DT Midstream Files Q2 2024 10-Q

TL;DR

DT Midstream's Q2 10-Q is in - check financials for latest performance.

AI Summary

DT Midstream, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance for the second quarter and the first six months of 2024, comparing it to the same periods in 2023. Key financial figures and operational updates are provided, reflecting the company's ongoing business activities in natural gas transmission.

Why It Matters

This filing provides investors with the latest financial results and operational details for DT Midstream, Inc., crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information and risk factors that could impact the company's future performance.

Key Players & Entities

• DT Midstream, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240730 (date) — Filing date
• DETROIT (location) — Company headquarters city

FAQ

Key Financial Figures

• $0.01 — ch Registered Common stock, par value $0.01 DTM New York Stock Exchange Indicate
• $1.1 billion — 2029 Notes Senior unsecured notes of $1.1 billion in aggregate principal amount due June
• $1.0 billion — 2031 Notes Senior unsecured notes of $1.0 billion in aggregate principal amount due June
• $600 million — 31 2032 Notes Senior secured notes of $600 million in aggregate principal amount due April

Filing Documents

• dtm-20240630.htm (10-Q) — 1034KB
• a6302024ex311.htm (EX-31.1) — 10KB
• a6302024ex312.htm (EX-31.2) — 10KB
• a6302024ex321.htm (EX-32.1) — 5KB
• a6302024ex322.htm (EX-32.2) — 6KB
• a6302024ex951.htm (EX-95.1) — 22KB
• dtm-20240630_g1.gif (GRAPHIC) — 5KB
• 0001842022-24-000011.txt ( ) — 5581KB
• dtm-20240630.xsd (EX-101.SCH) — 32KB
• dtm-20240630_cal.xml (EX-101.CAL) — 64KB
• dtm-20240630_def.xml (EX-101.DEF) — 140KB
• dtm-20240630_lab.xml (EX-101.LAB) — 495KB
• dtm-20240630_pre.xml (EX-101.PRE) — 332KB
• dtm-20240630_htm.xml (XML) — 699KB

Forward-Looking Statements

Forward-Looking Statements 3

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements DT Midstream Con solidated Financial Stateme nts (Unaudited) 5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 11 Note 1 — Description of the Business and Basis of Presentation 11 Note 2 — Significant Accounting Policies 13 Note 3 — New Accounting Pronouncements 14 Note 4 — Goodwill 14 Note 5 — Revenue 15 Note 6 — Earnings Per Share and Dividends 17 Note 7 — Income Taxes 17 Note 8 — Fair Value 18 Note 9 — Debt 19 Note 10 — Commitments and Contingencies 20 Note 11 — Segment and Related Information 21 Note 12 — Subsequent Eve nts 22 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 32

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 4. Mine Safety Disclosure 32 Item 5. Other Information 32 Item 6. Exhibits 33 Signature 34 DEFINITIONS Unless the context otherwise requires, references to "we," "us," "our," "Registrant," or the "Company" and words of similar importance refer to DT Midstream and, unless otherwise specified, our consolidated subsidiaries and our unconsolidated joint ventures. As used in this Form 10-Q, the terms and definitions below have the following meanings: Appalachia Gathering A 149-mile gathering system that gathers Marcellus shale natural gas to the Texas Eastern Pipeline and Stonewall ASC 606 The Accounting Standards Codification of Revenue from Contracts with Customers issued by the FASB ASU Accounting Standards Update issued by the FASB Bcf Billion cubic feet of natural gas Bluestone A 65-mile gathering lateral pipeline and two compression facilities that gathers Marcellus shale natural gas to Millennium and the Tennessee Pipeline Blue Union Gathering A 424-mile gathering system that gathers shale natural gas from the Haynesville formation of Louisiana and Texas to markets in the Gulf Coast region Columbia Pipeline Columbia Gas Transmission, LLC, owned by TC Energy Corporation and Global Infrastructure Partners Credit Agreement DT Midstream's credit agreement which provides for the Term Loan Facility and Revolving Credit Facility DT Midstream DT Midstream, Inc. and our consolidated subsidiaries ETR Effective tax rate FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission GAAP Generally Accepted Accounting Principles in the United States Generation A 25-mile intrastate pipeline in northern Ohio and owned by NEXUS GHG Greenhouse gas Haynesville System Pipeline and gathering system which is comprised of LEAP, Blue Union Gathering and associated facilities Inflation Reduction Act The Inflation Reduction Act of 2022 (H.R. 5374) LEAP Louisiana Energy Access Project, a 210-

