stockrowWhat it does
DT Midstream owns, operates and develops natural gas infrastructure. It helps move gas from production areas to customers and markets, and stores gas for later use. Its customers include natural gas producers, local distribution companies, power generators, industrial businesses and gas marketers. The company was incorporated in 2021, is headquartered in Detroit, Michigan, and is led by Chairman and Chief Executive Officer David Slater.
The business has two segments. Pipeline includes interstate and intrastate pipelines, storage facilities and gathering lateral pipelines, which connect gas collection points to larger pipelines and export terminals. DT Midstream also owns interests in joint ventures whose interstate pipelines connect to its wholly owned assets.
Gathering collects natural gas at or near producers’ wells and moves it toward treatment plants or pipelines. That segment also provides services such as compression, dehydration and gas treatment, as well as water handling and sand mining.
The company’s infrastructure connects production in the Appalachian Basin with markets in the Midwest, Northeast and Eastern Canada. It also connects Haynesville production to Gulf Coast markets and liquefied natural gas, or LNG, export terminals. DT Midstream employed 588 people in FY2025.
How it makes money
DT Midstream earns fees for transporting, storing and gathering natural gas and providing related services. In FY2025, Pipeline revenue was $687.0 million and Gathering revenue was $556.0 million. Pipeline also includes interests in joint ventures; the earnings of those unconsolidated ventures are recorded separately from operating revenue.
Pipeline offers firm and interruptible services. Firm contracts are typically long-term agreements with fixed charges for reserved capacity or minimum volume commitments. Under a minimum volume commitment, a customer can owe a deficiency fee if it does not use the agreed volume. These arrangements provide fixed revenue commitments regardless of the gas actually flowing. In the year ended December 31, 2025, approximately 92% of Pipeline revenue came from firm service contracts. Interruptible contracts generally use fixed rates, but the amount paid depends on the volume transported.
Gathering contracts are also typically long-term firm agreements with fixed demand charges or minimum volume commitments. The segment earns additional revenue from gas flowing from producing reserves connected to its systems. In the year ended December 31, 2025, approximately 57% of Gathering revenue came from firm contracts and 36% from flowing gas.
These contract structures limit direct exposure to natural gas price fluctuations, although volumes, weather and customers’ financial condition can affect cash flows. Interstate pipeline and storage services are subject to federal regulation, while gathering systems provide a gathering function that is not subject to Federal Energy Regulatory Commission jurisdiction.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Pipeline | $687.0 million | 55.3% | 55.1% |
| Gathering | $556.0 million | 44.7% | 3.35% |
Customers and how it sells
DT Midstream serves producers that need gas gathered and moved out of production areas, as well as utilities, power generators, industrial customers and national marketers that use transportation or storage services. Its pipelines deliver gas to end users, other interconnected pipelines and LNG export terminals. Gathering systems collect gas near customers’ wells and deliver it to treatment facilities or onward pipelines.
Expand Energy accounted for 45.0% of operating revenue in FY2025. Operating revenue excludes revenue of unconsolidated joint ventures accounted for as equity method investments. The company identifies Expand Energy as a key customer and says a loss of or reduction in its volumes could reduce demand for its services.
The Appalachian assets connect Marcellus and Utica production with the Midwestern and Northeastern United States and Eastern Canada. Haynesville assets connect production with Gulf Coast demand centers and LNG export terminals. DT Midstream also has joint venture interests in pipelines serving markets that include Ohio, Michigan and Ontario.
Its gathering business has infrastructure within customers’ production acreage that is contractually dedicated to DT Midstream for gathering services. The company competes for customers partly on whether its systems connect producers to their desired downstream options.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Pipeline | $687.0 million | 55.3% | 55.1% |
| Gathering | $556.0 million | 44.7% | 3.35% |
Suppliers and costs
DT Midstream depends on third-party pipelines and facilities to provide receipt and delivery options for its network. Those assets are not under its control, and their availability and the rates they charge can affect the use and value of DT Midstream’s services. The company also relies on contractors and the availability of skilled labor, equipment and materials when constructing infrastructure.
Its costs include operating and maintaining pipelines and facilities, corporate overhead, depreciation, property taxes and interest. Pipeline operation and maintenance expense increased $66 million for the year ended December 31, 2025, primarily because of the Midwest Pipeline Acquisition and production-related expenses from the LEAP expansion. Gathering operation and maintenance expense increased $19 million for the same year, primarily reflecting new assets and higher production-related expenses at Blue Union Gathering, as well as a prior-year environmental liability reduction.
