DT Midstream Inc. (DTM, Financial) has reported a positive kick-off to the year, according to President and CEO David Slater. The company's first-quarter performance showed significant progress, particularly in merging its newly acquired interstate pipeline systems. This development marks a key step in their strategy, enhancing operational capabilities and positioning them for future growth. The integration efforts are expected to bolster DTM's infrastructure, thereby driving efficiency and expanding their market reach.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for DT Midstream Inc (DTM, Financial) is $105.01 with a high estimate of $115.00 and a low estimate of $89.14. The average target implies an upside of 6.58% from the current price of $98.53. More detailed estimate data can be found on the DT Midstream Inc (DTM) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, DT Midstream Inc's (DTM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DT Midstream Inc (DTM, Financial) in one year is $74.38, suggesting a downside of 24.51% from the current price of $98.53. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DT Midstream Inc (DTM) Summary page.
DTM Key Business Developments
Release Date: February 26, 2025
- Adjusted EBITDA (2024): $969 million, a 5% increase over the prior year.
- Pipeline Segment Growth (2024): 7% year-over-year growth.
- Fourth Quarter Adjusted EBITDA: $235 million.
- Gathering Segment Results: $6 million lower than the prior quarter.
- Haynesville Gathering Volumes (Q4): Averaged just above 1.4 Bcf per day.
- 2025 Adjusted EBITDA Guidance: $1.095 billion to $1.155 billion, representing 18% growth from 2024 original guidance.
- 2026 Early Outlook Adjusted EBITDA: $1.155 billion to $1.225 billion.
- 2025 Growth Capital Guidance: $400 million to $460 million.
- Quarterly Dividend Increase: Increased to $0.82 per share, a 12% increase.
- Debt Maturity Profile: Weighted average maturity of approximately seven years.
- 2025 Year-End On-Balance Sheet Leverage: Forecasted at 3.1 times.
- Proportional Leverage (2025): 3.9 times.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DT Midstream Inc (DTM, Financial) achieved a record high adjusted EBITDA of $969 million in 2024, exceeding guidance and marking a 10% compounded annual growth since 2021.
- The company successfully integrated the Midwest Pipeline acquisition from ONEOK, enhancing its FERC interstate natural gas pipeline network.
- DT Midstream Inc (DTM) maintained exceptional safety performance with zero OSHA recordable safety incidences in 2024.
- The company was upgraded to investment grade by Fitch in October 2024 and expects further upgrades from S&P and Moody's in 2025.
- DT Midstream Inc (DTM) announced two new utility-scale power generation projects, expanding its project backlog to $2.3 billion, which supports a 5% to 7% long-term organic growth rate.
Negative Points
- The Gathering segment results were $6 million lower than the prior quarter due to producer deferrals and an unplanned outage by a key customer, resulting in lower Haynesville volumes.
- The company faced significant macro sector headwinds in 2024, including depressed natural gas prices and a pause in the approval of new LNG export permits.
- There is uncertainty regarding the timing of the final Class VI permit for the CCS project in Louisiana, which has been delayed.
- The Haynesville volumes were down from the third quarter due to deferrals and outages, although they are expected to improve in 2025.
- The company is still awaiting FID on a major power plant project in West Virginia, which is expected to occur in 2026, delaying potential revenue from this project.
