Q2 2025 DT Midstream Inc Earnings Call
David Slater: Hello, and welcome to the DT Midstream second quarter 2025 earnings call. I will now turn it over to our speaker today, Todd Lohrmann, Director of Investor Relations. Thank you. Please go ahead.
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. So with that, I'll go ahead and turn the call over to David.
Hello, and welcome to the Deep. Midstream second quarter, 2025 earnings call. I will now turn it over to our speaker today. Todd lurman, director of investor relations. Thank you, 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 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 Gap contained. In the appendix.
Joining me this morning are David Slater, President and CEO, and Jeff Jewell, Executive Vice President and CFO.
So with that, I'll go ahead and turn the call over to David.
David Slater: Thanks, Todd, and good morning, everyone, and thank you for joining. During today's call, I'll touch on our financial results, share details on the latest commercial activity, and provide a status update on our key growth projects that are currently under construction. I'll then close with some commentary on the current market fundamentals before turning it over to Jeff to review our financial performance and notebook. So with that, midway through the year, we're continuing our strong performance, giving us confidence to reaffirm our 2025 adjusted EBITDA guidance range and our 2026 adjusted EBITDA early ELIC range. The second quarter was an active quarter for us commercially, and we are announcing today that we've reached FID on approximately 600 million of new organic growth projects from our capital projects backlog, of which approximately 90% of the investment is within our growing pipeline segment.
Thanks, Todd and good morning, everyone. And thank you for joining.
During today's call, I'll touch on our financial results. Share details on the latest commercial activity and provide a status update on our key growth projects that are currently under construction.
I'll then close with some commentary on the current market fundamentals before turning it over to Jeff to review our financial performance and Outlook.
Range and our 2026 adjusted ibida early ELO range.
The second quarter was an active quarter for us commercially.
And we are announcing today that we've reached FID on approximately 600 million of new organic growth projects from our capital projects, backlog.
Of which approximately 90% of the investment is within our growing pipeline segment.
David Slater: Unpacking the new investment projects, the first is an expansion of Guardian Pipeline, increasing the capacity of the pipeline by 15%. This expansion is anchored by an investment-grade utility customer under a 20-year negotiated rate contract. The next project that we are moving forward with is the first phase of our interstate pipeline's modernization program. This initial phase will be predominantly focused on Guardian Pipeline and will improve the reliability of this critical capacity for our valued customers in Wisconsin. Both of these investments are supported by strong fundamentals, as there is robust power demand growth throughout the region. They also have connectivity to DTM's broader portfolio, including a pathway to our natural gas storage facility, offering our customers greater supply flexibility and optionality to meet their growing demand.
Unpacking, the new investment projects. The first is an expansion of Guardian pipeline increasing the capacity of the pipeline by 15%.
This expansion is anchored by an investment grade, utility customer under a 20-year negotiated rate, contract.
The next project that we are moving forward with is the first phase of our Interstate pipelines modernization program.
This initial phase will be predominantly focused on Guardian Pipeline and will improve the reliability of this critical capacity for a value customers in Wisconsin.
Both of these Investments are supported by strong fundamentals. As there is robust power demand growth throughout the region.
David Slater: Additional modernization investment opportunities exist across all of our new interstate assets to ensure reliability and maintain a high service level for our customers. Reaching FID on this first phase of our modernization efforts is just step one, and we will keep you updated as we advance the program. We have also executed gathering agreements with private producers in each of the basins we operate in, a positive signal of the strengthening macro environment surrounding natural gas. Turning to our construction activity, during the quarter, we placed three gathering projects into service across our footprint, continuing our track record of delivering projects on schedule and on budget. As a reminder, these projects are all expected to have a ramp period following their in-service date, with full contribution expected by the end of 2026.
They also have connectivity to DTM's broader portfolio, including a pathway to our natural gas storage facility, offering our customers greater supply flexibility and optionality to meet the growing demand.
Additional modernization investment opportunities, exist across all of our new Interstate assets to ensure, reliability and maintain a high service level for our customers reaching. FID on this first phase of our modernization efforts is just step 1 and we will keep you updated as we advance the program.
We have also executed Gathering agreements with private producers in each of the basins we operate in.
A positive signal of the strengthening macro environment surrounding Natural Gas.
Turning to our construction activity, during the quarter, we placed three gathering projects into service across our footprint.
Continuing our track record of delivering projects on schedule and on budget.
As a reminder, these projects are all expected to have a ramp period, following their in-service date.
With full contribution expected by the end of 2026.
David Slater: Our Hainesville LEAP Phase 4 expansion is progressing ahead of schedule, allowing us to pull forward the expected in-service date to the first quarter of 2026. Finally, I'd like to take a moment to address the current natural gas fundamentals and why I feel DTM is so well positioned. We've clearly seen a positive shift in the Hainesville over the last few quarters, as producers are beginning to drill into the long-awaited LNG demand ramp. To date, private producers have been the most active; however, we expect public producers will also respond as pricing and physical demand increases, and we are forecasting a 16 BCF per day increase in LNG feed gas demand through 2035 from facilities that have access to our Hainesville system, with the majority of these terminals already reaching FID.
Our hanesville leap phase 4 expansion is progressing ahead of schedule allowing us to pull forward. The expected in-service date to the first quarter of 2026,
finally, I'd like to take a moment to address the current natural gas fundamentals and why I feel DTM is so well positioned
We've clearly seen a positive shift in the Hanceville over the last few quarters. As producers are beginning to drill into the long-awaited LNG demand ramp
To date private, producers have been the most active. However, we expect public producers will also respond as pricing and physical demand increases.
And we are forecasting, a 16 BCF per day, increase in LGC gas demand through 2035 from facilities that have access to our hands.
David Slater: In addition to the growing momentum in the LNG market, we continue to have a very constructive view on power demand growth in the country, fueled by the increasing electrification of the economy, onshoring of manufacturing, and demand for more AI computing and data centers. Last week, the PGM auction cleared at over $329 per megawatt day, a 22% increase from last year's auction, and the highest price ever recorded for a PGM capacity auction. This is a clear signal of the significant power demand growth that is occurring in that region. We continue to advance pipeline opportunities driven by power demand within PGM and MISO, the two primary electric markets our assets reside in. These ISOs expect to see demand growth of more than 40% over the next 20 years.
With the majority of these terminals already reaching FID.
Fueled by the increase in electrician of the economy on Shoring of manufacturing and demand for more AI Computing and data centers.
Last week, the PGM auction cleared at over 329, per megawatt, day, a 22% increase from last year's auction and the highest price ever recorded for APG capacity auction. This is a clear signal of the significant power demand growth that is occurring in that region.
We continue to advance pipeline opportunities, driven by power demand, within pjm and myso. The 2 primary electric markets are assets. Reside in
David Slater: To date, we have commercialized more of these opportunities as in front of the METER utility scale projects, but we are also in numerous discussions with developers behind the METER projects, providing pipeline lateral proposals to the projects. Moving to the regulatory framework, the current federal administration has also created a more favorable environment for much-needed energy infrastructure projects to advance. We are finally beginning to see initiatives to streamline approval processes, a welcome development that will reduce permit times, increase project transparency, and enable investment in critical energy infrastructure throughout the country. I'll now pass it over to Jeff to walk you through our quarterly financials and notebook.
These isos expect to see demand growth of more than 40% over the next 20 years.
To date. We have commercialized more of these opportunities as in front of the meter utility scale projects.
but we are also in numerous discussions with developers of the behind the meter projects providing pipeline lateral, proposals to the projects,
moving to the regulatory framework. The current federal Administration has also created a more favorable environment for much-needed energy, infrastructure projects to advance.
We are finally beginning to see initiatives to streamline approval processes. A welcome development that will reduce permit times, increase project, transparency and enable investment in critical energy infrastructure throughout the country.
Now, I'll pass it over to Jeff to walk you through our quarterly financials and outlook.
Jeff Jewell: Thanks, David, and good morning, everyone. In the second quarter, we delivered adjusted EBITDA of $277 million, representing a $3 million decrease from the prior quarter. Our pipeline segment results were $3 million lower than the first quarter 2025, driven by a planned rate step down on Guardian Pipeline effective April 1 and seasonally lower EBITDA from our interstate and joint venture pipelines, partially offset by an increase in short-term revenues on LEAP and Stonewall. Gathering segment results were in line with the first quarter 2025, reflecting higher volumes on our Hainesville system, offset by lower volumes in the Northeast. Operationally, total gathering volume for the Hainesville averaged 1.74 BCF per day, an all-time record throughput on our system for a quarter, and a 16% increase over the second quarter 2024.
Thanks, David and good morning everyone.
In the second quarter, we delivered adjusted ibida of 277 million representing a 3 million decrease from the prior quarter.
Our pipeline segment results were 3 million lower than the first quarter 2025.
Driven by a planned rate step-down on the Guardian pipeline effective April 1.
And seasonally lower ibida from our interstate and joint venture Pipelines.
Partially offset by an increase in short-term revenues, on leap, and Stonewall.
Gathering segment results were in line with the first quarter 2025 reflecting higher volumes on our Haynesville system offset by lower volumes in the Northeast.
Operationally total Gathering volume for the Haynesville, average 1.74 BCF per day.
An all-time record throughput on our system for a quarter.
Jeff Jewell: In the Northeast, volumes averaged 1.17 BCF per day, which was a decrease from the first quarter, driven by maintenance and timing of producer activity, primarily on our Appalachia and Susquehanna gathering systems. Northeast volumes remain in line with our full-year plan and expectation for flat entry-to-exit volumes. Looking ahead to the third quarter, our plan is for adjusted EBITDA to be relatively in line with the second quarter, followed by a ramp in the fourth quarter, driven by timing of producer activity and typical seasonality of pipeline segment earnings. As David stated, we are confident in our full-year 2025 adjusted EBITDA guidance range and our 2026 adjusted EBITDA early outlook.
