Energy Stocks Surge as Pipeline Investments Gain Favor
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
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.
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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: 18.890
Low
17.00
Averages
20.65
High
23.00
Current: 18.890
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 Expands Nederland Terminal Capacity
- Capacity Expansion Plan: Energy Transfer plans to increase the ethane export capacity of its Nederland NGL terminal by 240,000 barrels per day and add 55,000 BPD of LPG export capacity by the end of the decade to meet robust customer demand, thereby enhancing its competitive position in the natural gas liquids market.
- Long-term Contract Security: The company has secured long-term contracts for 100% of the facility's ethane export capacity into the 2040s, further solidifying its revenue streams and cash flow stability, which supports future distribution growth.
- Infrastructure Expansion: Energy Transfer is expanding its Mont Belvieu-to-Nederland NGL export pipeline and plans to build two new NGL ship docks, expected to be completed by mid-2029, which will enhance its overall logistics efficiency and market responsiveness.
- Significant Investment Scale: The company plans to invest between $5.5 billion and $5.9 billion in expansion projects in 2023, including the $5.6 billion Desert Southwest Pipeline project anticipated to be completed by Q4 2029, which will provide strong financial backing for its future growth.
See More
Energy Transfer Expands NGL Export Terminal to Boost Capacity
- Capacity Expansion: Energy Transfer plans to increase the ethane export capacity of its Nederland NGL Export Terminal by 240,000 barrels per day while adding another 55,000 barrels per day of LPG export capacity to meet robust customer demand, which is expected to further drive the company's distribution growth.
- Long-Term Contracts: The company has secured long-term contracts for 100% of the facility's ethane export capacity into the 2040s, enhancing revenue predictability and stability for future earnings.
- Significant Investment Plans: Energy Transfer plans to invest between $5.5 billion and $5.9 billion in expansion projects this year, including a $5.6 billion Desert Southwest Pipeline project expected to be completed by Q4 2029, showcasing strong growth potential in the natural gas pipeline sector.
- Enhanced Growth Visibility: The company currently has multiple projects on track to enter commercial service by early 2030, supporting its plans for a 3% to 5% annual increase in high-yield distributions, further solidifying its competitive position in the market.
See More
Is It Possible to Retire on $500,000?
- Investment Return Requirements: To achieve a median U.S. household income of $88,510 from an initial investment of $500,000, an annual return of 17.7% is necessary, which is challenging but feasible with strategic investments.
- Social Security Impact: Including the average annual Social Security benefit of $26,148 reduces the required annual return to 12.5%, and for married couples receiving benefits, it drops to 7.2%, highlighting the critical role of Social Security in retirement planning.
- Ares Capital Advantages: As the largest publicly traded business development company, Ares Capital boasts a diversified portfolio worth $21.5 billion and offers a high dividend yield of 10.6%, having maintained stable or increasing dividends for 67 consecutive quarters, demonstrating strong profitability and resilience.
- Energy Transition Potential: Energy Transfer LP operates over 140,000 miles of pipelines, providing an attractive distribution yield of approximately 7.2%, with management projecting annual distribution growth of 3% to 5%, positioning the company strongly for growth amid energy transition trends.
See More
Ares Capital and Pfizer Offer High-Yield Stocks for Retirement
- Stable Dividends from Ares Capital: Ares Capital (NASDAQ: ARCC), the largest publicly traded business development company, offers a high dividend yield of 10.6% and has maintained stable or increasing dividends for 67 consecutive quarters, demonstrating resilience and profitability even during economic crises.
- Tailwinds from Energy Transition: Energy Transfer (NYSE: ET), a leading midstream energy company in North America with over 140,000 miles of pipelines, expects to increase its distribution by 3% to 5% annually and benefits from the rapid build-out of AI data centers, enhancing its market position.
- Pfizer's Long-Term Commitment: Pfizer (NYSE: PFE) boasts a forward dividend yield of 6.8% and has increased its dividend for 16 consecutive years; despite facing patent expirations, the company is investing in new product development and acquisitions to bolster revenue growth potential, expecting solid growth beyond 2028.
