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DT Midstream (DTM)
NYSE:DTM
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DT Midstream
(NYSE:DTM)
78Outperform
Positive Factors
Growth Potential
The company has a backlog of $2.3 billion in potential capital projects, which should increase EBITDA to $1.5 billion by 2029, indicating strong future growth potential.
Market Position
DT Midstream's shares have increased significantly more than the AMZ Index, indicating strong performance.
Strategic Expansion
DTM announced two new data center projects, indicating expansion and future revenue opportunities.
Negative Factors
Dividend Concerns
The dividend increase was below forecast, with a Q4 dividend declared at $0.82 per share compared to an expected $0.87.
Financial Challenges
Q4 missed expectations with adjusted EBITDA of $235 million falling below the consensus of $248 million.
Valuation Concerns
Despite DTM's improved fundamental outlook, shares are considered fairly valued after strong year-over-year performance.
DT Midstream (DTM) vs. S&P 500 (SPY)
Market Cap
$9.87B
Dividend Yield3.07%
Average Volume (3M)1.23M
Price to Earnings (P/E)27.0
Beta (1Y)0.77
Revenue Growth6.40%
EPS Growth-8.42%
CountryUS
Employees556
SectorEnergy
Sector Strength53
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)3.60
Shares Outstanding101,590,680
10 Day Avg. Volume842,571
30 Day Avg. Volume1,232,145
Financial Highlights & Ratios
PEG Ratio1.56
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.38
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit18.47
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$103.56Price Target Upside6.54% Upside
Rating ConsensusHold
Number of Analyst Covering9
DT Midstream Business Overview & Revenue Model
Company DescriptionDT 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 MoneyDT Midstream generates revenue through a combination of fee-based and volume-based contracts for its natural gas transportation and storage services. The company owns and operates an extensive network of pipelines and storage facilities across key natural gas producing regions in the United States. Revenue primarily comes from long-term contracts with fixed fees, providing stable and predictable cash flows. Additionally, DT Midstream may engage in strategic partnerships and joint ventures to expand its infrastructure capabilities. The company also leverages its expertise to optimize the utilization of its assets, ensuring high reliability and efficiency in its operations, which further contributes to its earnings.
DT Midstream Financial Statement Overview
Summary
DT Midstream presents a strong financial profile with consistent revenue growth and profitability. Income statement shows robust profitability, balance sheet reflects moderate stability with manageable leverage, and cash flow indicates efficient cash generation. However, further reduction of leverage could enhance financial stability.Income Statement
DT Midstream demonstrates strong profitability with a consistent increase in gross and net profit margins over the years. The gross profit margin in the latest annual report is 75.13%, and the net profit margin is 37.39%. Revenue has grown steadily, with a 6.4% increase from the previous year, indicating solid top-line growth.85
Very Positive
Balance Sheet
The balance sheet shows a relatively stable position with a debt-to-equity ratio of 0.44, highlighting manageable leverage. However, the equity ratio stands at 52.67%, indicating moderate financial stability. Return on equity is at 7.93%, suggesting decent profitability for shareholders.70
Positive
Cash Flow
DT Midstream's cash flow is robust, with a significant increase in free cash flow, which grew by 2826.92% in the last year. The operating cash flow to net income ratio is healthy at 2.08, highlighting efficient cash generation relative to earnings. However, reliance on operating cash flow is crucial as the company had significant capital expenditures in prior years.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 981.00M | 922.00M | 920.00M | 840.00M | 754.00M | Gross Profit |
| 737.00M | 495.00M | 653.00M | 609.00M | 427.00M | EBIT |
| 489.00M | 467.00M | 478.00M | 551.00M | 414.00M | EBITDA |
| 866.00M | 850.00M | 808.00M | 718.00M | 722.00M | Net Income Common Stockholders |
| 354.00M | 384.00M | 370.00M | 307.00M | 312.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 68.00M | 56.00M | 61.00M | 132.00M | 42.00M | Total Assets |
| 9.94B | 8.98B | 8.83B | 8.17B | 8.34B | Total Debt |
| 202.00M | 3.27B | 3.42B | 3.08B | 3.22B | Net Debt |
| 202.00M | 3.21B | 3.36B | 2.95B | 3.18B | Total Liabilities |
| 5.17B | 4.70B | 4.68B | 4.14B | 4.11B | Stockholders Equity |
| 4.63B | 4.14B | 4.01B | 3.87B | 4.07B |
| Cash Flow | Free Cash Flow | |||
| 763.00M | 26.00M | 387.00M | 432.00M | 79.00M | Operating Cash Flow |
| 763.00M | 798.00M | 725.00M | 572.00M | 597.00M | Investing Cash Flow |
| -1.08B | -351.00M | -854.00M | 123.00M | -714.00M | Financing Cash Flow |
| 330.00M | -452.00M | 58.00M | -605.00M | 113.00M |
DT Midstream Technical Analysis
Positive
97.20
Price Trends
95.03
Positive
98.37
Negative
90.03
Positive
Market Momentum
0.80
Negative
52.92
Neutral
83.35
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 97.2 is above the 20-day moving average (MA) of 94.73, above the 50-day MA of 95.03, and above the 200-day MA of 90.03, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 83.35 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $14.34B | 9.36 | 50.12% | 9.15% | 16.06% | 54.94% | |
