DT Midstream, Inc. (NYSE: DTM) today announced first quarter 2023
reported net income of $81 million, or $0.84 per diluted share.
Operating Earnings for the quarter were $81 million, or $0.84 per
diluted share and Adjusted EBITDA was $225 million.
Reconciliations of Operating Earnings and
Adjusted EBITDA (non-GAAP measures) to reported net income are
included at the end of this news release. Starting with the first
quarter of 2023, the Adjusted EBITDA measure has been updated to
exclude the company’s proportional share of interest expense from
the company’s equity method investees.
“Our first quarter results place us firmly on
track for 2023,” said David Slater, President and CEO. “We also
made great progress on our expansion projects, which remain on
budget and on schedule.”
Slater noted the following accomplishments:
- Made significant progress on major
construction projects, with approximately 80% of overall growth
project capital cost de-risked through our spend-to-date and
committed procurement contracts
- Completed a successful $750 million
debt issuance at NEXUS Pipeline; the company will use its share of
the proceeds to fund organic growth and debt repayment
- Completed seismic surveys for our
carbon capture and sequestration project in Louisiana
“Our solid start to the year and the durability
of our business make us confident that we can achieve our goals for
this year and beyond,” said Jeff Jewell, Executive Vice President
and CFO.
The company has scheduled a conference call to
discuss results for 9 a.m. ET (8 a.m. CT) today. Investors, the
news media and the public may listen to a live internet broadcast
of the call at this link. The participant toll-free telephone
dial-in number in the U.S. and Canada is 888.330.2022, and the toll
number is 646.960.0690; the passcode is 8347152. International
access numbers are available here.
About DT Midstream
DT Midstream (NYSE: DTM) is an owner, operator
and developer of natural gas interstate and intrastate pipelines,
storage and gathering systems, compression, treatment and surface
facilities. The company transports clean natural gas for utilities,
power plants, marketers, large industrial customers and energy
producers across the Southern, Northeastern and Midwestern United
States and Canada. The Detroit-based company offers a
comprehensive, wellhead-to-market array of services, including
natural gas transportation, storage and gathering. DT Midstream is
transitioning towards net zero greenhouse gas emissions by 2050,
including a plan of achieving 30% of its carbon emissions reduction
by 2030. For more information, please visit the DT Midstream
website at www.dtmidstream.com.
Why DT Midstream Uses Operating
Earnings, Adjusted EBITDA and Distributable Cash Flow
Use of Operating Earnings Information –
Operating Earnings exclude non-recurring items, certain
mark-to-market adjustments and discontinued operations. DT
Midstream management believes that Operating Earnings provide a
more meaningful representation of the company’s earnings from
ongoing operations and uses Operating Earnings as the primary
performance measurement for external communications with analysts
and investors. Internally, DT Midstream uses Operating Earnings to
measure performance against budget and to report to the Board of
Directors.
Adjusted EBITDA is defined as GAAP net income
attributable to DT Midstream before expenses for interest, taxes,
depreciation and amortization, and loss from financing activities,
further adjusted to include the proportional share of net income
from equity method investees (excluding interest, taxes,
depreciation and amortization), and to exclude certain items the
company considers non-routine. DT Midstream believes Adjusted
EBITDA is useful to the company and external users of DT
Midstream’s financial statements in understanding operating results
and the ongoing performance of the underlying business because it
allows management and investors to have a better understanding of
actual operating performance unaffected by the impact of interest,
taxes, depreciation, amortization and non-routine charges noted in
the table below. We believe the presentation of Adjusted EBITDA is
meaningful to investors because it is frequently used by analysts,
investors and other interested parties in the midstream industry to
evaluate a company’s operating performance without regard to items
excluded from the calculation of such measure, which can vary
substantially from company to company depending on accounting
methods, book value of assets, capital structure and the method by
which assets were acquired, among other factors. DT Midstream uses
Adjusted EBITDA to assess the company’s performance by reportable
segment and as a basis for strategic planning and forecasting.
