DT Midstream, Inc. (DTM) | Investment Case

1. Company Snapshot

1.a. Company Description

DT Midstream, Inc.provides integrated natural gas services in the United States.The company operates through two segments, Pipeline and Gathering.

It develops, owns, and operates an integrated portfolio of interstate pipelines, intrastate pipelines, storage systems, lateral pipelines, gathering systems, related treatment plants, and compression and surface facilities.The company engages in the transportation and storage of natural gas for intermediate and end user customers; and collecting natural gas from points at or near customers' wells for delivery to plants for processing, to gathering pipelines for gathering, or to pipelines for transportation, as well as offers compression, dehydration, gas treatment, water impoundment, water storage, water transportation, and sand mining services.It serves natural gas producers, local distribution companies, electric power generators, industrials, and national marketers.

The company was incorporated in 2021 and is headquartered in Detroit, Michigan.

Show Full description

1.b. Last Insights on DTM

DT Midstream's recent performance was driven by strong Q2 2025 results, with reported net income of $107 million, or $1.04 per diluted share. The company's operating earnings and adjusted EBITDA also showed significant growth, with adjusted EBITDA reaching $277 million. The quarterly earnings beat estimates, with a quarterly earnings per share of $1.04, surpassing the Zacks Consensus Estimate of $0.98 per share. Additionally, the company achieved an investment grade rating with all three major credit rating agencies, a notable milestone. These developments have positioned the company for continued growth.

1.c. Company Highlights

Last Price	142.41
Change Percentage	1.24%
Open	139.54
Previous Close	140.66
Market Cap ( Millions)	14486
Volume	444915
Year High	142.85
Year Low	83.3
M A 50	125.76
M A 200	112.65

FCF Yield	4.30%
Dividend Yield	2.30%
ROE	9.41%
Debt / Equity	71.88%
Net Debt / EBIDTA	325.24%
Price To Book	3.06
Price Earnings Ratio	32.83
Price To FCF	23.25
Price To sales	11.65
EV / EBITDA	17.32

2. DT Midstream's Strong 2025 Performance and Promising Outlook

DT Midstream reported a robust financial performance in 2025, with adjusted EBITDA increasing by 17% to $1.138 billion, driven primarily by the Pipeline segment's 27% growth. The company's fourth-quarter adjusted EBITDA was $293 million, a $5 million increase from the prior quarter, supported by increased seasonal demand on its JV pipelines and higher LEAP revenue. The actual EPS for 2025 came in at $1.08, slightly below estimates of $1.11. Revenue growth is expected to continue, with analysts estimating a 7.0% increase for the next year.

Publication Date: Feb -24

                                    📋 Highlights
                                    2025 Adjusted EBITDA Growth:
                                                Surpassed guidance, reaching $1.138B (+17% YoY), driven by 27% growth in the Pipeline segment.
Pipeline Segment Expansion:
                                                Included successful integration of Midwest Pipeline acquisition and early completion of LEAP Phase 4, boosting capacity to 2.1 Bcf/day.
2026 Guidance Range:
                                                Set at $1.155B–$1.225B (midpoint +6% over 2025), with FID on 2 new projects in early 2026.
Organic Growth Backlog:
                                                Stands at $3.4B (gross) with $1B advanced in 2025, 80% allocated to pipeline projects.
Future Demand Projections:
                                                Target 5–8 Bcf/day growth over 5 years, driven by NEXUS expansion and Appalachian supply egress projects.

                                

Segment Performance

The Pipeline segment was the main driver of DT Midstream's growth in 2025, with a 27% increase in adjusted EBITDA. This growth was attributed to the Midwest Pipeline acquisition and higher LEAP and storage revenue. The Gathering segment's results were in line with the third quarter. The company's growth backlog represents its FID projects and probability-adjusted future organic opportunities, which are expected to drive future growth.

Outlook and Guidance

DT Midstream provided guidance for 2026, with an adjusted EBITDA range of $1.155 billion to $1.225 billion, representing 6% growth over the 2025 guidance midpoint. The company's 2027 early outlook range for adjusted EBITDA is $1.225 billion to $1.295 billion, with the midpoint representing a 6% increase over the 2026 guidance midpoint. The company's strong project backlog and healthy balance sheet position it for continued growth.

Valuation

DT Midstream's current valuation metrics indicate a P/E Ratio of 31.8, EV/EBITDA of 17.53, and a Dividend Yield of 2.38%. These metrics suggest that the company's stock price may be reflecting its growth prospects, but the dividend yield provides a relatively stable return. As David Slater mentioned, "the fundamentals supporting our business are exceptionally strong, and our integrated footprint sits in the most advantaged corridors to benefit from this generational investment opportunity." The company's commitment to prudent capital allocation and growing the dividend in line with EBITDA growth is expected to drive long-term value creation.

