Samantha Banerjee

Samantha Banerjee asked about the additional modernization opportunities mentioned in the deck, specifically the phase two interstate pipeline modernization. She also inquired about DT Midstream's general capital allocation priorities going forward, focusing on balancing dividend growth with maintaining leverage.

Answer

Executive Chairman and CEO David Slater explained that phase two of the interstate modernization program will focus on Midwestern Pipeline, addressing reliability through compression replacement, and will be included in the next rate case. Regarding capital allocation, Mr. Slater emphasized allocating to the regulated pipeline segment with long-term, investment-grade contracts and growing the dividend in line with EBITDA. EVP and CFO Jeff Jewell added that free cash flow funds projects, leading to natural deleveraging, and they are committed to preserving their investment-grade credit rating.

Samantha Banerjee asked about additional modernization opportunities, specifically the updated phase two interstate pipeline modernization. She also inquired about DT Midstream's general capital allocation priorities going forward, and how the company balances dividend growth with maintaining leverage.

Answer

David Slater, Executive Chairman and CEO, explained that phase two of the interstate modernization program will focus on the Midwestern pipeline, primarily on reliability through compression replacement, and will roll through the next rate case. Regarding capital allocation, Mr. Slater stated that the majority of the backlog is allocated to the FERC-regulated pipeline segment, backed by long-term contracts with investment-grade utilities, ensuring strong and secure cash flows. He reiterated the commitment to grow the dividend in line with EBITDA growth, a consistent practice since the spin-off. Jeff Jewell, EVP and CFO, added that the company plans to fund its capital allocation plan with free cash flow, naturally deleveraging, and maintaining investment-grade credit ratings with significant headroom on credit metrics, ensuring capacity to fund all projects and the growing dividend.