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).”
7. Kinder Morgan, Inc. (NYSE:KMI)
Market Cap: $75.7 billion
Number of Hedge Fund Investors: 60
As one of the largest energy infrastructure companies in North America, Kinder Morgan, Inc. (NYSE:KMI) transports approximately 40% of the natural gas in the United States. The company continues to expand and announced in its Q3 earnings call on October 21 that it had added $5.4 billion in new infrastructure projects to expand its natural gas network, pushing its backlog to an all-time high of $14.4 billion. Additionally, the newly sanctioned projects are supported by at least 20-year take-or-pay contracts with creditworthy shippers.
Despite the aggressive expansion, Kinder Morgan maintains a healthy balance sheet. The company ended Q3 at approximately 3.5x debt-to-EBITDA, down from 3.8x at the end of 2025. The pipeline operator generated just over $5 billion in operating cash flow in the first nine months of 2026 and reported $230 million in free cash flow after covering its capital expenditures and dividends. KMI expects its year-end 2026 leverage ratio to finish at 3.6x, below its original budget of 3.8x
That said, not all operations are benefiting from the high energy demand. Kinder Morgan reported a 3% YoY decline in refined product volumes in Q3, reflecting a higher commodity price environment. Similarly, crude and condensate volumes witnessed an 11% decline due to the removal of Double H from service and fewer well connections at Hiland Crude.
Click here to see what Jim Cramer has to say about Kinder Morgan.
6. Eaton Corporation plc (NYSE:ETN)
Market Cap: $152.9 billion
Number of Hedge Fund Investors: 68
Eaton Corporation plc (NYSE:ETN) manufactures equipment that distributes, controls, and protects electrical power. The rising electricity demand amid the ongoing AI boom has been a major growth catalyst for the company, and it is already translating into financial results. Eaton grew its organic sales by 14% YoY in Q2 2026, while its free cash flow also surged by 14%.
However, while data centers remain a key growth driver, Eaton also achieved strong double-digit organic revenue growth in commercial and institutional, machine OEM, and distributed IT markets in Q2 2026. This reduces its reliance on a single demand driver and grants it some protection in case of a potential slowdown in AI spending.
Eaton also continues to actively expand its footprint and completed the acquisitions of Boyd Thermal and Ultra PCS earlier this year. Moreover, it announced the acquisition of Italy’s grid equipment maker COL Group in September and has also committed more than $1 billion across roughly two dozen Electrical Americas capacity projects, with 16 now in ramp-up phases.
The aggressive growth strategy is impacting Eaton’s balance sheet, and its total debt burden reached $20.6 billion at the end of Q2, up by a staggering 87% compared to the same period last year. This has weighed down its profitability, with the company reporting a 16% YoY decline in net income despite a 21% growth in revenue.
Eaton ranks 7th on our list of the 10 Best AI Energy Stocks to Buy in 2026. The top stock on this list has soared by over 125% since the beginning of the year.
5. Cheniere Energy, Inc. (NYSE:LNG)
Market Cap: $61.5 billion
Number of Hedge Fund Investors: 75
Cheniere Energy, Inc. (NYSE:LNG) is the leading LNG producer in the US and the second-largest producer globally. The company operates two LNG facilities along the Gulf Coast that export gas to foreign buyers under long-term, fixed-fee contracts, providing it with predictable cash flows.
The ongoing US-Iran war has choked around a fifth of the global LNG supply, and the disruptions could persist in the long run. The supply crunch has sent customers, especially those in Asia, scrambling to find alternatives and presenting a significant opportunity for exporters in the United States. The results are already showing, with Cheniere beating top- and bottom-line estimates in its Q3 report on October 29, and even raising its full-year earnings forecast. Its LNG revenue surged by 41.8% YoY to $6.1 billion during the quarter.
That said, Cheniere’s earnings can be heavily impacted by the Henry Hub natural gas prices, international LNG prices, and the spread between US gas prices and global LNG benchmarks. With global LNG operators aggressively expanding their production capacity, a potential global LNG supply glut also poses a significant threat. If the world’s LNG supply grows faster than demand, it could put serious pressure on international prices and regional spreads.
There is an LNG boom going on in the United States, with the country emerging as the top exporter of the super-chilled fuel in the world. Make sure you don’t miss out on the opportunity and check out our list of the 12 Best LNG Stocks to Buy in 2026.
4. The Williams Companies, Inc. (NYSE:WMB)
Market Cap: $91.6 billion
Number of Hedge Fund Investors: 79
The Williams Companies, Inc. (NYSE:WMB) owns and operates key interstate transmission pipelines, including Transco, the largest-volume interstate natural gas transmission system in the United States. Customers pay a fee on the volume of gas they transport, shielding the company from direct commodity price fluctuations and providing it with predictable cash flows.
Williams is also aiming to capitalize on the growing global appetite for American LNG. The company is investing in the Louisiana LNG project and building the related Driftwood Pipeline. Williams also completed the $5.5 billion acquisition of Momentum Midstream in September, expanding its integrated natural gas infrastructure platform in the Haynesville to serve growing Gulf Coast LNG, power, and industrial demand. These projects will help the midstream operator meet its target of +11% compound annual growth through 2030.
