Energy may be lagging the broader market, but here's one play that could buck the trend

Even if oil has trouble breaking out of a $45 to $55 a barrel trading range over the next several months, one portfolio manager argues there's still money to be made in energy — a group that has been lagging the broader market.

Tortoise Capital Advisors' Robert Thummel believes investors just need to know where to look.

Thummel, a managing director and portfolio manager at the firm, sees energy infrastructure plays thriving in this environment.

"They're agnostic to the oil price. It doesn't matter if oil is $55 or if it's $60 or if it's $50. These companies are simply charging a fee to transport product through their pipelines," Thummel said Monday on CNBC's "Trading Nation."

According to Thummel, they're pretty much insulated from oil price volatility.

"Stable oil prices are the key because that's what keeps the sector intact and in place to move higher," he added.

His top energy pick is Cheniere Energy, which has a large footprint in the development of liquefied natural gas.

Thummel bought Cheniere's stock in 2015 as it was struggling. He's still finding reasons to be bullish on it even with shares down about 3 percent in the last two years.

"Cheniere plays a pivotal role in helping the U.S. export more liquefied natural gas. They own a lot of infrastructure on the Gulf Coast that liquefies U.S.-produced natural gas, loads it onto a ship and then exports it to countries throughout the world," Thummel said.

And, he may be onto something. Cheniere shares have rallied 7 percent in the past two months.

Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more