U.S. Natural Gas Industry Thrives Amid Rising Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Source: Fool
- Consumption Growth Forecast: The U.S. natural gas consumption is projected to reach 91.4 billion cubic feet per day by 2025, with experts anticipating an additional increase of 25 Bcf/d by 2030, driven primarily by rising demands from data centers and LNG exports.
- Energy Transfer's Advantage: With over 140,000 miles of pipelines, Energy Transfer stands as a leading midstream company in North America, offering a dividend yield exceeding 7% and planning to grow its dividend by 3% to 5% annually, providing investors with a reliable income source.
- Kinder Morgan's Stability: Operating 79,000 miles of pipelines and transporting 40% of the U.S. natural gas, Kinder Morgan offers a 3.6% dividend yield, and its nine consecutive years of dividend increases make it a dependable investment, requiring only 20% of cash flow to cover dividends.
- Optimistic Market Outlook: As the demand for natural gas in the U.S. continues to rise, investor interest in midstream stocks is increasing, particularly in Energy Transfer and Kinder Morgan, which are well-positioned for a surge in export volumes.
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Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 18.860
Low
17.00
Averages
20.65
High
23.00
Current: 18.860
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stable Revenue Model: Energy Transfer and Enterprise Products generate stable returns by charging upstream and downstream companies for transportation, making them resilient to commodity price fluctuations and ensuring long-term investment safety.
- Pipeline Network Scale: Energy Transfer operates over 140,000 miles of pipeline across 44 states, while Enterprise Products manages over 50,000 miles across 27 states, providing both companies with extensive market coverage and competitive advantages.
- Sustainable Distribution Capability: In 2025, Energy Transfer achieved $8.2 billion in distributable cash flow, covering $4.6 billion in distributions, while Enterprise Products generated $7.9 billion, covering $4.8 billion, indicating both companies' strong distribution sustainability.
- Attractive Investment Opportunity: With a current P/E ratio of about 13 times and dividend yields of 7% and 5.8%, respectively, both companies present themselves as safe income investment options during market volatility, appealing to investors seeking stable returns.
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Energy Sector Strength: The energy sector has performed strongly, with Energy Transfer breaking out to new highs and experiencing a 16% year-to-date increase, supported by rising oil prices and a favorable market environment for energy stocks.
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- Pipeline Background: Since its completion in 2017, the Dakota Access pipeline has transported approximately 40% of the oil produced in North Dakota's Bakken region, although its construction faced fierce protests from environmental and tribal groups who argued it would poison local water supplies and exacerbate climate change.
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- Cloud Giants Integrate AI: Companies like Alphabet, Amazon, and Microsoft are embedding AI into their core operations, accelerating cloud revenue growth, indicating that AI will be a key driver of future business development.
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See More
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- Stable Revenue Model: Energy Transfer and Enterprise Products generate stable returns by charging upstream and downstream companies for transportation, making them resilient to commodity price fluctuations and ensuring long-term investment safety.
- Pipeline Network Scale: Energy Transfer operates over 140,000 miles of pipeline across 44 states, while Enterprise Products manages over 50,000 miles across 27 states, providing both companies with extensive market coverage and competitive advantages.
- Sustainable Distribution Capability: In 2025, Energy Transfer achieved $8.2 billion in distributable cash flow, covering $4.6 billion in distributions, while Enterprise Products generated $7.9 billion, covering $4.8 billion, indicating both companies' strong distribution sustainability.
- Attractive Investment Opportunity: With a current P/E ratio of about 13 times and dividend yields of 7% and 5.8%, respectively, both companies present themselves as safe income investment options during market volatility, appealing to investors seeking stable returns.
See More
The Dividend Safety Zone: 2 Stocks to Keep an Eye On
Market Overview: The U.S. equities market has faced challenges this year, with the S&P 500 slightly in the red, primarily due to a sell-off in mega-cap technology stocks and increasing geopolitical tensions, particularly related to Iran.
Investor Sentiment: Rising oil prices and a strengthening dollar have led to higher market volatility, prompting investors to consider more defensive positions in their portfolios, particularly in dividend-paying stocks.
