Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $969 million for 2024, a record high and a 5% increase from the previous year, supported by a 7% growth in the pipeline segment [6][24][28] - For Q4 2024, adjusted EBITDA was $235 million, with the pipeline segment performing in line with the prior quarter [24][25] - The company expects adjusted EBITDA for 2025 to range from $1.95 billion to $2.155 billion, representing an 18% growth from the original 2024 guidance [27][28] Business Line Data and Key Metrics Changes - The pipeline segment experienced a 7% year-over-year growth, driven by new LEAP expansions and higher storage revenue [24][28] - The gathering segment saw a decrease of $6 million compared to the prior quarter due to production deferrals and an unplanned outage from a key producer [25][26] Market Data and Key Metrics Changes - The company noted that cold weather has rebalanced the North American natural gas market, leading to strengthened prices and record high withdrawals from storage facilities [17][18] - The Haynesville system is expected to see LNG demand grow by 12 Bcf per day over the next decade, with basin supply increasing similarly [19][20] Company Strategy and Development Direction - The company is focused on organic growth projects and has increased its project backlog to approximately $2.3 billion, which includes high-probability organic growth opportunities [15][28] - The company aims to maintain a long-term organic growth rate of 5% to 7%, with pipeline projects comprising about 70% of the total opportunity set [15][28] - The company is well-positioned to capitalize on utility-scale power generation demand, with two new projects announced to serve this market [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on full-year guidance for 2025 and early outlook for 2026, citing positive market fundamentals supporting the pipeline business [33] - The company anticipates a more constructive pricing environment in 2025, which is expected to enhance commercial project opportunities [12][18] Other Important Information - The company was upgraded to investment grade by Fitch in October 2024 and expects further upgrades from other rating agencies in 2025 [10][30] - A quarterly dividend increase to $0.82 per share was declared, representing a 12% increase, supported by higher adjusted EBITDA following the Midwest pipeline acquisition [29][30] Q&A Session Summary Question: Clarification on new projects and their nature - Management confirmed that the two announced projects are utility-scale and in addition to previously discussed behind-the-meter opportunities [40][41] Question: Expected returns and economic terms for the backlog - Management indicated expected returns on projects are in the range of five to eight times multiple, consistent with previous disclosures [50][51] Question: Production recovery outlook - Management expects Haynesville volumes to ramp up throughout the year, while Appalachia volumes are anticipated to remain flat [54][56] Question: Capital plan and backlog expansion - Management expressed optimism about the backlog and indicated that the acquisition from One Oak has provided more opportunities than initially expected [62][63] Question: Update on CCS and regulatory progress - Management noted ongoing CCS discussions with developers and highlighted that the application requirements for the project have been finalized [82][106] Question: Market share growth in Haynesville - Management remains confident in their ability to grow market share in the Haynesville region, citing strong demand and infrastructure discussions [75][78]

Core Insights - DT Midstream, Inc. reported strong financial results for the fourth quarter and full year of 2024, with net income of $73 million for Q4 and $354 million for the full year, reflecting a solid performance and exceeding guidance [1][2][3] Financial Performance - Fourth quarter 2024 reported net income was $73 million, or $0.73 per diluted share, with Operating Earnings of $94 million, or $0.94 per diluted share, and Adjusted EBITDA of $235 million [1][2] - For the full year 2024, reported net income was $354 million, or $3.60 per diluted share, with Operating Earnings of $375 million, or $3.81 per diluted share, and Adjusted EBITDA of $969 million [2][3] Business Developments - The company successfully closed its largest acquisition in history and completed key organic growth projects ahead of schedule and on budget, positioning itself to meet growing demand [3][4] - DT Midstream increased its 2025 Adjusted EBITDA guidance range to $1.095 to $1.155 billion, representing an 18% increase over the original 2024 guidance [9] - The company announced a 12% increase in dividends from the fourth quarter of 2024 to $0.82 per share, payable on April 15, 2025 [9] Strategic Outlook - The company expressed confidence in meeting its goals for 2025 and beyond, supported by strong financial results, an increased organic project backlog, and a flexible balance sheet [4][9] - DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, with a plan to achieve a 30% reduction in carbon emissions by 2030 [6]