Capital spending funds maintenance and expansion of existing assets. DT Midstream also incurs costs to comply with pipeline safety and environmental requirements, including inspection, maintenance and pollution-control obligations. It typically obtains rights to construct and operate pipelines on other people’s land under perpetual agreements or agreements with renewal rights.
- Revenue$1.2B
- Selling, general and administrative−$371.0M
- Other operating costs−$258.0M
- Operating income$614.0M
Competitive position
Pipeline operations compete for customers on location and connections to supply and end users, as well as price, reliability, flexibility, capacity and services. Competitors include major interstate pipelines and other midstream companies able to transport or gather gas between systems and delivery points. No competing companies are named in the available evidence.
Gathering operations compete with independent midstream companies and producer-owned systems. Location, reputation, reliability, price and connections to the processing facilities and pipelines producers want to use matter in that market. Competition is also affected by drilling activity in each area.
DT Midstream uses acreage dedications and firm contracts, expands treating capacity and builds out systems in production basins to address gathering competition. Its network includes connections between producing regions, customer markets and LNG terminals. Firm contracts are typically long-term, but they must eventually be renewed or replaced.
Our reading: The location and connectivity of existing infrastructure provide a meaningful competitive position because customers need routes between particular supply sources and destinations, though other pipelines can compete for those volumes. Our reading: Acreage dedications and long-term contracts support customer relationships, but their protection is not permanent because contracts expire and drilling activity affects competition.
Growth opportunities
DT Midstream pursues expansions of existing pipelines, gathering systems and storage facilities, as well as acquisitions. The company seeks projects supported by long-term customer commitments, including fixed demand charges, minimum volume commitments and acreage dedications.
A full year of operations from the acquired Midwest pipelines contributed to Pipeline segment growth in 2025. The company also placed the LEAP phase 4 expansion into service in 2025, increasing capacity to approximately 2.1 Bcf/d. It reached a final investment decision on Guardian G3, which it expects to increase Guardian capacity by approximately 40% and be fully placed into service in the fourth quarter of 2028. The project is anchored by 20-year negotiated-rate agreements with investment-grade utility customers.
In the third quarter of 2026, the company reached final investment decisions on 3 new Pipeline projects, bringing committed capital to approximately $2.4 billion. Its MIST Southbound Phase 1 expansion is supported by investment-grade utilities under 20-year negotiated-rate contracts. DT Midstream also reached a final investment decision on a lateral serving a power plant under development; the lateral has a 20-year demand-based contract and is expected to enter service in the first half of 2028.
The company sees further opportunities in its network, including storage, Gulf Coast infrastructure and a longer-term Viking expansion. It continues to develop its Louisiana carbon capture project, whose permit application advanced to technical review.
- $840.0MFY2021
- $920.0MFY2022
- $922.0MFY2023
- $981.0MFY2024
- $1.2BFY2025
Structural risks
- Customer concentration and contracts: Expand Energy represented 45.0% of FY2025 operating revenue. Losing volumes from that customer, or failing to renew or replace contracts on favorable terms, could reduce demand or affect cash flows.
- Gas supply and demand: Customers must obtain new supplies to replace declining production. Reduced drilling, diverted supplies or lower demand in the markets served could reduce throughput and service revenue. DT Midstream reported near-term producer curtailments, particularly in the Northeast, because of weak short-term gas prices.
- Operational and interconnected facilities: Leaks, ruptures, fires, severe weather and other hazards can interrupt operations and cause injury, environmental damage or financial losses. Disruptions on third-party pipelines can also restrict deliveries to end markets.
- Expansion and regulation: Projects can face delays, cost overruns, insufficient customer commitments or difficulty obtaining approvals. Safety and environmental rules can require additional spending, and challenges to regulated rates can affect results.
- Debt and financing: As of December 31, 2025, the company had approximately $3.35 billion of senior notes outstanding. Debt service reduces funds available for operations and dividends, and financing may not be available on favorable terms.
Bottom line
Our reading
Our reading: DT Midstream is a natural gas infrastructure business whose long-term fee contracts and connected assets support recurring revenue, while gathering volumes and contract renewals keep it exposed to conditions in its producing regions. Its expansion program adds contracted projects, but customer concentration, construction and regulatory risks, and the need to finance capital spending remain important to the business.