ONEOK Gasoline Volumes Rise 10% in Q3
Daniel Rodriguez Huerta
DTN Refined Fuels Market Reporter
CALGARY, CANADA (DTN) -- ONEOK's gasoline volumes rose 10% in the third
quarter of 2026 from the same quarter the prior year, the midstream operator
said Wednesday (10/28) on its earnings call. Distillate volumes rose 2%, and
total refined products volumes rose 6%.
Solid demand and high refinery utilization across its system supported the
gains, Chief Commercial Officer Sheridan Swords said. ONEOK expects refined
products volumes to end the year near the top of its original guidance range.
ONEOK's pipeline connections and marketing business let it take advantage of
regional price volatility created by wide Mid-Continent to Gulf Coast basis
differentials and low inventories, Swords said. Mid-year tariff adjustments
also helped.
Export demand stayed strong. Refined products volumes at Galena Park, Texas,
rose about 15% from the third quarter of 2025.
ONEOK executives also reported:
The company entered the fall about 75% hedged on liquids blending, and it has
locked in favorable blending margins throughout 2027, further out than usual,
because of historically wide spreads. Unhedged September spot margins added
upside, and fourth quarter margins remain good.ONEOK completed a 35,000 bpd
expansion of its Denver-area refined products pipeline in the quarter. The line
is fully contracted.The operatorcut logistics costs for butane used in blending
on the Magellan system by about 10cts gallon, halving the roughly 20cts gallon
Magellan was spending when ONEOK bought it. By integrating the assets into its
system, the company moved nearly all the previously trucked volume to
pipeline.Lower logistics costs, higher gasoline throughput and synergy projects
supported third quarter blending on the company's system.ONEOK expects growing
natural gas demand to bring more liquids through its gathering, processing and
fractionation system, giving the refined products segment more product to blend.
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