Motley Fool released a note on midstream MLPs, suggesting the sector is undervalued compared to historical averages. They highlighted Energy Transfer (ET) and Western Midstream (WES) as strong picks due to growing demand from AI data centers and LNG exports. ET is focusing on the Permian basin and has budgeted $4.6 billion for growth projects this year. They have a 1.7x distribution coverage ratio and plan to raise the payout 3-5% annually. The stock is trading at 7.6x forward EV/EBITDA. WES recently posted record EBITDA and raised guidance. They are pushing into the water infrastructure business by acquiring Aris Water Solutions. Their leverage is low at 2.8x and the stock trades at 8.1x forward EV/EBITDA. Keep in mind these are MLPs, so you have to deal with K-1 forms during tax season.