(State or other jurisdiction of incorporation or organization) | (I.R.S Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Exchange on which Registered | ||||||||||||
Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company | |||||||||||
☒ | ☐ | ☐ |
Description | Shares | |||||||
Common stock, par value $0.01 |
Page | ||||||||
Appalachia Gathering System | A 144-mile pipeline delivering Marcellus shale gas to the Texas Eastern Pipeline and Stonewall Gas Gathering | |||||||
ASU | Accounting Standards Update issued by the FASB | |||||||
Bcf | Billion cubic feet of natural gas | |||||||
Blue Union | Blue Union Gathering System, a 363-mile gathering system delivering shale gas production from the Haynesville formation of Louisiana to markets in the Gulf Coast region | |||||||
Bluestone | Bluestone Gathering Lateral Pipeline, a 65-mile lateral pipeline and two compression facilities gathering Marcellus shale gas to the Millennium Pipeline and the Tennessee Pipeline | |||||||
Columbia Pipeline | Columbia Gas Transmission, LLC, owned by TC Energy Corporation | |||||||
Credit Agreement | DT Midstream's Credit Agreement provides for the Term Loan Facility and Revolving Credit Facility | |||||||
DT Midstream | DT Midstream, Inc., and its consolidated subsidiaries | |||||||
FASB | Financial Accounting Standards Board | |||||||
FERC | Federal Energy Regulatory Commission | |||||||
GAAP | Generally Accepted Accounting Principles in the United States | |||||||
Generation Pipeline | A 25-mile intrastate pipeline located in northern Ohio and owned by NEXUS | |||||||
Haynesville System | System is comprised of LEAP, Blue Union and associated facilities | |||||||
LEAP | Louisiana Energy Access Project gathering lateral pipeline, a 155-mile pipeline gathering Haynesville shale gas to markets in the Gulf Coast region | |||||||
LIBOR | London Inter-Bank Offered Rates | |||||||
LNG | Liquefied natural gas | |||||||
Michigan Gathering System | A 336-mile pipeline system in northern Michigan | |||||||
Millennium Pipeline | A 263-mile interstate pipeline and compression facilities owned by Millennium Pipeline Company, LLC serving markets in the northeast and supply from the northeast Marcellus region, in which DT Midstream owns a 52.5% interest | |||||||
MVCs | Minimum volume commitments | |||||||
National Grid | National Grid Millennium LLC | |||||||
NEXUS | NEXUS Gas Transmission, LLC, a joint venture which owns (i) a 256-mile interstate pipeline and three compression facilities transporting Utica and Marcellus shale gas to Ohio, Michigan and Ontario market centers and (ii) Generation Pipeline, in which DT Midstream owns a 50% interest | |||||||
Revolving Credit Facility | DT Midstream's secured revolving credit facility issued under the Credit Agreement | |||||||
SEC | Securities and Exchange Commission | |||||||
Separation | The separation and spin-off of DT Midstream from DTE Energy Company, effective July 1, 2021 | |||||||
SOFR | Secured Overnight Financing Rate | |||||||
South Romeo | South Romeo Gas Storage Corporation, a joint venture which owns the Washington 28 Storage Complex, in which DT Midstream owns a 50% interest | |||||||
Southwestern Energy | Southwestern Energy Company and/or its affiliates | |||||||
Stonewall Gas Gathering | Stonewall Gas Gathering Lateral Pipeline, a 68-mile pipeline in which DT Midstream owns an 85% interest, gathering Marcellus/Utica natural gas to the Columbia Pipeline |
Susquehanna Gathering System | A 198-mile pipeline delivering Marcellus shale gas production to Bluestone | |||||||
Tax Matters Agreement | The agreement that governs the respective rights, responsibilities and obligations of DTE Energy Company and DT Midstream after the Separation with respect to all tax matters | |||||||
Tennessee Pipeline | Tennessee Gas Pipeline Company, LLC, owned by Kinder Morgan, Inc. | |||||||
Term Loan Facility | DT Midstream's term loan facility issued under the Credit Agreement | |||||||
Texas Eastern Pipeline | Texas Eastern Transmission, LP, owned by Enbridge Inc. | |||||||
Topic 606 | FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended | |||||||
U.S. | United States of America | |||||||
USD | United States Dollar ($) | |||||||
Vector Pipeline | A 348-mile interstate pipeline and five compression facilities connecting Illinois, Michigan, and Ontario market centers, in which DT Midstream owns a 40% interest | |||||||
VIE | Variable Interest Entity | |||||||
Washington 10 Storage Complex | A storage system located in Michigan with 94 Bcf of storage capacity, in which DT Midstream owns a 91% interest | |||||||
2029 Notes | Senior unsecured notes of $1.1 billion in aggregate principal amount due June 2029 | |||||||
2031 Notes | Senior unsecured notes of $1.0 billion in aggregate principal amount due June 2031 | |||||||
2032 Notes | Senior secured notes of $600 million in aggregate principal amount due April 2032 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions, except per share amounts) | |||||||||||
Revenues | |||||||||||
Operating revenues | $ | $ | |||||||||
Operating Expenses | |||||||||||
Operation and maintenance | |||||||||||
Depreciation and amortization | |||||||||||
Taxes other than income | |||||||||||
Operating Income | |||||||||||
Other (Income) and Deductions | |||||||||||
Interest expense | |||||||||||
Earnings from equity method investees | ( | ( | |||||||||
Other (income) and expense | ( | ||||||||||
Income Before Income Taxes | |||||||||||
Income Tax Expense | |||||||||||
Net Income | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | |||||||||||
Net Income Attributable to DT Midstream | $ | $ | |||||||||
Basic Earnings per Common Share | |||||||||||
Net Income Attributable to DT Midstream | $ | $ | |||||||||
Diluted Earnings per Common Share | |||||||||||
Net Income Attributable to DT Midstream | $ | $ | |||||||||
Weighted Average Common Shares Outstanding | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Net Income | $ | $ | |||||||||
Foreign currency translation and unrealized gain on derivatives, net of tax | |||||||||||
Other comprehensive income | |||||||||||
Comprehensive income | |||||||||||
Less: Comprehensive income attributable to noncontrolling interests | |||||||||||
Comprehensive Income Attributable to DT Midstream | $ | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable (net of $ | |||||||||||
Deferred property taxes | |||||||||||
Prepaid expenses and other | |||||||||||
Investments | |||||||||||
Investments in equity method investees | |||||||||||
Property | |||||||||||
Property, plant, and equipment | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Other Assets | |||||||||||
Goodwill | |||||||||||
Long-term notes receivable — related party | |||||||||||
Operating lease right-of-use assets | |||||||||||
Intangible assets, net | |||||||||||
Other | |||||||||||
Total Assets | $ | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(millions, except shares) | |||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Short-term borrowings | |||||||||||
Operating lease liabilities | |||||||||||
Dividends payable | |||||||||||
Interest payable | |||||||||||
Property taxes payable | |||||||||||
Accrued compensation | |||||||||||
Other | |||||||||||
Long-Term Debt | |||||||||||
Other Liabilities | |||||||||||
Deferred income taxes | |||||||||||
Operating lease liabilities | |||||||||||
Other | |||||||||||
Total Liabilities | |||||||||||
Commitments and Contingencies (Note 9) | |||||||||||
Stockholders' Equity | |||||||||||
Preferred stock ($ | |||||||||||
Common stock ($ | |||||||||||
Additional paid in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Total DT Midstream Equity | |||||||||||
Noncontrolling interests | |||||||||||
Total Equity | |||||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Operating Activities | |||||||||||
Net Income | $ | $ | |||||||||
Adjustments to reconcile Net Income to Net cash and cash equivalents from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Amortization of operating lease right-of-use assets | |||||||||||
Deferred income taxes | |||||||||||
Earnings from equity method investees | ( | ( | |||||||||
Dividends from equity method investees | |||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net | |||||||||||
Accounts payable | ( | ( | |||||||||
Interest payable | |||||||||||
Other current and noncurrent assets and liabilities | ( | ( | |||||||||
