Here’s the First Energy Stock I Plan to Buy in March

The energy sector is off to a roaring start in 2026. Crude oil prices have rallied over 15% to start the year. That’s fueled a more than 20% gain in the average energy stock in the S&P 500.

I think the energy sector has plenty of fuel to continue rallying in 2026 and beyond. That’s why I plan to continue buying energy stocks this March. The first one I plan to purchase is Energy Transfer (NYSE: ET). Here’s why I can’t wait to add to my position in the master limited partnership (MLP) this month.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Energy Transfer’s earnings growth rate slowed last year due to the impact of lower oil prices, fewer organic expansion project completions, and no new acquisitions. However, this year will be a much different story. Energy Transfer expects to generate between $17.5 billion and $17.9 billion of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) this year. That implies 9.2% to 11.7% year-over-year growth from last year’s level. That’s a major acceleration from the 3.2% earnings growth rate Energy Transfer delivered in 2025.

In addition to the impact of higher oil prices, Energy Transfer expects to benefit from the completion and ramp-up of several expansions. It completed its Nederland Flexport NGL expansion last year. Meanwhile, the company expects to complete its Mustang Draw I & II plants, phase I of its Hugh Brinson Pipeline, and several projects to supply gas to data centers in 2026.

Additionally, both its affiliated MLPs recently closed acquisitions. Sunoco LP bought Parkland in a $9.1 billion deal, while USA Compression Partners closed its $860 million acquisition of J-W Power.

Energy Transfer should continue growing at an accelerated rate in the coming years. It’s investing between $5 billion and $5.5 billion into growth capital projects this year. That capital will help fund expansions entering service this year, as well as those with later in-service dates.

For example, Energy Transfer expects to finish phase II of the $2.7 billion Hugh Brinson pipeline early next year, while completing the $5.6 billion Transwestern Pipeline expansion project in the fourth quarter of 2029. Overall, Energy Transfer has projects scheduled to enter commercial service through the first quarter of 2030.

Meanwhile, the company has more projects under development. Many of its potential projects will expand its gas pipeline infrastructure to support growing demand by AI data centers and power generation facilities.

Energy Transfer’s growing earnings should give it the fuel to continue increasing its high-yielding distribution (7.2% current yield). It aims to increase that payout by 3% to 5% each year.

Energy Transfer’s growth rate is accelerating as it completes expansion projects. It has many more expansions under construction and even more in development. Add that growth to its high-yielding distribution, and Energy Transfer could deliver high-octane total returns in 2026 and beyond. That strong return potential is why I plan to make it the first energy stock I buy this month.

Before you buy stock in Energy Transfer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $519,015!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*

Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of March 1, 2026.

Matt DiLallo has positions in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Here’s the First Energy Stock I Plan to Buy in March was originally published by The Motley Fool