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) | $106.5 billion | 5.51% |
| Enterprise Products Partners (NYSE:EPD) | $71.8 billion | 8.17% |
| Energy Transfer (NYSE:ET) | $63.3 billion | 7.13% |
| Kinder Morgan (NYSE:KMI) | $67.8 billion | 3.82% |
| MPLX (NYSE:MPLX) | $56.9 billion | 7.06% |
| Oneok (NYSE:OKE) | $49.8 billion | 5.20% |
| Williams Companies (NYSE:WMB) | $82.1 billion | 2.97% |
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
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Enbridge (ENB -1.15%) 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
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NYSE: MPLX
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NYSE: KMI
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Kinder Morgan (KMI -1.95%) 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
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Williams Companies (WMB -1.37%) 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
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NYSE: OKE
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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.
