- Updates 2023 Adjusted EBITDA guidance to
$905 to$925 million - Updates 2023 Distributable Cash Flow guidance to
$650 to$675 million - Announces dividend of
$0.69 per share
Reconciliations of operating earnings and adjusted EBITDA (non-GAAP measures) to reported net income are included at the end of this news release.
The company also announced that the DT Midstream Board of Directors declared a
“We had another great quarter, and we remain confident in our ability to deliver on our full-year plan,” said
Slater noted the following accomplishments:
- LEAP Phase 1 expansion project placed in-service ahead of schedule in late August
- Ohio Utica System construction is progressing ahead of schedule, with an expected in-service date of Q1 2024
- NEXUS Pipeline added approximately 50 MMcf/d of additional leased capacity
“Our third quarter financial results increase our confidence in meeting our financial goals for the year,” said
The company has scheduled a conference call to discuss results for
About
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.
Adjusted EBITDA is defined as GAAP net income attributable to
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
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
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
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
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.
Reconciliation of Reported to Operating Earnings (non-GAAP) | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
2023 | 2023 | ||||||||||||||||||||||||||
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 | $ | 91 | $ | — | $ | — | $ | 91 | $ | 91 | $ | — | $ | — | $ | 91 | |||||||||||
Nine Months Ended | |||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||
Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | (25 | ) | A | ||||||||||||||||||
Gain on sale | — | — | (17 | ) | B | 5 | |||||||||||||||||||||
Net Income Attributable to | $ | 263 | $ | — | $ | — | $ | 263 | $ | 285 | $ | (17 | ) | $ | (20 | ) | $ | 248 | |||||||||
(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 | |||||||||||||||||||||||||||
A | |||||||||||||||||||||||||||
B | Gain on sale of certain assets in the | ||||||||||||||||||||||||||
Reconciliation of Reported to Operating Earnings per diluted share (2) (non-GAAP) | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
2023 | 2023 | ||||||||||||||||||||||||||
Reported Earnings | Pre-tax Adjustments | Income Taxes (1) | Operating Earnings | Reported Earnings | Pre-tax Adjustments | Income Taxes (1) | Operating Earnings | ||||||||||||||||||||
(per share) | |||||||||||||||||||||||||||
Adjustments | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net Income Attributable to | $ | 0.94 | $ | — | $ | — | $ | 0.94 | $ | 0.93 | $ | — | $ | — | $ | 0.93 | |||||||||||
Nine Months Ended | |||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||
Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | ||||||||||||||||||||
(per share) | |||||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | (0.26 | ) | A | ||||||||||||||||||
Gain on sale | — | — | (0.17 | ) | B | 0.04 | |||||||||||||||||||||
Net Income Attributable to | $ | 2.70 | $ | — | $ | — | $ | 2.70 | $ | 2.94 | $ | (0.17 | ) | $ | (0.22 | ) | $ | 2.55 | |||||||||
(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 | |||||||||||||||||||||||||||
A | |||||||||||||||||||||||||||
B | Gain on sale of certain assets in the | ||||||||||||||||||||||||||
Reconciliation of Net Income Attributable to | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
2023 | 2023 | 2023 | 2022 | ||||||||||||||
Consolidated | (millions) | ||||||||||||||||
Net Income Attributable to | $ | 91 | $ | 91 | $ | 263 | $ | 285 | |||||||||
Plus: Interest expense | 38 | 35 | 111 | 99 | |||||||||||||
Plus: Income tax expense | 33 | 30 | 102 | 65 | |||||||||||||
Plus: Depreciation and amortization | 46 | 44 | 133 | 126 | |||||||||||||
Plus: Loss from financing activities | — | — | — | 13 | |||||||||||||
Plus: EBITDA from equity method investees (1) | 70 | 67 | 212 | 150 | |||||||||||||
Plus: Adjustments for non-routine items (2) | — | — | — | (17 | ) | ||||||||||||
Less: Interest income | — | (1 | ) | (1 | ) | (2 | ) | ||||||||||
Less: Earnings from equity method investees | (41 | ) | (41 | ) | (132 | ) | (107 | ) | |||||||||
Less: Depreciation and amortization attributable to noncontrolling interests | (1 | ) | (1 | ) | (3 | ) | (2 | ) | |||||||||
Adjusted EBITDA | $ | 236 | $ | 224 | $ | 685 | $ | 610 | |||||||||
(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 | Nine Months Ended | ||||||||||||||||
