Second Quarter 2022 Earnings Call
August 3, 2022
DT Midstream
Safe Harbor Statement
This presentation contains statements which, to the extent
they are not statements of historical or present fact,
constitute "forward-looking statements" under the
securities laws. These forward-looking statements are
intended to provide management's current expectations or
plans for our future operating and financial performance,
business prospects, outcomes of regulatory proceedings,
market conditions, and other matters, based on what we
believe to be reasonable assumptions and on information
currently available to us.
Forward-looking statements can be identified by the use of
words such as "believe," "expect,"
"expectations," "plans," "strategy,"
"prospects," "estimate,"
"project," "target," "anticipate,"
"will," "should," "see,"
"guidance," "outlook," "confident"
and other words of similar meaning. The absence of such
words, expressions or statements, however, does not mean
that the statements are not forward-looking. In particular,
express or implied statements relating to future earnings,
cash flow, results of operations, uses of cash, tax rates
and other measures of financial performance, future actions,
conditions or events, potential future plans, strategies or
transactions of DT Midstream, and other statements that are
not historical facts, are forward-looking statements.
Forward-looking statements are not guarantees of future
results and conditions, but rather are subject to numerous
assumptions, risks, and uncertainties that may cause actual
future results to be materially different from those
contemplated, projected, estimated, or budgeted. Many
factors may impact forward-looking statements of DT
Midstream including, but not limited to, the following:
changes in general economic conditions; competitive
conditions in our industry; global supply chain disruptions;
actions taken by third-party operators, processors,
transporters and gatherers; changes in expected production
from Southwestern Energy Company and/or its affiliates,
Antero Resources Corporation and/or its affiliates and other
third parties in our areas of operation; demand for natural
gas gathering, transmission, storage, transportation and
water services; the availability and price of natural gas to
the consumer compared to the price of alternative and
competing fuels; competition from the same and alternative
energy sources; our ability to successfully implement our
business plan; our ability to complete organic growth
projects on time and on budget; our ability to complete
acquisitions; the price and availability of debt and equity
financing; restrictions in our existing and any future
credit facilities and indentures; energy efficiency and
technology trends; changing laws regarding cyber security
and data privacy and any cyber security threat or event;
operating hazards, environmental risks, and other risks
incidental to gathering, storing and transporting natural
gas; changes in environmental laws, regulations or
enforcement policies, including laws and regulations
relating to climate change and greenhouse gas emissions;
natural disasters, adverse weather conditions, casualty
losses and other matters beyond our control; the impact of
outbreaks of illnesses, epidemics and pandemics, including
the COVID-19 pandemic and the economic effects of the
pandemic; the ongoing conflict between Russia and Ukraine,
including resulting commodity price volatility and risk of
cyber-based attacks; increases in interest rates; the impact
of inflation on our business; labor relations and markets,
including the ability to attract, hire and retain key
employee and contract personnel; large customer defaults;
changes in tax status, as well as changes in tax rates and
regulations; intent to develop low carbon business
opportunities and deploy greenhouse gas reducing
technologies; the effects of existing and future laws and
governmental regulations; changes in insurance markets
impacting costs and the level and types of coverage
available; the timing and extent of changes in commodity
prices; the suspension, reduction or termination of our
customers' obligations under our commercial agreements;
disruptions due to equipment interruption or failure at our
facilities, or third-party facilities on which our business
is dependent; the effects of future litigation; the
qualification of the spin-off of DT Midstream from DTE
Energy ("the Spin-Off") as a tax-free tax-free
distribution; the allocation of tax attributes from DTE
Energy in accordance with the agreement that governs the
respective rights, responsibilities and obligations of DTE
Energy and DT Midstream after the Spin-Off with respect to
all tax matters; our ability to achieve the benefits that we
expect to achieve as an independent publicly traded company;
and the risks described in our Annual Report on Form 10-K
for the year ended December 31, 2021 and our reports and
registration statements filed from time to time with the
SEC.
The above list of factors is not exhaustive. New factors
emerge from time to time. We cannot predict what factors may
arise or how such factors may cause actual results to vary
materially from those stated in forward-looking statements,
see the discussion under the section entitled "Risk
Factors" in our Annual Report for the year ended
December 31, 2021, filed with the SEC on Form 10-K and any
other reports filed with the SEC. Given the uncertainties
and risk factors that could cause our actual results to
differ materially from those contained in any
forward-looking statement, you should not put undue reliance
on any forward-looking statements.
