Energy Transfer and Enterprise Products Partners are two standout midstream master limited partnerships (MLPs) for long-term investors seeking high-yield stocks. Energy Transfer, with a robust 7.2% yield, is strategically positioned in the booming Permian Basin, benefiting from increasing natural gas demand driven by sectors like artificial intelligence. The company has a solid growth project backlog, including pipelines to serve high-demand markets, and trades at an attractive forward EV/EBITDA multiple of 8.6, well below historical averages.
Meanwhile, Enterprise Products Partners has a 6% yield and has consistently raised its distribution for 27 years, showcasing its resilience through various economic cycles. The company is focusing on cash flow generation by reducing spending and paying down debt, which supports its strong balance sheet and distribution coverage ratio of 1.8x.
Both stocks offer compelling long-term investment opportunities in the energy sector. For a deeper dive into their fundamentals and growth prospects, I recommend exploring the full article.
Source: fool.com