3. NewsRoom

DT Midstream, Inc. $DTM Shares Sold by AXQ Capital LP

Feb -27

Source: defenseworld.net

Is the Options Market Predicting a Spike in DT Midstream Stock?

Feb -25

Source: zacks.com

DT Midstream, Inc. (DTM) Q4 2025 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

DT Midstream Reports Record 2025 Results; Raises Dividend and Increases Project Backlog by 50%

Feb -19

Source: globenewswire.com

DT Midstream, Inc. (NYSE:DTM) Given Consensus Rating of “Moderate Buy” by Analysts

Feb -14

Source: defenseworld.net

DT Midstream Sets 2026 Annual Meeting Date

Feb -12

Source: globenewswire.com

DT Midstream (DTM) Expected to Announce Earnings on Thursday

Feb -12

Source: defenseworld.net

Thrivent Financial for Lutherans Sells 15,192 Shares of DT Midstream, Inc. $DTM

Feb -08

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.62%)

6. Segments

Gathering

Expected Growth: 5.5%

DT Midstream's 5.5% growth is driven by increasing natural gas demand, expansion into new markets, and strategic acquisitions. Additionally, investments in infrastructure and technology enhancements have improved operational efficiency, leading to higher volumes and revenue growth.

Pipeline

Expected Growth: 5.8%

DT Midstream's 5.8% pipeline growth is driven by increasing natural gas production in the Haynesville and Permian basins, coupled with rising LNG exports. Additionally, the company's strategic partnerships and investments in infrastructure expansion, such as the Gulf Coast Express pipeline, have enhanced its capacity to meet growing demand.

7. Detailed Products

Gathering and Processing

DT Midstream, Inc. provides gathering and processing services for natural gas and natural gas liquids (NGLs) through its extensive network of pipelines and processing facilities.

Transmission and Storage

The company offers transmission and storage services for natural gas, providing a reliable and efficient way to transport and store natural gas.

Fractionation and Marketing

DT Midstream, Inc. provides fractionation services to separate NGLs into their component parts, and markets these products to various customers.

Supply and Logistics

The company provides supply and logistics services, including transportation and storage of NGLs and other energy products.

8. DT Midstream, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for DT Midstream, Inc. is medium due to the availability of alternative energy sources and the increasing adoption of renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for DT Midstream, Inc. is low due to the company's strong market position and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for DT Midstream, Inc. is medium due to the company's dependence on a few key suppliers and the potential for supply chain disruptions.

Threat Of New Entrants

The threat of new entrants for DT Midstream, Inc. is low due to the high barriers to entry in the energy industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for DT Midstream, Inc. is high due to the competitive nature of the energy industry and the presence of several established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	43.93%
Debt Cost	5.79%
Equity Weight	56.07%
Equity Cost	7.67%
WACC	6.85%
Leverage	78.35%

11. Quality Control: DT Midstream, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Western Midstream Partners

A-Score: 7.8/10

Value: 5.9

Growth: 6.6

Quality: 9.0

Yield: 10.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

Plains All American Pipeline

A-Score: 7.1/10

Value: 9.0

Growth: 3.6

Quality: 5.5

Yield: 10.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

International Seaways

A-Score: 7.0/10

Value: 6.3

Growth: 8.2

Quality: 6.9

Yield: 10.0

Momentum: 4.5

Volatility: 6.0

1-Year Total Return ->

Plains GP Holdings

A-Score: 6.7/10

Value: 7.6

Growth: 3.6

Quality: 5.1

Yield: 10.0

Momentum: 4.5

Volatility: 9.3

1-Year Total Return ->

DT Midstream

A-Score: 6.5/10

Value: 3.3

Growth: 5.8

Quality: 6.4

Yield: 7.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

EnLink Midstream

A-Score: 4.5/10

Value: 2.5

Growth: 5.4

Quality: 2.7

Yield: 4.0

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

6.05%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.85%

DT Midstream, Inc. - US23345M1071

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DTM

1.c. Company Highlights

Less Volatile

Expensive

Stable Momentum

Earnings Beats

Revenues Beats

Strong Momentum

Earnings Miss

Revenues Miss

Medium Volatility

2. DT Midstream's Strong 2025 Performance and Promising Outlook

Segment Performance

Outlook and Guidance

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.62%)

6. Segments

Gathering

Expected Growth: 5.5%

Pipeline

Expected Growth: 5.8%

7. Detailed Products

Gathering and Processing

Transmission and Storage

Fractionation and Marketing

Supply and Logistics

8. DT Midstream, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: DT Midstream, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

142.41$

Current Price

142.41$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA