Energy closed the month of August as the only S&P 500 sector to log positive returns amid a general selloff among other industries. On the other end of the spectrum, utilities emerged as the worst-performing sector during the month.
The S&P 500 Energy index notched a 1.8% gain during the month, while the S&P 500 Utilities index slid to the bottom of the list with a negative return of 6.2%.
The broader S&P 500 index saw a negative return of 1.6%.
Among energy companies, APA Corp. posted a positive stock return of 8.3%. The company reported second-quarter adjusted production of 325,000 barrels of oil equivalent per day, up 2% from the first quarter, driven primarily by a 6% increase in US oil volumes.
Marathon Petroleum Corp., which saw a positive return of 7.9% in August, recorded second-quarter adjusted EBITDA of $4.53 billion, compared with $9.06 billion a year earlier.
Pioneer Natural Resources Co. closed the month with a gain of 5.4%. The company placed 124 horizontal wells in production during the second quarter.
Other best-performing energy stocks in August included Targa Resources Corp. and Exxon Mobil Corp.
On the flip side, Devon Energy Corp. recorded a negative return of 5.39%. The company's oil production averaged 323,000 b/d in the second quarter, an increase of 8% from the year-ago period.
Other laggards included EOG Resources Inc., Kinder Morgan Inc., Oneok Inc. and Halliburton Co., all recording negative stock returns in August.
In the utilities sector, Constellation Energy Corp. came out as the only company that logged a positive return in August at 8.1%. The nuclear generation giant reported second-quarter adjusted EBITDA of $1.03 billion, compared to $603 million a year earlier. The S&P Capital IQ consensus EBITDA estimate for the second quarter was $707.8 million.
Among bottom-performing utilities, AES Corp. slumped 17.1% in August. AES' second-quarter adjusted earnings per share were 21 cents, down from 34 cents during the prior-year period. The S&P Capital IQ consensus normalized EPS estimate was 24 cents.
The company expects to exceed a $3 billion asset sale target for 2023 through 2027 that management detailed in May as part of a $38 billion to $43 billion capital spending program.
Eversource Energy posted a negative stock return of 11.8%, as the energy provider recorded a $331.0 million after-tax impairment related to its offshore wind business for the second quarter, up from the $220 million to $280 million charge the developer estimated in May.
PPL Corp. saw a negative stock return of 9.5%, as storms and mild weather dragged the company's earnings by 9 cents per share through the first half of 2023.
DTE Energy Co. and Xcel Energy Inc. also logged share price drops of 9.6% and 8.9%, respectively.
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