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DETROIT - DT Midstream, Inc. (NYSE: DTM), a natural gas infrastructure company, reported a net income of $354 million for the full year of 2024, translating to $3.60 per diluted share. The company also announced an increased quarterly dividend of $0.82 per share, which represents a 12% hike from the previous quarter and is payable on April 15, 2025, to shareholders of record as of March 17, 2025. According to InvestingPro data, DTM has consistently raised its dividend for 4 consecutive years, with the current yield standing at 3.07%.
The company’s Adjusted EBITDA for the year stood at $969 million, surpassing its previously increased guidance. For the fourth quarter alone, DT Midstream reported an Adjusted EBITDA of $235 million. These financial measures, such as Operating Earnings and Adjusted EBITDA, are used by the company to provide a clearer picture of ongoing operations by excluding non-recurring items and certain other adjustments. InvestingPro analysis shows the company maintains strong profitability with a gross profit margin of 78% and has received a "GOOD" overall financial health score.
David Slater, President and CEO of DT Midstream, credited the successful year to the company’s team efforts, including closing their largest acquisition to date and completing key growth projects. The company has updated its 2025 Adjusted EBITDA guidance to a range of $1.095 to $1.155 billion, which marks an 18% increase over the 2024 original guidance. Additionally, DT Midstream provided an early outlook for 2026, estimating Adjusted EBITDA to range between $1.155 to $1.225 billion. The stock has delivered impressive returns, with a 76% gain over the past year, though InvestingPro analysis indicates the stock may be trading above its Fair Value.
Further bolstering its growth trajectory, DT Midstream has executed agreements for two new projects aimed at serving utility-scale power generation. These developments are part of the company’s strategic expansion to meet the growing demand for natural gas transportation and related services across its operating regions in the United States and Canada. With analyst price targets ranging from $85 to $118, investors seeking deeper insights can access comprehensive analysis through the Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.
Jeff Jewell, Executive Vice President and CFO, expressed confidence in meeting the company’s goals for the current year and beyond, citing the strong financial results, an increased project backlog, expanded asset footprint, and a flexible balance sheet.
DT Midstream operates a network of natural gas pipelines, storage, and gathering systems, and is working towards net zero greenhouse gas emissions by 2050, with a target of a 30% reduction by 2030.
This news report is based on a press release statement from DT Midstream, Inc. and does not include any speculative content regarding the broader industry impacts or trends.
In other recent news, DT Midstream has made several strategic financial and operational moves. The company announced an acquisition of a natural gas pipeline, which is expected to push its earnings before interest, taxes, depreciation, and amortization (EBITDA) past the $1 billion mark. Stifel upgraded DT Midstream’s stock from Hold to Buy, raising the price target to $106.00, citing the acquisition as a key factor in its positive outlook. Citi also maintained a Buy rating with a $115.00 price target, anticipating an increase in 2025 EBITDA guidance by about $130 million, largely due to the Midwest pipelines acquisition.
Additionally, DT Midstream amended its credit agreement to secure a $700 million bridge loan for its recent acquisitions, including Guardian Pipeline, L.L.C. The company further extended the maturity date of its revolving credit facility, enhancing its financial flexibility. This amendment introduces provisions to facilitate future acquisitions, underscoring DT Midstream’s strategic focus on growth. Analysts from Citi project a 10% dividend growth for 2025, reflecting the company’s recalibration after recent mergers and acquisitions. These developments highlight DT Midstream’s ongoing efforts to strengthen its position in the natural gas transmission sector.
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