DT Midstream (DTM) AI Stock Analysis

• Market Cap: $13.57B
• Dividend Yield: 2.7%
• Average Volume (3M): 727.02K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.61
• Revenue Growth: 20.39%
• EPS Growth: -3.85%
• Country: US
• Employees: 556
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.08
• Shares Outstanding: 101,673,930
• 10 Day Avg. Volume: 778,019
• 30 Day Avg. Volume: 727,019
• PEG Ratio: 1.19
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 9.78
• P/FCF Ratio: 24.82
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 13.82
• Enterprise Value/Gross Profit: 23.83
• Enterprise Value/Ebitda: 17.34
• 1Y Price Target: $134.75
• Price Target Upside: -0.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $149.00 ▲(9.51% Upside)

The score is driven primarily by strong financial performance (high margins, rising revenue/net income, and strong 2025 cash flow) and a constructive earnings outlook (growing backlog and EBITDA guidance with dividend growth). These positives are tempered by an overextended technical setup (high RSI/Stoch) and a relatively expensive valuation (P/E ~33.8) despite a moderate yield.

Positive Factors

Contracted Fee-Based Model

DTM's business is largely fee-based across gathering, processing, pipeline transportation and storage with fixed fees, throughput charges and minimum volume commitments. That contract orientation cushions revenue and cash flow from commodity swings and supports multi-year predictability for funding projects and dividends.

Strong Cash Generation & Margins

Material improvement in operating cash flow and FCF in 2025, alongside expanded gross margins and rising revenue, implies robust internal funding capacity. Sustained cash generation supports growth capex, backlog funding, dividend coverage and preservation of investment‑grade credit over the medium term.

Expanded Backlog & Execution Track Record

A materially larger, pipeline‑weighted backlog with a significant committed portion provides a durable multi‑year revenue runway. Combined with repeated on‑time, on‑budget project delivery, this raises odds of backlog conversion to cash flows and supports medium‑term EBITDA and dividend growth targets.

Negative Factors

Project Approval & Timing Risk

Many growth projects still require regulatory approvals, owner consents and final FIDs; delays or denials can push revenues and cash flows later, raise costs, and compress returns. Such timing uncertainty can materially affect multi‑year EBITDA delivery and the cadence of capital deployment.

Balance Sheet Comparability Concerns

An unusually large year‑over‑year debt reduction and missing 2025 asset disclosure impair visibility into the capital structure's durability. Without clarity on drivers (asset sales, reclassifications, or accounting items), it's harder to judge sustainable leverage, asset backing, and the recurrence of improved metrics.

Free Cash Flow Volatility & Weather Sensitivity

Historical swings in free cash flow and documented weather/upstream curtailments show sensitivity to production variability and seasonal extremes. Such volatility can stress capital allocation, dividend pacing and leverage targets when adverse conditions coincide with elevated growth capex needs.

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

Strong profitability and improving scale (2025 revenue $1.24B; net income $454M) with robust cash generation (2025 operating cash flow $867M; free cash flow $867M). Offsets include free-cash-flow volatility historically and comparability questions (missing 2025 total assets; unusually reported 2025 operating profitability metric), plus the unusually large reported debt drop versus 2024.

Income Statement

Annual results show solid top-line momentum, with revenue rising to $1.24B in 2025 (up from $0.98B in 2024) and a strong step-up versus 2022–2024 levels. Profitability is a clear strength: gross margin expanded meaningfully in 2025 (~73.5% vs ~53.8% in 2024) and net margin stayed very strong and stable (~36–42% across 2020–2025), supporting net income growth to $454M in 2025 (from $354M in 2024). A weakness is some inconsistency in reported operating profitability metrics (e.g., an unusual 0.0 EBIT margin in 2025 despite positive EBIT), which adds noise to year-to-year comparability.

Balance Sheet

Leverage improved materially: total debt fell sharply to $48M in 2025 from ~$3.5B in 2024, driving debt-to-equity down to ~0.01 (from ~0.76 in 2024). Equity is sizable (~$4.74B in 2025), and returns on equity are steady in the high-single to ~10% range (2025 ~9.6%). The main drawback is limited visibility into asset backing in 2025 (total assets not provided for 2025), and the debt reduction is so large versus prior years that it warrants investor caution around comparability and what drove the change.

