DT Midstream(DTM) - 2023 Q2 - Quarterly Report

Financial Performance - Operating revenues for Q2 2023 were $224 million, a slight decrease of 1.3% compared to $227 million in Q2 2022[23] - Net income attributable to DT Midstream for Q2 2023 was $91 million, unchanged from Q2 2022, resulting in basic earnings per share of $0.93[23] - The company reported operating income of $117 million for Q2 2023, down from $137 million in Q2 2022, reflecting a decrease of 14.6%[23] - Comprehensive income attributable to DT Midstream for Q2 2023 was $91 million, slightly down from $92 million in Q2 2022[25] - Net income for the six months ended June 30, 2023, was $178 million, consistent with the same period in 2022[32] - The net income for the six months ended June 30, 2023, was $201 million, compared to $184 million for the same period in 2022, reflecting a growth of approximately 9.24%[51] - Total operating revenues for the three months ended June 30, 2023, were $224 million, slightly down from $227 million in Q2 2022[61] - Total net income attributable to DT Midstream for the three months ended June 30, 2023, was $91 million, unchanged from the same period in 2022[98] Assets and Liabilities - Total assets as of June 30, 2023, were $8.726 billion, a decrease from $8.833 billion at the end of 2022[28] - Total liabilities decreased to $4.531 billion as of June 30, 2023, from $4.679 billion at the end of 2022[30] - The company's total liabilities as of June 30, 2023, were $6 million, down from $8 million at the end of 2022[45] - The company’s investments in equity method investees decreased to $1.789 billion from $2.200 billion at the end of 2022[28] - DT Midstream's investments in equity method investees totaled $1,789 million as of June 30, 2023, compared to $2,200 million as of December 31, 2022[49] Cash and Cash Equivalents - Cash and cash equivalents decreased to $45 million as of June 30, 2023, from $61 million at the end of 2022[28] - Cash and cash equivalents at the end of the period decreased to $45 million from $345 million at the end of the previous year[32] - The company reported a net increase in cash and cash equivalents of $16 million, a decrease from a $213 million increase in the prior year[32] Dividends and Stockholder Equity - Dividends paid on common stock increased to $129 million compared to $120 million in the same period last year[32] - The company declared dividends of $0.69 per common share for the period[34] - Total stockholders' equity increased to $4,195 million as of June 30, 2023, up from $4,165 million at the end of the previous quarter[34] - Cash dividends declared for the quarter ended June 30, 2023, were $0.69 per share, totaling $67 million[75] Debt and Financial Ratios - Long-term debt remained stable at $3.062 billion as of June 30, 2023, compared to $3.059 billion at the end of 2022[30] - DT Midstream's long-term debt as of June 30, 2023, was $3,062 million, with no scheduled debt maturities until 2028[84] - The debt service coverage ratio as of June 30, 2023, was 8.6 to 1, indicating strong compliance with financial covenants[89] - The company has a total availability of $1,000 million under its Revolving Credit Facility, with net availability of $884 million as of June 30, 2023[86] Segment Performance - For the three months ended June 30, 2023, the Pipeline segment generated operating revenues of $90 million, an increase from $83 million in the same period of 2022[98] - The Gathering segment reported operating revenues of $134 million for the three months ended June 30, 2023, down from $144 million in the prior year[98] - Net income attributable to DT Midstream for the Pipeline segment was $64 million for the three months ended June 30, 2023, compared to $52 million in the same period of 2022[98] - The Gathering segment's net income was $27 million for the three months ended June 30, 2023, down from $39 million in the prior year[98] Other Financial Information - The effective tax rate for the three months ended June 30, 2023, was 24%, compared to 26% for the same period in 2022[77] - The carrying amount of goodwill remained stable at $473 million as of June 30, 2023, with no impairments noted[60] - DT Midstream accrued contingent liabilities of $19 million for future slope restoration expenditures as of June 30, 2023, and December 31, 2022[95] - The company recognized contract liabilities of $59 million as of June 30, 2023, an increase from $32 million at the beginning of the year[64] - Future revenue expected to be recognized from contract liabilities includes $28 million for 2028 and thereafter[65] - Stock-based compensation rose to $10 million from $8 million year-over-year[32] - Earnings from equity method investees showed a loss of $91 million, compared to a loss of $71 million in the previous year[32] - Inter-segment billings were not significant for the three and six months ended June 30, 2023, indicating stable internal transactions[98]