DT Midstream (DTM) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 net income of $88 million and Adjusted EBITDA of $241 million, with strong operational and financial performance, and upgraded to investment grade by Fitch Ratings.

• Reached final investment decision on LEAP Phase 4 expansion, targeting 2.1 Bcf/d by H1 2026, and upsized Stonewall-MVP interconnect by 100 MMcf/d, both underpinned by long-term contracts.

• Advanced clean fuels gathering and Louisiana CCS projects, demonstrating commitment to energy transition and awaiting regulatory guidance for Class VI permit.

• Core assets connect key demand centers in the Midwest, Eastern Canada, and Gulf Coast to major natural gas production areas, supporting long-term growth and stable cash flows.

• Anticipates continued growth in 2025 and beyond, supported by LNG demand, power/data center opportunities, and industrial onshoring.

Financial highlights

• Q3 2024 Adjusted EBITDA was $241 million, down from $248 million in Q2 2024 due to non-repeating one-time items; net income for Q3 2024 was $88 million.

• Distributable cash flow for Q3 2024 was $207 million; nine months ended September 30, 2024, was $594 million.

• Q3 2024 operating revenues were $248 million, up from $234 million in Q3 2023; nine-month revenues reached $732 million.

• Q3 2024 dividend declared at $0.735 per share, with a commitment to 5%-7% annual growth.

• Gathering segment Adjusted EBITDA was $85 million, pipeline segment $156 million in Q3 2024.

Outlook and guidance

• Raised 2024 Adjusted EBITDA guidance to $950–$980 million, reflecting strong year-to-date performance.

• Early 2025 Adjusted EBITDA outlook set at $980–$1,040 million, targeting 5–7% long-term growth.

• Updated 2024 Operating EPS guidance to $3.53–$3.83 and Distributable Cash Flow to $670–$700 million.

• 2024 growth capital guidance at $330–$350 million, with total capital expenditures expected at $380–$410 million.

• Plans to provide formal 2025 guidance and refresh project backlog on year-end call.