And a 16% increase over the second quarter 2024.
In the Northeast volumes averaged. 1.17 BCF per day which was a decrease from the first quarter.
driven by maintenance and timing of producer activity primarily on our Appalachia and cesco Hannah Gathering systems
Northeast volumes remain in line with our full year plan and expectation for flat entry to exit volumes.
Looking ahead to the third quarter, our plan is for adjusted ibida to be relatively in line with the second quarter.
Followed by a ramp in the fourth quarter.
Driven by timing of producer activity and typical seasonality of pipeline segment earnings.
Jeff Jewell: We've increased our committed capital in 2025 and 2026 to reflect the new growth projects reaching FID, with approximately $385 million committed in 2025 and approximately $230 million committed in 2026, which is an increase of approximately $150 million from our first quarter disclosure. For our Guardian expansion project, we expect to invest $345 to $375 million at a 5 to 6 times build multiple, with the project entailing a combination of compression and looping and expected to be in service in the fourth quarter of 2028. For the first phase of our interstate pipeline modernization program, we are planning to invest $130 to $150 million, with an expected second half 2027 in-service date. The capital associated with this project will be included in the pipeline's next rate case for recovery.
As David stated, we are confident in our full year, 2025 adjusted IBA, guidance range and our 2026 adjusted ibida. Early Outlook.
We've increased our committee capital in 2025 and 2026 to reflect the new growth projects. Reaching fid.
For the approximately 385 million committed in 2025.
And approximately 230 million committed in 2026.
which is an increase of approximately 150 million from our first quarter disclosure,
for our Guardian Expansion Project, we expect to invest, 345 to 375 million at a 5 to 6 times. Build multiple with the project entailing, a combination of compression and looping.
And expected to be in service in the fourth quarter of 2028.
For the first phase of our Interstate pipeline modernization program. We are planning to invest 130 to 150 million
With an expected second half 2027 in service States.
Jeff Jewell: So, overall, our committed capital has increased for the 2025 to 2029 time period to $1.1 billion out of our total $2.3 billion backlog. Therefore, we are feeling confident in achieving this total investment. We are also pleased to report that during the quarter, we were upgraded to investment grade by both Moody's and S&P, joining Fitch Rating, who upgraded us last year, and solidifying DT Midstream as a full investment-grade entity. Achieving investment grade was a strategic goal we established upon spinning the company, and I am incredibly proud of the entire team in reaching this milestone. On the legislative front, we see several items from the recently enacted One Big Beautiful Bill Act that will financially benefit DTM. The Act's extension of 100% bonus depreciation will benefit DTM's unregulated investments, and we also see benefits in increased interest expense deduction.
The capital associated with this project will be included in the pipelines, next rate case for recovery.
So overall, our committed Capital has increased for the 2025, to 2029 time period to 1.1 billion out of our total 2.3 billion backlog. Therefore, we are feeling confident in achieving this total investment,
We are also pleased to report that during the quarter, we were upgraded to investment grade by both Moody's and S&P, joining Fitch Ratings, which upgraded us last year.
And solidifying, DT Midstream as a full investment, grade entity.
Achieving investment grade was a strategic goal. We established upon spinning the company.
And I am incredibly proud of the entire team in reaching this milestone.
On the legislative front.
We see several items from the recently, enacted 1 big beautiful. Bill act that will financially benefit DTM.
The axe extension of 100% bonus depreciation will benefit dtm's unregulated Investments.
Jeff Jewell: These items provide a favorable impact on our projected cash taxes, and we anticipate further deferral of a significant portion of our federal tax for multiple years. Finally, today we also announced that our Board of Directors approved our second quarter dividend of $0.82 per share, unchanged from the prior quarter, and we remain committed to grow the dividend 5 to 7% per year, in line with our long-term adjusted EBITDA growth. I'll now pass it back over to David for closing remarks.
And we also see benefits in increased interest expense deduction.
These items provide a favorable impact on our projected cash taxes. And we anticipate further deferral of a significant portion of our federal tax for multiple years.
Finally.
Today, we also announced that our board of directors approved our second quarter dividend of 82 cents per share.
Unchanged from the prior quarter.
And we remain committed to grow the dividend 5 to 7% per year in line with our long-term adjusted evil to growth.
David Slater: Thanks, Jeff. So, in summary, we are excited for the growth opportunities ahead for the company and remain confident in delivering on our guidance, continuing our track record of disciplined execution. Our high-quality, pure-play natural gas portfolio is well positioned to capture the growing opportunities across our entire network, as we are focused on continued execution of our $2.3 billion organic project backlog, of which $1.1 billion is already FID'd. Sentiment and fundamentals around natural gas infrastructure continue to improve, with the LNG export grant building momentum, strong demand growth in our northern region, increased political backing of natural gas and energy infrastructure, and a renewed realization of the role that natural gas plays as a critical fuel supporting the growing power generation fleet that runs the country. And with that, we can now open up the line for questions.
Our high-quality Pure Play, natural gas portfolio is. Well, positioned to capture the growing opportunities, across our entire network, as we are focused on continued execution of our 2.3 billion, organic project, backlog of which 1.1 billion is already fid.
Sentiment and fundamentals around natural, gas infrastructure. Continue to improve with the lmg, export Grant building momentum, strong demand growth, and our Northern Region increased political backing of Natural, Gas, and energy infrastructure, and A Renewed realization of the role that natural gas plays as a critical fuel supporting The Growing Power Generation Fleet. That runs the country.
And with that we can now open up the line for questions.
Operator: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. If you'd like to withdraw your question, please press star one again. Our first question comes from the line of Jeremy Tornette from JPMorgan Chase. The line's open.
Thank you.
if you'd like to ask a question, please press star 1 on your telephone keypad,
If you'd like to join a question, please press star 1 again.
Our first question comes from the line of Jeremy tonette from JP Morgan Chase.
Jeremy Tornette: Hi, good morning.
The lenzo.
David Slater: Morning, Jeremy.
Hi, good morning.
Morning. Jeremy.
Jeremy Tornette: I just want to pick up on some of your last thoughts there, winds of change and, you know, changing views on natural gas and want to dial in on New York a bit more, you know, given the higher power prices, given some of the issues with devoltages, what have you. I was wondering if you could talk a bit more about what you're seeing in the state and, I guess, any line of sight you might have to, you know, specifically water permits there to be able to, you know, get comfort in moving forward with Millennium expansions.
David Slater: Yeah, Jeremy, I'll start with sort of our view on power generation in the state of New York. So, Millennium directly serves two plants, and both those plants have been running, you know, at very high load factors, much higher than historic load factors. So, I think that's just a data point that supports what you said in the question, that there's clearly strong power demand in New York and a need for additional generation, just given how the existing fleet is operating right now. So, that's a positive, encouraging signal that we see on the power generation side. If I flip to what I'll call the regulatory environment, you know, we've been seeing incremental positive changes.
Uh, just wanted to pick up on some of your last thoughts there, uh, Winds of Change in, in, you know, uh, changing views on natural gas, and want to dial in on New York a bit more. You know, given the higher power prices, given some of the, the issues with uh, Dev voltages. What have you just wondering if you could talk a bit more, what you're seeing in the state? And I guess, uh, any line of sight, you might have to, you know, specifically water permits there to be able to, you know, get comfort and moving forward with uh uh Millennium expansions
Yeah, Jeremy I'll start with sort of our view on power generation in the state of New York. So, um, Millennium directly serves 2 plants.
Uh, and both those plants have been running, you know?
At very high load factors much higher than historic load factors. So I think that's just a data point that supports your what you said uh, in the question that um,
There's clearly strong power demand uh, in New York and and a need for um, for additional generation. But just given how the existing Fleet is operating right now. So that's a positive, encouraging signal that, we see uh on the power generation side. Um, if I flip to uh, what I'll call the regulatory environment
David Slater: A lot of it is caught up in the political dialogue, and I'm not going to get into the details on the call here, but what I would say is, at a high level, we're seeing a positive shift and a recognition that there is a need, a legitimate need in the state for additional infrastructure. We're obviously working to, in conjunction with the shippers that are interested in expansion capacity, to sort of bring all those pieces together and have all the regulatory agencies and, you know, the states, the state leadership sort of aligning around and recognizing the need. And I think, as I said earlier on this topic, is that that's sort of a critical, you know, gating item for us, is that we need to see state support for any project that we would FID on Millennium in terms of expansions.
You know, we've been seeing incremental positive changes. Um a lot of it is caught up in the political dialogue and I'm not going to get into the details on the call here. But what I would say is at a high level we're seeing uh, positive shift and a recognition that there is a need, a legitimate need in the state for additional infrastructure. Um we're obviously working to um
In conjunction with the shippers that are interested in expansion capacity to sort of bring all those pieces together and have all the um, Regulatory Agencies.
and um, you know, the states, the, the state uh leadership sort of aligning around and recognizing the need
And I think, as I said earlier, uh, on this topic is that, that's sort of a critical.
Mile, you know, gate gating item for us is that we need to see State support for any project that we would fit uh on Millennium in terms of expansions.
Jeremy Tornette: Got it. Thank you for that. I was just wondering also, you know, moving south, if we could expand a bit more, I guess, on Hainesville activity and how you think about, you know, producers, particularly privates in the Hainesville, responding to price signals there, and how you think that kind of impacts the ramp in the basin, what pricing, what timeframe, how do you see that unfolding?
Got it. Thank you for that. Um,
I was just wondering also, you know, moving south, if we could uh if we could expand a bit more, I guess on hanesville activity.
