Investment Opportunities in U.S. Pipeline Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy EPD?" 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 EPD
Wall Street analysts forecast EPD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for EPD is 35.17 USD with a low forecast of 33.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 35.200
Low
33.00
Averages
35.17
High
38.00
Current: 35.200
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.
Enterprise Products Partners Reports Record Q4 EBITDA of $2.7 Billion
- Record EBITDA: Enterprise Products Partners achieved a record $2.7 billion in EBITDA for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024, demonstrating strong performance following the deployment of new assets despite challenges from declining crude prices.
- Net Income Growth: The net income attributable to common unitholders for the fourth quarter was $1.6 billion, or $0.75 per unit, while adjusted cash flow from operations grew by 5% to $2.4 billion, reflecting effective capital return and cash flow management.
- Increased Distribution: The company announced an increase in the distribution to $0.55 per common unit for Q4 2025, a 2.8% year-over-year rise, and returned a total of $5 billion to equity investors in 2025, underscoring its commitment to shareholder value.
- Future Outlook: Management expects capital expenditures for 2026 to range from $2.5 billion to $2.9 billion, with a projected 10% growth in adjusted EBITDA and cash flow in 2027, indicating confidence in future growth despite risks from commodity price volatility.
See More
Investment Opportunities in U.S. Pipeline Stocks
- 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.
See More
Top High-Yield Energy Stocks to Buy
- Enbridge's Stable Income: Enbridge (ENB) offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years; despite a downgrade from JP Morgan due to sluggish crude oil growth, its strong cash flow ensures continued dividend payments.
- Energy Transfer's Growth Potential: Energy Transfer (ET) attracts income investors with a 7.3% distribution yield and has signed natural gas supply agreements with multiple data center operators over the past year, benefiting from the booming construction of AI data centers.
- Enterprise Products Partners' Income Machine: Enterprise Products Partners (EPD) provides a distribution yield of approximately 6.3% and has increased distributions for 27 consecutive years; while only modest growth is expected in 2026, management projects a 10% growth in EBITDA and cash flow for 2027.
- Optimistic Industry Outlook: With ongoing demand for energy infrastructure, all three companies are actively expanding their operations, particularly in renewable energy and AI-related projects, indicating strong long-term growth potential.
See More
Enterprise Products Partners Reports Record 2025 Financial Results
- Record Financial Performance: Enterprise Products Partners achieved a record $8.7 billion in adjusted cash flow for 2025, significantly enhancing its ability to sustain a high 6.7% distribution yield, thereby attracting more investor interest.
- Expansion Projects Drive Growth: The company completed several expansion projects last year, including the Neches River Terminal and Bahia Pipeline, which helped achieve 10 volume records across its operations, further enhancing its market competitiveness.
- Future Investment Plans: The company expects to invest between $2.5 billion and $2.9 billion in growth capital projects in 2026, offset by $600 million in asset sales, to support ongoing expansion and cash flow growth.
- Strong Cash Flow Support: In the fourth quarter, the MLP's distributable cash flow covered its distribution by 1.8 times, demonstrating robust financial health and laying a solid foundation for future growth.
See More
Enterprise Products Partners Reports Record Cash Flow and Growth Outlook
- Record Cash Flow: Enterprise Products Partners generated a record $8.7 billion in adjusted cash flow for 2025, significantly enhancing its operational capacity and ensuring its 6.7% distribution remains sustainable, attracting investors seeking stable income.
- Strong Capital Expenditure: The company invested $4.4 billion in growth capital projects last year, completing several expansion initiatives that solidified its market position while laying a robust foundation for future growth.
- Future Growth Expectations: Enterprise Products Partners anticipates investing between $2.5 billion and $2.9 billion in new projects in 2026, demonstrating strong growth potential despite $600 million in asset sales, showcasing its competitiveness in the midstream market.
- Financial Stability: The company ended the year with a low leverage ratio of 3.3%, ensuring financial health that allows for continued common unit repurchases and distribution increases, further boosting investor confidence.
See More
High-Yield Energy Stock Investment Recommendations
- Stable Midstream Operations: Enterprise Products Partners (EPD) and Enbridge (ENB) offer dividend yields of 6.3% and 5.6% respectively, demonstrating strong financial performance even in low oil price environments due to their stable revenue models as midstream companies.
- Robust Dividend History: Enbridge has increased its dividend for 30 consecutive years, while Enterprise Products Partners has done so for 27 years, indicating the resilience and attractiveness of their business models, particularly for conservative income investors.
- Integrated Energy Company Transition: TotalEnergies (TTE), with a current dividend yield of 5.3%, is strategically transitioning towards clean energy, utilizing oil profits to adapt to shifting global energy demands, showcasing its forward-looking strategic positioning.
