• Community giving and volunteer hours per employee is leading among midstream peers 20 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 ...

DT Midstream, Inc. (NYSE:DTM) Q2 2024 Earnings Conference Call July 30, 2024 9:00 AM ET Company Participants Todd Lohrmann - Director, Investor Relations David Slater - President and Chief Executive Officer Jeff Jewell - Chief Vice President and Chief Financial Officer Conference Call Participants Jeremy Tonet - JP Morgan Michael Blum - Wells Fargo John Mackay - Goldman Sachs Keith Stanley - Wolfe Research Spiro Dounis - Citi Sunil Sibal - Seaport Global Securities Robert Mosca - Mizuho Securities Operator ...

[PART I — FINANCIAL INFORMATION](index=9&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the periods ended June 30, 2024, and 2023 [Consolidated Financial Statements (Unaudited)](index=9&type=section&id=DT%20Midstream%20Consolidated%20Financial%20Statements%20(Unaudited)) Financial statements show increased revenues and net income, with stable total assets and increased cash from operations Consolidated Statements of Operations (Unaudited) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | (millions, except per share amounts) | **2024** | **2023** | **2024** | **2023** | | **Operating revenues** | $244 | $224 | $484 | $444 | | **Operating Income** | $130 | $117 | $254 | $227 | | **Net Income** | $100 | $94 | $200 | $178 | | **Net Income Attributable to DT Midstream** | $96 | $91 | $193 | $172 | | **Diluted Earnings per Common Share** | $0.98 | $0.93 | $1.97 | $1.76 | Consolidated Statements of Financial Position (Unaudited) | | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | (millions) | | | | **Total Current Assets** | $256 | $272 | | **Total Assets** | $8,986 | $8,982 | | **Total Current Liabilities** | $306 | $434 | | **Long-Term Debt, net** | $3,068 | $3,065 | | **Total Liabilities** | $4,649 | $4,702 | | **Total Equity** | $4,337 | $4,280 | Consolidated Statements of Cash Flows (Unaudited) | | Six Months Ended June 30, | | :--- | :--- | | (millions) | **2024** | **2023** | | **Net cash from operating activities** | $406 | $389 | | **Net cash from (used for) investing activities** | ($143) | ($31) | | **Net cash from (used for) financing activities** | ($246) | ($374) | | **Net Increase (Decrease) in Cash** | $17 | ($16) | | **Cash and Cash Equivalents at End of Period** | $73 | $45 | [Notes to Consolidated Financial Statements (Unaudited)](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations supporting the financial statements, including accounting policies and segment data [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, strategic objectives, liquidity, and segment results - The company's strategy is focused on **disciplined capital deployment**, capitalizing on asset integration, pursuing economically attractive opportunities, and growing cash flows through long-term firm revenue contracts[112](index=112&type=chunk) - DT Midstream is executing on its goal to achieve **net zero carbon emissions by 2050** and intends to develop low carbon business opportunities[111](index=111&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Operating revenues and net income grew year-over-year, driven primarily by the Pipeline segment's performance Consolidated Financial Results Summary | | Six Months Ended June 30, | | :--- | :--- | | (millions, except per share amounts) | **2024** | **2023** | | **Operating revenues** | $484 | $444 | | **Net Income Attributable to DT Midstream** | $193 | $172 | | **Diluted Earnings per Common Share** | $1.97 | $1.76 | Net Income by Segment (Six Months Ended) | Segment | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | (millions) | | | | **Pipeline** | $145 | $121 | | **Gathering** | $48 | $51 | | **Total** | $193 | $172 | [Pipeline Segment Analysis](index=29&type=section&id=Pipeline) The Pipeline segment's revenue and income increased significantly due to new contracts and system expansions Pipeline Segment Financials (Six Months Ended) | | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | (millions) | | | | **Operating revenues** | $216 | $175 | | **Operating Income** | $137 | $113 | | **Net Income Attributable to DT Midstream** | $145 | $121 | - Revenue growth for the six months ended June 30, 2024 was driven by new contracts and expansion of the **Haynesville System (LEAP) ($30 million)**, higher Stonewall volumes ($6 million), and higher storage rates at Washington 10 Storage Complex ($5 million)[115](index=115&type=chunk) [Gathering Segment Analysis](index=30&type=section&id=Gathering) The Gathering segment's revenues were flat, while net income slightly decreased due to higher expenses Gathering Segment Financials (Six Months Ended) | | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | (millions) | | | | **Operating revenues** | $268 | $269 | | **Operating Income** | $117 | $114 | | **Net Income Attributable to DT Midstream** | $48 | $51 | - Operation and maintenance expense for the six months ended June 30, 2024 **decreased by $18 million**, primarily due to a $9 million reduction in Appalachia Gathering environmental contingent liabilities and $10 million in lower costs at Blue Union Gathering[122](index=122&type=chunk) - Depreciation and amortization expense **increased by $12 million** for the six months ended June 30, 2024, due to new assets placed into service at Blue Union Gathering and Ohio Utica Gathering[123](index=123&type=chunk) [Capital Resources and Liquidity](index=31&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains a strong liquidity position and expects to continue its annual dividend growth of 5% to 7% - As of June 30, 2024, the company had approximately **$987 million of available liquidity**, comprising cash and cash equivalents and available borrowings under its Revolving Credit Facility[138](index=138&type=chunk) - The company has a long-term **dividend growth target of 5% to 7% annually**[139](index=139&type=chunk) - Net cash from operating activities **increased by $17 million to $406 million** for the six months ended June 30, 2024, compared to the prior year period[131](index=131&type=chunk) [Capital Investments](index=33&type=section&id=Capital%20Investments) Capital expenditures totaled $180 million for H1 2024, with a full-year forecast of $380 million to $435 million - Total capital expenditures for the six months ended June 30, 2024, were **$180 million**[142](index=142&type=chunk) - The company forecasts total capital expenditures for the full year 2024 to be approximately **$380 million to $435 million**[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has limited commodity price risk but faces credit risk from a key customer and interest rate risk - The company's operations have **limited direct exposure to natural gas price risk** due to the use of long-term transportation, gathering, and storage contracts[153](index=153&type=chunk) - A significant portion of revenues comes from a key customer, **Southwestern Energy**, creating credit risk concentration[155](index=155&type=chunk) - As of June 30, 2024, the company had **$469 million in floating-rate debt**, exposing it to interest rate risk from changes in SOFR[157](index=157&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2024[160](index=160&type=chunk) - **No changes occurred** in the company's internal control over financial reporting during the quarter ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, these controls[161](index=161&type=chunk) [PART II — OTHER INFORMATION](index=36&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Pending legal matters are not expected to have a material adverse effect on the company's financial condition - For details on legal proceedings, the report refers to **Note 10, 'Commitments and Contingencies'** in the financial statements[162](index=162&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the detailed risk factor discussion in the company's 2023 Annual Report on Form 10-K - The report refers readers to the **'Risk Factors' section in the company's 2023 Annual Report on Form 10-K** for a discussion of significant risks[163](index=163&type=chunk) [Mine Safety Disclosure](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) Disclosures for the company's sand mining facility are filed as Exhibit 95.1 to this Form 10-Q - Information regarding mine safety violations and other regulatory matters for the company's sand mining facility is filed as **Exhibit 95.1**[164](index=164&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading plans during the quarter - **No directors or executive officers** adopted, modified, or terminated any Rule 10b5-1(c) trading plans during the three months ended June 30, 2024[165](index=165&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data files - A list of all exhibits filed or furnished with the Form 10-Q is provided, including **certifications under Sections 302 and 906**, and Mine Safety Disclosures[166](index=166&type=chunk)