And how you think about, uh, you know, producers particularly privates in the hanesville uh, responding to to price signals there. Uh, and and how you think that kind of impacts the the ramp in the Basin? What pricing, what time frame? How do you see that unfolding?
David Slater: Yeah, I think, like I said in the opening remarks, and you can see in the data that we shared here on the second quarter call, is that we're seeing our Hainesville volumes ramping, which is very encouraging. The privates seem to be a little quicker on the draw, if I can use that term, in terms of deploying capital and ramping rig activity, resulting in volume growth, and we've been a beneficiary of that, and we've been working very closely with a handful of private producers that we brought onto the network over the last couple of years. So, very happy about that. The publics are coming around, and I fully expect that the publics will begin to respond to the physical market growth and the price signal that's sitting out in '26 and '27.
Yeah I think like I said in the opening remarks and you can see in the data that we shared here on the second quarter call, is that we're seeing our hanesville volumes ramping which is very encouraging. Um,
The privates seem to be a little quicker on the draw, if I can use that term.
In terms of, uh, deploying capital and, uh, ramping rig activity, resulting in volume growth, and we've been, uh, beneficiary of that. And, uh, we we've been working very closely with the handful of private producers that we brought on to the network.
David Slater: They're just being a little more cautious, and I think just a function of their, you know, their ownership sentiment. They want them to be cautious and focused on, you know, real disciplined capital execution, and that's fine. So, you know, we're seeing the growth. We expect more of that to show up on the network in the second half of the year, and it feels like the Hainesville is pointed in a positive direction right now to exit this year, likely delivering some significant growth and getting the production back to where it was at the peak two years ago and then moving beyond that and going forward.
Um, the public are coming around and, um, I fully expect that the Public's will begin to respond to the physical market, growth, and the price signal that's sitting out in 26 and 27. Um, they're, they're just
being a little more cautious and I think just a function of their, um,
uh, you know, their ownership sentiment, uh, they want them to be cautious. Um, and focused on, you know, real discipline Capital execution and, and that's fine. So, you know, we're we're seeing the growth, we expect more of that, uh, show up on the network in the second half of the year. And uh, it feels like the hanesville is pointed in a positive direction right now. Uh, to exit this year, uh likely delivering some significant growth and getting the production back to where it was at the peak 2 years ago. And then moving beyond that uh, going forward.
Jeremy Tornette: Got it. That's helpful. Thank you.
Got it. That's helpful. Thank you.
Operator: Thank you. Our next question comes from the line of Michael Bloom from Wells Fargo. The line's open.
Thank you. All right, next question comes from the line of Michael Blue from Wells Fargo.
The lines open.
Michael Blum: Thanks. Good morning, everyone. I wonder if you could expand on the comments you made on the potential data center lateral investments that I know how you've been working on for a while. Just how are things progressing? What's going on there? And any best guess you have for timing of when some of these could actually move forward?
Thanks, second morning, everyone. Um, wondering if you could expand uh on the comments, you made on the potential data center, uh, lateral Investments that I know how you've been working on for a while. Uh, just, how are things progressing, what's going on there? And, uh, any best guess you have for timing of when some of these could could actually move forward.
David Slater: Yeah, maybe I'll start at the macro level, and then kind of we'll double-click down into the details. But I'd say at the highest level, we're seeing strong power demand growth manifesting across both PGM and MISO, which is predominantly where our assets reside. To date, for us, that growth has manifested itself in what I'll call utility scale expansions on our network directly serving the utilities that are serving these growing power demands. So, the AES lateral that we announced off of Midwestern, the combined cycle plant in West Virginia, and our Guardian expansion that we announced here today, all of those are driven by the power demand ramp. So, that's currently how our portfolio has been experiencing what I'll call the data center power-driven growth across our footprint. Now we have a plethora of proposals in front of site-specific behind-the-meter development, and those just haven't commercialized yet.
Yeah, maybe I'll start at the at the macro level and then kind of, we'll double click down into the details. But I'd say at at the highest level we're seeing strong power demand, gross, manifesting across both PGM and myso, which is predominantly where our assets reside, um, to date for us. That growth is manifested itself.
And what I'll call utility scale, um, expansions on our Network serving directly serving, the utilities that are serving, these Growing Power demands. So the as lateral that we announced off a Midwestern the combined cycle, um, plant, uh, in West Virginia,
And our Guardian expansion that, um, that we announced here today. Um, all of those are driven by, um, the power demand ramp. So, that's currently how our portfolio has been experiencing. Uh, what I'll call the the data center power driven growth, uh, across our footprint. Now, we have a plethora of proposals in front of sight, specific behind the meter development. Um,
David Slater: That's the bottom line. I think I've been saying this publicly for a while now, is that we've been observing the utilities winning a disproportionate share of this market. I think DTE announced yesterday a very bullish expectation of data centers in Michigan. I think they're very confident in one gigawatt of capacity with the potential to go to three gigawatts of capacity. That's significant. That's two to three combined cycle power plants. WEK has announced similar data center success. If you go through the whole utility segment, I won't name them all, but they've all been very successful in winning large percentages of this new power demand. So, and that's been fine for us. I mean, we love our utilities on the network, and we want to serve them.
And and those just haven't commercialized yet. That's, that's the bottom line. Um,
I think I've been saying this publicly for a while now is that we've been observing, the utilities winning at disproportionate share of this Market. I think DTE announced yesterday. Um, I'm very bullish. Um,
Expectation of data centers in Michigan. I think they're very confident in 1 gigawatt of capacity with the potential to go to 3 gigawatts of capacity. That's significant that's 2 to 3 combined cycle power plants.
Um, whack has announced similar um, data center success.
David Slater: And just like what we announced on Guardian, you know, a 20-year negotiated rate contract, we absolutely love that type of business. It's right down in the center of the fairway, you know, right in line with our strategy to grow our gas pipelines. So, that's how it's been manifesting to date on the network. I fully expect we are going to get some laterals, more laterals, just like the AES lateral. Again, it's just a matter of when those sites commercialize. And what I am hearing directly from the underlying companies that are building these is that all things equal, they want to be directly connected to the grid. They would prefer to be connected to the utilities. There are significant reliability benefits and counterparty strength benefits that come with that. So, there's a lot of things happening in the space right now.
Um, you could, if you go through the whole utility segment, I won't name them all. But they've all been, um, very successful in winning large percentages of this new, um, Power demand. Uh, so, and that's been fine for us. I mean, we, we love our utilities on the network and we want to serve them and, uh, just like what we announced on Guardian, uh, you know, 20 year, uh, negotiated rate, uh, contract.
We, we absolutely love that type of business. Um,
It's right down in the center of the Fairway, you know, right in line with our strategy to grow our gas pipelines.
So that's how it's been manifesting to date on on the network. Um, I fully expect we are going to get some laterals more laterals just like the AES lateral. Um,
again, it's just a matter of when those sites commercialize and what I am hearing directly from
um,
the underlying companies that are building, these is that all things equal, they want to be directly connected to the grid, they would prefer to be connected to the utilities. They are significant reliability benefits.
David Slater: What I would just keep everybody focused on is that demand is real, and it is showing up. It'll manifest itself in various ways across our network, and we're very excited about it. We're going to participate in this growth through this region, and that's a guarantee.
There's a lot of things happening in the space right now. Um, I what I would just keep everybody focused on, is that demand is real, and it is showing up it'll manifest itself in various ways across our Network.
And we're very excited about it. Uh, we're we're going to participate in this growth through this region. And, and that's a guarantee.
Michael Blum: Great. Thanks for all those details. And then just a question on the spend, the CapEx for 2025. Obviously, if I just take the first half, you know, it's pretty light relative to the full-year guidance, both for growth and maintenance. So, just wondering, do you think you're sort of running more efficiently and you'll end up spending less on the guidance, or should we just expect the big ramp in the second half? Thanks.
Great, thanks for all those those details. And then, just just a question on the, uh, the the spend capex for for 2025. Obviously, if I just take the first half, uh, you know, it's pretty light relative to the full year guidance, both for growth and maintenance. So, just wondering, do you think your sort of running more efficiently and you'll end up spending less than the guidance? Or should we just expect a big ramp in the second half? Thanks.
David Slater: Yeah, I wouldn't read into that. I fully expect we're going to land in our guidance range as we approach the end of the year. And, you know, I think as we get into Q3, if we think we're going to be, you know, outside of that band, we'll certainly telegraph that. But as we sit here today, I'm not, I fully expect that we'll deploy that capital.
Yeah, I wouldn't I wouldn't read into that. Um, I fully expect we're going to um, land in our guidance range uh, as we approach the end of the year and, you know, I think as we get into Q3 if if we think we're going to be, you know, outside of that band. We'll certainly Telegraph that. But uh, as we sit here today, I'm not, I fully expect that we'll deploy that capital.
Michael Blum: Thank you.
Thank you.
Operator: Thank you. Our next question comes from the line of Theresa Chen from Barclays. The line is open.
Thank you.
Our next question comes from the line of Theresa Chen from barkless.
The line's open.
Theresa Chen: Thank you, and good morning. With the FID of Guardian's three, how do you think about gas sourcing for this project, and are there additional brownfield expansions upstream of Guardian on your other transmission assets that directly or indirectly tie into the Gilead hub that could FID on the heels of this?
Thank you and good morning um, with the FID of Guardians 3. Um, how do you think about gas sourcing for this project and are there additional uh Brownfield expansions Upstream of guardian on your other transmission assets that directly or indirectly tie into the Juliet Hub? Um that could fit on the heels of this.
