NYSE:DTM
DT Midstream, Inc.
A robust midstream infrastructure provider offering end-to-end energy logistics services with a focus on the Permian Basin and strong cash flow generation.
Key Metrics
Investment Thesis
Bull Case
Investors should consider DTM for its exposure to the growing Permian Basin production, which offers superior margin potential compared to other basins. The company's ability to generate consistent free cash flow supports a generous dividend payout and provides flexibility for share buybacks or further strategic acquisitions. Its diversified asset base mitigates regional concentration risk while maintaining a competitive cost structure in the midstream sector.
Bear Case
The heavy reliance on upstream oil and gas prices creates inherent volatility, as reduced production volumes could severely dampen service demand and revenue growth. High levels of long-term debt totaling $3.32 billion combined with significant capital expenditures may constrain financial flexibility during periods of economic downturn or market stress. Recent cash flow from financing activities shows substantial outflows that could limit the company's ability to return capital to shareholders if operating conditions deteriorate.
About DT Midstream, Inc.
DT Midstream, Inc. (NYSE: DTM) is a leading midstream energy company providing essential infrastructure services across the Permian Basin and other North American shale regions. The company specializes in gathering, processing, compression, and storage solutions for crude oil, natural gas, and natural gas liquids. Its integrated portfolio supports upstream producers by delivering critical logistical capabilities while managing significant capital expenditures to expand its operational footprint.
Analysis
Management Discussion
DT Midstream reported strong operational performance in 2025 with revenue reaching $1.24 billion, reflecting successful execution of its growth strategy and acquisition integration efforts. Despite a significant net cash outflow from financing activities of -$509 million, the company generated robust operating cash flows of $867 million, demonstrating solid liquidity management. The substantial capital expenditures indicate a committed investment in infrastructure expansion to sustain long-term revenue growth.
Industry Overview
The midstream energy sector serves as the critical link between upstream producers and downstream consumers, providing essential transportation, storage, and processing infrastructure for crude oil and natural gas. Industry growth is closely tied to North American shale production trends, with companies like DTM positioned to benefit from sustained investment in unconventional resource development. Regulatory scrutiny on environmental impacts remains a key factor influencing industry profitability and expansion plans.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $920.0M | $922.0M | $981.0M | $1.24B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $920.0M | $922.0M | $981.0M | $1.24B |
| Operating Expenses | $442.0M | $451.0M | $492.0M | $629.0M |
| Operating Income | $478.0M | $471.0M | $489.0M | $614.0M |
| Stock-Based Comp | $17.0M | $20.0M | $23.0M | $26.0M |
| D&A | $170.0M | $182.0M | $209.0M | $258.0M |
| Amortization | $57.0M | $57.0M | $57.0M | $60.0M |
| Non-Operating Income | $4.0M | $29.0M | $15.0M | $-16.0M |
| Interest Expense | $137.0M | $150.0M | — | — |
| Interest Income | $3.0M | $1.0M | $7.0M | $2.0M |
| Pre-Tax Income | $482.0M | $500.0M | $504.0M | $598.0M |
| Income Tax | $100.0M | $104.0M | $137.0M | $144.0M |
| Continuing Ops | $382.0M | $396.0M | $367.0M | $454.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $382.0M | $396.0M | $367.0M | $454.0M |
| Minority Interest | $12.0M | $12.0M | $13.0M | $13.0M |
| Net to Common | $370.0M | $384.0M | $354.0M | $441.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $262.0M | $272.0M | $310.0M | $318.0M |
