DT Midstream Raises 2026 EBITDA Outlook on Q3 Results

DT Midstream (NYSE: DTM) raised the lower end of its 2026 adjusted EBITDA guidance after reporting third-quarter net income attributable to the company of $118 million and adjusted EBITDA of $301 million. The natural gas infrastructure operator also advanced more than $400 million of organic projects to final investment decision, bringing the committed portion of its $3.4 billion project backlog to about 70%.

The company now expects 2026 adjusted EBITDA of $1.185 billion to $1.225 billion, compared with its previous range of $1.155 billion to $1.225 billion. The updated midpoint represents 7% growth from the midpoint of DT Midstream’s original prior-year adjusted EBITDA guidance, according to the presentation.

DT Midstream also raised the lower end of its distributable cash flow outlook to a range of $860 million to $890 million from $830 million to $890 million. Its early 2027 adjusted EBITDA outlook was reaffirmed at $1.225 billion to $1.295 billion.

Pipeline gains offset lower gathering volumes

Third-quarter adjusted EBITDA slipped from $305 million in the second quarter, as higher pipeline earnings were offset by weaker gathering results. Pipeline adjusted EBITDA increased to $202 million from $200 million, supported by higher revenue from joint-venture pipelines. Gathering adjusted EBITDA declined to $99 million from $105 million because of lower Northeast volumes.

Operating earnings, a non-GAAP measure, rose sequentially to $118 million, or $1.16 per diluted share, from $112 million, or $1.09 per share. The presentation attributed the comparison partly to a higher one-time income tax expense in the second quarter. No adjustments separated reported net income from operating earnings in either period.

Distributable cash flow increased to $270 million from $174 million, with the company citing cash interest expense recorded in the second quarter as a key factor in the sequential change.

For the first nine months of 2026, net income attributable to DT Midstream totaled $360 million, up from $330 million a year earlier. Adjusted EBITDA increased to $914 million from $845 million, while distributable cash flow rose to $718 million from $669 million.

Gathering throughput remained above year-earlier levels in both key operating regions. Haynesville throughput averaged 2.17 billion cubic feet per day in the third quarter, 6% higher than a year earlier, while Northeast throughput increased 15% to 1.25 billion cubic feet per day. However, Northeast volumes declined from 1.38 billion cubic feet per day in the second quarter. DT Midstream said producer curtailments are expected to result in lower fourth-quarter volumes compared with the third quarter.

New projects move into execution

DT Midstream reached final investment decision on the Midwestern MIST S1 expansion, a related pipeline lateral serving a new Indiana power plant, and the second phase of its Guardian modernization program. The decisions increased committed projects to approximately $2.4 billion through 2030, or about 70% of the company’s probability-weighted $3.4 billion backlog.

The MIST S1 project will add about 300 million cubic feet per day of capacity through compression and pipeline looping. It is expected to enter service in the fourth quarter of 2029 and is supported by 20-year precedent agreements with investment-grade utilities.

The associated lateral will supply a new 900-megawatt power plant in Indiana under a 20-year, demand-based contract with a utility customer. Its expected in-service date is in the first half of 2028. Combined capital investment for MIST S1 and the lateral is estimated at $275 million to $325 million, including allowance for funds used during construction.

Guardian Phase 2 will require an estimated $130 million to $150 million and is scheduled to enter service in the third quarter of 2030. The company said the investment will be recovered through pipeline rate cases. Separately, federal regulators approved a rate-case settlement covering the Guardian Phase 1 modernization investment.

DT Midstream said its Guardian G3 expansion remains on track for a fourth-quarter 2028 in-service date, with a Federal Energy Regulatory Commission certificate order scheduled for the first half of 2027. Other projects in execution, including expansions of Millennium, Viking, Appalachia Gathering, Haynesville and Vector, remain on schedule and on budget, according to the presentation.

Capital guidance reduced on efficiency

The company lowered its 2026 total capital investment forecast to $450 million to $510 million from $490 million to $570 million. Growth capital guidance was reduced by more than 10% to $375 million to $425 million from $420 million to $480 million, which management attributed to capital efficiency. Maintenance capital is now expected to range from $75 million to $85 million.

DT Midstream expects approximately $1 billion of committed investment across 2026 and 2027, including about $610 million of committed capital in 2027 as newly approved projects advance.

The outlook remains subject to project execution, regulatory approvals, customer production and demand, financing conditions and infrastructure constraints. Additional uncertainties cited by the company include inflation, interest rates, tariffs, supply-chain disruptions, cybersecurity threats, environmental and pipeline regulation, commodity-price changes and potential interruptions at its own or third-party facilities. Adjusted EBITDA, operating earnings and distributable cash flow are non-GAAP measures and may not be comparable with similarly named metrics used by other companies.