DT Midstream (DTM) AI Stock Analysis

• Market Cap: $12.30B
• Dividend Yield: 2.71%
• Average Volume (3M): 760.23K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.57
• Revenue Growth: 20.39%
• EPS Growth: -3.85%
• Country: US
• Employees: 556
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.13
• Shares Outstanding: 101,673,930
• 10 Day Avg. Volume: 778,033
• 30 Day Avg. Volume: 760,231
• PEG Ratio: -3.29
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 9.89
• P/FCF Ratio: 23.50
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 12.77
• Enterprise Value/Gross Profit: 22.10
• Enterprise Value/Ebitda: 15.36
• 1Y Price Target: $126.00
• Price Target Upside: 4.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 4.39
• Revenue Forecast (FY): $1.25B

• Rating: 78 Outperform
• Price Target: $137.00 ▲(14.11% Upside)

DT Midstream's strong financial performance and optimistic earnings call guidance are the primary drivers of its overall score. The technical indicators support a bullish trend, although potential overvaluation and regulatory challenges pose risks. The company's strategic expansions and dividend growth commitment further bolster its market position.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding operations and market demand, supporting long-term financial stability and competitive positioning.

Pipeline Expansion

The expansion enhances infrastructure capabilities, securing long-term contracts and reinforcing market presence in the natural gas sector.

Cash Flow Management

Efficient cash flow management ensures liquidity and financial flexibility, enabling strategic investments and debt servicing.

Negative Factors

Regulatory Challenges

Regulatory hurdles can delay projects and increase costs, impacting growth and operational efficiency in key markets.

Debt Levels

While leverage is moderate, high debt levels could strain financial resources and limit strategic flexibility if not managed carefully.

Louisiana CCS Project Uncertainty

Project uncertainties can delay revenue generation and increase risk exposure, affecting long-term strategic goals and market confidence.

DT Midstream Business Overview & Revenue Model

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.

How the Company Makes Money

DT Midstream generates revenue primarily through fee-based contracts for its transportation and storage services. The company earns money by charging customers for the delivery of natural gas through its pipeline infrastructure and for the storage capacity it provides. Key revenue streams include long-term contracts with utility companies and industrial customers that ensure a steady income. Additionally, DTM may engage in short-term transactions when market conditions allow. Significant partnerships with producers and utilities enhance its earning potential, ensuring stable cash flow and risk mitigation in fluctuating market environments.

DT Midstream Financial Statement Overview

Summary

DT Midstream exhibits strong financial health with consistent revenue growth, robust profitability, and efficient cash flow management. The company's balance sheet is stable, though the leverage level warrants monitoring. Overall, DT Midstream is well-positioned in the Oil & Gas Midstream industry, but careful attention to debt levels and cash flow trends will be crucial for sustained performance.

Income Statement

DT Midstream has demonstrated strong revenue growth with a 5.95% increase in the TTM period. The company maintains healthy profitability with a gross profit margin of 57.79% and a net profit margin of 34.55%. The EBIT and EBITDA margins are robust at 44.77% and 83.15%, respectively, indicating efficient operations and cost management. However, the slight decline in net profit margin compared to the previous year suggests potential pressure on net earnings.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.76, indicating moderate leverage. The return on equity stands at 8.71%, showcasing effective utilization of shareholder funds. The equity ratio is strong, suggesting a stable financial structure. However, the relatively high total debt level could pose a risk if not managed carefully.

Cash Flow

DT Midstream's cash flow performance is commendable with a 3.56% growth in free cash flow. The operating cash flow to net income ratio of 4.79 indicates strong cash generation relative to net earnings. The free cash flow to net income ratio of 0.90 highlights efficient cash conversion. Despite these strengths, the growth rate of free cash flow has slowed compared to previous periods, which could be a concern if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.18B	981.00M	922.00M	920.00M	840.00M	754.00M
Gross Profit	679.00M	528.00M	495.00M	483.00M	443.00M	427.00M
EBITDA	977.00M	884.00M	850.00M	808.00M	718.00M	722.00M
Net Income	403.00M	354.00M	384.00M	370.00M	307.00M	312.00M
Balance Sheet
Total Assets	10.06B	9.94B	8.98B	8.83B	8.17B	8.34B
Cash, Cash Equivalents and Short-Term Investments	98.00M	68.00M	56.00M	61.00M	132.00M	42.00M
Total Debt	3.38B	3.52B	3.27B	3.42B	3.08B	3.22B
Total Liabilities	5.22B	5.17B	4.70B	4.68B	4.14B	4.11B
Stockholders Equity	4.70B	4.63B	4.14B	4.01B	3.87B	4.07B
Cash Flow
Free Cash Flow	640.00M	413.00M	26.00M	387.00M	432.00M	79.00M
Operating Cash Flow	873.00M	763.00M	798.00M	725.00M	572.00M	597.00M
Investing Cash Flow	-1.55B	-1.08B	-351.00M	-854.00M	123.00M	-714.00M
Financing Cash Flow	699.00M	330.00M	-452.00M	58.00M	-605.00M	113.00M

DT Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 120.06 is above the 20-day moving average (MA) of 118.08, above the 50-day MA of 113.27, and above the 200-day MA of 103.60, indicating a bullish trend. The MACD of 1.77 indicates Positive momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 45.61 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
WES	80 Outperform	$16.08B	11.66	40.29%	9.12%	5.81%	-13.58%
PAA	79 Outperform	$12.53B	14.40	9.78%	8.51%	-7.53%	9.74%
AM	78 Outperform	$8.56B	18.42	22.52%	5.00%	8.70%	21.42%
DTM	78 Outperform	$12.30B	30.68	9.04%	2.71%	20.39%	-3.85%
PAGP	72 Outperform	$14.35B	21.50	10.33%	7.98%	-7.53%	11.27%
HESM	72 Outperform	$7.23B	12.38	59.81%	8.37%	10.78%	19.10%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

DT Midstream Corporate Events

DT Midstream Reports Strong Q3 2025 Financial Results

On October 30, 2025, DT Midstream reported strong financial results for the third quarter of 2025, with a net income of $115 million and an adjusted EBITDA of $288 million. The company announced a quarterly cash dividend of $0.82 per share, payable on January 15, 2026. Significant business updates include a final investment decision on a 40% capacity expansion of the Guardian Pipeline and the early completion of the LEAP Phase 4 expansion project. The company also achieved record high quarterly gathering volume for its Haynesville system. As a result of its strong performance, DT Midstream increased its adjusted EBITDA guidance for 2025 to between $1,115 million and $1,145 million.

DT Midstream Appoints New Chief Accounting Officer

On September 17, 2025, DT Midstream, Inc. appointed Joseph P. Finland as the Chief Accounting Officer, while Jeffrey A. Jewell will continue as the Chief Financial Officer. Mr. Finland, who has been with the company since July 2021, has held roles in financial planning and accounting, and his appointment reflects a strategic move to strengthen the company’s financial leadership.