- Retirement Investment Advice: While Ares Capital, Energy Transfer, and Pfizer present good investment options for retirement, relying solely on these three stocks is unwise; investors are advised to create a diversified portfolio to mitigate risks and enhance return potential.
See More
Energy Transfer Expands Natural Gas Liquids Export Capacity
- Capacity Expansion: Energy Transfer announced the expansion of its Nederland natural gas liquids export terminal, increasing ethane export capacity by 240K bbl/day and LPG capacity by 55K bbl/day to meet customer demand, with phased service expected to begin in 2028.
- Long-Term Agreements: All additional ethane export capacity has been secured under long-term agreements extending into the 2040s, ensuring stable future cash flows and a solid customer base.
- Infrastructure Development: The expansion will include increased pipeline capacity from Mont Belvieu to Nederland and the construction of two additional ship docks, expected to be available in H1 2027, further enhancing the company's export capabilities.
- Market Leadership: Following the expansion, Nederland's refrigerated NGL export capacity will exceed 1.25M bbl/day, combined with Marcus Hook's 420K bbl/day capacity, bringing Energy Transfer's total refrigerated export capacity to approximately 1.7M bbl/day, solidifying its market leadership along the U.S. Gulf Coast.
See More
Energy Transfer's High Dividend Attracts Investors
- Dividend Yield Advantage: Energy Transfer boasts a distribution yield of 7.1%, with a five-year average of 7.4%, making it an ideal choice for high-yield investors seeking stable passive income from their holdings.
- Large Infrastructure Scale: The company operates over 140,000 miles of energy infrastructure and pipeline networks in the U.S., one of the largest in the industry, ensuring its competitiveness and market share in energy transportation.
- Stable Profit Model: Energy Transfer generates revenue by charging fees based on volume to energy production companies, allowing it to maintain high dividend payouts despite limited growth potential, which is attractive for income-focused investors.
- Investor Considerations: While the dividend is appealing, the analyst team notes that Energy Transfer is not included in the current top ten stock recommendations, prompting investors to carefully evaluate its long-term investment value.
See More
Energy Transfer Expands Nederland Terminal Capacity
- Capacity Expansion Plan: Energy Transfer plans to increase the ethane export capacity of its Nederland NGL terminal by 240,000 barrels per day and add 55,000 BPD of LPG export capacity by the end of the decade to meet robust customer demand, thereby enhancing its competitive position in the natural gas liquids market.
- Long-term Contract Security: The company has secured long-term contracts for 100% of the facility's ethane export capacity into the 2040s, further solidifying its revenue streams and cash flow stability, which supports future distribution growth.
- Infrastructure Expansion: Energy Transfer is expanding its Mont Belvieu-to-Nederland NGL export pipeline and plans to build two new NGL ship docks, expected to be completed by mid-2029, which will enhance its overall logistics efficiency and market responsiveness.
- Significant Investment Scale: The company plans to invest between $5.5 billion and $5.9 billion in expansion projects in 2023, including the $5.6 billion Desert Southwest Pipeline project anticipated to be completed by Q4 2029, which will provide strong financial backing for its future growth.
See More
Energy Transfer Expands NGL Export Terminal to Boost Capacity
- Capacity Expansion: Energy Transfer plans to increase the ethane export capacity of its Nederland NGL Export Terminal by 240,000 barrels per day while adding another 55,000 barrels per day of LPG export capacity to meet robust customer demand, which is expected to further drive the company's distribution growth.
- Long-Term Contracts: The company has secured long-term contracts for 100% of the facility's ethane export capacity into the 2040s, enhancing revenue predictability and stability for future earnings.
- Significant Investment Plans: Energy Transfer plans to invest between $5.5 billion and $5.9 billion in expansion projects this year, including a $5.6 billion Desert Southwest Pipeline project expected to be completed by Q4 2029, showcasing strong growth potential in the natural gas pipeline sector.
- Enhanced Growth Visibility: The company currently has multiple projects on track to enter commercial service by early 2030, supporting its plans for a 3% to 5% annual increase in high-yield distributions, further solidifying its competitive position in the market.
