The natural gas infrastructure provider reached investment-grade status across major credit agencies while expanding its organic project backlog to $3.4 billion. Full-year results were supported by the integration of Midwest pipeline assets and record gathering volumes in the Haynesville and Northeast basins.
DT Midstream, Inc. (NYSE: DTM) reported full-year 2025 Adjusted EBITDA of $1.138 billion, representing a 17% increase over the $969 million recorded in 2024. The company achieved investment-grade ratings from all three major agencies during the year and reported a total shareholder return of approximately 280% since its spin-off in 2021. Growth was primarily driven by the pipeline segment, which now accounts for 70% of the company’s business mix.
Midwest Acquisition and Major Pipeline Investments Drive 2025 Momentum
The company integrated the Midwest Pipeline Acquisition and placed the LEAP Phase 4 expansion into service ahead of schedule during 2025. Management also announced that the organic project backlog expanded by 50% to $3.4 billion, with roughly 75% of these opportunities concentrated in the pipeline segment. Recent capital allocations include reaching a final investment decision on the Viking Pipeline expansion and Phase 2 of the Interstate Pipelines Modernization project. Furthermore, the company closed a binding open season for the Vector Pipeline expansion in January 2026, targeting an in-service date for late 2028.
Strong Financial Performance Driven by Pipeline Growth and Cash Flow Expansion
Full-year operating earnings rose 18% to $441 million, or $4.30 per diluted share, compared to $375 million in the prior year. Distributable cash flow reached $831 million for 2025, a 14% year-over-year increase, supporting a dividend coverage ratio of approximately 2.6x. Segment results showed the pipeline division’s Adjusted EBITDA grew 27% to $786 million, while the gathering segment remained relatively flat at $352 million. For the fourth quarter of 2025, Adjusted EBITDA was $293 million, up from $288 million in the third quarter, supported by higher revenue from pipeline joint ventures and the LEAP system.
Driving Long-Term Value Through Disciplined Capital Deployment
Management established 2026 Adjusted EBITDA guidance in a range of $1.155 billion to $1.225 billion, with an early outlook for 2027 between $1.225 billion and $1.295 billion. The 2026 capital plan includes growth investments of $420 million to $480 million, largely committed to projects already under construction. The company’s long-term strategy focuses on demand-based contracts, which currently comprise about 95% of its revenue, with an average contract tenor of eight years. Future growth is expected to be driven by the “G3” Guardian Pipeline expansion, which involves a total capital investment of $850 million to $930 million to serve upper Midwest markets.
DT Midstream Capitalizes on Market Volatility and Rising Gas Infrastructure Demand
The company’s performance occurred during a period of significant market volatility, with January 2026 peak natural gas prices reaching $179.17/MMBtu in New England and $65.65/MMBtu in Chicago. Market signals indicate accelerating demand for natural gas infrastructure driven by roughly 35 GW of forecasted coal plant retirements through 2040 and approximately 50 GW of announced data center and large-load utility opportunities. DT Midstream’s Haynesville system is positioned to serve this growing demand, with direct connections to Gulf Coast LNG terminals where export capacity is projected to increase by 14 Bcf/d by 2030.