Financial Performance - Fourth quarter 2024 reported net income was $73 million, or $0.73 per diluted share, with Operating Earnings of $94 million, or $0.94 per diluted share, and Adjusted EBITDA of $235 million[1][2]. - Full year 2024 reported net income was $354 million, or $3.60 per diluted share, with Operating Earnings of $375 million, or $3.81 per diluted share, and Adjusted EBITDA of $969 million[2]. - For the three months ended December 31, 2024, net income attributable to DT Midstream was $73 million, compared to $88 million for the previous quarter[23]. - Adjusted EBITDA for the same period was $235 million, a decrease from $241 million in the prior quarter[23]. - The pipeline segment reported net income of $60 million for the three months ended December 31, 2024, down from $71 million in the previous quarter[24]. - The gathering segment's net income for the three months ended December 31, 2024, was $13 million, compared to $17 million in the prior quarter[25]. - Distributable Cash Flow for the three months ended December 31, 2024, was $133 million, down from $207 million in the previous quarter[26]. - Interest expense for the three months ended December 31, 2024, was $36 million, compared to $38 million in the previous quarter[26]. - The company recorded $43 million in income tax expense for the three months ended December 31, 2024, an increase from $30 million in the prior quarter[26]. - Depreciation and amortization for the three months ended December 31, 2024, was $53 million, consistent with the previous quarter[26]. - The company made a maintenance capital investment of $13 million for the three months ended December 31, 2024[27]. Future Guidance - The company increased 2025 Adjusted EBITDA guidance to a range of $1.095 to $1.155 billion, representing an 18% increase over the original 2024 guidance[3][4]. - An early outlook for 2026 Adjusted EBITDA is projected to be in the range of $1.155 to $1.225 billion, indicating a 6% annual growth from 2025[8]. Dividends and Shareholder Returns - The dividend was increased by 12% to $0.82 per share, payable on April 15, 2025[4][8]. Strategic Initiatives - The company executed agreements for two new projects aimed at serving utility-scale power generation[8]. - The company successfully closed the largest acquisition in its history last year and completed key organic growth projects ahead of schedule and on budget[3]. - The company has a strong financial position with an expanded asset footprint and increased organic project backlog, enhancing confidence in meeting future goals[5]. Environmental Commitment - DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, with a plan to achieve a 30% reduction in carbon emissions by 2030[7]. Performance Metrics - The company emphasizes the use of Operating Earnings and Adjusted EBITDA as key performance metrics to provide a meaningful representation of ongoing operations[9][10].

Company Overview - DT Midstream, Inc. (DTM) is currently experiencing significant attention from investors due to high implied volatility in its options market, particularly the March 21, 2025 $100 Put option [1] - The company holds a Zacks Rank 2 (Buy) in the Oil and Gas - Integrated - United States industry, which is in the top 19% of the Zacks Industry Rank [3] Analyst Sentiment - Over the last 60 days, no analysts have increased earnings estimates for the current quarter, while two analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from 95 cents per share to 91 cents [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for DT Midstream shares, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Company Overview - DT Midstream, Inc. is engaged in the ownership, operation, and development of natural gas interstate and intrastate pipelines, storage, and gathering systems [2] - The company provides a comprehensive range of services including natural gas transportation, storage, and gathering across the Southern, Northeastern, and Midwestern United States and Canada [2] - DT Midstream is committed to transitioning towards net zero greenhouse gas emissions by 2050, with a target of achieving a 30% reduction in carbon emissions by 2030 [2] Upcoming Events - The 2025 Annual Meeting of Stockholders is scheduled for Tuesday, May 6, 2025 [1] - Stockholders of record as of the close of business on March 12, 2025, are eligible to vote at the meeting [1]