That said, Williams’ aggressive expansion strategy comes at a cost. The company carries almost $30.8 billion in debt and recorded a working capital deficit of $3.4 billion at the end of Q2 2026. The Momentum acquisition adds another significant investment commitment, potentially limiting the company’s financial flexibility.
Click HERE to check out our analysis on WMB’s economic moat and whether the stock is a good buy at its current valuation or not.
3. NextEra Energy, Inc. (NYSE:NEE)
Market Cap: $170 billion
Number of Hedge Fund Investors: 80
With a market cap of $170 billion, NextEra Energy, Inc. (NYSE:NEE) is the largest electric utility in the United States. Given the rising electricity demand, the company has increased its adjusted earnings per share by 9.5% YoY through the first nine months of 2026, with a target for further earnings growth of 8% or more each year from now through 2032.
A major growth catalyst for NextEra is its plan to acquire Dominion Energy in a $66.8 billion deal, potentially creating the world’s largest regulated electric utility business by market capitalization. For NextEra, the deal will give it access to the largest data center cluster in the world in Northern Virginia, while Dominion will benefit from the former’s generation-development capabilities and large scale.
That said, the potential transaction has been faced with intense regulatory and political scrutiny since its announcement earlier in May. With a number of states pressing for commitments on electric bill affordability, job protections, and clean-energy investments, regulators are increasingly viewing the transaction from the perspective of consumer protection rather than corporate efficiency.
NextEra ranks 6th in our list of Gemini Latest Stock Portfolio: 7 Top Picks. Click HERE to see which stocks outranked it.
2. Quanta Services, Inc. (NYSE:PWR)
Market Cap: $94.3 billion
Number of Hedge Fund Investors: 100
Quanta Services, Inc. (NYSE:PWR) is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries.
Quanta has become a go-to for AI data center build-outs thanks to its work in power grid updates. As a result, its total backlog reached a record $63.7 billion at the end of Q3 2026, including $41.8 billion in remaining performance obligations. The massive figure gives investors visibility into contracted work as utilities expand electricity networks and customers pursue large infrastructure projects.
Quanta Services also topped both earnings and revenue estimates in its Q3 report on October 29, with revenue, adjusted EBITDA, and adjusted diluted EPS all achieving strong double-digit growth. Management also raised its full-year adjusted EBITDA guidance to the range of $17.90 and $18.30 and revenue guidance to between $41.3 billion and $41.6 billion.
That said, while the record backlog is encouraging, it also includes estimated orders under master service agreements and certain non-fixed price contracts. Additionally, the company must successfully convert that work into revenue and cash while managing execution costs.
Polen Capital, an investment management company, stated the following regarding Quanta Services in its “Polen Focus Growth Strategy” Q3 2026 investor letter:
“Additionally, we acquired a new position in Quanta Services, Inc., North America’s largest specialty infrastructure contractor, mostly focused on the electric power grid in North America. Quanta provides end -to -end services for electric utilities, renewables developers, hyperscalers, pipelines, and industrial customers. We view the company as a picks -and -shovels beneficiary of grid modernization, rising electricity demand, and the broader infrastructure buildout. Importantly, much of this work relates to essential infrastructure needs and multi -year projects, which can be constrained by permitting, supply chain, and skilled labor availability. We believe the company’s capabilities and positioning should support growth over time.”
Quanta Services, Inc. ranks 3rd on our list of the 10 Fastest-Growing Grid Construction Stocks to Buy Now. The top stock on that list grew its revenue by over 45% in the latest quarter.
1. GE Vernova Inc. (NYSE:GEV)
Market Cap: $236.5 billion
Number of Hedge Fund Investors: 106
GE Vernova Inc. (NYSE:GEV) is the world leader in natural gas and wind turbines. The company’s equipment helps generate approximately 25% of the world’s electricity.
Given the strong power demand, GEV’s orders surged by 96% YoY to $29.3 billion in the third quarter, with Power segment orders nearly tripling on demand for gas turbines and services, lifting its total backlog to $197 billion.
Notably, GE Vernova is translating this demand into financial improvement rather than simply a very large order book. The company reported stronger-than-expected results in its Q3 report on October 28 and raised its 2026 forecasts for both revenue and free cash flow. It also doubled its share buyback authorization to $20 billion, leaving $10.1 billion available for repurchases.
At the same time, GEV also announced the acquisition of high-voltage grid equipment maker Trench Group as the company moves to expand its grid business. The $9 billion deal also strengthens the firm’s footprint in Europe and Asia and brings a backlog of about $5 billion. The transaction is expected to close in late 2027.
That said, GEV’s Wind business has been a drag, hurt by the weak onshore demand and higher offshore project costs. The company expects the segment to report EBITDA losses of between $400 million and $500 million for 2026, though third-quarter EBITDA improved to $72 million from a year-earlier loss of $61 million.
Is Jim Cramer bullish on GEV? Check out HERE.
While we acknowledge the risk and potential of GEV as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than GEV that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.
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