David Slater: Yeah, I mean, you can kind of see our physical network if you look at the map, and that customer will have to procure gas at the Gilead hub into this capacity, and there's various ways to feed that. Certainly, our pipelines and our pipeline network, we have two pipelines that can feed the Gilead hub, Midwestern and Vector. You know, the Vector pathway can bring you all the way back to Appalachia on Nexus. So, that certainly will be part of the future conversation as they, you know, take care of getting critical firm capacity into the state to serve the growing demand in the state. And I think as they look further upstream, we'll clearly be part of that conversation. We have a very large percentage of our Washington 10 storage capacity that's dedicated to Wisconsin utilities.
Yeah. I mean you can kind of see our physical network if you look at the map and uh,
That customer will have to procure gas at the Joliet Hub into this capacity. And there are various ways to feed that; certainly our pipelines and our pipeline network. We have two pipelines that can feed the Joliet Hub: Midwestern and Vector.
Um, you know, the vector path we can bring you all the way back to Appalachia on Nexus. So that certainly will be part of the future conversation as they, you know, take care of getting critical firm capacity into the state, to serve the growing demand in the state.
And I think as they look further Upstream will clearly be part of that conversation.
David Slater: So, there is already a very well-established firm pathway between Michigan and Chicago, the, you know, the Gilead hub that today serves a big portion of that Wisconsin market. So, we absolutely believe that'll be part of the conversation going forward.
We have a very large percentage of our um, Washington 10 storage capacity, that's dedicated to Wisconsin utilities. So there is already a very well established firm pathway between Michigan and Chicago though. You know the Jolly at HUB.
Um, that, uh, today serves a big portion of the Wisconsin market, so we absolutely believe that will be part of the conversation going forward.
Theresa Chen: Got it. And going back to your earlier comments about LNG, David, clearly, 2025 has been a banner year so far for this part of the energy infrastructure value chain, and your feed gas assets are integral in moving these molecules. Can you share any color at this point on potential additional phases of LEAP from here, and how have the competitive dynamics evolved given multiple infrastructure providers along that corridor and the fierce competition that has resulted?
Michael Blum: Yeah, that's a great question. Maybe I'll start with the short term and kind of walk my way through an answer for you, but I think Jeff may have mentioned it in his opening remarks that we've seen some short-term favorability on LEAP, and it kind of goes to your statement, you know, as these volumes have begun to physically ramp, you know, and we're peaking now above 16 BCF a day, that they need to come from somewhere. So, I think we've been a beneficiary of that this summer so far, which has been very nice to see that demand showing up and, you know, searching for the molecules. So, that's the short term. I'd maybe draw your attention to our deck. We did announce this quarter that we are expanding our delivery point connectivity into the, you know, the LNG header system.
Got it. Um, and going back to your earlier comments about LNG David, um, clearly 2025 has been a banner year so far, um, for this part of the energy infrastructure value chain and your feed gas assets, are integral in moving. These molecules, can you share um, any color at this point on potential additional phases of leap from here? And how have the competitive Dynamics? Evolved given multiple infrastructure providers along that Corridor and the fierce competition, um, that has resulted
Yeah, that's a great question. Um, maybe I'll start with the short term and kind of walk my way through an answer for you. But, um, I think Jeff may have mentioned it in his opening remarks that we've seen some short-term favorability on Leap.
And and it kind of goes to your statement, you know, as as these volumes have begun to physically ramp you know and we're we're peaking now above 16 BCF a day that they need to come from somewhere. So I think we've been a beneficiary of that this summer. Um, so far
Michael Blum: We're expanding that by 1.25 BCF a day. A big chunk of that is going to Woodside. I think a BCF a day of that's going to Woodside, and the residuals are going to Cameron. So, we're positioning ourselves for that continued ramp. Again, competitively speaking, we've been really intentional about making sure that our assets are deeply interconnected with all the demand along the Gulf Coast and Louisiana so that shippers on our system have maximum flexibility and optionality. And likewise, we've been doing the same in basin to get really strong receipt point connectivity from Carthage all the way through into Louisiana on the supply side. So, that's kind of been our strategy in terms of positioning the asset. And then, yes, at the end of the day, like you said, there's competitive tension, which is healthy.
The residuals are going to Cameron.
so, we're positioning ourselves for that continued ramp, um,
Again, we've competitively speaking, we we've been really intentional about making sure that our assets are deeply interconnected with all the demand, uh, along the, um, the Gulf Coast in Louisiana, so that shippers on our system have maximum flexibility and optionality.
And likewise we've been doing the same in Basin, to get really strong receipt Point connectivity from, uh, Carthage all the way through, um, into Louisiana, on the supply side. So that's kind of been our strategy in terms of positioning the asset.
Michael Blum: We're pretty confident that we're going to win our fair share of that market. There's a large demand coming, you know, as evidenced by all the other projects that are being built. The nice thing about our project is it's real, it's in the ground, it's flowing today. Customers can see exactly how the asset works today versus a paper pipe on someone's desk somewhere. So, those are the factors that are at play right now, and we'll continue to compete with our brethren in the space. And again, I'm confident we're going to get our fair share.
And then yes, at the end of the day, like you said there that there's competitive tension, which is healthy. Um,
We're pretty confident that we're going to win our fair share of that market. Um there's there's a large demand coming, you know, as evidenced by all the other projects that are being built. Um, the nice thing about our project is it's real, it's in the ground. It's it's it's flowing today. Customers can see exactly how the asset works today versus uh a paper pipe uh on someone's desk somewhere. So uh the those are the factors that are at play right now and we'll continue to compete with um with our brother and in the space and again I'm calling
We're going to get our fair share.
Theresa Chen: Thank you.
Thank you.
Operator: Thank you. Our next question comes from the line of Manav Gupta from UPS. The line's open.
Thank you. Our next question comes from the line of manav Gupta from UPS.
Manav Gupta: Good morning. Congrats on the fleeting upgrades. I wanted to touch a little bit. Last year, obviously, you announced a very smart deal, and the benefits can be seen already. I'm just trying to understand, is there a bolt-on strategy still in place? We saw another bolt-on deal, smart deal today by another competitor of yours. And so, I'm just trying to understand between all these good growth projects you have, what would be the appetite for small bolt-on deals? And if you're still looking for them, what exactly are the criteria for which you decide that this is a good deal and we should move ahead with it?
Good morning. Uh, congrats on the creating upgrades. I, I wanted to touch a little bit last year. Obviously, you announced a very smart deal and and the benefits can be seen already and just trying to understand. Um, is there a bolt-on strategy? Still in place, we saw another bolt on the smart deal today by another competitor of yours. And so I'm just trying to understand between all these good growth projects you have. What would be the appetite for small bolt-on deals and if you're still looking for them, what exactly are the criteria for which you decide that this is a good deal and we should move ahead with it.
David Slater: Yeah, good morning, and thank you for the question. So, yes, we are very pleased with how this acquisition is playing out. I think, as I said publicly, we fully expected there would be growth in this region and additional investment opportunity. It's coming at a much quicker pace than I think we expected. And it's a core investment in terms of our core strategy, right, to grow our pipeline segment, to do it with long-term, high-quality investment-grade counterparties, you know, in a FERC-regulated asset construct, right? So, it's absolutely right down the fairway for us, and we're very excited about that. In terms of additional bolt-on opportunities, we're always looking for those. What is the criteria that would guide our activity in that space? I'd go back to our core investment thesis around the company. We're a pure-play natural gas company, long tenor in our portfolio, high-quality counterparties.
Yeah. Um, good morning and uh, thank you for the question. Um,
So yeah, um I we are very pleased with how this acquisition is playing out. Um,
I think, as I've said publicly, um, we we fully expected there would be growth in this region and uh, additional investment opportunity. It, it's coming at a much quicker Pace than I think we expected.
um,
And it's it's core. It's it's a core, uh, investment in terms of our core strategy, right? To to grow our pipeline segment, to do it with long-term high quality investment grade counterparties, um, you know, in a for regulated, um, asset construct, right? So, uh, it's absolutely right down the Fairway for us and we're very excited about that. In terms of additional bolt-on opportunities, we're always looking for those. Um, what is the criteria that
Would guide our activity in that space. I'd go back to our core investment thesis around the company.
We're a pure play natural gas company.
um,
David Slater: We've said publicly that our stated goal is to grow our pipeline segment to 70% or higher. Just to remind everybody, when we spun the company, we were at 50%. As a snapshot in time today, we're at 70. Feels like we're moving to 70 plus now. So, those fundamental strategies of having a high-quality portfolio with very predictable cash flows, like Jeff said, you know, growing our dividend as we grow EBITDA, maintaining a real healthy balance sheet, and, you know, achieving investment grade by all three rating agencies was a big milestone for us that happened in the last quarter. So, again, it just goes to what I'll call the quality metrics of the portfolio. That's very important to me. I believe that's very valued by an investor base. That's the discipline strategy that will guide us as we consider any bolt-on that may present itself.
Uh, long tenor in our portfolio high-quality counterparties.
We we've said publicly that our state of goal is to grow our pipeline segment.
To 70% or higher, um, or just to remind everybody, when we spend the company we're at 50% uh, as a snapshot in time. Today we're at 70. Um, feels like we're moving to 70 plus now um,
so those fundamental strategies of having a high quality portfolio with very predictable cash flows like Jeff said,
You know, growing our dividend as we grow ibida.
Um, maintaining a real healthy balance sheet and uh, you know, achieving investment grade by all 3 rating agencies.
Uh what was a big milestone for us? Uh that happened in the last quarter?
So again it just goes to what I'll call the quality metrics of the portfolio. That's very important to me. Um I believe that's very valued by our investor base.
David Slater: And obviously, this goes without saying, bolt-on M&A has to compete with organic growth. We have a very robust organic growth opportunity set in front of us. Our job is to allocate capital and maximize shareholder value. So, bolt-on M&A has to make strategic sense and compete with organic capital allocation. So, I'll stop there.