2023 | 2023 | 2023 | 2022 | ||||||||||||||
(millions) | |||||||||||||||||
Earnings from equity methods investees | $ | 41 | $ | 41 | $ | 132 | $ | 107 | |||||||||
Plus: Depreciation and amortization attributable to equity method investees | 20 | 20 | 61 | 36 | |||||||||||||
Plus: Interest expense attributable to equity method investees | 9 | 6 | 19 | 7 | |||||||||||||
EBITDA from equity method investees | $ | 70 | $ | 67 | $ | 212 | $ | 150 | |||||||||
(2 | ) | Adjusted EBITDA calculation excludes certain items we consider non-routine. For the nine months ended | |||||||||||||||
Reconciliation of Net Income Attributable to Pipeline Segment (non-GAAP) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
2023 | 2023 | 2023 | 2022 | ||||||||||||||
Pipeline | (millions) | ||||||||||||||||
Net Income Attributable to | $ | 64 | $ | 64 | $ | 185 | $ | 170 | |||||||||
Plus: Interest expense | 13 | 13 | 42 | 41 | |||||||||||||
Plus: Income tax expense | 23 | 21 | 72 | 40 | |||||||||||||
Plus: Depreciation and amortization | 17 | 17 | 50 | 46 | |||||||||||||
Plus: Loss from financing activities | — | — | — | 6 | |||||||||||||
Plus: EBITDA from equity method investees (1) | 70 | 67 | 212 | 150 | |||||||||||||
Less: Interest income | — | (1 | ) | (1 | ) | (1 | ) | ||||||||||
Less: Earnings from equity method investees | (41 | ) | (41 | ) | (132 | ) | (107 | ) | |||||||||
Less: Depreciation and amortization attributable to noncontrolling interests | (1 | ) | (1 | ) | (3 | ) | (2 | ) | |||||||||
Adjusted EBITDA | $ | 145 | $ | 139 | $ | 425 | $ | 343 | |||||||||
(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 | Nine Months Ended | ||||||||||||||||
2023 | 2023 | 2023 | 2022 | ||||||||||||||
(millions) | |||||||||||||||||
Earnings from equity methods investees | $ | 41 | $ | 41 | $ | 132 | $ | 107 | |||||||||
Plus: Depreciation and amortization attributable to equity method investees | 20 | 20 | 61 | 36 | |||||||||||||
Plus: Interest expense attributable to equity method investees | 9 | $ | 6 | 19 | 7 | ||||||||||||
EBITDA from equity method investees | $ | 70 | $ | 67 | $ | 212 | $ | 150 | |||||||||
Reconciliation of Net Income Attributable to Gathering Segment (non-GAAP) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
2023 | 2023 | 2023 | 2022 | |||||||||||
Gathering | (millions) | |||||||||||||
Net Income Attributable to | $ | 27 | $ | 27 | $ | 78 | $ | 115 | ||||||
Plus: Interest expense | 25 | 22 | 69 | 58 | ||||||||||
Plus: Income tax expense | 10 | 9 | 30 | 25 | ||||||||||
Plus: Depreciation and amortization | 29 | 27 | 83 | 80 | ||||||||||
Plus: Loss from financing activities | — | — | — | 7 | ||||||||||
Plus: Adjustments for non-routine items (1) | — | — | — | (17 | ) | |||||||||
Less: Interest income | — | — | — | (1 | ) | |||||||||
Adjusted EBITDA | $ | 91 | $ | 85 | $ | 260 | $ | 267 | ||||||
(1 | ) | Adjusted EBITDA calculation excludes certain items we consider non-routine. For the nine months ended | ||||||||||||
Reconciliation of Net Income Attributable to | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
2023 | 2023 | 2023 | 2022 | ||||||||||||||
(millions) | |||||||||||||||||
Net Income Attributable to | $ | 91 | $ | 91 | $ | 263 | $ | 285 | |||||||||
Plus: Interest expense | 38 | 35 | 111 | 99 | |||||||||||||
Plus: Income tax expense | 33 | 30 | 102 | 65 | |||||||||||||
Plus: Depreciation and amortization | 46 | 44 | 133 | 126 | |||||||||||||
Plus: Loss from financing activities | — | — | — | 13 | |||||||||||||
Plus: Adjustments for non-routine items (1) | — | (371 | ) | (371 | ) | (17 | ) | ||||||||||
Less: Earnings from equity method investees | (41 | ) | (41 | ) | (132 | ) | (107 | ) | |||||||||
Less: Depreciation and amortization attributable to noncontrolling interests | (1 | ) | (1 | ) | (3 | ) | (2 | ) | |||||||||
Plus: Dividends and distributions from equity method investees | 48 | 427 | 557 | 128 | |||||||||||||
Less: Cash interest expense | (7 | ) | (63 | ) | (76 | ) | (59 | ) | |||||||||
Less: Cash taxes | (3 | ) | (18 | ) | (21 | ) | (9 | ) | |||||||||
Less: Maintenance capital investment (2) | (11 | ) | (8 | ) | (22 | ) | (15 | ) | |||||||||
Distributable Cash Flow | $ | 193 | $ | 125 | $ | 541 | $ | 507 | |||||||||
(1 | ) | Distributable Cash Flow calculation excludes certain items we consider non-routine. For the three months ended | |||||||||||||||
(2 | ) | 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 RelationsTodd Lohrmann ,DT Midstream , 313.774.2424 investor_relations@dtmidstream.com
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