Welcome to the DT Midstream, Inc. fourth quarter and year-end 2024 earnings call. I will now turn it over to our speaker today, Todd Lohrmann, Director of Investor Relations. Please go ahead.

Good morning, and welcome, everyone. Before we get started, I would like to remind you to read the Safe Harbor statement on page two of the presentation, including the reference to forward-looking statements. Our presentation also includes references to non-GAAP financial measures. Please refer to the reconciliation to GAAP contained in the appendix. Joining me this morning are David Slater, President and CEO, and Jeff Jewell, Executive Vice President and CFO. With that, I'll go ahead and turn the call over to David.

Thanks, Todd, and good morning, everyone, and thank you for joining. During today's call, I'll discuss our 2024 accomplishments, provide an update on our organic growth projects, our recent Midwest pipeline acquisition, and our outlook for 2025 and beyond. I'll then close with some observations on the overall gas market before turning it over to Jeff to review our financial performance and guidance. So with that, 2024 was another strong year for DT Midstream, Inc. I'd like to commend our employees for their continued dedication and commitment to excellence, including their exceptional safety performance, finishing the year with zero OSHA recordable safety incidences. Very well done, everyone. I'd also like to welcome to DT Midstream, Inc. all the new employees that joined the team from One Oak following our Midwest pipeline acquisition. These professionals have strengthened our organization with their deep expertise in operating FERC assets. Turning now to our financial results, we delivered adjusted EBITDA of $969 million, which exceeded our increased guidance midpoint and was another record high year, extending our track record of 10% compounded annual growth since we spun the company in 2021. At the end of the year, we closed on the acquisition for OneNote, expanding our FERC interstate natural gas pipeline network. The transition of these pipes to DT Midstream, Inc. has been resting well, and the team is busy integrating these assets into our network. On the construction front, we had solid execution of projects across our footprint, on schedule and on budget. Our Haynesville construction team placed several key growth projects into service, enhancing both the supply and market connectivity of the network. We also placed our Ohio Utica system into service with our anchor customer noting the resource there continues to meet or exceed expectations, providing confidence in the premium quality…

So with that, I'll pass it over to Jeff to walk you through our financial results and outlook.

Thanks, David, and good morning, everyone. As David mentioned, we delivered overall 2024 adjusted EBITDA of $969 million, an increase of 5% over the prior year, supported by our pipeline segment's 7% growth year over year, which was driven by new LEAP expansions and higher storage revenue. For the fourth quarter, we delivered overall adjusted EBITDA of $235 million. Our pipeline segment was in line with the prior quarter, driven by increased seasonal demand at our storage facility and on our JV pipelines, offset by transaction costs related to our Midwest pipeline acquisition. Our Gathering segment results were $6 million lower than the prior quarter, driven by producer deferrals of production to Q1 of 2025 and a key producer customer unplanned outage resulting in lower Haynesville volumes. Operationally for the quarter, total gathering volumes across the Haynesville averaged just above 1.4 Bcf per day, down from the third quarter, driven by the deferrals and the key customer outage I previously mentioned. Volumes in the northeast were flat quarter over quarter. In 2025, volumes appear to be responding positively to the improved natural gas price environment, with Haynesville volumes averaging 1.6 Bcf per day thus far in the year. Now moving on to our financial outlook for 2025 and beyond. As we have done in the past, we are providing the current year guidance as well as an early outlook for next year. For 2025, our adjusted EBITDA guidance range is $1.95 billion to $2.155 billion, representing 18% growth from our 2024 original guidance. Our 2026 early outlook range for adjusted EBITDA is $2.155 billion to $2.225 billion, with the midpoint representing a 6% increase over the 2025 guidance midpoint. Our adjusted EBITDA guidance for 2025 and 2026 is supported by the incremental contribution from our growth investments, including the integration…

Thanks, Jeff. So in summary, we are highly confident in delivering on our full-year guidance for 2025 and early outlook for 2026, continuing our track record of strong performance. Looking forward, the market fundamentals supporting our pipeline business are very positive. It certainly feels like we are entering the golden age for energy infrastructure investment. Our pure-play natural gas pipeline asset portfolio is very well-positioned to take advantage of this opportunity, with their integrated assets providing critical capacity to premium and growing demand markets. We continue to remain laser-focused on advancing our sizable organic project backlog, delivering long-term value creation to our shareholders, and supporting a reliable growing dividend. And with that, we can now open up the lines for questions.

Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Your first question comes from Michael Blum with Wells Fargo. Please go ahead.

Thanks. Good morning, everybody.

Good morning, Michael.

So before I definitely want to ask about the two new projects, but before I do, just want to level set. You have been, I think, before talking about six or more lateral data center-related projects that you have been pursuing. I thought those were behind the meter. So I guess the first question is, are the two announcements today front of the meter in addition to those, or are those part of what you've been pursuing?

