J.P. Morgan analyst Jeremy Tonet reduced the price forecast for DT Midstream, Inc. DTM from $115.00 to $109.00 while keeping a Neutral rating.

In February, the company reported fourth-quarter operating EPS of $0.94, surpassing the $0.89 estimate.

The company also raised its 2025 adjusted EBITDA guidance by 18%, now projecting a range of $1.095 billion to $1.155 billion.

The analyst says that 2025 adjusted EBITDA guidance compares with JP Morgan estimates of $1.151 billion and street median consensus of $1.140 billion.

Also, the company provided an early 2026 adjusted EBITDA outlook of $1.155 billion – $1.225 billion vs. JP Morgan estimates of $1.230 million and street median consensus of $1.211 billion.

The analyst notes that along with the results, DTM announced the development of a 300 MMCFD Midwestern Gas Transmission lateral, which will supply AES Indiana's approximately 1 GW gas-fired power plant.

Additionally, the company revealed a 375 MMCFD precedent agreement for a 2,060 MW combined-cycle power plant in West Virginia, slated for completion by FY28, contingent on the plant achieving a final investment decision (FID).

Overall, Tonet writes that DT Midstream benefits from strong operating leverage in two top gas basins, Appalachia and Haynesville, along with significant minimum volume contract (MVC) revenue protection, which covers over 80% of its EBITDA.

As a pure-play natural gas midstream company with exposure to these key regions, DTM offers impressive EBITDA growth potential and a clear path toward reducing leverage.

Investors can gain exposure to the stock via Neuberger Berman Energy Transition & Infrastructure ETFNBET and Alerian Energy Infrastructure ETFENFR.

Price Action: DTM shares are down 2.51% at $98.00 at the last check Wednesday.

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