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    DTM
    Earnings call· Mar 2026(Q1 FY26)

    DT Midstream Q1 FY26 earnings call DTM

    Apr 30, 2026 Source

    Executive summary

    DT Midstream Q1 FY26 — Strong Project Backlog and Strategic Expansions Drive Confidence

    DT Midstream delivered a strong Q1 FY26, exceeding expectations due to robust demand and cold weather, reinforcing confidence in its full-year outlook. The company is actively advancing its substantial $3.4 billion project backlog, sanctioning new pipeline expansions and securing long-term contracts, particularly in the Midwest and Northeast, driven by growing power generation and data center demand. Management emphasizes its strategic asset footprint and strong balance sheet to capitalize on these opportunities, while remaining patient on projects requiring specific regulatory support.

    Highlights

    5

    • Adjusted EBITDA reached $308 million in Q1 FY26, a $15 million increase from the prior quarter, driven by strong demand and cold winter.

    • Approved investment in two new pipeline projects: Vector mainline expansion (400 MMcf/d capacity) and Millennium R2R (70 MMcf/d capacity), both backed by long-term contracts.

    • Successfully recontracted approximately 30% of Midwestern Pipeline's capacity with term extensions ranging from 5 to 25 years.

    • Closed oversubscribed nonbinding open seasons for Midwestern (up to 1.5 Bcf/d expansion) and Vector (300-500 MMcf/d expansion), indicating strong market demand.

    • Placed the Midwestern gas transmission power plant lateral (serving AES Indiana) in service on time and under budget, with commercial operations starting in Q2 FY26.

    Concerns

    2

    • Q2 FY26 adjusted EBITDA is expected to be lower than Q1 FY26 due to seasonality across interstate pipelines, a rate step-down on Guardian Pipeline, and typical planned maintenance.

    • Millennium Pro project still requires New York-specific and regional governmental support to move forward, despite clear demand need.

    Guidance & targets

    4
    CategoryTargetConfidence
    Adjusted EBITDA
    Reaffirmed 2026 guidance range
    high materiality
    High
    Adjusted EBITDA
    Reaffirmed 2027 early outlook
    high materiality
    High
    Dividend growth
    Grow in line with adjusted EBITDA
    medium materiality
    High
    Q2 FY26 Adjusted EBITDA
    In line with full-year guidance, but lower than Q1 FY26
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Pipeline
    Driven by seasonally higher EBITDA from our joint venture and interstate pipelines and higher revenue on Stonewall and LEAP.
    Seasonally higher EBITDA from joint venture and interstate pipelinesHigher revenue on Stonewall and LEAP
    		———$14 million higher
    Gathering
    Reflecting higher volumes on Blue Union and Appalachia gathering.
    Higher volumes on Blue Union and Appalachia gathering
    		———$1 million greater

    Operational metrics

    10
    Adjusted EBITDA
    $308 millionup $15 million from prior quarter
    Q1 FY26

    Fueled by strong demand and cold winter.

    Growth capital investment
    $72 millionin line with plan
    Q1 FY26

    Expected to ramp towards the second half of the year.

    Haynesville gathering volumes
    2.09 Bcf per dayincreased from Q4
    Q1 FY26

    Driven by new volumes and recovery from upstream maintenance completed in Q4.

    Northeast gathering volumes
    1.42 Bcf per dayincreased from Q4
    Q1 FY26

    Driven primarily by the Stonewall Mountain Valley pipeline expansion placed into service in early February.

    Dividend per share
    $0.88unchanged from prior quarter
    Q1 FY26

    Board of Directors approved.

    Committed capital
    ~$400 millionincreased
    FY26

    Increased to reflect new investments in Vector 2028 and Millennium R2R.

    Committed capital
    ~$440 millionincreased
    FY27

    Increased to reflect new investments in Vector 2028 and Millennium R2R.

