DT Midstream, Inc. (NYSE:DTM) is included among the 14 Best Up and Coming Dividend Stocks to Buy. DT Midstream (DTM) Price Target Increased by Morgan Stanley After “Relatively In-Line” Q3 Earnings Image by Steve Buissinne from Pixabay Morga⁠n Stanley l‍ifted its price ta‌rg‌et on DT Midstream, Inc. (NYSE:DTM) to $137 from $126 on​ November⁠ 12, while maint‌aini⁠ng an U‌nderweight sta‌nce, as reported by The Fly. The adjustment came as the fir⁠m‍ up​dated it​s e​sti‍mates f‌ollowin⁠g‌ what it d⁠esc‌ribed ...

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Financial Performance - Operating revenues for the three months ended September 30, 2025, increased to $314 million, up 26.6% from $248 million in the same period of 2024[24]. - Net income attributable to DT Midstream for the three months ended September 30, 2025, was $115 million, representing a 30.7% increase compared to $88 million in the prior year[24]. - Basic earnings per common share for the three months ended September 30, 2025, rose to $1.14, up from $0.91 in the same quarter of 2024, reflecting a 25.3% increase[24]. - Operating income for the nine months ended September 30, 2025, was $458 million, up 21.8% from $376 million in the same period of 2024[24]. - Net income for the nine months ended September 30, 2025, was $340 million, an increase from $291 million in the same period of 2024, representing a growth of 16.8%[32]. - Operating revenues for the nine months ended September 30, 2025, were $612 million, slightly down from $613 million in the same period of 2024[56]. - Net income for the nine months ended September 30, 2025, was $234 million, compared to $280 million for the same period in 2024, showing a decrease of about 16.4%[56]. Assets and Liabilities - Total assets as of September 30, 2025, amounted to $10,061 million, a slight increase from $9,935 million at the end of 2024[28]. - The total liabilities as of September 30, 2025, were $5,217 million, slightly up from $5,169 million at the end of 2024[30]. - As of September 30, 2025, consolidated VIEs' total assets amounted to $952 million, an increase from $914 million as of December 31, 2024, representing a growth of approximately 4.2%[49]. - Total liabilities for consolidated VIEs increased to $22 million as of September 30, 2025, compared to $8 million as of December 31, 2024, indicating a significant rise of 175%[49]. Cash and Cash Equivalents - Cash and cash equivalents increased to $98 million as of September 30, 2025, compared to $68 million at the end of 2024[28]. - Net cash and cash equivalents from operating activities increased to $706 million, compared to $611 million for the same period in 2024, reflecting a rise of 15.6%[32]. - Total cash and cash equivalents at the end of the period reached $98 million, up from $77 million at the end of September 2024, marking a growth of 27.3%[32]. Capital Expenditures and Investments - Plant and equipment expenditures for the nine months ended September 30, 2025, were $295 million, compared to $260 million in 2024, indicating an increase of 13.5%[32]. - Capital expenditures for the three months ended September 30, 2025, amounted to $143 million[126]. - The total investments in equity method investees as of September 30, 2025, were $1,262 million, down from $1,297 million as of December 31, 2024, reflecting a decline of approximately 2.7%[55]. Dividends and Shareholder Returns - Dividends paid on common stock totaled $241 million, up from $209 million in the previous year, which is an increase of 15.3%[32]. - The company declared cash dividends of $0.820 per share for the quarter ended September 30, 2025, totaling $83 million[96]. - A quarterly dividend of $0.82 per share was declared on October 30, 2025, payable on January 15, 2026[142]. Debt and Financing - Long-term debt remained stable at $3,322 million as of September 30, 2025, compared to $3,319 million at the end of 2024[30]. - As of September 30, 2025, the total long-term debt was $3.322 billion, with a principal amount of $3.4 billion net of unamortized discounts and issuance costs[104][107]. - The consolidated net leverage ratio was 3.0 to 1 as of September 30, 2025, in compliance with the financial covenant, which allows a maximum ratio of 5 to 1[115]. Strategic Initiatives - The company continues to focus on organic growth projects and strategic acquisitions to enhance its market position and operational efficiency[19]. - The company completed the Midwest Pipeline Acquisition of three FERC-regulated interstate natural gas transmission pipelines on December 31, 2024, enhancing its asset portfolio[39]. - The Midwest Pipeline Acquisition was completed on December 31, 2024, for a preliminary purchase price of $1.2 billion, acquiring 100% operating ownership in three interstate natural gas transmission pipelines[132]. Risk Factors - The company is exposed to credit risk, particularly from a key customer, Expand Energy, which significantly contributes to its revenues[185]. - The company is subject to interest rate risk related to goodwill impairment assessments, as detailed in the Annual Report for the year ended December 31, 2024[188]. - A sensitivity analysis on long-term debt obligations showed that a hypothetical 10% increase in interest rates could result in a fair value change of $(83) million, while a 10% decrease could result in an increase of $86 million[190].

