DT Midstream (NYSE:DTM) reported a “record year” in 2025, with management highlighting strong pipeline-driven growth, expanding organic opportunities, and continued progress on new projects across its footprint. On the company’s fourth-quarter and year-end earnings call, executives also outlined updated financial guidance for 2026 and an early outlook for 2027, alongside a larger five-year organic growth backlog supported by what leadership described as strengthening natural gas demand fundamentals.
2025 performance and strategic milestones
Executive Chairman and CEO David Slater said 2025 adjusted EBITDA exceeded the company’s increased guidance midpoint and rose 17% from the prior year, driven primarily by growth in the pipeline segment. Slater noted that the company completed integration of its Midwest pipeline acquisition, marking one year since the deal, and emphasized the acquisition’s role in pipeline segment momentum.
From a capital structure standpoint, management said DT Midstream achieved investment-grade credit ratings from all three major rating agencies in 2025 and remains focused on maintaining a strong balance sheet.
Slater also summarized progress since the company’s spin-off nearly five years ago, stating DT Midstream has delivered total shareholder return of approximately 280% and approximately 12% compounded annual adjusted EBITDA growth, alongside what he described as a consistently growing dividend. He said the pipeline segment has increased from about 50% of the business to 70% today, and that the portfolio is 95% demand-based with an average contract tenure of eight years.
Backlog increased to $3.4 billion over five years
Looking ahead, Slater said the company updated its overall organic project backlog, increasing it by approximately 50% to $3.4 billion over the next five years. He said pipeline projects account for about 75% of the total backlog, reflecting DT Midstream’s emphasis on pipeline growth.
Management described the $3.4 billion figure as a combination of FID projects and “probability-adjusted” future organic opportunities the company is committing to execute, and said it can be fully funded with cash flows and the balance sheet. Slater added that the company’s gross backlog is “multiples” larger than the committed, probability-adjusted figure, but declined to quantify it further during Q&A.
New FIDs and project updates
DT Midstream said 2026 is “already off to a great start,” announcing FID on two new pipeline projects:
- Viking expansion: An expansion to serve load growth in Grand Forks, North Dakota, anchored by an investment-grade utility under a long-term negotiated rate contract. Management said it is expected to go into service in Q4 2027.
- Interstate Pipelines Modernization Program phase: The next phase will focus on Midwestern Pipeline, targeting reliability improvements along the corridor between Chicago and Nashville.
With these additions, the company said it has approximately $1.6 billion committed out of its $3.4 billion backlog.
Management also provided updates on other projects moving toward final approvals:
- Vector Pipeline expansion: The company said Vector closed a successful binding open season for an expansion that would increase westbound capacity into Chicago by about 400 MMcf/d. The project has contractual support and, subject to approvals from both owners, is expected to be in service in Q4 2028.
- Millennium Pipeline R2R project: DT Midstream said long-term agreements have been executed with two utilities and an existing power plant. Subject to owner approvals, the project is expected to be fully in service in Q1 2027.
On construction, Slater said the Stonewall Mountain Valley Pipeline expansion was placed into service early and on budget in early February, with deliveries being made to Mountain Valley for multiple customers. He also said Phase Three of the Appalachia Gathering System expansion reached fully in-service status early and on budget, and that all other previously announced growth projects remain on track and on budget.
Natural gas demand themes: utilities, LNG, and winter volatility
Slater argued that U.S. natural gas fundamentals are supporting a “generational” opportunity set. He said power demand is accelerating across the Upper Midwest, citing expected coal retirements of approximately 35 GW over the next 10–15 years and increasing large-load and data center announcements. He also referenced utility disclosures pointing to contracted and potential large-load opportunities of about 50 GW and roughly $150 billion of planned generation investment over the next five years.
While noting not all incremental power demand will be met with natural gas, Slater said the addressable opportunity could be up to 13 Bcf/d, with a pathway to 5–8 Bcf/d of potential incremental gas demand in the Upper Midwest. He said DT Midstream’s interstate pipeline network is positioned to serve many of the utilities expected to experience that growth.
On LNG, Slater said four terminals reached FID in 2025 and cited additional vertical integration in the Haynesville by international companies. He said the company expects LNG demand to grow by 11 Bcf through 2030, with about two-thirds served by the Haynesville, and described DT Midstream’s system as well-positioned to benefit.
He also addressed recent cold weather, saying it highlighted market tightness and drove “extreme price volatility” across DT Midstream’s footprint. Slater said the company’s pipeline and storage network performed well, serving firm customers reliably. He noted DT Midstream’s storage complex recorded all-time high withdrawals during the winter and that many pipelines experienced record-high peak-day throughput.
Financial results, 2026 guidance, and dividend
EVP and CFO Jeff Jewell reported 2025 adjusted EBITDA of $1.138 billion, up 17% year over year. He attributed the increase to 27% growth in the pipeline segment driven by the Midwest pipeline acquisition and higher LEAP and storage revenue.
For the fourth quarter, DT Midstream posted adjusted EBITDA of $293 million, up $5 million from the third quarter, driven by increased seasonal demand on JV pipelines and higher LEAP revenue. Jewell said gathering segment results were in line with the third quarter.
Operationally, Jewell said the company achieved a record high in total gathering volumes in the quarter. In the Haynesville, volumes averaged above 1.9 Bcf/d, slightly lower than the third quarter due to upstream maintenance. In the Northeast, average volumes ramped to approximately 1.3 Bcf/d, consistent with expectations of a flat entry-to-exit year. He added that in 2026, Winter Storm Fern drove some production curtailments, which is contemplated in the company’s guidance range.
DT Midstream issued 2026 adjusted EBITDA guidance of $1.155 billion to $1.225 billion. The company also provided an early 2027 adjusted EBITDA outlook of $1.225 billion to $1.295 billion.
On capital spending, DT Midstream guided to 2026 growth capital of $420 million to $480 million, with approximately $390 million committed following the newly FID’d projects. For 2027, Jewell said growth investment is expected to be above 2026 levels, with approximately $430 million already committed.
Management said the Viking expansion will require total investment of $30 million to $40 million. For the interstate modernization phase focused on Midwestern, Jewell cited a planned investment range of $140 million to $160 million and an expected first-half 2028 in-service date, with capital expected to be included in the next rate case.
On leverage, Jewell said the company forecasts 2026 year-end on-balance sheet leverage of 2.9x and proportional leverage of 3.5x, reiterating a commitment to preserving investment-grade ratings.
The board declared a quarterly dividend of $0.88 per share, which Jewell said represents a 7.3% increase from the prior year. He said the company plans to grow the dividend in line with adjusted EBITDA and maintain a coverage ratio above a 2x floor, noting coverage was 2.6x for 2025.
About DT Midstream (NYSE:DTM)
DT Midstream Inc (NYSE: DTM) is a midstream energy company that owns and operates infrastructure for gathering, processing and treating hydrocarbons and produced water. Its core business activities encompass natural gas gathering, cryogenic processing, natural gas liquids (NGL) fractionation, and produced-water handling services. These integrated operations enable the company to capture and transport multiple hydrocarbon streams from wellhead to market and to provide essential water management solutions.
The company’s asset footprint is concentrated in the Delaware Basin in West Texas and southeastern New Mexico, where it serves a diverse range of exploration and production customers.
