Pipeline stocks are publicly traded companies that own and operate midstream energy infrastructure. The U.S. has about 3 million miles of pipelines that transport natural gas and liquid fuels to power plants, refineries, businesses, and homes, making them essential to the country’s energy supply.
A mix of oil and gas producers, utilities, and dedicated midstream companies owns most pipelines. Midstream operators typically generate stable fee-based revenue by providing transportation capacity to producers, refiners, and utilities. Some of these pipeline-focused companies are master limited partnerships (MLPs), which offer potential tax advantages but also pose complications.
Although pipeline companies have faced headwinds from price volatility and environmental concerns that have slowed their expansion in the past, rising energy demand is driving renewed interest in new pipeline capacity.
Seven best pipeline stocks
More than 25 publicly traded midstream companies operate pipelines and related energy infrastructure. That gives investors lots of options. Here's a snapshot of some of the top pipeline stocks:
| Name and ticker | Market cap | Dividend yield |
|---|---|---|
| Enbridge (NYSE:ENB) | $105.3 billion | 5.58% |
| Enterprise Products Partners (NYSE:EPD) | $71.6 billion | 6.57% |
| Energy Transfer (NYSE:ET) | $62.3 billion | 7.25% |
| Kinder Morgan (NYSE:KMI) | $65.9 billion | 4.92% |
| MPLX (NYSE:MPLX) | $56.3 billion | 7.13% |
| Oneok (NYSE:OKE) | $47.4 billion | 6.89% |
| Williams Companies (NYSE:WMB) | $81.0 billion | 3.01% |
Market cap (short for capitalization) refers to a company's total value. To calculate market cap, simply multiply the share price by the number of shares. It's one way to evaluate how much a company is worth.
1. Enbridge
NYSE: ENB
Key Data Points
Enbridge (ENB +2.17%) operates the world's longest and most complex crude oil and liquids transportation system, moving 30% of all oil produced in North America. The Canadian corporation also operates natural gas transmission and distribution pipelines, carrying about 20% of all the gas consumed in the U.S. The company also has a growing renewable energy business, highlighted by offshore wind energy facilities in Europe.
The Canadian pipeline and utility company delivered its 31st consecutive annual dividend increase in 2026. It should have plenty of power to continue increasing its payout. The company has a top-notch financial profile and a multibillion-dollar backlog of projects under construction and in development.
Enbridge estimates that it will increase its cash flow per share at a 3% annual rate through at least 2026 and by approximately 5% annually thereafter. That should support continued dividend increases within that annual range.
2. Enterprise Products Partners
NYSE: EPD
Key Data Points
Enterprise Products Partners (EPD +4.62%) is one of the largest MLPs. The fully integrated midstream energy company operates 50,000 miles of pipelines transporting natural gas liquids (NGLs), crude oil, natural gas, petrochemicals, and refined products. It also has storage, processing, manufacturing, and export facilities.
Like Enbridge, Enterprise Products Partners has an excellent growth track record. The MLP delivered its 27th consecutive year of distribution increases in 2025 and has plenty of fuel to continue growing (up to $2.5 billion of growth capital spending in 2026). The company boasts the highest credit rating in the midstream space, giving it the financial flexibility to continue expanding through acquisitions and completing expansion projects.
3. MPLX
NYSE: MPLX
Key Data Points
MPLX (MPLX -0.09%) is an MLP formed by refining giant Marathon Petroleum (MPC +6.03%). It operates crude oil and refined product logistics assets, as well as natural gas and NGL services. Its midstream operations generate significant cash, most of which it distributes to shareholders, retaining some to help fund its continued expansion.
The MLP has increased its distribution payment every year since its formation in 2012. It has delivered a robust 11.6% compound annual distribution growth rate since 2022. MPLX should have no trouble continuing to grow its payout. It has a large slate of expansion projects under construction that it expects to complete by the end of the decade.
4. Kinder Morgan
NYSE: KMI
Key Data Points
Kinder Morgan (KMI +2.35%) is one of the biggest natural gas pipeline companies in the U.S. The pipeline corporation operates the largest natural gas transmission network, comprising 66,000 miles of pipelines that transport approximately 40% of the country's gas volume.
Kinder Morgan is also the largest independent terminal operator and transporter of refined petroleum products in North America, as well as the leader in transporting carbon dioxide.
The company benefits from surging demand for natural gas. It has secured about $10 billion in natural gas pipeline and other expansion projects it expects to complete by mid-2030. Those projects will grow Kinder Morgan's cash flow, giving it more fuel to pay dividends. It expects to deliver its ninth consecutive annual dividend increase in 2026.
5. Williams Companies
NYSE: WMB
Key Data Points
Williams Companies (WMB +3.24%) is also a large-scale natural gas pipeline company. The pipeline corporation owns and operates more than 33,000 miles of pipelines that handle about one-third of all the gas used in the U.S. each day.
Williams has a large pipeline of natural gas expansion projects that should fuel its growth in the coming years. These projects will increase the flow of gas to power-generation facilities, liquefied natural gas (LNG) export terminals, and industrial facilities.
It's also building several natural gas-fired power plants to support growing electricity demand. These projects give Williams a clear line of sight into its growth through 2030.
6. Energy Transfer
NYSE: ET
Key Data Points
Energy Transfer (ET +1.49%) is a diversified MLP with large-scale crude oil, natural gas, NGL, and refined product pipeline operations. It owns and operates more than 130,000 miles of pipelines in the U.S. It also owns stakes in two other MLPs: fuel distributor Sunoco LP (SUN +1.32%) and natural gas compression services company USA Compression Partners (USAC +0.87%).
The company also spends billions of dollars each year on expansion projects. It had several projects in the backlog, including the $2.7 billion Hugh Brinson Pipeline (late 2026 in-service date for Phase I and early 2027 for Phase II) and $5.6 billion Desert Southwest expansion of the Transwestern Pipeline System (late 2029 expected completion date). It has a strong balance sheet, giving it the flexibility to continue investing in expansion projects, making acquisitions, and increasing its distribution.
7. Oneok
NYSE: OKE
Key Data Points
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About the Author
Matt DiLallo has positions in Enbridge, Energy Transfer, Enterprise Products Partners, and Kinder Morgan. The Motley Fool has positions in and recommends Enbridge and Kinder Morgan. The Motley Fool recommends Enterprise Products Partners and Oneok. The Motley Fool has a disclosure policy.
