Key Points
Energy Transfer stock is cheap and has some of the best growth prospects in the space.
Enterprise Products Partners is a great sleep-well-at-night stock to own.
Western Midstream has one of the highest yields in the space and a great balance sheet.
Energy stocks have been one of the best-performing sectors in 2026, and that outperformance extends to pipeline stocks, with the Alerian MLP Index generating a more than 25% return. While master limited partnerships (MLPs) have had a strong year, the stocks still have attractive yields and are trading at historically attractive valuations.
Let's look at 3 top stocks in the space to buy this month.
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Energy Transfer
Energy Transfer (NYSE: ET) is one of my largest holdings and a stock I continue to think remains a buy today despite it being up more than 30% year to date. The reason for this is quite simple: It has some of the best growth prospects in the space and one of the cheapest valuations. Its 6.3% yield and growing distribution are also attractive.
Demand for natural gas is booming with the rise of AI data centers and increasing LNG (liquefied natural gas) exports, and Energy Transfer is in the middle of a lot of high-return projects as a result. These projects all come with long-term commitments and have a projected 5 times to 6 times earnings before interest, taxes, depreciation, and amortization (EBITDA) build rate. That means on a $1 billion project, it is expected to generate between $167 and $200 million a year in incremental EBITDA. The company currently plans to spend up to $5.9 billion in growth capital expenditures (capex) this year, setting the stage for strong growth in the coming year.
Meanwhile, the stock trades at an enterprise value-to-EBITDA (EV/EBITDA) of 8.5 based on 2026 analyst estimates, which is the lowest of the big pipeline MLPs by quite a bit.
Enterprise Products Partners
If you're looking for a stock with a great long-term track record that you can buy and forget about while collecting a nice distribution, Enterprise Products Partners (NYSE: EPD) is a top option. The company is conservative by nature and has a strong balance sheet that consists of low leverage and long-term debt locked in at low rates. The stock currently sports a 5.8% yield and has grown its payout for 28 straight years through a variety of difficult energy and economic environments.
Just because it's conservative, though, doesn't mean the company won't take advantage of good opportunities when it sees them. It plans to spend up to $4 billion in growth capex this year and currently has $6.5 billion in projects under construction. It is one of the leading NGL (natural gas liquids) transporters in the U.S. and is benefiting from Permian barrel ratios becoming more natural gas and NGL heavy.
With new projects set to come on late this year, Enterprise expects to see double-digit EBITDA and distributable cash flow (operating cash flow minus maintenance capex) growth in 2027, making now a great time to buy the stock.
Image source: Getty Images.
Western Midstream
With a 7.5% yield, Western Midstream (NYSE: WES) has one of the highest yields in the midstream space. However, that doesn't mean the stock carries more risk or has fewer growth prospects. It has low sector leverage at around 3x, while it is looking to grow its EBITDA by 4% to 5% annually. It is also targeting distribution growth of mid- to low-single digits annually.
The company has done a nice job in the past couple of years of upgrading its assets through acquisitions and divestitures. It now derives over 60% of its EBITDA from the Delaware Basin and has become one of the leading produced water gathering, disposal, and recycling companies in the basin. It is also a top-five natural gas processor in the basin and has crude pipelines as well.
If your main concern is finding a high-yield stock with a safe distribution, Western is a great option.
Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.