Energy security is back on the front page as conflict in the Middle East disrupts shipping routes and bunker buying patterns, pushing buyers toward shorter fuel contracts and new refuelling hubs. That kind of supply fragility shines a light on the value of pipes and storage that sit on stable ground. Investors looking at midstream pipeline operators now are effectively shopping for toll roads on a crowded highway. This article walks through three of the most interesting stocks from the US Midstream Oil and Gas Pipeline Operators screener and explains what sets each one apart.
The three stocks covered below are just a sample, and the full screen surfaced 19 more midstream operators with equally compelling narratives that do not fit into this short list. If you want to go straight to the source and identify your own highest conviction pipeline plays, head into the US Midstream Oil and Gas Pipeline Operators screener.
ONEOK (OKE)
ONEOK plugs directly into the US midstream theme through its large natural gas and NGL pipeline, storage, and export system that links key basins like the Permian and Mid Continent to Gulf Coast refuelling and shipping hubs.
ONEOK generates most of its US$43.2b revenue from refined products and crude at about US$19.5b, natural gas liquids at roughly US$16.1b, and gas gathering and processing at about US$7.5b, all within the United States, and is valued at roughly US$58.0b.
For investors who want a pure midstream play geared to US policy support for energy infrastructure, ONEOK is one of the clearest ways to get exposure to higher volumes flowing through pipes and export docks without taking direct drilling risk.
"Growing exposure to export markets through the Texas City LPG export joint venture, which is being built for 200,000 barrels per day of capacity and is already 80% contracted with long term customers, is expected to increase export related fee income and support earnings and cash flow as volumes ramp."
What happens to future margins and cash generation hinges on how one unseen pressure in this build out ultimately resolves.
That pressure point is exactly what the full narrative for ONEOK unpacks. It shows where export growth could accelerate, where contracts may cap upside, and which risks might be overstated.
Chevron (CVX)
Chevron ties into the midstream theme through the pipelines, storage and LNG logistics that sit inside its integrated oil and gas and chemicals business, giving you exposure to energy transport infrastructure without losing the scale of a global supermajor.
Chevron runs global upstream and downstream operations that produce, transport, refine and market oil, gas, LNG and fuels, with about US$107.7b from Upstream and roughly US$161.2b from Downstream activities, and the group is valued at around US$435.6b.
"The push to "unleash American energy" also amplifies demand for midstream services as upstream production ramps up, particularly in regions like Alaska and offshore areas reopened for drilling. Pipelines and storage facilities will be critical to moving larger volumes of oil and gas efficiently, especially with the renewed emphasis on LNG exports to meet global demand."
What happens to Chevron’s future midstream cash generation depends on how one quiet shift in its project mix and cost base ultimately plays out.
That quiet shift is exactly where the story gets interesting, and the full narrative for Chevron shows how Chevron’s midstream role could accelerate or stall as the project mix evolves.
Cheniere Energy (LNG)
Cheniere Energy is effectively the LNG export gateway for US gas, running the Sabine Pass and Corpus Christi terminals plus the Creole Trail and Corpus Christi pipelines that feed them, with its Oil & Gas Integrated segment generating about US$20.9b and the company valued near US$57.8b.
For an investor focused on energy security and midstream infrastructure, Cheniere Energy is where liquefaction plants, storage tanks, and feeder pipelines all meet policy support for faster LNG export build outs.
"Pipelines and storage facilities will be critical to moving larger volumes of oil and gas efficiently, especially with the renewed emphasis on LNG exports to meet global demand."
What happens to future LNG cash generation hinges on how one long term contract and capacity equation ultimately resolves for Cheniere.
That contract and capacity puzzle is where the full narrative for Cheniere Energy shows how Cheniere Energy’s liquefaction build out, shipping optionality and risk profile could be quietly accelerating.
Seeking Fresh Alternatives Before They Fly
Fresh ideas move first. The best breakout stories often gain momentum quietly, then run fast once the crowd catches on. Scan these under the radar for now screens and review them carefully before taking any action.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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