DT Midstream(US:DTM)2025-07-31 14:02Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $277 million for the second quarter, a decrease of $3 million from the previous quarter [13] - Committed capital for 2025 and 2026 has increased to approximately $385 million and $230 million respectively, reflecting new growth projects reaching FID, an increase of approximately $150 million from the first quarter disclosure [14][16] - The company was upgraded to investment grade by both Moody's and S&P, solidifying its status as a full investment grade entity [17] Business Line Data and Key Metrics Changes - The pipeline segment results were $3 million lower than the first quarter, driven by a planned rate step down on the Guardian pipeline and seasonally lower EBITDA from interstate and joint venture pipelines [13] - Total gathering volume for the Haynesville averaged 1.74 Bcf per day, an all-time record throughput for a quarter and a 16% increase over the second quarter of 2024 [13] - In the Northeast, volumes averaged 1.17 Bcf per day, a decrease from the first quarter due to maintenance and timing of producer activity [14] Market Data and Key Metrics Changes - The company forecasts a 16 Bcf per day increase in LNG free gas demand through 2035 from facilities that have access to its Haynesville system [10] - The PGM auction cleared at over $329 per megawatt day, a 22% increase from last year's auction, indicating significant power demand growth [10] - The company expects demand growth of more than 40% over the next twenty years in the PJM and MISO electric markets [11] Company Strategy and Development Direction - The company is focused on executing its $2.3 billion organic project backlog, with $1.1 billion already reaching FID [19] - The current federal administration is creating a more favorable environment for energy infrastructure projects, streamlining approval processes [11][12] - The company is exploring additional modernization investment opportunities across its interstate assets to ensure reliability and maintain high service levels [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming the 2025 adjusted EBITDA guidance range and the early outlook for 2026 [5] - The company sees a positive shift in the Haynesville as producers begin to respond to LNG demand [9] - Management highlighted strong power demand growth driven by electrification, onshoring of manufacturing, and demand for AI computing and data centers [10] Other Important Information - The company announced a second 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 [18] - The company is actively pursuing greenfield storage opportunities in response to LNG demand ramp [110] Q&A Session Summary Question: Insights on New York's power generation and Millennium expansion - Management noted strong power demand in New York, with both plants served by Millennium operating at high load factors, indicating a need for additional generation [24] - Positive regulatory changes are being observed, with a recognition of the need for additional infrastructure in the state [25] Question: Haynesville activity and producer responses - Management indicated that private producers are ramping up activity in the Haynesville, with expectations for public producers to follow as pricing and demand increase [26][28] Question: Data center lateral investments - Management highlighted strong power demand growth in PJM and MISO, with ongoing utility scale expansions driven by this demand [31] Question: CapEx for 2025 and spending expectations - Management expects to land within the guidance range for CapEx, with a ramp in spending anticipated in the second half of the year [37] Question: Gas sourcing for Guardian project and upstream expansions - Management confirmed that gas will be sourced at the Joliet hub, with discussions ongoing about upstream expansions [41][43] Question: LNG market dynamics and competitive landscape - Management noted favorable short-term conditions for LEAP, with ongoing expansions to enhance delivery point connectivity into the LNG header system [46][48] Question: Bolt-on acquisition strategy - Management remains open to bolt-on opportunities that align with their core strategy of growing pipeline segments with high-quality counterparties [55][57] Question: Impact of the new federal administration on permitting - Management described the current administration as a positive influence, working to reduce friction in large-scale infrastructure investments [60][61] Question: 2026 EBITDA guidance and project FID timing - Management reaffirmed confidence in the 2026 early outlook, indicating that project FIDs are occurring as expected [64] Question: Expansion capacity on Nexus and Midwest utilities - Management discussed the potential for expansion on Nexus, with significant capacity available for future growth [78][79]