4 Pipeline Stocks to Buy With $1,000 and Hold Forever

Industry Overview - Pipeline companies are well positioned despite disruptions in energy markets, functioning similarly to toll-road businesses where energy prices have a moderate impact on results [1] - Demand for natural gas is increasing due to rising power consumption from artificial intelligence (AI) and export demand for LNG to Asia and Europe [1] Company Summaries Energy Transfer - Energy Transfer operates one of the largest integrated midstream systems in the U.S., particularly in the Permian Basin, which has low breakeven costs [3] - The company plans to increase growth capital expenditures from $3 billion in 2024 to$5 billion in 2025, with key projects like the Hugh Brinson Pipeline to support growing power demand in Texas [4] - Energy Transfer has a robust project backlog and offers a 7.9% yield with plans to grow distributions at a rate of 3% to 5% [5] Enterprise Products Partners - Enterprise Products Partners has increased its distribution for 26 consecutive years and is also well positioned in the Permian Basin [6] - The company plans to spend $4 billion to$4.5 billion on growth projects this year, up from $3.9 billion last year [6] - Enterprise has$7.6 billion in growth projects under construction, with $6 billion expected to come online this year, and offers a 7.1$3 billion at the end of 2023 to $8.8 billion by Q1 2025, with a projected return of 16.7% on these investments [13] - The stock offers a 4.5% yield and has improved its leverage from 5.1 times in 2017 to 4 times in 2024 [14]