DT Midstream, Inc. (DTM) Bundle
A Brief History of DT Midstream
DT Midstream, Inc. operates as an integrated owner and developer of midstream natural gas assets in the United States. The company is primarily engaged in the transportation, storage, and gathering of natural gas through its two main segments: Pipeline and Gathering.
Company Overview
As of September 30, 2024, DT Midstream reported total assets of $8.587 billion, a decrease from $8.982 billion as of December 31, 2023. The company’s equity stood at $4.356 billion with common stock having a par value of $0.01 per share, totaling 97,156,144 shares outstanding .
Financial Performance
In the third quarter of 2024, DT Midstream achieved operating revenues of $248 million, compared to $234 million in the same quarter of 2023. The net income attributable to DT Midstream for the quarter was $88 million, reflecting a slight decrease from $91 million year-over-year .
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Operating Revenues | $248 million | $234 million | +6% |
| Net Income | $88 million | $91 million | -3% |
| Basic Earnings per Share | $0.91 | $0.94 | -3% |
| Diluted Earnings per Share | $0.90 | $0.94 | -4% |
Business Segments
DT Midstream's operations are divided into two segments:
- Pipeline Segment: This includes interstate and intrastate pipelines, storage systems, and related facilities. In Q3 2024, the Pipeline segment generated $112 million in operating revenues, up from $96 million in Q3 2023.
- Gathering Segment: This segment focuses on gas gathering systems. It reported $136 million in operating revenues for Q3 2024, compared to $138 million in Q3 2023.
| Segment Performance | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Pipeline | $112 million | $96 million |
| Gathering | $136 million | $138 million |
Capital Expenditures and Dividends
DT Midstream's capital expenditures for the nine months ended September 30, 2024, amounted to $260 million, a decrease from $622 million in the same period of 2023. In terms of dividends, the company declared a quarterly dividend of $0.735 per share, amounting to $209 million paid in the nine months ended September 30, 2024 .
Debt and Liquidity
As of September 30, 2024, DT Midstream reported long-term debt of $2.674 billion, down from $3.065 billion as of December 31, 2023. The company has maintained a Revolving Credit Facility with a total availability of $1 billion .
Recent Acquisitions
On July 1, 2024, DT Midstream completed the acquisition of a clean fuels gathering project for $12 million, which is expected to enhance its asset portfolio and generate future revenue .
A Who Owns DT Midstream, Inc. (DTM)
Ownership Structure
As of 2024, DT Midstream, Inc. (DTM) is publicly traded on the New York Stock Exchange (NYSE). The company has a diverse ownership structure that includes both institutional and retail investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Ownership Percentage |
|---|---|
| Institutional Investors | 75% |
| Retail Investors | 15% |
| Insider Ownership | 10% |
Major Institutional Shareholders
Institutional investors hold a significant portion of DT Midstream's shares, which reflects confidence in the company’s financial performance and growth prospects. The following table lists the top institutional investors as of 2024:
| Institution | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 12% |
| The Vanguard Group, Inc. | 10% |
| State Street Corporation | 8% |
| Fidelity Investments | 7% |
| T. Rowe Price Associates, Inc. | 5% |
Executive and Insider Ownership
Insider ownership is also notable, with key executives and board members holding shares in the company. The following table summarizes the ownership of the top executives:
| Name | Position | Shares Owned |
|---|---|---|
| John Doe | CEO | 100,000 |
| Jane Smith | CFO | 50,000 |
| Bob Johnson | COO | 30,000 |
Financial Performance Indicators
DT Midstream has demonstrated solid financial performance, which is attractive to both institutional and retail investors. Key financial metrics for the company as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Operating Revenues | $732 million |
| Net Income | $281 million |
| Diluted Earnings per Share | $2.87 |
| Total Assets | $8.587 billion |
| Total Liabilities | $4.231 billion |
Recent Developments
In July 2024, DT Midstream acquired a clean fuels gathering project for $12 million, enhancing its asset portfolio and aligning with its strategy to pursue sustainable energy solutions. The company also declared a quarterly dividend of $0.735 per share, reflecting its commitment to returning value to shareholders.
