Filing Flows › DT Midstream (DTM) › Takeover & LBO
Is DT Midstream (DTM) a takeover target?
A leveraged buyout at today's price plus 30% ($161.64 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $81.00 a share (−35% against today's $124.34). Historically 2.3% of companies with its figures were bought within a year (0.46× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $161.64 | today's $124.34 plus 30% |
| × shares | 102.7 million | |
| = Equity value | $16.6B | |
| + Debt refinanced | $3.3B | |
| − Cash | $231M | |
| + Other claims | $140M | preferred stock, minority interests |
| = Enterprise value | $19.8B | 21.2× EBITDA of $933M |
| Fees | $396M | 2% of the price |
| New debt | $5.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $15.1B | 75% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.4B | $1.0B | $393M | $84.6M | $5.0B |
| Year 2 | $1.5B | $1.1B | $386M | $116M | $4.9B |
| Year 3 | $1.6B | $1.1B | $377M | $147M | $4.8B |
| Year 4 | $1.7B | $1.2B | $366M | $175M | $4.6B |
| Year 5 | $1.7B | $1.2B | $353M | $201M | $4.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 17.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $20.8B | |
| − Debt left | $4.4B | |
| = Buyer's equity | $16.4B | |
| Money multiple | 1.09× | on $15.1B put in |
| Buyer's yearly return (IRR) | 1.8% |
Price against return
What the buyer makes at other premiums over today's $124.34; the IRR reaches 20% at $81.00 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $136.77 | 5.7% |
| 20% | $149.21 | 3.6% |
| 30% | $161.64 | 1.8% |
| 40% | $174.08 | 0.1% |
| 50% | $186.51 | −1.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.3B | |
| EBITDA, last 12 months | $933M | 70.0% of revenue |
| Depreciation and amortization | $275M | |
| Capital spending | $405M | |
| Debt | $3.3B | |
| Cash | $231M | |
| Share price | $124.34 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 26% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, DT Midstream would cost about $164.75 a share, $16.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $149.21 | $15.3B |
| Median | 32.5% | $164.75 | $16.9B |
| High end (a quarter paid more) | 51.8% | $188.75 | $19.4B |
The odds, from history
Historically 2.3% of companies with its figures were bought within a year (0.46× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
DT Midstream's latest quarter
DT Midstream, Q3 2026: revenue $336M (+7% year over year), operating margin 48.5%, net earnings $118M, operating cash flow $275M. The chart follows the revenue to costs, profit and cash.
Questions
Is DT Midstream being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy DT Midstream?
A leveraged buyout at today's price plus 30% ($161.64 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $81.00 a share (−35% against today's $124.34).
What would a takeover of DT Midstream cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, DT Midstream would cost about $164.75 a share, $16.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.