The uneducated prices setting is likely to remain favorable for upstream operations, which in turn can lead to a stable demand for transportation and storage. Also, the emerging demand for clean energy from data centers highlights the prospects of natural gas transport companies by strengthening the prospects for the Zacks oil and gas production and pipeline industry.
Industrial companies also benefit from stable income based on taxes, as most contracts are long -term. The main participants of this industry include Enbridge Inc. Enb, Kinder Morgan, Inc. BMI and Williams Companies Inc. WMB.
About the industry
The Zacks oil and gas production and pipeline industry consists of companies that own and owns the assets of the “Middle Energy” infrastructure. The properties consist of extensive pipeline networks, which carry green oil, liquids and natural gas. Central energy players also participate in natural gas treatment and storage. The company was interested in the utility gas distribution of municipal services that serve millions of retail customers throughout North America. Some companies accumulate investment in the renewable energy and energy transfer business. Firms invested in wind turbines, solar operations, geothermal projects and hydroelectric power plants. Thus, with a diversified portfolio of renewable energy projects, companies have the ability to generate additional cash flows, without stable tax -based revenue from transport assets.
What forms the future of oil and gas – manufacturing and pipeline industry?
Beautiful pipeline demand:In its latest short -term energy perspectives, the US Energy Information Administration (EIA) predicted that the average price of West Texas Intermediat (WTI) was $ 63.58 per barrel this year. Although it is less than last year’s $ 76.60 per barrel, for the EIA data, the raw material environment in 2025. It will probably be favorable for research and production activities. This means a stable demand for raw transportation and storage activities.
Stable generations of cash flows: The middle assets are eventually reserved by the shippers and therefore generate stable cash flows. Long -term contracts are usually contracts related to payment contracts, which means that shippers have to pay a minimum amount, even if they do not use “middle assets”. Thus, generations of cash flows are very predictable, which indicates that the business model is not very vulnerable to the volatility of oil and natural gas prices.
Rising demand for data centers:Industrial -owned natural gas companies are well prepared to obtain a growing need for clean energy from data centers. This is because, using their pipeline networks, “Middle Current” companies can transport natural gas to gas -fired power plants that will provide electricity in data centers.
Zacks industry ranking shows vivid prospects
Zacks oil and gas production and pipelines are a group of 10 shares in the wider Zacks oil and energy sector. Currently, the industry is occupied by the Zacks industrial rank no. 76, which entered 31% more than 250 Zacks Industries.
The rank of the Zacks industry, which is the average rank of all members’ shares, shows strong prospects for the nearest period. Our study shows that 50% of the Zacks industries are 50% over 50% compared to more than 2 to 1.
As perspectives will remain favorable, here are some shares that investors can maintain or monitor, taking into account their strong potential. But before that, let’s look at the latest industrial stock market results and its current evaluation.
Industry outperforms S&P 500 and sector
The Zacks Oil and Gas Manufacturing and Piping Industry has overtaken the Zacks S&P 500 Composite and the wider Zacks oil and energy sector in recent years.
The industry jumped 24.1% over this period compared to 21.4% of the increased S&P 500 and 9% wider growth.
One -year price performance
Current industrial assessment
Based on a 12-month value-to-company value (EV/EBITDA), the most commonly used for the assessment of multiple oil and gas production and piping reserves, the industry is currently selling 13.86x, less than the S&P 500 17.95x. However, it is above the sector 12 months EV/EBITDA-5,05x.
Over the last five years, the industry has been trading as much as 14.94x, as much as 9.31x and an average of 12.64x.
12 months of company value and EBITDA (EV/EBITDA) ratio
3 Oil and pipeline stocks that are well prepared to acquire
Children Morgan: The company is a North American Midstream Energy Major, with a stable tax -based revenue. Importantly, BMI has a strong growth potential, the growing demand for liquefied natural gas (LNG) worldwide. This is because Kinder Morgan, who is carrying the Zacks rank no. 3 (HOLD), is responsible for the transportation of nearly 40% of natural gas supplied to US LNG export facilities.
Price and consensus: BMI
Enbridge: The Midstream Giant business model has a very little effect on the volatility of oil and natural gas prices, so its cash flows are very predictable. In the second quarter 2025 During the income call, ENB, which has Zacks rating no. 2 (buy), stated that nearly 98% of its EBITDA, representing income from major operations, is obtained from long -term contracts with guaranteed minimum payments or mid -flow networks with adjustable cash flows.
Thus, unlike energy companies, Enbridge is largely protected from price volatility. Thus, the generation of cash flows from the ENB’s middle activity is very predictable.
Price and consensus: Enb
Williams companies: The company is also a leading mid -player with the ability to take advantage of the increasing demand for clean energy. This is because the WMB has a huge network of natural gas transport pipelines, which carries about 33% of all US -used natural gas.
Currently, the Zacks rating is 3, and Williams also satisfies the growing energy demand from expanding data centers. You can see A detailed list of today’s Zacks #1 (Strong Buy) stock here;
Price and consensus: WMB
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