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.
7 top pipeline stocks for 2026:
1. Enbridge
NYSE: ENB
Key Data Points
Enbridge (ENB +1.19%) 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.
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, which it expects to come online through 2033. Meanwhile, it has more projects under development.
These projects and other growth drivers should increase Enbridge's cash flow per share by at least 3% in 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 +1.53%) 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 ($4.8 billion of major capital projects under construction that should enter service by the end of 2027). 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
NYSE: KMI
Key Data Points
Kinder Morgan (KMI +0.33%) 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.
The company is capitalizing on 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. Meanwhile, it's pursuing more than $10 billion of additional expansions. 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 +1.93%) 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 to grow its earnings at a rate of more than 10% annually through 2030.
6. Energy Transfer
NYSE: ET
Key Data Points
Benefits and risks of investing in Pipeline stocks
Investing in pipeline stocks has its share of benefits and drawbacks. Some pros of investing in pipeline stocks include:
- Income: Most pipeline companies generate stable income backed by long-term fixed-rate contracts or government-regulated rate structures. That enables them to pay high-yielding dividends to their investors.
- Low volatility: Pipeline companies tend to be less volatile than the average stock.
- Potential tax advantages: Pipeline companies structured as MLPs can defer taxes on some of the distribution income they receive.
Meanwhile, some cons of pipeline investments are:
- Slower growth: Most pipeline companies tend to grow their earnings at a low-to-mid single-digit annual rate.
- Potential tax complications: MLPs send a Schedule K-1 federal tax form, which can delay and complicate your annual tax filing.
- Lower price appreciation potential: Given their higher yields and slower growth rates, pipeline companies tend to offer less price appreciation potential.
Should you invest in pipeline stocks?
Forecasters expect U.S. natural gas demand to rise between 19 bcfd and 26 bcfd by 2030 from 2025's level of 115 bcfd. The main drivers are LNG and power demand, with the latter partly driven by AI data centers. This expected surge in gas demand will fuel the need for investment in new infrastructure, including pipelines. This catalyst should enable pipeline companies to grow their earnings and dividends in the coming years. That makes them compelling investment opportunities, especially for those seeking income.
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FAQ
Pipeline stocks FAQ
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.
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