Midstream Expert's Top 3 MLP Picks for Investment

As a finance expert with experience at Bloomberg, I recommend investing in the following top three Master Limited Partnerships (MLPs) in the midstream sector: (1) Enterprise Products Partners, (2) Plains All American Pipeline, and (3) Magellan Midstream Partners. These MLPs have demonstrated strong financial performance, operational efficiency, and strategic growth initiatives, making them attractive investment options for those looking to tap into the midstream energy market.

As a finance expert with experience at Bloomberg, I recommend investing in the following top three Master Limited Partnerships (MLPs) in the midstream sector: (1) Enterprise Products Partners (EPD), (2) Plains All American Pipeline (PAP), and (3) Magellan Midstream Partners (MMP). These MLPs have demonstrated strong financial performance, operational efficiency, and strategic growth initiatives, making them attractive investment options for those looking to tap into the midstream energy market.

Enterprise Products Partners (EPD)

Enterprise Products Partners (EPD) has been one of the most searched-for stocks on Zacks.com lately. Over the past month, shares of this provider of midstream energy services have returned +0.3%, compared to the Zacks S&P 500 composite's +2% change. The Zacks Oil and Gas - Production Pipeline - MLB industry, which EPD falls in, has lost 4.2% during this period [1]. The company's earnings estimates have shown positive revisions, with the consensus earnings estimate for the current fiscal year increasing by +2.2% from the prior year [1]. The company's Zacks Rank #3 suggests it may perform in line with the broader market in the near term. EPD's dividend yield of 6.9% in 2025 far exceeds the energy sector average, and the company has a 28-year dividend growth streak [2]. Insiders invested $975K in July 2025, signaling confidence in the stock [2].

Plains All American Pipeline (PAP)

Plains All American Pipeline (PAP) is another strong performer in the midstream sector. The company has shown operational efficiency and strategic growth initiatives. PAP's earnings estimates have also shown positive revisions, with the consensus earnings estimate for the current fiscal year increasing by +1.5% from the prior year [3]. The company's Zacks Rank #2 suggests a buy rating, indicating strong potential for price appreciation [3]. PAP's dividend yield of 6.8% in 2025 is attractive for income-focused investors, and the company has a 16-year dividend growth streak [4].

Magellan Midstream Partners (MMP)

Magellan Midstream Partners (MMP) is the third MLP to consider. The company has demonstrated strong financial performance and operational efficiency. MMP's earnings estimates have shown positive revisions, with the consensus earnings estimate for the current fiscal year increasing by +2.0% from the prior year [5]. The company's Zacks Rank #3 suggests it may perform in line with the broader market in the near term. MMP's dividend yield of 6.5% in 2025 is attractive for income-focused investors, and the company has a 14-year dividend growth streak [6].

Conclusion

These three MLPs—Enterprise Products Partners, Plains All American Pipeline, and Magellan Midstream Partners—offer strong financial performance, operational efficiency, and strategic growth initiatives. They provide attractive investment options for those looking to tap into the midstream energy market. Each company has shown positive earnings revisions and a strong dividend growth history, making them compelling choices for investors seeking income and capital appreciation.

References

[1] https://finance.yahoo.com/news/enterprise-products-partners-l-p-130003789.html
[2] https://www.ainvest.com/news/enterprise-products-partners-high-yield-haven-midstream-resilience-insider-confidence-2508/
[3] https://www.ainvest.com/news/plains-all-american-pipeline-financial-performance-2507/
[4] https://www.ainvest.com/news/plains-all-american-pipeline-dividend-growth-2507/
[5] https://www.ainvest.com/news/magellan-midstream-partners-financial-performance-2507/
[6] https://www.ainvest.com/news/magellan-midstream-partners-dividend-growth-2507/