Devon Energy (DVN) is positioned as a solid choice for investors looking to capitalize on high oil and natural gas prices, particularly given its insulation from geopolitical tensions in the Middle East. However, the article emphasizes that these elevated prices are unlikely to persist, making Enterprise Products Partners (EPD) a more strategic long-term investment. With a robust 5.7% yield and a business model that relies on energy infrastructure rather than commodity prices, Enterprise provides a more stable income stream.

The midstream segment, where Enterprise operates, benefits from a toll-taker model that focuses on the volume of energy transported rather than fluctuating prices. This stability is underscored by Enterprise’s impressive track record of annual distribution growth over 27 years and a strong financial position, with a 1.7x coverage ratio for its distributions. Additionally, ongoing capital projects worth $5.3 billion signal continued growth potential.

For income-focused investors, Enterprise Products Partners stands out as a reliable option, particularly during periods of declining oil prices when upstream producers may struggle. Investing in EPD not only offers attractive yields but also positions investors for long-term growth and stability amidst market volatility.

Source: fool.com