Back to News
investment

The Best Energy Stock to Invest $1,000 in Right Now

newsfeedback@fool.com (Keith Speights)
Loading...
4 min read
0 likes
⚡ Quantum Brief
Enterprise Products Partners (EPD) is the top energy stock pick for March 2026, offering 16% YTD gains amid surging oil and gas prices driven by Middle East conflicts. The company’s 50,000-mile pipeline network and midstream assets benefit from disrupted Middle East production, boosting U.S. oil and gas demand and revenue. Unlike volatile exploration stocks, EPD provides downside protection with stable cash flow, 27 years of distribution growth, and a 5.9% yield, backed by inflation-protected contracts. Its A- credit rating, 12% average ROIC, and management’s 33% ownership stake signal financial strength and alignment with investors. Data center expansion and geopolitical tensions further support growth, making EPD a resilient, high-yield energy play.
AI Audio Summary
0:00 / 0:00
Click to play
quantum computing images (3).jpg
Quantum News · Media Library

By Keith Speights – Mar 10, 2026 at 4:47AM ESTKey PointsEnterprise Products Partners offers upside potential and downside protection.The midstream leader's distribution is also quite attractive.Military conflicts in the Middle East create tremendous uncertainty. However, they also provide significant catalysts for energy stocks. We're seeing that happen now with the U.S. and Israeli actions in Iran. What's the best energy stock to invest $1,000 in right now? I think several stand out as great picks. But my favorite is Enterprise Products Partners LP (EPD 1.28%). Image source: Getty Images. Upside potential, downside protection Investors have flocked to Enterprise Products Partners in 2026 as oil and gas prices have soared. To be sure, this pipeline stock hasn't been the biggest winner in the energy sector. Shares of oil and gas exploration companies have delivered especially large gains. However, Enterprise's unit price was up 16% year to date as of the market close on March 9, 2026. What I like most about this stock is its solid upside potential while also providing downside protection. ExpandNYSE: EPDEnterprise Products PartnersToday's Change(-1.28%) $-0.48Current Price$37.09Key Data PointsMarket Cap$80BDay's Range$36.94 - $38.2252wk Range$27.77 - $38.22Volume6.4MAvg Vol4.5MGross Margin12.86%Dividend Yield5.86% Enterprise Products Partners operates over 50,000 miles of pipeline, as well as other midstream assets, including liquids storage, natural gas processing plants, and fractionators. The demand for U.S. oil and gas typically increases when production in the Middle East is disrupted. That translates to more revenue for Enterprise. This limited partnership doesn't need geopolitical conflicts to be successful, though.

Enterprise Products Partners was already growing due to the rapid buildup of data centers, among other factors. Importantly, Enterprise Products Partners' fortunes don't rise and fall with commodity prices. The midstream leader has generated consistent cash flow during both good and bad times, including the financial crisis of 2007 through 2009, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic of 2020 through 2022.

Enterprise Products Partners' return on invested capital (ROIC) has been in the double digits every year since 2005, with an average ROIC of 12% over the last 10 years. Roughly 90% of its long-term contracts have escalation provisions that protect against inflation. The LP's balance sheet is also solid, as evidenced by Enterprise's status as the only midstream energy infrastructure company with an A- credit rating. More things to like about this midstream energy stock No discussion of Enterprise Products Partners' merits is complete without mentioning the company's juicy distribution. Despite being near its lowest level in five years, Enterprise's distribution yield remains above 5.9%. Even better, the pipeline operator has increased its distribution for 27 consecutive years.

Enterprise Products Partners recently increased its distribution by 2.8%. The LP has ample financial flexibility to fund its distributions while also buying back units. There's one other thing to add to the list of things to like about this midstream energy stock. Around one-third of Enterprise's common units are owned by its general partner's management and affiliates. That kind of skin in the game among executives is usually a good sign. Read NextMar 9, 2026 •By Reuben Gregg BrewerThe Smartest Energy Stocks to Buy With $100 Right NowMar 1, 2026 •By Matt DiLallo3 High-Yielding Dividend Stocks I Can't Wait to Buy for Passive Income in MarchFeb 26, 2026 •By Reuben Gregg BrewerWant Passive Income in 2026? 3 High-Yield Stocks to Research (and Their Risks)Feb 22, 2026 •By Courtney Carlsen2 No-Brainer High-Yield Energy Stocks to Buy for Reliable Income Right NowFeb 21, 2026 •By Keith SpeightsWhy I Can't Stop Buying This 6%-Yielding Passive Income PowerhouseFeb 17, 2026 •By Leo SunWhere Will Enterprise Products Partners (EPD) Stock Be in 5 Years?About the AuthorKeith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.TMFFishBizStocks MentionedEnterprise Products PartnersNYSE: EPD$37.09(-1.28%)-$0.48*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Read Original

Tags

aerospace-defense
energy-climate
government-funding
partnership

Source Information

Source: The Motley Fool

Discussion

0 professional contributions

Sign in to join this professional discussion.

Be the first to add a constructive contribution.