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $288 million for the third quarter, an increase of $11 million from the previous quarter [10] - The midpoint of the 2025 adjusted EBITDA guidance was raised to $1.13 billion, reflecting an 18% increase from the prior year guidance [5][11] - Distributable cash flow guidance was increased to a range of $800 million to $830 million, with a midpoint increase of $45 million due to lower maintenance capital, interest, and cash taxes [11] Business Line Data and Key Metrics Changes - The pipeline segment results were consistent with the second quarter, while gathering segment results increased by $10 million, driven by higher volumes on the Haynesville system [10] - Total gathering volumes for the Haynesville averaged 2.04 Bcf per day, marking a 35% increase over the third quarter of 2024 [10] Market Data and Key Metrics Changes - The company noted robust gas and power demand growth throughout the region, particularly in Louisiana, driven by data center activity and LNG demand [19][20] - The Haynesville system demonstrated record high throughput, indicating producers' ability to respond quickly to LNG demand signals [8][9] Company Strategy and Development Direction - The company is focused on executing its pure play natural gas pipeline strategy and is well-positioned with a strong balance sheet to fund incremental investments [14] - The company announced reaching FID on a larger G3+ expansion on the Guardian Pipeline, increasing its total capacity by approximately 537 million cu ft per day [6] - The company is pursuing upstream network opportunities to enhance flexibility and reliability for customers [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's increased guidance for 2025 and early outlook for 2026, citing strong market fundamentals and growth opportunities [14] - The recent Senate confirmation of two new FERC members was viewed as a positive sign for the regulatory environment [9] Other Important Information - The company placed its LEAP Phase 4 expansion facilities into service early and on budget, increasing capacity from 1.9 Bcf to 2.1 Bcf per day [7] - The Board of Directors approved a third-quarter dividend of $0.82 per share, unchanged from the prior quarter, with a commitment to grow the dividend by 5%-7% per year [13] Q&A Session Summary Question: Potential for network to support data center demand in Louisiana - Management acknowledged robust demand growth in Louisiana, particularly from data centers and LNG, and expressed confidence in capturing market share [19] Question: Growth trajectory in Haynesville and LEAP expansions - Management highlighted significant development in western Haynesville and expected continued volume growth, which would support LEAP expansions [20][22] Question: Opportunities in the upper Midwest and NEXUS - Management discussed positive fundamentals in the upper Midwest and the potential for NEXUS to capture market share in the data center power demand [53] Question: Dividend growth potential - Management indicated that strong growth exceeding the long-term target could lead to higher dividend growth, with a focus on maintaining strong coverage [56][60] Question: CapEx changes and maintenance capital - Management noted that efficiencies in capital spending were a significant factor in the reduction of the 2025 gross capital guidance range [12][41] Question: Millennium open season status - Management stated that the Millennium project is complex and evolving, with a focus on ensuring all regulatory requirements are met before moving forward [46][47] Question: Market share outlook in Haynesville - Management expressed confidence in maintaining or growing market share in the Haynesville region, supported by strategic connectivity to Carthage [108]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $288 million for the third quarter, an increase of $11 million from the previous quarter [10] - The midpoint of the 2025 adjusted EBITDA guidance range has been increased to $1.13 billion, representing an 18% increase from the prior year guidance [5][11] - Distributable cash flow guidance has been raised to a range of $800 to $830 million, reflecting a midpoint increase of $45 million due to lower maintenance capital, interest, and cash taxes [11] Business Line Data and Key Metrics Changes - The pipeline segment results were consistent with the second quarter, while gathering segment results increased by $10 million, driven by higher volumes on the Haynesville system [10] - Total gathering volumes for the Haynesville averaged 2.04 Bcf per day, marking a 35% increase over the third quarter of 2024 [10] Market Data and Key Metrics Changes - The company has seen robust gas and power demand growth throughout the region, particularly in Louisiana, driven by data center activity and LNG demand [6][19] - The Northeast volumes averaged 1.09 Bcf per day, with expectations for an increase in the fourth quarter due to incremental production on the Tioga system [11] Company Strategy and Development Direction - The company is focused on executing its pure play natural gas pipeline strategy and is well-positioned to fund incremental investments in a favorable market environment [14] - The Guardian G3+ expansion has reached FID, increasing the total capacity of the Guardian pipeline by approximately 537 million cubic feet per day, a 40% increase [6] - The company is pursuing upstream network opportunities to enhance connectivity and reliability for customers [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market share in the growing LNG market and emphasized the importance of maintaining a strong balance sheet [14][19] - The recent Senate confirmation of two new FERC members is viewed as a positive sign for the regulatory environment, enhancing confidence in the permitting process for key growth projects [9] Other Important Information - The company announced a third-quarter dividend of $0.82 per share, unchanged from the prior quarter, with a commitment to grow the dividend by 5% to 7% per year in line with long-term adjusted EBITDA growth [13] - The Louisiana CCS project remains pre-FID, with an uncertain permit timeline due to a moratorium on new applications [8] Q&A Session Summary Question: Potential for network to support gas-fired generation in Louisiana - Management highlighted robust demand growth in Louisiana, particularly from data centers and LNG demand, and expressed confidence in capturing market share [19] Question: Growth trajectory in Haynesville and LEAP expansions - Management noted significant development in western Haynesville and expects continued volume growth, with a focus on maintaining competitive positioning [20][22] Question: Upstream Chicago opportunities - Management discussed the potential for the Vector, Nexus, and Midwestern pipelines to bring incremental supply to the Chicago hub, with ongoing discussions about expansions [24] Question: Change in CapEx for the year - Management indicated that capital efficiency and timing have contributed to a reduction in gross capital guidance, with a focus on maintaining a flat run rate for maintenance capital [41][44] Question: Millennium open season status - Management confirmed ongoing work on the Millennium project, emphasizing the need for patience due to regulatory complexities in New York [46][47] Question: Outlook for additional BTN opportunities off Nexus - Management expressed confidence in Nexus's position to capture market share for data center power demand in northwestern Ohio [53] Question: Market share trends in Haynesville - Management reported an increase in market share over the past few years and aims to maintain that share amid growing demand [107]

Financial Data and Key Metrics Changes - The company increased the midpoint of its 2025 adjusted EBITDA guidance range to $1.13 billion, an 18% increase from the prior year adjusted EBITDA guidance [5] - Adjusted EBITDA for the third quarter was $288 million, representing an $11 million increase from the prior quarter [11] - The distributable cash flow guidance range was raised to $800 to $830 million, a midpoint increase of $45 million due to lower maintenance capital, interest, and cash taxes [12] Business Line Data and Key Metrics Changes - The pipeline segment results were in line with the second quarter, while gathering segment results were $10 million higher than the second quarter, driven by higher volumes on the Haynesville system [11] - Total gathering volumes for the Haynesville averaged 2.04 Bcf per day, a 35% increase over the third quarter of 2024 [11] - The LEAP Phase 4 expansion increased capacity from 1.9 to 2.1 Bcf per day, providing access to Gulf Coast LNG markets [7] Market Data and Key Metrics Changes - The company noted robust gas and power demand growth throughout the region, particularly in Louisiana, driven by data center activity and LNG demand [6][10] - The Northeast volumes averaged 1.09 Bcf per day, with expectations for higher volumes in the fourth quarter [11][12] - The Haynesville system demonstrated record high throughput, indicating producers' ability to respond quickly to LNG demand signals [9] Company Strategy and Development Direction - The company is focused on executing its pure play natural gas pipeline strategy and is well-positioned with a strong balance sheet to fund incremental investments [15] - The Guardian G3+ expansion will increase the total capacity of the Guardian pipeline by approximately 537 million cubic feet per day, supported by long-term contracts with investment-grade utilities [6] - The company is pursuing upstream network opportunities to enhance flexibility and reliability for customers [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position within the natural gas market, citing a positive shift in Haynesville and strong demand growth [10] - The recent Senate confirmation of two new FERC members was viewed as an encouraging sign for the regulatory environment [10] - Management remains optimistic about the future opportunities, particularly in the LNG market and industrial demand growth [10][15] Other Important Information - The company announced a third-quarter dividend of $0.82 per share, unchanged from the prior quarter, with a commitment to grow the dividend by 5% to 7% per year [14] - The committed capital for the 2025 to 2029 period has increased to $1.6 billion, reflecting 70% of the $2.3 billion backlog advancing to execution [14] Q&A Session Summary Question: Potential for network to support gas-fired generation in Louisiana - Management noted robust demand growth in Louisiana, particularly from data centers and LNG demand, and expressed confidence in capturing market share [20] Question: Growth trajectory in Haynesville and LEAP expansions - Management highlighted significant development in western Haynesville and expected continued volume growth, with a focus on maintaining market share [21][22] Question: Upstream Chicago opportunities - Management discussed the potential for the Vector, Nexus, and Midwestern pipelines to bring in incremental supply to the Chicago market [24] Question: Dividend growth potential - Management indicated that strong growth could lead to higher dividend increases, with a focus on maintaining strong coverage ratios [61][65] Question: Millennium open season status - Management described the complexity of the Millennium project and emphasized the need for patience in the regulatory process [53] Question: Market share trends in Haynesville - Management expressed confidence in maintaining or growing market share due to strong connectivity and resource quality [132]

Financial Performance - Third quarter 2025 net income was $115 million and Adjusted EBITDA was $288 million[12] - The company is raising its 2025 Adjusted EBITDA guidance midpoint and narrowing the range to $1,115 - $1,145 million, an 18% increase from the prior year's original Adjusted EBITDA guidance[12] - The company reaffirmed its 2026 Adjusted EBITDA early outlook of $1,155 - $1,225 million[12] Organic Growth and Projects - Approximately $0.5 billion was committed within the quarter for new organic projects, bringing the total to approximately $1.6 billion out of the original $2.3 billion backlog[12] - The company reached FID (Final Investment Decision) on the upsized Guardian Pipeline "G3" expansion for a total of approximately 537 MMcf/d expansion capacity northbound from Chicago[12, 25] - The LEAP Phase 4 expansion was placed in-service early and on budget[12] Operational Performance - The Haynesville system achieved a record high throughput, with volumes up 35% year-over-year[10] Capital Investments - The upsized "G3" expansion is expected to require a total capital investment of $850 to $930 million[26] - Approximately $1.6 billion of projects have reached FID for 2025 – 2029[33] Guidance Updates - 2025 Distributable Cash Flow is now guided to $800 - $830 million[27] - 2025 Capital Expenditures are now guided to $445 - $485 million[27] Market Position - Haynesville throughput increased by 35% in Q3 2025, reaching 204 Bcf/d[36]

Core Insights - DT Midstream, Inc. reported a net income of $115 million for Q3 2025, equating to $1.13 per diluted share, with Operating Earnings also at $115 million and Adjusted EBITDA at $288 million [1][2][18] Financial Performance - The company declared a dividend of $0.82 per share, payable on January 15, 2026, to stockholders of record by December 15, 2025 [2] - Year-to-date results are ahead of plan, prompting an increase in Adjusted EBITDA guidance for 2025 to a range of $1,115 million to $1,145 million [2][9] Business Updates - Significant progress was made in both commercial and construction activities during the quarter [2] - The company reached a final investment decision on the Guardian Pipeline "G3" expansion, increasing pipeline capacity by approximately 537 million cubic feet per day (MMcf/d), a 40% increase [6] - The LEAP Phase 4 expansion project was placed in-service ahead of schedule and on budget [6] Company Overview - DT Midstream operates natural gas interstate and intrastate pipelines, storage, and gathering systems, serving utilities, power plants, and large industrial customers across the U.S. and Canada [3] - The company aims to achieve net zero greenhouse gas emissions by 2050, with a target of 30% carbon emissions reduction by 2030 [3] Financial Metrics - Adjusted EBITDA is defined as GAAP net income before interest, taxes, depreciation, and amortization, adjusted for non-routine items [5][8] - Distributable Cash Flow (DCF) is calculated by adjusting net income for various expenses and is considered a key measure of the company's ability to generate cash earnings [8][22]