Pfizer's Performance: Pfizer has shown resilience with a nearly 9.5% year-to-date stock increase, driven by its strong earnings and attractive dividend yield of 6.3%, appealing to investors seeking stability amid market uncertainty.
Energy Sector Strength: The energy sector has performed strongly, with Energy Transfer breaking out to new highs and experiencing a 16% year-to-date increase, supported by rising oil prices and a favorable market environment for energy stocks.
See More
Middle East War Triggers Global Natural Gas Supply Crisis
- Global Supply Disruption: Qatar's halt in LNG production due to Iranian attacks on key facilities has led to a 20% reduction in global LNG supply, significantly impacting markets reliant on this resource.
- U.S. Exporters Benefit: Shares of U.S. LNG producers like Cheniere and Venture Global surged approximately 7% and 24%, respectively, indicating that the U.S. will play a critical role in stabilizing the market amid global supply constraints.
- Price Surge: European natural gas futures have soared over 80% this week, primarily due to the loss of Qatari supplies, forcing the European market to compete with Asia, exacerbating the ongoing energy crisis.
- Uncertain Future: The timeline for Qatar's production resumption remains unclear due to the closure of the Strait of Hormuz, with supply disruptions expected to last 2 to 4 weeks, potentially worsening Europe's energy crisis.
See More
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- Trade Goals Set: Prime Minister Modi and Prime Minister Carney pledged to expand bilateral trade to CAD 70 billion (approximately USD 51 billion) by 2030, which will aid economic recovery and enhance interdependence between the two nations.
- Nuclear Cooperation Agreement: The leaders welcomed a CAD 2.6 billion commercial pact between Cameco and India's Department of Atomic Energy, although the previous uranium supply agreement from 2015 was not fulfilled, indicating ongoing challenges in nuclear collaboration.
- LNG Supply Potential: Carney stated that Canada aims to become a key supplier of liquefied natural gas (LNG) to India, with plans to increase LNG production to 50 million tonnes by 2030, while India plans to double the share of LNG in its energy mix, showcasing strategic complementarity in energy.
- Signs of Improved Relations: Both leaders noted significant improvements in bilateral relations over the past year, with interactions exceeding the total of the last two decades, despite lingering historical tensions, indicating potential for cooperation based on political trust and commercial logic.
See More
North Dakota Judge Finalizes $345M Judgment Against Greenpeace Over Pipeline Protests
- Judgment Outcome: A North Dakota judge has finalized a $345 million judgment against Greenpeace, reflecting the court's stance on Energy Transfer's position in the Dakota Access pipeline protests, despite the initial jury award of $667 million being nearly halved.
- Legal Action: Greenpeace has announced plans to seek a new trial and may appeal to the North Dakota Supreme Court, labeling Energy Transfer's lawsuit as a blatant attempt to silence free speech, indicating strong opposition to the legal proceedings.
- Pipeline Background: Since its completion in 2017, the Dakota Access pipeline has transported approximately 40% of the oil produced in North Dakota's Bakken region, although its construction faced fierce protests from environmental and tribal groups who argued it would poison local water supplies and exacerbate climate change.
- Industry Impact: This ruling could positively affect Energy Transfer's operations, reinforcing its position in the midstream sector, while also potentially sparking further legal disputes regarding the balance between environmental protection and energy development.
See More
Hyperscalers Plan to Invest Over $650 Billion in AI Infrastructure
- Massive Investment: The four largest hyperscalers are set to invest over $650 billion in AI infrastructure in 2023, reflecting strong confidence in AI technology and anticipated market demand.
- Chipmakers Benefit: Nvidia, as the primary GPU supplier for AI workloads, solidifies its market position with its CUDA software platform, which is expected to yield significant gains from the expansion of AI infrastructure, driving future growth.
- Cloud Giants Integrate AI: Companies like Alphabet, Amazon, and Microsoft are embedding AI into their core operations, accelerating cloud revenue growth, indicating that AI will be a key driver of future business development.
- Rising Energy Demand: With the proliferation of AI technology, energy companies like Energy Transfer are engaging in high-return projects to meet the energy needs of AI data centers, showcasing the impact of AI infrastructure development on the energy sector.
See More