Net cash and cash equivalents from operating activities | |||||||||||
Investing Activities | |||||||||||
Plant and equipment expenditures | ( | ( | |||||||||
Distributions from equity method investees | |||||||||||
Contributions to equity method investees | ( | ||||||||||
Notes receivable — third party and related party | |||||||||||
Net cash and cash equivalents from (used for) investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Repayment of long-term debt | ( | ||||||||||
Borrowings under the Revolving Credit Facility | |||||||||||
Repayment of borrowings under the Revolving Credit Facility | ( | ||||||||||
Repurchase of common stock | ( | ||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||
Dividends paid on common stock | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash and cash equivalents from (used for) financing activities | ( | ||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | |||||||||||
Cash and Cash Equivalents at Beginning of Period | |||||||||||
Cash and Cash Equivalents at End of Period | $ | $ | |||||||||
Supplemental disclosure of cash information | |||||||||||
Cash paid for: | |||||||||||
Interest, net of interest capitalized | $ | $ | |||||||||
Income taxes | |||||||||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||
Plant and equipment expenditures in accounts payable and other accruals | $ | $ |
Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||
(dollars in millions, shares in thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||
(dollars in millions, shares in thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation | — | ( | — | — | |||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
ASSETS (a) | |||||||||||
Cash | $ | $ | |||||||||
Accounts receivable | |||||||||||
Other current assets | |||||||||||
Intangible assets, net | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
$ | $ | ||||||||||
LIABILITIES (a) | |||||||||||
Accounts payable and other current liabilities | $ | $ | |||||||||
Other noncurrent liabilities | |||||||||||
$ | $ |
Investments As of | % Owned As of | |||||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||||
Equity Method Investee | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
NEXUS | $ | $ | ||||||||||||||||||||||||
Vector Pipeline | ||||||||||||||||||||||||||
Millennium Pipeline | ||||||||||||||||||||||||||
Total investments in equity method investees | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Operating revenues | $ | $ | |||||||||
Operating expenses | |||||||||||
Net Income | $ | $ |
March 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Pipeline | $ | $ | |||||||||
Gathering | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Pipeline (a) | $ | $ | |||||||||
Gathering | |||||||||||
Total operating revenues | $ | $ |
2023 | |||||
(millions) | |||||
Balance at January 1 | $ | ||||
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period | |||||
Revenue recognized that was included in the balance at the beginning of the period | ( | ||||
Balance at March 31 | $ |
(millions) | |||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 and thereafter | |||||
Total | $ |
(millions) | |||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 and thereafter | |||||
Total | $ |
Three Months Ended | |||||||||||
2023 | 2022 | ||||||||||
(millions, except per share amounts) | |||||||||||
Basic and Diluted Earnings per Common Share | |||||||||||
Net Income Attributable to DT Midstream | $ | $ | |||||||||
Average number of common shares outstanding — basic | |||||||||||
Incremental shares attributable to: | |||||||||||
Average dilutive restricted stock units and performance share awards | |||||||||||
Average number of common shares outstanding — diluted | |||||||||||
Basic Earnings per Common Share | $ | $ | |||||||||
Diluted Earnings per Common Share | $ | $ |
Dividends Declared | Dividend Amount | Dividend Payment Date | ||||||||||||||||||
(quarter ended) | (per-share) | (millions) | ||||||||||||||||||
2022 | ||||||||||||||||||||
March 31 | $ | $ | April 2022 | |||||||||||||||||
June 30 | $ | $ | July 2022 | |||||||||||||||||
September 30 | $ | $ | October 2022 | |||||||||||||||||
December 31 | $ | $ | January 2023 | |||||||||||||||||
2023 | ||||||||||||||||||||
March 31 | $ | $ | April 2023 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Amount | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents (a) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Long-term notes receivable — related party | |||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings (a) | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (b) | $ | $ | $ | $ | $ | $ | $ | $ |
Maturity | March 31, | December 31, | ||||||||||||||||||||||||||||||
Title | Type | Interest Rate | Date (d) | 2023 | 2022 | |||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||
2029 Notes | Senior Notes (b) | 2029 | $ | $ | ||||||||||||||||||||||||||||
2031 Notes | Senior Notes (b) | 2031 | ||||||||||||||||||||||||||||||
2032 Notes | Senior Secured Notes (c) | 2032 | ||||||||||||||||||||||||||||||
Term Loan Facility | Term Loan Facility | Variable (a) | 2028 | |||||||||||||||||||||||||||||
Long-term debt principal | ||||||||||||||||||||||||||||||||
Unamortized debt discount | ( | ( | ||||||||||||||||||||||||||||||
Unamortized debt issuance costs | ( | ( | ||||||||||||||||||||||||||||||
Long-term debt | $ | $ |
March 31, | |||||
2023 | |||||
(millions) | |||||
Total availability | |||||
Revolving Credit Facility, expiring October 2027 | $ | ||||
Amounts outstanding | |||||
Revolving Credit Facility borrowings | |||||
Letters of credit | |||||
Net availability | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Operating Revenues | |||||||||||
Pipeline | $ | $ | |||||||||
Gathering | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Net Income Attributable to DT Midstream by Segment | |||||||||||
Pipeline | $ | $ | |||||||||
Gathering | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
(millions, except per share amounts) | |||||||||||||||||
Operating revenues | $ | 220 | $ | 243 | $ | 215 | |||||||||||
Net Income Attributable to DT Midstream | 81 | 85 | 81 | ||||||||||||||
Diluted Earnings per Common Share | $ | 0.84 | $ | 0.88 | $ | 0.84 |
Three Months Ended | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
(millions) | |||||||||||||||||
Net Income Attributable to DT Midstream by Segment | |||||||||||||||||
Pipeline | $ | 57 | $ | 58 | $ | 48 | |||||||||||
Gathering | 24 | 27 | 33 | ||||||||||||||
Total | $ | 81 | $ | 85 | $ | 81 |
Three Months Ended | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
(millions) | |||||||||||||||||
Operating revenues | $ | 85 | $ | 92 | $ | 77 | |||||||||||
Operation and maintenance | 11 | 17 | 13 | ||||||||||||||
Depreciation and amortization | 16 | 17 | 16 | ||||||||||||||
Taxes other than income | 4 | 2 | 4 | ||||||||||||||
Operating Income | 54 | 56 | 44 | ||||||||||||||
Interest expense | 16 | 16 | 13 | ||||||||||||||
Earnings from equity method investees | (50) | (43) | (36) | ||||||||||||||
Income Tax Expense | 28 | 22 | 16 | ||||||||||||||
Net Income | 60 | 61 | 51 | ||||||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 3 | 3 | 3 | ||||||||||||||
Net Income Attributable to DT Midstream | $ | 57 | $ | 58 | $ | 48 |
Three Months Ended | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
(millions) | |||||||||||||||||
Operating revenues | $ | 135 | $ | 151 | $ | 138 | |||||||||||
Operation and maintenance | 47 | 61 | 48 | ||||||||||||||
Depreciation and amortization | 27 | 27 | 26 | ||||||||||||||
Taxes other than income | 5 | 3 | 4 | ||||||||||||||
Operating Income | 56 | 60 | 60 | ||||||||||||||
Interest expense | 22 | 22 | 18 | ||||||||||||||
Interest income | — | (1) | — | ||||||||||||||
Other (income) and expense | (1) | (1) | — | ||||||||||||||
Income Tax Expense | 11 | 13 | 9 | ||||||||||||||
Net Income Attributable to DT Midstream | $ | 24 | $ | 27 | $ | 33 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
(millions) | |||||||||||
Cash and Cash Equivalents at Beginning of Period | $ | 61 | $ | 132 | |||||||
Net cash and cash equivalents from operating activities | 244 | 234 | |||||||||
Net cash and cash equivalents from (used for) investing activities | (216) | (17) | |||||||||
