Investors weighing midstream energy stocks must balance EPD's K-1 tax complexity, ENB's currency-sensitive ultra-high yield, and KMI's natural gas-focused growth strategy.
Record EBITDA, 1.9x distribution coverage, and low leverage support a safe and growing distribution, though K-1 tax complexity is a risk.
Diversified regulated cash flows, C$41B secured growth backlog, and high yield make it attractive, but FX volatility and elevated leverage are concerns.
Natural gas-focused growth, improving credit metrics, and a conservative payout policy support dividend growth, though historical cut lingers.
Pipeline operators EPD, ENB, and KMI offer stable, fee-based income for retirement portfolios, though each carries distinct tax and operational profiles. While EPD boasts record EBITDA and strong coverage, ENB provides the highest yield through a diversified utility-like model, and KMI focuses on natural gas growth with improving credit metrics.
EPD is a master limited partnership that issues a Schedule K-1 and may generate unrelated business taxable income (UBTI), which can create tax complications if held inside an IRA.
KMI is uniquely positioned with a $9.6 billion project backlog that is 92% focused on natural gas, specifically targeting rising demand from LNG exports and power generation.