DT Midstream(US:DTM)2025-10-30 18:26Financial 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].