Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 4 of last 7 quarters
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DT Midstream's results underscore the accelerating demand for natural gas infrastructure driven by AI data centers and power generation. The company's record Haynesville volumes and new NEXUS interconnects for data center power plants highlight the critical role of gas pipelines in supporting the AI buildout. Management's confidence in future expansions (MIST, Vector, Guardian G4) suggests sustained midstream investment as data center load grows.
DT Midstream reported Q2 adjusted EBITDA of $305M, down $3M sequentially, with Pipeline segment down $14M on seasonality and Gathering up $11M on Blue Union volumes. The company reached FID on ~$300M of new projects, including a Haynesville/LEAP expansion and Viking modernization, and executed a new gathering agreement in Appalachia plus a NEXUS interconnect for a data center power plant. Haynesville volumes hit a record 2.2 Bcf/d. Committed capital for 2026/2027 increased to ~$425M and ~$560M, respectively.
Management reaffirmed full-year 2026 adjusted EBITDA guidance and 2027 early outlook, expressing confidence in the plan. They highlighted a robust organic growth pipeline, with 60% of the $3.4B backlog now commercialized, and noted continued strong demand from LNG, power generation, and data centers. New FID projects include a Haynesville/LEAP expansion (200 MMcf/d, in service H2 2028) and Viking modernization (Q4 2028). They are advancing MIST (likely phased, comparable to G3 in size/scale) and Vector 2030 expansions, with binding agreements in progress. Management sees large-scale new pipeline projects as a multi-year opportunity, with MIST first phase potentially in service as early as end of 2029, and expects to maintain market share in future utility-driven expansions like Guardian G4.
“The organization is firing on all cylinders, giving us confidence in our full year plan and the future.”
on Overall performance
“We're successfully converting strong demand from LNG, power generation and data center development into new commercial opportunities and organic growth across our footprint.”
on Demand conversion
“The market environment continues to reinforce the critical role of natural gas infrastructure with both domestic and global demand growth highlighting the importance of reliable, secure and affordable energy supply.”
on Market fundamentals
Would you elaborate on the commercialization progress and process for MIST at this point, specifically on the size and scope of the phasing approach and how you see the competitive landscape evolving over the next few months?
Management noted MIST is likely phased (southbound and northbound), with first phase potentially in service as early as end of 2029, but size/scope not yet disclosed. They are working on binding precedent agreements and remain encouraged by demand. They compared MIST to G3 in size/scale and highlighted Midwestern's supply optionality (Vector, Alliance, REX, Texas Gas, Tennessee Gas) as a key advantage.
If Enbridge's project Beacon to expand Algonquin into New England moves forward, does that materially increase the need for Millennium Pro or maybe another third-party pipeline option that sources gas from Appalachia?
David Slater confirmed Beacon sources supply from Millennium at Ramapo, so the two projects are complementary. As Beacon commercializes, it will drive incremental opportunity on Millennium.
I wanted to start with '27 CapEx quickly. The slide seem to point to maybe a step change there. I realize no numbers are involved, but it seems like a nice gap up. So I'm curious what's changed since your last update? How much of that is an acceleration of projects into '27 versus maybe new opportunities you're potentially seeking here?
David Slater explained the increase reflects the projects FID-ed this quarter and the portion of their capital falling in 2026 and 2027, not new opportunities.