Key Points
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Enterprise Products Partners is a midstream giant, with energy demand being more important than energy prices.
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TotalEnergies is an integrated energy giant that has started to include electricity in the mix.
Oil and natural gas prices have always been volatile. That’s just the nature of the sector. Despite knowing this, Wall Street seems to tie itself in knots every time prices move too much in one direction. To be fair, the geopolitical concerns that are upending the energy sector today are huge, newsworthy events.
But that’s how Wall Street tends to react. What should savvy investors who are prepared to deal with energy price volatility (both good and bad) do? Here are two suggestions for investors who happen to have $100 (or any amount, really) to consider.
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Enterprise Products Partners is just a middleman
One way to avoid most of the volatility associated with energy prices is to buy an energy business that doesn’t have a huge stake in the rise and fall of oil and natural gas prices. Enterprise Products Partners (NYSE: EPD) is a great option. This midstream master limited partnership (MLP) owns energy assets, such as pipelines, that help move oil and natural gas around the world. It charges fees for the use of its assets, so the volume of the energy asset flowing through its system is more important than the price of that energy asset.
The consistency of Enterprise’s business is highlighted by its 27-year streak of annual distribution increases. That’s basically as long as the MLP has been public. Its distributable cash flow in 2025 covered its distribution by a wide 1.7x, as well, so there is a lot of wiggle room to deal with any potential adversity. When you add in a lofty 5.8% yield, you can see why dividend lovers might want to take a closer look at Enterprise even as oil markets get more complicated.
TotalEnergies is more diversified
If you want more direct exposure to energy, you should probably stick with integrated energy companies. These businesses are globally diversified and have assets across the energy value chain. This means it manages oil, natural gas, wind, solar, and other electricity-generating assets and operates in both the upstream and downstream sectors of the energy industry. That diversification helps to smooth out the impact of volatile energy prices. However, TotalEnergies (NYSE: TTE) stands out from the pack.
For starters, TotalEnergies offers an attractive 5% yield (U.S. investors must pay French taxes on dividends, though a portion of that can be claimed back at tax time). However, the really exciting difference between TotalEnergies and its peers is the company’s effort to expand in the clean energy and electricity spaces. In 2025, its integrated power division accounted for around 12% of its overall business. That provides the company with an even bigger offset to volatile energy prices than its closest peers.
Oil and gas prices go up and down
Geopolitical events have pushed oil prices higher. They will eventually come back down again if history is any guide. Enterprise Products Partners and TotalEnergies both trade for less than $100 per share and offer you a way to offset some of the inherent commodity risk you face when you invest in the energy sector. You could rush into an opportunistic energy trade, or you could think strategically about the long-term nature of the energy sector. Most investors should do the latter.
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Reuben Gregg Brewer has positions in TotalEnergies Se. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
