Investment Opportunities in U.S. Pipeline Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Source: Fool
- U.S. Energy Production Surge: In 2025, U.S. oil production reached a record 13.6 million barrels per day, while natural gas production exceeded 37.7 trillion cubic feet in 2024, highlighting the U.S.'s dominant position in the global LNG market and attracting investor interest in stable pipeline stock returns.
- Enterprise Products Partners: EPD, one of the largest pipeline operators in the U.S. with over 50,000 miles of pipelines, is set to add 900 million cubic feet per day of new Permian gas-processing capacity by mid-2026, further solidifying its critical role in energy infrastructure.
- Kinder Morgan's Market Position: KMI accounts for about 40% of all natural gas transported in the U.S. with over 66,000 miles of pipeline, connecting major supply basins and demand centers, particularly benefiting from the power demand driven by AI data centers.
- Stable Dividend Yields: EPD has raised its dividend for 27 consecutive years, currently yielding 6.6%, while KMI offers a 3.89% yield, providing attractive options for investors seeking steady income.
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Analyst Views on EPD
Wall Street analysts forecast EPD stock price to fall
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 37.430
Low
33.00
Averages
35.17
High
38.00
Current: 37.430
Low
33.00
Averages
35.17
High
38.00
About EPD
Enterprise Products Partners L.P. is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities; butane isomerization complex and related deisobutanizer (DIB) operations; octane enhancement, iBDH and HPIB production facilities; refined products pipelines, and others.
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.
Investment Potential of Energy Transfer and Enterprise Products
- High Yield and Growth Prospects: Energy Transfer currently offers a 7% dividend yield, showcasing solid growth potential through a cleaned-up balance sheet and strong distribution coverage, particularly benefiting from rising natural gas demand in the Permian Basin where prices are currently low.
- Stable Distribution Growth: Enterprise Products Partners has increased its distribution for 27 consecutive years, currently yielding 5.8%, with annual growth rates between 3% and 4%, reflecting the efficiency and conservativeness of its management team, making it a suitable long-term hold.
- Visible Cash Flows: Both companies primarily operate on a fee-based business model, generating highly visible cash flows that enable them to sustain and increase their robust distributions, appealing to investors seeking stable income.
- Investor-Friendly Environment: With surging power demand from AI data centers, Energy Transfer and Enterprise Products Partners are positioned to capitalize on some of the best growth opportunities in the midstream sector, making them top investment choices right now.
See More
High-Yield Investment in Energy Transfer and Enterprise Products Partners
- Growth Potential of Energy Transfer: Energy Transfer currently offers a 7% dividend yield and has successfully improved its balance sheet over the years, showcasing a strong distribution coverage ratio, with expectations to benefit from rising natural gas demand, particularly in the context of low-priced natural gas resources in the Permian Basin.
- Stable Returns from Enterprise Products: Holding Enterprise Products Partners since 2008, which currently boasts a 5.8% dividend yield and has increased distributions for 27 consecutive years, reflects the management team's conservative and efficient approach, with anticipated annual growth of 3% to 4%.
- Investor-Friendly Industry Environment: The midstream MLP sector is now more investor-friendly than two decades ago, with both Energy Transfer and Enterprise Products Partners leveraging their primarily fee-based business models to generate visible cash flows, allowing them to maintain and increase their robust distributions.
- Future Growth Opportunities: With surging power demand from artificial intelligence data centers, the industry is facing some of the best growth opportunities in years, making investments in Energy Transfer and Enterprise Products Partners a top choice for stable, long-term returns.
See More
Energy Stocks Remain Attractive Amid Geopolitical Turmoil
- Chevron's Resilience: Even if oil prices drop below $50 per barrel, Chevron's low-cost structure allows it to maintain dividend payments and meet capital expenditure needs, demonstrating its resilience and attractiveness in uncertain markets.
- Growing Natural Gas Demand: As the largest U.S. natural gas producer, Chevron is well-positioned to benefit from strong demand for natural gas and natural gas liquids from data centers, further solidifying its market position.
- Enterprise Products Partners' Strength: Enterprise Products Partners' pipelines and terminals are critical to U.S. NGL exports, and its approximately 5.9% distribution yield along with 27 consecutive years of distribution growth make it particularly robust amid market turmoil.
- Inflation Resistance: With around 90% of its long-term contracts featuring escalation provisions, Enterprise Products Partners maintains stable cash flow despite oil and gas price volatility and inflationary pressures, showcasing its strong financial health.
See More
Investment Opportunities in Energy Amid Geopolitical Turmoil
- Chevron's Market Advantage: Chevron (CVX) has emerged as a winner in the energy sector in 2026, benefiting from soaring oil prices, and its stock is likely to rise further amid ongoing conflicts in the Strait of Hormuz, while still maintaining dividends and capital expenditures even if oil drops below $50.