See More
Is It Possible to Retire on $500,000?
- Investment Return Requirements: To achieve a median U.S. household income of $88,510 from an initial investment of $500,000, an annual return of 17.7% is necessary, which is challenging but feasible with strategic investments.
- Social Security Impact: Including the average annual Social Security benefit of $26,148 reduces the required annual return to 12.5%, and for married couples receiving benefits, it drops to 7.2%, highlighting the critical role of Social Security in retirement planning.
- Ares Capital Advantages: As the largest publicly traded business development company, Ares Capital boasts a diversified portfolio worth $21.5 billion and offers a high dividend yield of 10.6%, having maintained stable or increasing dividends for 67 consecutive quarters, demonstrating strong profitability and resilience.
- Energy Transition Potential: Energy Transfer LP operates over 140,000 miles of pipelines, providing an attractive distribution yield of approximately 7.2%, with management projecting annual distribution growth of 3% to 5%, positioning the company strongly for growth amid energy transition trends.
See More
Ares Capital and Pfizer Offer High-Yield Stocks for Retirement
- Stable Dividends from Ares Capital: Ares Capital (NASDAQ: ARCC), the largest publicly traded business development company, offers a high dividend yield of 10.6% and has maintained stable or increasing dividends for 67 consecutive quarters, demonstrating resilience and profitability even during economic crises.
- Tailwinds from Energy Transition: Energy Transfer (NYSE: ET), a leading midstream energy company in North America with over 140,000 miles of pipelines, expects to increase its distribution by 3% to 5% annually and benefits from the rapid build-out of AI data centers, enhancing its market position.
- Pfizer's Long-Term Commitment: Pfizer (NYSE: PFE) boasts a forward dividend yield of 6.8% and has increased its dividend for 16 consecutive years; despite facing patent expirations, the company is investing in new product development and acquisitions to bolster revenue growth potential, expecting solid growth beyond 2028.
- Retirement Investment Advice: While Ares Capital, Energy Transfer, and Pfizer present good investment options for retirement, relying solely on these three stocks is unwise; investors are advised to create a diversified portfolio to mitigate risks and enhance return potential.
See More
Energy Transfer Expands Natural Gas Liquids Export Capacity
- Capacity Expansion: Energy Transfer announced the expansion of its Nederland natural gas liquids export terminal, increasing ethane export capacity by 240K bbl/day and LPG capacity by 55K bbl/day to meet customer demand, with phased service expected to begin in 2028.
- Long-Term Agreements: All additional ethane export capacity has been secured under long-term agreements extending into the 2040s, ensuring stable future cash flows and a solid customer base.
- Infrastructure Development: The expansion will include increased pipeline capacity from Mont Belvieu to Nederland and the construction of two additional ship docks, expected to be available in H1 2027, further enhancing the company's export capabilities.
- Market Leadership: Following the expansion, Nederland's refrigerated NGL export capacity will exceed 1.25M bbl/day, combined with Marcus Hook's 420K bbl/day capacity, bringing Energy Transfer's total refrigerated export capacity to approximately 1.7M bbl/day, solidifying its market leadership along the U.S. Gulf Coast.
See More
Energy Transfer's High Dividend Attracts Investors
- Dividend Yield Advantage: Energy Transfer boasts a distribution yield of 7.1%, with a five-year average of 7.4%, making it an ideal choice for high-yield investors seeking stable passive income from their holdings.
- Large Infrastructure Scale: The company operates over 140,000 miles of energy infrastructure and pipeline networks in the U.S., one of the largest in the industry, ensuring its competitiveness and market share in energy transportation.
- Stable Profit Model: Energy Transfer generates revenue by charging fees based on volume to energy production companies, allowing it to maintain high dividend payouts despite limited growth potential, which is attractive for income-focused investors.
- Investor Considerations: While the dividend is appealing, the analyst team notes that Energy Transfer is not included in the current top ten stock recommendations, prompting investors to carefully evaluate its long-term investment value.
See More
