In this article, we will be looking at the 11 best Pipeline and MLP Stocks to buy in 2026.
Pipeline and Master Limited Partnership (MLP) stocks represent the midstream energy companies that operate natural-gas and petroleum transport, storage, and processing networks under long-term, fee-based commercial structures. In late 2025, growth in U.S. LNG activity and natural-gas market conditions have created a favorable backdrop for Pipeline and MLP Stocks in 2026.
Accordingly, a Reuters report published on January 28, 2026, stated that U.S. crude oil and natural gas producers had successfully begun restoring output after a severe winter storm. Domestic crude production saw a peak loss of 2 million barrels per day (bpd) on January 24, 2026, but recovered significantly in the following mid-week, controlling the losses to around 600,000 bpd. In the Permian Basin, which accounts for half of U.S. crude output, production was down by approximately 250,000 bpd, or 4% of the shale play’s total capacity.
This rapid recovery directly benefits midstream energy companies and positions investors to benefit from the stocks. But which ones to choose? We have curated a list of Pipeline and MLP stocks with potential to benefit from the growing energy sector, based on their upside potential and hedge fund activity.
Stay tuned as we outline the 11 best Pipeline and MLP Stocks to buy in 2026, including the top 5 names that could merit closer consideration from investors.
Our Methodology
To compile our list of 11 best Pipeline and MLP Stocks to buy in 2026, we first screened Pipeline and MLP stocks using the Finviz stock screener. From this list, we selected stocks with positive analyst sentiment and a positive average upside potential. We then shortlisted the top 11 stocks based on upside potential and ranked them in ascending order accordingly. Additionally, we included data on hedge fund holdings in these companies, based on Q3 2025 data from Insider Monkey’s database, to provide further insight into investor interest. All the pricing data are as of market close on February 4, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Western Midstream Partners, LP (NYSE:WES)
Upside Potential: 2.98%
Number of Hedge Funds: 4
Western Midstream Partners, LP (NYSE:WES) is one of the 11 best Pipeline and MLP stocks to buy in 2026.
RBC Capital’s Elvira Scotto reiterated the Hold rating on Western Midstream Partners, LP (NYSE:WES) and maintained a price target of $42 on January 28, 2026. In contrast, Morgan Stanley maintained its Sell rating on the stock. The firm’s analyst kept a price target of $41 on Western Midstream Partners, LP (NYSE:WES).
Separately, Western Midstream Partners, LP (NYSE:WES) declared its quarterly cash distribution of $0.91 per unit for the fourth quarter of 2025, matching the previous quarter’s payout. Shareholders as of February 2, 2026, will be eligible for the payout on February 13, 2026.
Before this, the company also announced renegotiations on key natural gas contracts in the Delaware Basin with Occidental and ConocoPhillips. Western Midstream Partners, LP (NYSE:WES) transitions from legacy cost-of-service structures to simplified, fixed-fee arrangements. In exchange for these fee concessions, Occidental will transfer 15.3 million WES common units, approximately valued at $610 million, back to the partnership for redemption. With this move, the company intends to solidify its revenue through the late 2030s and diversify its customer base.
Founded in 2007, Western Midstream Partners, LP (NYSE:WES) is a master limited partnership that primarily handles the gathering, processing, and transportation of natural gas, crude oil, and NGLs across major U.S. basins, leveraging fee-based contracts. It is headquartered in Texas.
