Ranking 3 Top Pipeline Stocks by Growth Prospects: Energy Transfer, Enterprise Products, and MPLX
Key PointsEnterprise Products Partners offers unmatched stability for a midstream energy stock.
The article ranks three pipeline stocks based on their growth prospects: Energy Transfer, Enterprise Products Partners, and MPLX. Enterprise Products Partners ranks last due to its modest growth profile, but it offers impressive stability with the strongest balance sheet in the midstream industry, having increased its distribution for 28 consecutive years.
Energy Transfer ranks second, driven by strong AI-driven natural gas contracts and aggressive investment in growth, with a focus on long-term agreements and a distribution growth target of 3–5%. MPLX ranks first due to its commitment to a 12.5% increase in distributions for both 2026 and 2027, outpacing Enterprise and Energy Transfer.
MPLX's growth is supported by a track record of 9.4% average distribution increases over the past five years and a coverage ratio of 1.3x, which should provide adequate room for distribution increases without straining the balance sheet.
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