Any forward-looking statements speak only as of the date on
which such statements are made. We are under no obligation
to, and expressly disclaim any obligation to, update or
alter our forward-looking statements, whether as a result of
new information, subsequent events or otherwise.
DT Midstream 2
Second quarter 2022 accomplishments
Strong financial performance
Delivered net income of $91 million and adjusted EBITDA1 of
$205 million driven by strong growth in the pipeline segment
Firmly on track to achieve 2022 guidance with year-to-date
performance ahead of plan High confidence in 2023 early
outlook Reached final investment decision on phase 2
Haynesville system expansion 400 MMcf/d incremental LEAP
expansion
Combined with phase 1 expansion, LEAP capacity will increase
by 70%, from 1.0 Bcf/d to 1.7 Bcf/d Advancing commercial
discussions for phase 3 Haynesville system expansion
Advancing energy transition and ESG initiatives Published
inaugural sustainability report Advancing carbon capture and
sequestration (CCS) project in Louisiana; expect to file
Class VI permit application by the end of the year
1. Definition and reconciliation of adjusted EBITDA
(non-GAAP) to net income included in the appendix DT
Midstream Washington 10 Storage Field
3
Celebrating our 1-year anniversary after a successful
first year
NYSE OPENING BELL*
DTM LISTED NYSE
DT Midstream
NEW YORK STOCK EXCHANGE
Executing on growth and value creating opportunities
across our attractive footprint
Key accomplishments
Increasing LEAP capacity by 70%
Increasing Blue Union1 capacity by 25%
Expanding Appalachia Gathering System2 by over 40%
Contractual expansion of Stonewall Pipeline for 15% system
capacity Executed new long-term contracts and renewals on
Millennium and NEXUS for over 20% of system capacity
Top-rated company out of 63 total participants in MASTIO
midstream customer service study3 Converting Michigan
Gathering asset to intrastate pipeline with 20-year contract
1. Includes gathering expansion of 500 MMcf/d and treating
expansion of 400 MMcf/d 2. Includes contractual expansion
for ~25% of system capacity and ~20% mainline capacity
expansion
3. Results of the MASTIO 8th edition industry-wide Midstream
Customer Value / Loyalty Benchmarking Study DT Midstream 4
Strong quarterly increase in EBITDA - on track with
full-year guidance
Segment adjusted EBITDA1
(millions)
$191 $205 $105 $116 $86 $89
Q1 2022 Q2 2022
Pipeline Gathering
Strong second quarter growth in both segments
Pipeline
• Stonewall expansion placed in-service in May
• Higher revenues on LEAP through increased
utilization• Favorable negotiation of one-time
settlement with a supplier in Q2 2022
Gathering
Higher revenues on Blue Union
1. Definition and reconciliation of adjusted EBITDA
(non-GAAP) to net income included in the appendix DT
Midstream 5
Quarterly financial results Three months ended (millions,
except EPS) June 30, 2022 March 31, 2022 Key drivers •
Adjusted EBITDA1 $205 $191 Strong pipeline segment results
• Pipeline segment $116 $105 Stonewall expansion
in-service and higher LEAP revenues • Gathering
segment $89 $86 Higher revenues on Blue Union Operating
Earnings2 $79 $81 Operating EPS2 $0.80 $0.84 •
Distributable cash flow3 $139 $182 Timing of interest
payments for senior notes Growth capital4 $33 $17
Maintenance capital $4 $3
1. Definition and reconciliation of adjusted EBITDA
(non-GAAP) to net income included in the appendix 2.
