The Smartest Pipeline Stocks to Buy With $1,000 Right Now

Published: Monday, December 29, 2025 at 11:21 am

Pipeline Stocks Offer Attractive Investment Opportunities

Midstream master limited partnerships (MLPs), primarily pipeline companies, are currently trading at appealing valuations, presenting a potentially lucrative investment opportunity. With solid growth prospects, these companies could be a good place to invest $1,000.

Energy Transfer is highlighted as a company offering a blend of growth and yield. The company is poised to benefit from the artificial intelligence (AI) infrastructure boom, particularly through its assets in the Permian Basin, a major source of natural gas. Energy Transfer has several pipeline projects in development, including the Desert Southwest Pipeline and the Hugh Brinson Pipeline. The company also has agreements with data center operators. Energy Transfer plans to spend $5 billion on growth capital expenditures next year. The stock currently yields 8.2% and is projected to grow its distribution at a 3% to 5% yearly pace.

Western Midstream Partners is presented as a high-yield option, currently yielding 9.2%. The company is targeting mid- to low-single-digit annual increases. Western Midstream recently acquired Aris Water Solutions and is building a produced water pipeline. These projects are slated to begin operations in the first half of 2027.

Genesis Energy is presented as a turnaround story. The company sold its soda ash business for $1.4 billion, using the proceeds to reduce debt and improve its balance sheet. Genesis Energy has a significant growth opportunity as the Shenandoah and Salamanca Gulf of Mexico oil projects linked to its offshore pipeline system begin to ramp up. The company anticipates substantial growth in segment operating profits as these projects reach their production targets.

BNN's Perspective:

While the pipeline sector presents attractive yields and potential growth, investors should carefully consider the risks associated with each company. The sector's performance is tied to energy demand and infrastructure development. Diversification and thorough due diligence are crucial before investing.

Keywords: Pipeline stocks, MLPs, Energy Transfer, Western Midstream, Genesis Energy, investment, yield, growth, Permian Basin, AI infrastructure, natural gas, high yield, turnaround, debt reduction, Shenandoah, Salamanca, Gulf of Mexico, produced water, infrastructure

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