Consider any bolt-on um that may present itself and obviously this goes with what I'm saying. Um bolt-on m&a has to compete with Organic growth.
We have a very robust organic growth. Um,
Opportunity set in front of us. Um, our job is to allocate capital and maximize shareholder value. Um so
Manav Gupta: Thank you for a very detailed and my quick, very quick follow-up is it's about seven months since you have a new federal government. Have things actually started changing on the ground? Are you feeling it's easier to get permits? Is it easier to move ahead with the projects? If you could talk about how this change in the administration has been a little bit of a tailwind for DTM. Thank you.
Bolt-on m&a has to make the Strategic sense and compete with Organic Capital, allocation, so I'll stop there.
Thank you for the very detailed my quick very quick. Follow-up is it's about about 7 months since you have a new federal government have things actually started changing on the ground. Are you feeling? It's easier to get permits, is it easier to move ahead with the projects? If you could talk about, how this change in the Administration has been a little bit of a Tailwind for DTM. Thank you.
David Slater: Yeah, the change in administration has been a breath of fresh air. They're working to reduce the friction in large-scale infrastructure investments, and they're working at various levels, you know, across agencies, executive orders. Supreme Court's weighed in on a few decisions. So, there's this multi-prong approach that the administration has been taking to reduce the friction that we've seen historically in large-scale energy capital deployment. I was actually in Washington last week, had an opportunity to visit with all three FERC commissioners, the permanent commissioners, and again, just a very constructive attitude, very curious and engaged. Clearly, a sentiment there that there is an acknowledgment that we need significant investment in energy infrastructure in this country to meet the growing demand and to compete on the world stage. So, a lot of the pieces are all pointed in the right direction, and that's really encouraging.
Yeah, the change Administration has been a breath of fresh air. Um,
they're working.
To um reduce the friction in large scale, infrastructure Investments and they're working at various levels, you know, across agencies executive orders um Supreme Courts weighed in on a few decisions. So there's a multi-prong approach that the Administration has been taking to reduce the friction that we've seen historically in large-scale energy, Capital deployment.
um, I was actually in Washington last week had an opportunity to visit with all 3 for Commissioners, uh, the permanent Commissioners and um,
Again, just a very constructive attitude, um, very curious and engaged.
Um, clearly a sentiment there that there is an acknowledgement that we need significant investment in energy, infrastructure in this country, um to meet the growing demand and to compete um, on the world stage. So
David Slater: You know, I think it's going to unleash a significant amount of capital into this sector over, you know, the next three or four years, which is really encouraging.
A lot of the pieces are all pointed in the right direction, and that's really encouraging. Um,
you know, I think, I think it's going to unleash a significant amount of capital into this sector over, uh, you know, the next 3 or 4 years, which is really encouraging.
Manav Gupta: Thank you so much.
Thank you so much.
Operator: Thank you. Our next question comes from the line of Jean Anne Salisbury from Bank of America. The line's open.
Thank you. Our next question comes from the line of Gene and Salsbury from Bank of America.
Theresa Chen: Hi, good morning. When you contemplated your 2026 EBITDA early guidance number earlier this year, I guess there was probably an embedded expectation of how quickly projects in your backlog would move to FID. Can you just kind of speak to whether that movement to FID is kind of happening as you expected or slower, even faster?
The line's open.
Hi. Good morning. Um, when you contemplated your 2026 Evita early guidance number earlier, this year, um, I guess there was probably an embedded expectation of how quickly projects in your backlog would move to FID. Can you just kind of speak to whether that movement to FID, is kind of happening as you expected or slower even faster?
David Slater: Yeah, that's a good question. I'm just thinking in my mind right now how I want to answer it. I think the simple answer is, you know, we reaffirmed our '26 early outlook, and everything that's been happening is happening inside that two-way. So, yes, we are definitely on track, confident in delivering that early outlook. And I think as the year progresses, you know, we're in the second quarter here, as the year progresses, if we need to adjust or change that, we'll be sharing that with the investors.
Yeah, that's that's a good question. I'm just, I'm just thinking in my mind right now. I want to answer it. I think the the simple answer is, um, you know, we we reaffirmed our 26 early Outlook,
And everything that's been happening. Um, is happening inside that 2-way.
Uh, so yeah, we are definitely on track. I'm confident in delivering that.
That early outlook, and I think as the year progresses, you know, we're in the second quarter here. As the year progresses, if we...
Theresa Chen: Okay. Thank you for that. And then as a follow-up, congrats on getting the Hainesville and Appalachia gathering expansions online. Can you just remind us how much total capacity that will take you to in each basin, kind of compared to the Q2 volumes on slide 13 that you're at now?
Need to adjust or change that. We'll be uh we'll be sharing that with uh with the investors.
Okay. Um thank you for that. Um and then as a follow up um congrats on getting the hands Bill and Appalachia Gathering expansions online, can you just remind us? How much total capacity that will take you to in each Basin, uh, kind of compared to the the QT volumes on slide 13 that you're right now?
David Slater: That's a really good question. You're going to stump me on that one because I don't know the answer off the top of my head, but I'm looking at Todd Lohrmann right now, and he's smiling, and he will get back to you with.
Theresa Chen: Okay, sure. Sorry about that. Cool. That's all for me. Thank you.
Uh, that's a really good question here. I'm, you're, you're going to stump me on that 1 because I don't know the answer off the top of my head. But I'm, I'm looking at Todd lurman right now and he's smiling and he will get back to you with okay. Sure. Sorry about that. Um, cool. That's all for me.
Operator: Thank you. Our next question comes from the line of John Mackay from Goldman Sachs. The line's open.
Thank you.
Our next question comes from the line of John my from Goldman Sachs.
Michael Blum: Hey, good morning, guys. Thank you for the time. I wanted to start on the backlog. So, you kind of FID'd about $600 million of projects today. I think you guys were really clear on those. I think they made a lot of sense that you're able to come out with them. But I guess you're keeping the backlog number unchanged. I understand the 2.3 is a, you know, a risked number, but maybe just kind of talk through the moving pieces on kind of what could be coming in there. How do you think about risking the piece that hasn't reached FID yet? Maybe just moving pieces. Thanks.
The line's open.
Coming in there. How do you think about risking the uh,
Piece, that hasn't reached FID yet, maybe just the moving pieces. Thanks.
David Slater: Yeah, good morning, John. Maybe I'll start at the highest level. You know, when we updated that backlog in the beginning of the year, and we're sitting here in the second quarter, and we have 50% of that backlog FID'd. That feels real positive to me and to the whole organization. I think that's a reflection of the macro environment that we're in, and we've kind of talked about that already on the call here through some of the questions. So, I'd say it's very encouraging that we're six months into a five-year plan, and we're 50% FID'd. So, I think it's safe to say that's de-risking, significantly de-risking that backlog. In terms of process, the way we're going to address this, John, with our disclosures is we'll annually update that backlog. I don't think it makes sense for us to be trying to do that quarter by quarter.
Maybe I'll start at the highest level. Um, you know, we when we updated that backlog, uh, in the beginning of the year, um
And we're sitting here in the second quarter and we're we have 50% of that backlog. Fid
that feels real positive to me and to the whole organization. I think that's a reflection of the macro environment that we're in. And we've kind of talked about that already on the call here through some of the questions. So, I'd say it's very encouraging that we're 6 months into a 5 year plan and work 50% fid.
So, I think, I think, I think it's safe to say that's the risking significantly de-risking that backlog.
Um, in terms of process, um,
David Slater: You know, it's a long-term view, and I think that's how we're going to handle that going forward. So, what I would say is you should expect that, you know, on the year-end call, we'll do a refresh on that backlog. Obviously, the timeframe will move forward a year, and we'll do a refresh. But, you know, as we sit here today, well, I'll start by saying, as we sat here back in the new year, I was highly confident on executing that backlog. That is not the gross backlog. That is the backlog that we are highly confident that we're going to execute on. And that confidence level has only, you know, significantly gone up in the last six months. So, feeling really good with what the market's presenting to us.
What the way we're going to address this John, with our disclosures is, Will, Will annually update, that backlog? Um, I don't think it makes sense for us, to be trying to do that quarter by quarter. You know, you know it it's it's a long-term View. And, um,
I I think that's how we're going to uh, handle that going forward. So what I would say is, you should expect that, you know, on the year on call, will will do a Refresh on that backlog. Obviously, the time frame will move forward a year and we'll do a refresh. But um, you know, as we sit here today, well, I'll start by saying as we sat here back in the new year, I was highly confident on executing that backlog, that that is not the growth backlog. That is the backlog that we are highly confident that we're going to execute on.
David Slater: I feel like our asset base is sitting in the right locations in the country to take advantage of the, you know, the momentum that we're seeing across the country, the derivative investments that are driven by power demand growth. And then, as we have already talked about, the significant LNG ramp that, like I said on my opening remarks, a significant portion of that is already FID'd. So, that's coming. It's just a question now of, you know, getting our fair share of that.
And, um, that conference level has only significantly gone up in the last six months. So, um, feeling really good with what the market is presenting to us.
Um, I feel like our asset base is sitting in the right locations in the country to take advantage of the, um,
you know, the momentum that that we're seeing across the country, the derivative, um, Investments that are driven by power demand growth and then, as we have already talked about the significant LNG ramp that, uh, like I said on, on my opening remarks sign, uh, significant portion of that is already FID. So that's coming. It's just a question. Now, of, you know, getting our fair share of that.