Net cash and cash equivalents from (used for) financing activities | 6 | (68) | |||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 34 | 149 | |||||||||
Cash and Cash Equivalents at End of Period | $ | 95 | $ | 281 |
Assuming a 10% Increase in Rates | Assuming a 10% Decrease in Rates | Change in the Fair Value of | ||||||||||||||||||
Activity | As of March 31, 2023 | |||||||||||||||||||
(millions) | ||||||||||||||||||||
Interest rate risk | $ | (91) | $ | 96 | Long-term debt |
Exhibit Number | Description | |||||||
(i) Exhibits incorporated by reference: | ||||||||
Amended and Restated Certificate of Incorporation of DT Midstream, Inc., effective July 1, 2021 (Exhibit 3.1 to DT Midstream's Form 8-K filed July 1, 2021) | ||||||||
Amended and Restated Bylaws of DT Midstream, Inc., effective July 1, 2021 (Exhibit 3.2 to DT Midstream's Form 8-K filed July 1, 2021) | ||||||||
Indenture, dated as of June 9, 2021, among DT Midstream, Inc., the Guarantors and U.S. Bank National Association, as trustee. (Exhibit 4.1 to DT Midstream's Form 8-K filed June 10, 2021) | ||||||||
Indenture, dated as of April 11, 2022, among DT Midstream, Inc., the Guarantors and U.S. Bank Trust Company, National Association, as trustee. (Exhibit 4.1 to DT Midstream's Form 8-K filed April 11, 2022) | ||||||||
Pari Passu Intercreditor Agreement, dated as of April 11, 2022, among DT Midstream, Inc., the Guarantors, Barclays Bank PLC, as Credit Agreement Agent, and U.S. Bank Trust Company, National Association, as Notes Collateral Agent. (Exhibit 4.2 to DT Midstream's Form 8-K filed April 11, 2022) | ||||||||
First Incremental Revolving Facility Amendment and Amendment No. 1 to Credit Agreement and Collateral Agreement, by and among DT Midstream, Inc., the lenders and letter of credit issuers party thereto and Barclays Bank PLC, as administrative agent and collateral agent, dated as of October 19, 2022 (incorporated by reference to Exhibit 10.1 to DT Midstream's Current Report on Form 8-K filed on October 20, 2022) | ||||||||
(ii) Exhibits filed herewith: | ||||||||
Chief Executive Officer Section 302 Form 10-Q Certification of Periodic Report | ||||||||
Chief Financial Officer Section 302 Form 10-Q Certification of Periodic Report | ||||||||
Mine Safety Disclosure | ||||||||
101.INS | XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Database | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
(iii) Exhibits furnished herewith: | ||||||||
Chief Executive Officer Section 906 Form 10-Q Certification of Periodic Report | ||||||||
Chief Financial Officer Section 906 Form 10-Q Certification of Periodic Report |
Date: | May 2, 2023 | ||||||||||
DT MIDSTREAM, INC. | |||||||||||
By: | /S/ JEFFREY A. JEWELL | ||||||||||
Jeffrey A. Jewell Chief Financial and Accounting Officer | |||||||||||
(Duly Authorized Officer) |
/S/ DAVID J. SLATER | Date: | May 2, 2023 | ||||||
David J. Slater President and Chief Executive Officer of DT Midstream, Inc. |
/S/ JEFFREY A. JEWELL | Date: | May 2, 2023 | ||||||
Jeffrey A. Jewell Chief Financial Officer of DT Midstream, Inc. |
Date: | May 2, 2023 | /S/ DAVID J. SLATER | |||||||||
David J. Slater President and Chief Executive Officer of DT Midstream, Inc. |
Date: | May 2, 2023 | /S/ JEFFREY A. JEWELL | |||||||||
Jeffrey A. Jewell Chief Financial Officer of DT Midstream, Inc. |
Operation (1) | Section 104 S&S Citations | Section 104(b) Orders | Section 104(d) Citations and Orders | Section 110(b)(2) Violations | Section 107(a) Orders | Total Dollar Value of Proposed MSHA Assessments (2) | Total Number of Mining Related Fatalities | Received Notice of Pattern of Violations Under Section 104(e) | Received Notice of Potential to Have Pattern Under Section 104(e) | Legal Actions Pending as of the Last Day of Period | Legal Actions Initiated During Period | Legal Actions Resolved During Period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DTM GEN6 Proppants, LLC ID: 1601585 | — | — | — | — | — | $ | 1,160 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | — | $ | 1,160 | — | No | No | — | — | — |
/=HQ7I*'W-8,Q:K.E*#]26*7QEVMR9WDPITAR M6D+!J7J(J'S*")K.1&Y=Z&M92:/:QW]4I8;3-SYS]!P)Y55$AG4(!4B#E)T0 MFK!(5:$Y1IH/1YT%E)"]R&G_"*).-6]"*T8A9E=K%GHOD_5][R6U:D1?$_B:3_IWW*%8+0EQ?4691 6W+IBH\+F*?\FI'P6 M1*6Z8P1X2S>P&K9-T<=*L(NN&F9Q@/91\'0[-]5[#G2UWSE?]\JM\ .06[4^ M\A1 4)9O+Q8@=D5FF51,48>_L"1V]4M,7E=C[>M[%X:7J'N+EWF/QL=0,$<^ M(/5GTE:B:S:T[%2U(?JNC)BA!7EHRLF3I6='A!7!RAFFE]0B5=9$9\9])R62 M(T1EE7MW5:NH+#@1D]F*'.2'M@FR-GRYLFN]$M&05QE<&[B'E$I\PXB@;F:' 'C$A8 0$ .P$! end
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Revenues | ||
Operating revenues | $ 220 | $ 215 |
Operating Expenses | ||
Operation and maintenance | 58 | 61 |
Depreciation and amortization | 43 | 42 |
Taxes other than income | 9 | 8 |
Operating Income | 110 | 104 |
Other (Income) and Deductions | ||
Interest expense | 38 | 31 |
Earnings from equity method investees | (50) | (36) |
Other (income) and expense | (1) | 0 |
Income Before Income Taxes | 123 | 109 |
Income Tax Expense | 39 | 25 |
Net Income | 84 | 84 |
Less: Net Income Attributable to Noncontrolling Interests | 3 | 3 |
Net Income Attributable to DT Midstream | $ 81 | $ 81 |
Basic Earnings per Common Share | ||
Net Income Attributable to DT Midstream (in dollars per share) | $ 0.84 | $ 0.84 |
Diluted Earnings per Common Share | ||
Net Income Attributable to DT Midstream (in dollars per share) | $ 0.84 | $ 0.84 |
Weighted Average Common Shares Outstanding | ||
Basic (in shares) | 96.8 | 96.7 |
Diluted (in shares) | 97.4 | 97.0 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 84 | $ 84 |
Foreign currency translation and unrealized gain on derivatives, net of tax | 1 | 0 |
Other comprehensive income | 1 | 0 |
Comprehensive income | 85 | 84 |
Less: Comprehensive income attributable to noncontrolling interests | 3 | 3 |
Comprehensive Income Attributable to DT Midstream | $ 82 | $ 81 |
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Current Assets | ||
Allowance for expected credit loss | $ 0 | $ 0 |
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 550,000,000 | 550,000,000 |
Common stock, shares issued (in shares) | 96,890,219 | 96,754,549 |
Common stock, shares outstanding (in shares) | 96,890,219 | 96,754,549 |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
Statement of Stockholders' Equity [Abstract] | |||||
Dividends declared on common stock (in dollars per share) | $ 0.69 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.64 |
Description of the Business and Basis of Presentation |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of the Business and Basis of Presentation | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Description of the Business DT Midstream is an owner, operator, and developer of an integrated portfolio of natural gas midstream assets. The Company provides multiple, integrated natural gas services to customers through two segments: (i) Pipeline, which includes interstate pipelines, intrastate pipelines, storage systems, lateral pipelines including related treatment plants and compression and surface facilities, and (ii) Gathering, which includes gathering systems, related treatment plants, and compression and surface facilities. DT Midstream's Pipeline segment also includes joint venture interests in equity method investees which own and operate interstate pipelines that connect to DT Midstream’s wholly owned assets. DT Midstream’s core assets strategically connect key demand centers in the Midwestern U.S., Eastern Canada and Northeastern U.S. regions to the premium production areas of the Marcellus/Utica natural gas formation in the Appalachian Basin, and connect key demand centers and LNG export terminals in the Gulf Coast region to premium production areas of the Haynesville natural gas formation. Basis of Presentation The DT Midstream Consolidated Financial Statements and Notes to Consolidated Financial Statements are prepared under GAAP. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from DT Midstream’s estimates. DT Midstream believes the assumptions underlying these financial statements are reasonable. Certain prior-period amounts have been reclassified to conform to current-year presentation. In DT Midstream's opinion, the accompanying unaudited Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary to present a fair statement of our financial position as of March 31, 2023, results of operations for the three months ended March 31, 2023 and 2022, statement of changes in stockholders' equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022. The balance sheet as of December 31, 2022 was derived from audited annual financial statements but does not include all disclosures required by GAAP. