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.

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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	121.9
Change Percentage	0.30%
Open	121.77
Previous Close	121.53
Market Cap ( Millions)	12392
Volume	287676
Year High	122.7
Year Low	83.3
M A 50	112.98
M A 200	104.19

FCF Yield	5.17%
Dividend Yield	2.62%
ROE	8.65%
Debt / Equity	71.78%
Net Debt / EBIDTA	335.41%
Price To Book	2.63
Price Earnings Ratio	30.7
Price To FCF	19.34
Price To sales	10.54
EV / EBITDA	16.03

2. DT Midstream's Strong Q3 2025 Earnings: A Closer Look

DT Midstream reported a robust financial performance in Q3 2025, with adjusted EBITDA reaching $288 million, representing an $11 million increase from the prior quarter. The company's EPS came in at $1.13, beating analyst estimates of $1.03. Revenue growth was driven by higher volumes on the Haynesville system, resulting in a $10 million increase in Gathering segment results. The company's financial performance was also supported by the successful execution of its growth initiatives, including the LEAP Phase 4 expansion facilities, which were placed into service early and on budget.

Publication Date: Nov -15

                                    📋 Highlights
                                    EBITDA Guidance Raised:
                                                2025 adjusted EBITDA midpoint increased to $1.13 billion, up 18% YoY, with narrowed range of $1.115B–$1.145B.
Guardian Pipeline Expansion:
                                                40% capacity boost anchored by five investment-grade utilities under 20-year negotiated rate contracts.
LEAP Phase 4 Operational:
                                                Capacity expanded to 2.1 Bcf/day from 1.9 Bcf/day, completed early and on budget.
2025 Growth Capital Reduced:
                                                Guidance cut to $385M–$415M (-$30M midpoint), aiming for ~3.1x leverage (on balance sheet) by year-end.
Haynesville Volumes Surge:
                                                Record throughput driven by Western Haynesville growth, with LEAP positioned for further expansion to meet LNG and industrial demand.

                                

Segment Performance

The Pipeline segment results were in line with the second quarter, while the Gathering segment results were $10 million higher due to higher volumes on the Haynesville system. The company's Haynesville system recorded record high throughput during the quarter, driven by a positive shift in the Haynesville basin. The strong performance of the Gathering segment was a key contributor to the company's overall financial results.

Growth Initiatives

DT Midstream continued to advance its growth initiatives during the quarter, including the FID on a larger G3+ expansion on Guardian Pipeline, which increased the total capacity by 40% and is anchored by 5 investment-grade utilities under 20-year negotiated rate contracts. The company's Louisiana CCS project remains pre-FID, but is progressing through the review process. The company's growth initiatives are expected to drive future revenue growth, with analysts estimating revenue growth of 7.6% next year.

Valuation and Outlook

DT Midstream's current valuation metrics indicate a P/E Ratio of 29.23, EV/EBITDA of 15.42, and a Dividend Yield of 2.76%. The company's strong financial performance and growth initiatives are expected to drive future returns, with a ROIC of 4.26% and ROE of 8.65%. The company's leverage ratio is expected to decline to approximately 3.1x for on-balance-sheet debt and 3.8x for proportionally consolidated debt by year-end. With a strong balance sheet and a focus on execution, DT Midstream is well-positioned to fund incremental investments in the favorable market environment.

3. NewsRoom

DT Midstream, Inc. $DTM Shares Sold by Edgestream Partners L.P.

Dec -03

Source: defenseworld.net

DT Midstream, Inc. (NYSE:DTM) Given Consensus Recommendation of “Hold” by Brokerages

Dec -01

Source: defenseworld.net

Bahl & Gaynor Inc. Has $60.93 Million Stock Position in DT Midstream, Inc. $DTM

Nov -22

Source: defenseworld.net

DT Midstream (NYSE:DTM) and Berry (NASDAQ:BRY) Critical Contrast

Nov -18

Source: defenseworld.net

My Most Contrarian Call Yet: Energy Is About To Rewrite Wall Street's Playbook

Nov -17

Source: seekingalpha.com

Asset Management One Co. Ltd. Sells 288 Shares of DT Midstream, Inc. $DTM

Oct -31

Source: defenseworld.net

DT Midstream, Inc. (DTM) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

DT Midstream Reports Strong Third Quarter 2025 Results; Raises Adjusted EBITDA Guidance

Oct -30

Source: globenewswire.com

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: 7.1/10

Value: 5.1

Growth: 6.6

Quality: 7.2

Yield: 10.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

International Seaways

A-Score: 6.7/10

Value: 7.2

Growth: 8.2

Quality: 7.4

Yield: 10.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

DT Midstream

A-Score: 6.6/10

Value: 3.2

Growth: 6.0

Quality: 6.5

Yield: 7.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

Plains GP Holdings

A-Score: 6.6/10

Value: 8.1

Growth: 3.6

Quality: 3.9

Yield: 10.0

Momentum: 4.5

Volatility: 9.3

1-Year Total Return ->

Plains All American Pipeline

A-Score: 6.5/10

Value: 7.8

Growth: 3.6

Quality: 4.5

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

EnLink Midstream

A-Score: 4.6/10

Value: 3.5

Growth: 5.4

Quality: 2.8

Yield: 5.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.99%

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 Q3 2025 Earnings: A Closer Look

Segment Performance

Growth Initiatives

Valuation and Outlook

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

121.9$

Current Price

121.9$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA