Latest news with #DTMidstream
Reuters
a day ago
- Business
- Reuters
US energy firms eye new Northeast natgas pipelines, buoyed by Trump and demand outlook
June 30 (Reuters) - U.S. energy companies are eying renewed opportunities to build natural gas pipelines to tap in to Appalachia shale formations in Pennsylvania, Ohio and West Virginia, buoyed by U.S. President Donald Trump's pro-energy policies and expectations that demand for the fuel will rise in coming years. The U.S. is already the world's top gas producer and exporter of liquefied natural gas. While the country helps meet fuel demand around the world, many consumers in the U.S. Northeast do not have access to gas due to a lack of pipeline infrastructure and instead continue to use heating oil in their homes and businesses. The Appalachia shale fields, which cover the Marcellus and Utica formations, have the largest gas reserves in the U.S., but energy companies have limited ability to move more of that fuel to the rest of the country because most existing pipelines are already near full. In addition, companies have found it tough to build new projects in the region due to legal and regulatory pushback from states and local and environmental groups. Output growth in the region, which produces about a third of the nation's gas, has stalled in recent years after some firms lost billions on delayed or canceled pipes. But now, as Trump rolls back regulations to boost domestic energy production, several U.S. firms, including Williams Cos (WMB.N), opens new tab, Boardwalk Pipeline, DT Midstream (DTM.N), opens new tab and EQT (EQT.N), opens new tab, have proposed building or expanding pipelines and other infrastructure in the Northeast. "We are actively evaluating opportunities to expand infrastructure," Amy Rogers, spokeswoman at EQT, the nation's second-biggest gas producer with operations in Appalachia, told Reuters. "Enhancing pipeline capacity is essential to unlocking Appalachian supply," she said. In 2024, the U.S. produced about 103.2 billion cubic feet per day (bcfd) of gas and consumed a record 90.5 bcfd of the fuel, according to U.S. Energy Information Administration data. One billion cubic feet of gas is enough to supply about 5 million U.S. homes for a day. Analysts expect that new LNG export plants and electric generation facilities to power artificial intelligence at data centers will push U.S. power and gas demand to record highs in 2025 and 2026 and beyond. Output from Appalachia has increased every year since at least 2009 when the region produced just 1.7 bcfd of gas. Lack of pipeline capacity, however, has slowed that growth to an average of just 2% a year from 2020 to 2024 versus an average of 15% a year from 2015 to 2019, according to EIA data. Looking forward, output in the region is expected to grow by an average of only 1% a year in 2025 and 2026 - to 36.2 bcfd and 36.6 bcfd, respectively - according to EIA projections. New infrastructure, coupled with growing energy needs in the U.S., could add up to 5 bcfd of new demand for Appalachia gas supplies through 2030, said Jack Weixel, an analyst with consultancy East Daley Analytics. "That is definitely a lot more than anyone was expecting from Appalachia just a mere 12 months ago," he said. Support from the Trump administration has already prompted pipeline operator Williams to begin reviving two canceled projects to transport gas from Pennsylvania: the 0.65 bcfd Constitution Pipeline to New York and the 0.4 bcfd Northeast Supply Enhancement to New Jersey and New York. "The NESE and Constitution projects are essential to address persistent natural gas supply constraints in the Northeast, constraints that have led to higher energy costs for consumers," said a spokesperson for Williams. During the winter of 2024-2025, it cost about twice as much to heat a home with oil than with gas, according to federal energy estimates. More than 80% of the roughly 4.6 million U.S. homes still using heating oil as their primary heating fuel in 2024 were located in the Northeast region. Williams canceled Constitution in 2020 and NESE in 2024 after years of fighting for permits, especially water permits, from state regulators. State environmental regulators in New York and New Jersey did not comment directly on Williams filings to revive the NESE project, which runs through both states. In New York, Millennium Pipeline, meanwhile, said it plans to begin negotiations for binding commitments for a proposed expansion that could add up to 0.5 bcfd of capacity to its existing 2.0 bcfd pipe. High interest from shippers underscored the need for additional pipeline capacity in the region, Millennium said, which anticipates that the expansion, if approved by its owners, could