DT Midstream (DTM) AI Stock Analysis

• Market Cap: $10.58B
• Dividend Yield: 2.99%
• Average Volume (3M): 738.00K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.63
• Revenue Growth: 15.28%
• EPS Growth: -9.99%
• Country: US
• Employees: 556
• Sector: Energy
• Sector Strength: 69
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.04
• Shares Outstanding: 101,592,510
• 10 Day Avg. Volume: 714,166
• 30 Day Avg. Volume: 737,999
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 13.28
• Enterprise Value/Gross Profit: 25.36
• Enterprise Value/Ebitda: 15.76
• 1Y Price Target: $112.89
• Price Target Upside: 8.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: $112.00 ▲(7.51% Upside)

DT Midstream's overall stock score reflects its strong financial performance and positive earnings call sentiment, which are slightly offset by mixed technical indicators and a relatively high valuation. The company's strategic investments and financial health position it well for future growth, but current market conditions and valuation metrics suggest caution.

Positive Factors

Earnings

DTM reported 2Q earnings with EBITDA in line with estimates and reaffirmed ’25 and ’26 EBITDA guidance range.

Financial Strategy

DTM's fee-based, contracted cash flows should act defensive in an uncertain environment.

Growth Potential

DTM added $600mm of FID capex, driven by Guardian pipeline, adding to the growth potential.

Negative Factors

Free Cash Flow

Lowering FCF per share estimates primarily to reflect lower contributions from joint ventures and a higher share count as buybacks were removed from the model.

Project Challenges

Building the new Millennium project extension in New York State could present challenges.

Valuation Concerns

Despite DTM's improved fundamental outlook, shares are considered fairly valued after strong year-over-year performance.

DT Midstream Business Overview & Revenue Model

Company Description

DT Midstream (DTM) is a leading energy infrastructure company that specializes in owning, operating, and developing natural gas pipelines and storage systems across the United States. The company focuses on the transportation and storage of natural gas, providing essential services to utilities, power plants, marketers, large industrial customers, and other energy companies. With a strong commitment to safety, reliability, and sustainability, DT Midstream plays a critical role in the energy supply chain by ensuring the efficient and secure delivery of natural gas.

How the Company Makes Money

DT Midstream generates revenue primarily through the transportation and storage of natural gas. The company's revenue model is based on long-term, fee-based contracts with customers who require reliable access to natural gas infrastructure. These contracts often include fixed reservation fees that are paid regardless of volume transported, ensuring a stable revenue stream. Additionally, the company may earn variable fees based on the actual volume of gas transported through its pipeline systems. Key revenue streams include fees from natural gas transportation services, storage services, and related ancillary services. DT Midstream's strategic partnerships with major energy producers and consumers, along with its expansive network of pipelines and storage facilities, contribute significantly to its earnings by enhancing its ability to meet the diverse needs of its customers while optimizing operational efficiency.

DT Midstream Financial Statement Overview

Summary

DT Midstream exhibits strong financial health with solid profitability, efficient operations, and robust cash flow generation. The company maintains a balanced capital structure with moderate leverage, supporting its growth trajectory. While revenue growth has slightly decelerated, the company's profitability and cash flow metrics remain strong, positioning it well within the Oil & Gas Midstream industry.

Income Statement

DT Midstream demonstrates strong profitability with a high gross profit margin of 71.87% and a solid net profit margin of 33.90% in TTM (Trailing-Twelve-Months). The revenue growth rate of 6.23% indicates a positive trend, although slightly lower than previous years. The EBIT and EBITDA margins are robust at 61.77% and 83.95%, respectively, showcasing efficient operations.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.73, indicating moderate leverage. Return on equity stands at 8.28%, reflecting decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

DT Midstream's cash flow is strong, with a significant free cash flow growth rate of 35.82% in TTM. The operating cash flow to net income ratio of 2.38 indicates robust cash generation relative to earnings. The free cash flow to net income ratio of 0.78 further underscores efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	981.00M	922.00M	920.00M	840.00M	754.00M
Gross Profit	581.00M	528.00M	495.00M	483.00M	443.00M	427.00M
EBITDA	935.00M	884.00M	850.00M	808.00M	718.00M	722.00M
Net Income	376.00M	354.00M	384.00M	370.00M	307.00M	312.00M
Balance Sheet
Total Assets	9.96B	9.94B	8.98B	8.83B	8.17B	8.34B
Cash, Cash Equivalents and Short-Term Investments	74.00M	68.00M	56.00M	61.00M	132.00M	42.00M
Total Debt	3.40B	3.52B	3.27B	3.42B	3.08B	3.22B
Total Liabilities	5.14B	5.17B	4.70B	4.68B	4.14B	4.11B
Stockholders Equity	4.67B	4.63B	4.14B	4.01B	3.87B	4.07B
Cash Flow
Free Cash Flow	618.00M	413.00M	26.00M	387.00M	432.00M	79.00M
Operating Cash Flow	789.00M	763.00M	798.00M	725.00M	572.00M	597.00M
Investing Cash Flow	-1.06B	-1.08B	-351.00M	-854.00M	123.00M	-714.00M
Financing Cash Flow	274.00M	330.00M	-452.00M	58.00M	-605.00M	113.00M

DT Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTM, the sentiment is Positive. The current price of 104.18 is above the 20-day moving average (MA) of 103.27, above the 50-day MA of 103.61, and above the 200-day MA of 100.31, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 72.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTM.

DT Midstream Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HESM	80 Outperform	$8.65B	15.29	52.91%	6.88%	9.02%	17.28%
AM	78 Outperform	$8.51B	18.92	21.65%	5.06%	7.09%	17.53%
WES	77 Outperform	$14.95B	12.07	38.42%	9.10%	7.11%	-16.14%
DTM	69 Neutral	$10.58B	28.01	8.48%	2.99%	15.28%	-9.99%
PAA	68 Neutral	$12.66B	19.90	8.34%	8.10%	-4.31%	-17.80%
Sector *	66 Neutral	$15.46B	7.35	3.20%	5.25%	4.31%	-62.31%
KNTK	58 Neutral	$6.77B	57.82	-8.21%	7.46%	16.09%	-71.69%

DT Midstream Corporate Events

DT Midstream Reports Strong Q2 2025 Financial Results

On July 31, 2025, DT Midstream reported strong financial results for the second quarter of 2025, with a net income of $107 million and an adjusted EBITDA of $277 million. The company declared a quarterly cash dividend of $0.82 per share, payable on October 15, 2025. Significant business achievements included reaching a final investment decision on the Guardian Pipeline ‘G3’ expansion, finalizing an investment plan for pipeline modernization, achieving an investment-grade credit rating, and setting a record high quarterly gathering volume for the Haynesville system. These developments position DT Midstream well to meet its financial goals for 2025 and reaffirm its adjusted EBITDA guidance for 2025 and 2026.