DT Midstream(DTM) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release This section covers financial highlights, management commentary, and future guidance for Q2 2025 Financial Highlights and Shareholder Returns DT Midstream reported strong Q2 2025 financial results with $107 million net income, $1.04 diluted EPS, $277 million Adjusted EBITDA, and declared a $0.82 quarterly dividend Q2 2025 Financial Performance | Metric | Value | | :--- | :--- | | Reported Net Income (in millions) | $107 | | Diluted EPS (per share) | $1.04 | | Operating Earnings (in millions) | $107 | | Operating Earnings per Diluted Share (per share) | $1.04 | | Adjusted EBITDA (in millions) | $277 | - The Board of Directors declared a quarterly dividend of $0.82 per share, payable on October 15, 2025, to stockholders of record as of September 15, 2025[2] Management Commentary and Business Updates Management reaffirmed full-year guidance, highlighting $0.6 billion in organic project investment decisions, achieving an investment-grade credit rating, and record Haynesville gathering volumes - The company is performing on track with its full-year plan and made final investment decisions on $0.6 billion of organic projects during Q2[3] - Key business updates for the quarter include: - Final investment decision on the Guardian Pipeline "G3" expansion (~210 MMcf/d) - Finalized investment plan for modernizing new interstate pipelines - Achieved an investment-grade credit rating with all three rating agencies - Set a record high quarterly gathering volume for the Haynesville system[4] Financial Guidance DT Midstream reaffirmed 2025 Adjusted EBITDA guidance and provided an early 2026 outlook, noting no reconciliation for forward-looking Adjusted EBITDA due to unpredictability Adjusted EBITDA Guidance | Year | Guidance Range (in billions) | | :--- | :--- | | 2025 (Reaffirmed) | $1.095 - $1.155 | | 2026 (Early Outlook) | $1.155 - $1.225 | - The company does not provide a reconciliation of projected Adjusted EBITDA to GAAP net income because it cannot predict certain components like impairments, acquisition costs, or accounting changes without unreasonable effort[10] Financial Tables and Reconciliations (Non-GAAP) This section details reconciliations of GAAP net income to non-GAAP measures like operating earnings, Adjusted EBITDA, and Distributable Cash Flow Reconciliation of Reported to Operating Earnings This section reconciles reported net income and EPS to operating earnings and EPS for Q2 and six months 2025 and 2024, showing no adjustments for Q2 2025 Net Income Reconciliation | Period | Reported Net Income (in millions) | Operating Earnings (in millions) | | :--- | :--- | :--- | | Q2 2025 | $107 | $107 | | Six Months 2025 | $215 | $215 | | Six Months 2024 | $193 | $193 | EPS Reconciliation | Period | Reported EPS (per share) | Operating EPS (per share) | | :--- | :--- | :--- | | Q2 2025 | $1.04 | $1.04 | | Six Months 2025 | $2.10 | $2.10 | | Six Months 2024 | $1.97 | $1.97 | Reconciliation of Net Income to Adjusted EBITDA This section reconciles GAAP Net Income to Adjusted EBITDA for consolidated, Pipeline, and Gathering segments, showing Q2 2025 consolidated Adjusted EBITDA at $277 million Consolidated Adjusted EBITDA This sub-section presents the reconciliation of consolidated net income to Adjusted EBITDA for Q1, Q2, and six months of 2025 and 2024 Consolidated Adjusted EBITDA | Period | Net Income (in millions) | Adjusted EBITDA (in millions) | | :--- | :--- | :--- | | Q2 2025 | $107 | $277 | | Q1 2025 | $108 | $280 | | Six Months 2025 | $215 | $557 | | Six Months 2024 | $193 | $493 | Pipeline Segment Adjusted EBITDA This sub-section details the reconciliation of net income to Adjusted EBITDA specifically for the Pipeline segment across various periods Pipeline Segment Adjusted EBITDA | Period | Net Income (in millions) | Adjusted EBITDA (in millions) | | :--- | :--- | :--- | | Q2 2025 | $93 | $194 | | Q1 2025 | $92 | $197 | | Six Months 2025 | $185 | $391 | | Six Months 2024 | $145 | $309 | Gathering Segment Adjusted EBITDA This sub-section provides the reconciliation of net income to Adjusted EBITDA for the Gathering segment for Q1, Q2, and six months of 2025 and 2024 Gathering Segment Adjusted EBITDA | Period | Net Income (in millions) | Adjusted EBITDA (in millions) | | :--- | :--- | :--- | | Q2 2025 | $14 | $83 | | Q1 2025 | $16 | $83 | | Six Months 2025 | $30 | $166 | | Six Months 2024 | $48 | $184 | Reconciliation of Net Income to Distributable Cash Flow (DCF) This section reconciles Net Income to Distributable Cash Flow (DCF), a non-GAAP measure, showing Q2 2025 DCF at $157 million and $407 million for the first six months of 2025 Distributable Cash Flow | Period | Net Income (in millions) | Distributable Cash Flow (in millions) | | :--- | :--- | :--- | | Q2 2025 | $107 | $157 | | Q1 2025 | $108 | $250 | | Six Months 2025 | $215 | $407 | | Six Months 2024 | $193 | $387 | Disclosures and Company Information This section provides an overview of DT Midstream, explains non-GAAP financial measures, and includes forward-looking statements About DT Midstream DT Midstream is a Detroit-based owner and operator of natural gas infrastructure across North America, committed to net-zero greenhouse gas emissions by 2050 - The company owns and operates a comprehensive array of natural gas infrastructure, providing wellhead-to-market services for a diverse customer base[6] - DT Midstream has a stated goal of transitioning to net-zero greenhouse gas emissions by 2050, with an interim target of a 30% reduction by 2030[6] Explanation of Non-GAAP Financial Measures The company explains its use of non-GAAP measures like Operating Earnings, Adjusted EBITDA, and DCF, which provide a clearer view of operational performance and industry comparison - Operating Earnings represent earnings from ongoing operations, excluding non-recurring items, serving as the primary performance measure for external communications[7] - Adjusted EBITDA is used to understand operating performance unaffected by interest, taxes, depreciation, amortization, and non-routine charges, facilitating comparison with industry peers[8] - Distributable Cash Flow (DCF) is a key metric to estimate cash generated by assets after servicing debt, taxes, and maintenance capital, available for dividends or growth[9] Forward-Looking Statements This section provides a standard safe harbor statement regarding forward-looking statements, noting they are subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking statements relate to future performance, plans, and strategies, identified by words like "believe," "expect," "guidance," and "outlook"[11][12] - Actual results may differ materially from projections due to various factors, including economic changes, supply chain disruptions, geopolitical events, and regulatory changes[13] - The company disclaims any obligation to update forward-looking statements and advises against undue reliance on them[14][15]