Summary of DTM Q1 2026 Earnings Call

1Key Financial Results and Metrics

Adjusted EBITDA: $308 million, up $15 million from the previous quarter.

Pipeline Segment: Increased by $14 million due to higher seasonal EBITDA from joint ventures and interstate pipelines.

Gathering Segment: Increased by $1 million, driven by higher volumes in Blue Union and Appalachia gathering.

Growth Capital Investment: $72 million in Q1, aligned with plans, with expectations for a ramp-up in the second half of the year.

Dividends: Board approved a quarterly dividend of $0.88 per share, unchanged from the prior quarter.

2Strategic Updates and Business Highlights

Project Backlog: DTM has a $3.4 billion project backlog, with two new pipeline projects approved:

Vector Pipeline Expansion: Increasing capacity by 400 million cubic feet per day, expected in service by Q4 2028.

Millennium R2R Project: Expected to be fully operational by Q1 2027, supporting 70 million cubic feet per day.

New Utility Projects: Agreement to build a pipeline lateral for a 900-megawatt power plant in Indiana, with expected capacity of 265 million cubic feet per day, pending final investment decision (FID) in 2026.

Market Demand: Strong interest in pipeline projects in the Midwest and Northeast, with oversubscribed open seasons for both Midwestern and Vector pipelines indicating robust demand.

Operational Performance: Successful completion of the Midwestern gas transmission power plant lateral on time and under budget.

3Forward Guidance and Outlook

2026 Guidance: DTM reaffirms its adjusted EBITDA guidance range for 2026, expecting Q2 results to be lower than Q1 due to seasonality and planned maintenance.

Growth Capital: Committed capital for 2026 is approximately $400 million and $440 million for 2027, reflecting new investments.

Long-term Outlook: Confidence in the growth of natural gas demand driven by power generation needs, particularly in data centers.

4Bad News, Challenges, or Points of Concern

Seasonality Effects: Q2 expected to be weaker than Q1 due to seasonal factors and maintenance, which may lead to fluctuations in performance.

Market Volatility: The first quarter experienced extreme price volatility and capacity constraints, raising concerns about future price dislocations.

Regulatory Risks: Challenges remain in advancing certain projects, particularly in regions like New York, where regulatory support is crucial.

Competitive Pressures: The market is competitive, particularly in the Haynesville area, which may affect pricing and expansion strategies.

5Notable Q&A Insights

MIST Project: Strong market interest was noted, with potential for significant expansions, but specific details are still being finalized.

Data Center Developments: There is cautious optimism regarding behind-the-meter projects, with utilities currently having an advantage over independent developers.

LEAP Expansion: There are active discussions around potential expansions, with the system currently running at full capacity.

Market Dynamics: The company is observing strong demand growth in the Midwest and Northeast, with expectations that regulatory changes could unlock further opportunities.

Guardian Pipeline: Ongoing expansions are being discussed, with the potential for future phases based on market demand. Overall, DTM is positioned well for growth with a solid project backlog and strong market fundamentals, though it faces challenges related to seasonality, regulatory environments, and competitive pressures.