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2023. The Consolidated Financial Statements should be read in conjunction with DT Midstream Consolidated Financial Statements and Notes to Consolidated Financial Statements included in DT Midstream's 2022 Annual Report on Form 10-K. Principles of Consolidation DT Midstream consolidates all majority-owned subsidiaries and investments in entities in which we have a controlling influence. Non-majority owned investments are accounted for using the equity method of accounting when DT Midstream is able to significantly influence the operating policies of the investee. When DT Midstream does not influence the operating policies of an investee, the equity investment is measured at fair value, if readily determinable, or if not readily determinable, at cost less impairment, if applicable. DT Midstream eliminates all intercompany balances and transactions. DT Midstream evaluates whether an entity is a VIE whenever reconsideration events occur. DT Midstream consolidates VIEs for which we are the primary beneficiary. If DT Midstream is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, DT Midstream considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. DT Midstream performs ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed. DT Midstream owns an 85% interest in the Stonewall Gas Gathering VIE and is the primary beneficiary, therefore Stonewall Gas Gathering is consolidated. DT Midstream owns a 50% interest in the South Romeo VIE and is the primary beneficiary, therefore South Romeo is consolidated. The following table summarizes the major line items in the Consolidated Statements of Financial Position for consolidated VIEs as of March 31, 2023 and December 31, 2022. All assets and liabilities of a consolidated VIE are presented where it has been determined that a consolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. The assets and liabilities of consolidated VIEs that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIEs' obligations have been excluded from the table below. Amounts for consolidated VIEs are as follows:
_____________________________________ (a)Amounts shown are 100% of the consolidated VIEs' assets and liabilities. Related Parties Transactions between DT Midstream and its equity method investees have been presented as related party transactions in the accompanying Consolidated Financial Statements. Equity Method Investments Investments in non-consolidated affiliates that are not controlled by DT Midstream, but over which we have significant influence, are accounted for using the equity method of accounting. Under the equity method, investments are recorded at historical cost as an asset and adjusted for capital contributions, dividends and distributions received, and the Company's share of the investee's earnings or losses, which are recorded as earnings from equity method investees on the Consolidated Statements of Operations. DT Midstream's equity method investments are periodically evaluated for certain factors that may be indicative of other-than-temporary impairment. As of March 31, 2023 and December 31, 2022, DT Midstream’s carrying amounts of investments in equity method investees exceeded our share of the underlying equity in the net assets of the investees by $364 million and $368 million, respectively. The difference will be amortized over the life of the underlying assets. As of March 31, 2023 and December 31, 2022, DT Midstream's consolidated retained earnings balance includes undistributed earnings from equity method investments of $11 million and $43 million, respectively. Equity method investees are described below:
In October 2022, DT Midstream closed on the $552 million purchase of an additional 26.25% ownership interest in Millennium Pipeline from National Grid. The transaction was financed with cash on hand and available capacity under the Company's Revolving Credit Facility. The purchase constituted National Grid's full ownership interests in Millennium Pipeline, and brought DT Midstream's total ownership interest in Millennium Pipeline to 52.5%. DT Midstream accounts for its ownership interest in Millennium Pipeline under the equity method of accounting. Millennium is not a VIE and DT Midstream does not have a controlling interest due to shared control with its partner over all of Millennium's significant business activities. DT Midstream’s carrying amount of the Millennium Pipeline investment exceeded our share of the underlying equity in the net assets of the Millennium Pipeline by $343 million on the acquisition date. The following table presents summarized financial information of DT Midstream's non-consolidated equity method investees. The amounts included below represent 100% of the results of continuing operations of such entities, including the portion owned by other parties. Summarized income statement data is as follows:
|
Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Cash and cash equivalents include cash in banks and highly liquid money market investments with remaining maturities of three months or less, when purchased. Cash equivalents are stated at cost, which approximates fair value. Financing Receivables Financing receivables are primarily composed of trade accounts receivable and notes receivable, which are stated at net realizable value. DT Midstream regularly monitors the credit quality of its financing receivables by reviewing counterparty credit quality indicators and monitoring for triggering events, such as a credit rating downgrade or bankruptcy. DT Midstream has three internal grades of credit quality, with internal grade 1 as the lowest risk and internal grade 3 as the highest risk. The related credit quality indicators and risk ratings utilized to develop the internal grades have been updated through March 31, 2023. As of March 31, 2023, the Notes receivable — related party of $4 million, which originated prior to 2021, was classified as internal grade 1. There are no notes receivable on nonaccrual status and no past due financing receivables as of March 31, 2023. For trade accounts receivable, the customer allowance for expected credit loss is calculated based on specific review of future collections based on receivable balances generally in excess of 30 days. Existing and future economic conditions, historical loss rates, customer trends and other relevant factors that may affect our ability to collect are also considered. Receivables are written off on a specific identification basis and determined based on the particular circumstances of the associated receivable. Uncollectible expense (recovery) was zero for the three months ended March 31, 2023 and 2022. Our collections on accounts receivable from customers are current, and no material rate of historical loss was noted, which resulted in no allowance for expected credit loss as of March 31, 2023. Any balance would be shown as a deduction from the respective financing receivable's balance in the Consolidated Statements of Financial Position. Operation and Maintenance Operation and maintenance is primarily comprised of costs for labor and employee benefits, outside services, materials, compression, purchased natural gas, operating lease costs, office costs, and other operating and maintenance costs.
|
New Accounting Pronouncements |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, as amended. Subsequently, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) - Scope, as amended. The amendments in these updates provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The guidance can be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. Subsequently, in December 2022, the FASB issued ASU No. 2022-06, Deferral of the Sunset Date of Topic 848, which further deferred the sunset date to December 31, 2024. The optional relief is temporary and cannot be applied to contract modifications and hedging relationships entered into or evaluated after December 31, 2024. DT Midstream adopted this standard in 2022, which did not have a material impact on our Consolidated Financial Statements.
