Stifel's latest UK Equity Research outlook spotlights a select set of energy companies that the broker views as best positioned to handle the uncertainties around oil and gas through 2026. With concerns about global supply balances described as overstated in the note, the firm points investors toward names that demonstrate robust free cash flow generation, conservative capital deployment and potential for shareholder returns.
The stocks Stifel highlights span both upstream producers and specialist service providers, reflecting a preference for differentiated exposure to durable production bases and management teams that emphasize capital discipline.
Afentra Plc
Stifel characterises Afentra as materially undervalued when measured against its asset base and anticipated long-term cash generation. The broker's assessment indicates Afentra's African-focused portfolio could produce cash flows equivalent to more than three times the company’s current enterprise value across the next decade under conservative assumptions. Stifel notes Afentra has a strong balance sheet and a pipeline supportive of both organic production growth and acquisitions that could add value, implying meaningful scope for a re-rating as its strategy is executed.
Valeura Energy
Valeura is described as a lower-risk upstream operator that retains the potential for attractive returns typically associated with international exploration and production. Stifel points to Valeura's short-cycle, capital-light asset mix, which allows management to react swiftly to prevailing oil market conditions while preserving solid cash flow. The broker believes this operational flexibility, combined with disciplined allocation of capital and increasing production, positions Valeura to deliver sustained shareholder value.
Ashtead Technology
Ashtead Technology is identified as an energy services company that Stifel views as unfairly punished following a profit warning issued in mid-2025. The broker emphasizes the company’s limited exposure to offshore wind weakness and instead highlights customer backlogs at record highs and long-term revenue visibility. Stifel also underscores Ashtead’s track record of redeploying capital into acquisitions that add value and argues that resilient offshore demand should support a recovery in earnings and valuation.
BlueNord ASA
Stifel highlights BlueNord for investors seeking access to large, established producing fields in Denmark that provide a dependable production base. The broker forecasts strong free cash flow generation extending into the 2030s and stresses BlueNord’s focus on returning capital to shareholders. Stifel estimates that roughly 80% of BlueNord’s current market capitalisation could be returned to shareholders by way of dividends between 2025 and 2027, making the combination of longevity, cash generation and yield a notable feature within the sector.
Overall, Stifel's recommendations reflect a tilt toward businesses with predictable cash conversion, conservative balance sheets and management teams prioritising shareholder returns - traits the firm sees as particularly valuable given what it describes as inflated supply concerns for 2026.