DT Midstream(US:DTM)2023-10-31 16:00Financial Performance - Operating revenues for Q3 2023 were $234 million, slightly down from $235 million in Q3 2022, while revenues for the nine months ended September 30, 2023, were $678 million, compared to $677 million for the same period in 2022[22]. - Net income attributable to DT Midstream for Q3 2023 was $91 million, a decrease of 19.5% from $113 million in Q3 2022; for the nine months ended September 30, 2023, net income was $263 million, down from $285 million in the same period last year[22]. - Basic earnings per share for Q3 2023 were $0.94, compared to $1.17 in Q3 2022, reflecting a 19.7% decline; diluted earnings per share were $0.94 for Q3 2023, down from $1.16 in Q3 2022[22]. - Net income for the nine months ended September 30, 2023, was $272 million, a decrease of 7.5% compared to $294 million in the same period of 2022[31]. - For the nine months ended September 30, 2023, net income attributable to DT Midstream was $263 million, down from $285 million in 2022, representing a decline of about 7.7%[75]. - The effective tax rate for the three months ended September 30, 2023, was 26%, significantly higher than 6% for the same period in 2022[77]. Operating Income and Expenses - Operating income for Q3 2023 was $124 million, up from $121 million in Q3 2022, while operating income for the nine months ended September 30, 2023, was $351 million, compared to $362 million in the same period last year[22]. - Cash paid for interest increased to $76 million, up from $59 million in the previous year, reflecting higher financing costs[31]. - Stock-based compensation expenses increased to $15 million for the nine months ended September 30, 2023, compared to $13 million in the same period of 2022[31]. Assets and Liabilities - Total assets as of September 30, 2023, were $8.862 billion, a slight increase from $8.833 billion as of December 31, 2022[27]. - Long-term debt remained stable at $3.064 billion as of September 30, 2023, compared to $3.059 billion at the end of 2022[29]. - The company’s total liabilities as of September 30, 2023, were $4.641 billion, a decrease from $4.679 billion at the end of 2022[29]. - The company reported a decrease in investments in equity method investees to $1.782 billion as of September 30, 2023, down from $2.200 billion at the end of 2022[27]. - The balance of retained earnings as of September 30, 2023, was $608 million, reflecting an increase from $547 million at the end of 2022[33]. Cash Flow and Dividends - Net cash and cash equivalents from operating activities increased to $614 million, up 7% from $574 million year-over-year[31]. - Total dividends paid on common stock for the nine months was $196 million, compared to $182 million in the same period last year, marking an increase of 7.7%[31]. - DT Midstream declared cash dividends of $0.69 per share for the quarter ended September 30, 2023, totaling $67 million[75]. - Cash and cash equivalents at the end of the period decreased to $30 million from $355 million at the beginning of the period, reflecting a decline in liquidity[31]. Capital Expenditures and Investments - Plant and equipment expenditures rose significantly to $622 million, compared to $173 million in the prior year, indicating a substantial increase in capital investment[31]. - The company recognized $152 million in dividends from equity method investees, an increase from $125 million in the prior year, indicating improved performance from joint ventures[31]. - The company received a distribution of $371 million from NEXUS in May 2023, which was used to repay borrowings under the Revolving Credit Facility[50]. Financial Ratios and Covenants - As of September 30, 2023, DT Midstream maintained a debt service coverage ratio of 8.3 to 1, a consolidated net leverage ratio of 2.4 to 1, and an interest coverage ratio of 7.8 to 1, all in compliance with financial covenants[90]. - The company has a total availability of $1,000 million under its Revolving Credit Facility, with net availability of $859 million after accounting for outstanding borrowings and letters of credit[86]. Segment Performance - The Pipeline segment generated operating revenues of $96 million for the three months ended September 30, 2023, compared to $87 million in the prior year, reflecting a 10% increase[99]. - The Gathering segment reported operating revenues of $138 million for the three months ended September 30, 2023, down from $148 million in the same period of 2022, representing a decrease of 7%[99]. - The Pipeline segment's net income for the three months ended September 30, 2023, was $64 million, down from $70 million in the prior year, a decrease of approximately 9%[99]. - The Gathering segment's net income for the three months ended September 30, 2023, was $27 million, down from $43 million in the same period of 2022, reflecting a decline of 37%[99].