DT Midstream expands interstate footprint via ONEOK acquisition
The company secured a 55% revenue increase for its Viking Gas Transmission unit through a FERC-approved settlement.
DT Midstream (DTM) expanded its interstate pipeline portfolio on December 31, 2024, through the acquisition of Viking Gas Transmission Company (MN, WI, ND), Midwestern Gas Transmission Company (KY, IN, IL, TN), and Guardian Pipeline, L.L.C. (IL, WI) from ONEOK, Inc.. The acquisition adds significant bi-directional capacity across the Midwest and Upper South, including Viking's 674-mile line from the U.S.-Canadian border to Marshfield, Wisconsin, and Midwestern's 402-mile system stretching from Tennessee to Joliet, Illinois.
Rate activity across the new assets diverged by operating company. Viking Gas Transmission saw the most significant gain after FERC approved a settlement in Docket No. RP23-917-000 on July 31, 2024, which increased the unit's annual revenue by approximately 55% compared to 2023 levels. Midwestern Gas Transmission also realized a gain via a September 1, 2024 rate increase under Docket No. RP21-525-005, which raised annual revenue by approximately 2%.
Conversely, Guardian Pipeline faced a revenue contraction following a settlement in Docket No. RP22-725-000. The agreement resulted in a 5% revenue decrease for nine customers in 2023. The downward trend is scheduled to continue with planned further decreases of 10% and 4% through 2027.
Revenue stability for the Viking system is supported by a fully contracted transportation capacity with firm commitments. While firm transportation remains the primary driver, the company recorded $1.70 million in interruptible transportation revenues in 2024, a figure that was immaterial in the prior year.
Operational oversight for the Guardian Pipeline system remained stable, with no known noncompliance with environmental laws or regulations that would have a material adverse effect on operations.
DT Midstream now manages a diversified interstate network that connects Canadian imports and Southern supply to key Midwestern markets, anchored by the Joliet, Illinois hub where both Midwestern and Guardian Pipeline terminate.