Energy Transfer and Oneok Emerge as Strategic Buys Amid Geopolitical Tensions

The war with Iran is creating significant uncertainty in the energy market, leading to volatile oil prices and a surge in energy stock performance. Energy Transfer (NYSE: ET) and Oneok (NYSE: OKE) are positioned as strategic investments due to their fee-based revenue models and secured expansion projects. Energy Transfer, a master limited partnership (MLP), has seen its units rise over 15% this year, though it has gained only about 3% over the past 12 months. The company derives approximately 90% of its earnings from stable fee-based sources, insulating it from direct oil price fluctuations. Energy Transfer has a nearly 7% distribution yield and plans to increase its distribution by 3% to 5% annually through the end of the decade. Oneok has gained more than 20% this year but remains down nearly 10% over the past 12 months, offering a 4.7% dividend yield. The pipeline giant generates 85% to 90% of its earnings from fee-based sources, ensuring stable cash flow. Oneok has completed several acquisitions and has expansion projects expected to be completed by mid-2028, supporting its goal of a 3% to 4% annual dividend increase. Both companies are highlighted for their resilience against potential declines in oil prices, making them attractive options for investors seeking stability amid geopolitical tensions.