- Growing Natural Gas Demand: As the largest U.S. natural gas producer, Chevron is well-positioned to capitalize on strong demand for natural gas and NGLs from data centers, projecting double-digit average annual earnings-per-share growth, complemented by a 3.6% dividend yield, providing attractive total returns.
- Enterprise Products Partners' Critical Role: Enterprise Products Partners (EPD) plays a crucial role in U.S. NGL exports, with its distribution network gaining importance due to the Middle East crisis, and both domestic and international demand for NGLs and petrochemicals expected to grow in the coming years.
- Stable Dividends and Inflation Resistance: Enterprise Products Partners has increased its distribution for 27 consecutive years, boasting a distribution yield of approximately 5.9%, and its fee-based business model insulates it from oil and gas price volatility, with 90% of long-term contracts featuring escalation provisions, showcasing strong financial resilience.
See More
Analysis of U.S. Energy Companies Amidst Volatility
- Enterprise Products Overview: Enterprise Products Partners operates over 50,000 miles of pipeline across 27 states, generating nearly $13.8 billion in revenue and close to $1.7 billion in net income in the latest quarter, showcasing its stable profitability and a dividend yield of 5.6%.
- Diverse Revenue Structure: As a vertically integrated operator, Enterprise ensures diversified income streams through various fee structures, effectively mitigating client sector volatility and providing consistent high-yield distributions to shareholders.
- NextEra Energy Overview: NextEra Energy combines traditional electricity with renewable sources, holding stakes in eight nuclear reactors, with the Duane Arnold reactor in Iowa set to restart in 2029 to supply power for Google's AI data centers.
- Stable Financial Performance: Over the past three years, NextEra has steadily increased revenue, achieving net margins between 26% and 32%, and raised its dividend by 10% to $0.62 per share in February 2023, currently yielding 2.7%.
See More
Investment Outlook for Energy Stocks Amid Market Turbulence
- Complex Energy Market: The ongoing war in Iran has disrupted oil and material flows through the Strait of Hormuz, affecting about one-fifth of global oil supply, driving up prices and causing shortages in some regions, which requires investors to navigate this unpredictable landscape cautiously.
- Growth Potential of Energy Transfer: Energy Transfer (ET), one of the largest midstream companies in the U.S., with over 140,000 miles of pipelines and storage facilities, is projected to see adjusted EBITDA growth of 9% to 12% in 2026, supporting its 6.8% dividend yield and bolstering investor confidence.
- Stability of ExxonMobil: As the largest publicly traded oil company, ExxonMobil (XOM) expects to generate $145 billion in surplus cash flow by 2030, backed by its 43 consecutive years of dividend payments and a strong balance sheet, ensuring stability amid market fluctuations.
- Growth Strategy of Enterprise Products Partners: Enterprise Products Partners (EPD) boasts over 50,000 miles of infrastructure in North America, with expected adjusted EBITDA growth of 3% to 5% in 2026 and accelerating to about 10% in 2027, ensuring continued dividend growth and attracting income-seeking investors.
See More
Investment Potential of Energy Transfer and Enterprise Products
- High Yield and Growth Prospects: Energy Transfer currently offers a 7% dividend yield, showcasing solid growth potential through a cleaned-up balance sheet and strong distribution coverage, particularly benefiting from rising natural gas demand in the Permian Basin where prices are currently low.
- Stable Distribution Growth: Enterprise Products Partners has increased its distribution for 27 consecutive years, currently yielding 5.8%, with annual growth rates between 3% and 4%, reflecting the efficiency and conservativeness of its management team, making it a suitable long-term hold.
- Visible Cash Flows: Both companies primarily operate on a fee-based business model, generating highly visible cash flows that enable them to sustain and increase their robust distributions, appealing to investors seeking stable income.
- Investor-Friendly Environment: With surging power demand from AI data centers, Energy Transfer and Enterprise Products Partners are positioned to capitalize on some of the best growth opportunities in the midstream sector, making them top investment choices right now.
See More
High-Yield Investment in Energy Transfer and Enterprise Products Partners
- Growth Potential of Energy Transfer: Energy Transfer currently offers a 7% dividend yield and has successfully improved its balance sheet over the years, showcasing a strong distribution coverage ratio, with expectations to benefit from rising natural gas demand, particularly in the context of low-priced natural gas resources in the Permian Basin.
- Stable Returns from Enterprise Products: Holding Enterprise Products Partners since 2008, which currently boasts a 5.8% dividend yield and has increased distributions for 27 consecutive years, reflects the management team's conservative and efficient approach, with anticipated annual growth of 3% to 4%.