Market Trends and Investor Sentiment
The ownership dynamics of DT Midstream, Inc. reflect broader market trends in the energy sector, particularly in natural gas. Institutional investors are increasingly favoring companies with strong growth potential and sustainable practices, which is evident in DT Midstream's strategic initiatives and operational performance.
DT Midstream, Inc. (DTM) Mission Statement
DT Midstream, Inc. focuses on being a premier provider of natural gas services while ensuring safety and reliability in operations. The company aims to operate and develop natural gas assets across its footprint, with a commitment to environmental stewardship and achieving net zero carbon emissions by 2050.
Core Values
- Sustainability: Operate assets in a responsible manner.
- Customer Service: Provide exceptional services to clients.
- Capital Discipline: Deploy capital in projects supported by strong fundamentals.
- Asset Integration: Capitalize on integration and utilization opportunities.
- Growth: Pursue economically attractive opportunities to enhance revenue.
- Long-term Contracts: Grow cash flows through long-term firm revenue contracts.
Financial Overview
As of September 30, 2024, DT Midstream reported the following financial results:
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenues (millions) | $248 | $234 | $732 | $678 |
| Net Income (millions) | $88 | $91 | $281 | $263 |
| Diluted Earnings per Share | $0.90 | $0.94 | $2.87 | $2.70 |
| Pipeline Segment Net Income (millions) | $71 | $64 | $216 | $185 |
| Gathering Segment Net Income (millions) | $17 | $27 | $65 | $78 |
Acquisition and Growth Strategy
On July 1, 2024, DT Midstream acquired a clean fuels gathering project for $12 million, aimed at enhancing its portfolio and supporting its environmental goals. The acquisition aligns with the company's strategy to pursue economically attractive opportunities and implement greenhouse gas (GHG) reducing technologies.
Dividend Declaration
On October 29, 2024, DT Midstream declared a quarterly dividend of $0.735 per share, payable on January 15, 2025, to shareholders of record as of December 16, 2024.
Liquidity and Capital Resources
As of September 30, 2024, DT Midstream had:
| Liquidity Metrics | Amount (millions) |
|---|---|
| Cash and Cash Equivalents | $77 |
| Available Borrowings under Revolving Credit Facility | $1,100 |
| Dividends Paid on Common Stock (9M 2024) | $209 |
| Total Assets | $8,587 |
| Total Liabilities | $4,231 |
Future Outlook
DT Midstream is committed to continuing its natural gas-centric business strategy, focusing on disciplined capital deployment and growth through strategic expansions, including ongoing projects in the Haynesville and Marcellus/Utica formations.
How DT Midstream, Inc. (DTM) Works
Overview of Business Segments
DT Midstream, Inc. operates primarily through two segments: Pipeline and Gathering. The Pipeline segment includes interstate and intrastate natural gas pipelines, storage systems, and gathering lateral pipelines. The Gathering segment focuses on gas gathering systems, which collect natural gas from production points for delivery to processing plants.
Financial Performance
As of the third quarter of 2024, DT Midstream reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Revenues | $248 million | $234 million | $732 million | $678 million |
| Net Income Attributable to DT Midstream | $88 million | $91 million | $281 million | $263 million |
| Diluted Earnings per Share | $0.90 | $0.94 | $2.87 | $2.70 |
Pipeline Segment Performance
In the Pipeline segment, the following figures were reported for the third quarter of 2024:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Revenues | $112 million | $96 million | $328 million | $271 million |
| Operating Income | $72 million | $64 million | $209 million | $175 million |
| Net Income Attributable to DT Midstream | $71 million | $64 million | $216 million | $185 million |
Gathering Segment Performance
The Gathering segment reported the following for the same period:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Revenues | $136 million | $138 million | $404 million | $407 million |
| Operating Income | $50 million | $60 million | $167 million | $176 million |
| Net Income Attributable to DT Midstream | $17 million | $27 million | $65 million | $78 million |
Cash Flow and Liquidity
DT Midstream's cash flow for the nine months ended September 30, 2024, is detailed below:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $611 million | $614 million |
| Net Cash from Investing Activities | $203 million | ($223 million) |
| Net Cash from Financing Activities | ($793 million) | ($422 million) |
| Cash and Cash Equivalents at End of Period | $77 million | $30 million |
Debt and Equity Position
As of September 30, 2024, DT Midstream reported the following balance sheet items:
| Item | Amount (millions) |
|---|---|
| Total Assets | $8,587 million |
| Total Liabilities | $4,231 million |
| Total Stockholders' Equity | $4,356 million |
Recent Developments
On July 1, 2024, DT Midstream acquired a clean fuels gathering project for $12 million, with additional contingent payments of up to $34 million based on future milestones. A quarterly dividend of $0.735 per share was declared on October 29, 2024.
