DT Midstream, Inc. (NYSE:DTM) Q1 2023 Results Conference Call May 2, 2023 9:00 AM ET

Company Participants

Todd Lohrmann - Director of Investor Relations

David Slater - President and CEO

Jeff Jewell - Executive Vice President and CFO

Conference Call Participants

Spiro Dounis - Citi

Michael Blum - Wells Fargo

Robert Mosca - Mizuho

Alex Kania - Wolfe Research

Operator

Thank you for standing by. My name is Briana, and I will be your conference operator today. At this time, I would like to welcome everyone to the DT Midstream First Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions].

I will now turn the call over to Todd Lohrmann, Director of Investor Relations. You may begin your conference.

Todd Lohrmann

Good morning, and welcome, everyone. Before we get started, I would like to remind you to read the safe harbor statement on Page 2 of the presentation, including the reference to forward-looking statements. Our presentation also includes references to non-GAAP financial measures. Following the successful issuance of debt at NEXUS pipeline, we are modifying our adjusted EBITDA calculation to reflect full proportional EBITDA from our equity method investees. Please refer to the updated definition of adjusted EBITDA and the reconciliation to GAAP contained in the appendix as well as the definitions and reconciliations of our other non-GAAP financial measures. The appendix also contains details on the debt balances and interest expense at our equity method investees. Joining me this morning are David Slater, President and CEO; and Jeff Jewell, Executive Vice President and CFO. I'll now turn it over to David to start the call.

David Slater

Thanks, Todd, and good morning, everyone, and thank you for joining. I am pleased to report we had another strong quarter with both business segments delivering great results that are in line with our full year plan. As I communicated on our year end call, we expect growth to be weighted towards the second half of the year as we bring projects online. Standing here today, I am confident in our full year guidance range for 2023 and early outlook range for 2024. All of our key growth projects remain on budget and on schedule. And during the quarter, we made significant progress derisking these projects by completing major construction activities and firming up project costs. Approximately 80% of our overall growth project capital costs have been locked in through our spend to date and committed procurement contracts. And I'd like to give a big thanks to the entire team for their dedication as they work to ensure these projects meet the expected in-service states for our customers. I also want to commend our employees for their excellent safety performance with no recordable safety incidents so far this year. We are continuing to advance our CCS opportunity in Louisiana, following the acceptance of the Class VI well permit application by the EPA. We have completed seismic surveys and continue to evaluate geological characteristics in support of our application. Last Friday, the EPA announced they are opening a public comment window on a proposal to grant the State of Louisiana's request or primacy over Class VI injection wells. We are very encouraged by this announcement and we'll continue to work closely with both the EPA and the state of Louisiana as we advance the project towards a final investment decision.