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

The energy sector is off to a strong start in 2026. Crude oil prices increased by over 15% at the beginning of the year. This led to a more than 20% increase in the average energy stock. S&P 500.

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

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Energy Transfer’s earnings growth rate slowed last year. effect low oil prices, fewer organic expansion project completions, and no new acquisitions. But this year will be a very different story. Energy Transfer is expected to generate adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $17.5 billion to $17.9 billion this year. This represents annual growth of 9.2% to 11.7% compared to last year’s level. This is a big acceleration from Energy Transfer’s 3.2% earnings growth rate in 2025.

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

Additionally, both of the affiliated MLPs recently closed on acquisitions. Sunoco LP It purchased Parkland in a $9.1 billion deal. US Compression Partners Completed the $860 million acquisition of JW Power.

Energy Transfer should continue to grow at an increasing pace in the coming years. Between 5 and 5.5 billion dollars are being invested in growth capital projects this year. This capital will help fund expansions that come into service this year, as well as those with later in-service dates.

For example, Energy Transfer is building Phase II of the $2.7 billion Hugh Brinson pipeline. It expects to complete the phase 1 at the beginning of next year and the $5.6 billion Transwestern Pipeline expansion project in the fourth quarter of 2029. Overall, Energy Transfer has projects planned to be in commercial service by the first quarter of 2030.

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

Energy Transfer’s increased earnings will give it the fuel to continue growing its high-yield deployment (7.2% current yield). It aims to increase this payment by 3% to 5% each year.

Enerji Transfer’s growth rate is accelerating as it completes its expansion projects. There are many more expansions under construction and even in development. When you add this growth to its high-yield distribution, Energy Transfer could deliver high-octane total returns in 2026 and beyond. I plan to make this the first energy stock I buy this month because of its strong return potential.

Before buying shares in Energy Transfer, consider:

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Matt DiLallo They have positions in Energy Transfer. The Motley Fool has no position in any stocks mentioned. The Motley Fool has a feature disclosure policy.

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

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