No. Those are new and in addition to meter opportunities, Michael. So these I would call these utility-scale, you know, direct utility-scale power generation opportunities.

Great. Perfect. And then on the projects, I'm just wondering, on the Midwest and Appalachia projects, anything you can give us in terms of CapEx, expected returns, and then for the Midwest project, what the length of the contract would look like. Thanks.

Yeah. I'd say we'll start with the one off Midwestern. We're going to build a relatively short lateral over to this facility, and the customer is committing to term firm capacity on the mainline. We'll build this under a blanket authorization, so that'll give you a sense of the capital size here. It's, you know, fairly modest from a capital perspective but layers on a really nice long-term load onto the network that we're really excited about. And, you know, this transaction happened literally right out of the gate with the new assets. So no, I'd say we're really pleased, you know, two months into it with how we view these assets coming into the portfolio and the opportunity set that they're gonna provide, and that's all reflected in the increased backlog that we've disclosed to the shareholders today. If we switch over to Appalachia, that project's been in the works for a number of years with a large power developer. It's in the PJMQ. It's also been through the West Virginia PSC process. It'll hang off of the Stonewall system and have burn capacity across the entire network, our gathering network, Stonewall, and Appalachian Gas gathering system. And again, it's, you know, they haven't FID-ed the plant yet, so they expect to do that early next year. And then we would commence construction to serve that plant. And again, that's a long-term contract, a 20-year contract with a brand new combined cycle power plant that sits in a really nice spot inside the PGM system.

Thank you.

Your next question comes from Theresa Chen with Barclays. Please go ahead.

Morning. For the broader updated $2.3 billion backlog, can you just remind us your expected returns and any sort of, like, economic terms on beef as well as the process that you're pursuing from here?

Sure, Theresa. Yeah. I think we've pretty consistently been sharing five to eight times multiple in terms of proxy for returns on these projects, and nothing has changed there. So obviously, we're trying to get the lowest multiple possible on all of our projects, but I think that band is a good calibration for the investors in terms of how we view our capital deployment. And the two projects that we announced today comfortably fall into that band.

Got it. And on the macro front, on the heels of the weather tailwinds, the LNG speed gas ramping higher, the drawdowns of inventory, better pricing as a result, based on your conversations with your producer customers, what are your views on the pace of production recovery across your footprint from here through the remainder of this year and into next? Maybe just, you know, kind of asking what does the near term look that's analogous to slide twenty eight?

Yeah. Well, why don't we just talk about this year because I'm not sure that many of the public producers are even talking about next year yet. So I think the way to think about it for our guidance is we are expecting to see Haynesville volumes ramp over the year in our portfolio, and I think Jeff mentioned it in the call this morning in his remarks that we're already seeing a ramp from kind of the exit rate in 2024 to where we are today. And then we're expecting Appalachia volumes to be relatively flat across the footprint. You know, it's different by system. We have four different systems in Appalachia, but generally, Appalachia looks about flat across the year embedded in our 2025 guidance. So that's kind of the feedback we've been getting sort of at the end of last year from our producers. There's been a lot of fundamental changes in the market over the last few months, and I alluded to some of those in my opening remarks. So, obviously, we're gonna work closely with our producer customers to see if they're going to adjust their plans or not as they kind of look forward at the gas markets and the pricing for the balance of this year and next year. But I'd say just generally speaking, it's been a very positive shift in sentiment around natural gas and their feelings around their business as a whole. But I do think, especially for the publics, they want to give a little time to make sure that that pricing remains intact. And that's just my sense of the multiple conversations we've had with all of our producer customers in our gathering segment.

Thank you.

Next question comes from Spiro Dounis with Citi. Please go ahead.

Thanks, operator. Good morning, everybody. Wanted to go back to the capital plan quickly, David. I think you referred to these projects as highly probable. And so just curious if you could give us a sense of the magnitude of the projects maybe sitting behind what was announced today, and how much room you think there is to add to this backlog while staying within your free cash flow? And the second part of this question is just want to make sure, have you assumed that some of these data center projects are in that $2.3 billion, or would they be additive?

