By Enerlead Data | November 12 2025
In a midstream market where most asset swaps blur into balance-sheet reshuffles, DT Midstream’s (DTM) acquisition of the Guardian Pipeline from ONEOK (OKE) stands out as a masterclass in value creation. What ONEOK sold as a “non-core” asset, DT Midstream has turned into one of the most profitable gas-transport expansions in the Midwest.
🛠️ Deal Snapshot
In late 2024, ONEOK divested three FERC-regulated natural-gas pipelines—Guardian, Midwestern, and Viking—for a combined $1.2 billion. Trailing EBITDA across the package was roughly $111 million, implying an 11× multiple at sale. Guardian accounted for a little more than half of that value.
For ONEOK, the sale fit a strategic shift toward liquids—crude, refined products, and NGLs. For DT Midstream, it was the opening move in a larger gas-infrastructure expansion plan.
Appalachian Wells Drilled Market Intelligence is a curated dataset of oil & gas wells drilled in Marcellus/Utica last 12 months. The dataset includes; Account Name, Location Information, Drilling Operation Data and Drilling Rig Info…
🚀 The Guardian Advantage
The Guardian Pipeline originates near Joliet, Illinois, and delivers natural gas deep into Wisconsin, serving as the primary artery for the state’s power and industrial load.
Roughly half of Wisconsin’s natural-gas consumption flows through this line.
After taking ownership, DT Midstream wasted no time. It launched an open season to gauge market interest in a capacity boost—without laying new pipe.
By optimizing compression and looping, DTM committed to a 40% throughput increase, raising capacity to 1.8 Bcf/d.
Utilities jumped at the opportunity. Long-term (20-year) transportation contracts quickly filled the book—driven by:
- New data-center developments needing firm gas supply
- Ongoing coal-to-gas conversions
- Preference for Chicago-hub reliability over legacy systems
💰 Financial Transformation
- Expansion Capex: $890 million
- Incremental EBITDA: $160 million
- Effective Multiple: 6.8× EBITDA (including purchase + expansion cost)
That 6.8× multiple is virtually unheard-of for a FERC-regulated pipeline—especially one underpinned by investment-grade utility contracts with inflation escalators.
DT Midstream essentially converted a “steady earner” into a high-return annuity stretching decades into the future.
🧭 Strategic Contrast: ONEOK vs. DT Midstream
| Category | ONEOK (OKE) | DT Midstream (DTM) |
|---|---|---|
| Strategic Focus | Liquids-heavy, divesting gas transmission | Expanding regulated gas infrastructure |
| View of Guardian | Stable, low-growth, non-core | Under-utilized growth corridor |
| Execution | Sale at ~11× EBITDA | Expansion to 6.8× EBITDA return |
| Outcome | Lost regional leverage | Secured 20-year utility cash flows |
ONEOK’s sale aligned with its liquids pivot, but the move exposed a blind spot.
DT Midstream recognized latent value where others saw stasis—and proved that capacity optimization can rival newbuild economics when market timing and customer demand align.
⚡ Why It Matters
- For investors: DT Midstream adds a low-risk, inflation-linked earnings stream.
- For the Midwest: Guardian’s upgrade secures long-term gas reliability amid industrial growth and rising data-center loads.
- For the industry: The deal underscores how smart compression and looping projects can unlock 30–50% capacity gains at a fraction of new-build cost.
🔍 Enerlead Takeaway
Guardian illustrates the next evolution of midstream strategy:
extracting hidden value from legacy pipes through engineering upgrades, regulatory finesse, and disciplined commercial execution.
In an era where greenfield pipelines face permitting headwinds, DTM’s approach could become the new playbook for growth—turning overlooked steel in the ground into high-yield infrastructure.