Distributable Cash Flow (DCF) is calculated by
deducting earnings from equity method investees, depreciation and
amortization attributable to noncontrolling interests, cash
interest expense, maintenance capital investment (as defined
below), and cash taxes from, and adding interest expense, income
tax expense, depreciation and amortization, certain items we
consider non-routine and dividends and distributions from equity
method investees to, Net Income Attributable to DT Midstream.
Maintenance capital investment is defined as the total capital
expenditures used to maintain or preserve assets or fulfill
contractual obligations that do not generate incremental earnings.
We believe DCF is a meaningful performance measurement because it
is useful to us and external users of our financial statements in
estimating the ability of our assets to generate cash earnings
after servicing our debt, paying cash taxes and making maintenance
capital investments, which could be used for discretionary purposes
such as common stock dividends, retirement of debt or expansion
capital expenditures.
Forward-Looking Statements
This release contains statements which, to the
extent they are not statements of historical or present fact,
constitute “forward-looking statements” under the securities laws.
These forward-looking statements are intended to provide
management’s current expectations or plans for our future operating
and financial performance, business prospects, outcomes of
regulatory proceedings, market conditions, and other matters, based
on what we believe to be reasonable assumptions and on information
currently available to us.
Forward-looking statements can be identified by
the use of words such as “believe,” “expect,” “expectations,”
“plans,” “strategy,” “prospects,” “estimate,” “project,” “target,”
“anticipate,” “will,” “should,” “see,” “guidance,” “outlook,”
“confident” and other words of similar meaning. The absence of such
words, expressions or statements, however, does not mean that the
statements are not forward-looking. In particular, express or
implied statements relating to future earnings, cash flow, results
of operations, uses of cash, tax rates and other measures of
financial performance, future actions, conditions or events,
potential future plans, strategies or transactions of DT Midstream,
and other statements that are not historical facts, are
forward-looking statements.
Forward-looking statements are not guarantees of
future results and conditions, but rather are subject to numerous
assumptions, risks, and uncertainties that may cause actual future
results to be materially different from those contemplated,
projected, estimated, or budgeted. Many factors may impact
forward-looking statements of DT Midstream including, but not
limited to, the following: changes in general economic conditions,
including increases in interest rates and the impact of inflation
on our business; competitive conditions in our industry; global
supply chain disruptions; actions taken by third-party operators,
processors, transporters and gatherers; changes in expected
production from Southwestern Energy and other third parties in our
areas of operation; demand for natural gas gathering, transmission,
storage, transportation and water services; the availability and
price of natural gas to the consumer compared to the price of
alternative and competing fuels; competition from the same and
alternative energy sources; our ability to successfully implement
our business plan; our ability to complete organic growth projects
on time and on budget; our ability to finance, complete, or
successfully integrate acquisitions; the price and availability of
debt and equity financing; restrictions in our existing and any
future credit facilities and indentures; energy efficiency and
technology trends; changing laws regarding cyber security and data
privacy, and any cyber security threat or event; operating hazards,
environmental risks, and other risks incidental to gathering,
storing and transporting natural gas; changes in environmental
laws, regulations or enforcement policies, including laws and
regulations relating to climate change and greenhouse gas
emissions; natural disasters, adverse weather conditions, casualty
losses and other matters beyond our control; the impact of
outbreaks of illnesses, epidemics and pandemics, and any related
economic effects; the ongoing conflict between Russia and Ukraine,
including resulting commodity price volatility and risk of
cyber-based attacks; labor relations and markets, including the
ability to attract, hire and retain key employee and contract
personnel; large customer defaults; changes in tax status, as well
as changes in tax rates and regulations; ability to develop low
carbon business opportunities and deploy greenhouse gas reducing
technologies; the effects of existing and future laws and
governmental regulations; changes in insurance markets impacting
costs and the level and types of coverage available; the timing and
extent of changes in commodity prices; the suspension, reduction or
termination of our customers’ obligations under our commercial
agreements; disruptions due to equipment interruption or failure at
our facilities, or third-party facilities on which our business is
dependent; the effects of future litigation; the qualification of
the spin-off of DT Midstream from DTE Energy ("the Spin-Off") as a
tax-free distribution; the allocation of tax attributes from DTE
Energy in accordance with the agreement that governs the respective
rights, responsibilities and obligations of DTE Energy and DT
Midstream after the Spin-Off with respect to all tax matters; and
the risks described in our Annual Report on Form 10-K for the year
ended December 31, 2022 and our reports and registration statements
filed from time to time with the SEC.
