2 Pipeline Stocks to Buy in February

Core Insights - Pipeline stocks are favored by income investors due to their reliable dividends and stable fee-based income, which is largely independent of fluctuating oil and gas prices [1][2] Industry Overview - The U.S. has seen a significant increase in oil and natural gas production, reaching a record of 13.6 million barrels of oil per day in 2025 [4] - U.S. dry natural gas production also hit record levels in 2024, exceeding 37.7 trillion cubic feet, solidifying the U.S. position as the top global LNG exporter since 2023 [5] Company Analysis: Enterprise Products Partners (EPD) - Enterprise Products Partners operates over 50,000 miles of pipelines and is one of the largest pipeline operators in the U.S. with a market cap of $76 billion [7] - The company is expanding its infrastructure with 900 million cubic feet per day of new Permian gas-processing capacity expected by mid- to late 2026 [8] - EPD has a strong dividend history, having raised its payout for 27 consecutive years, with a current dividend yield of 6.18% [9] Company Analysis: Kinder Morgan (KMI) - Kinder Morgan operates the largest natural gas pipeline network in North America, covering over 66,000 miles and accounting for about 40% of all natural gas transported in the U.S. [11] - The company has significant connections to major supply basins and demand centers, which are crucial for meeting growing natural gas demand, particularly from data centers [12] - KMI has a market cap of $67 billion and offers a dividend yield of 3.89% [10][11]