DT Midstream's Q1 2025: Key Contradictions in Data Center Strategy and Haynesville Production Insights

Data center opportunities and project nature, Haynesville production growth and response to market signals, data center project timing and progress, 2025 CapEx guidance, Haynesville producer activity and price sensitivity are the key contradictions discussed in DT Midstream's latest 2025Q1 earnings call.



Operational and Financial Performance:
- DT Midstream delivered adjusted EBITDA of $280 million in Q1 2025, representing a $45 million increase from the prior quarter.
- Growth was driven by a $39 million increase in the Pipeline segment and a $6 million increase in the Gathering segment, reflecting contributions from acquired assets and growing volumes.

Volume Trends in Gathering:
- Gathering volumes across the Haynesville increased to an average of 1.67 Bcf per day, driven by new volumes and returning offline production.
- This trend is primarily due to increased activity from both public and private producers responding to price signals.

Commercial and Growth Projects:
- Construction is underway on the first of several growth projects, such as the Midwestern Gas Transmission Power Plant Lateral.
- The company is optimistic about the growth and modernization opportunities provided by recently acquired assets, with anticipated synergies and expanded capacity.

Market Dynamics and Long-term outlook:
- Despite market volatility and tariff uncertainties, the company reaffirmed its 2025 and 2026 adjusted EBITDA guidance, reflecting confidence in its durable contracts and minimal commodity exposure.
- The long-term outlook for natural gas infrastructure remains strong, driven by increased demand from LNG exports, data centers, and industrial onshoring.