Core Viewpoint - The article highlights two pipeline stocks, Energy Transfer and Genesis Energy, as having strong upside potential for investors, particularly in the current market environment where AI stocks are gaining attention. Group 1: Energy Transfer - Energy Transfer has established one of the largest midstream systems in the U.S., handling natural gas, crude oil, NGLs, and refined products, benefiting from volume movements and regional spreads [2] - The company plans to invest approximately $5 billion in growth capital expenditures this year, an increase from $3 billion the previous year, focusing on projects in the Permian Basin [3] - The Lake Charles LNG project is progressing, which could secure long-term cash flows as global LNG demand is projected to grow by 60% by 2040 [4] - Financially, Energy Transfer is in a strong position with low leverage, expecting 90% of 2025 EBITDA from fee-based contracts, and plans to increase its distribution by 3% to 5% annually [5] Group 2: Genesis Energy - Genesis Energy has improved its financial health by selling its soda ash business for $1.4 billion, using the proceeds to reduce debt and save approximately $84 million annually in interest [7] - The company is set to benefit from two major offshore projects, Shenandoah and Salamanca, which could add up to $150 million annually in operating profit once fully operational [8] - Shenandoah Phase One is expected to reach 100,000 barrels per day by the end of September, with plans to expand capacity to 140,000 barrels per day by 2026 [9] - Despite a challenging quarter for its marine transportation segment, Genesis anticipates generating free cash flow soon and aims to reduce its revolver balance by the end of 2025, potentially allowing for distribution increases [10] - While Genesis Energy carries more risk compared to Energy Transfer, it presents greater upside potential if its projects succeed [11]