well-positioned to meet market demands [32] Question: Local and state-level energy infrastructure sentiment - Management observed a shift in sentiment among utilities and stakeholders, recognizing the need for reliable energy supply [40] Question: LNG demand and Woodside FID - Management expressed optimism about expansion opportunities stemming from Woodside's FID, which includes a header system connected to the company's assets [44] Question: Backlog and CapEx guidance - Management reassured that the backlog is growing and highlighted several projects progressing towards FID [88] Question: Impact of China tariffs on propane prices - Management clarified that the company has minimal exposure to the wet side of the Marcellus and views potential ethane rejection as an opportunity rather than a risk [96][98] Question: Confidence in navigating macro uncertainty - Management emphasized the durability of the portfolio, with no commodity exposure and a strong balance sheet, allowing confidence in meeting 2025 and 2026 goals [104][106] Question: Data center demand and utility-scale generation - Management reported robust underlying demand for both site-specific and utility-scale power generation, with ongoing projects advancing towards commercialization [112][114]

First Quarter 2025 Earnings Call April 30, 2025 Bluestone Gathering Lateral Pipeline NYSE: DTM Safe Harbor Statement 2 New slide First Quarter 2025 Accomplishments Strong financial performance Acquisition performing well and integration progressing as planned Progressing commercial opportunities and executing on construction projects This presentation contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities l ...

Core Points - DT Midstream, Inc. reported a net income of $108 million, or $1.06 per diluted share, for the first quarter of 2025, with Operating Earnings also at $108 million and Adjusted EBITDA at $280 million [1][2][25] - The company declared a dividend of $0.82 per share, payable on July 15, 2025, to stockholders of record by June 16, 2025 [2] - The integration of new interstate pipelines has progressed well, contributing to a strong start for the year [2][7] Financial Performance - For the first quarter of 2025, the net income attributable to DT Midstream was $108 million, compared to $73 million in the same period of 2024 [25][30] - Adjusted EBITDA increased to $280 million in Q1 2025 from $235 million in Q1 2024 [25][30] - The company reported a Distributable Cash Flow (DCF) of $250 million for Q1 2025, significantly higher than $133 million in Q1 2024 [30] Business Updates - The company has successfully integrated new interstate pipelines into its financial system and commenced construction activities for a new power plant lateral [7] - DT Midstream is advancing on a project backlog valued at approximately $2.3 billion [7] - The company is committed to achieving net zero greenhouse gas emissions by 2050, with a target of 30% reduction in carbon emissions by 2030 [4] Operational Metrics - The company’s Adjusted EBITDA is calculated by adding back interest expense, income tax expense, depreciation and amortization, and other adjustments to net income [6][9] - The reconciliation of net income to Adjusted EBITDA for Q1 2025 shows a significant contribution from equity method investees, with $73 million included in the calculation [25][27]

Financial Performance - DT Midstream reported net income of $108 million, or $1.06 per diluted share for Q1 2025, with Adjusted EBITDA of $280 million[1][2] - Net Income Attributable to DT Midstream for Q1 2025 was $108 million, compared to $73 million in Q4 2024, reflecting a 47.95% increase[23] - Adjusted EBITDA for Q1 2025 reached $280 million, up from $235 million in Q4 2024, representing a 19.15% growth[23] - The Pipeline Segment's Adjusted EBITDA was $197 million for Q1 2025, compared to $156 million in Q4 2024, indicating a 26.28% increase[24] - The Gathering Segment reported an Adjusted EBITDA of $83 million for Q1 2025, slightly up from $79 million in Q4 2024, a 5.06% increase[25] - Distributable Cash Flow for Q1 2025 was $250 million, significantly higher than $133 million in Q4 2024, marking an 87.97% increase[26] - Interest expense for Q1 2025 was $40 million, compared to $36 million in Q4 2024, reflecting an increase of 11.11%[26] - Income tax expense for Q1 2025 was $35 million, down from $43 million in Q4 2024, a decrease of 18.60%[26] - Depreciation and amortization for Q1 2025 totaled $63 million, compared to $53 million in Q4 2024, an increase of 18.87%[26] - The company experienced a loss from financing activities of $1 million in Q4 2024, which was not present in Q1 2025[23] - The Midwest Pipeline Acquisition had a tax impact that contributed to the overall financial adjustments in the reported earnings[22] Dividends - The company declared a dividend of $0.82 per share, payable on July 15, 2025, to stockholders of record as of June 16, 2025[2] Projects and Operations - Successful integration of new interstate pipelines into the financial system has been completed[5] - Construction activities for a new power plant lateral from Midwestern Gas Transmission have commenced[5] - The company is advancing on a project backlog valued at approximately $2.3 billion[5] Environmental Goals - DT Midstream aims to achieve a 30% reduction in carbon emissions by 2030 as part of its transition to net zero greenhouse gas emissions by 2050[6] Performance Metrics - The company uses Operating Earnings and Adjusted EBITDA as key performance metrics to provide a clearer picture of ongoing operations[7][8] Forward-Looking Statements - Forward-looking statements indicate management's expectations for future performance, subject to various risks and uncertainties[12][14] - The company does not provide specific net income forecasts due to the unpredictability of its components[10] - Factors affecting future results include economic conditions, regulatory changes, and operational risks[14][15]