2 Pipeline Stocks to Buy in February

For investors seeking income from their portfolios, pipeline stocks are a popular option. Pipeline operators are energy middlemen who get fees for transporting, processing, and storing oil and gas.

These companies tend to have stable fee-based income that is independent from spot oil and gas prices and are highly appealing for investors looking to generate income from their portfolios through steady dividends. If this sounds good to you, here are two pipeline stocks to buy in February.

Image source: Getty Images.

U.S. oil and natural gas production is booming

Over the past several years, the United States has grown its oil and natural gas production. In 2025, the United States produced a record 13.6 million barrels of oil per day. Meanwhile, the United States is the world's largest producer and exporter of liquefied natural gas (LNG).

In addition, U.S. dry natural gas production reached record levels in 2024, exceeding 37.7 trillion cubic feet. This has helped the United States expand on its position as the top global LNG exporter, which it has held since 2023. A lot of this has been driven by demand from Europe to replace Russian gas, as well as by growing markets across Asia.

Enterprise Products Partners (NYSE: EPD) owns and operates energy infrastructure, including pipelines, storage facilities, and export terminals across the United States. With over 50,000 miles of pipelines, Enterprise Products is one of the largest pipeline operators in the United States.

As a high-volume processor and exporter that helps producers keep drilling, Enterprise Products is a key player with the infrastructure to support record-breaking U.S. production. To build on its position, the company is bringing online 900 million cubic feet per day of new Permian gas-processing capacity by mid- to late 2026.

One thing to keep in mind is that Enterprise Products Partners operates as a master limited partnership (MLP), which has unique tax treatment. That said, Enterprise Products has done an excellent job of growing its dividend for investors. It is backed by stable fee-based income and has raised its payout for 27 consecutive years, and pays a very healthy dividend yielding 6.6%.

Kinder Morgan (NYSE: KMI) is another massive company in the natural gas transportation business, accounting for about 40% of all natural gas moved in the United States. The company operates the largest natural gas pipeline network in North America, with over 66,000 miles.

Its biggest strength lies in its connections to key basins and demand centers. Its pipelines serve every major supply basin, including the Permian, Eagle Ford, Haynesville, and Marcellus basins, as well as every major demand center on the Gulf Coast, in the northeast, and in Mexico.

One key to growing natural gas demand is also from data centers. Nearly half of Kinder Morgan's $10 billion project backlog is tied to power demand, driven in part by AI data centers that require 24/7 base-load power.

For investors looking to capitalize on natural gas growth and generate steady income from their portfolios, Enterprise Products Partners and Kinder Morgan are two excellent pipeline stocks to scoop up today.

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.