Cash Flow

Cash generation is strong and improving: operating cash flow increased to $867M in 2025 from $763M in 2024, while free cash flow jumped to $867M (vs $413M in 2024), implying a sharp improvement in cash conversion and/or lower capital spending in 2025. Cash coverage of earnings is robust in 2025 (operating cash flow is ~1.9x net income; free cash flow is ~1.0x net income). The key weakness is historical volatility in free cash flow (notably very low free cash flow in 2023 at $26M), suggesting cash generation can swing meaningfully year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.24B	981.00M	922.00M	920.00M	840.00M
Gross Profit	914.00M	528.00M	495.00M	483.00M	443.00M
EBITDA	889.00M	884.00M	850.00M	808.00M	718.00M
Net Income	441.00M	354.00M	384.00M	370.00M	307.00M
Balance Sheet
Total Assets	10.35B	9.94B	8.98B	8.83B	8.17B
Cash, Cash Equivalents and Short-Term Investments	54.00M	68.00M	56.00M	61.00M	132.00M
Total Debt	3.40B	3.52B	3.27B	3.42B	3.08B
Total Liabilities	5.47B	5.17B	4.70B	4.68B	4.14B
Stockholders Equity	4.74B	4.63B	4.14B	4.01B	3.87B
Cash Flow
Free Cash Flow	490.00M	413.00M	26.00M	387.00M	432.00M
Operating Cash Flow	916.00M	763.00M	798.00M	725.00M	572.00M
Investing Cash Flow	-414.00M	-1.08B	-351.00M	-854.00M	123.00M
Financing Cash Flow	-516.00M	330.00M	-452.00M	58.00M	-605.00M

DT Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 136.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 136.06 is above the 20-day moving average (MA) of 128.45, above the 50-day MA of 122.95, and above the 200-day MA of 110.30, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 75.81 is Negative, neither overbought nor oversold. The STOCH value of 80.57 is Negative, 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	79 Outperform	$7.76B	13.07	―	8.45%	10.78%	19.10%
PAA	78 Outperform	$14.51B	12.39	12.03%	8.54%	-7.53%	9.74%
DTM	75 Outperform	$13.57B	33.84	9.42%	2.70%	20.39%	-3.85%
WES	74 Outperform	$17.91B	14.75	31.82%	9.13%	5.81%	-13.58%
AM	74 Outperform	$9.92B	24.51	20.22%	4.98%	8.70%	21.42%
PAGP	66 Neutral	$16.72B	19.67	8.61%	8.03%	-7.53%	11.27%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

DT Midstream Corporate Events

DT Midstream Posts Record 2025 Results, Hikes Dividend

DT Midstream on Feb. 19, 2026 reported record 2025 results, with full-year net income of $441 million, or $4.30 per diluted share, and Adjusted EBITDA of $1.138 billion, up 17% from 2024. Fourth-quarter 2025 net income and Operating Earnings were $111 million, or $1.08 per diluted share, with quarterly Adjusted EBITDA of $293 million, reflecting strong operational execution.

The company’s board declared a 7% dividend increase from the fourth quarter of 2025, setting a quarterly payout of $0.88 per share for shareholders of record on March 16, 2026, payable April 15, 2026. Management also boosted its organic project backlog by about 50% to $3.4 billion over the next five years, reached final investment decisions on an expansion of Viking Gas Transmission and the next phase of its interstate pipeline modernization program, and issued 2026–2027 Adjusted EBITDA growth guidance, underscoring confidence in continued natural gas infrastructure expansion.

The most recent analyst rating on (DTM) stock is a Hold with a $129.00 price target. To see the full list of analyst forecasts on DT Midstream stock, see the DTM Stock Forecast page.

DT Midstream realigns leadership, appoints new president, chairman

On January 27, 2026, DT Midstream announced a leadership realignment in which long-time Chairman Robert Skaggs Jr. resigned as Chairman of the Board but remained a director, and Chief Executive Officer David Slater was elevated to Executive Chairman effective January 28, 2026, while relinquishing the President title. At the same time, Executive Vice President and Chief Operating Officer Christopher Zona was appointed President, effective January 28, 2026, and will retain his COO role, consolidating operational leadership under an executive with more than three decades of energy industry experience; the moves keep the seasoned management team in place and signal continuity in strategy and governance for the midstream operator following its spin-off from DTE Energy.

The most recent analyst rating on (DTM) stock is a Buy with a $131.00 price target. To see the full list of analyst forecasts on DT Midstream stock, see the DTM Stock Forecast page.