The World’s Leading Oil and Gas Partnership

Everyone’s looking for more ways to generate income in this economy. Many have realized that inflation and volatility are not about to disappear.

To fight inflation and offset its destruction of your purchasing power, you need to invest in safe, high-dividend-paying stocks… but you also need to find stocks that give you the opportunity for significant capital gains.

Right now, many investors are having a hard time finding them. However, there are always exceptions, like my #1 Oil and Gas Royalty, the “29% Account,” and the company in this report.

Here’s an under-the-radar energy opportunity that can be just as profitable as royalties over the next few years.

Pipeline Profits

Founded in 1968 and based in Houston, Texas, Enterprise Products Partners (NYSE: EPD) is an oil and gas midstream energy services company.

“Midstream” refers to the fact that the company does not produce oil and gas, but instead stores and transports them to the places where they will be refined.

Enterprise owns several of the colossal oil and gas pipelines that carry the lifeblood of the modern world. In all, its portfolio includes more than 50,000 miles of pipelines. On top of that, it has the capacity to store over 300 million barrels of NGLs (natural gas liquids), crude oil, petrochemicals, and refined products. It also has 14 billion cubic feet of natural gas storage capacity and operates a number of ports, processing plants, and refineries.

I think of Enterprise as a commodity transportation company – a pipeline operation, primarily – that acts as a toll collector for S&P 500 companies that need to ship their products.

Ever since the pandemic, the world has become more virtual than ever, which has forced many businesses, including movie theaters, restaurants, and retail stores, to rethink how they operate − especially during economic instability.

But one thing people will always need, at least for the foreseeable future, is fuel – specifically, oil and natural gas.

Although several oil and gas producers had record profits in 2022, many have had dramatic ups and downs over the years. Major oil players’ profits were down by about a third in 2023 as prices retreated from the spike caused by Russia’s invasion of Ukraine. In 2024, oil prices trended higher in the first half of the year but saw a downtrend in the second half of the year as a result of offsetting production from OPEC+ and non-OPEC+ members and weakening global demand. We saw more fluctuations in oil prices in 2025 due to the unrest in the Middle East, and it’s been more of the same so far in 2026, to say the least.

But even with geopolitical tensions, oil and gas are still essential commodities that are used in many aspects of daily life.

As a midstream company with a reliable business model, Enterprise offers you a lucrative and safe way to rake in steady profits − especially when energy prices rise. (While it doesn’t sell oil and gas, oil and gas prices may affect its stock and the stocks of other oil and gas MLPs.)

Just like a tollbooth attendant, Enterprise collects fees to the tune of billions of dollars for transporting fuel through its pipelines.

Demand for fuel is diverse, coming from transportation, electricity generation, manufacturing, and especially AI, as the already-enormous energy demand for data centers is projected to skyrocket in the coming years. This gives Enterprise plenty of oil and gas volume for charging pipeline tolls and ample room to raise prices.

Moreover, oil and gas companies are content to pay the toll, even when it periodically increases. Why? Because building and maintaining their own pipelines would be extremely expensive, time-consuming, and inefficient.

In short, oil and gas companies can use Enterprise to deliver their products to Americans across the country at a negligible cost to themselves… while generating record profits for the toll collector.

Large, Strong, and Growing

Enterprise made some big moves throughout 2025 that greatly expanded its business footprint.

The company commissioned two new natural gas processing facilities: Mentone West 1 in the Delaware Basin and Orion in the Midland Basin. These additions brought Enterprise’s total processing capacity to over 2.5 billion cubic feet per day in the Delaware Basin and 1.9 billion cubic feet per day in the Midland Basin.

In July 2025, Enterprise began operations at the Neches River Terminal in Orange County, Texas. The new facility enables loading operations for international ethane exports, highlighting the company’s flexibility and ability to meet the needs of international markets.

Enterprise also acquired natural gas gathering systems from Occidental Petroleum in the Midland Basin. Additionally, the company expects its 550-mile Bahia NGL pipeline, which will connect the Permian Basin to Enterprise’s Gulf Coast export facilities, to begin commercial operations in the near future.

Furthermore, the company’s clients include some serious heavy hitters in the oil and gas industry. Major producers like Chevron, Exxon Mobil, and Occidental Petroleum pay Enterprise to run their products through its pipelines.

With a network that big and friends and allies that powerful, it should come as no surprise that Enterprise has posted some strong results.

From 2020 to 2024, revenue more than doubled, soaring from $27.2 billion to over $56 billion. That’s 20% annual growth.

Net income grew every year in that span as well, rising from below $3.8 billion in 2020 to a record $5.9 billion in 2024.

In the third quarter of 2025, the company set nine new records across its natural gas pipelines, natural gas processing, and other businesses.

It also repurchased $300 million worth of its common shares in 2025, including at least $50 million worth in each quarter. At the end of Q3, the company increased the size of its buyback program from $2 billion to $5 billion, showing its continued commitment to rewarding shareholders.

Perhaps most importantly for income investors, distributable cash flow, or DCF, reached $2.2 billion in the fourth quarter of 2025, pushing full-year DCF to $8 billion, a 2% increase from the prior year. Management is expecting modest growth in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2026 and approximately 10% growth in 2027, which will help the company continue to boost its quarterly payouts.

Howdy, Partner…

Enterprise is structured as a master limited partnership, or MLP. As a result, investors own units, not shares, and receive distributions, not dividends.

Because of the company’s MLP status, its distribution is mostly tax-deferred, as the majority of it is considered a “return of capital.”

Return of capital is not taxed as income. Instead, it lowers your cost basis and increases your capital gains when you sell the stock.

For years, Enterprise’s distribution has been as juicy as an overripe nectarine. It currently pays a quarterly distribution of $0.55 per unit, which comes out to a 5.9% tax-deferred yield.

The company just announced the increase to $0.55 at the start of January 2026, which means it has now raised its distribution every year for 28 years. It has done so twice every year since 2022.

Big Payouts and Big Potential

Enterprise is the under-the-radar oil and gas play to make right now.

Between its terrific yield, its ability to rise along with commodity prices, and its history of raising its distribution, it really is the perfect way to play surges in oil and gas demand.

No matter what the future brings and no matter what happens in the wider world, the oil must flow…

And it will flow through Enterprise’s pipelines while you profit from the tolls.

If you act quickly, you can lock in a 5.9% yield from a Perpetual Dividend Raiser in a stable, recession-resistant industry that is set up for incredible growth in the years ahead.

Take advantage while you can.

Action to Take: Buy Enterprise Products Partners (NYSE: EPD) at market. If you are collecting the distributions, set a 25% trailing stop to protect your principal and profits. Do not set a stop if you are reinvesting the distributions. If possible, hold the stock in a taxable account since the majority of its distribution is already tax-deferred.