Michael Blum: All right, that's clear. I appreciate you walking through that. For the second question, I just wanted to go back to some of the kind of, you know, Ohio through Midwest opportunities. Can you remind us, one, I guess, how to think about expansion capacity on Nexus? And then, two, you know, maybe taking that a step further, how you could think about, you know, maybe either some of the Midwest utilities participating in something reaching back to the basin versus potentially some of the ENPs there looking to move their, you know, incremental supply out?
All right, this clear. I appreciate you. Uh, walking through that for the second question. I just wanted to go back to some of the kind of, you know, Ohio through Midwest opportunities. Can you remind us 1? I guess how to think about expansion capacity on Nexus and then 2, you know, maybe taking that a step further how you could think about, you know, maybe either some of the Midwest, utilities participating in something, reaching back to the Basin versus potentially, some of the, uh, entps there looking to move their, you know, incremental Supply out,
David Slater: Yeah, what I'm going to share with Nexus, and this might be a bit of a history lesson for some folks on the call, is that when we built Nexus, we actually had an additional compressor station in the original design that we elected not to construct, just based on the amount of contracts that we had anchored prior to going into construction. So, you know, Nexus is like ready for a compression expansion. The simple way to think about it is every major compressor is going to deliver, you know, 100 to 200 million a day of capacity, just depending on where those shippers want to take that gas to, like how far into Ohio or how far into Michigan they want to take the capacity. So, it's very bite-sized and very digestible into the market.
Yeah. Why don't we start with Nexus? And, and this might be a bit of a history lesson for some folks on the call is that when we um, built Nexus, uh, we we actually had an additional compressor station in the original design that we elected not to construct. Um, just based on the amount of, um, contracts that we had uh, anchored, uh, prior to going into Construction.
so, you know next Nexus is like
Like ready for a, a a compression expansion. Um, the simple way to think about it is every major, every major compressor is going to deliver, you know, 100 to 200 million a day of capacity. Just depending on where those shippers want to take that gas to like, how far into Ohio or how far into Michigan. They want to take the classes,
David Slater: It's a lot like LEAP in terms of, you know, we can expand, you know, very rationally, a couple hundred million a day, and it's a very, it's a relatively light touch in terms of a regulatory application and construction. So, that's how to think about Nexus. So, and Nexus clearly is one of the new pipes that was built in the last decade that has significant expansion runway in front of it. So, you know, it can comfortably expand up to two, two and a half BCF a day, again, depending on where the gas is ultimately destined to go to. So, there's a nice runway there of expandability that we're obviously very aware of and working actively in the market to commercialize. So, that would be point number one. You know, I think you mentioned Michigan.
So it's very, um, bite-sized and very digestible into the market. It's a lot like LEAP in terms of, you know, we can expand, you know.
the gas is ultimately destined to go to, um,
So there's a nice Runway there of expandability um, that we're obviously very aware of and and working, um, actively in the market to, um, to commercialize. So that would be Point number 1. Um,
David Slater: Again, I think go look at the DTE transcript about their views on gas growth potential in Michigan and, you know, power generation growth in Michigan. I think there's some pretty bullish activity happening in Michigan right now, all driven by data centers, very similar to what's happening in Wisconsin and other locations around our footprint. So, again, let's just make it up for a minute. You build another combined cycle power plant in Michigan. We have a lot of pipeline assets pointed to Michigan, and we have storage in Michigan. So, we are going to be a beneficiary of that kind of demand materializing in Michigan, either directly or indirectly through those assets that serve Michigan. So, again, just a lot of very favorable fundamentals playing out right now in the marketplace that are all very supportive of our assets and our long-term strategy.
You know, I think he mentioned Michigan. Um, again I I think I think go look at the DTE transcript about their views on
Gas growth potential in Michigan, and uh, you know, power generation growth in Michigan. I think there's some pretty bullish activity happening in Michigan. Right now, all driven by data centers. Um, very similar to what's happening in Wisconsin and other locations around our footprint. So, again, um,
Let's just, let's just make it up for a minute, you build another combined cycle, power plant in Michigan.
Uh, we have a lot of pipeline assets pointed to Michigan, and we have storage in Michigan. So, we are going to be a beneficiary of that kind of demand materializing in Michigan, um, either directly or indirectly through those assets, that serve Michigan. So, again, just a lot of very favorable fundamentals, um, playing out right now in the marketplace. That
Um, are all very supportive of our assets and our long-term strategy.
Michael Blum: I appreciate that. Thanks for your time.
I appreciate that. Thanks for your time.
You're welcome.
Operator: Thank you. Our next question comes from the line of Keith Stanley from Wolff Research. The line's open.
Thank you. Our next question comes from the line of Keith Stanley from Wolfe Research.
The lines open.
Theresa Chen: Hi, good morning. Wanted to start on the modernization investment. So, you said most of the phase one is on Guardian. Should we assume that can get reflected in the rate case filing potential in the second half of '26, even though the project's coming out in the second half of '27, so you can look forward in that case? And then, at a high level, should we think of this modernization spend and ongoing programs as directly growing the EBITDA of the company entirely, or is some of this spend going to be to maintain rate base over time?
Hi. Good morning, wanted to start on the modernization uh investment. So you said most of the phase 1 is on Guardian. Should we assume that can get reflected in the
Rate case filing potential in the second half of 26 even though the Project's coming on in the second half of 27. So you can look forward in that case.
And then at a high level, should we think of this modernization, spend, and ongoing programs as directly growing the ibitta of the company, um, entirely or is some of this spend going to be to maintain rate base over time?
David Slater: Yeah, so I'll start with Guardian. The short answer is yes. We expect that to roll through the next rate conversation with the anchor shippers of the pipeline. And just to remind everybody that approximately 95% of the capacity of the current pipeline are the WECT family of utilities, just for reference. So, yes, we expect that that modernization will be part of the rate case conversation and that the rate adjustment related to the modernization would be happening when those facilities go into service. And, you know, this is a like-for-like replacement and modernization, so it'll have a very light regulatory touch in terms of the FERC. So, that would be the Guardian component.
Yeah, so I'll start with Guardian. Um,
the short answer is yes, we expect that to roll through the next um,
Rate, uh, conversation with the anchor shippers, um, of the of the pipeline. And just to remind everybody that
Approximately 95% of the capacity of the current pipeline. Uh, are are the wet family of utilities just just for reference.
um,
So yes, we expect that modernization will be part of the rate case conversation.
And that the rate adjustment related to the modernization would be happening when those facilities, uh, go into service.
And, you know, this is a like-for-like replacement and modernization. So, it'll have a very light regulatory touch in terms of the FERC.
David Slater: In terms of how to think about modernization more broadly, at the highest level to think about it, I would say that the regular maintenance that we would put into those FERC assets kind of keeps the rate base kind of treading water relatively flat. I mean, there may be some timing issues here from year to year, but generally speaking, that keeps the rate base flat. So, I think your thesis there and your question is correct, that modernization will predominantly grow the EBITDA on those three regulated assets, which is one of the reasons why we're so excited about it. Not only does it significantly improve the quality of the asset and the reliability to the customers, but it has a growth dimension to our total pipeline segment.
So, that would be the guardian um, component. Uh, in terms of how to think about modernization more broadly, um, at the highest level. Um, to think about it. I would say that the regular maintenance that we would put into, uh, those spurk assets,
Kind of keeps the rate base, kind of Treading Water, relatively flat. I mean, there may be some timing issues here, um, from year to year. But generally speaking, that keeps the rate base flat.
So I I think your, your thesis there and your question is correct, that modernization will predominantly grow the ibida on those 3 regulated assets.
Which is 1 of the reasons why we're so excited about it. Not only does it significantly improve the quality of the asset and the reliability that the customers. But it it it has a growth Dimension to our, you know, to our total pipeline segment.
Theresa Chen: Very clear. Thanks for that. Second question, are there any opportunities to expand your existing pipes to be part of a solution to increase Appalachia takeaway capacity, potentially to the Gulf Coast even? And curious if any updated thoughts you talked last quarter on, you know, could you maybe work with the Borealis project and Texas Gas to be part of a solution?
Very clear. Thanks for that. Uh Second question.
Are, are there any opportunities to expand your existing pipes, to be part of a solution to increase? Appalachia, takeaway capacity, potentially to the Gulf Coast, even and curious. If any updated thoughts, you talked last quarter on, you know, could you maybe work with the Borealis project and Texas Gas to be part of a solution?
David Slater: So, yes, we're obviously working on that. Like I said previously, we're a very open-minded company, and we work with everybody. We like to have good relations with all of our peers and work cooperatively with them, especially when it's to each company's mutual benefit. So, that's just how we work, generally speaking, and that isn't going to change going forward. So, yes, there are lots of different ways that people are looking at creating additional egress capacity out of Appalachia. And again, Appalachia is the largest resource base we have in the country and has tremendous runway on it in terms of, you know, decades of resource and runway to increase the annual production without stressing the system there at all. So, the short answer is yes, we are looking at all the different ways that we can use our assets to expand the egress capacity.
Um,
So, yes, we're we're obviously working on that. Like I said, uh, previously, um,
with them, especially when it's to
Each company's Mutual benefit. So that's just how we work. Um, generally speaking, um,
And that that isn't going to change going forward. So, yes, there are lots of different.
ways that people are looking at creating additional egress capacity out of Appalachia
David Slater: We talked about Nexus already on the call. That's an obvious one, but we're looking at all the other ways as well and how can we participate in a cooperative manner with even other companies to unlock basin capacity.
And again, Appalachia is the largest resource base. We have in the country and has uh, tremendous runway on it in terms of, you know, Decades of resource and Runway to increase the annual production, uh, without stressing the system there at all. So, so the short answer is, yes, we are. Looking at all the different, um, ways that we can use our assets to expand. The egress capacity, we talked about Nexus, already on the call, that's an obvious 1, but we're looking at all the other, um,
Ways as well, and how can we participate? Um, in a Cooperative manner with even other companies to unlock space and capacity,
Michael Blum: Thank you.
