Trump's Energy Push Sends Pipeline Stocks Soaring

The 'unleash American energy' push by Trump in early 2025 has brought hard energy infrastructure back into focus. This shift in policy is opening up opportunities for investors looking to tap into fee-based assets tied to volume.

Three pipeline operators from the midstream universe that may be worth a closer look are Chevron (CVX), Kinder Morgan (KMI), and Williams Companies (WMB).

Chevron has an integrated role in producing, transporting, and storing hydrocarbons, with a sizeable owned pipeline and storage network. The company's global energy and chemicals business generated about US$55.1b from International Upstream, US$52.6b from US Upstream, US$78.8b from International Downstream, and US$82.5b from US Downstream.

Kinder Morgan is one of the purest midstream plays, with its vast natural gas pipeline and storage network directly tied to moving higher volumes from US production zones to utilities, LNG export facilities, and industrial users. The company has a large opportunity set of roughly $10b in natural gas projects that are not yet in Kinder Morgan's sanctioned backlog.

Williams Companies plays into the US midstream pipeline theme through its Transco interstate gas network and storage assets, which help move molecules from shale basins to power plants and LNG docks. The company has large-scale expansions of its pipeline network underway or recently placed in service to meet surging power, LNG export, and data center demand.

The real swing factor for these companies is how policy can tilt the balance between throughput pricing, margins, and cash returns.