4 No-Brainer Pipeline Stocks to Buy Right Now Before Oil Hits $100

Core Viewpoint - The article highlights four North American pipeline operators (MPLX, Kinder Morgan, Plains All American Pipeline, and TC Energy) as attractive investment opportunities as oil prices are expected to rise towards $100 due to escalating geopolitical tensions following the death of Ayatollah Khamenei [1]. Group 1: Company Performance - MPLX has seen a year-to-date increase of 12.52% and raised its quarterly distribution to $1.08/unit, resulting in an annualized distribution of $4.31, marking a 12.5% increase for the second consecutive year [1]. - Kinder Morgan (KMI) has increased by 24.61% YTD and has a $10 billion project backlog, guiding a dividend of $1.17/share for 2026, with the current quarterly payment at $0.2925, up from $0.2775 in 2023 [1]. - Plains All American Pipeline (PAA) has risen 24.19% YTD and raised its annualized distribution by 10% to $1.67/unit, yielding approximately 8.5% [1]. - TC Energy (TRP) has increased by 16.71% YTD and announced a 3.2% increase in its annualized dividend to C$3.51/share, marking its 26th consecutive year of dividend growth [1]. Group 2: Revenue and Demand - The revenue for these companies is structurally insulated from oil price fluctuations, with TRP deriving 98% of its comparable EBITDA from rate-regulated or long-term take-or-pay contracts [1]. - KMI has a project backlog of $10 billion, primarily in natural gas, with long-term contracts to transport 8 billion cubic feet per day (Bcf/d) to LNG facilities, expected to grow to 12 Bcf/d by the end of 2028 [1]. - MPLX is allocating $2.7 billion in capital expenditures for 2026, with 90% directed towards natural gas and NGL services, including the Blackcomb Pipeline, which targets a capacity of 2.5 Bcf/d by Q4 2026 [1]. - North American natural gas demand is projected to increase by 45 Bcf/d to approximately 170 Bcf/d by 2035, indicating a strong demand for pipeline services [1]. Group 3: Valuation and Market Position - Despite strong year-to-date performance, these companies trade at modest earnings multiples, with MPLX having a trailing P/E of 12.22 and PAA's forward P/E at 10.87 [1]. - S&P upgraded KMI to BBB+ in January 2026, reflecting improvements in its balance sheet [1]. - TRP successfully placed $8.3 billion in new projects into service in 2025, all under budget by 15%, showcasing execution quality that the market has not fully priced in [1].