Energy Stocks Surge as Pipeline Investments Gain Favor
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Should l Buy ET?
Source: Fool
- Investor Shift to Energy Stocks: As oil prices rise, investors are significantly returning to energy stocks, particularly pipeline stocks, which exhibit lower revenue and earnings volatility compared to exploration and production companies, making them suitable for long-term investments.
- Growth Potential of Energy Transfer: Energy Transfer owns over 140,000 square miles of midstream energy infrastructure, and its 442-mile Hugh Brinson Pipeline is expected to supply natural gas to both electric utilities and AI data centers, driving future distribution growth targets of 3% to 5%.
- Stable Returns from Hess Midstream: Hess Midstream has never cut its distribution since going public, currently offering a forward distribution yield of approximately 7.9%, and has consistently increased payouts over the past nine years, targeting 5% annual distribution growth through 2028.
- Strong Distribution Growth of MPLX: MPLX boasts a 10-year track record of distribution growth, with a current forward distribution yield of 7.4%, and a 12.5% growth rate over the past year, with projections indicating continued increases of 12.5% over the next two years.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ET?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 19.080
Low
17.00
Averages
20.65
High
23.00
Current: 19.080
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Transfer's Performance Analysis in 2026
- Strong Energy Stock Performance: In 2026, the average energy stock in the S&P 500 surged over 30%, significantly outpacing the index's 3% decline, primarily driven by the epic rise in crude prices due to the war with Iran, indicating a robust recovery potential in the energy market.
- Stable Business Model: Energy Transfer's units increased by over 16% this year, although this lags behind most energy stocks and the surge in crude oil prices, mainly due to its master limited partnership (MLP) structure, which ensures about 90% of earnings come from fixed fees, providing stability in volatile markets.
- Natural Gas Growth Driver: Of Energy Transfer's over $5 billion capital spending this year, less than 10% is allocated to crude oil infrastructure, focusing instead on natural gas pipelines and processing facilities, strategically positioning the company to meet rising demands from AI data centers and electric vehicles.
- Income Stability: The company's fee-based income model protects its earnings from price drops, although it limits upside potential during price surges, making Energy Transfer a suitable choice for investors seeking steady income and growth, with a current dividend yield of 7%.
See More
Midstream Energy Companies Show Strong Investment Outlook
- Energy Transformation Potential: Energy Transfer's forward EV/EBITDA multiple is just 8.5, coupled with a 7% yield and a distribution growth target of 3% to 5%, indicating strong growth potential in natural gas pipeline operations, particularly amid rising demand from AI data centers.
- Stable Dividend Growth: Enterprise Products Partners boasts a 5.7% yield and a record of increasing distributions for 27 consecutive years, and although its forward EV/EBITDA multiple exceeds 11, its conservative financial management and strong balance sheet make it a reliable long-term investment choice.
- Rapid Dividend Growth: MPLX currently offers a 7.8% yield and has increased its distribution by 12.5% annually over the past two years, with plans to continue this pace for the next two years, showcasing its strong appeal in the midstream energy sector.
- Asset Quality Improvement: MPLX is enhancing asset quality through acquisitions and divestitures, particularly in the Permian and Gulf Coast regions, and its robust organic project backlog further strengthens its growth prospects and investment attractiveness.
See More
Midstream Energy Stocks Attract Investors with High Yields
- Industry Transformation: Over the past decade, the midstream energy sector has significantly improved its financial health by reducing leverage, shifting to fee-based contracts, and increasing distribution coverage ratios, making it a more attractive investment option that is likely to draw more investor interest.
- Energy Transition Opportunities: With rising energy demand driven by AI buildout, top midstream limited partnerships (MLPs) currently trade at a forward EV/EBITDA multiple of around 11 times, a significant discount compared to 13.7 times a decade ago, indicating strong investment potential.
- Energy Transfer Projects: Energy Transfer's strong presence in the Permian Basin positions it as a key natural gas pipeline operator, with expectations for a 3% to 5% increase in distributions, further solidifying its market position.
- High Yield Growth: MPLX has increased its distribution by 12.5% over the past two years and plans to continue this pace for the next two years, with a current yield of 7.8%, making it a top income stock for investors.