The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. DT Midstream (DTM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question. DT Midstream is one of 248 companies in the Oils-Energy group. The Oils-Energ ...

Core Points - DT Midstream reported a net income of $96 million, or $0.98 per diluted share, for the second quarter of 2024, with Operating Earnings also at $96 million [19][28] - The company declared a dividend of $0.735 per share, payable on October 15, 2024, to stockholders of record as of September 16, 2024 [1] - Adjusted EBITDA for the quarter was $248 million, reflecting the company's strong operational performance [19][40] Financial Performance - For the six months ended June 30, 2024, net income attributable to DT Midstream was $193 million, compared to $172 million for the same period in 2023 [39] - Operating Earnings for the same period were $193 million, up from $172 million year-over-year [39] - The company’s Adjusted EBITDA for the six months ended June 30, 2024, was $493 million, compared to $449 million for the same period in 2023 [40] Business Updates - The company is progressing on its construction projects and has executed new agreements to connect three producers in East Texas to its Haynesville System [20] - DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, with a goal of achieving a 30% reduction in carbon emissions by 2030 [5] - The LEAP Phase 3 expansion project was placed in-service early and on budget, indicating effective project management [20] Operational Metrics - The company uses Operating Earnings as a primary performance measurement, excluding non-recurring items and certain adjustments [6][22] - EBITDA from equity method investees for the second quarter was $67 million, down from $75 million in the previous quarter [41] - The company reported a total of $160 million in Distributable Cash Flow for the second quarter of 2024 [38]

About DT Midstream Why DT Midstream Uses Operating Earnings, Adjusted EBITDA and Distributable Cash Flow 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 Midstre ...

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. "We had another strong quarter, and the business is performing on track with our full-year plan," said David Slater, President and CEO. ...

What's Driving the Outperformance? Have you been paying attention to shares of DT Midstream (DTM) ? Shares have been on the move with the stock up 7.1% over the past month. The stock hit a new 52-week high of $75.73 in the previous session. DT Midstream has gained 37.7% since the start of the year compared to the 5.4% move for the Zacks Oils-Energy sector and the 7.9% return for the Zacks Oil and Gas - Integrated - United States industry. For the current fiscal year, DT Midstream is expected to post earning ...

Below, we take a look at DT Midstream (DTM) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a ...

Wall Street expects flat earnings compared to the year-ago quarter on higher revenues when DT Midstream (DTM) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of bu ...