DT Midstream (DTM) Q4 2023 earnings summary

Executive summary

• FY 2023 Adjusted EBITDA reached $924M, up 10% YoY and above guidance; Q4 Adjusted EBITDA was $239M.

• Major expansion projects were completed ahead of schedule and on budget, supporting expected growth over the next two years.

Financial highlights

• FY 2023 Operating Earnings and net income were $384M; Operating EPS was $3.94, each up 13% YoY.

• FY 2023 Adjusted EBITDA rose from $841M to $924M; growth capital was $677M and maintenance capital was $29M.

• Q4 Adjusted EBITDA was $239M; Operating Earnings and net income were $121M, with Operating EPS of $1.24.

• FY 2023 Distributable Cash Flow was $700M, up from $647M in 2022.

Outlook and guidance

• 2024 guidance: Adjusted EBITDA $930M-$980M; Operating Earnings $335M-$375M; Operating EPS $3.43-$3.83; DCF $640M-$700M.

• 2024 capital expenditure guidance is $330M-$415M, including $300M-$375M growth capex and $30M-$40M maintenance capital; growth capex is net of ~$20M customer contribution.

• Early 2025 Adjusted EBITDA outlook is $980M-$1.04B, representing 6% growth from 2024; long-term targets are 5%-7% annual growth in Adjusted EBITDA and dividends.

• 2024 growth capex is expected to be funded within cash flow after dividends; excess cash flow is intended for debt reduction.

• LEAP phase 3 is ahead of schedule; a similar overall growth investment level is expected in 2025 as in 2024.