The oil market has been in the news, but the real story may not be geopolitical—it may be structural. As artificial intelligence drives unprecedented demand for electricity, companies that keep the grid running look like the best long-term energy plays available right now.
Marc Lichtenfeld, Chief Income Strategist at the Oxford Club, makes the case that power has quietly become a matter of picks and shovels for the AI age. Just as vendors supplying gold miners tend to outperform prospectors, the energy companies powering today’s data centers may ultimately generate returns that last longer than the attention-grabbing tech names. With US electricity demand forecast to grow about 3.5% annually through 2030, Lichtenfeld sees three stocks positioned to benefit—regardless of where oil prices stay.
Halliburton Works on On-Demand Surgery
Halliburton Company NYSE: HAL it is not a company that extracts oil from the ground. It provides the equipment and personnel that make drilling possible, giving you a different risk profile than pure play producers.
Halliburton Today
- 52 week interval
- $20.09
▼
$43.59
- Dividend Yield
- 1.69%
- The P/E ratio
- 22.14
- Target Value
- $43.27
That setup looks very attractive. US statistics have been rising for the first time in years, and the political momentum behind domestic energy production is accelerating the cycle.
As oil companies expand drilling programs, they need equipment—and Halliburton is getting paid either way.
The stock has been rising steadily, not just flat out. Lichtenfeld notes that there has been a steady rise in the title-driven pop position, which he sees as a sign of long-term demand rather than a speculative impulse.
The company has expanded operations outside the Middle East, with a significant history in US onshore fracking operations, limiting its exposure to the risk of regional conflicts.
Lichtenfeld points out that earnings growth estimates are around 23% this year for the company, with continued growth in 2028. Even at those valuations, he notes that the stock trades at a relative premium—and at 21X earnings at $40 per share, he sees a path to $60 without needing a strong valuation.
One important note: like most oil companies, Halliburton tends to lag the broader oil cycle. Contracts take time to expire, so even if energy prices go down, the revenue pipeline remains the same for months. That delay could be a factor for investors entering a time of uncertainty.
Chevron Plays Defense While Market Celebrates
Company Chevron Corporation NYSE: CVX type of check writing company Halliburton checks. As one of the world’s largest integrated oil producers, Chevron produces about four million barrels per day—about 4%-5% of global production.
Chevron Today
- 52 week interval
- $139.68
▼
$214.71
- Dividend Yield
- 3.75%
- The P/E ratio
- 32.88
- Target Value
- $205.70
What makes the current setup compelling isn’t just scale. Chevron completed its purchase of Hess Corporation in mid-2025, giving it a stake in what Lichtenfeld describes as one of the world’s highest-rated, lowest-cost oil fields off the coast of Guyana. That acquisition is expected to increase margins, earnings, and free cash flow in the coming years.
The company recently signed a long-term gas supply agreement with Microsoft NASDAQ: MSFT powering data centers in Texas—a direct line to building an AI infrastructure that most traditional energy investors don’t fully price.
Chevron gets less than 5% of its production from the Middle East, limiting its exposure to the geopolitical volatility currently rocking oil markets. it pays out a 3.8% weekly dividend, and the company has a long history of increasing that payout every year. At nearly 7X forward free cash flow, the valuation seems reasonable for Lichtenfeld for what is ultimately a defensive combination.
This is not a stock built for short-term gains. Lichtenfeld positions it as a portfolio anchor—something that quietly compounds over five to 10 years while absorbing volatility when high-growth names hit the bullseye. In a market where speculation is hot, that kind of ballast is important.
HA Sustainable Infrastructure Capital Funds the Energy Transition
HA Sustainable Infrastructure Capital NYSE: NO offers a different angle on the same theme. Formerly known as Hannon Armstrong Sustainable Infrastructure Capital, the company doesn’t build solar or wind projects—it finances them, collecting interest from developers instead of generating energy revenue directly.
HA Sustainable Infrastructure Capital Today
HA Sustainable Infrastructure Capital
- 52 week interval
- $24.38
▼
$44.13
- Dividend Yield
- 4.39%
- The P/E ratio
- 110.50
- Target Value
- $46.90
The renewables sector has largely weathered the policy storms coming out of Washington, and Lichtenfeld thinks that makes sense. The demand for energy is simply too great for any single source to satisfy. Oil, gas, nuclear, solar, and wind all have a role to play, and the money is flowing accordingly.
HASI recently received an investment-grade credit rating upgrade from BBB-, which should lower its borrowing costs at a time when it is borrowing almost twice as much as it is paying to raise it. That spread—borrowing in the mid-single digits and leverage around 10%—is the core of the business model, and a better credit profile can increase it further.
The portfolio is very diverse: more than 1,300 investments in 150 clients, and some contracts extend for 30 years. That long-term cash flow base supports both dividend sustainability and earnings predictability. Lichtenfeld notes that adjusted earnings per share grew about 10% in the most recent full year, and sees double-digit growth continuing through 2028. The stock carries a roughly 4.4% dividend yield and, despite nearly doubling over the past year, trades below 12X its 2028 guidance.
It is more speculative than Chevron, and a change in Washington’s policy in 2028 would represent a logical catalyst. For investors seeking energy exposure that is not directly linked to the oil price cycle, HASI offers a unique entry point.
A power opportunity lurks in the void
Power doesn’t need a world problem—it just needs the world to keep working. Whether the catalyst is AI data centers, the growing global middle class, or the reopening of restricted supply routes, the demand is relentless. Halliburton captures domestic drilling innovation, Chevron provides scale and stability with a direct line to AI infrastructure, and HASI provides exposure to the renewable finance side of the revolution. The technology sector gets the headlines, but it’s the energy companies that keep the lights on that may be the long-term bet.
Before you consider Halliburton, you’ll want to hear this.
MarketBeat tracks Wall Street’s top and most effective research analysts and the stocks they recommend to their clients every day. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Halliburton wasn’t on the list.
Although Halliburton currently has an Average Buy rating among analysts, top analysts believe these five stocks are the best.
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