79 Outperform | $8.15B | 20.64 | 18.79% | 5.32% | 5.79% | 7.52% | |
78 Outperform | $9.87B | 27.02 | 8.08% | 3.07% | 6.40% | -8.42% | |
78 Outperform | $8.87B | 15.52 | 51.23% | 7.02% | 10.89% | 19.50% | |
75 Outperform | $12.29B | 23.85 | 7.56% | 7.37% | 3.28% | -47.59% | |
57 Neutral | $6.56B | 40.62 | -8.21% | 7.11% | 21.85% | -54.68% | |
56 Neutral | $6.93B | 3.27 | -3.99% | 5.91% | -0.52% | -47.74% |
* Energy Sector Average
Performance Comparison
DTM
DT Midstream
97.20
36.83
61.01%
PAA
Plains All American
17.46
1.15
7.05%
WES
Western Midstream Partners
37.60
4.83
14.74%
AM
Antero Midstream
16.55
3.38
25.66%
HESM
Hess Midstream Partners
37.17
5.06
15.76%
KNTK
Kinetik
41.34
5.49
15.31%
DT Midstream Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -1.35%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong performance in Q1 2025, with solid growth in critical segments like Haynesville and positive long-term market fundamentals. While there are some short-term challenges, such as expected seasonal decline in Q2, the company maintains a strong financial position and commitment to dividend growth. Overall, the highlights significantly outweigh the lowlights.Q1-2025 Updates
Positive Updates
Strong Start in 2025
Reaffirmed 2025 adjusted EBITDA guidance range and 2026 early outlook range. Executing on a $2.3 billion organic growth project backlog.
Pipeline Segment Performance
Pipeline segment results were $39 million higher than the fourth quarter of 2024, with a full quarter contribution from acquired interstate pipelines.
Growth in Haynesville Volumes
Total gathering volumes in Haynesville increased, averaging 1.67 Bcf per day, driven by new volumes and return of offline production.
Positive Long-Term Market Outlook
Total U.S. natural gas supply and demand expected to grow by approximately 19 Bcf per day through 2030, with strong demand from LNG exports and data center power generation.
Strong Financial Position
Adjusted EBITDA of $280 million, a $45 million increase from the prior quarter. Investment-grade with Fitch, positive outlook with Moody's and S&P.
Dividend Commitment
Board of Directors approved a first-quarter dividend of $0.82 per share, with a commitment to grow the dividend 5% to 7% per year.
Negative Updates
Seasonal Decline Expected in Q2
Adjusted EBITDA expected to be lower in Q2 due to seasonality across interstate pipelines and expected rate step-down on Guardian pipeline.
Decreased Volumes in Northeast
Northeast volumes decreased to 1.3 Bcf per day from the fourth quarter, driven by timing of producer activity.
Company Guidance
During DT Midstream's first quarter 2025 earnings call, the company reaffirmed its adjusted EBITDA guidance range for 2025 and its early outlook for 2026. They are executing on a $2.3 billion organic growth project backlog and integrating newly acquired interstate pipelines, with key integration activities on schedule to be completed by year-end. The company reported an adjusted EBITDA of $280 million for Q1 2025, marking a $45 million increase from the previous quarter. Total gathering volumes in the Haynesville averaged 1.67 Bcf per day, reflecting new volumes and the return of offline production, while Northeast volumes averaged 1.3 Bcf per day. DT Midstream expects adjusted EBITDA to be lower in Q2 due to seasonality and other factors but remains confident in its full-year guidance. The company also announced a first-quarter dividend of $0.82 per share, with a commitment to grow the dividend by 5% to 7% annually in line with long-term adjusted EBITDA growth.DT Midstream Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
DT Midstream Reports Strong Q1 2025 Financial Results
Positive
Apr 30, 2025
On April 30, 2025, DT Midstream announced strong financial results for the first quarter of 2025, reporting a net income of $108 million and an adjusted EBITDA of $280 million. The company declared a quarterly cash dividend of $0.82 per share, payable on July 15, 2025. Significant business updates include the successful integration of new interstate pipelines and the commencement of construction for a new power plant lateral. These developments position DT Midstream favorably for continued growth and operational success in the natural gas industry.
Spark’s Take on DTM Stock
According to Spark, TipRanks’ AI Analyst, DTM is a Outperform.
DT Midstream demonstrates strong financial performance and effective cash flow management. While technical indicators show moderate bullish sentiment, the stock is potentially overvalued based on its P/E ratio. The earnings call reveals robust growth prospects but also highlights risks from market and regulatory challenges. Overall, the stock presents a solid investment opportunity, albeit with some valuation and market risks.
To see Spark’s full report on DTM stock, click here.
DividendsBusiness Operations and StrategyFinancial Disclosures
DT Midstream Reports Record 2024 Financial Results
Positive
Feb 26, 2025
On February 26, 2025, DT Midstream reported record financial results for 2024, with a full-year adjusted EBITDA of $969 million and net income of $354 million. The company announced a 12% increase in its quarterly dividend to $0.82 per share, payable on April 15, 2025, and raised its 2025 adjusted EBITDA guidance to a range of $1.095 to $1.155 billion. Additionally, DT Midstream executed agreements for new projects to serve utility-scale power generation, reflecting its strong market positioning and commitment to growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.