DT Midstream (DTM) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 net income of $96 million and Adjusted EBITDA of $248 million, reaffirming full-year Adjusted EBITDA guidance and early 2025 outlook.

• Early and on-budget completion of LEAP Phase 3 expansion increased Haynesville System capacity to 1.9 Bcf/d, with new agreements to connect three East Texas producers.

• Advanced energy transition initiatives, including a Louisiana carbon capture project and a new clean fuels gathering project targeting fugitive coal mine methane.

• Maintained a focus on long-term natural gas infrastructure demand, environmental stewardship, and net zero carbon emissions by 2050.

• Moody's and Fitch issued positive rating outlooks, positioning for a potential investment grade upgrade.

Financial highlights

• Q2 2024 net income was $96 million, Adjusted EBITDA was $248 million, and operating EPS was $0.98.

• Distributable Cash Flow for Q2 2024 was $160 million, with growth capital expenditures of $75 million and maintenance capital at $6 million.

• Q2 2024 operating revenues were $244 million, up from $224 million in Q2 2023; six-month revenues reached $484 million.

• Dividend per share for Q2 2024 was $0.735, with a target of 5%-7% annual growth.

• Cash flow from operating activities for the first half of 2024 was $406 million.

Outlook and guidance

• Reaffirmed 2024 Adjusted EBITDA guidance at $930–$980 million and 2025 early outlook at $980–$1,040 million.

• 2024 Operating EPS guidance: $3.43–$3.83; growth capital guidance range raised to $330–$375 million.

• Anticipate a ramp in gathering volumes and EBITDA in Q4, driven by new projects and improved market conditions.

• Expect to spend within free cash flow in 2024 and 2025, maintaining disciplined capital allocation.

• Expects to grow dividends 5% to 7% annually over the long term, subject to board approval and financial performance.