See More
Energy Transfer's 2026 Outlook Amidst Rising Energy Prices
- Stable Business Model: Energy Transfer primarily generates fee-based earnings, expecting about 90% of its revenue in 2026 to come from fixed-rate contracts, which allows it to maintain stable cash flows during energy price declines, supporting a high distribution yield of 7%.
- Capital Expenditure Allocation: This year, less than 10% of the over $5 billion in capital spending will be allocated to crude oil infrastructure projects, focusing instead on natural gas pipelines and processing facilities, highlighting its emphasis on the natural gas market and future growth potential.
- Growing Market Demand: With rising electricity needs from AI data centers and electric vehicles, Energy Transfer is capitalizing on the surge in gas demand through direct supply agreements with data centers, which will provide significant support for its future growth.
- Cautious Investment Advice: Despite Energy Transfer's strong performance among energy stocks, analysts suggest that its business model limits upside potential during oil price surges, advising investors to consider other stocks for higher returns in the energy sector.
See More
Energy Sector Leads in 2026 with 36% YTD Return
- Energy Sector Performance: The energy sector boasts a year-to-date return of 36% in 2026, leading all sectors and demonstrating robust market performance amid increasing global economic uncertainties.
- Technology Sector Decline: In stark contrast, the technology sector has fallen over 7% year-to-date, reflecting a potential reassessment by investors towards energy stocks, which may lead to a shift in capital towards energy for higher returns.
- Portfolio Adjustments: Inside Edge Capital has increased its allocation to energy from 2% to 10% in its growth portfolio and from 6% to 14% in its equity income portfolio, indicating strong confidence in the long-term growth potential of the energy sector.
- Strong Archrock Outlook: Archrock (AROC), one of the largest natural gas compression companies in the U.S., is projected to have a dividend yield between 1.5% and 9% by 2025, with a net EPS CAGR exceeding 7%, underscoring its significance and growth potential within the energy value chain.
See More
Sunoco to Release Q1 2026 Financial Results
- Earnings Release Announcement: Sunoco LP and SunocoCorp LLC announced they will release their Q1 2026 financial and operating results before market open on May 5, 2026, indicating a commitment to transparency and investor communication.
- Conference Call Details: Management will hold a conference call on the same day at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the results, reflecting the company's intention to enhance investor confidence through direct engagement.
- Webcast Access: The conference call will be broadcast live via an internet webcast on Sunoco LP's website, requiring investors to log in at least 10 minutes in advance, showcasing the company's use of technology to improve information dissemination efficiency.
- Company Background: Sunoco LP is a leading energy infrastructure and fuel distribution master limited partnership operating across North America, the Greater Caribbean, and Europe, with approximately 14,000 miles of pipeline and over 160 terminals, underscoring its significant position in the energy sector.
See More
Energy Transfer's Performance Analysis in 2026
- Strong Energy Stock Performance: In 2026, the average energy stock in the S&P 500 surged over 30%, significantly outpacing the index's 3% decline, primarily driven by the epic rise in crude prices due to the war with Iran, indicating a robust recovery potential in the energy market.
- Stable Business Model: Energy Transfer's units increased by over 16% this year, although this lags behind most energy stocks and the surge in crude oil prices, mainly due to its master limited partnership (MLP) structure, which ensures about 90% of earnings come from fixed fees, providing stability in volatile markets.
- Natural Gas Growth Driver: Of Energy Transfer's over $5 billion capital spending this year, less than 10% is allocated to crude oil infrastructure, focusing instead on natural gas pipelines and processing facilities, strategically positioning the company to meet rising demands from AI data centers and electric vehicles.
- Income Stability: The company's fee-based income model protects its earnings from price drops, although it limits upside potential during price surges, making Energy Transfer a suitable choice for investors seeking steady income and growth, with a current dividend yield of 7%.
See More
Midstream Energy Companies Show Strong Investment Outlook
- Energy Transformation Potential: Energy Transfer's forward EV/EBITDA multiple is just 8.5, coupled with a 7% yield and a distribution growth target of 3% to 5%, indicating strong growth potential in natural gas pipeline operations, particularly amid rising demand from AI data centers.
- Stable Dividend Growth: Enterprise Products Partners boasts a 5.7% yield and a record of increasing distributions for 27 consecutive years, and although its forward EV/EBITDA multiple exceeds 11, its conservative financial management and strong balance sheet make it a reliable long-term investment choice.
- Rapid Dividend Growth: MPLX currently offers a 7.8% yield and has increased its distribution by 12.5% annually over the past two years, with plans to continue this pace for the next two years, showcasing its strong appeal in the midstream energy sector.
- Asset Quality Improvement: MPLX is enhancing asset quality through acquisitions and divestitures, particularly in the Permian and Gulf Coast regions, and its robust organic project backlog further strengthens its growth prospects and investment attractiveness.
See More
Midstream Energy Stocks Attract Investors with High Yields
- Industry Transformation: Over the past decade, the midstream energy sector has significantly improved its financial health by reducing leverage, shifting to fee-based contracts, and increasing distribution coverage ratios, making it a more attractive investment option that is likely to draw more investor interest.
- Energy Transition Opportunities: With rising energy demand driven by AI buildout, top midstream limited partnerships (MLPs) currently trade at a forward EV/EBITDA multiple of around 11 times, a significant discount compared to 13.7 times a decade ago, indicating strong investment potential.
- Energy Transfer Projects: Energy Transfer's strong presence in the Permian Basin positions it as a key natural gas pipeline operator, with expectations for a 3% to 5% increase in distributions, further solidifying its market position.
- High Yield Growth: MPLX has increased its distribution by 12.5% over the past two years and plans to continue this pace for the next two years, with a current yield of 7.8%, making it a top income stock for investors.
See More
Energy Transfer's 2026 Outlook Amidst Rising Energy Prices
- Stable Business Model: Energy Transfer primarily generates fee-based earnings, expecting about 90% of its revenue in 2026 to come from fixed-rate contracts, which allows it to maintain stable cash flows during energy price declines, supporting a high distribution yield of 7%.
- Capital Expenditure Allocation: This year, less than 10% of the over $5 billion in capital spending will be allocated to crude oil infrastructure projects, focusing instead on natural gas pipelines and processing facilities, highlighting its emphasis on the natural gas market and future growth potential.
- Growing Market Demand: With rising electricity needs from AI data centers and electric vehicles, Energy Transfer is capitalizing on the surge in gas demand through direct supply agreements with data centers, which will provide significant support for its future growth.
- Cautious Investment Advice: Despite Energy Transfer's strong performance among energy stocks, analysts suggest that its business model limits upside potential during oil price surges, advising investors to consider other stocks for higher returns in the energy sector.
See More
Energy Sector Leads in 2026 with 36% YTD Return
- Energy Sector Performance: The energy sector boasts a year-to-date return of 36% in 2026, leading all sectors and demonstrating robust market performance amid increasing global economic uncertainties.
- Technology Sector Decline: In stark contrast, the technology sector has fallen over 7% year-to-date, reflecting a potential reassessment by investors towards energy stocks, which may lead to a shift in capital towards energy for higher returns.
- Portfolio Adjustments: Inside Edge Capital has increased its allocation to energy from 2% to 10% in its growth portfolio and from 6% to 14% in its equity income portfolio, indicating strong confidence in the long-term growth potential of the energy sector.
- Strong Archrock Outlook: Archrock (AROC), one of the largest natural gas compression companies in the U.S., is projected to have a dividend yield between 1.5% and 9% by 2025, with a net EPS CAGR exceeding 7%, underscoring its significance and growth potential within the energy value chain.
See More
Sunoco to Release Q1 2026 Financial Results
- Earnings Release Announcement: Sunoco LP and SunocoCorp LLC announced they will release their Q1 2026 financial and operating results before market open on May 5, 2026, indicating a commitment to transparency and investor communication.
- Conference Call Details: Management will hold a conference call on the same day at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the results, reflecting the company's intention to enhance investor confidence through direct engagement.
- Webcast Access: The conference call will be broadcast live via an internet webcast on Sunoco LP's website, requiring investors to log in at least 10 minutes in advance, showcasing the company's use of technology to improve information dissemination efficiency.
- Company Background: Sunoco LP is a leading energy infrastructure and fuel distribution master limited partnership operating across North America, the Greater Caribbean, and Europe, with approximately 14,000 miles of pipeline and over 160 terminals, underscoring its significant position in the energy sector.
See More
