Cohen & Steers' Rosenlicht: Energy & natural resource valuations are low relative to rest of market

Core Insights - Shell is the top holding in the Cohen and Steers natural resources active ETF, with a focus on becoming a leader in the energy market, particularly in LNG trading [1] - The future of energy markets is viewed as an energy addition story rather than a transition, driven by population and economic growth [2][3] - Natural gas is positioned as a key solution for energy needs due to its low carbon intensity and abundance, making it a preferred choice over alternatives [5] Energy Market Dynamics - The demand for energy production is increasing, necessitating a diverse range of energy sources [3][4] - Traditional energy sources are regaining favor as they provide the reliability needed for modern energy demands, such as those from data centers and AI [4] - European integrated energy companies are seen as having better relative value compared to North American counterparts in the context of energy addition [6] Investment Opportunities - TC Energy, a pipeline company, has seen a 24% increase in value over the past year and is recognized for its natural gas pipeline network across the US and Canada [7] - The demand for pipelines is strong, while the ability to add new pipeline capacity is limited, creating favorable investment conditions [9] - Nuclear energy is highlighted as a predictable and cleaner energy source, with TC Energy's nuclear facilities in Ontario being undervalued by the market [11] Company-Specific Insights - Williams Companies, another pipeline firm, is noted for its growth potential despite a lower yield compared to peers, focusing on increasing pipeline capacity investments [13][14] - The market is expected to recognize the growth opportunities in energy infrastructure, natural gas, and nuclear energy as the energy addition challenge becomes more apparent [12]