DTM — DT Midstream, Inc.

Summary of DTM Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Adjusted EBITDA: $288 million for Q3 2025, an increase of $11 million from Q2 2025.
• Year-to-Date Performance: Enabled an increase in the midpoint of 2025 adjusted EBITDA guidance to $1.13 billion, an 18% increase from the previous year.
• Distributable Cash Flow Guidance: Raised to $800 million - $830 million, reflecting a $45 million increase due to lower maintenance capital, interest, and cash taxes.
• Growth Capital Guidance: Reduced to $385 million - $415 million, indicating capital efficiency and project timing.
• Dividend: The Board approved a quarterly dividend of $0.82 per share, maintaining a growth target of 5% to 7% annually.

2. Strategic Updates and Business Highlights

• Expansion Projects:
  • Guardian Pipeline: FID reached on the G3+ expansion, increasing capacity by 537 million cubic feet per day, backed by long-term contracts with investment-grade utilities.
  • LEAP Phase 4: Completed early and on budget, increasing capacity from 1.9 to 2.1 Bcf per day, with contracts starting in Q1 2026.
  • Clean Fuels Gathering Project: Initial volumes ramping as planned.
• Market Positioning: Positive outlook on natural gas demand growth driven by LNG and industrial needs, particularly in Louisiana and the Haynesville region.
• Regulatory Environment: Recent Senate confirmations of FERC members seen as a positive for permitting processes.

3. Forward Guidance and Outlook

• 2025 Guidance: Adjusted EBITDA range narrowed to $1.115 billion - $1.145 billion.
• 2026 Early Outlook: Reaffirmed, with formal guidance to be provided at year-end.
• Capital Commitments: Increased to $280 million for 2026, reflecting the upsized Guardian expansion.

4. Bad News, Challenges, or Points of Concern

• Louisiana CCS Project: Remains pre-FID due to a moratorium on new applications by the Louisiana Department, creating uncertainty in the timeline for reaching FID.
• Regulatory Delays: The moratorium on new applications could impact future project timelines.
• Market Competition: Increased competition in the Louisiana and Midwest regions, with multiple pipelines vying for the same demand, necessitating a focus on maintaining market share.

5. Notable Q&A Insights

• Market Demand: Strong demand growth in Louisiana driven by data centers and LNG, with DTM positioned to capture a significant share.
• Haynesville Volumes: Record throughput achieved, with expectations to maintain similar volumes in Q4 2025 due to producer responsiveness to demand signals.
• Midwestern Pipeline Opportunities: Discussions around potential expansions and connections to both Guardian and other utilities, indicating a strategic focus on enhancing connectivity and market reach.
• Behind-the-Meter Solutions: DTM is open to exploring behind-the-meter opportunities but will focus primarily on core pipeline business.
• Future Dividend Growth: Growth closer to 7% would depend on exceeding current EBITDA growth expectations, with a commitment to maintaining strong coverage ratios.

Overall, DTM reported strong financial performance in Q3 2025, with strategic expansions and positive market conditions, while facing regulatory challenges and competitive pressures in key regions.