DT Midstream Q2 net income slips sequentially; reaffirms 2026 earnings outlook

Overview

• US natural gas pipeline operator reported Q2 net income of $112 mln and adjusted EBITDA of $305 mln

• Company reaffirmed 2026 adjusted EBITDA guidance and highlighted progress on organic growth projects

• Board declared a $0.88 per share dividend, payable October 15, 2026

Outlook

• DT Midstream reaffirms 2026 Adjusted EBITDA guidance of $1.155 bln to $1.225 bln

• Company sees 2027 Adjusted EBITDA early outlook range of $1.225 bln to $1.295 bln

• DT Midstream says business is progressing in line with its full-year plan

Result Drivers

• ORGANIC GROWTH PROJECTS - Co said Q2 results were supported by progress on its organic growth backlog, with $2 bln of projects commercialized

• CONTRACTED EXPANSION - New long-term contracts for Haynesville system expansion, including Phase 5 of LEAP, added 200 MMcf/d of capacity

• INFRASTRUCTURE MODERNIZATION - Final investment decision reached on first phase of Viking Gas Transmission modernization

Company press release: ID:nGNX8r1f3s

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for DT Midstream Inc is $161.50, about 18.8% above its July 29 closing price of $135.95

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads

• July 29 - Antero Midstream Q2 revenue slightly beats estimates, adjusted EBITDA misses

• July 30 - Enterprise Products Q2 revenue beats estimates on record pipeline, terminal volumes

• July 29 - Shell, Phillips 66 weigh sale of stakes in $3.5 billion US pipeline Explorer, sources say

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)