3 No-Brainer Energy Stocks to Buy With $1,000 Right Now

Industry Overview - The U.S. is entering an unprecedented period of power demand, with electricity demand expected to grow more than 10 times faster over the next decade compared to the previous 10 years, driven by electrification in heating, transportation, electric vehicles, and AI data centers [1] Natural Gas Demand - Natural gas is projected to play a crucial role in supporting the surge in power demand, with an estimated additional consumption of 20 billion cubic feet per day (bcf/d) by 2030, increasing from 108 bcf/d last year, excluding an additional 10 bcf/d from data centers [2] Kinder Morgan - Kinder Morgan operates the largest natural gas transmission network in the U.S., with 66,000 miles of pipelines transporting over 40% of the country's gas production and owning 15% of the natural gas storage capacity [3] - The company has $5.1 billion in expansion projects, with $4.3 billion allocated for new natural gas infrastructure, including a $1.7 billion investment to expand a pipeline system to supply 1.2 bcf/d of additional gas to Southeast markets by late 2028 [4] - Kinder Morgan's growth projects are expected to enhance cash flow and dividends, currently yielding over 4%, potentially turning a $1,000 investment into over $40 of annual dividend income [5] Williams Companies - Williams operates over 33,000 miles of pipelines, handling about a third of the U.S. gas demand, with its notable Transco pipeline being the largest by volume [6] - The company has numerous gas infrastructure projects underway, expected to provide visibility into earnings growth, with an anticipated annual growth rate of 5% to 7%, supporting a similar growth rate in its more than 3% yielding dividend [7] - Williams has the potential to invest over $10 billion across 30 projects that could come online between 2026 and 2032, which would further fuel earnings and dividend growth [8] Targa Resources - Targa Resources is a leading midstream infrastructure company with significant assets in natural gas gathering, processing, and export capabilities, particularly in the Permian Basin [9] - The company has several expansion projects, including six natural gas processing plants in the Permian expected to come online by 2026, positioning it for growth in the region [10] - Targa anticipates returning 40% to 50% of its growing cash flows to investors, with a target of a 33% increase in its 1.5% yield by 2025 and plans for opportunistic share repurchases [11] Conclusion - The expected surge in power demand is set to drive robust growth in natural gas demand, providing significant opportunities for gas infrastructure companies like Kinder Morgan, Williams, and Targa Resources to expand their systems and enhance earnings and dividends, leading to strong total returns for investors [12]