start service by late 2029. Millennium is owned by units of DT Midstream and Canadian energy firm TC Energy ( opens new tab. Meanwhile, EQT and partners want to extend their existing 2.0 bcfd Mountain Valley Pipeline from West Virginia to Virginia into North Carolina with the proposed 0.55 bcfd Southgate expansion project. The $7.85 billion Mountain Valley Pipeline, which entered service in 2024 and whose construction cost was more than twice the amount originally planned, was the last big pipeline to enter service in the Northeast region after years of delays. In Ohio, Boardwalk Pipelines said it is evaluating interest for its proposed Borealis pipeline project, which could create up to 2.0 bcfd of incremental transportation to markets from Ohio to Louisiana. Still, despite Trump's pro-energy policies, some of the same headwinds pipeline projects faced in the past are likely to resurface. Several organizations, including the Sierra Club environmental group, have already filed protests against Williams' NESE with the U.S. Federal Energy Regulatory Commission, which oversees federal permitting of gas pipeline projects. "The Northeast does not need more gas pipelines that pollute our neighborhoods and leave us vulnerable to price spikes from global volatility, especially as gas demand locally is already beginning to wane," Jasmine Vazin, director of the Beyond Dirty Fuels campaign at the Sierra Club, told Reuters in an email. The following table lists the gas pipes in various stages of development in recent years that could move more fuel from the Appalachia region.
Yahoo
05-04-2025
- Business
- Yahoo
DT Midstream (NYSE:DTM) Has More To Do To Multiply In Value Going Forward
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. In light of that, when we looked at DT Midstream (NYSE:DTM) and its ROCE trend, we weren't exactly thrilled. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on DT Midstream is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.051 = US$489m ÷ (US$9.9b - US$426m) (Based on the trailing twelve months to December 2024). Therefore, DT Midstream has an ROCE of 5.1%. In absolute terms, that's a low return and it also under-performs the Oil and Gas industry average of 10%. Check out our latest analysis for DT Midstream Above you can see how the current ROCE for DT Midstream compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for DT Midstream . There are better returns on capital out there than what we're seeing at DT Midstream. The company has employed 117% more capital in the last five years, and the returns on that capital have remained stable at 5.1%. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital. One more thing to note, even though ROCE has remained relatively flat over the last five years, the reduction in current liabilities to 4.3% of total assets, is good to see from a business owner's perspective. Effectively suppliers now fund less of the business, which can lower some elements of risk. As we've seen above, DT Midstream's returns on capital haven't increased but it is reinvesting in the business. Although the market must be expecting these trends to improve because the stock has gained 79% over the last three years. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high. On a separate note, we've found 2 warning signs for DT Midstream you'll probably want to know about. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
DT Midstream Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$981.0m (up 6.4% from FY 2023). Net income: US$354.0m (down 7.8% from FY 2023). Profit margin: 36% (down from 42% in FY 2023). The decrease in margin was driven by higher expenses. EPS: US$3.63 (down from US$3.96 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.1%. Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Oil and Gas industry in the US. Performance of the American Oil and Gas industry. The company's shares are down 7.1% from a week ago. You should learn about the 1 warning sign we've spotted with DT Midstream. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
28-02-2025
- Business
- Yahoo
DT Midstream Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$981.0m (up 6.4% from FY 2023). Net income: US$354.0m (down 7.8% from FY 2023). Profit margin: 36% (down from 42% in FY 2023). The decrease in margin was driven by higher expenses. EPS: US$3.63 (down from US$3.96 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.1%. Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Oil and Gas industry in the US. Performance of the American Oil and Gas industry. The company's shares are down 7.1% from a week ago. You should learn about the 1 warning sign we've spotted with DT Midstream. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