- High-Yield Investment Opportunities: Despite the volatility in the energy market, the high yields offered by Enterprise and Enbridge make them ideal for conservative investors, while TotalEnergies provides direct energy exposure for those seeking higher-risk returns.
See More
Enterprise Products Partners Reports Record Q4 EBITDA of $2.7 Billion
- Record EBITDA: Enterprise Products Partners achieved a record $2.7 billion in EBITDA for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024, demonstrating strong performance following the deployment of new assets despite challenges from declining crude prices.
- Net Income Growth: The net income attributable to common unitholders for the fourth quarter was $1.6 billion, or $0.75 per unit, while adjusted cash flow from operations grew by 5% to $2.4 billion, reflecting effective capital return and cash flow management.
- Increased Distribution: The company announced an increase in the distribution to $0.55 per common unit for Q4 2025, a 2.8% year-over-year rise, and returned a total of $5 billion to equity investors in 2025, underscoring its commitment to shareholder value.
- Future Outlook: Management expects capital expenditures for 2026 to range from $2.5 billion to $2.9 billion, with a projected 10% growth in adjusted EBITDA and cash flow in 2027, indicating confidence in future growth despite risks from commodity price volatility.
See More
Investment Opportunities in U.S. Pipeline Stocks
- 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.
See More
Top High-Yield Energy Stocks to Buy
- Enbridge's Stable Income: Enbridge (ENB) offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years; despite a downgrade from JP Morgan due to sluggish crude oil growth, its strong cash flow ensures continued dividend payments.
- Energy Transfer's Growth Potential: Energy Transfer (ET) attracts income investors with a 7.3% distribution yield and has signed natural gas supply agreements with multiple data center operators over the past year, benefiting from the booming construction of AI data centers.
- Enterprise Products Partners' Income Machine: Enterprise Products Partners (EPD) provides a distribution yield of approximately 6.3% and has increased distributions for 27 consecutive years; while only modest growth is expected in 2026, management projects a 10% growth in EBITDA and cash flow for 2027.
- Optimistic Industry Outlook: With ongoing demand for energy infrastructure, all three companies are actively expanding their operations, particularly in renewable energy and AI-related projects, indicating strong long-term growth potential.
See More
Enterprise Products Partners Reports Record 2025 Financial Results
- Record Financial Performance: Enterprise Products Partners achieved a record $8.7 billion in adjusted cash flow for 2025, significantly enhancing its ability to sustain a high 6.7% distribution yield, thereby attracting more investor interest.
- Expansion Projects Drive Growth: The company completed several expansion projects last year, including the Neches River Terminal and Bahia Pipeline, which helped achieve 10 volume records across its operations, further enhancing its market competitiveness.
- Future Investment Plans: The company expects to invest between $2.5 billion and $2.9 billion in growth capital projects in 2026, offset by $600 million in asset sales, to support ongoing expansion and cash flow growth.
- Strong Cash Flow Support: In the fourth quarter, the MLP's distributable cash flow covered its distribution by 1.8 times, demonstrating robust financial health and laying a solid foundation for future growth.
See More
Enterprise Products Partners Reports Record Cash Flow and Growth Outlook
- Record Cash Flow: Enterprise Products Partners generated a record $8.7 billion in adjusted cash flow for 2025, significantly enhancing its operational capacity and ensuring its 6.7% distribution remains sustainable, attracting investors seeking stable income.
- Strong Capital Expenditure: The company invested $4.4 billion in growth capital projects last year, completing several expansion initiatives that solidified its market position while laying a robust foundation for future growth.
- Future Growth Expectations: Enterprise Products Partners anticipates investing between $2.5 billion and $2.9 billion in new projects in 2026, demonstrating strong growth potential despite $600 million in asset sales, showcasing its competitiveness in the midstream market.
- Financial Stability: The company ended the year with a low leverage ratio of 3.3%, ensuring financial health that allows for continued common unit repurchases and distribution increases, further boosting investor confidence.
See More
High-Yield Energy Stock Investment Recommendations
- Stable Midstream Operations: Enterprise Products Partners (EPD) and Enbridge (ENB) offer dividend yields of 6.3% and 5.6% respectively, demonstrating strong financial performance even in low oil price environments due to their stable revenue models as midstream companies.
- Robust Dividend History: Enbridge has increased its dividend for 30 consecutive years, while Enterprise Products Partners has done so for 27 years, indicating the resilience and attractiveness of their business models, particularly for conservative income investors.
- Integrated Energy Company Transition: TotalEnergies (TTE), with a current dividend yield of 5.3%, is strategically transitioning towards clean energy, utilizing oil profits to adapt to shifting global energy demands, showcasing its forward-looking strategic positioning.
- High-Yield Investment Opportunities: Despite the volatility in the energy market, the high yields offered by Enterprise and Enbridge make them ideal for conservative investors, while TotalEnergies provides direct energy exposure for those seeking higher-risk returns.
See More