| Cash & Equivalents | $61.0M | $56.0M | $68.0M | $54.0M |
| Accounts Receivable | $161.0M | $154.0M | $172.0M | $186.0M |
| Prepaid Expenses | — | $16.0M | $29.0M | $34.0M |
| Other Current Assets | $40.0M | $46.0M | $41.0M | $44.0M |
| Long-Term Assets | $8.57B | $8.71B | $9.62B | $9.76B |
| PP&E (Net) | $3.81B | $4.43B | $5.53B | $5.77B |
| Intangibles | $2.02B | $1.97B | $1.92B | $1.86B |
| Goodwill | $473.0M | $473.0M | $776.0M | $781.0M |
| Operating Leases | $31.0M | $38.0M | $49.0M | $46.0M |
| Other LT Assets | $36.0M | $35.0M | $55.0M | $54.0M |
| Total Assets | $8.83B | $8.98B | $9.94B | $10.08B |
| Current Liabilities | $614.0M | $434.0M | $426.0M | $296.0M |
| Accounts Payable | $119.0M | $94.0M | $77.0M | $65.0M |
| Current Debt | $0 | — | — | — |
| Current Leases | $16.0M | $13.0M | $16.0M | $16.0M |
| Deferred Revenue | — | $18.0M | $18.0M | $25.0M |
| Other Current Liab | $417.0M | $242.0M | $240.0M | $107.0M |
| Long-Term Liabilities | $4.07B | $4.27B | $4.74B | $4.91B |
| Long-Term Debt | $3.06B | $3.06B | $3.32B | $3.32B |
| LT Operating Leases | $19.0M | $27.0M | $36.0M | $32.0M |
| Other LT Liab | $987.0M | $1.06B | $1.25B | $1.39B |
| Total Liabilities | $4.68B | $4.70B | $5.17B | $5.20B |
| Shareholders' Equity | $4.15B | $4.28B | $4.77B | $4.88B |
| Paid-In Capital | $3.47B | $3.48B | $3.91B | $3.92B |
| Retained Earnings | $547.0M | $661.0M | $723.0M | $827.0M |
| AOCI | $-10.0M | $-8.0M | $-8.0M | $-7.0M |
| Total L&E | $8.83B | $8.98B | $9.94B | $10.08B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $382.0M | $396.0M | $367.0M | $454.0M |
| Non-Cash Adjustments | $369.0M | $271.0M | $350.0M | $362.0M |
| Working Capital Changes | $-26.0M | $131.0M | $46.0M | $51.0M |
| Cash from Operations | $725.0M | $798.0M | $763.0M | $867.0M |
| Capital Expenditures | $338.0M | $772.0M | $350.0M | $426.0M |
| Cash from Investing | $-854.0M | $-351.0M | $-1.08B | $-372.0M |
| Debt Issuances | $591.0M | $0 | $644.0M | $0 |
| Debt Repayments | $596.0M | $0 | $399.0M | $0 |
| Share Buybacks | $3.0M | $0 | — | — |
| Dividends Paid | $244.0M | $263.0M | $280.0M | $324.0M |
| Cash from Financing | $58.0M | $-452.0M | $330.0M | $-509.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-71.0M | $-5.0M | $12.0M | $-14.0M |
| Beginning Cash | $132.0M | $61.0M | $56.0M | $68.0M |
| Ending Cash | $61.0M | $56.0M | $68.0M | $54.0M |
Frequently Asked Questions
How does DT Midstream, Inc. make money?
The company's revenue is driven primarily by gathering, processing, compression, storage, and distribution services for crude oil and natural gas liquids. Operations are concentrated in high-growth shale regions such as the Permian Basin, Eagle Ford, and Niobrara, supported by a diversified portfolio of assets including tank batteries and pipeline networks.
What are the main risks for DTM?
Fluctuations in upstream production volumes directly impact revenue stability as midstream services are demand-driven by oil and gas output. Regulatory changes regarding environmental compliance and permitting could increase operating costs or delay expansion projects. Elevated capital expenditure requirements of approximately $426 million annually pose a liquidity challenge if commodity prices decline significantly.
What is DTM's competitive advantage?
DT Midstream benefits from its strategic asset location within the prolific Permian Basin, offering low-cost access to key production areas. The company maintains a strong balance sheet with significant cash flow generation that supports aggressive capital deployment for growth acquisitions and dividends. Its integrated service model allows it to capture value across multiple stages of the energy supply chain, enhancing operational efficiency.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.