The above list of factors is not exhaustive. New
factors emerge from time to time. We cannot predict what factors
may arise or how such factors may cause actual results to vary
materially from those stated in forward-looking statements, see the
discussion under the section entitled “Risk Factors” in our Annual
Report for the year ended December 31, 2022, filed with the SEC on
Form 10-K and any other reports filed with the SEC. Given the
uncertainties and risk factors that could cause our actual results
to differ materially from those contained in any forward-looking
statement, you should not put undue reliance on any forward-looking
statements.
Any forward-looking statements speak only as of
the date on which such statements are made. We are under no
obligation to, and expressly disclaim any obligation to, update or
alter our forward-looking statements, whether as a result of new
information, subsequent events or otherwise.
|
DT
Midstream, Inc. Reconciliation of Reported to
Operating Earnings (non-GAAP) |
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Three Months Ended |
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March 31, |
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December 31, |
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2023 |
|
2022 |
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Reported Earnings |
|
Pre-tax Adjustments |
|
Income Taxes (1) |
|
Operating Earnings |
|
Reported Earnings |
|
Pre-tax Adjustments |
|
Income Taxes (1) |
|
Operating Earnings |
|
|
(millions) |
|
Equity method investee
goodwill impairment |
|
|
$ |
— |
|
$ |
— |
|
|
|
|
|
$ |
7 |
A |
$ |
(1 |
) |
|
|
|
Net Income Attributable to DT Midstream |
$ |
81 |
|
$ |
— |
|
$ |
— |
|
$ |
81 |
|
$ |
85 |
|
$ |
7 |
|
$ |
(1 |
) |
|
$ |
91 |
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Three Months Ended |
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March 31, |
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March 31, |
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|
2023 |
|
2022 |
|
|
Reported Earnings |
|
Pre-tax Adjustments |
|
Income Taxes(1) |
|
Operating Earnings |
|
Reported Earnings |
|
Pre-tax Adjustments |
|
Income Taxes(1) |
|
Operating Earnings |
|
|
(millions) |
|
Adjustments |
|
|
$ |
— |
|
$ |
— |
|
|
|
|
|
$ |
— |
|
$ |
— |
|
|
|
|
Net Income
Attributable to DT Midstream |
$ |
81 |
|
$ |
— |
|
$ |
— |
|
$ |
81 |
|
$ |
81 |
|
$ |
— |
|
$ |
— |
|
|
$ |
81 |
|
|
|
|
|
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(1 |
) |
Excluding tax
related adjustments, the amount of income taxes was calculated
based on a combined federal and state income tax rate, considering
the applicable jurisdictions of the respective segments and
deductibility of specific operating adjustments |
Adjustments Key |
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A |
Equity method
investee goodwill impairment — recorded in Earnings from equity
method investees |
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DT
Midstream, Inc. Reconciliation of Reported to
Operating Earnings per diluted share (2)
(non-GAAP) |
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Three Months Ended |
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|
March 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
|
Reported Earnings |
|
Pre-tax Adjustments |
|
Income Taxes (1) |
|
Operating Earnings |
|
Reported Earnings |
|
Pre-tax Adjustments |
|
Income Taxes (1) |
|
Operating Earnings |
|
|
(per share) |
|
Equity method investee
goodwill impairment |
|
|
$ |
— |
|
$ |
— |
|
|
|
|
|
$ |
0.08 |
A |
$ |
(0.03 |
) |
|
|
|
Net Income Attributable to DT Midstream |
$ |
0.84 |
|
$ |
— |
|
$ |
— |
|
$ |
0.84 |
|
$ |
0.88 |
|
$ |
0.08 |
|
$ |
(0.03 |
) |
|
$ |
