As current events show us, oil prices are volatile. They can swing wildly based on politics, supply decisions, or shifts in global demand. That makes many energy stocks cyclical in nature, particularly those oil and gas companies that are engaged in drilling and exploration.
But there are companies with business models that hold up even when oil prices fall. Kinder Morgan (NYSE: KMI) and Halliburton (NYSE: HAL) are two such companies. Each is built differently from your average oil stock. One owns the pipes that move energy. The other provides the services that make wells work better. Together, they offer a smart way to stay in energy without betting everything on the daily fluctuations in crude oil prices.
