DT Midstream, Inc. (DTM) Earnings & Analysis

Latest quarter

DT Midstream reported third-quarter revenue of $336.0 million, above the consensus estimate of $333.9 million. Adjusted earnings per share were $1.16, compared with the consensus estimate of $1.08.

The company reported revenue up from $314.0 million a year earlier, while diluted earnings per share rose to $1.19 from $1.13. Operating margin declined to 48.5% from 49.4%, and free cash flow increased to $184.0 million from $131.0 million.

For the nine months through September, the 10-Q attributed higher revenue in part to new LEAP customer and firm-service contracts, as well as higher gathering volumes at Blue Union and Appalachia. Comparing the third quarter with the preceding quarter, the filing attributed a revenue decrease in part to lower Appalachia Gathering volumes. Executive Christopher Zona said third-quarter gathering volumes averaged 2.17 Bcf per day in the Haynesville and 1.25 Bcf per day in the Northeast.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO David Slater said third-party forecasts projected U.S. natural gas demand to grow by more than 25 Bcf per day through 2030, driven by LNG exports and power demand. He said new generation would be needed to replace retiring coal capacity and serve data center load.

Slater said DT Midstream reached final investment decisions on three pipeline projects during the quarter, bringing committed capital to approximately $2.4 billion, or 70% of its five-year organic project backlog. Executive Christopher Zona said the MIST Southbound Phase 1 expansion would add approximately 300 MMcf per day of capacity and was supported by investment-grade utilities under 20-year negotiated-rate contracts.

Asked about Midwestern’s next steps, Slater said the first phase addressed demand appearing in 2029. Zona said the company was also engaging with shippers needing service in the 2030, ’31 time frame. Slater said the network could take supply from several pipelines, but declined to discuss the details of network solutions for competitive reasons.

On storage, Zona said customers were seeking additional capacity and high-deliverability service as power generation adds volatility. He said DT Midstream saw opportunities to enhance deliverability at its Washington Penn asset. Zona also said discussions about the Vector 2030 expansion included upstream capacity on NEXUS, where roughly 300 million a day of short-term capacity could be tied to longer-term commitments.

For the near term, Slater said the company was “seeing some curtailments, particularly in the Northeast, just due to the weak short-term price.” Zona said he expected fourth-quarter Haynesville volumes to be in line with the third quarter, while Northeast volumes would be lower because of producer curtailments and downstream outages.

Guidance

DT Midstream raised its 2026 adjusted EBITDA guidance to $1,185-$1,225 million. The company also raised its distributable cash flow guidance to $860.0 million to $890.0 million.

On the call, Jeffrey Jewell said DT Midstream reduced its 2026 growth capital range to $375.0 million to $425.0 million because of capital efficiency.