Yeah. Good morning, Spiro. Great question. Maybe I'll start at the highest levels, and I'd say now that we've closed the acquisition from One Oak, that opportunity set, which has come to us through that acquisition, is more significant than we thought when we originally announced the transaction. So there's quite a backlog of opportunities that are presenting themselves around those assets, and that's reflected in our backlog, and in particular, is reflected in the fact that 70% of that backlog is sitting in the pipeline segment, which we love because it's high-quality projects. The one that we just talked about this morning is sort of the first of a series of projects that we're working on there. In addition, the modernization opportunity set that we envisioned pre-close is even more robust than we thought post-close. So that investment opportunity is in the backlog and is very significant versus maybe the last time we publicly chatted to the investors pre-close. So giving us a lot of confidence in that backlog, and you kind of said it, Spiro, it's this is a probability-weighted backlog that it's not the gross number. It's the highly probable number. So there's a significant set of opportunities in addition to what we've just disclosed that I think over time, as we work on them, they could get pulled into the backlog. So I'm really optimistic about the opportunity set in front of the company right now. We've got really favorable sentiment right now in the market, both on the regulatory front and on the political front and in the general population sentiment front. So again, don't want to get too far ahead of ourselves here, but everything is aligning nicely right now to create a nice runway for the company over multiple years to, I think,…

Great. That helpful color, David. Second question is pivoting here to the Utica. Sounds like that's going pretty well. I think you said exceeding expectations. So wondering if you could just dial that in a little bit more and maybe give us a little bit of color there around the outlook. And you also did mention the possibility for downstream opportunities. I just want to make sure I understand what that means. Are you looking to maybe get into processing at some point, or are we talking about downstream into the transmission side?

Yeah. It's really my reference was to the transmission side, Spiro, as a potential downstream opportunity as these volumes ramp. I expect these producers will want to have a pathway out of the basin at some point, so that'll present opportunities for us with our transmission pathways out of the basin. And then in terms of where we see this part of our business going in 2025 and 2026, I'm highly confident, and again, I can't speak on behalf of public companies here, but highly confident that there's going to be growth and a focus on these resources and continuing to develop these resources. So we're hand in hand with our anchor customer here, working to line out those expansion plans and make sure that the infrastructure is there for them as they continue to develop their resource base.

Great. Helpful as always. I'll leave it there. Thanks, gentlemen.

Your next question comes from John Mackay with Goldman Sachs. Please go ahead.

Hey. Good morning. Thanks for the time. I wanted to move to the Haynesville. You guys have talked in the past about your ability to take market share down there. I guess I'd just be curious, you know, where you guys stand now in terms of where you think DT Midstream, Inc. can grow versus the broader basin on both gathering and then also on further LEAP expansions?

Yeah. Good morning, John. Great question. Nothing has really changed in that regard. We're highly confident in our ability to continue to grow that network like we have over the last three years. You know, there's lots of infrastructure discussions being had in the public domain right now around the Haynesville and the Gulf Coast markets, which as I look at that, you know, the demand is showing up, and the market is recognizing that the demand is showing up, and there's lots of infrastructure projects being discussed publicly to connect incremental supply to that new demand that's showing up. So the confidence level and the demand arriving is high right now. So, you know, I expect that we will continue to win our fair share of the market share as this continues to develop over the back half of the decade, just like we have over the past three years. I'm really proud of the fact that our system is the most highly interconnected system, period, out of the basin in terms of supply connectivity and market connectivity. And I believe that's appreciated by all the market players, and that's why we've been able to keep peeling off expansions kind of consistently over the last three years. Now we're obviously working on the next one, and once we contract out, we'll start working on the one after that. And we've got a nice runway of capability with that asset set. And again, we can continue to expand in nice bite-sized pieces that comfortably fit into what the market wants, and I think that's just one of the competitive advantages in addition to the connectivity feature that we have across the footprint. So that'll be the plan to keep chipping away at it going forward and just keep winning our fair share of the growing market demand.

I appreciate that. Thank you. And maybe just staying down there in Louisiana. Might just give us an update on CCS. I think we're seeing the timeline push a little bit. I know there's a lot going on in the broader regulatory side, so maybe just an update there.

Yeah. So I'll start with the positive is that the application requirements were finalized by the state of Louisiana. So that was slowing everything down last year. So that's kind of done, and we're over that step. So now the application's complete. It's really sitting with the state, and we're in the waiting period now for the final class six permit. As soon as we have that in hand, then you should expect that we will FID the project and at that point begin to spend, you know, what I'll call material amounts of capital to construct the project. We're obviously talking to the state pretty much weekly now, trying to get a sense of timing from them. And I'm not gonna predict their timing anymore because I've been predicting it for the last twelve months. They always underwhelmed in terms of what they say versus what they do. I'm just being transparent with you because I know everyone's wondering about this. So we're applying steady patient pressure to the state to move things along. The application's complete. We have a lot of local support for our project. All the critical pieces are in place and ready to go. It's just the permit at this point.

Okay. Alright. That's clear. Thank you, David. Appreciate it.

Your next question comes from Keith Stanley with Wolfe Research. Please go ahead.

Hi. Good morning. Just one clarifying question for the lateral project on Midwestern and for growth projects generally on the new interstate pipeline assets. Do you expect recovery to come from FERC rate cases, or can some of these projects be done with bilateral contracts? And then related to that, just curious, your expected rate case cadence for those new assets.