0.93 |
|
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|
Three Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Reported Earnings |
|
Pre-tax Adjustments |
|
IncomeTaxes(1) |
|
Operating Earnings |
|
Reported Earnings |
|
Pre-tax Adjustments |
|
IncomeTaxes(1) |
|
Operating Earnings |
|
|
(per share) |
|
Adjustments |
|
|
$ |
— |
|
$ |
— |
|
|
|
|
|
$ |
— |
|
$ |
— |
|
|
|
|
Net Income
Attributable to DT Midstream |
$ |
0.84 |
|
$ |
— |
|
$ |
— |
|
$ |
0.84 |
|
$ |
0.84 |
|
$ |
— |
|
$ |
— |
|
|
$ |
0.84 |
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(1 |
) |
Excluding tax
related adjustments, the amount of income taxes was calculated
based on a combined federal and state income tax rate, considering
the applicable jurisdictions of the respective segments and
deductibility of specific operating adjustments |
(2 |
) |
Per share amounts
are divided by Weighted Average Common Shares Outstanding —
Diluted, as noted on the Consolidated Statements of Operations |
Adjustments Key |
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|
A |
Equity method
investee goodwill impairment — recorded in Earnings from equity
method investees |
|
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DT
Midstream, Inc. Reconciliation of Net Income
Attributable to DT Midstream to Adjusted EBITDA
(non-GAAP) |
|
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|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
|
Consolidated |
(millions) |
|
Net Income Attributable to DT Midstream |
$ |
81 |
|
|
$ |
85 |
|
|
$ |
81 |
|
|
Plus: Interest expense |
|
38 |
|
|
|
38 |
|
|
|
31 |
|
|
Plus: Income tax expense |
|
39 |
|
|
|
35 |
|
|
|
25 |
|
|
Plus: Depreciation and
amortization |
|
43 |
|
|
|
44 |
|
|
|
42 |
|
|
Plus: EBITDA from equity
method investees (1) |
|
75 |
|
|
|
66 |
|
|
|
51 |
|
|
Plus: Adjustments for
non-routine items (2) |
|
— |
|
|
|
7 |
|
|
|
— |
|
|
Less: Interest income |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
Less: Earnings from equity
method investees |
|
(50 |
) |
|
|
(43 |
) |
|
|
(36 |
) |
|
Less: Depreciation and
amortization attributable to noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
Adjusted EBITDA |
$ |
225 |
|
|
$ |
230 |
|
|
$ |
193 |
|
|
|
|
|
|
|
|
(1 |
) |
Includes share of
our equity method investees’ earnings before interest, taxes,
depreciation and amortization, which we refer to as “EBITDA.” A
reconciliation of earnings from equity method investees to EBITDA
from equity method investees follows: |
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
(millions) |
|
Earnings from equity methods
investees |
$ |
50 |
|
|
$ |
43 |
|
|
$ |
36 |
|
|
Plus: Depreciation and
amortization attributable to equity method investees |
|
21 |
|
|
|
20 |
|
|
|
13 |
|
|
Plus: Interest expense
attributable to equity method investees |
|
4 |
|
|
|
3 |
|
|
|
2 |
|
|
EBITDA from equity method
investees |
$ |
75 |
|
|
$ |
66 |
|
|
$ |
51 |
|
|
|
|
|
|
|
|
(2 |
) |
Adjusted EBITDA
calculation excludes certain items we consider non-routine. For the
three months ended December 31, 2022, adjustments for non-routine
items included an equity method investee goodwill impairment of
$7 million. |
|
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DT
Midstream, Inc. Reconciliation of Net Income
Attributable to DT Midstream to Adjusted
EBITDAPipeline Segment (non-GAAP) |
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|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
|
Pipeline |
(millions) |
|
Net Income Attributable to DT Midstream |
$ |
57 |
|
|
$ |
58 |
|
|
$ |
48 |
|
|
Plus: Interest expense |
|
16 |
|
|
|
16 |
|
|
|
13 |
|
|
Plus: Income tax expense |
|
28 |
|
|
|
22 |
|
|
|
16 |
|
|
Plus: Depreciation and
amortization |
|
16 |
|
|
