DT Midstream Q4 Results Outperforms Expectations, Dividend Raised By 7%

DT Midstream, Inc. DTM reported fourth-quarter fiscal 2023 operating earnings of $121 million, compared to $91 million in prior quarter.

Adjusted EPS of $1.24, up from $0.94 previous quarter, beating the consensus of $0.92. 

Adjusted EBITDA for the quarter was $239 million, up from $236 million in the prior quarter. Pipeline Adjusted EBITDA stood at $156 million (+7.6% Q/Q), and Gathering was at $83 million (-8.8% Q/Q).

The company’s Distributable Cash Flow for the fiscal was $700 million, compared to $647 million a year ago.

Gathering Volume Summary: Haynesville throughput 1.56 (bcf/d), reflecting the impact of producer activity deferrals in the quarter. Northeast throughput 1.53 (bcf/d), with strong seasonal volume ramp on Appalachia Gathering.

Related: DT Midstream Gears Up For Q4 Print; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

“We successfully executed on the largest construction program in our history last year, completing key expansions ahead of schedule and on budget. These projects will deliver strong growth over the next two years,” commented David Slater, President and CEO.

DTM increased dividend by 7% from the fourth quarter of 2023 to $0.735 per share, to be paid on April 15, 2024, to stockholders of record on March 18, 2024

2024 Guidance: DT Midstream currently expects Adjusted EBITDA of $930 million-$980 million, Operating EPS of $3.43-$3.83 and Distributable Cash Flow of $640 million-$700 million.

2025 Early Outlook: The company expects Adjusted EBITDA of $980 million-$1.04 billion.

Price Action: DTM shares are trading higher by 4.04% at $54.55 on the last check Friday.