    LEAP pipeline capacity
    2.1 Bcf per dayrunning full at design capacity
    Q1 FY26

    Has the ability to expand to 4 Bcf per day.

    Power generation load attached to Midwestern
    565 million
    Last 12 months

    Material amount of new load.

    NEXUS interconnect capacity
    250 million
    Q1 FY26

    Provides supply for behind-the-meter natural gas-fired power generation facility.

    Industry KPIs

    6
    MetricValueDetails
    Pipeline throughput storage2.1 Bcf per dayBcf/d
    Sanctioned expansion backlog$3.4 billionUSD
    Basin level production volume2.09 Bcf per dayBcf/d
    FCF shareholder distributions$0.88USD per share
    Take or pay contract structure30%%
    Weather event volume earnings impactStrong Q1 FY26 results

    Deals & partnerships

    4
    Investment-grade utility customersLong-term contracts for pipeline capacity expansion20-year

    Anchored by investment-grade utility customers under 20-year negotiated rate contracts with a Q4 2028 expected in service.

    Two utilities and an existing power plantLong-term contracts for pipeline capacitylong-term

    Supported by long-term contracts with two utilities and an existing power plant for 70 MMcf/d of capacity and is expected to be fully in service in Q1 2027.

    Utility-scale power development (900-megawatt power plant developer)Agreement to build a pipeline lateral to serve a new power plant20-year

    Agreement to build a pipeline lateral to serve a new utility-scale power development located just off Midwestern pipeline in Indiana, where the developer plans to construct a 900-megawatt power plant. Expected to serve under a 20-year demand-based contract for approximately 265 MMcf/d of capacity. Lateral in-service date is in the first half of 2028.

    Data center in OhioCommercialized new interconnect to provide supply for behind-the-meter natural gas-fired power generation facility

    Commercialized a new interconnect on NEXUS, which will have a capacity of 250 MMcf/d and will provide supply for a behind-the-meter natural gas-fired power generation facility to power a new data center in Ohio.

    Capital programs

    4
    Vector Pipeline mainline expansionapproved investment$80 million to $100 million

    Benefit: Approximately 400 million cubic feet per day

    Anchored by investment-grade utility customers under 20-year negotiated rate contracts.

    Millennium R2R projectapproved investment

    Benefit: 70 million cubic feet per day

    Supported by long-term contracts with two utilities and an existing power plant. Will be completed under existing regulatory authorization.

    Midwestern Pipeline lateral for 900-MW power plantagreement to build, subject to customer FID

    Benefit: Approximately 265 million cubic feet per day

    To serve a new utility-scale power development in Indiana. Subject to customer reaching FID in 2026.

    Midwestern gas transmission power plant lateral (AES Indiana)placed in service

    Placed in service on time and under budget, with commercial operations expected to begin in Q2 this year.

    Risks & headwinds

    5
    Seasonality and planned maintenanceQ2 FY26

    Q2 FY26 adjusted EBITDA expected to be lower than Q1 FY26

    Mitigation: Factored into full-year guidance; company remains confident in outlook.

    Guardian Pipeline rate step-downQ2 FY26

    Rate step-down on Guardian Pipeline

    Mitigation: Baked in from the last rate case; factored into full-year guidance.

    Geopolitical developments and market instabilityQ1 FY26 and ongoing

    Contributed to broader energy market instability

    Mitigation: Highlights value of U.S. LNG as stable supply source, favoring increased LNG exports and expansion opportunities for Haynesville system.

    Commodity price volatility (natural gas)Q1 FY26 (past); Q3 FY26 (potential)

    Extreme prices across the country in Q1 FY26; producer recalibrating their production in Q3 if short-term weather doesn't materialize.

    Mitigation: Commercial team maximized opportunities during Q1 volatility; company is mindful of potential Q3 recalibration and factors it into guidance.

    Regulatory and governmental hurdles for new projectsOngoing

    Millennium Pro project requires New York-specific support and regional governmental support or lack of opposition.

