Key Midstream Pipeline Stocks Amid Oil Market Shifts

The oil market is currently experiencing signs of oversupply, with high prices leading to decreased demand. Despite this, the infrastructure that supports the movement of hydrocarbons, such as pipelines, tanks, and terminals, remains crucial in global trade. This creates potential opportunities for investors interested in energy investments that resemble toll-road models. This article examines three midstream pipeline operators that stand out in this context.

The companies discussed here are just a subset of a broader selection, as a comprehensive midstream screen identified 19 additional U.S. pipeline operators with similarly compelling stories. For those interested in exploring these opportunities further, the U.S. Midstream Oil and Gas Pipeline Operators screener is a useful tool.

Marathon Petroleum (NYSE:MPC)

Marathon Petroleum is primarily recognized as a significant U.S. refiner, yet its Midstream division, which manages pipelines, terminals, storage, and river transport, aligns it with the midstream infrastructure theme. This connection is particularly relevant in light of recent shifts in fossil fuel policies.

Marathon Petroleum operates an integrated fuels business that includes refining crude, marketing gasoline and diesel, and maintaining an extensive Midstream network for transporting crude, refined products, and natural gas liquids. Last year, the Refining & Marketing segment generated approximately $165.1 billion in revenue, the Midstream segment contributed about $12.1 billion, and Renewable Diesel added around $4.1 billion, focusing primarily on the United States. The company has a market capitalization of roughly $106.9 billion¹.

For investors monitoring policy-driven developments, Marathon Petroleum provides a combination of large-scale refining and a Midstream platform that could benefit significantly if federal support enhances transport and storage projects linked to new production areas and LNG corridors.

“Expansion and acceleration of natural gas and NGL midstream projects at MPLX, including increased 2026 growth capex to $2.9 billion and additional processing and fractionation capacity tied to LNG, power, and industrial demand, are positioned to support mid-single-digit EBITDA growth and distribution growth that are already visible in projected cash flows and earnings.”

The critical factor is how unresolved pressures on future earnings and funding capacity interact with the midstream expansion narrative.

Kinder Morgan (NYSE:KMI)

Kinder Morgan is a major player in North America’s energy sector, with its natural gas and products pipelines closely tied to policy initiatives aimed at increasing oil, gas, and LNG transportation from newly approved fields to export hubs and power users.

The company operates a broad fee-based network, with Natural Gas Pipelines generating about $11.9 billion, Products Pipelines approximately $3 billion, Terminals around $2.2 billion, and CO2 close to $1.2 billion in revenue. Kinder Morgan’s market value is near $70.2 billion².

“The large opportunity set of roughly $10 billion in natural gas projects that are not yet in Kinder Morgan’s sanctioned backlog, including power, LNG, and industrial demand across the Southern United States, gives the company multiple avenues to add contracted volumes that can support future revenue and EBITDA growth if converted into projects.”

The key issue now is how management prioritizes a crucial capital decision that could reshape Kinder Morgan’s long-term cash generation profile.

PBF Energy (NYSE:PBF)

PBF Energy is engaged in refining fuels across major U.S. regions, with its Logistics division providing the pipeline and storage connections that align with the midstream expansion theme. Last year, refining operations produced about $38.8 billion in revenue, while Logistics contributed around $375 million. The company’s market capitalization is approximately $8.9 billion³.

PBF Energy is relevant to this analysis because its refineries directly support logistics assets that facilitate the movement and storage of higher volumes when policy supports faster infrastructure development.

“Pipelines and storage facilities will be critical to moving larger volumes of oil and gas efficiently, especially with the renewed emphasis on LNG exports to meet global demand.”

A significant factor that could alter the outlook is how a less visible cost and funding pressure interacts with PBF Energy’s efforts to maintain efficient logistics operations.

These insights are part of a broader analysis produced with the assistance of AI automation, based on data and analysis from Simply Wall St. The commentary is derived from historical data and analyst forecasts, using an unbiased methodology. It is not intended as financial advice and does not constitute a recommendation to buy or sell any stock. Simply Wall St has no position in any stocks mentioned.

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