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 ( DTM ) 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 ETFand Alerian Energy Infrastructure ETF.

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

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