DT Midstream Reports 5% Operating Revenue Growth, Net Income Decline in Q3 2024

DT Midstream, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable growth in operating revenues but a slight decline in net income for the third quarter compared to the same period in 2023.

For the third quarter of 2024, operating revenues reached $248 million, an increase from $234 million in the same quarter of 2023. However, operating income slightly decreased to $122 million from $124 million year-over-year. Income before income taxes also fell to $121 million from $127 million, while net income was reported at $91 million, down from $94 million in the prior year. Net income attributable to DT Midstream for the quarter was $88 million, compared to $91 million in 2023. Diluted earnings per share decreased to $0.90 from $0.94.

In contrast, for the nine months ended September 30, 2024, the company reported operating revenues of $732 million, up from $678 million in the same period of 2023. Operating income increased to $376 million from $351 million, and net income rose to $291 million from $272 million. Net income attributable to DT Midstream for the nine-month period was $281 million, compared to $263 million in 2023, with diluted earnings per share improving to $2.87 from $2.70.

The Pipeline segment was a significant contributor to revenue growth, with operating revenues for the third quarter increasing to $112 million from $96 million in 2023, and for the nine months, revenues rose to $328 million from $271 million. The Gathering segment, however, saw a decline in revenues for the third quarter, reporting $136 million compared to $138 million in 2023, and for the nine months, revenues decreased to $404 million from $407 million.

Strategically, DT Midstream made a $12 million acquisition of a clean fuels gathering project in July 2024, which is expected to generate carbon offsets and federal income tax credits. The company also repaid $399 million of long-term debt during the nine months, resulting in a loss on extinguishment of debt of $4 million.

As of September 30, 2024, total assets decreased to $8,587 million from $8,982 million at the end of 2023, while total liabilities also fell to $4,231 million from $4,702 million. Total stockholders' equity increased to $4,356 million from $4,280 million. Cash and cash equivalents rose to $77 million from $30 million year-over-year.

Overall, DT Midstream's financial performance reflects a solid revenue increase driven by its Pipeline segment, despite challenges in net income and the Gathering segment. The company continues to focus on strategic acquisitions and debt management to enhance its financial position.