The energy infrastructure sector refers to the essential systems and networks that generate, transport, and distribute energy from sources to consumers. Whether commodity prices rise or fall, the energy infrastructure sector remains in focus as long as there is a growing demand for energy, which is likely to be the case.
The US power demand hit its second consecutive annual high last year, driven primarily by the rapid expansion of data centers and the rise of AI applications, cryptocurrency, domestic manufacturing growth, and the general electrification of different sectors. The trend is set to continue. On October 6, the US Energy Information Administration (EIA) stated in its Short-Term Energy Outlook that the country’s power demand is expected to rise from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,288 billion kWh in 2026 and 4,356 billion kWh in 2027.
Utilities are among the biggest beneficiaries of this boom in power demand (see the 12 Best Utility Stocks to Buy Now).
Generating so much power requires as much fuel, and natural gas has emerged as a top candidate. As a result, the EIA is projecting the US natural gas supply and demand to both rise to record highs in 2026 and 2027. The ballooning American LNG sector is also contributing significantly to the natural gas demand, as the country’s operators look to tap new export markets amid the disruptions in the Middle East. This presents a significant opportunity for the midstream sector, as it plays a crucial role in transporting this gas from producers to power plants and liquefaction facilities.
Oil and gas stocks have been among the biggest gainers this year, thanks to the supply disruptions in the Middle East. Check out HERE which of these stocks hedge funds favor the most.
Midstream energy infrastructure companies earn a set fee for each barrel of oil or cubic feet of natural gas transported, stored, or processed regardless of the price of the fuel. Moreover, these operators generally sign long-term contracts, usually 5 to 20 years long, with their customers, resulting in stable cash flows. These stocks also tend to offer attractive dividend yields, making them especially appealing for income-focused investors.
That said, the investment opportunity extends beyond pipelines. The broader American energy infrastructure also includes companies operating storage terminals, processing facilities, LNG export terminals, electricity transmission networks, and other critical assets. The electrical infrastructure operators are in focus in particular, as the country’s utilities are expected to make $240 billion in capital expenditures this year to keep up with the soaring power demand.
Moreover, the opportunity is expected to sustain in the long run. According to estimates by Deloitte, the US power sector investments may need to reach $1.4 trillion between 2025 and 2030, with spending remaining high for the next two to three decades.
ALSO READ: 10 Energy and Power Stocks Drawing Strong Reactions From Jim Cramer
For investors, the most compelling opportunities may lie in companies that combine strategically located assets with long-term supply agreements, strong balance sheets, sustainable cash flows, and disciplined capital allocation.
Our Methodology
To collect data for this article, we looked up the best energy infrastructure stocks on a number of websites and then shortlisted the names that were mentioned the most times. We then arranged these stocks by the number of hedge funds invested in them at the end of Q2 2026 in the Insider Monkey database.
Why do we care about what hedge funds do? 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 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).
10. Enbridge Inc. (NYSE:ENB)
Market Cap: $108.9 billion
Number of Hedge Fund Investors: 31
Enbridge Inc. (NYSE:ENB) moves about 30% of the oil produced in North America, and almost 20% of all the gas consumed in the United States, positioning it well to capitalize on the region’s growing energy demand. The company has a low-risk, utility-like business model, with 98% of its cash flow coming from long-term, inflation-protected, rate-regulated contracts. The fee-based revenue model protects it from the cyclicality of energy prices.
Enbridge reported C$41 billion of secured growth backlog in July, giving it growth visibility into the early 2030s. The company has already approved approximately C$9 billion of projects this year, and has sanctioned up to C$20 billion in projects to drive revenue and earnings growth through the end of the decade. As a result, the pipeline operator is projecting an approximate 5% annual growth in its adjusted EBITDA and DCF per share beyond 2026
Enbridge’s attractive dividend yield of 5.74% also adds to its appeal. The company has grown its quarterly payout for 31 consecutive years, making it a strong option for income-oriented investors.
