DTM - I Missed The Sale On DT Midstream But It's Still A Buy

2024-02-20 14:37:14 ET

Summary

• DT Midstream is an expanding midstream company supporting rapid LNG export expansion.
• After several years of large CAPEX spending, the company has transitioned into a self-funded growth model to preserve the balance sheet.
• Its pipeline and gathering assets in the Marcellus and Haynesville basins will be critical to support future LNG terminals.
• DTM commands a market premium for its growth trajectory, but it is worth the price in my view.

Thesis

I believe DT Midstream, Inc. (DTM) is a snowball on a downhill track, and it's not too late to get on board.

Last week, DTM piqued my interest. I recognized its growth potential, coupled with a modest dividend that had a solid runway to keep growing. On Friday, February 16th, the company reported solid earnings, ahead of schedule with progress on many of its growth projects, and a 7% dividend hike. As one would expect, the stock rose over 5% in response....

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