DT Midstream(DTM) - 2025 Q2 - Quarterly Report

Definitions This section provides a glossary of terms and acronyms used throughout the Form 10-Q - The section provides a glossary of terms and acronyms used throughout the Form 10-Q, including financial terms (e.g., AFUDC, ASC 606, GAAP), company-specific entities (e.g., DT Midstream, DTM Interstate Transportation), and asset descriptions (e.g., Appalachia Gathering, Blue Union Gathering, NEXUS, Millennium, Viking)[9][10][12] Filing Format This section specifies how the Form 10-Q should be read in conjunction with other reports - This Form 10-Q should be read in its entirety and in conjunction with the Consolidated Financial Statements and Notes, and Management's Discussion and Analysis from DT Midstream's 2024 Annual Report on Form 10-K[17] Forward-Looking Statements This section discusses the inherent risks and uncertainties associated with future-oriented statements in the report - The report contains forward-looking statements subject to numerous assumptions, risks, and uncertainties that may cause actual future results to differ materially. Key risk factors include changes in general economic conditions (interest rates, recession, inflation), industry changes (consolidations, alternative energy, technology), global trade policies, supply chain disruptions, actions by third-party operators, demand for natural gas services, and regulatory changes (e.g., Inflation Reduction Act, OBBBA)[19][22] - The company is not obligated to update or alter its forward-looking statements[21] PART I — FINANCIAL INFORMATION Item 1. Financial Statements This section presents DT Midstream's unaudited consolidated financial statements for the three and six months ended June 30, 2025 and 2024, along with detailed notes explaining the business, accounting policies, revenue recognition, goodwill, earnings per share, debt, and segment information. The financial performance shows an increase in net income and operating revenues year-over-year, driven partly by the Midwest Pipeline Acquisition DT Midstream Consolidated Financial Statements (Unaudited) This section presents the company's unaudited consolidated financial statements for specific periods Consolidated Statements of Operations This statement details the company's operating revenues, income, and earnings per common share for the reported periods | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Operating revenues | $309 | $244 | $612 | $484 | | Operating Income | $155 | $130 | $303 | $254 | | Net Income Attributable to DT Midstream | $107 | $96 | $215 | $193 | | Basic Earnings per Common Share | $1.05 | $0.99 | $2.12 | $1.99 | | Diluted Earnings per Common Share | $1.04 | $0.98 | $2.10 | $1.97 | - Operating revenues increased by $65 million (26.6%) for the three months ended June 30, 2025, and by $128 million (26.4%) for the six months ended June 30, 2025, compared to the same periods in 2024[24] - Net Income Attributable to DT Midstream increased by $11 million (11.5%) for the three months ended June 30, 2025, and by $22 million (11.4%) for the six months ended June 30, 2025, compared to the same periods in 2024[24] Consolidated Statements of Comprehensive Income This statement shows the company's net income and comprehensive income attributable to DT Midstream | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net Income | $111 | $100 | $222 | $200 | | Comprehensive Income Attributable to DT Midstream | $107 | $96 | $216 | $193 | - Comprehensive Income Attributable to DT Midstream increased by $11 million (11.5%) for the three months ended June 30, 2025, and by $23 million (11.9%) for the six months ended June 30, 2025, compared to the same periods in 2024[26] Consolidated Statements of Financial Position This statement provides a snapshot of the company's assets, liabilities, and equity at specific dates | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------------- | :----------------------- | :--------------------------- | | Total Assets | $9,960 | $9,935 | | Total Liabilities | $5,145 | $5,169 | | Total DT Midstream Equity | $4,673 | $4,627 | | Total Equity | $4,815 | $4,766 | - Total Assets increased by $25 million from December 31, 2024, to June 30, 2025[28] - Total Liabilities decreased by $24 million, while Total DT Midstream Equity increased by $46 million during the same period[30] Consolidated Statements of Cash Flows This statement summarizes the cash inflows and outflows from operating, investing, and financing activities | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash and cash equivalents from operating activities | $432 | $406 | | Net cash and cash equivalents used for investing activities | $(124) | $(143) | | Net cash and cash equivalents used for financing activities | $(302) | $(246) | | Net Increase in Cash and Cash Equivalents | $6 | $17 | | Cash and Cash Equivalents at End of Period | $74 | $73 | - Net cash from operating activities increased by $26 million (6.4%) for the six months ended June 30, 2025, compared to the same period in 2024[32] - Net cash used for financing activities increased by $56 million (22.8%) for the six months ended June 30, 2025, primarily due to higher net repayments of borrowings and increased dividends[32][163] Consolidated Statements of Changes in Stockholders' Equity This statement outlines changes in the company's equity, including retained earnings and common stock | Metric | Balance, December 31, 2024 (millions) | Balance, June 30, 2025 (millions) | | :-------------------------------- | :------------------------------------ | :-------------------------------- | | Total DT Midstream Equity | $4,627 | $4,815 | | Retained Earnings | $723 | $770 | | Common Stock Shares Outstanding | 101,325 | 101,593 | - Total DT Midstream Equity increased by $188 million from December 31, 2024, to June 30, 2025, primarily due to net income partially offset by dividends declared[34] Notes to Consolidated Financial Statements (Unaudited) This section provides detailed explanations and disclosures supporting the consolidated financial statements Note 1 — Description of the Business and Basis of Presentation This note describes DT Midstream's business segments, core assets, and consolidation policies - DT Midstream operates an integrated portfolio of natural gas midstream assets through two segments: Pipeline (interstate/intrastate pipelines, storage, gathering laterals, equity method investees) and Gathering (gathering systems, treatment plants, compression, ancillary services)[36] -