DT Midstream (DTM)
NYSE:DTM
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DT Midstream
(NYSE:DTM)
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Rating:75Outperform
Price Target:
$149.00
â–²(10.87% Upside)
Action:ReiteratedDate:02/20/26
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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
DT Midstream (DTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.67B
Dividend Yield2.7%
Average Volume (3M)828.45K
Price to Earnings (P/E)27.6
Beta (1Y)0.57
Revenue Growth20.39%
EPS Growth-3.85%
CountryUS
Employees556
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.08
Shares Outstanding101,721,470
10 Day Avg. Volume673,914
30 Day Avg. Volume828,447
Financial Highlights & Ratios
PEG Ratio1.19
Price to Book (P/B)2.57
Price to Sales (P/S)9.78
P/FCF Ratio24.82
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue13.69
Enterprise Value/Gross Profit23.61
Enterprise Value/Ebitda16.52
Forecast
1Y Price Target
$146.60Price Target Upside9.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.76
Revenue Forecast (FY)$1.32B
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 pipeli...
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...
DT Midstream Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive operational and financial picture: record adjusted EBITDA (+17%), robust pipeline segment growth (+27%), a materially expanded and pipeline‑weighted organic backlog ($3.4B, +~50%), successful on‑time/on‑budget project execution, and investment‑grade ratings with continued dividend growth (+7.3%). Management acknowledged market volatility, weather‑driven production curtailments, project approval/timing risks, and limited disclosure on the gross backlog, but framed these as manageable within a disciplined capital allocation approach. Overall, highlights substantially outweigh the lowlights and management expressed confidence in delivering growth and funding the backlog from cash flows.Positive Updates
Record Annual Adjusted EBITDA and Strong Year‑over‑Year Growth
Adjusted EBITDA for 2025 was $1.138 billion, a 17% increase versus prior year. Fourth-quarter adjusted EBITDA was $293 million, up $5 million sequentially.
Negative Updates
Market Price Volatility and Capacity Constraints
Recent cold weather created extreme price volatility across the footprint, highlighting capacity constraints in the North American market and signaling the need for more pipeline and storage build‑out.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Adjusted EBITDA and Strong Year‑over‑Year Growth
Adjusted EBITDA for 2025 was $1.138 billion, a 17% increase versus prior year. Fourth-quarter adjusted EBITDA was $293 million, up $5 million sequentially.
Read all positive updates
Company Guidance
DTM guided 2026 adjusted EBITDA of $1.155 billion to $1.225 billion (2026 midpoint ~6% above its 2025 original guidance midpoint) and provided a 2027 early outlook of $1.225 billion to $1.295 billion (2027 midpoint ~6% above the 2026 midpoint); 2026 growth capital is $420–$480 million with ~ $390 million now committed, 2027 investment expected to be higher with ~ $430 million already committed. The company raised its 5‑year organic backlog ~50% to ~$3.4 billion (≈75% pipeline) with ~$1.6 billion committed; recent FIDs include the Viking expansion ($30–$40 million) and Interstate Phase 2 ($140–$160 million, expected in service H1 2028). DTM expects to fund this with strong cash flow while preserving investment‑grade ratings, targeting year‑end 2026 on‑balance‑sheet leverage of ~2.9x (proportional ~3.5x), declared a quarterly dividend of $0.88/share (up 7.3% YoY) and reiterated dividend growth in line with adjusted EBITDA while keeping coverage above a 2.0x floor (2025 coverage 2.6x).DT Midstream Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| 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 | 1.03B | 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
Positive
134.39
Price Trends
133.71
Positive
125.75
Positive
115.24
Positive
Market Momentum
-0.09
Positive
48.62
Neutral
26.46
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 134.39 is below the 20-day moving average (MA) of 135.47, above the 50-day MA of 133.71, and above the 200-day MA of 115.24, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 26.46 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.32B | 8.81 | 14.75% | 8.54% | -7.53% | 9.74% | |
75 Outperform | $13.67B | 27.57 | 9.41% | 2.70% | 20.39% | -3.85% | |
74 Outperform | $16.31B | 13.53 | 34.44% | 9.13% | 5.81% | -13.58% | |
74 Outperform | $10.63B | 20.58 | 20.12% | 4.98% | 8.70% | 21.42% | |
73 Outperform | $8.22B | 11.96 | 59.38% | 8.45% | 10.78% | 19.10% | |
66 Neutral | $18.41B | 14.58 | 19.19% | 8.03% | -7.53% | 11.27% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
DTM
DT Midstream
134.39
43.97
48.62%
PAA
Plains All American
21.71
5.97
37.96%
WES
Western Midstream Partners
41.42
8.17
24.56%
PAGP
Plains GP Holdings
23.49
6.64
39.40%
AM
Antero Midstream
22.47
6.97
45.01%
HESM
Hess Midstream Partners
39.58
5.59
16.46%
DT Midstream Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
DT Midstream Posts Record 2025 Results, Hikes Dividend
Positive
Feb 19, 2026
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 ...
Business Operations and StrategyExecutive/Board Changes
DT Midstream realigns leadership, appoints new president, chairman
Positive
Jan 29, 2026
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 Chairm...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.