Definition and reconciliation of operating earnings and
operating earnings per share (non-GAAP) to reported earnings
included in the appendix; EPS calculation based on average
share count of approximately 97 million shares outstanding -
diluted 3. Definition and reconciliation of distributable
cash flow (non-GAAP) included in the appendix 4. Growth
capital includes contribution to equity method investees
DT Midstream 6
Strong confidence in achieving 2022 guidance and 2023 early
outlook New investments and existing business platforms
support incremental growth • Year-to-date 2022
performance ahead of plan creating high confidence in full
year guidance
• New gathering expansion projects to be placed
in-service starting in Q3 2022
Adjusted EBITDA1
(millions)
850 800 750 700 650 600 550 500
5% - 7% CAGR
$710 - $750 $770 - $810 $810 - $850
2021 original guidance 2022 guidance 2023 early outlook
1. Definition and reconciliation of adjusted EBITDA
(non-GAAP) to net income included in the appendix DT
Midstream 7
Reached final investment decision on Haynesville system
phase 2 expansion; expanding LEAP from 1.0 Bcf/d to 1.7
Bcf/d
Capital efficient, lower-risk expansion provides timely
access to growing LNG demand Phase 1: Increasing LEAP
capacity by 30% and Blue Union gathering capacity by 25%
• On-track and on-budget; critical long-lead equipment
has been ordered • Project will provide ~0.5 Bcf/d
incremental gathering and treating capacity1 and ~0.3 Bcf/d
of incremental LEAP capacity to Gillis Phase 2: Increasing
LEAP capacity by 40%2 • Expansion includes 0.4 Bcf/d
of incremental LEAP capacity • Expected in-service in
Q1 2024
Active commercial discussions underway for phase 3 expansion
LEAP can be further expanded to ~3.0 Bcf/d with looping and
compression Haynesville / LA Gulf Coast Texas Louisiana
Mississippi Increasing LEAP capacity by 70% Gillis Hub
Driftwood
Lake Charles LNG
Cameron LNG
Henry Hub
Golden Pass LNG
Sabine Pass LNG
CP2
Calcasieu Pass
Plaquemines
DTM pipeline assets LNG facilities
DTM treating plants
Operational
Expansion build
Under development
New electric compression
First-of-its-kind carbon neutral "wellhead to water"
service offering
1. Includes 0.5 Bcf/d gathering capacity expansion and 0.4
Bcf/d treating capacity expansion of Blue Union system 2.
Represents 40% increase from original LEAP capacity of 1.0
Bcf/d
DT Midstream 8
Major growth projects are on track
Contracted growth investments
(new projects in bold)
Project In-service date(s) Status
Pipeline Stonewall expansion Q2 2022 Completed May 2022
Michigan Gathering to intrastate pipeline conversion Q4 2022
On track Haynesville LEAP pipeline expansion – Phase 1
Q4 2023 On track Haynesville LEAP pipeline expansion –
Phase 2 Q1 2024 On track
Gathering Appalachia Gathering System expansion Q3 2022 On
track Appalachia Gathering System expansion - Phase 2 Q4
2023 On track Haynesville Blue Union expansion Q3 2022
– Q1 2024 On track
Proactively mitigating project execution risks
• Critical long-lead equipment has been ordered
• Cost estimates and schedules reflect current supply
chain environment
DT Midstream 9
Over 2.8 Bcf/d of production volumes gathered in Q2 2022
Gathering segment average throughput1
(Bcf/d)
+11%
2.52 2.62 2.91 2.91 2.81
1.23 1.35 1.55 1.57 1.53
1.29 1.27 1.37 1.34 1.28
Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Haynesville Northeast
Overall volume performance consistent with our plan for both
regions • Expansion projects at Blue Union and
Appalachia Gathering System to be placed in-service in Q3
2022 support future volume growth
1. Excludes Michigan gathering
DT Midstream 10
DT Midstream is uniquely positioned to capitalize on
CCS opportunities
Proximity to favorable storage geology
Key components for a successful CCS project
Low CO2 capture cost
Operational expertise
Key criteria intersection of low CO2 capture cost, favorable
storage geology, and operational expertise • DTM
currently operates three treating plants in Louisiana and