|
Revenue |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | REVENUE Disaggregation of Revenue The following is a summary of revenues disaggregated by segment:
(a)Includes revenues outside the scope of Topic 606 primarily related to contracts accounted for as leases of $1 million and $2 million for the three months ended March 31, 2023 and 2022, respectively. Nature of Services DT Midstream primarily provides two types of revenue services: firm service and interruptible service. Firm service revenue contracts provide for fixed revenue commitments regardless of actual volumes of natural gas that flow, which leads to more stable operating performance, revenues and cash flows and limits our exposure to natural gas price fluctuations. Firm service revenue contracts are typically long-term and structured using fixed demand charges or MVCs with fixed deficiency fee rates. Contracts structured using fixed demand charges contain a performance obligation of a stand-ready series of distinct services that are substantially the same with the same pattern of transfer to the customer, therefore revenue is recognized ratably over time. Contracts structured using MVCs with fixed deficiency fee rates require customers to transport or store a minimum volume of natural gas over a specified time period. If a customer fails to meet its MVCs for the specified time period, the contract consideration includes a fixed rate for the actual volumes transported, gathered or stored, and a deficiency fee for the shortfall between the MVCs and the actual volumes transported, gathered or stored. If a customer exceeds its MVC for the specified time period, the contract consideration is based on fixed rates for the actual volumes transported, gathered or stored. The contract consideration is allocated to each distinct monthly performance obligation, consistent with the allocation objective and based upon the level of effort required to satisfy the service obligation. Revenues are generally recognized over time based on the output measure of natural gas volumes transported, gathered or stored, with the recognition of the deficiency fee revenue in the period when it is known the customer cannot make up the deficient volumes in the specified time period. Interruptible service revenue contracts typically contain fixed rates, with total consideration dependent on actual natural gas volumes that flow. Interruptible service revenues are recognized over time based on the output measure of natural gas volumes transported, gathered or stored. Certain of our gathering contracts allow for the recovery of production-related operating expenses, which are recorded as revenue and operating expense. Contract Liabilities The following is a summary of contract liability activity:
The contract liabilities at DT Midstream generally represent amounts paid by customers for which the associated performance obligation has not yet been satisfied. Contract liabilities associated with these services are recognized upon delivery of the service to the customer. The following table presents contract liability amounts as of March 31, 2023 that are expected to be recognized as revenue in future periods:
Transaction Price Allocated to the Remaining Performance Obligations In accordance with optional exemptions available under Topic 606, DT Midstream does not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less, (2) with the exception of fixed consideration, contracts for which the amount of revenue recognized depends upon DT Midstream's invoices for actual volumes transported, gathered or stored, and (3) contracts for which variable consideration relates entirely to an unsatisfied performance obligation. Such contracts consist of various types of performance obligations, including providing midstream services. Contracts with variable volumes and/or variable pricing, including those with pricing provisions tied to a consumer price or other index, have also been excluded as the related contract consideration is variable at the contract inception. Contract lengths vary from cancellable to multi-year. The following table presents revenue amounts related to fixed consideration associated with unsatisfied performance obligations as of March 31, 2023 that are expected to be recognized as revenue in future periods:
Costs to Obtain or Fulfill a Contract DT Midstream recognizes an asset from the costs incurred to obtain a revenue contract only if it expects to recover those costs. In addition, the costs to fulfill a revenue contract are capitalized if the costs are specifically identifiable to a revenue contract, would result in enhancing resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. These capitalized costs are amortized on a systematic basis consistent with the pattern of transfer of the services to which such costs relate. As of both March 31, 2023 and December 31, 2022, the Company had capitalized costs to obtain or fulfill a contract of $19 million, which are included in other current assets and other noncurrent assets in the accompanying Consolidated Statements of Financial Position. During the three months ended March 31, 2023 and 2022, we recognized less than $1 million of amortization expense related to such capitalized costs.
|
Goodwill |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | GOODWILL DT Midstream has goodwill that resulted from business combinations. The carrying value of goodwill is evaluated for impairment on an annual basis or whenever events or circumstances indicate that the value of goodwill may be impaired. We performed our prior year annual impairment test as of October 1, 2022 and determined that the estimated fair value of each reporting unit exceeded its carrying value, and no impairment existed. No additions, impairments or other changes occurred during the three months ended March 31, 2023. The following is the summary of the carrying amount of goodwill:
While we believe the estimates and assumptions in the estimated fair value are reasonable, the actual results may differ from projections. To the extent projected results or cash flows are revised downward, the reporting unit may be required to write down all or a portion of its goodwill, which would adversely impact our earnings. If current expectations of future long-term growth are not met or market factors outside of our control change, such as U.S. Treasury Rates, a sustained further decline in our market capitalization, or a further decline in midstream industry transaction multiples, this may lead to a goodwill impairment in the future.
|
Earnings Per Share and Dividends |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share and Dividends | EARNINGS PER SHARE AND DIVIDENDS Basic earnings per share is calculated by dividing Net Income attributable to DT Midstream by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution that would occur if any potentially dilutive instruments were exercised or converted into common shares. Restricted stock units and performance shares, including dividend equivalents on those grants, are potentially dilutive and, if dilutive, are included in the determination of weighted average shares outstanding. Restricted stock units and performance shares do not receive cash dividends, as such, these awards are not considered participating securities. The following is a reconciliation of DT Midstream's basic and diluted earnings per share calculation:
DT Midstream declared the following cash dividends:
|
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Effective Tax Rates DT Midstream records income taxes during the interim period using an estimated annual effective tax rate ("ETR") and recognizes specific events discretely as they occur. The interim period ETRs of DT Midstream are 32% and 23% for the three months ended March 31, 2023 and 2022, respectively. The difference between the interim ETRs and federal statutory rate of 21% is primarily related to state income taxes. The increase in the interim ETRs for the comparative period is driven by remeasurements of state deferred taxes for changes in tax status and apportionment rates.
|
Fair Value |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | FAIR VALUE Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable inputs. DT Midstream makes certain assumptions it believes that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. DT Midstream believes it uses valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. All assets and liabilities are required to be classified in their entirety based on the lowest level of input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. DT Midstream classifies fair value balances based on the fair value hierarchy defined as follows: •Level 1 — Consists of unadjusted quoted prices in active markets for identical assets or liabilities that DT Midstream has the ability to access as of the reporting date. •Level 2 — Consists of inputs other than quoted prices included within Level 1 that are directly observable for the assets or liabilities or indirectly observable through corroboration with observable market data. •Level 3 — Consists of unobservable inputs for assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints. Fair Value of Financial Instruments The following table presents the carrying amount and fair value of financial instruments:
(a)Short-term borrowings and money market cash equivalents are stated at cost, which approximates fair value. (b)Carrying value represents principal of $3,099 million, net of unamortized debt discounts and issuance costs.