That said, Enbridge’s aggressive growth strategy comes at a cost. The company closed a C$3 billion equity offering in September, with the proceeds going towards partially funding its announced acquisitions and creating financial flexibility to fund potential future growth opportunities. Moreover, it reported a 5.1x debt-to-EBITDA ratio at the end of the second quarter, slightly above the firm’s targeted range of 4.5x to 5.0x.
Enbridge also remains 15% below its high despite its revenue doubling in the last reported quarter. Read the full analysis here.
9. Enterprise Products Partners LP (NYSE:EPD)
Market Cap: $83.7 billion
Number of Hedge Fund Investors: 32
Enterprise Products Partners LP (NYSE:EPD) owns pipelines, storage, and export terminals spanning natural gas liquids, crude, and petrochemicals.
As a master limited partnership (MLP), the company returns capital to investors through quarterly partnership cash distributions, which currently offer an attractive 5.9% forward yield. Notably, the company’s strong balance sheet allows it to have a distribution coverage ratio of 1.9x, making its payouts reliable. Moreover, EPD has grown its distribution for 28 consecutive years, putting it in an elite group of midstream Dividend Champions.
That said, investors need to know that MLPs send their owners a K-1 at tax time rather than the 1099 a company sends. These K-1s can be complicated and may require filing additional state tax returns, and can even delay an investor’s taxes as MLPs typically send them in mid-March. The complicated paperwork leads to a buyer base narrower than the business deserves.
Enterprise Products Partners reported its Q3 results on October 29, with the company exceeding estimates after handling record volumes at its Permian Basin natural gas processing plants, NGL pipelines, natural gas pipelines, and ethane marine export terminals. Enterprise also currently has $6.3 billion of growth capital projects under construction that will begin commercial operations between now and 2028, providing it with future growth avenues.
EPD ranked 8th in our list of the 10 Best Pipeline and MLP Stocks to Buy According to Hedge Funds. To see which stocks outranked it, click HERE.
8. ONEOK, Inc. (NYSE:OKE)
Market Cap: $59.5 billion
Number of Hedge Fund Investors: 43
Oneok’s balance sheet has become a major part of its investment appeal. The pipeline company closed a $9 billion minority equity investment from Apollo and its affiliates during the third quarter and used the funds to extinguish nearly $5.5 billion of debt. With the immediate improvement to adjusted debt leverage, S&P Global Ratings and Fitch upgraded their credit ratings on OKE to BBB+.
Oneok also remains focused on expansion and completed the acquisition of Brazos Midstream’s Permian Midland Basin natural gas gathering and processing assets in October. The acquisition more than doubles the company’s Midland Basin processing capacity to approximately 2.3 bcfd.
While Oneok topped earnings and revenue estimates in its Q3 report on October 27, its net income included a $336 million one-time noncash income tax benefit, or $0.53 per diluted share. The company also reported a roughly 17% increase in its total operating costs against a 6% growth in adjusted EBITDA.
ONEOK, Inc. (NYSE:OKE) boasts a robust annual dividend yield of 4.47%, putting it among the 14 Best Oil and Gas Dividend Stocks to Buy Right Now.
Andrew Hill Investment Fund stated the following regarding ONEOK, Inc. in its Q3 2026 investor letter:
“ONEOK, Inc. is a leading midstream energy company that owns the pipelines, processing facilities, and storage assets needed to move natural gas and natural gas liquids from production regions to end markets. Similar to our thesis with Cheniere, we are attracted to the company’s infrastructure-based business model, which benefits from volumes flowing through its network rather than relying on commodity price speculation. Recent acquisitions have expanded ONEOK’s footprint across the U.S. energy value chain, increasing the scale and strategic importance of its asset base. As domestic energy production continues to grow and natural gas demand remains supported by LNG exports and rising power consumption, we believe ONEOK is well positioned to benefit from these long-term trends (Click Here To Read the Letter In Detail).”