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain information presented herein includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and businesses of DT Midstream. 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 in connection with a discussion of future operating or financial performance may signify 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 associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; industry changes, including the impact of consolidations, alternative energy sources, technological advances, infrastructure constraints and changes in competition; 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; our ability to successfully and timely implement our business plan; our ability to complete organic growth projects on time and on budget; our ability to finance, complete, or successfully int

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements DT Midstream, Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (millions, except per share amounts) Revenues Operating revenues $ 244 $ 224 $ 484 $ 444 Operating Expenses Operation and maintenance 52 60 106 118 Depreciation and amortization 53 44 103 87 Taxes other than income 9 6 21 15 Asset (gains) losses and impairments, net — ( 3 ) — ( 3 ) Operating Income 130 117 254 227 Other (Income) and Deductions Interest expense 39 35 79 73 Interest income — ( 1 ) ( 1 ) ( 1 ) Earnings from equity method investees ( 39 ) ( 41 ) ( 85 ) ( 91 ) Other (income) and expense ( 3 ) — ( 3 ) ( 1 ) Income Before Income Taxes 133 124 264 247 Income Tax Expense 33 30 64 69 Net Income 100 94 200 178 Less: Net Income Attributable to Noncontrolling Interests 4 3 7 6 Net Income Attributable to DT Midstream $ 96 $ 91 $ 193 $ 172 Basic Earnings per Common Share Net Income Attributable to DT Midstream $ 0.99 $ 0.93 $ 1.99 $ 1.77 Diluted Earnings per Common Share Net Income Attributable to DT Midstream $ 0.98 $ 0.93 $ 1.97 $ 1.76 Weighted Average Common Shares Outstanding Basic 97.1 96.9 97.1 96.9 Diluted 97.9 97.4 97.8 97.4 See Notes to Consolidated Financial Statements (Unaudited) 5 DT Midstream, Inc. Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (millions) Net Income $ 100 $ 94 $ 200 $ 178 Foreign currency translation and unrealized gain on derivatives, net of tax — — — 1 Other comprehensive income — — — 1 Comprehensive income 100 94 200 179 Less: Comprehensive income attributable to noncontrolling interests 4 3 7 6 Comprehensive Income Attributable to DT Midstream $ 96 $ 91 $ 193 $ 173 See Notes to Consolidated Financial Statements (Unaudited) 6 DT Midstream, Inc. Consolidated Statements of Financial Position (Unaudited) June 30, Dec

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) NOTE 1 — 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. We provide multiple, integrated natural gas services to customers through two segments: (i) Pipeline, which includes interstate pipelines, intrastate pipelines, storage systems, gathering 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. Our Pipeline segment also includes joint venture interests in equity method investees which own and operate interstate pipelines that connect to our wholly owned assets. Our 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 our estimates. We believe the assumptions underlying these financial statements are reasonable. In our 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 June 30, 2024, results of operations for the three and six months ended June 30, 20

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) The following table summarizes the major line items in the Consolidated Statements of Financial Position for consolidated VIEs as of June 30, 2024 and December 31, 2023. All assets and liabilities of a consolidated VIE are included in the table when 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. June 30, December 31, 2024 2023 (millions) ASSETS (a) Cash $ 18 $ 13 Accounts receivable 11 10 Other current assets 1 2 Intangible assets, net 476 483 Property, plant and equipment, net 387 391 Goodwill 25 25 $ 918 $ 924 LIABILITIES (a) Accounts payable and other current liabilities $ 5 $ 4 Other noncurrent liabilities 3 3 $ 8 $ 7 _____________________________________ (a) Amounts shown are 100% of the consolidated VIEs' assets and liabilities. Related Parties Transactions between DT Midstream and our equity method investees have been presented as related party transactions in the accompanying Consolidated Financial Statements. Equity Method Investments Non-controlled investments are accounted for using the equity method of accounting when we are able to significantly influence the operating policies of the investee. Under the equity method of accounting, investments are recorded at historical cost as an asset and adjusted for capital contributions, dividends and distributions received, and our share of the investee's earnings or losses, which are recorded as earnings from equity method investees on the Consolidated Statements of Operations. Our equity method investments are periodically evalua

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) In May 2023, NEXUS closed on the sale of $ 750 million of senior unsecured notes with a weighted-average coupon rate of 5.52 %. We received a distribution from NEXUS of $ 371 million, net of fees and expenses, which reduced our investment balance. We used the proceeds from the distribution to repay borrowings outstanding under our Revolving Credit Facility. The following table presents summarized financial information of our 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: June 30, June 30, 2024 2023 2024 2023 (millions) Operating revenues $ 198 $ 199 $ 412 $ 410 Operating expenses 94 94 188 188 Net Income $ 91 $ 91 $ 194 $ 201 NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Cash and cash equivalents include cash in banks and highly liquid money market investments with remaining mat

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