has plans to construct two additional plants
– Natural gas treating plants provide low CO2 capture
costs yielding favorable economics under current
45Q tax credit
– Treating plants are proximal to favorable geology
for permanent sequestration
• DTM has significant experience in developing and
operating storage assets
Advancing towards Class VI permit application filing •
Plan to file Class VI permit application by end of year DT
Midstream 11
Committed to operating in an ethical, environmentally
sensitive, and socially responsible manner DT Midstream
Corporate Sustainability Report | 2022
Achieving top-decile methane intensity performance
Gathering segment methane intensity
2020 to 2021
35%
Pipeline segment methane intensity
2020 to 2021
25%
Fostering a strong safety culture
Employee total recordable incident rate
2020 to 2021
21%
Employee lost time incident rate
2020 to 2021
20%
8%
Empowering leaders and serving our communities
Women in leadership positions
2020 to 2021
2,200
Volunteer hours logged in 2021
Link to full report: Corporate Sustainability Report 2022
DT Midstream 12
Clean assets, clean balance sheet, clean story
DT Midstream
Integrated assets in premier dry gas basins serving
key markets
Stable balance sheet with low leverage
Predictable, robust contracted cash flows
Mature environmental, social and governance leadership
DT Midstream 13
Appendix DT Midstream
DTM has significant exposure to growing LNG export demand
Arkansas Mississippi Louisiana Texas
HAYNESVILLE SHALE
Blue Union Gathering
LEAP Lateral
Golden Pass Lake Charles Driftwood Cameron Sabine Pass
CP2 Calcasieu Pass Plaquemines
Gulf Coast LNG corridor
Cove Point LNG
Maryland West Virginia Virginia
MARCELLUS SHALE Appalachia Gathering
Stonewall Lateral
Cove Point
LNG facilities
Operational
Under development
DTM assets currently provide ~2 Bcf/d of access to LNG
export terminals and are well-positioned to serve
growing demand
US LNG exports
(Bcf/d)
+13 Bcf/d
~8 Bcf/d
of Louisiana Gulf Coast area LNG export growth through 20301
24 20 16 12 8 4 0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Sabine Pass
Cameron
Calcasieu Pass
Golden Pass
Plaquemines
Driftwood
Cove Point
Corpus Christi
Freeport
Elba Island
LNG export terminals that can be served via DTM assets
1. Represents growth from annual average level in 2021
Source: Wood Mackenzie
DT Midstream 15
Favorable fundamentals and growth opportunities in both
basins that we serve
Haynesville
• Expanding LEAP from 1.0 Bcf/d to 1.7 Bcf/d; can be
further expanded to 3.0 Bcf/d with looping and
compression
• Gathering and treating expansions serve growing
production
• Growth opportunities driven by strong production
and LNG export demand outlooks
Appalachia
• Constrained takeaway capacity in basin is yielding
favorable contracting for NEXUS
• Stonewall provides critical pathway for gas to
reach LNG exports at Cove Point and Gulf Coast
facilities
• Executing on Appalachia Gathering System expansion
for major customers
Michigan Gathering Ontario, Canada
Michigan Washington 10 Storage Complex
Vector Pipeline Generation Pipeline
Indiana Arkansas Texas Mississippi Louisiana
HAYNESVILLE SHALE
Blue Union Gathering System
LEAP Gathering Lateral Pipeline
Bluestone Gathering Lateral Pipeline
Tioga Gathering System
Susquehanna Gathering System
UTICA SHALE MARCELLUS SHALE Pennsylvania
NEXUS Gas Transmission Pipeline
Ohio
Stonewall Gas Gathering Lateral Pipeline
Appalachia Gathering System
Kentucky West Virginia Virginia Maryland
LNG facilities Operational Under development
DT Midstream 16
Year-to-date financial results
Six months ended
(millions, except EPS) June 30, 2022 June 30, 2021
Adjusted EBITDA1 $396 $384
Pipeline segment $221 $199
Gathering segment $175 $185
Operating Earnings2 $160 $174
Operating EPS2 $1.64 $1.80
Distributable cash flow3 $321 $317
Growth capital4 $50 $53
Maintenance capital $7 $11
1. Definition and reconciliation of adjusted EBITDA
(non-GAAP) to net income included in this appendix 2.