- Investor-Friendly Industry Environment: The midstream MLP sector is now more investor-friendly than two decades ago, with both Energy Transfer and Enterprise Products Partners leveraging their primarily fee-based business models to generate visible cash flows, allowing them to maintain and increase their robust distributions.
- Future Growth Opportunities: With surging power demand from artificial intelligence data centers, the industry is facing some of the best growth opportunities in years, making investments in Energy Transfer and Enterprise Products Partners a top choice for stable, long-term returns.
See More
Energy Stocks Remain Attractive Amid Geopolitical Turmoil
- Chevron's Resilience: Even if oil prices drop below $50 per barrel, Chevron's low-cost structure allows it to maintain dividend payments and meet capital expenditure needs, demonstrating its resilience and attractiveness in uncertain markets.
- Growing Natural Gas Demand: As the largest U.S. natural gas producer, Chevron is well-positioned to benefit from strong demand for natural gas and natural gas liquids from data centers, further solidifying its market position.
- Enterprise Products Partners' Strength: Enterprise Products Partners' pipelines and terminals are critical to U.S. NGL exports, and its approximately 5.9% distribution yield along with 27 consecutive years of distribution growth make it particularly robust amid market turmoil.
- Inflation Resistance: With around 90% of its long-term contracts featuring escalation provisions, Enterprise Products Partners maintains stable cash flow despite oil and gas price volatility and inflationary pressures, showcasing its strong financial health.
See More
Investment Opportunities in Energy Amid Geopolitical Turmoil
- Chevron's Market Advantage: Chevron (CVX) has emerged as a winner in the energy sector in 2026, benefiting from soaring oil prices, and its stock is likely to rise further amid ongoing conflicts in the Strait of Hormuz, while still maintaining dividends and capital expenditures even if oil drops below $50.
- Growing Natural Gas Demand: As the largest U.S. natural gas producer, Chevron is well-positioned to capitalize on strong demand for natural gas and NGLs from data centers, projecting double-digit average annual earnings-per-share growth, complemented by a 3.6% dividend yield, providing attractive total returns.
- Enterprise Products Partners' Critical Role: Enterprise Products Partners (EPD) plays a crucial role in U.S. NGL exports, with its distribution network gaining importance due to the Middle East crisis, and both domestic and international demand for NGLs and petrochemicals expected to grow in the coming years.
- Stable Dividends and Inflation Resistance: Enterprise Products Partners has increased its distribution for 27 consecutive years, boasting a distribution yield of approximately 5.9%, and its fee-based business model insulates it from oil and gas price volatility, with 90% of long-term contracts featuring escalation provisions, showcasing strong financial resilience.
See More
Analysis of U.S. Energy Companies Amidst Volatility
- Enterprise Products Overview: Enterprise Products Partners operates over 50,000 miles of pipeline across 27 states, generating nearly $13.8 billion in revenue and close to $1.7 billion in net income in the latest quarter, showcasing its stable profitability and a dividend yield of 5.6%.
- Diverse Revenue Structure: As a vertically integrated operator, Enterprise ensures diversified income streams through various fee structures, effectively mitigating client sector volatility and providing consistent high-yield distributions to shareholders.
- NextEra Energy Overview: NextEra Energy combines traditional electricity with renewable sources, holding stakes in eight nuclear reactors, with the Duane Arnold reactor in Iowa set to restart in 2029 to supply power for Google's AI data centers.
- Stable Financial Performance: Over the past three years, NextEra has steadily increased revenue, achieving net margins between 26% and 32%, and raised its dividend by 10% to $0.62 per share in February 2023, currently yielding 2.7%.
See More
Investment Outlook for Energy Stocks Amid Market Turbulence
- Complex Energy Market: The ongoing war in Iran has disrupted oil and material flows through the Strait of Hormuz, affecting about one-fifth of global oil supply, driving up prices and causing shortages in some regions, which requires investors to navigate this unpredictable landscape cautiously.
- Growth Potential of Energy Transfer: Energy Transfer (ET), one of the largest midstream companies in the U.S., with over 140,000 miles of pipelines and storage facilities, is projected to see adjusted EBITDA growth of 9% to 12% in 2026, supporting its 6.8% dividend yield and bolstering investor confidence.
- Stability of ExxonMobil: As the largest publicly traded oil company, ExxonMobil (XOM) expects to generate $145 billion in surplus cash flow by 2030, backed by its 43 consecutive years of dividend payments and a strong balance sheet, ensuring stability amid market fluctuations.
- Growth Strategy of Enterprise Products Partners: Enterprise Products Partners (EPD) boasts over 50,000 miles of infrastructure in North America, with expected adjusted EBITDA growth of 3% to 5% in 2026 and accelerating to about 10% in 2027, ensuring continued dividend growth and attracting income-seeking investors.
See More
