There are about 3 million miles of pipelines in the U.S. They safely deliver trillions of cubic feet of natural gas to power plants, industrial facilities, homes, and businesses. Billions more gallons of liquid fuels are delivered to refineries, terminals, and refueling stations. Pipelines are vital to keeping the economy supplied with fuel.
Many types of companies own energy pipelines. Oil and gas producers own pipelines to transport production from wells to refineries and market centers. Utilities will also own pipelines to transport natural gas to their power plants and distribute it to consumers.
Meanwhile, many midstream companies focus entirely on owning and operating pipelines and other energy-related infrastructure to support producers, utilities, and refiners. They are typically paid a fixed fee to allow other energy companies to utilize the capacity of their pipeline systems.
One unique aspect of the pipeline sector is that some companies have chosen to structure as master limited partnerships (MLPs) for tax purposes. These entities tend to distribute a large portion of their cash flows to investors, making them more appealing to income investors.
The U.S. pipeline industry's expansion has been under pressure in recent years due to volatile energy prices and environmental concerns. However, with energy demand surging, it's fueling demand for new pipeline capacity in the U.S.
The 7 best
7 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) | $98 billion | 5.94% |
| Enterprise Products Partners (NYSE:EPD) | $68 billion | 6.73% |
| Energy Transfer (NYSE:ET) | $62 billion | 7.21% |
| Kinder Morgan (NYSE:KMI) | $63 billion | 4.07% |
| MPLX (NYSE:MPLX) | $52 billion | 7.29% |
| Oneok (NYSE:OKE) | $51 billion | 4.92% |
| Williams Companies (NYSE:WMB) | $72 billion | 3.33% |
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.
7 Best in detail
The following are the seven best pipeline stocks in detail.
1. Enbridge
Enbridge operates the world's longest, most complex crude oil and liquids transportation system, moving 30% of all the 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.
Enbridge has a remarkable growth track record. The Canadian pipeline and utility company delivered its 30th consecutive annual dividend increase in 2025. 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. Although it's a leader in transporting fossil fuels, Enbridge is increasingly investing in cleaner energy sources such as renewables and green hydrogen energy.
2. Enterprise Products Partners
Enterprise Products Partners is one of the largest MLPs. The fully integrated midstream energy company operates 50,000 miles of pipelines transporting natural gas liquids (NGL), 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 26th consecutive year of distribution increases in 2025 and has plenty of fuel to continue growing. The company boasts the highest credit rating in the midstream space. This gives it the financial flexibility to continue expanding through acquisitions and completing expansion projects.
3. MPLX
MPLX is an MLP formed by refining giant Marathon Petroleum (MPC 0.91%). 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. MPLX should have no trouble continuing to grow its payout in the future. It has a large slate of expansion projects under construction, including two NGL fractionators for Marathon that it expects to complete in 2028 and 2029.
4. Kinder Morgan
Kinder Morgan 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 $8 billion in natural gas pipeline expansion projects it expects to complete by 2030. Those projects will grow Kinder Morgan's cash flow, giving it more fuel to pay dividends. It delivered its eighth straight annual dividend increase in 2025.
5. Williams Companies
Williams Companies 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 are expected to fuel growth in the coming years. These projects will move more gas to power-generation facilities, liquefied natural gas (LNG) export terminals, and industrial facilities.
It's also building a natural gas-fired power plant to support growing electricity demand. These projects should grow Williams' earnings by 5% to 7% annually, providing the company with the fuel to continue increasing its dividend payment.
6. Energy Transfer
Energy Transfer is a diversified MLP with large-scale crude oil, natural gas, NGL, and refined product pipeline operations. Overall, 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 0.7%) and natural gas compression services company USA Compression Partners (USAC 0.14%).
Energy Transfer is a serial acquirer. It has made several acquisitions over the years to expand and diversify its operations, including buying Lotus Midstream (2023), Crestwood Equity Partners (2023), and WTG Midstream (2024).
The company has also spent billions of dollars on expansion projects. It has a strong balance sheet, giving it the flexibility to continue investing in expansion projects, making acquisitions, and increasing its distribution.
7. ONEOK
ONEOK is one of the largest integrated energy infrastructure companies. The pipeline corporation has a strategically located, 60,000-mile pipeline network. It handles natural gas, NGLs, crude oil, refined products, and carbon dioxide.
The pipeline company has transformed its operations through a series of acquisitions in recent years. It acquired MLP Magellan Midstream for $18.8 billion in 2023, expanding its crude oil and refined petroleum products operations.
ONEOK followed that up in 2024, buying Medallion Midstream and a minority interest in EnLink for $5.9 billion. It went on to acquire the rest of EnLink for $4.3 billion later that year.
ONEOK has plenty of fuel to continue growing. It expects to capture merger synergies through 2027 and has expansion projects on track to come online through early 2028. That will enable the company to increase its dividend by 3% to 4% annually.
How to invest
How to invest in pipeline stocks
Anyone can invest in pipeline stocks. Just follow these steps to buy a pipeline stock:
- Open your brokerage account.
- Enter your selected stock ticker.
- Determine the number of shares you want to buy.
- Decide on your order type (market or limit order).
- Submit your trade.
One factor to consider before investing in pipeline stocks is whether you're comfortable with the potential tax complications of MLPs. While MLPs have tax benefits (they don't pay taxes at the corporate level), they also have drawbacks, including that these entities send their investors a Schedule K-1 federal tax form each year. You might decide that you'd rather forgo the higher yield typically offered by pipeline MLPs and buy a pipeline corporation instead.
Related investing topics
Pipeline stocks can be great income investments
Pipeline companies tend to generate very steady cash flow. They earn fees as oil and gas flow through their systems, which gives them the funds to pay attractive dividends and invest in expanding their operations. Pipeline stocks tend to be great options for investors seeking to generate some passive income.
FAQ
FAQ on pipeline stocks
Are pipelines a good investment now?
Yes, pipelines are a good investment now. Most pipeline companies generate very predictable income backed by fee-based contracts and government-regulated rate structures. That gives them the cash flow to pay attractive dividends and invest in growing their operations.
With energy demand rising, pipeline companies should be able to continue increasing their cash flows and dividends. That should enable these companies to produce attractive total returns over the long term.
What company owns the most pipelines?
Enbridge owns the largest number of pipelines in North America. The company operates the longest and most complex crude oil and liquids transportation system, at 18,085 miles. It also has 72,552 miles of natural gas pipelines (including those owned and operated by DCP Midstream). On top of all that, its utilities own 110,606 miles of gas transmission and distribution pipelines.
Does Warren Buffett own pipelines?
Yes, Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), owns pipelines through its subsidiary Berkshire Hathaway Energy (BHE). BHE Pipeline Group owns 21,000 miles of gas pipelines that transport about 14% of all gas consumed in the U.S. each year.
Why are pipeline stocks rising?
Pipeline stocks have been on the rise in recent years due to a resurgence in natural gas demand. Catalysts such as data centers, the onshoring of manufacturing, and the electrification of everything are powering a surge in electricity demand.
This factor will fuel the need for more natural gas in the future, providing pipeline companies with additional opportunities to expand. That growth potential has been driving their stock prices higher.