|
Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT Long-Term Debt DT Midstream's long-term debt outstanding included:
(a) Variable rate is LIBOR plus 2.00%, where LIBOR will not be less than 0.50%. The Term Loan Facility includes $399 million with a one-month LIBOR interest period which ended April 28, 2023. (b) Interest payable semi-annually in arrears each June 15 and December 15. (c) Interest payable semi-annually in arrears each April 15 and October 15. (d) DT Midstream does not have any scheduled debt maturities until 2028. Short-Term Credit Arrangements and Borrowings The following table presents the availability under the Revolving Credit Facility:
Borrowings under the Revolving Credit Facility are used for general corporate purposes, acquisitions, and letter of credit issuances to support DT Midstream's operations and liquidity. Revolving Credit Facility related issuance and amendment costs, net of amortization, were $7 million and $8 million, as of March 31, 2023 and December 31, 2022, respectively. These costs are included in Other noncurrent assets on DT Midstream's Consolidated Statements of Financial Position and are being amortized over the remaining term of the Revolving Credit Facility. The Credit Agreement covering the Term Loan Facility and Revolving Credit Facility includes financial covenants that DT Midstream must maintain. These covenants restrict the ability of DT Midstream and its subsidiaries to incur additional indebtedness and guarantee indebtedness, create or incur liens, engage in mergers, consolidations, liquidations or dissolutions, sell, transfer or otherwise dispose of assets, make investments, acquisitions, loans or advances, pay dividends and distributions or repurchase capital stock, prepay, redeem or repurchase certain junior indebtedness, enter into agreements that limit the ability of the restricted subsidiaries to make distributions to DT Midstream or the ability of DT Midstream and its restricted subsidiaries to incur liens on assets and enter into certain transactions with affiliates. The Term Loan Facility requires the maintenance of a minimum debt service coverage ratio of 1.1 to 1, and the Revolving Credit Facility requires maintenance of (i) a maximum consolidated net leverage ratio of 5 to 1, and (ii) a minimum interest coverage ratio of no less than 2.5 to 1. The debt service coverage ratio means the ratio of annual consolidated EBITDA to debt service, as defined in the Credit Agreement. The consolidated net leverage ratio means the ratio of net debt determined in accordance with GAAP to annual consolidated EBITDA. The interest coverage ratio means the ratio of annual consolidated EBITDA to annual interest expense, as defined in the Credit Agreement. At March 31, 2023, the debt service coverage ratio, the consolidated net leverage ratio and the interest coverage ratio was 6.9 to 1, 3.7 to 1 and 6.0 to 1, respectively, and DT Midstream was in compliance with these financial covenants.
|
Commitments and Contingencies |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, DT Midstream is subject to legal, administrative and environmental proceedings before various courts, arbitration panels and governmental agencies concerning claims arising in the ordinary course of business. These proceedings include certain contract disputes, additional environmental reviews and investigations, audits and pending judicial matters. DT Midstream cannot predict the final disposition of such proceedings. DT Midstream regularly reviews legal matters and records provisions for claims that we can estimate and are considered probable of loss. The amount or range of reasonably possible losses is not anticipated to, either individually or in the aggregate, materially adversely affect DT Midstream’s business, financial condition and results of operations. Guarantees In certain limited circumstances, DT Midstream enters into contractual guarantees. DT Midstream may guarantee another entity's obligation in the event it fails to perform and may provide guarantees in certain indemnification agreements. DT Midstream did not have any guarantees of other parties' obligations as of March 31, 2023. Vector Pipeline Line of Credit DT Midstream is the lender under a revolving term credit facility to Vector Pipeline, the borrower, in the amount of Canadian $70 million. The credit facility was executed in response to the passage of Canadian regulations requiring oil and gas pipelines to demonstrate their financial ability to respond to a catastrophic event and exists for the sole purpose of satisfying these regulations. Vector Pipeline may only draw upon the facility if the funds are required to respond to a catastrophic event. The maximum potential payout at March 31, 2023 is USD $52 million. The funding of a loan under the terms of the credit facility is considered remote. Environmental Contingencies In order to comply with certain state environmental regulations, DT Midstream has an obligation to restore pipeline right-of-way slope failures that may arise in the ordinary course of business in the Utica and Marcellus formations. Slope restoration expenditures are typically capital in nature. As of both March 31, 2023 and December 31, 2022, DT Midstream had accrued contingent liabilities of $19 million for future slope restoration expenditures. The accrual is included in Other current liabilities and Other liabilities in the Consolidated Statements of Financial Position. DT Midstream believes the accrued amounts are sufficient to cover estimated future expenditures.
|
Segment and Related Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Related Information | SEGMENT AND RELATED INFORMATION DT Midstream sets strategic goals, allocates resources, and evaluates performance based on the following structure: The Pipeline segment owns and operates interstate and intrastate natural gas pipelines, storage systems, and natural gas gathering lateral pipelines. The segment also has interests in equity method investees that own and operate interstate natural gas pipelines. The Pipeline segment is also engaged in the transportation and storage of natural gas for intermediate and end user customers. During the three months ended March 31, 2023, DT Midstream completed the conversion of the Michigan Gathering System and began providing services under a new long-term dry gas transmission contract. During the three months ended March 31, 2023, the Michigan Gathering System financial results are presented in the Pipeline segment. The prior period comparative activity was for gathering services and therefore was not revised. The Gathering segment owns and operates gas gathering systems. The segment is engaged in collecting natural gas from points at or near customers’ wells for delivery to plants for treating, to gathering pipelines for further gathering, or to pipelines for transportation, as well as associated ancillary services, including compression, dehydration, gas treatment, water impoundment, water transportation, water disposal, and sand mining. Inter-segment billing for goods and services exchanged between segments is based upon contracted prices of the provider. Inter-segment billings were not significant for the three months ended March 31, 2023 and 2022. The following table presents financial data by business segment:
|
Subsequent Event |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT NEXUS Financing On April 6, 2023, NEXUS priced $750 million of senior unsecured notes with a weighted-average coupon rate of 5.52%. On April 28, 2023, NEXUS closed the notes offering, and by mid-May DT Midstream will receive a distribution from NEXUS for $375 million, less fees and expenses. DT Midstream intends to use the proceeds from the distribution to fund organic growth and repay borrowings outstanding under our Revolving Credit Facility.
|
Significant Accounting Policies (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The DT Midstream Consolidated Financial Statements and Notes to Consolidated Financial Statements are prepared under GAAP. These accounting principles require management to use estimates and assumptions that impact reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from DT Midstream’s estimates. DT Midstream believes the assumptions underlying these financial statements are reasonable. Certain prior-period amounts have been reclassified to conform to current-year presentation. In DT Midstream's opinion, the accompanying unaudited Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary to present a fair statement of our financial position as of March 31, 2023, results of operations for the three months ended March 31, 2023 and 2022, statement of changes in stockholders' equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022. The balance sheet as of December 31, 2022 was derived from audited annual financial statements but does not include all disclosures required by GAAP. Financial results for this interim period are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2023. The Consolidated Financial Statements should be read in conjunction with DT Midstream Consolidated Financial Statements and Notes to Consolidated Financial Statements included in DT Midstream's 2022 Annual Report on Form 10-K.
|
Principles of Consolidation | Principles of Consolidation DT Midstream consolidates all majority-owned subsidiaries and investments in entities in which we have a controlling influence. Non-majority owned investments are accounted for using the equity method of accounting when DT Midstream is able to significantly influence the operating policies of the investee. When DT Midstream does not influence the operating policies of an investee, the equity investment is measured at fair value, if readily determinable, or if not readily determinable, at cost less impairment, if applicable. DT Midstream eliminates all intercompany balances and transactions. DT Midstream evaluates whether an entity is a VIE whenever reconsideration events occur. DT Midstream consolidates VIEs for which we are the primary beneficiary. If DT Midstream is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity method of accounting. When assessing the determination of the primary beneficiary, DT Midstream considers all relevant facts and circumstances, including: the power, through voting or similar rights, to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. DT Midstream performs ongoing reassessments of all VIEs to determine if the primary beneficiary status has changed. DT Midstream owns an 85% interest in the Stonewall Gas Gathering VIE and is the primary beneficiary, therefore Stonewall Gas Gathering is consolidated. DT Midstream owns a 50% interest in the South Romeo VIE and is the primary beneficiary, therefore South Romeo is consolidated.