Company Overview - DT Midstream, Inc. is engaged in the ownership, operation, and development of natural gas interstate and intrastate pipelines, storage, and gathering systems, as well as compression, treatment, and surface facilities [3] - The company transports clean natural gas for various customers, including utilities, power plants, marketers, large industrial customers, and energy producers across the Southern, Northeastern, and Midwestern United States and Canada [3] - DT Midstream is committed to transitioning towards net zero greenhouse gas emissions by 2050, with a target of achieving a 30% reduction in carbon emissions by 2030 [3] Upcoming Financial Results - DT Midstream plans to announce its fourth quarter and full year 2024 financial results before the market opens on February 26, 2025 [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 for investors and the public [2] - The company has provided toll-free and international dial-in numbers for participants to join the conference call [2]

Core Viewpoint - DT Midstream, Inc. has announced a $650 million offering of 5.800% Senior Secured Notes due 2034 to fund a pending acquisition of several pipeline companies [1][2]. Group 1: Offering Details - The offering consists of $650 million of Senior Secured Notes with a maturity date in 2034 [1]. - The Notes will be secured by a first priority lien on certain assets of DT Midstream and its subsidiaries [1]. - The offering is expected to close on December 6, 2024, pending customary closing conditions [1]. Group 2: Use of Proceeds - The net proceeds from the Notes will be used alongside funds from a recent common stock offering, borrowings under a revolving credit facility, and cash on hand [2]. - The funds will specifically finance the acquisition of equity interests in Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company, and Viking Gas Transmission Company from ONEOK Partners Intermediate Limited Partnership and Border Midwestern Company [2]. Group 3: 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 [5]. - The company aims to achieve net zero greenhouse gas emissions by 2050, with a target of reducing carbon emissions by 30% by 2030 [5].

Recommendations - Barclays raised the price target for BellRing Brands by $5 [1] - Barclays raised the price target for CIBC by C$8 [1] - Barclays raised the price target for Bank of Montreal by C$17 [1] - Barclays raised the price target for WTW by $24 [2] - Barclays raised the price target for Ryan Specialty by $12 [2] - Barclays raised the price target for Marsh McLennan by $10 [2] - Barclays raised the price target for Brown & Brown by $11 [3] - Barclays raised the price target for Arthur J. Gallagher by $8 [3] - Barclays raised the price target for Aon plc by $46 [3]

Core Viewpoint - DT Midstream, Inc. has announced an increase in its public offering of common stock to approximately $366.125 million, priced at $101 per share, to fund the acquisition of several pipeline companies [1][2]. Group 1: Offering Details - The size of the offering was increased from $300 million to $366.125 million, with gross proceeds expected to be around $366.125 million before underwriting discounts and expenses [1]. - The company has granted underwriters a 30-day option to purchase an additional 543,750 shares at the public offering price [1]. - The offering is anticipated to close on or about November 21, 2024, subject to market conditions [1]. Group 2: Use of Proceeds - The net proceeds from the offering, along with up to $650 million from new senior secured notes and other financing, will be used to fund the acquisition of Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company, and Viking Gas Transmission Company [2]. - The closing of the offering is not contingent upon the completion of the pending acquisition [2]. Group 3: Company Overview - DT Midstream is involved in the ownership, operation, and development of natural gas pipelines and related facilities, serving utilities, power plants, and industrial customers across the U.S. and Canada [5]. - The company aims to achieve net zero greenhouse gas emissions by 2050, with a target of reducing carbon emissions by 30% by 2030 [5].

DETROIT, Nov. 19, 2024 (GLOBE NEWSWIRE) -- DT Midstream, Inc. (NYSE: DTM) announced that it has commenced an underwritten public offering of $300 million of shares of common stock. In connection with this offering, the Company expects to grant the underwriters a 30-day option to purchase up to $45 million of additional shares of common stock at the public offering price, less the underwriting discounts and commissions. The offering is subject to market and other conditions, and there can be no assurances as ...