Hot Picks: Energy stock picks as global LNG demand rises

Energy markets have been volatile since conflict in the Middle East disrupted global supply expectations and pushed international natural gas prices higher. The shift is creating opportunities for U.S. liquefied natural gas exporters and large oil producers.

BNN Bloomberg spoke with Rob Thummel, senior portfolio manager at Tortoise Capital, about energy stocks that could benefit from rising global LNG demand, stronger commodity prices and shifting investor flows.

Key Takeaways

• Higher international natural gas prices compared with U.S. prices are encouraging more global buyers to purchase American LNG exports.
• Demand growth for liquefied natural gas is expected to support export infrastructure operators as the U.S. strengthens its role as a global supplier.
• Natural gas is increasingly seen as a critical fuel for electricity generation as power demand rises globally.
• Oil majors benefit from higher commodity prices and refining margins during periods of geopolitical tension.
• Investor rotation out of mega-cap technology stocks may continue to drive capital into asset-heavy energy companies.

Read the full transcript below:

ANDREW: Hot Picks. We’re focusing on energy. Our guest has Cheniere Energy as a top selection. It’s a huge exporter of LNG, and the threat — in fact the cutoff — of LNG supplies from the Gulf looks like an opportunity for U.S. natural gas companies. We’re joined by Rob Thummel, senior portfolio manager at Tortoise Capital. Rob, thanks very much indeed for joining us. Give us your thesis on Cheniere Energy, please.

ROB: Yeah, Andrew, you’re right. If you look at what international natural gas prices have done since the war, they’ve gone up tremendously, and U.S. natural gas prices have not. So there’s an opportunity, I think, that we’ll see growth in demand for U.S. LNG — liquefied natural gas — to be exported to countries throughout the world, whether it’s Europe, Asia or South America as well. So there’s some growth potential there, we think, for Cheniere. Cheniere is already the largest exporter of LNG in the U.S., one of the largest exporters of LNG in the world. And as you know, the U.S. is the largest LNG exporter in the world as well.

ANDREW: Yeah. And I mean, Qatar has been frustrated for years. They said they’re a reliable, stable supplier, but now they’ve had to shut down some production or exports.

ROB: Yeah. And it doesn’t come back quickly. As you know, turning these LNG facilities on and off is not easy to do. It takes time. So there will be opportunities for Cheniere to pick up some extra cash flow while Qatar is waiting to come back online.

ANDREW: Your next idea, EQT. And of course that is a huge player in shale and natural gas.

ROB: Yeah, we like EQT at Tortoise because we think natural gas has huge potential going forward. Natural gas is starting to be recognized as a really important commodity, especially as electricity becomes the new oil. Natural gas is the largest fuel source used to generate electricity, and EQT is one of the largest producers of natural gas in the U.S.

ANDREW: I wonder what could go wrong here. I guess a surplus of natural gas. America has been producing so much. Maybe we could put up a five-year chart for natural gas itself. There is a risk, I guess, that too much natural gas will be developed.

ROB: There’s always that risk, and you’re right — that would result in the price coming down, and that wouldn’t necessarily be as good for EQT in the short term. What I would say about that, though, is I’m not looking at EQT for the next week or two or month or two. I’m looking at it over the next six to 12 months and beyond that because of the role natural gas is going to play and the demand for natural gas, which is really expected to grow over the next couple of decades.

ANDREW: And then finally, good old Exxon. You see upside here?

ROB: Well, Exxon really captures what’s been going on in the energy markets right now. Obviously refining margins are higher, oil prices are higher, natural gas prices are higher. Exxon encapsulates all of that in one individual stock. I should preface this: nobody wins in war, and we’re not trying to pick stocks that simply benefit from what’s going on with rising tensions in the Middle East. Exxon will benefit from higher commodity prices in the near term, but longer term the U.S. is going to need to play a more critical role globally in providing the world with more energy. And Exxon will be one of the companies that does that.

ANDREW: It is interesting. We talked to somebody, yes, a defence analyst, who said that America of course has lots of its own oil and is a major exporter, but it still uses a lot of oil. Global oil prices, unlike natural gas prices, tend to rise and fall together. Natural gas is still somewhat trapped in North America. So it’s a threat to the U.S. economy if oil gets more expensive.

ROB: Absolutely, you’re correct. That’s why we’d like to see ships start moving out of the strait so oil prices can come down. Oil is not only a threat to the U.S. economy, it’s a threat to the global economy if oil prices get too high. So I think it’s important that oil prices come down to more reasonable levels so the global economy can keep growing and the U.S. economy can keep growing. And fortunately we have Canada, Andrew, providing oil to the U.S. as well.

ANDREW: Oh yeah, that’s right, about four million barrels a day or so. Maybe we could put up a one-year comparison for Exxon and the S&P 500, because my numbers show Exxon is up about 40 per cent in the past year, and that’s twice the gain in the S&P 500.

ROB: Yeah, I think what happened is a lot of investors in the S&P 500 were invested in mega-cap tech. Then they started looking at where they were underallocated, where they hadn’t invested. Energy is a place where they hadn’t invested for years. Exxon was one of those companies investors had not invested in for years. But as they started digging into it, they realized energy is going to be here for a long time. Energy is really important. Oil prices are probably going to be more stable now. Exxon generates a lot of free cash flow, it’s going to grow its production, grow its free cash flow, increase its dividend and continue to buy back stock. So I think investors decided a little rotation has been going on for a while, and we think it could continue with mega-cap tech being sold and energy stocks like Exxon being bought.

ANDREW: Thank you very much indeed for joining us, Rob. It’s always great hearing from you.

ROB: Thank you, Andrew.

ANDREW: Rob Thummel, senior portfolio manager at Tortoise Capital.

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This BNN Bloomberg summary and transcript of the March 11, 2026 interview with Rob Thummel are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.