DT Midstream Earnings Slip as Pipeline Results Weaken
Adjusted EBITDA eased to $305 million, interrupting two quarters of sequential growth.
DT Midstream Inc. (DTM), an owner and operator of natural-gas infrastructure, reported lower second-quarter earnings as weaker Pipeline results outweighed growth in Gathering. Net income and operating earnings fell to $112 million, or $1.09 a diluted share, from $130 million, or $1.27 a share, in the first quarter.
The decline marked a reversal from the first quarter, though earnings remained slightly above the fourth-quarter 2024 level of $111 million, or $1.08 a share. Adjusted EBITDA had risen to $308 million in the first quarter from $293 million in the fourth quarter before turning lower.
The longer trajectory remained positive. First-half net income and operating earnings rose 13% to $242 million from $215 million a year earlier, while diluted earnings increased to $2.36 from $2.10. First-half adjusted EBITDA climbed 10% to $613 million.
Gathering supplied the quarter's growth. Segment adjusted EBITDA rose 12% sequentially to $105 million, while Pipeline adjusted EBITDA fell 7% to $200 million. Contributions from equity-method investees also weakened, with their EBITDA declining to $66 million from $78 million.
DT Midstream added long-term contracts for a Haynesville expansion and LEAP Phase 5, together adding 200 MMcf/d and lifting LEAP capacity to 2.3 Bcf/d. A separate Appalachia Gathering agreement supported another 100 MMcf/d expansion.
The company reaffirmed its 2026 adjusted EBITDA guidance of $1.155 billion to $1.225 billion and its early 2027 outlook of $1.225 billion to $1.295 billion. Both ranges were unchanged from those introduced with fourth-quarter results.
DT Midstream kept its quarterly dividend at $0.88 a share after raising it 7% with its fourth-quarter release. Maintenance capital investment more than doubled sequentially to $24 million, and the company commercialized $2 billion of projects during the quarter, adding contracted growth as near-term earnings softened.