Definition and reconciliation of operating earnings and
operating earnings per share (non-GAAP) to reported
earnings included in this appendix; EPS calculation based
on average share count of approximately 97 million
shares outstanding - diluted
3. Definition and reconciliation of distributable cash flow
(non-GAAP) included in this appendix 4. Growth capital
includes contribution to equity method investees
DT Midstream 17
Financial strength is supported by strong balance sheet with
a weighted average debt maturity of 8 years
Maintaining flexible, well-capitalized balance sheet
• $3.1 billion in long-term debt
– $0.4 billion term loan B due 2028
– $1.1 billion senior notes due 2029
– $1.0 billion senior notes due 2031
– $0.6 billion senior notes due 2032
• $750 million committed revolver1
• $345 million of cash on hand as of June 30, 2022
• Current leverage ratio of 3.6x2 with targeted
ceiling of 4x
• Strategic goal is to achieve a corporate investment
grade rating
• Debt maturity profile
• (billions)
$0.4 $1.1 $1.0 $0.6
8 years - weighted average debt maturity
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Issuer ratings
Capital instruments S&P Moody's Fitch
Senior secured BBB- Baa2 BBB-
Senior unsecured BB+ Ba2 BB+
1. $719 million availability - reflects $750 million RCF
less $31 million of letters of credit issued as of June 30,
2022 2. Represents net debt to trailing twelve months
adjusted EBITDA as of June 30, 2022
DT Midstream 18
Disciplined financial approach
Self-funded investment program
$1.2 - $1.7 billion
• Growth investment range from 2021 - 2025 is driven
by organic opportunities within existing platforms
Strong organic growth
7% - 9% growth
• 2021 adjusted EBITDA1 original guidance to 2022
adjusted EBITDA guidance
Disciplined financial approach
3.6x leverage2
• Long-term debt / adjusted EBITDA ceiling of 4.0x
• No significant near-term debt maturities
2.4x coverage ratio
• Long-term dividend coverage ratio3 floor of 2.0x
• Dividend to grow commensurate with cash flow
Value creation optionality
Growth investment
Durable dividend
Deleverage
1. Definition and reconciliation of adjusted EBITDA
(non-GAAP) to net income included in this appendix 2.
Represents net debt to trailing twelve months adjusted
EBITDA as of June 30, 2022
3. The dividend coverage ratio represents full year 2022
distributable cash flow ("DCF") guidance range
midpoint divided by annualized $0.64/share dividend paid to
investors DT Midstream 19
2022 guidance summary
(millions, except EPS) 2022 Guidance
Adjusted EBITDA1 $770 - $810
Operating Earnings2 $319 - $335
Operating EPS2 $3.30 - $3.46
Distributable Cash Flow3 $575 - $625
Capital Expenditures $350 - $400
Growth Capital4 $320 - $360
Maintenance Capital $30 - $40
1. Definition and reconciliation of adjusted EBITDA
(non-GAAP) to net income included in this appendix 2.
Definition and reconciliation of operating earnings and
operating earnings per share (non-GAAP) to reported
earnings included in this appendix; EPS calculation based
on average share count of approximately 97 million
shares outstanding – diluted
3. Definition and reconciliation of distributable cash flow
(non-GAAP) included in this appendix 4. Growth capital
includes contribution to equity method investees
DT Midstream 20
Adjusted EBITDA and distributable cash flow (DCF) are
non-GAAP measures 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 our
proportional share of net income from our equity method
investees (excluding taxes, depreciation and amortization),
and to exclude certain items we consider non-routine. We
believe Adjusted EBITDA is useful to us and external users
of our financial statements in understanding our operating
results and the ongoing performance of our underlying
business because it allows our management and investors to
have a better understanding of our actual operating
performance unaffected by the impact of interest, taxes,
depreciation, amortization and non-routine charges noted in
the table below. We believe the presentation of Adjusted
EBITDA is meaningful to investors because it is frequently
used by analysts, investors and other interested parties in
our industry to evaluate a company's operating
performance without regard to items excluded from the
calculation of such measure, which can vary substantially
from company to company depending on accounting methods,
book value of assets, capital structure and the method by
which assets were acquired, among other factors. We use
Adjusted EBITDA to assess our performance by reportable
segment and as a basis for strategic planning and
forecasting.
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 method investees to, Net Income
Attributable to DT Midstream. Maintenance capital investment
is defined as the total capital expenditures used to
maintain or preserve assets or fulfill contractual
obligations that do not generate incremental earnings. We
believe DCF is a meaningful performance measurement because
it is useful to us and external users of our financial
statements in estimating the ability of our assets to
generate cash earnings after servicing our debt, paying cash
taxes and making maintenance capital investments, which
could be used for discretionary purposes such as common
stock dividends, retirement of debt or expansion capital
expenditures.
