The Iran War Means $100 Oil, and These Pipeline Stocks Are the Safest Income Play in Energy Today

Key Points
Enterprise Products Partners, Energy Transfer, MPLX, and Western Midstream Partners are compared on yield, distribution coverage, leverage, and contract quality to gauge income reliability.
Expansion projects tied to U.S. gas and export growth could lift long-term throughput, while partnership-specific risks like higher interest costs or basin concentration still matter.
- 10 stocks we like better than Enterprise Products Partners ›
WTI crude oil has surged 50% in a single month, hitting $100 a barrel more than once, and settling at $99 per barrel as of the time of this writing. The 2026 conflict with Iran has injected a massive geopolitical risk premium into energy markets. Strait of Hormuz disruption fears are real, and upstream producers are getting whipsawed by volatility.
But four midstream pipeline partnerships sit in a structurally different position: they earn fees on the volume of hydrocarbons moving through their systems, not on the price of oil itself. Higher prices incentivize more U.S. production, leading to higher throughput and more fee revenue. The Iran war scenario is a tailwind, not a threat, for these names.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Here is how the four biggest domestic pipeline MLPs stack up on the metrics that matter most for income investors: yield, distribution coverage, contract structure, leverage, and distribution growth.
1. Enterprise Products Partners (NYSE: EPD)
Enterprise Products Partners is the gold standard for midstream income. The partnership has delivered 27 consecutive years of distribution growth, a streak that survived the 2008 financial crisis, the 2014-2016 oil collapse, and COVID-19. The current quarterly distribution is $0.55 per unit, annualizing to $2.20, with a yield of 5.88% at the current unit price of $36.99.
The fee-based model held firm even as WTI dropped from $70 per barrel in Q4 2024 to $59 in Q4 2025, with the partnership still posting record volumes: natural gas processing inlet of 8.1 Bcf/d, NGL fractionation of 1.9 million BPD, and total pipeline throughput of 14.1 million BPD-equivalent. With WTI already recovered to $99, the volume incentive for Permian producers accelerates. Enterprise's Neches River NGL marine terminal Phase 2, adding ethane and LPG export capacity, is expected online in Q2 2026. CEO Jim Teague put it plainly: "Surplus U.S. energy continues to be in strong demand in international markets that seek cost competitive, reliable supply." Units are up 17.29% year-to-date.
2. Energy Transfer (NYSE: ET)
Energy Transfer operates the largest revenue base in the group at $85.54 billion for full-year 2025, with a distribution yield of 7.07% at $18.75 per unit. The current quarterly distribution is $0.335 per unit, a more than 3% increase versus Q4 2024.
The Iran scenario plays directly to Energy Transfer's infrastructure scale. The partnership has locked in Oracle data center natural gas supply agreements covering approximately 900 MMcf/d across three data centers, and its Desert Southwest expansion adds 2.3 Bcf/d of capacity at up to $5.6 billion. The Q4 EPS miss was driven by a $277 million non-cash impairment charge and $910 million in interest expense, not operational weakness.
3. MPLX (NYSE: MPLX)
MPLX has the highest distribution growth rate in this group. The partnership raised its quarterly distribution to $1.0765 per unit, a 12.5% increase year-over-year for the second consecutive year. The current yield is 7.4%
MPLX is building aggressively toward Gulf Coast export infrastructure. The Blackcomb Pipeline, a 2.5 Bcf/d Permian-to-Gulf Coast line, is expected in Q4 2026. A Gulf Coast LPG Export Terminal with 400 mbpd capacity, developed with ONEOK, is targeted for 2028. As Europe and Asia seek alternatives to Middle Eastern supply, that terminal becomes considerably more valuable. Full-year 2025 net income rose 13.78% year-over-year. Leverage stands at 3.7x, within management's 4.0x comfort level.
4. Western Midstream Partners (NYSE: WES)
Western Midstream Partners offers the highest yield in the group at 8.97%, with its most recent distribution of $0.93 per unit annualizing to $3.72.
Western Midstream is the most concentrated of the four, anchored in the Delaware Basin. Record annual natural gas throughput hit 5.2 Bcf/d in 2025, and the Aris Water Solutions acquisition created one of the largest produced-water providers in the basin, with throughput jumping 121% sequentially to 2,693 MBbls/d. The 2026 adjusted EBITDA guidance of $2.50 billion to $2.70 billion represents growth toward the upper end of the range.
The risk here is concentration: Waha Hub pricing volatility and portfoliowide crude and NGL throughput expected to decline low-to-mid single digits in 2026 are real headwinds. Western Midstream ranks fourth not because the yield is unattractive, but because the risk profile is narrower than peers.
The Common Thread
All four partnerships earn fees on volume, not commodity price. Take-or-pay and fixed-fee contract structures mean a producer who has committed pipeline capacity pays whether or not they ship.
When Hormuz disruptions push WTI toward triple digits and U.S. producers respond by drilling more, these pipelines capture that incremental volume. The income stream is structurally insulated from the volatility that punishes upstream E&P stocks in a geopolitical shock. That is the core of the safe-haven thesis, and the data support it.
Should you buy stock in Enterprise Products Partners right now?
Before you buy stock in Enterprise Products Partners, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enterprise Products Partners wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $508,877!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,328!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 189% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 19, 2026.
Austin Smith has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.