3 Contract‑rich Energy Stocks With The Backlogs To Outl…
By Matt DiLallo – Apr 15, 2026 at 12:30PM EST
Key Points
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About 98% of Enbridge’s earnings come from stable sources.
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Kinder Morgan has $10 billion of commercially secured projects in its backlog.
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Oneok produces stable earnings and has several expansions in its backlog.
Enbridge
Enbridge (ENB 0.47%) is one of the largest energy infrastructure companies in North America. The Canadian company transports 30% of the oil produced in North America, 20% of U.S. gas consumption, operates the largest natural gas utility in North America by volume, and is a leading investor in renewable energy.
Government-regulated rate structures and take-or-pay contracts underpin more than 98% of Enbridge’s earnings. As a result, it produces very resilient earnings. Enbridge’s profits are so predictable that it has achieved its annual financial guidance for 20 consecutive years.
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NYSE: ENB
Enbridge
Today’s Change
(-0.47%) $-0.25
Current Price
$52.74
Key Data Points
Market Cap
$116B
Day’s Range
$52.69 – $53.19
52wk Range
$43.59 – $55.44
Volume
101K
Avg Vol
5.3M
Gross Margin
32.74%
Dividend Yield
5.16%
Enbridge pays out 60% to 70% of its stable cash flows in dividends (a current yield of 5.4%). It reinvests the remainder into growing its operations. Enbridge currently has about 39 billion Canadian dollars ($28.3 billion) of commercially secured expansion projects in its backlog, which should enter service through the early 2030s. That supports Enbridge’s expectation that it can grow its cash flow per by around 3% this year and by roughly 5% annually thereafter, giving it the fuel to continue increasing its dividend. Enbridge has raised its dividend for 31 consecutive years (in Canadian dollars).
Kinder Morgan
Kinder Morgan (KMI +0.14%) is a leading natural gas infrastructure company that transports 40% of all U.S. natural gas production. The pipeline giant is also a leading U.S. refined products and terminal operator and one of the largest carbon dioxide transporters in the country.
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NYSE: KMI
Kinder Morgan
Today’s Change
(0.14%) $0.04
Current Price
$31.70
Key Data Points
Market Cap
$70B
Day’s Range
$31.39 – $31.85
52wk Range
$25.43 – $34.73
Volume
6.2M
Avg Vol
14M
Gross Margin
34.74%
Dividend Yield
3.70%
Take-or-pay agreements, fee-based contracts, or hedges back 96% of Kinder Morgan’s cash flows. That provides it with very durable and predictable earnings. The company plans to pay out about 40% of its cash flow in dividends this year (a current yield of 3.7%), retaining the rest to reinvest in expansion projects.
Kinder Morgan currently has $10 billion of commercially secured expansions in its backlog. About 90% of its backlog is new natural gas pipelines and related infrastructure that should enter commercial service by the middle of 2030. Additionally, Kinder Morgan is pursuing another $10 billion of primarily natural gas infrastructure projects. These projects will grow the company’s earnings in the coming years, giving it more fuel to increase its dividend, which it has done for nine years in a row.
Oneok
Oneok (OKE 0.08%) is a diversified energy midstream company. It gathers, processes, transports, and stores natural gas, natural gas liquids (NGLs), crude oil, and refined products.
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NYSE: OKE
Oneok
Today’s Change
(-0.08%) $-0.07
Current Price
$84.77
Key Data Points
Market Cap
$53B
Day’s Range
$83.97 – $85.16
52wk Range
$64.02 – $95.30
Volume
1.4M
Avg Vol
5.2M
Gross Margin
18.31%
Dividend Yield
4.90%
Most of its business segments expect to get about 90% of their earnings from fee-based sources this year (the NGL segment is 85%). That provides the company with very stable cash flows to pay dividends (a 5% current yield) and to invest in expansion projects.
Oneok currently has several expansions in the backlog, including joint ventures building a new export terminal and a gas pipeline. These projects should enter commercial service by mid-2028. They will grow the company’s earnings, supporting its plans to increase its dividend by 3% to 4% per year.
Durable earnings and growth long after the Iran conflict ends
There’s growing optimism that the current ceasefire will hold, and that the sides are nearing a peace deal that will reopen the Strait of Hormuz. That would ly mean oil prices will head lower, along with oil company windfall profits.
However, it won’t have much impact on the earnings and growth profiles of contract-rich pipeline stocks. That makes them ideal energy stocks to buy and hold for dividend income and steady growth.
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About the Author
Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.
Stocks Mentioned
Oneok
NYSE: OKE
$84.73
(-0.13%)-$0.11
Enbridge
NYSE: ENB
$52.76
(-0.43%)-$0.23
Kinder Morgan
NYSE: KMI
$31.67
(+0.06%)+$0.02
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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