Adjusted EBITDA and DCF are not measures calculated in
accordance with GAAP and should be viewed as a supplement to
and not a substitute for the results of operations presented
in accordance with GAAP. There are significant limitations
to using Adjusted EBITDA and DCF as a measure of
performance, including the inability to analyze the effect
of certain recurring and non-recurring items that materially
affect our net income or loss. Additionally, because
Adjusted EBITDA and DCF exclude some, but not all, items
that affect net income and are defined differently by
different companies in our industry, Adjusted EBITDA and DCF
do not intend to represent net income attributable to DT
Midstream, the most comparable GAAP measure, as an indicator
of operating performance and are not necessarily comparable
to similarly titled measures reported by other companies.
Reconciliation of net income attributable to DT Midstream to
Adjusted EBITDA or DCF as projected for full-year 2022 is
not provided. We do not forecast net income as we cannot,
without unreasonable efforts, estimate or predict with
certainty the components of net income. These components,
net of tax, may include, but are not limited to, impairments
of assets and other charges, divestiture costs, acquisition
costs, or changes in accounting principles. All of these
components could significantly impact such financial
measures. At this time, management is not able to estimate
the aggregate impact, if any, of these items on future
period reported earnings. Accordingly, we are not able to
provide a corresponding GAAP equivalent for Adjusted EBITDA
or DCF.
DT Midstream 21
Operating earnings and operating earnings per share are
non-GAAP measures Use of Operating Earnings Information
– Operating earnings exclude non-recurring items,
certain mark-to-market adjustments and discontinued
operations. DT Midstream management believes that operating
earnings provide a more meaningful representation of the
company's earnings from ongoing operations and uses
operating earnings as the primary performance measurement
for external communications with analysts and investors.
Internally, DT Midstream uses operating earnings to measure
performance against budget and to report to the Board of
Directors. In this presentation, DT Midstream provides
guidance for future period operating earnings. It is likely
that certain items that impact the company's future
period reported results will be excluded from operating
results. A reconciliation to the comparable future period
reported earnings is not provided because it is not possible
to provide a reliable forecast of specific line items (i.e.,
future non-recurring items, certain mark-to-market
adjustments and discontinued operations). These items may
fluctuate significantly from period to period and may have a
significant impact on reported earnings. DT Midstream 22
Reconciliation of Reported to Operating Earnings (non-GAAP)
Three Months Ended
June 30, 2022 March 31, 2022
Reported Earnings Pre-tax Adjustments Income Taxes (1)
Operating Earnings Reported Earnings Pre-tax
Adjustments Income Taxes Operating Earnings
Gain on sale $ (17) A $ 5 $ — $ —
Net Income Attributable to DT Midstream $ 91 $ (17) $ 5
$ 79 $ 81 $ — $ — $ 81
Six Months ended
June 30, 2022 June 30, 2021
Reported Earnings Pre-tax Adjustments Income Taxes (1)
Operating Earnings Reported Earnings Pre-tax
Adjustments Income Taxes (1) Operating Earnings
Gain on sale $ (17) A $ 5 $ — $ —
Transaction costs — — 19 B (5)
Loss on note receivable — — 19 C (5)
Net Income Attributable to DT Midstream $ 172 $ (17) $ 5
$ 160 $ 146 $ 38 $ (10) $ 174
(1) Excluding tax related adjustments, the amount of income
taxes was calculated based on a combined federal and state
income tax rate, considering the applicable jurisdictions of
the respective segments and deductibility of specific
operating adjustments Adjustments Key
A Gain on sale of certain assets in the Utica shale region
— recorded in Assets (gains) losses and impairments,
net
B Transaction costs relating to the separation of DT