|
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash in banks and highly liquid money market investments with remaining maturities of three months or less, when purchased. Cash equivalents are stated at cost, which approximates fair value. |
Financing Receivables | Financing Receivables Financing receivables are primarily composed of trade accounts receivable and notes receivable, which are stated at net realizable value. DT Midstream regularly monitors the credit quality of its financing receivables by reviewing counterparty credit quality indicators and monitoring for triggering events, such as a credit rating downgrade or bankruptcy. DT Midstream has three internal grades of credit quality, with internal grade 1 as the lowest risk and internal grade 3 as the highest risk. The related credit quality indicators and risk ratings utilized to develop the internal grades have been updated through March 31, 2023. As of March 31, 2023, the Notes receivable — related party of $4 million, which originated prior to 2021, was classified as internal grade 1. There are no notes receivable on nonaccrual status and no past due financing receivables as of March 31, 2023. For trade accounts receivable, the customer allowance for expected credit loss is calculated based on specific review of future collections based on receivable balances generally in excess of 30 days. Existing and future economic conditions, historical loss rates, customer trends and other relevant factors that may affect our ability to collect are also considered. Receivables are written off on a specific identification basis and determined based on the particular circumstances of the associated receivable.
|
Recently Issued Pronouncements | Recently Adopted Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, as amended. Subsequently, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) - Scope, as amended. The amendments in these updates provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The guidance can be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. Subsequently, in December 2022, the FASB issued ASU No. 2022-06, Deferral of the Sunset Date of Topic 848, which further deferred the sunset date to December 31, 2024. The optional relief is temporary and cannot be applied to contract modifications and hedging relationships entered into or evaluated after December 31, 2024. DT Midstream adopted this standard in 2022, which did not have a material impact on our Consolidated Financial Statements.
|
Description of the Business and Basis of Presentation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The following table summarizes the major line items in the Consolidated Statements of Financial Position for consolidated VIEs as of March 31, 2023 and December 31, 2022. All assets and liabilities of a consolidated VIE are presented where it has been determined that a consolidated VIE has either (1) assets that can be used only to settle obligations of the VIE or (2) liabilities for which creditors do not have recourse to the general credit of the primary beneficiary. The assets and liabilities of consolidated VIEs that meet the definition of a business and whose assets can be used for purposes other than the settlement of the VIEs' obligations have been excluded from the table below. Amounts for consolidated VIEs are as follows:
_____________________________________ (a)Amounts shown are 100% of the consolidated VIEs' assets and liabilities.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments | Equity method investees are described below:
The following table presents summarized financial information of DT Midstream's non-consolidated equity method investees. The amounts included below represent 100% of the results of continuing operations of such entities, including the portion owned by other parties. Summarized income statement data is as follows:
|
Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following is a summary of revenues disaggregated by segment:
(a)Includes revenues outside the scope of Topic 606 primarily related to contracts accounted for as leases of $1 million and $2 million for the three months ended March 31, 2023 and 2022, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Contact Liability Activity | The following is a summary of contract liability activity:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Expected to be Recognized in Future Periods | The following table presents contract liability amounts as of March 31, 2023 that are expected to be recognized as revenue in future periods:
|
Goodwill (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following is the summary of the carrying amount of goodwill:
|
Earnings Per Share and Dividends (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share | The following is a reconciliation of DT Midstream's basic and diluted earnings per share calculation:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Dividends Declared | DT Midstream declared the following cash dividends:
|
Fair Value (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount of Fair Value of Financial Instruments | The following table presents the carrying amount and fair value of financial instruments:
(a)Short-term borrowings and money market cash equivalents are stated at cost, which approximates fair value. (b)Carrying value represents principal of $3,099 million, net of unamortized debt discounts and issuance costs.
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Outstanding | DT Midstream's long-term debt outstanding included:
(a) Variable rate is LIBOR plus 2.00%, where LIBOR will not be less than 0.50%. The Term Loan Facility includes $399 million with a one-month LIBOR interest period which ended April 28, 2023. (b) Interest payable semi-annually in arrears each June 15 and December 15. (c) Interest payable semi-annually in arrears each April 15 and October 15. (d) DT Midstream does not have any scheduled debt maturities until 2028.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Availability Under the Revolving Credit Facility | The following table presents the availability under the Revolving Credit Facility:
|
Segment and Related Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Data by Business Segment | The following table presents financial data by business segment:
|
Description of the Business and Basis of Presentation (Consolidated VIEs) (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
ASSETS | ||
Cash | $ 95 | $ 61 |
Accounts receivable | 122 | 161 |
Intangible assets, net | 2,011 | 2,025 |
Property, plant and equipment, net | 4,000 | 3,806 |
Goodwill | 473 | 473 |
Total Assets | 8,981 | 8,833 |
LIABILITIES | ||
Other noncurrent liabilities | 1,057 | 1,006 |
Total liabilities | 4,816 | 4,679 |
Variable interest entity, primary beneficiary | ||
ASSETS | ||
Cash | 3 | 27 |
Accounts receivable | 9 | 9 |
Other current assets | 1 | 3 |
Intangible assets, net | 494 | 498 |
Property, plant and equipment, net | 400 | 403 |
Goodwill | 25 | 25 |
Total Assets | 932 | 965 |
LIABILITIES | ||
Accounts payable and other current liabilities | 3 | 4 |
Other noncurrent liabilities | 4 | 4 |
Total liabilities | $ 7 | $ 8 |
Description of the Business and Basis of Presentation (Equity Method Investees) (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
Oct. 31, 2022 |
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Investments As of | $ 2,171 | $ 2,200 | |
NEXUS | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments As of | $ 1,294 | $ 1,313 | |
% Owned As of | 50.00% | 50.00% | |
Vector Pipeline | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments As of | $ 137 | $ 135 | |
