From Yahoo Finance: 2025-03-31 12:48:00

The pipeline sector offers consistent business models with robust yields and attractive distributions. Energy and pipeline companies are more disciplined, with improved balance sheets. Artificial intelligence’s growing demand for natural gas benefits pipeline companies. Three top pipeline stocks to consider for the long term include Energy Transfer, Enterprise Products Partners, and Western Midstream.

Energy Transfer boasts one of the best midstream assets in the U.S. with a cheap stock trading at an EV/EBITDA multiple of 8 times. It offers a 6.9% forward yield and plans to raise distributions by 3-5% annually. The company sees growth opportunities in AI data centers and power projects, with a focus on organic growth.

Enterprise Products Partners has increased its growth capex to $4-4.5 billion this year, signaling strong growth project opportunities in the midstream space. The company has a solid track record of increasing distributions for 26 years and carries a 6.3% yield. Its stock trades at a forward EV/EBITDA of 10 times.

Western Midstream offers the highest yield on the list at 8.5%, with plans to increase distributions by 4% in 2025. The company has a strong balance sheet, generating $1.3 billion in free cash flow last year. It recently announced the Pathfinder Pipeline project, setting up for solid growth in the future with an attractively valued stock.

Investors looking for long-term growth opportunities in the pipeline sector may find these three companies appealing. Energy Transfer, Enterprise Products Partners, and Western Midstream offer attractive yields, growth potential, and solid balance sheets in a favorable market environment.



Read more at Yahoo Finance: 3 Pipeline Stocks to Buy With $1,000 and Hold Forever