Midstream — recorded in Operating Expenses —
Operation and Maintenance
C Loss on note receivable for an investment in certain
assets in the Utica shale region — recorded in
Operating Expenses — Assets (gains) losses and
impairments, net DT Midstream 23
Reconciliation of Reported to Operating Earnings per
diluted share(2) (non-GAAP)
Three Months Ended
June 30, 2022 March 31, 2022
Reported Earnings Pre-tax Adjustments Income Taxes (1)
Operating Earnings Reported Earnings Pre-tax
Adjustments Income Taxes Operating Earnings
Gain on sale $ (0.17) A $ 0.045 $ — $ —
Net Income Attributable to DT Midstream $ .93 $ (0.17)
$ 0.04 $ 0.80 $ 0.84 $ — $ — $ 0.84
Six Months ended
June 30, 2022 June 30, 2021 (3)
Reported Earnings Pre-tax Adjustments Income Taxes (1)
Operating Earnings Reported Earnings Pre-tax
Adjustments Income Taxes (1) Operating Earnings
Gain on sale $ (0.17) A $ 0.04 $ — $ —
Transaction costs — — 0.19 B $(0.05)
Loss on note receivable — — 0.20 C (0.05)
Net Income Attributable to DT Midstream $ 1.77 $ (0.17)
$ 0.04 $ 1.64 $ 1.51 $ 0.39 $ (0.10) $ 1.80
(1) Excluding tax related adjustments, the amount of income
taxes was calculated based on a combined federal and state
income tax rate, considering the applicable jurisdictions of
the respective segments and deductibility of specific
operating adjustments (2) Per share amounts are divided by
Weighted Average Common Shares Outstanding — Diluted,
as noted on
the Consolidated Statements of Operations
(3) In anticipation of the separation from DTE Energy,
shares issued and outstanding as of June 30, 2021 of 96.7
million were treated as issued and outstanding for
calculated historical earnings per share
Adjustments Key
A Gain on sale of certain assets in the Utica shale region
— recorded in Assets (gains) losses and impairments,
net
B Transaction costs relating to the separation of DT
Midstream — recorded in Operating Expenses —
Operation and Maintenance
C Loss on note receivable for an investment in certain
assets in the Utica shale region — recorded in
Operating Expenses — Assets (gains) losses and
impairments, net DT Midstream 24
Reconciliation of Net Income Attributable to DT Midstream
to Adjusted EBITDA
(non-GAAP)
Three Months Ended Six Months Ended June 30, 2022
March 31, 2022, June 30, 2022, June 30, 2021
Consolidated (millions)
Net Income Attributable to DT Midstream $ 91 $ 81 $ 172 $146
Plus: Interest expense 33 31 64 50
Plus: Income tax expense 33 25 58 50
Plus: Depreciation and amortization 42 42 84 82
Plus: EBTDA from equity method investees (1) 46 49 95 84
Plus: Adjustments for non-routine items (2) (4) —
(4) 38
Less: Interest income (1) — (1) (4)
Less: Earnings from equity method investees (35) (36)
(71) (60)
Less: Depreciation and amortization attributable to
noncontrolling interests — (1) (1) (2)
Adjusted EBITDA $ 205 $ 191 $ 396 $ 384
(1) Includes shares of our equity method investees'
earnings before taxes, depreciation and amortization, which
we refer to as "EBTDA." A reconciliation of earnings
from equity method investees to EBTDA from equity method
investees follows: Three Months Ended Six Months Ended June
30, 2022 March 31, 2022, June 30, 2022, June 30, 2021
(millions)
Earnings from equity methods investees $ 35 $ 36 $ 71 $ 60
Plus: Depreciation and amortization attributable to equity
method investees 11 13 24 24
EBTDA from equity method investees $ 46 $ 49 $ 95 $ 84
(2) Adjusted EBITDA calculation excludes certain items we
consider non-routine. For the three and six months ended
June 30, 2022, adjustments for non-routine items included a
$17 million gain on sale of certain assets in the Utica
shale region, partially offset by a $13 million loss on
financing activities. For the six months ended June 30,
2021, adjustments for non-routine items included a $19
million loss on notes receivable and $19 million of
separation related transaction costs. DT Midstream 25
Reconciliation of Net Income Attributable to DT Midstream to
Adjusted EBITDA Pipeline Segment (non-GAAP) Three Months
Ended Six Months Ended June 30, 2022 March 31, 2022, June
