Rob Thummel, senior portfolio manager at Tortoise Capital, highlighted three U.S. energy stocks poised to benefit from AI-driven electricity demand and liquefied natural gas (LNG) exports. Speaking on BNN Bloomberg, Thummel emphasized that the energy sector is leading gains on the S&P 500 this year, making stock selection crucial for investors.
Entergy Corporation stands out due to its role in supporting AI development, particularly Meta projects in northern Louisiana. Thummel noted that Entergy’s growth rate is accelerating to six to eight percent, potentially higher as AI expansion continues. However, he cautioned about potential headwinds, including opposition to new utility facilities and concerns over rising electricity rates.
Energy Transfer offers a seven percent yield with anticipated five percent payout growth. Thummel described recent segment weaknesses as transitory and praised the company’s disciplined capital expenditure and declining leverage. He also highlighted Energy Transfer’s essential pipeline projects, particularly those supporting electric generation and industrial activity in Arizona.
Cheniere Energy benefits from elevated European natural gas prices and low inventories, which could boost its earnings and long-term contract opportunities. Thummel pointed out that Cheniere’s volumes are more than 95 percent booked through 2030, with feasible annual dividend growth of 10 to 15 percent. He praised the company’s high-quality cash flows and strong capital allocation strategy.