Key Points
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Enterprise Products Partners offers unmatched stability for a midstream energy stock.
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Energy Transfer’s growth is driven by accelerating natural gas demand.
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MPLX is targeting especially strong growth.
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All three are midstream giants. All three offer high yields. All three have consistently raised their distributions and generate fee-based cash flows from infrastructure that the U.S. economy cannot function without. I’m referring to Energy Transfer (TXSE: ET), Enterprise Products Partners (NYSE: EPD), and MPLX (NYSE: MPLX).
But putting aside income safety, yields, and distribution increases, which of these three pipeline stocks offers the best growth prospects? Here’s how Energy Transfer, Enterprise Products Partners, and MPLX rank from the least to most compelling growth story.
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No. 3: Enterprise Products Partners
Enterprise Products Partners earns the third-place growth ranking not because its business is deteriorating — it isn’t. However, Enterprise’s growth profile appears to be the most modest of the three stocks on our list.
To be sure, Enterprise’s backlog should support steady growth. The limited partnership’s major capital projects include Permian Basin gas processing expansions and a 92-mile extension of its Bahia pipeline. But I don’t expect Enterprise to deliver spectacular growth.
There’s good news for investors considering Enterprise Products Partners. Although you might sacrifice a little on growth, you’ll receive impressive stability in exchange. Enterprise has the strongest balance sheet in the midstream industry. The company has increased its distribution for 28 consecutive years. Roughly 90% of its long-term contracts feature escalation provisions to help offset the impact of inflation.
No. 2: Energy Transfer
Energy Transfer earns the second-place growth ranking. The company earns this spot based on the strength of its signed AI-driven natural gas contracts and a management team that has demonstrated a consistent willingness to invest aggressively in growth.
The growth catalyst portfolio is specific — and already contracted. Energy Transfer’s Hugh Brinson Pipeline has entered commercial service. A new ethane export expansion has 100% of its capacity committed under contracts running into the 2040s. New long-term natural gas transport agreements tied explicitly to AI data center power demand are being signed at an accelerating pace — with management noting it is “just not seeing the slowdown” in data center and power plant demand.
Energy Transfer targets 3–5% annual distribution growth. Importantly, the LP’s distribution is supported by a coverage ratio of roughly 2.2x, one of the strongest in the midstream industry. The Vaquero Midstream acquisition adds incremental Permian Basin processing capacity at exactly the moment when Permian natural gas volumes are accelerating.
No. 1: MPLX
MPLX earns the top growth ranking. And there’s one overriding reason: Management has publicly committed to a 12.5% increase in distributions for both 2026 and 2027. This target is well above the guidance from Enterprise Products Partners and Energy Transfer.
There’s good reason to believe that MPLX will achieve its distribution growth goal. The company has increased its distribution by an average of around 9.4% over the last five years. Its coverage ratio of 1.3x isn’t as high as some peers, but it should provide adequate room to fund distribution increases without straining the balance sheet.
Near-term growth drivers for MPLX include its new Harmon Creek III processing plant, which began operations in August 2026. The expansion of the company’s Belvieu Alternative Natural Gas (BANGL) pipeline, which will increase capacity to 300 million cubic feet per day, is another. Strong U.S. natural gas demand, driven in large part by data centers, should provide a nice tailwind for MPLX.
Highest growth, highest yield
If you’re looking for income safety and reliability, Enterprise Products Partners comes out on top. But for investors seeking strong growth, I think MPLX is the clear winner among these three midstream energy stocks.
It’s also the top pick for investors wanting a juicy yield. MPLX’s forward distribution yield of 8.2% is well above Enterprise Products Partners’ 5.9% and Energy Transfer’s 6.6%.
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Keith Speights has positions in Energy Transfer and Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