Thank you.
Operator: Thank you. Our next question comes from the line of Speedo Davis from City. The line's open.
Thank you.
Our next question comes from the line of Speedo Deuce from City.
The lines open.
Theresa Chen: Thanks, operator. Morning, gentlemen. First question, I wanted to start. Morning. I wanted to start with the Midwest pipelines, and it's a two-part question. So, David, as I remember when you announced that transaction originally, I think you talked about these three growth buckets that you expected to come out of these pipelines, and modernization was certainly one of those. And I think the intention at some point was to provide the market with a sort of broad opportunity set and actually quantify the growth opportunity set for those buckets. Curious where that stands and how to think about that potential update now that you've got modernization underway. Second part of that question, just around modernization itself, you've got this cadence of one rate case per year, '26, '27, '28. Is that how we should think about sort of the next phases as you announce them?
A separator morning, gentlemen. Uh, first question, I want to start morning. Um, let's start with the Midwest, uh, pipelines. It's a, a 2-part question. Uh, so David, as I remember when you uh, announced that transaction originally I think you talked about these 3 growth buckets, that you expected to come out of these pipelines and modernization was certainly 1 of the those and I think the intention at some point.
Theresa Chen: Are they a year away, or could you actually do that much sooner?
Was to provide the market with a sort of broad uh, opportunity set and actually quantify the growth opportunity set for those buckets curious, where that stands and how to think about that potential update. Now that you've got modernization underway, second part of that question. Just around modernization itself. You've got this Cadence of 1 rate case per year. 26 27/28, is that how we should think about sort of the next phases as you announce them? Are they a year away or could you actually do that much sooner?
David Slater: Yeah, thanks for the question, Spiro. Maybe we'll just start with what we have disclosed, which is, you know, between G3 and, you know, modernization phase one, we've essentially disclosed half a billion dollar investment in these assets six months in, which is pretty darn exciting from our perspective. Hopefully, it feels the same way. In terms of how we're going to disclose the total opportunity set, I'll go back to my earlier answer. And I think as we've thought it through, we don't want to get in this cadence of every quarter changing this and changing that. The long-term capital backlog, I think we're going to get in a cadence of refreshing that annually so that we're not bouncing it around quarter to quarter. And I think that'll just be a more stable, predictable way for the investment community to understand our business.
Yeah, uh thanks for the question, Spyro. Um, maybe we'll just start with
What we have disclosed which is, you know, between G3 and you know modernization Phase 1. We've we've essentially disclose half a billion dollar investment in these assets.
6 months in.
Um, which is pretty darn exciting from our perspective. Um,
Hopefully, it feels the same way uh, in terms of how we're going to disclose the total opportunity set. I'll go back to my earlier answer and I think as we thought it through, we don't want to get in this case, Cadence of every quarter.
David Slater: We'll continue to talk about how we're doing. Like we talked on the call today, we're 50% of the way there six months in on our 2.3. I think you can infer appropriately how we feel about that 2.3 based on where we are six months in. And again, we'll refresh at the end of the year. But my goodness, we're feeling very, you know, very happy with our acquisition. It's coming along nicely. There's a really clear line of sight for a significant capital deployment here. The growth that has occurred already is very significant to us in terms of our size and the size and scale of the growth.
Changing this and changing that um the, you know, the long term, Capital backlog. I think we're going to get in a in a Cadence of refreshing that annually so that we're not bouncing it around quarter to quarter. And I think that'll just be a more stable predictable way for the investment Community to understand our business. Um we'll continue to talk about how we're doing.
Like we talked on the call today. We're uh 50% of the way there, 6 months in on our 2.3% 2.3 based on where we are 6 months in.
And and again, we'll refresh at the end of the year. But um,
David Slater: But the more encouraging part, Spiro, is as I look at that business and as we get deeper and deeper and understand it more and more and get ourselves and the way in which we approach our customer base, as we get deeper into this new customer base, we just continue to uncover more and more, or we're seeing more and more growth opportunities. So, it's just very encouraging and tremendously happy with the acquisition. I'll just say it that way.
My goodness, we're feeling very, you know, you know, very happy with our acquisition. Um, it's coming along nicely. There's really clear line of sight for a significant Capital deployment here. The growth that has occurred already is very significant to us in terms of our size and the size and scale of the growth. Um, but the, the more encouraging part Sparrow is, is I look at that business and as we get deeper and deeper and understand it, more and more, and get get ourselves. And the way, in which we, um, approach our customer base, as we get deeper into this new customer base. We just continue to uncover more and more, uh, or we're seeing more and more growth opportunities. So it's just very encouraging and, um,
Tremendously happy with the acquisition. I'll just say it that way.
Theresa Chen: Got it. No, that's a great color. It's good to hear. The second question, kind of picking up on that last point, just around a lot of the sort of unexpected growth that seems to be coming forward. As we look at 2026 CapEx, you know, I guess I could call it half full if we're just comparing it to 2025. But, you know, I guess as you sit here today, and I know you're not going to guide '26, but.Should
Operator: we consider '26 as a similar CapEx spending year to '25? And I think about that in the context of Millennium Pro and maybe some other major projects that have yet to be sanctioned. And if you could, in that context, once again, just maybe remind us about how you think about any self-imposed capital spending limits in any given year.
But, you know, I guess as you sit here today and I know you're not going to guide to 26, but, but should we consider 26? As a similar capex spending year to to 25 and I think about that in the context of Millennium Pro and maybe some other major projects that have yet to be sanctioned. And if you could in that context once again, just maybe remind us about how you think about any self-imposed Capital spending limits in any given year.
Jeff Jewell: Yeah. I mean, I'll start at the highest level. You know, our goal and our experience over the last four years in a, you know, in not as constructive of an environment is just deploying our organic cash flow to predominantly greenfield opportunities across the network. We've been able to do that successfully over the last four years. You know, any M&A has really been, you know, over and above that utilizing dry powder that we've accumulated on the balance sheet with those two M&As that we've done over the last two years or three years. So, you know, as I look forward, we're looking really at organic investment opportunity using that free cash flow. As I look at where next year FID projects sit in relation to that, we're in no different position today than we were a year ago if we were looking ahead at '25.
Yeah, I mean, you know, I'll start at the highest level, you know, you know, our goal and our, um, experience over the last 4 years and and, uh, you know, and not as constructive of an environment, it's just deploying or organic cash flow to predominantly.
Green Field opportunities across the network.
Um, we've been able to do that successfully over the last 4 years. You know, any m&a has really been, you know, over and above that utilizing dry powder, that we've accumulated on the balance sheet. Um, with those 2 m&as, that we've done over the last, uh, 2 years or 3 years. So,
Jeff Jewell: So we're right on pace. We're right on track. I fully expect we'll deploy that. I think what you're kind of scratching at here, Spiro, is, well, what if the market is more robust and presents opportunities that are above and beyond your free cash flow? I think the nice thing here, and I'm kind of looking at Jeff right now, but you know the disciplined management of our balance sheet and getting to an investment grade, and as we continue to grow EBITDA inside our free cash flow, Jeff's accumulating dry powder again on the balance sheet. You know, we have a billion dollars of undrawn debt capacity on the revolver. So if we have little, you know, what I'll call timing mismatches, we've got plenty of debt capacity to handle timing mismatches.
You know, as I look forward, we're looking really at organic investment opportunity, using that free cash flow, as I look at where next year, FID projects, sit in relation to that. We're we're in no different position today than we were a year ago if we were looking ahead at 25. Um so we're right on Pace. We're right on track.
I fully expect we'll deploy that, I think what what you're you're kind of scratching at here. Spyro is. Well, what if the market is more robust and presents opportunities that that are above and beyond your free cash flow?
Um,
Jeff Jewell: But if the market does present opportunities that are above and beyond our free cash flow, we are accumulating dry powder on the balance sheet. We will not jeopardize investment grade. But we, you know, that dry powder in the back of our mind, we're thinking is either going to new greenfield opportunities or, as the question earlier, if an appropriate bolt-on presented that that fit the strategy and made sense in the portfolio, we have that dry powder optionality to pursue something like that as well. So it can go to either of those opportunities, Spiro. And that's kind of how I think about it at the highest level. And I hope I answered your question.
I think I think the nice thing here and I'm kind of looking at Jeff right now but you know, the disciplined management of our balance sheet and getting to investment grade. And as we continue to grow IBA inside of free, cash flow, Jess accumulating dry powder again on the balance sheet. You know, we have a billion dollars of undrawn, um, debt capacity on the revolver. So if we have little, you know what, I'll call timing um, mismatches. We've got plenty of debt capacity to handle timing mismatches, but if the market does present opportunities that are above and beyond our free cash flow, we are accumulating dry powder on the balance sheet. We will not jeopardize investment grade.
Um, but we, you know, that dry powder in the back of our mind. We're thinking is either going to new, uh, Green Field opportunities. Or is the question earlier if an appropriate bolt-on presented that that fit the strategy and made sense in the portfolio.
We have that dry powder optionality to pursue something like that as well, so it can go to either of those um, opportunities spiral. Uh, and that's kind of how I think about it at the highest level. And I hope I answered your question.
Operator: You did, David. Super helpful. I'll leave it there. Thank you, gentlemen.
David Brown: Thank you.
You did David super helpful, I'll leave it there. Thank you, gentlemen.
Thank you.
David Slater: Thank you. Our next question comes from the line of Robert Mosca from Mizuho. The line's open.
Thank you.
All right. The next question comes from the line of Robert Moscow from Miso.
The lungs open.
