Pipeline companies are well positioned despite the current turmoil in the energy market. Overall, these are toll road companies where energy prices only have a moderate direct impact on the outcome.
At the same time, demand for natural gas is growing. This is due to increased power consumption from Artificial Intelligence (AI)from export demand from Mexico and from export demand for LNG (liquefied natural gas) to Asia and Europe.
Where would you invest $1,000 now? Our team of analysts revealed what they believe 10 Best Stocks Buy now. Continues “
Let’s take a look at 4 Pipeline stocks Being able to buy and hold for the long term.
Energy Transfer(NYSE:ET) It operates one of the nation’s largest integrated midstream systems with a variety of pipelines, storage and processing assets. The company is particularly located within and around the Permian Basin. The Permian Basin is the most prolific oil basin in the United States and has the lowest Breakben. While operators drill basins for oil, the wells also produce many associated natural gas. Due to flaring (combustion of natural gas), this gas must be transported and a home must be found. This leads to some of the cheapest regional prices in the country due to its abundant wealth.
This access to inexpensive natural gas gives energy transfer more opportunities for growth projects. Growth Capital Expenditures (CAPEX) have increased significantly from $3 billion in 2024 to $5 billion in 2025. One of its keystone projects is the Huberlinson Pipeline, which takes gas from the Permian to support the rise in Texas’ electricity demand, born from AI. He also signed his first contract directly with the data center developer.
Energy Transfer’s robust project backlog is set up to drive solid growth over the next few years. Meanwhile, the stock is planning to grow at a rate of 3% to 5% with an attractive 7.9% yield with a well-covered distribution.
Model of consistency, Enterprise Product Partners(NYSE:EPD) Its distribution has been increased for the 26th consecutive year. Like energy transfer, the company is positioned in the Permian period, increasing its growth potential. This year, it plans to spend between $4 billion and $4.5 billion in growth projects, starting from just $1.6 billion in 2022, from $3.9 billion a year ago.
Enterprise currently has a $7.6 billion growth forecast under construction, of which $6 billion is expected to go online at some point this year. This should help grow both this year and next year. Most of these projects are centered around the Permian Basin.
The stock has an attractive 7.1% yield with a robust 1.7x coverage ratio based on its distributable cash flow (operating cash flow to maintenance CAPEX). This was an approximately 4% increase from the previous quarter.
Image source: Getty Images.
Williams Company(NYSE: WMB) It has undoubtedly the most valuable natural gas pipeline system in Transco in the country, crossing the southeastern United States to the Gulf Coast from natural gas-rich Appalachia. Through this system, natural gas is transported to major cities in this growing region.
The beauty of Transco is that it offers Williams a number of attractive expansion projects that stem from the system. Much of this comes from utilities that are trying to switch from coal to natural gas. However, natural gas can also be sent to an LNG corridor and shipped overseas, making it suitable for data centers in the southeast. Between the first quarter of 2025 and the fourth quarter at the end of last year, there were seven transco expansion projects with targeted dates for in-services.
Williams currently has a yield of 3.5% due to his focus on growth. However, this year we plan to increase our dividend by more than 5%.
Approximately 40% of US natural gas production flows through pipes. Kindermorgan(NYSE: KMI) It plays an important role in the mid-level US sector. It also has a robust presence throughout the Permian Basin and Texas, including near Abilene, Texas. This is where the first data center will be built as part of the Stargate project.
Like other large pipeline companies, Kinder is also seeing increased opportunities for growth projects due to increased demand for natural gas. The project’s backlog increased from $3 billion at the end of 2023 to $8.8 billion at the end of the first quarter of 2025. They say the projects are built with revenues of about six times the construction rate of interest, tax, depreciation and amortization (EBITDA). That means every six dollars it spends, it generates a $1 return with EBITDA, which is equivalent to a 16.7% return. This should add a $1.5 billion increase to EBITDA from these projects over the next few years. That’s solid growth as it is expected to generate around $8.3 billion in EBITDA in 2025.
The stock currently has an attractive 4.5% yield, and has significantly improved its balance sheet over the past few years, earning leverage (net debt divided by grasping 12 months of adjusted EBITDA) from 5.1 times in 2017 to 4 times in 2024.
Consider this before purchasing inventory with Energy Transfer.
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Jeffrey Sayler We have energy transfer and enterprise product partner positions. Motley’s fool has a job at Kinder Morgan. Motley Fool recommends enterprise product partners. To Motley’s fool Disclosure Policy.
