The Best Energy Stock to Invest $10,000 in Right Now

The best way to take advantage of high oil and natural prices is to buy a company that produces these vital fuels. A U.S. producer like Devon Energy (NYSE: DVN) would be a good option, since its production isn't being impacted by the geopolitical conflict in the Middle East. There's just one small problem: history is clear that today's high oil prices won't last forever.

That's why long-term investors should consider a business like Enterprise Products Partners (NYSE: EPD). The most notable feature of this investment will be its lofty 5.7% yield. But that's just part of the story behind why you might want to put $10,000 into it today.

Image source: Getty Images.

What does $10,000 of Enterprise get you?

From a purely practical point of view, $10,000 will let you buy roughly 260 units of this master limited partnership (MLP). That will generate around $570 in annual income for you, given the 5.7% distribution yield. But these are not the most important facts. What you are getting when you buy Enterprise Products Partners is a rock-solid energy business.

Enterprise operates in the midstream segment of the broader energy sector. It owns energy infrastructure, including pipelines, storage, and transportation assets. It basically connects the upstream (production) to the downstream (chemicals and refining) and the rest of the world. Unlike upstream and downstream businesses, which tend to be commodity-driven, midstream players like Enterprise largely use a toll-taker model.

Essentially, Enterprise charges fees for the use of its energy infrastructure. That means that the volume of energy moving through its system is more important than the price of what is being moved. Energy is vital to the global economy, so volumes tend to remain robust regardless of oil prices. This changes the equation for investors in a big way.

Enterprise produces reliable income from a strong foundation

High yields are normal in the midstream sector. But Enterprise also stands out for the consistent growth of its distribution, which has increased annually for 27 consecutive years. That's basically as long as the MLP has been publicly traded.

One of Enterprise's other attractions is its financial strength. It has an investment-grade-rated balance sheet, and its distributable cash flow covered its distribution by a very impressive 1.7x in 2025. There is a huge amount of leeway here for adversity. Right now, it is also important to note that Enterprise operates in North America, far from the conflict in the Middle East. North American energy markets could also see increased demand in the long term if energy security becomes more important to countries worldwide.

EPD data by YCharts

On the growth front, Enterprise has $5.3 billion worth of capital investment projects in the works. Some of the current projects run through the end of 2027, providing the MLP with a multi-year growth opportunity. If history is any guide, Enterprise will add more to that backlog of work over time. Occasionally, the MLP also buys assets. All in, slow-and-steady business growth is the goal.

Enterprise will keep paying you even when oil prices decline

Enterprise Products Partners will clearly be favored by income-focused investors. But reinvesting the distribution over time has resulted in a total return of 4,400% since the MLP's initial public offering. Over that same span, the S&P 500 index's (SNPINDEX: ^GSPC) total return was a little under 1,000%. So even growth investors should take a closer look here.

The key is that when oil prices fall, which history is clear will eventually happen, Enterprise will keep paying you well to own it. That will be a difficult time for energy investors, as stock prices will be weak, particularly for focused upstream producers. Buy Enterprise, however, and you can watch your lofty distribution checks roll in rather than focusing on weak stock prices.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.