% Owned As of | 40.00% | 40.00% | |
Millennium Pipeline | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments As of | $ 740 | $ 752 | |
% Owned As of | 52.50% | 52.50% | 52.50% |
Description of the Business and Basis of Presentation (Summarized Income Statement Data) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Schedule of Equity Method Investments [Line Items] | ||
Operating revenues | $ 220 | $ 215 |
Net Income | 84 | 84 |
Equity method investment, non-consolidated investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Operating revenues | 211 | 198 |
Operating expenses | 94 | 94 |
Net Income | $ 110 | $ 95 |
Significant Accounting Policies (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023
USD ($)
internal_grade
|
Mar. 31, 2022
USD ($)
|
|
Financing Receivable, Past Due [Line Items] | ||
Number of internal grades of credit quality | internal_grade | 3 | |
Specific review of probable future collections based on receivable balances, threshold duration | 30 days | |
Uncollectible expense (recovery) | $ 0 | $ 0 |
Allowance for expected credit loss related to accounts receivable | 0 | |
Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables | 0 | |
Notes receivable - related party | Internal grade 1 | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable originated prior to 2021 | 4,000,000 | |
Notes receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivables on nonaccrual status | $ 0 |
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 220 | $ 215 |
Pipeline | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 85 | 77 |
Lease revenue outside scope of Topic 606 | 1 | 2 |
Gathering | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 135 | $ 138 |
Revenue (Contract Liabilities) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Change In Contract With Customer, Liability [Roll Forward] | |
Beginning Balance | $ 32 |
Increases due to cash received or receivable, excluding amounts recognized as revenue during the period | 5 |
Revenue recognized that was included in the balance at the beginning of the period | (1) |
Ending Balance | $ 36 |
Revenue (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Revenue from Contract with Customer [Abstract] | |||
Capitalized contract cost, net | $ 19 | $ 19 | |
Capitalized contract cost, amortization expense (less than) | $ 1 | $ 1 |
Goodwill (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 473 | $ 473 |
Operating segments | Pipeline | ||
Goodwill [Line Items] | ||
Goodwill | 53 | 53 |
Operating segments | Gathering | ||
Goodwill [Line Items] | ||
Goodwill | $ 420 | $ 420 |
Earnings Per Share and Dividends (Reconciliation of Basic and Diluted Earnings Per Share Calculation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Basic and Diluted Earnings per Common Share | ||
Net Income Attributable to DT Midstream | $ 81 | $ 81 |
Average number of common shares outstanding — basic (in shares) | 96.8 | 96.7 |
Incremental shares attributable to: | ||
Average dilutive restricted stock units and performance share awards (in shares) | 0.6 | 0.3 |
Average number of common shares outstanding — diluted (in shares) | 97.4 | 97.0 |
Basic earnings per common share (in dollars per share) | $ 0.84 | $ 0.84 |
Diluted earnings per common share (in dollars per share) | $ 0.84 | $ 0.84 |
Earnings Per Share and Dividends (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
Earnings Per Share [Abstract] | |||||
Quarterly Dividend (in dollars per share) | $ 0.69 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.64 |
Dividend Amount | $ 67 | $ 62 | $ 62 | $ 62 | $ 62 |
Income Taxes (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Estimated annual effective tax rate | 32.00% | 23.00% |
Debt (Narrative) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Line Of Credit Facility [Line Items] | ||
Debt amendment cost | $ 8 | |
Debt service coverage ratio | 6.9 | |
Consolidated net leverage ratio | 3.7 | |
Interest coverage ratio | 6.0 | |
Secured Revolving Credit Facility expiring June 2026 | Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Fees incurred | $ 7 | |
Maximum consolidated net leverage ratio | 5 | |
Minimum interest coverage ratio | 2.5 | |
Variable rate Term Loan Facility due 2028 | ||
Line Of Credit Facility [Line Items] | ||
Minimum debt service coverage ratio | 1.1 |
Debt (Availability Under the Revolving Credit Facility) (Details) - Revolving Credit Facility, expiring October 2027 $ in Millions |
Mar. 31, 2023
USD ($)
|
---|---|
Line Of Credit Facility [Line Items] | |
Amounts outstanding | $ 449 |
Net availability | 551 |
Revolving Credit Facility | |
Line Of Credit Facility [Line Items] | |
Total availability | 1,000 |
Amounts outstanding | 410 |
Letter of credit | |
Line Of Credit Facility [Line Items] | |
Amounts outstanding | $ 39 |
Commitments and Contingencies (Narrative) (Details) $ in Millions, $ in Millions |
Mar. 31, 2023
USD ($)
|
Mar. 31, 2023
CAD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|---|
Loss Contingencies [Line Items] | |||
Accrued contingent liabilities | $ 19 | $ 19 | |
Revolving Term Credit Facility | Vector Pipeline | |||
Loss Contingencies [Line Items] | |||
Financing receivables | $ 70 | ||
Maximum potential payout under line of credit | $ 52 |
Segment and Related Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating revenues | $ 220 | $ 215 |
Net Income Attributable to DT Midstream | 81 | 81 |
Pipeline | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating revenues | 85 | 77 |
Net Income Attributable to DT Midstream | 57 | 48 |
Gathering | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Operating revenues | 135 | 138 |
Net Income Attributable to DT Midstream | $ 24 | $ 33 |
Subsequent Event (Details) - Subsequent Event - NEXUS Senior Unsecured Notes - Senior Notes - USD ($) $ in Millions |
Apr. 28, 2023 |
Apr. 06, 2023 |
---|---|---|
Subsequent Event [Line Items] | ||
Long-term debt issued | $ 750 | |
Interest Rate | 5.52% | |
Proceeds from issuance of debt | $ 375 |
9DZ:D
MK,7LGG16L!)GM>)]6_'D(];(::;ZXERY B4LJ=FZ?42\MFO]+.2=PH&*RM D
MPV%ZI@G!+ E-7A1 WCF0WK]7THF\X49],3:;F&5S;;C28.Z3)*07XKDT$O!,
MUOFV]T2, ^!E0J9_(,OP]1ZQ!7]FOZ'T1GY.:B<6Z5IK+4(1>(N"/(:29PL"
M<+5;*XS(V-(U=)E;KT.HL?\0+BSJ@JQ7VYCV,7ZR;: KEAAI4,%_0TFHJ"3<
M(,"^@P_#7IN'9"'A8@P'R'7)%P KK.V?5E#^/0 7*JA?F.0TX+;A %.EBJ R@AE5P)613 +FP#
MW\Q4)#!BW9H48RBUYP4,63G"BCIZ=U#CEBC$ 52U1<&6RZVK((%FQ+TISE=P
MCDJH<@)G,*OL.ICCQ)14['HG,N6RI@(]HNMBD0<6[VVF8F"V#NZ)+V8= _8W
M1]5X$C_AB%V06_T<6?N-G$W%"(KV.@;Q'') JP@3#\.>^ S?[,8X3HK?E^["
MV6H3@N29K'&(!+I*2V_N)TXA:APPMNDPD(R3$R9?)R+&!0R/Q&6)%?P'^A[/
MD;%9K7F((;C1\#N:28E:FVHP'-"D(3B:$6)YXSCR1'PT&W_T&X4J!6\"YV#H
M2/7JGAM5:MV TS9(F'EK?60QW%J32[Q@[UQ+KB,FZMO?J79V0)_]CHKJFEHJ
M=V\?O:+E#+\L256M[8JXDAHJ%'<=?'0PCP4/82KCI%G'A/.'%2(I8R'<# ["
M\*S!]4VR@H0-KM"$W71OE[D/=>NW;>)MCQ^:$H_VCLU__9U9'52:QR\2G[IO
M&MLWJYN/GG&:];?'TQ<3:( Z[H&U@.B@]\N;#AI2_ I)+\'6*?V0#>QL<2
M'V[D^ #V"PLVMB]\P>93\.(?4$L#!!0 ( .]@HE9'K8-D-@0 &0) 9
M >&PO=V]R:W-H965T 7)GG7$TQ!W-JX,>;E%NP53)%TE
M>9DJ6-Y :13!\,X1Q=A*C<1:?)<@I"XK)^M]!;PMU9W0T7ID;CW"T@D:[P([
M^"QG,K#+3JTG*M$*/E*MXH$!'?42$8-"0?]A/WX,_QM]@M2"L8&V02(3D\)G
MC7/L@:=C0&:[S(<<$ROA4A_)LA8%UY.D(U.%<$%)51!7"H]'VC45%,?X&WFR
ML)I.%5ZAW!1LS1JIM&H\V\R^WSSW;TIMIIR^G#KK'">(/EEQB%L=+;8A?G7A
M8ZZT)C%R".\E%F$#1>2VI,W:J QTZ#Y]YABVV6!.E-EN. LN=6H+T79V4*6 [M'K">O%,_^NGCV?[AXWA#%[AENT64ZI1P]4OWT=6M7[7S5[>Z*
M7_LO@G_I_2,&3:9^TYY1Q%[&9\WI8>37Y0'<+;D@C5X4QBWA[FG>%1IB0^8[
M!?_IYL\O$\IM=!R?]OR]&W6A3ZGBZX%.8;3&[F6)?@>(N@.Z^B3+ W_=DA]4
M2E;%QF;0Z\"@'T,_/ND?U-]3[:ALR4:\M(O@'JYHO1U'@\C?Z90*NS:INK#;
MS6Y%M6*][4@5SKUU_;J>$M"4MG84Q5O+.O]E2X![@-1%M!:R5'5)\LFC,E!#
MV-(U-=&Y$6BM7<"H/E\#"MK%!=!XD+<3^1WU&7U"7V^X)A$K]8?\8-V9
M#$'X07\DUQ+3A"!-_-5"
ZM
M?8>[;!_VK7O;'KF>5EQ@H'#)H