Energy Stocks Weathering Inflation Storms: NGS, AROC, and SM

The energy sector is facing inflationary pressures, which are affecting some assets but creating opportunities for others. Investors who ignore this mix of rising energy prices and bond yields may miss out on income-generating stocks that are more resilient to these trends.

Natural Gas Services Group (NGS) is a company that plugs into the theme of energy and inflation-resilient value stocks. Its compression fleet, long-lived equipment, and service contracts are tied to real-world gas production and midstream activity, giving investors exposure to energy infrastructure rather than just commodity prices.

Archrock (AROC) also fits this theme, with its natural gas compression fleet and service contracts offering fee-based exposure to US gas infrastructure. The company has a market value of around $5.3 billion and generates most of its cash flow from long-lived infrastructure contracts rather than spot price swings.

SM Energy (SM) is another pure-play U.S. oil and gas producer that offers direct exposure to higher oil and gas prices without straying from established, cash-generating operators.