DTM

DT Midstream is a high-quality, fee-based natural gas gathering, transmission and storage business spanning the Midwest, Canada, Northeast and Gulf Coast. FY2025 was a standout: revenue grew 26.7% to $1.24B, operating income rose 25.6% to $614M (a 49.4% operating margin), and net income climbed 24.6% to $441M (a 35.5% net margin). Diluted EPS rose 19.4% to $4.30. The model is structurally stable — the 10-K notes the majority of customer contracts are firm-service with fixed demand charges or minimum-volume commitments, which insulate revenue from gas-price swings and produce predictable cash flow.

The business is positioned for the secular rise in U.S. gas demand (LNG export and data-center/power load), and the balance sheet supports growth: long-term debt of $3.32B was essentially flat year over year (+0.2%) at a moderate 1.10x liabilities/equity, while operating cash flow grew 13.6% to $867M. Management is funding a rising capital program ($426M, +21.7%) and a growing dividend ($324M, +15.7%) — the income profile is a core part of the thesis given the modest 9.3% ROE.