Yeah. Keith, good morning. Great question. So initially, there'll be new incremental contracts to support these investments, and then when that particular asset comes into the next rate case, you know, obviously, that capital and that rate base rolls into your next rate case and is part of the next rate case process. So that's how it'll play out for the FERC assets. At some point in the future, they all will go into some type of a rate case process, whether it be, you know, like a negotiated settlement or whether it be a full rate case process through the FERC. So that's how you should think about it in terms of the capital deployments. But, again, in all cases, we have certain return expectations. The rate case process, when that does play out, is part of the economic assessment when we determine whether we're gonna make that investment upfront or not. So that's all folded into what I'll call the hurdle rates and the return expectations on the project when we initiate an FID the project upfront.

Great. And any timing you're expecting just for rate case cadence or frequency for these assets?

Yeah. All three of those assets are on a different rate case cadence, and I don't have that handy in front of me, and I don't want to guess at it for you. So I'm gonna ask you to follow up with Todd offline, and we can get you those details. But I don't want to quote it and have it quoted wrong here.

Great. Appreciate it.

You're welcome.

Your next question comes from Zach Van Eren. Please go ahead.

Hey, guys. Thanks for taking my question. Just one on Midwestern's lateral. It looks like you guys were able to get this in service relatively quickly due to the FERC blanket authorization. Do you have that authorization on any other assets, or is it just this pipeline?

No. Every one of the FERC assets has a blanket authorization capability.

Okay. So when we think about because generally on the FERC side, you know, a lot of people know one to two years in permitting and one-ish year to build depending on size. Will your projects relatively be a little bit faster than that due to the authorization?

Yeah. If we can get projects in under the blanket, those projects can go a lot swifter than going through the full process with the FERC, as you just highlighted. So, yeah, this one was, you know, like, literally a nine-hour off the mainline. So it was, you know, it's a very short, easy build over to this facility, which allowed it to go super quick, like, literally right after we closed the transaction. This opportunity presented itself, and yeah. So we're super excited about this. Right? You know, right out of the chute, we've got our first hour deal on these new assets. And as I alluded to, there are more to come that we're working on behind this.

Awesome. Perfect. Well, thank you, guys, and that's all I had.

Good. Great.

Your next question comes from Robert Mosca with Mizuho Securities. Please go ahead.

Hi. Good morning, everyone. So on the HES lateral projects, I understand that hasn't been FID-ed yet, but is there potential for DT Midstream, Inc. to be a part of a CCS solution there? Has that come up at all in conversations?

Good morning, Rob. You know, we've been having CCS conversations with a handful of power developers in the Appalachian, what I'll call the broader Appalachian region. So it's very much in the forefront of their minds right now. That being said, with the new administration and with what we believe is a relaxing of the rules around new gas-fired generation, it may not be a requirement, perhaps as some thought a year ago. So my sense right now is that the developers are pivoting more towards what I would call a conventional combined cycle footprint but have the optionality in those facilities to either over time introduce a hydrogen blend or build the facility in a way that over time, if they needed to, they could capture carbon off the back end of the plant for sequestration, again, over time. So a lot of the developers are looking at trying to engineer in the optionality to decarbonize a facility over time, which I think is a smart approach, just given how the sentiment in the market and then the nation can swing back and forth on this particular topic.

Got it. No. That's helpful. And then maybe turning to the Haynesville, I think your main producer there has noted that they want to be flexible in terms of their production plans. How does that look in terms of conversations you have month to month or quarter to quarter? I'm just should we think about it differently than this is the plan that you have kind of exiting 2024 and just how dynamic that could be over the course of 2025.

Sure. Well, again, I just have to be careful here because, as you know, our largest customer is a public company. So what I'll say generically and maybe I repeat what I said earlier, is that we expect volumes across our network, so the gathered volume directly from our producer customers, which we have many, will grow over the course of the year. And we've actually seen them grow significantly since the exit rate in 2024. So some of that growth has already occurred, which is positive. Right? It's what I would have expected given how the market is shaping up right now. So we'll see as the year progresses and as producers get progressively more confident with pricing and get more confident with the demand that's showing up. Again, a lot of producers, and I think they've said this publicly, they want to see the demand. They want to see it, feel it, and experience it before they start to deploy capital to growing some of their production. So, you know, I really think we're in a little bit of a wait-and-see mode. Having said that, you know, natural gas prices today are probably something for seventy-five cents higher than they were three months ago, which is a pretty significant upward move, which certainly is supportive for their businesses. So we're just being patient. We see growth. We have growth in our plan, and we'll see how that evolves as the year unfolds.

Got it. Thanks, David. And appreciate the time, everyone.

You're welcome. There are no more questions. I will now turn the conference back over to David for closing remarks.

Well, thank you again for joining us. We certainly appreciate the support that you've shown to the company and look forward to delivering another strong year. Thanks, everybody, and have a great day.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.