DT Midstream's Q4 2024: Contradictions in Data Center Projects, Haynesville Growth, and Producer Recovery

These are the key contradictions discussed in DT Midstream's latest 2024 Q4 earnings call, specifically including: Data Center Projects, Haynesville Production Growth, and Producer Production Recovery Expectations:



Strong Financial Performance:
- DT Midstream reported an adjusted EBITDA of $969 million for 2024, exceeding its increased guidance and marking another record high year, extending a track record of 10% compounded annual growth since its 2021 spin-off.
- The growth was driven by solid execution of organic growth projects and the integration of the recently acquired Midwest pipeline assets.

Midwest Pipeline Acquisition and Expansion:
- The acquisition from ONEOK expanded DT Midstream's FERC interstate natural gas pipeline network, with an increased project backlog of approximately $1 billion, totaling $2.3 billion over the 2025 to 2029 period.
- The addition of these assets is expected to support a 5% to 7% long-term organic growth rate, with pipeline projects comprising approximately 70% of the total opportunity set.

Gas Market Recovery and Demand Growth:
- DT Midstream observed strong structural demand signals across its assets, driven by cold weather rebalancing the North American market, strengthening natural gas prices, and record withdrawals from storage facilities.
- This recovery is supported by increased LNG terminal capacity, power demand growth expectations, and a shift in public and political sentiment about the importance of natural gas in the American economy.

New Power Generation Projects:
- The company announced two new projects to serve utility-scale power generation, with expected demand growth in this sector, including a lateral for Midwestern gas transmission and a 2,060-megawatt combined cycle gas turbine power plant in West Virginia.
- These projects are part of DT Midstream's robust opportunity backlog and are anticipated to provide long-term firm service contracts, supporting its strategic focus on high-quality growth.