DT Midstream, Inc. Q3 FY2025 earnings call

• Financial results: Strong year-to-date performance led to increasing the midpoint of 2025 adjusted EBITDA guidance range to $1.13 billion, an 18% increase from prior year. Reaffirmed 2026 adjusted EBITDA early outlook range. - Commercial activity: Reached FID on a larger G3+ expansion on Guardian Pipeline, increasing capacity by ~537 million cubic feet per day (40% increase). Advancing upstream network opportunities. LEAP Phase 4 expansion facilities placed into service early and on budget, increasing capacity from 1.9 to 2.1 Bcf per day. Clean Fuels Gathering project placed into service. Louisiana CCS project remains pre-FID, with permit timeline uncertain but project remains shovel-ready. - Market fundamentals: Positive shift in Haynesville, robust gas and power demand growth in Louisiana, including data centers and LNG. Regulatory framework: Senate confirmation of new FERC members gives confidence in constructive permitting process for key interstate growth projects.

In the third quarter, the Pipeline segment results were in line with the second quarter. The Gathering segment results were $10 million higher than the second quarter, driven by higher volumes on the Haynesville system where production ramped faster than expected. Operationally, total gathering volumes for the Haynesville averaged 2.04 Bcf per day, setting an all-time record throughput for a quarter and a 35% increase over the third quarter 2024. In the Northeast, volumes averaged 1.09 Bcf per day, with September averaging 1.17 Bcf per day, and fourth quarter volumes expected to be in line with the first quarter.

• Raised 2025 adjusted EBITDA guidance midpoint to $1.13 billion, range $1.115 billion to $1.145 billion. - Reaffirmed 2026 adjusted EBITDA early outlook range. - Raised distributable cash flow guidance range to $800 million to $830 million. - Reduced 2025 growth capital guidance range to $385 million to $415 million. - For 2026, increased committed capital to $280 million for the upsized Guardian G3 expansion, expecting to invest $850 million to $930 million with the project in service in Q4 2028. - Board approved third quarter dividend of $0.82 per share, unchanged from prior quarter, with plan to grow dividend 5% to 7% per year in line with long-term adjusted EBITDA growth.

• Louisiana CCS project: Louisiana Department responsible for reviewing permit applications has reorganized and announced a moratorium on accepting new applications, making the permit timeline uncertain.

Q: Jeremy Tonet at JPMorgan asked about the potential of DT Midstream's network to support data center gas-fired generation demand in Louisiana.

A: David Slater said there's robust market demand growth in Louisiana, including data center and LNG demand, and DT Midstream is pursuing all these markets.

Q: Spiro Dounis at Citi asked about Guardian's ability to push further north into Wisconsin and connection with Viking.

A: David Slater said Guardian is expandable and there's positive demand fundamentals in the upper Northern Midwest corridor, with Viking sitting in a strategic corridor but focused on disciplined execution of core business.

Q: Michael Blum at Wells Fargo asked about change in CapEx for the year and maintenance capital run rate.

A: David Slater and Jeff Jewell said construction team has exemplary performance, with capital efficiency and some timing factors contributing to the change, and maintenance capital run rate assumed flat going forward.

Q: Theresa Chen at Barclays asked about how DT Midstream's assets compare to competitors and winning expansion projects.

A: David Slater said there's competition but significant market opportunity, and returns on FERC-regulated assets need to be at attractive levels to compete, with focus on finding right projects with right return profiles.

Q: Manav Gupta at UBS asked about factors driving dividend growth closer to 7% and involvement in behind-the-meter solutions.

A: David Slater and Jeff Jewell said strong growth could drive dividend closer to 7%, and DT Midstream is open to behind-the-meter solutions with right commercial structure.

Q: Keith Stanley at Wolfe Research asked about Vector expansion and Haynesville volumes.

A: David Slater said Vector project is generic and can serve various egress options in Greater Chicago area, and Haynesville volume outpacing basin is due to quality of resource and producers' nimbleness.

Q: Jean Ann Salisbury at Bank of America asked about Midwestern pipeline opportunities and Haynesville volumes.

A: David Slater said Midwestern pipeline can go in both directions, and Haynesville volume outpacing basin is due to resource quality and producers' disciplined behavior.

Q: John Mackay at Goldman Sachs asked about upper Midwest projects and behind-the-meter power generation.

A: David Slater said longer-term golf demand to Gulf is being discussed but not ready yet, and DT Midstream will focus on core business and not go into behind-the-meter power generation.

Q: Gabe Moreen at Mizuho asked about next LEAP expansion and inorganic growth.

A: David Slater said more egress required to Gulf, and DT Midstream is prepositioning for future loads, with competitive tension but expectation to win fair share.

Q: Zackery Van Everen at TPH asked about Tioga flows and industrial demand in Louisiana.

A: David Slater said Tioga expansion is anchored by Seneca, and DT Midstream is aware of industrial demand in Louisiana and has connectivity for it.

Q: Rob Mosca on behalf of Julien Dumoulin-Smith at Jefferies asked about Haynesville market share and connectivity to Carthage.

A: David Slater said DT Midstream has grown market share, and connectivity to Carthage was strategically important for future growth in the market.