In a recent article, we highlighted the top 15 small-cap energy stocks that hedge funds are buying, including DT Midstream Inc. (NYSE:DTM). Today, we delve deeper into DT Midstream Inc.’s position in the energy sector and compare it to other small-cap energy stocks.
On April 12, Bill Perkins, CEO of Skylar Capital Management, discussed the challenges facing the energy sector on CNBC’s ‘Closing Bell Overtime.’ He emphasized how trade policies impact sentiment in the energy landscape, affecting natural gas, energy stocks, bonds, and related assets. Perkins noted the uncertainty surrounding these policies and questioned whether tariffs are a temporary measure. He also highlighted the potential role of LNG exports as a diplomatic tool in future trade negotiations, given the strong fundamentals of natural gas at the time.
However, Perkins acknowledged that macroeconomic concerns about a global slowdown overshadowed these fundamentals, leading to a drop in prices for crude oil and natural gas. This price pressure could impact production levels, particularly in regions like the Permian Basin, where WTI prices have reached a threshold that may deter further investment in drilling activities.
Looking ahead, Perkins predicted that oil and gas executives would adopt a cautious approach in response to the unpredictable global macro environment, allowing market signals to guide their decisions on drilling programs.
DT Midstream Inc., with a market capitalization of $10.03 billion and 40 hedge fund holders, provides integrated natural gas services in the US. The company operates in two segments: Pipeline and Gathering, serving a diverse range of customers. In 2024, the company reported record-high adjusted EBITDA, driven by new expansions and higher storage revenue. The acquisition of Midwest pipeline (One Oak) has further expanded its FERC interstate natural gas pipeline network, contributing to a robust project backlog for the coming years.
Ranked 8th on the list of small-cap energy stocks hedge funds are buying, DT Midstream Inc. shows growth potential. However, our focus remains on AI stocks, which have demonstrated high returns in a shorter timeframe. For investors seeking promising AI stocks, check out our report on the cheapest AI stock that has outperformed popular AI stocks since the beginning of 2025.
For more insights on the best AI stocks and investment opportunities, explore our articles on the 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article was originally published on Insider Monkey.