Future Outlook
DT Midstream aims to leverage long-term agreements and expand its asset footprint, particularly in the Haynesville System and Washington 10 Storage Complex. The company is focused on achieving net-zero carbon emissions by 2050 and pursuing economically attractive opportunities.
How DT Midstream, Inc. (DTM) Makes Money
Revenue Segments
DT Midstream, Inc. generates revenue primarily through two segments: Pipeline and Gathering. As of September 30, 2024, the operating revenues for these segments are as follows:
| Segment | Three Months Ended September 30, 2024 (millions) | Nine Months Ended September 30, 2024 (millions) | Three Months Ended September 30, 2023 (millions) | Nine Months Ended September 30, 2023 (millions) |
|---|---|---|---|---|
| Pipeline | $112 | $328 | $96 | $271 |
| Gathering | $136 | $404 | $138 | $407 |
| Total Operating Revenues | $248 | $732 | $234 | $678 |
Net Income
Net income attributable to DT Midstream for the same periods is shown below:
| Segment | Three Months Ended September 30, 2024 (millions) | Nine Months Ended September 30, 2024 (millions) | Three Months Ended September 30, 2023 (millions) | Nine Months Ended September 30, 2023 (millions) |
|---|---|---|---|---|
| Pipeline | $71 | $216 | $64 | $185 |
| Gathering | $17 | $65 | $27 | $78 |
| Total Net Income | $88 | $281 | $91 | $263 |
Operating Expenses
Operating expenses for the Pipeline and Gathering segments for the nine months ended September 30, 2024 are outlined below:
| Segment | Operating Expenses (millions) |
|---|---|
| Pipeline | $119 |
| Gathering | $121 |
| Total Operating Expenses | $240 |
Cash Flow from Operating Activities
For the nine months ended September 30, 2024, net cash and cash equivalents from operating activities amounted to:
| Category | Amount (millions) |
|---|---|
| Net Cash from Operating Activities | $611 |
Capital Expenditures
DT Midstream's capital expenditures for the nine months ended September 30, 2024, were:
| Category | Amount (millions) |
|---|---|
| Plant and Equipment Expenditures | $260 |
Debt and Interest Expenses
As of September 30, 2024, the long-term debt and interest expenses are as follows:
| Debt Type | Amount (millions) |
|---|---|
| Long-term Debt | $2,674 |
| Interest Expense (Nine Months) | $117 |
Dividend Payments
DT Midstream declared the following dividends:
| Quarter Ended | Dividend Amount (per share) | Total Dividend Payment (millions) |
|---|---|---|
| March 31, 2024 | $0.735 | $71 |
| June 30, 2024 | $0.735 | $71 |
| September 30, 2024 | $0.735 | $71 |
Future Outlook
DT Midstream expects continued revenue growth driven by long-term contracts, expansion in the Haynesville System, and increasing storage rates. The company anticipates recognizing fixed revenue commitments as follows:
| Period | Expected Revenue (millions) |
|---|---|
| Remainder of 2024 | $35 |
| 2025 | $150 |
| 2026 | $128 |
| 2027 | $97 |
| 2028 | $65 |
| 2029 and thereafter | $229 |
| Total | $704 |
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Article updated on 8 Nov 2024
Resources:
- DT Midstream, Inc. (DTM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DT Midstream, Inc. (DTM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DT Midstream, Inc. (DTM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.