From being the best-performing sector in May, energy stocks reversed course in June with the S&P 500 Energy index logging a negative return of 16.8%.

The steep decline in crude oil futures in mid-June primarily drove the sector-wide sell-off. Investors were also skittish as fears of recession rise, aggravated by supply threats linked with geopolitical tensions.

Utilities fared better than average and closed the month with a negative return of 5%. Industry experts predicted that U.S. utility stocks could see substantial price upside despite signs of a looming recession, based on the sector's performance during previous economic downturns.

Meanwhile, the broader S&P 500 index saw a decline of 8.3%.

Marathon Oil Corp.'s stock price slumped 28.5% in June, landing at the bottom of the S&P 500 Energy list. Marathon Oil was the biggest decliner among energy exchange-traded funds, when crude oil futures and natural gas futures slumped June 22.

APA Corp. saw a negative return of 26.7% in June. On June 21, the company said it achieved successful flow-test results from the Krabdagu exploration well on Block 58 offshore Suriname. APA Suriname holds a 50% working interest in the block.

Devon Energy Corp. closed the month with a 25.2% decline. Devon Energy on June 8 said it agreed to acquire the leasehold interest and related assets of RimRock Oil & Gas LP in the Williston Basin for total cash consideration of $865 million.

Other bottom-performing stocks include Coterra Energy Inc., whose shares dropped 24.9%, and Halliburton Co., which logged a negative return of 22.6%.

Power provider NRG Energy Inc. was the worst-performing S&P 500 Utilities component in June, with a negative return of 17.1%.

Trailing NRG, FirstEnergy Corp. posted a share price decline of 10.6%, while Edison International dropped 9.5%.

PPL Corp.'s shares dipped 9.3%, while Eversource's shares dropped 8.5%.

On June 23, the Rhode Island General Assembly passed a bill that would require PPL's utility in the state, Rhode Island Energy, to procure up to 1,000 MW of additional offshore wind generation.

Rhode Island Energy is already under contract for 400 MW from the Revolution Wind Offshore project, now under development by Eversource Energy and Ørsted A/S.

Surviving the broad market and sector sell-off, NextEra Energy Inc. ended June with a total return of 2.3%. The company on June 14 unveiled an ambitious decarbonization program, "Real Zero," which aims to eliminate all Scope 1 and Scope 2 operational emissions by 2045 without requiring carbon offsets.

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