In April 2022, Elliott Gue said old-economy energy stocks were likely to emerge as the new market ­leaders…and the S&P 500’s energy sector went on to rise around 60%. Is it too late for investors to get in on that rally? His take: There’s plenty of gas left in the tank, but there may be pullbacks in energy stocks in the first half of 2023 if we have a recession and a dip in energy demand.

Why energy stocks are still attractive: We are in the early innings of a multiyear super-cycle for oil and natural gas driven by supply shortages that should keep prices elevated long term. Although energy companies have begun to increase exploration and development of wells and fields, it will take five to seven years before that supply reaches the global market. Industry subsectors that offer potential now include equipment and services firms and natural-gas producers. Gue’s favorites for 2023 and beyond…

Baker Hughes Co. (BKR), is an equipment and services company focused on liquified natural gas, which US producers are exporting to the rest of the world. Recent share price: $29.91.

Chesapeake Energy Corp. (CHK) produces natural gas in shale deposits in Pennsylvania, Texas and Louisiana. The stock has dropped to attractive levels as natural-gas prices tumbled in response to the US and Europe’s mild winter. Recent share price: $76.87.

SLB (SLB) provides equipment and services for oil and gas fields around the world. Also known as Schlumberger, it will benefit as energy majors and OPEC producers invest tens of billions of dollars in exploration and production for the rest of this decade. Recent share prices: $52.33.

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