    Mitigation: Company will be very careful and patient with that particular project, waiting for critical ingredients to materialize.

    What to watch in Q2 FY26

    4

    Midwestern Pipeline lateral FID for 900-MW power plant

    2026
    CurrentSubject to customer reaching FID
    TargetCustomer FID occurs

    Why it matters

    This project represents a significant new demand source (265 MMcf/d) for Midwestern, and its FID is a key milestone for future growth.

    This project is subject to a customer reaching FID in the power plant, which we expect to occur in 2026.

    Q&A highlights

    6

    Seeking more detail on MIST's FID progress, size, capital scope, and phasing (one big expansion vs. phases).

    David Slater stated strong market interest, especially from power generation, with 565 MMcf/d of power generation load attached to Midwestern in the last 12 months. Chris Zona added that they are in the early stages of optimizing pipeline and facility design based on customer requests, aiming for binding commitments in the next few months. They are addressing needs for the '29, '30 timeframe.

    “Really strong market interest, very consistent with our thesis, our fundamentals thesis that we've been sharing with the investors.”

    asked by Michael Blum · answered by David Slater

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Project Backlog and New Investments

    DT Midstream is actively advancing its $3.4 billion project backlog, with two new projects approved: a Vector Pipeline mainline expansion adding 400 MMcf/d capacity by Q4 2028, and the Millennium R2R project adding 70 MMcf/d by Q1 2027. These investments are anchored by long-term contracts with investment-grade utility customers, serving growing demand in the Upper Midwest and New York/New England markets. The company also secured a new lateral to serve a 900-megawatt power plant off Midwestern Pipeline, contingent on customer FID in 2026, with an expected in-service date in H1 2028.

    02

    Strong Market Demand and Oversubscribed Open Seasons

    The company experienced significant market interest, with nonbinding open seasons for both Midwestern and Vector pipelines being oversubscribed. Midwestern's expansion could increase capacity by up to 1.5 Bcf/d, while Vector's 2030 expansion targets 300-500 MMcf/d westbound capacity into Chicago. These results reinforce the strong fundamentals driven by power demand growth, particularly from data centers and large load customers in the Midwest and Northeast.

    03

    Data Center and Power Generation Load Growth

    DT Midstream highlights the rapid growth in power demand, especially from data centers, with utilities converting opportunities into signed load faster than anticipated. The company has attached 565 MMcf/d of power generation load to Midwestern in the last 12 months and commercialized a new 250 MMcf/d NEXUS interconnect to power a data center in Ohio. Management notes that these developments are framed to ensure affordability for retail customers, addressing local community concerns.

    04

    Haynesville and U.S. LNG Export Opportunities

    Geopolitical events have underscored the value of U.S. LNG as a stable supply source, favoring increased exports from the U.S. Gulf Coast. DT Midstream's LEAP pipeline, currently running at its design capacity of 2.1 Bcf/d, is strategically positioned to serve this demand and has the ability to expand to 4 Bcf/d. The company is seeing renewed interest and active commercial dialogues in the Haynesville basin, driven by the strong fundamentals for LNG.

    05

    Balance Sheet Strength and Capital Allocation

    The company maintains a strong, investment-grade balance sheet with significant dry powder to fund its growth agenda. Management emphasized that the balance sheet is not a constraint, and projects with investment-grade customers and 20-year demand-based contracts could attract additional capital if needed. Moody's recently increased the off-balance sheet threshold to 4.25x, providing further headroom. The company also recontracted 30% of Midwestern's capacity for 5-25 years, demonstrating durability and value.

    06

    Millennium Pro and Regulatory Patience

    While the Millennium R2R project was approved, the larger Millennium Pro project requires specific support from New York and regional governments, or at least a lack of opposition, before capital deployment. Management acknowledges the clear demand need in the region due to infrastructure constraints but emphasizes a cautious and patient approach given the regulatory backdrop.

    AI-generated summary of the company’s earnings call. Not investment advice.