30, 2022, June 30, 2021 Pipeline (millions)
Net Income Attributable to DT Midstream $ 52 $ 48 $ 100 $86
Plus: Interest expense 13 13 26 22
Plus: Income tax expense 19 16 35 29
Plus: Depreciation and amortization 15 16 31 31
Plus: EBTDA from equity method investees (1) 46 49 95 84
Plus: Adjustments for non-routine items (2) 6 — 6 10
Less: Interest income — — — (1)
Less: Earnings from equity method investees (35) (36)
(71) (60)
Less: Depreciation and amortization attributable
to noncontrolling interests — (1) (1) (2)
Adjusted EBITDA $ 116 $ 105 $ 221 $ 199
(1) Includes shares of our equity method investees'
earnings before taxes, depreciation and amortization, which
we refer to as "EBTDA." A reconciliation of earnings
from equity method investees to EBTDA from equity method
investees follows: Three Months Ended Six Months Ended June
30, 2022 March 31, 2022, June 30, 2022, June 30, 2021
(millions)
Earnings from equity methods investees $ 35 $ 36 $ 71 $ 60
Plus: Depreciation and amortization attributable to equity
method investees 11 13 24 24
EBTDA from equity method investees $ 46 $ 49 $ 95 $ 84
(2) Adjusted EBITDA calculation excludes certain items we
consider non-routine. For the three and six months ended
June 30, 2022, adjustments for non-routine items included a
$6 million loss on financing activities. For the six months
ended June 30, 2021, adjustments for non-routine items
included $10 million of separation related transaction
costs.
DT Midstream 26
Reconciliation of Net Income Attributable to DT Midstream to
Adjusted EBITDA Gathering Segment (non-GAAP) Three Months
Ended Six Months Ended June 30, 2022 March 31, 2022, June
30, 2022, June 30, 2021 Gathering (millions)
Net Income Attributable to DT Midstream $ 39 $ 33 $ 72 $60
Plus: Interest expense 20 18 38 28
Plus: Income tax expense 14 9 23 21
Plus: Depreciation and amortization 27 26 53 51
Plus: Adjustments for non-routine items (1) (10) —
(10) 28
Less: Interest income (1) — (1) (3)
Adjusted EBITDA $ 89 $ 86 $ 175 $ 185
(1) Adjusted EBITDA calculation excludes certain items we
consider non-routine. For the three and six months ended
June 30, 2022, adjustments for non-routine items included a
$17 million gain on sale of certain assets in the Utica
shale region, partially offset by a $7 million loss on
financing activities. For the six months ended June 30,
2021, adjustments for non-routine items included a $19
million loss on notes receivable and $9 million of
separation related transaction costs. DT Midstream 27
Reconciliation of Net Income Attributable to DT Midstream to
Distributable Cash Flow (non-GAAP) Three Months Ended Six
Months Ended June 30, 2022 March 31, 2022, June 30, 2022,
June 30, 2021
(millions)
Net Income Attributable to DT Midstream $ 91 $ 81 $ 172 $146
Plus: Interest expense 33 31 64 50
Plus: Income tax expense 33 25 58 50
Plus: Depreciation and amortization 42 42 84 82
Plus: Adjustments for non-routine items (1) (4) —
(4) 38
Less: Earnings from equity method investees (35) (36)
(71) (60)
Less: Depreciation and amortization attributable to
noncontrolling interests — (1) (1) (2)
Plus: Dividends and distributions from equity method
investees 38 50 88 69
Less: Cash interest expense (49) (6) (55) (43)
Less: Cash taxes (6) (1) (7) (2)
Less: Maintenance capital investment (2) (4) (3) (7) (11)
Distributable Cash Flow $ 139 $ 182 $ 321 $ 317
(1) Adjusted EBITDA calculation excludes certain items we
consider non-routine. For the three and six months ended
June 30, 2022, adjustments for non-routine items included a
$17 million gain on sale of certain assets in the Utica
shale region, partially offset by a $13 million loss on
financing activities. For the six months ended June 30,
2021, adjustments for non-routine items included a $19
million loss on notes receivable and $19 million of
separation related transaction costs. (2) Maintenance
capital investment is defined as the total capital
expenditures used to maintain or preserve
assets or fulfill contractual obligations that do not
generate incremental earnings.
DT Midstream 28
