DT Midstream (DTM) Q3 2024 earnings summary

Executive summary

• Reported Q3 2024 net income of $88 million and Adjusted EBITDA of $241 million, reflecting strong operational and financial performance, with continued execution of organic growth projects and disciplined capital deployment.

• Achieved investment-grade credit rating upgrade from Fitch, a key milestone since the 2021 spin-off, with Moody's maintaining a positive outlook.

• Announced final investment decisions on LEAP Phase 4 expansion (targeting 2.1 Bcf/d by H1 2026) and upsizing of the Stonewall-MVP interconnect, both underpinned by long-term contracts.

• Advanced clean fuels gathering and Louisiana CCS projects, with FID for CCS expected in H1 2025, demonstrating commitment to energy transition and net zero carbon emissions by 2050.

• Positioned for long-term growth, 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 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.

• Dividend declared at $0.735 per share for Q4 2024, with commitment to 5%-7% annual dividend growth.

• Raised 2024 Adjusted EBITDA guidance to $950–$980 million and distributable cash flow guidance to $670–$700 million.

Outlook and guidance

• Reaffirmed 2025 Adjusted EBITDA early outlook at $980–$1,040 million, with formal guidance to be provided at year-end.

• 2025 committed growth capital increased to $310 million, reflecting new FID projects.

• Anticipates total capital expenditures of $380–$410 million for 2024, focused on key expansions.

• Expects to grow dividends 5–7% annually over the long term, subject to board approval and financial performance.

• Management expects continued disciplined capital deployment, supported by a strong balance sheet and long-term firm revenue contracts.