|
17 |
|
|
|
16 |
|
|
Plus: EBITDA from equity
method investees (1) |
|
75 |
|
|
|
66 |
|
|
|
51 |
|
|
Plus: Adjustments for
non-routine items (2) |
|
— |
|
|
|
7 |
|
|
|
— |
|
|
Less: Earnings from equity
method investees |
|
(50 |
) |
|
|
(43 |
) |
|
|
(36 |
) |
|
Less: Depreciation and
amortization attributable to noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
Adjusted EBITDA |
$ |
141 |
|
|
$ |
142 |
|
|
$ |
107 |
|
|
|
|
|
|
|
|
(1 |
) |
Includes share of
our equity method investees’ earnings before interest, taxes,
depreciation and amortization, which we refer to as “EBITDA.” A
reconciliation of earnings from equity method investees to EBITDA
from equity method investees follows: |
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
|
|
(millions) |
|
Earnings from equity methods
investees |
$ |
50 |
|
|
$ |
43 |
|
|
$ |
36 |
|
|
Plus: Depreciation and
amortization attributable to equity method investees |
|
21 |
|
|
|
20 |
|
|
|
13 |
|
|
Plus: Interest expense
attributable to equity method investees |
|
4 |
|
|
|
3 |
|
|
|
2 |
|
|
EBITDA from equity method
investees |
$ |
75 |
|
|
$ |
66 |
|
|
$ |
51 |
|
|
|
|
|
|
|
|
(2 |
) |
Adjusted EBITDA
calculation excludes certain items we consider non-routine. For the
three months ended December 31, 2022, adjustments for non-routine
items included an equity method investee goodwill impairment of
$7 million. |
|
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|
|
|
|
|
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|
DT
Midstream, Inc. Reconciliation of Net Income
Attributable to DT Midstream to Adjusted
EBITDAGathering Segment (non-GAAP) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
|
Gathering |
(millions) |
|
Net Income Attributable to DT Midstream |
$ |
24 |
|
$ |
27 |
|
|
$ |
33 |
|
Plus: Interest expense |
|
22 |
|
|
22 |
|
|
|
18 |
|
Plus: Income tax expense |
|
11 |
|
|
13 |
|
|
|
9 |
|
Plus: Depreciation and
amortization |
|
27 |
|
|
27 |
|
|
|
26 |
|
Less: Interest income |
|
— |
|
|
(1 |
) |
|
|
— |
|
Adjusted EBITDA |
$ |
84 |
|
$ |
88 |
|
|
$ |
86 |
|
|
|
|
|
|
|
|
|
|
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DT
Midstream, Inc. Reconciliation of Net Income
Attributable to DT Midstream to Distributable Cash Flow
(non-GAAP) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
|
|
(millions) |
|
Net Income Attributable to DT Midstream |
$ |
81 |
|
|
$ |
85 |
|
|
$ |
81 |
|
|
Plus: Interest expense |
|
38 |
|
|
|
38 |
|
|
|
31 |
|
|
Plus: Income tax expense |
|
39 |
|
|
|
35 |
|
|
|
25 |
|
|
Plus: Depreciation and
amortization |
|
43 |
|
|
|
44 |
|
|
|
42 |
|
|
Less: Earnings from equity
method investees |
|
(50 |
) |
|
|
(43 |
) |
|
|
(36 |
) |
|
Less: Depreciation and
amortization attributable to noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
Plus: Dividends and
distributions from equity method investees |
|
82 |
|
|
|
70 |
|
|
|
50 |
|
|
Less: Cash interest
expense |
|
(6 |
) |
|
|
(66 |
) |
|
|
(6 |
) |
|
Less: Cash taxes |
|
— |
|
|
|
(15 |
) |
|
|
(1 |
) |
|
Less: Maintenance capital
investment (1) |
|
(3 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
Distributable Cash Flow |
$ |
223 |
|
|
$ |
140 |
|
|
$ |
182 |
|
|
|
|
|
|
|
|
(1 |
) |
Maintenance
capital investment is defined as the total capital expenditures
used to maintain or preserve assets or fulfill contractual
obligations that do not generate incremental earnings. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations
Todd Lohrmann, DT Midstream, 313.774.2424
investor_relations@dtmidstream.com
Grafico Azioni DT Midstream (NYSE:DTM)
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Da Set 2024 a Ott 2024
Grafico Azioni DT Midstream (NYSE:DTM)
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