DT Midstream, Inc. (NYSE:DTM) Q3 2023 Earnings Call Transcript

But that’s just my opinion. I think there will be a bit of a lag, before we see that ramp up and the pickup of activity. And like I said in my opening comments, I think this is a very short-term phenomenon. It’s not an if question, it’s a when question. And whether that pickup happens in November or in January, it doesn’t have a material impact on our long-term view and our long-term outlook.

Spiro Dounis: Helpful colors always. Thanks for the time guys.

David Slater: You’re welcome.

Operator: [Operator Instructions] The next question is from Keith Stanley with Wolfe Research. Your line is open

Keith Stanley: Hi, good morning. Just some questions on the CCS project. If you were to FID the project would the bulk of the capital spending be in 2024 or more likely in 2025, on the current plan? And then, can you remind us on how this ties to eventually paying more in cash taxes when you would expect to start paying more in cash taxes, and how that aligns with the start-up of the CCS project?

David Slater: Sure, Keith. Good question. So, assuming the FID, CCS in 2024, you’re correct. The capital will be spread out over likely a multiyear time frame like 2024, 2025, time frame. So it will not all hit in one year, which again is I think why we’re telegraphing our early view that we likely will have uncommitted free cash flow in 2024 again, based on the information that we have today. Jeff, do you want to address the other part of that question?

Jeff Jewell: Yes, sure. Our thought is around the cash taxes will start increasing probably around the back part of the five-year plan we’re talking 2026 2027. And then depending on final rulings around how the 45Qs is going to get played out as the direct pay or various other things that will sort of factor into our cash taxes also. But again, our — the increase in cash taxes is not going to be material for us. So, that’s our current view around that.

Keith Stanley: Thank you.

Operator: We have no further questions. At this time, we’ll turn it over to David Slater for any closing remarks.

David Slater: Well, thank you very much for your interest in DTM and we appreciate all the support and have a great day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.