[Q2 2025 Earnings Release](index=1&type=section&id=Q2%202025%20Earnings%20Release) This section covers financial highlights, management commentary, and future guidance for Q2 2025 [Financial Highlights and Shareholder Returns](index=1&type=section&id=Financial%20Highlights%20and%20Shareholder%20Returns) DT Midstream reported strong Q2 2025 financial results with $107 million net income, $1.04 diluted EPS, $277 million Adjusted EBITDA, and declared a $0.82 quarterly dividend Q2 2025 Financial Performance | Metric | Value | | :--- | :--- | | Reported Net Income (in millions) | $107 | | Diluted EPS (per share) | $1.04 | | Operating Earnings (in millions) | $107 | | Operating Earnings per Diluted Share (per share) | $1.04 | | Adjusted EBITDA (in millions) | $277 | - The Board of Directors declared a quarterly dividend of **$0.82 per share**, payable on October 15, 2025, to stockholders of record as of September 15, 2025[2](index=2&type=chunk) [Management Commentary and Business Updates](index=1&type=section&id=Management%20Commentary%20and%20Business%20Updates) Management reaffirmed full-year guidance, highlighting $0.6 billion in organic project investment decisions, achieving an investment-grade credit rating, and record Haynesville gathering volumes - The company is performing on track with its full-year plan and made final investment decisions on **$0.6 billion** of organic projects during Q2[3](index=3&type=chunk) - Key business updates for the quarter include: - Final investment decision on the Guardian Pipeline "G3" expansion (~210 MMcf/d) - Finalized investment plan for modernizing new interstate pipelines - Achieved an investment-grade credit rating with all three rating agencies - Set a record high quarterly gathering volume for the Haynesville system[4](index=4&type=chunk) [Financial Guidance](index=1&type=section&id=Financial%20Guidance) DT Midstream reaffirmed 2025 Adjusted EBITDA guidance and provided an early 2026 outlook, noting no reconciliation for forward-looking Adjusted EBITDA due to unpredictability Adjusted EBITDA Guidance | Year | Guidance Range (in billions) | | :--- | :--- | | 2025 (Reaffirmed) | $1.095 - $1.155 | | 2026 (Early Outlook) | $1.155 - $1.225 | - The company does not provide a reconciliation of projected Adjusted EBITDA to GAAP net income because it cannot predict certain components like impairments, acquisition costs, or accounting changes without unreasonable effort[10](index=10&type=chunk) [Financial Tables and Reconciliations (Non-GAAP)](index=8&type=section&id=Financial%20Tables%20and%20Reconciliations%20(Non-GAAP)) This section details reconciliations of GAAP net income to non-GAAP measures like operating earnings, Adjusted EBITDA, and Distributable Cash Flow [Reconciliation of Reported to Operating Earnings](index=8&type=section&id=Reconciliation%20of%20Reported%20to%20Operating%20Earnings) This section reconciles reported net income and EPS to operating earnings and EPS for Q2 and six months 2025 and 2024, showing no adjustments for Q2 2025 Net Income Reconciliation | Period | Reported Net Income (in millions) | Operating Earnings (in millions) | | :--- | :--- | :--- | | Q2 2025 | $107 | $107 | | Six Months 2025 | $215 | $215 | | Six Months 2024 | $193 | $193 | EPS Reconciliation | Period | Reported EPS (per share) | Operating EPS (per share) | | :--- | :--- | :--- | | Q2 2025 | $1.04 | $1.04 | | Six Months 2025 | $2.10 | $2.10 | | Six Months 2024 | $1.97 | $1.97 | [Reconciliation of Net Income to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section reconciles GAAP Net Income to Adjusted EBITDA for consolidated, Pipeline, and Gathering segments, showing Q2 2025 consolidated Adjusted EBITDA at $277 million [Consolidated Adjusted EBITDA](index=10&type=section&id=Consolidated%20Adjusted%20EBITDA) This sub-section presents the reconciliation of consolidated net income to Adjusted EBITDA for Q1, Q2, and six months of 2025 and 2024 Consolidated Adjusted EBITDA | Period | Net Income (in millions) | Adjusted EBITDA (in millions) | | :--- | :--- | :--- | | Q2 2025 | $107 | $277 | | Q1 2025 | $108 | $280 | | Six Months 2025 | $215 | $557 | | Six Months 2024 | $193 | $493 | [Pipeline Segment Adjusted EBITDA](index=11&type=section&id=Pipeline%20Segment%20Adjusted%20EBITDA) This sub-section details the reconciliation of net income to Adjusted EBITDA specifically for the Pipeline segment across various periods Pipeline Segment Adjusted EBITDA | Period | Net Income (in millions) | Adjusted EBITDA (in millions) | | :--- | :--- | :--- | | Q2 2025 | $93 | $194 | | Q1 2025 | $92 | $197 | | Six Months 2025 | $185 | $391 | | Six Months 2024 | $145 | $309 | [Gathering Segment Adjusted EBITDA](index=12&type=section&id=Gathering%20Segment%20Adjusted%20EBITDA) This sub-section provides the reconciliation of net income to Adjusted EBITDA for the Gathering segment for Q1, Q2, and six months of 2025 and 2024 Gathering Segment Adjusted EBITDA | Period | Net Income (in millions) | Adjusted EBITDA (in millions) | | :--- | :--- | :--- | | Q2 2025 | $14 | $83 | | Q1 2025 | $16 | $83 | | Six Months 2025 | $30 | $166 | | Six Months 2024 | $48 | $184 | [Reconciliation of Net Income to Distributable Cash Flow (DCF)](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Distributable%20Cash%20Flow%20(DCF)) This section reconciles Net Income to Distributable Cash Flow (DCF), a non-GAAP measure, showing Q2 2025 DCF at $157 million and $407 million for the first six months of 2025 Distributable Cash Flow | Period | Net Income (in millions) | Distributable Cash Flow (in millions) | | :--- | :--- | :--- | | Q2 2025 | $107 | $157 | | Q1 2025 | $108 | $250 | | Six Months 2025 | $215 | $407 | | Six Months 2024 | $193 | $387 | [Disclosures and Company Information](index=2&type=section&id=Disclosures%20and%20Company%20Information) This section provides an overview of DT Midstream, explains non-GAAP financial measures, and includes forward-looking statements [About DT Midstream](index=2&type=section&id=About%20DT%20Midstream) DT Midstream is a Detroit-based owner and operator of natural gas infrastructure across North America, committed to net-zero greenhouse gas emissions by 2050 - The company owns and operates a comprehensive array of natural gas infrastructure, providing wellhead-to-market services for a diverse customer base[6](index=6&type=chunk) - DT Midstream has a stated goal of transitioning to **net-zero greenhouse gas emissions by 2050**, with an interim target of a **30% reduction by 2030**[6](index=6&type=chunk) [Explanation of Non-GAAP Financial Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP measures like Operating Earnings, Adjusted EBITDA, and DCF, which provide a clearer view of operational performance and industry comparison - Operating Earnings represent earnings from ongoing operations, excluding non-recurring items, serving as the primary performance measure for external communications[7](index=7&type=chunk) - Adjusted EBITDA is used to understand operating performance unaffected by interest, taxes, depreciation, amortization, and non-routine charges, facilitating comparison with industry peers[8](index=8&type=chunk) - Distributable Cash Flow (DCF) is a key metric to estimate cash generated by assets after servicing debt, taxes, and maintenance capital, available for dividends or growth[9](index=9&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor statement regarding forward-looking statements, noting they are subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking statements relate to future performance, plans, and strategies, identified by words like "believe," "expect," "guidance," and "outlook"[11](index=11&type=chunk)[12](index=12&type=chunk) - Actual results may differ materially from projections due to various factors, including economic changes, supply chain disruptions, geopolitical events, and regulatory changes[13](index=13&type=chunk) - The company disclaims any obligation to update forward-looking statements and advises against undue reliance on them[14](index=14&type=chunk)[15](index=15&type=chunk)

Core Viewpoint - Wall Street anticipates flat earnings for DT Midstream in the upcoming quarter, with earnings expected to be $0.98 per share, unchanged from the previous year, while revenues are projected to increase by 22.6% to $299.03 million [3][11]. Earnings Expectations - The earnings report is set to be released on July 31, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 1.14% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +0.41% for DT Midstream, suggesting a likelihood of beating the consensus EPS estimate [11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. Historical Performance - In the last reported quarter, DT Midstream was expected to earn $1.07 per share but reported $1.06, resulting in a surprise of -0.93% [12]. - Over the past four quarters, the company has surpassed consensus EPS estimates two times [13]. Industry Context - National Fuel Gas, another player in the oil and gas sector, is expected to report earnings of $1.5 per share, reflecting a year-over-year increase of 51.5%, with revenues projected to rise by 47.8% to $617.15 million [17][18].

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 ...