Here is the first energy stock I plan to buy in March

The energy sector is off to a remarkable start in 2026. Oil prices rose more than 15% at the start of the year. This requires an average gain of more than 20% in energy storage S&P 500.

I think the energy sector has enough fuel to continue rallying into 2026 and beyond. That’s why I plan to continue Buying energy stocks This March. The first one I plan to buy Energy transfer (NYSE: ET ). Here’s why I can’t wait to add to my position Master Limited Partnership (MLP) this month

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The growth rate of energy transmission revenues has slowed over the past year Effects Low oil prices, fewer organic expansion projects to complete, and no new acquisitions. However, this year will be a very different story. Energy Transfer expects to generate adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $17.5 billion to $17.9 billion this year. This is an increase of 9.2% to 11.7% year-on-year from last year’s level. This is a greater acceleration than the energy transition’s 3.2% income growth rate in 2025.

In addition to the impact of higher oil prices, energy transmission is expected to benefit from completions and multiple expansions. It completed the Dutch Flexport NGL expansion last year. Meanwhile, the company expects to complete its Mustang Draw I and II plants, Phase I of the Hugh Brunson pipeline, and several projects to supply gas to data centers in 2026.

Additionally, both of its affiliated MLPs have recently closed acquisitions. Sunoco LP Purchased Parkland in a $9.1 billion deal United States Compression Partners Closes $860 million acquisition of JW Power.

Energy transmission should grow rapidly in the coming years. It is investing between $5 billion and $5.5 billion in growth capital projects this year. This investment will help fund those entering service this year, as well as those with later service dates.

For example, Energy Transfer expects to finish the second phase of the $2.7 billion Haug Brinson pipeline early next year, while the $5.6 billion Transwestern pipeline expansion project is expected to complete in the fourth quarter of 2029.

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

Rising energy transfer revenues should fuel it to continue to increase the high-yielding dividend (7.2% current yield). It plans to increase this payout by 3% to 5% annually.

The growth rate of energy transmission is accelerating as it completes development projects. It has many more expansions under construction and even under development. Add this growth to its high-yielding distribution, and energy transport could deliver high-octane total revenue in 2026 and beyond. Strong return potential is why I plan to make this the first energy stock I buy this month.

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* Stock Advisor returns to March 1, 2026.

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

Here is the first energy stock I plan to buy in March originally posted by The Motley Fool