Yahoo Finance DT Midstream, Inc. (NYSE:DTM) Q4 2023 Earnings Call Transcript
DT Midstream, Inc. (NYSE:DTM) Q4 2023 Earnings Call Transcript February 16, 2024
DT Midstream, Inc isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good morning. My name is Audra and I will be your conference operator today. At this time, I would like to welcome everyone to the DT Midstream Fourth Quarter 2023 Earnings Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] At this time, I would like to turn the conference over to Todd Lohrmann, Director of Investor Relations.
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. Please refer to the reconciliations to GAAP contained in the appendix. 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. During today's call, I'll discuss our 2023 accomplishments and provide an update on our organic growth projects and future outlook. I'll then close with some remarks on the accomplishments the DTM team has made since we spun the company in 2021, before turning it over to Jeff to review our financial performance and outlook. So with that, 2023 ended strong. We delivered full year adjusted EBITDA of $924 million, which exceeded our guidance midpoint and represents 10% growth year-over-year. We also executed on the largest construction program in our company's history. And I'd like to thank the team for successfully completing these projects ahead of schedule and on budget.
I'd also like to commend the team for their excellent safety performance. We finished the year with only one OSHA recordable, one of our best safety years on record. Most notably, we placed our LEAP Phase I and II expansions in service early, which are fully contracted and directly served a growing LNG markets along the Gulf Coast. With these expansions completed, we're able to focus construction activities on Phase III, which is currently running ahead of schedule. On Blue Union, we added additional treating and pipeline capacity. Putting us in an advantaged position to quickly ramp supply to serve the coming LNG demand wave beginning in 2025. Turning to the Northeast. We successfully completed our Appalachia gathering system Phase 2 expansion which added additional mainline capacity.
In Ohio, our Ohio Utica project trunk line was completed early and we began collecting revenue under our take-or-pay agreement. On NEXUS, we're able to sell new capacity through hydraulic optimization initiatives. Throughout the year, our business team successfully executed several new commercial agreements, including our Ohio Utica project, a new supply interconnect on Blue Union in the Carthage area and then interconnect with the Gillis Access project on LEAP. Additionally during the fourth quarter, we finalized new agreements that will result in a Phase III expansion to our Appalachian gathering system and expansion of the Tioga gathering system and a pipeline expansion on the Blue Union system. The business development team remains focused progressing our deep organic project backlog, which currently sits at over $1.3 billion through 2027.
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