Financial Performance - DT Midstream reported a net income of $115 million, or $1.13 per diluted share, for Q3 2025, with Adjusted EBITDA of $288 million[1][2]. - For the three months ended September 30, 2025, net income attributable to DT Midstream was $115 million, compared to $107 million for the previous quarter, reflecting a 7.5% increase[18]. - Adjusted EBITDA for the three months ended September 30, 2025, was $288 million, up from $277 million in the previous quarter, representing a 4% increase[18]. - For the nine months ended September 30, 2025, net income attributable to DT Midstream was $330 million, an increase from $281 million for the same period in 2024, reflecting a 17.4% growth[21]. - The company reported distributable cash flow of $262 million for the three months ended September 30, 2025, compared to $157 million in the previous quarter, indicating a significant increase of 67%[21]. Operational Highlights - DT Midstream achieved a 40% increase in the capacity of the Guardian Pipeline "G3" expansion, adding approximately 537 MMcf/d[4]. - The LEAP Phase 4 expansion project was placed in-service ahead of schedule and on budget, contributing to operational efficiency[4]. - The company established a record high quarterly gathering volume for its Haynesville system, indicating strong demand and operational performance[4]. - The gathering segment achieved adjusted EBITDA of $93 million for the three months ended September 30, 2025, compared to $83 million in the previous quarter, marking a 12% increase[20]. - The pipeline segment reported net income attributable to DT Midstream of $92 million for the three months ended September 30, 2025, slightly down from $93 million in the previous quarter[19]. Guidance and Future Outlook - The company raised its Adjusted EBITDA guidance for 2025 to a range of $1,115 million to $1,145 million, reflecting strong year-to-date performance[3]. - Year-to-date results are ahead of plan, showcasing effective management and operational execution[3]. Environmental Commitment - DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, with a target of achieving a 30% reduction in carbon emissions by 2030[5]. Key Performance Metrics - The company emphasizes the use of Operating Earnings and Adjusted EBITDA as key performance metrics to provide a clearer picture of ongoing operations[6][7]. - Distributable Cash Flow (DCF) is highlighted as a meaningful performance measurement for estimating the ability to generate cash earnings after servicing debt and making capital investments[8]. Other Financial Details - Interest expense for the three months ended September 30, 2025, was $40 million, consistent with the previous quarter[18]. - Depreciation and amortization for the three months ended September 30, 2025, totaled $65 million, up from $63 million in the previous quarter[21]. - The company recorded earnings from equity method investees of $34 million for the three months ended September 30, 2025, compared to $30 million in the previous quarter[19]. - The total capital expenditures for maintenance capital investment were $19 million for the three months ended September 30, 2025[21]. - A dividend of $0.82 per share was declared, payable on January 15, 2026, to stockholders of record as of December 15, 2025[2].

Core Insights - DT Midstream, Inc. plans to announce its third quarter 2025 financial results on October 30, 2025, before market opening [1] - A conference call to discuss the results is scheduled for 9:00 a.m. ET on the same day, with a live internet broadcast available [2] Company Overview - DT Midstream is engaged in the ownership, operation, and development of natural gas pipelines, storage, and gathering systems, as well as compression and treatment facilities [3] - The company provides services for utilities, power plants, marketers, large industrial customers, and energy producers across the Southern, Northeastern, and Midwestern United States and Canada [3] - DT Midstream aims for net zero greenhouse gas emissions by 2050, with a target of reducing carbon emissions by 30% by 2030 [3]