Todd Lohrmann: Hey, good morning, everyone. So a lot of positive indicators in the Hanesville and still a lot of expansion potential across your assets there, especially with these additional interconnections. But could you speak to maybe other opportunities you're assessing in the basin, be it last-mile solutions to LNG facilities, storage, or whether you've evaluated the potential to connect to PowerGen in Western Louisiana?
Hey, good morning everyone. Um, so a lot of positive indicators in the Haynesville and still a lot of expansion potential across your assets there. Especially with these additional interconnections. But could you speak to maybe other opportunities? You're assessing in the Basin, be it last mile solution to Leng, facilities storage or whether you've evaluated the potential to connect to powergen in Western Louisiana.
Jeff Jewell: Yeah. All of those that you rattled off, Rob, are in our sights right now. You know, we're definitely looking at greenfield storage opportunities. Our customers are asking for that. They're searching for that. Given the LNG demand ramp, that's going to be an element of the ecosystem down there that's going to be required and in significantly larger quantities as we look forward in time with this growth coming. So that's one that we're spending a lot of time on. You know, we have storage up here in Michigan. We're very familiar with storage. So that's clearly on our short list. You alluded to the interconnect expansions. You know, that's important. We are talking on the last-mile piece. If parties downstream of us, if there's opportunities to participate in last-mile expansions, and there will be a number of last-mile expansions required to meet this ramp, this LNG ramp.
Yeah. All all of those that you rattled off Rob are are in our, you know, in in our sites right now, you know, we're definitely looking at the Green Field storage opportunities.
Our customers are asking for that. They're they're searching for that um given the LG demand ramp that's going to be uh an element of the ecosystem down there, that's going to be required. And um,
required in significantly larger quantities as, as we look forward in time with this growth coming,
Jeff Jewell: You know, in terms of other, yeah, what I'll call incremental greenfield activity, you know, we've been very successful in the private producer space recently. And we continue to, you know, focus on that market segment. And you know, there are more and more privates emerging in the basin as the basin is becoming more of a focal point in the near term. So, you know, that's a segment of the market up there that we've been, that we will continue to focus on and try to pull them into the into the broader network there and, you know, and give them that that turnkey solution to go well ahead right to the LNG market.
So, that's 1 that we're spending a lot of time on. Yeah, we have storage up here in Michigan. We're very familiar with storage. Uh, so that's clearly in our, on our short list. Uh, you alluded to the, uh, the interconnect expansions. You know, that's important. We are talking on the last mile piece. If, if parties down stream of us, uh, if there's opportunities to participate in Last Mile expansions and there will be a number of Last Mile expansions required to meet this ramp, this LG ramp.
other yeah, what I'll call incremental uh, Green Field activity activity, and we've been very successful in the private producer space recently, and we continue to, um,
Uh, you know, focus on that market segment. And uh, you know, there there are more and more privates emerging in the Basin, as the Basin is becoming more of a focal point in the, in the near term. So, you know, that's a segment of the market up there that we've been, uh, that we will continue to focus on and try to pull them into the uh, into the broader Network there. And uh,
You know, and give them that uh that TurnKey solution to go, well, ahead right to the LG Market.
Operator: Got it. That's a great color. And then for my follow-up, there's been a couple of announcements this quarter around projects that could drive in basin demands in the Northeast. Were any of those projects included in your assessment of demand pull opportunities around your network? And do you have the potential to benefit either directly or indirectly from that increased pull in Southwest PA?
Jeff Jewell: Yeah, the short answer is yes. You know, some of these AI data center demands that are dropping, what I'll call in basin proper, so that they're not caught up in egress capacity constraints. You know, at the highest level, it's going to allow the basin to ramp. So, you know, the ones that have been recently announced, you know, it's going to allow basin production to ramp, call it a BCF, BCF Plus over the next couple of years as those facilities get constructed. And yeah, that'll drive incremental drilling across the basin. And we believe that, you know, some of that incremental drilling is going to happen on our footprint. It'll happen across the basin. But some of those big public companies that have announced and have been very vocal about this are customers of ours. So I'll just leave it at that.
Got it. That's, uh, that's great color. Um, and then for my follow-up, there have been a couple of announcements this quarter around projects that could drive inbound demand in the Northeast. Were any of those projects included in your assessment of demand pull opportunities around your network? And do you have the potential to benefit, either directly or indirectly, from that increased pull in Southwest PA?
Yeah, the short answer is. Yes. Um, you know, some of these um uh AI data center, uh demands that are dropping. What I'll call in in Basin proper, um, so that they're not caught up in egress capacity, constraints.
Um you know, at the highest level, it's going to allow the Basin to ramp. So you know, the ones that have been recently announced, you know, it's going to allow Basin production to ramp call it. A BCF BCF plus over the next couple years as those facilities get constructed.
And yeah, that'll that'll drive incremental drilling across the Basin. And and we believe that, you know, some of that incremental drilling is going to happen on our footprint, it'll happen across the Basin. Um
but some of those big public companies that have announced and have been very vocal about this um our customers of ours. So I'll just leave it at that.
Operator: Got it. Really helpful. Thanks for the time, everyone.
Jeff Jewell: You're welcome.
Got it really helpful. Thanks for the time everyone.
You're welcome.
David Slater: Thank you. Our next question comes from the line of Zach Venebre from TPH. The line's open.
Thank you. All right. Next question comes from the line of Zach. The never from tph.
Jeff Jewell: Hi, all. Thanks for squeezing me in. Maybe just starting on the Hanesville, good to see the record volumes for Q2. I was curious because I know some of those volumes are under acreage dedications as well as MVC-style contracts. At this point, are you guys above MVC levels, or are there a few of those contracts that are still below their contracted levels?
The line's open.
Hi, all. Thanks for squeezing me in. Maybe just starting on the Haynesville; good to see the record volumes for Q2. I was curious because I know some of those volumes are under acreage dedications as well as MVC-style contracts at this point. Are you guys above MVC levels? Are there a few of those contracts that are still below their contracted levels?
Jeff Jewell: Yeah, Zach, that's a great question. And it's a question that we get asked frequently. That's just a level of disclosure that we've not provided because of the sensitivity of a lot of those contracts with those individual customers. What I'll say at a high level is, you know, we'd like to put those those floors into our agreements there to protect the downside. And you know, I think I think over the last 18 to 24 months, you know, we've all lived through the downside of the Hanesville. And they accomplished what they were intended to accomplish. I'll just say it that way. We're kind of on the other side of the valley now. We're climbing the mountain on the other side. And you know, I think that's going to be positive for us. I'll just leave it at that, so.
Yes, Zack that's, uh, that's a great question. And, and it's a question that we get asked frequently. Um, that's just a, a level of disclosure that we've not provided. Um,
Because of the sensitivity of a lot of those contracts, uh, with those individual customers.
Um,
What what I'll say uh at a high level is, you know, we'd like to put those those floors into our agreements there to protect the downside and I you know I think I think over the last 18 to 24 months you you know we've all lived through the downside of the Hanceville.
and um,
They they accomplished what they were uh intended to accomplish, I'll just say it that way. Um,
We're kind of, we're kind of on the other side of the valley. Now, we're climbing the mountain on the other side. And, um,
You know, I I think I think that's going to be positive for us. I'll just leave it at that. So,
Jeff Jewell: Makes sense. Appreciate that. And then a quick one on the Northeast. Seems like volumes and EBITDA are going to ramp into Q4. Is it fair to assume Q3 is, you know, relatively flat to maybe slight growth, and then all the growth in the Northeast will hit in Q4?
Makes sense, appreciate that. And then a quick 1 on the northeast, um, seems like volumes and even are going to ramp into Q4, is it, is it fair to assume Q3 is, you know, relatively flat, to maybe slight growth and then, then all the growth in the Northeast will hit and Q4
Jeff Jewell: Yeah, I think what we're saying publicly is that we expect a flat entry-to-exit rate in Appalachia. And I think Jeff provided a little color as to what was happening in Q2. We had, you know, some timing, drilling timing. And you know, you shift drilling timing three or four months, and it creates dips. And we had some, you know, some maintenance/construction activity that occurred across the network that also impacted some volume flow. So that's really what happened. And we'll have, you know, the typical ramp, the seasonal ramp going into the winter. And we expect, you know, entry-exit flat rates out of the Appalachian gathering.
Um yeah. I think I think what we're seeing probably is that we expect a flat entry to exit rate, in in Appalachia and I think Jeff provided a little color as to what was happening in Q2 we had.
You know, some timing drilling timing and, you know, you shift your link timing.
3 or 4 months and and it creates dips.
uh, and we had some, uh,
you know, some maintenance wash construction activity, that occurred across the network that also impacted, uh, some volume flow. So, that's really what happened. Um,
And we'll have uh, you know, the the typical ramp the seasonal, ramp going into the winter. And we expect, uh, you know, entry exit flat rates out of the Appalachian Gathering.
Jeff Jewell: Makes sense. Appreciate the time, everyone.
Jeff Jewell: Oh, you're welcome.
At the time, everyone.
Oh, you're welcome.
David Slater: Thank you. There are no further questions. I'll turn the call back over to our CEO, David Slater, for closing remarks.
Jeff Jewell: Well, thanks again, everybody, for your time this morning and an excellent round of questions. We appreciate your interest in DTM and have a great day.
Thank you. There are no further questions, I'll turn the call back over to our CEO. David Slater for closing remarks.
Well, thanks again, everybody for your time this morning and uh an excellent uh round of questions. We appreciate your interest in DTM and have a great day.
David Slater: The meeting has now concluded. Thank you all for joining. Have a great rest of the day. You may now.
The meeting has now concluded. Thank you all for joining. Have a great rest of the day. You may now
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