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Energy, utilities join sell-off but fare better than broader S&P 500 in April

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Energy, utilities join sell-off but fare better than broader S&P 500 in April

Energy and utility companies recorded losses but still fared better than the broader S&P 500 index in April, according to S&P Global Market Intelligence data.

The S&P 500 Energy index saw a negative return of 1.5%, and the S&P Utilities index logged a negative return of 4.3%. The broader S&P 500 index lost 8.7% in April.

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Baker Hughes Co. led the sell-off among components of the S&P 500 Energy index, with a negative return of 14.8%.

Shares of the company fell on April 20 after its 2022 first-quarter results came in below analyst expectations, the Dow Jones Newswire reported.

ONEOK Inc. recorded a negative return of 9%. On April 21, the Federal Energy Regulatory Commission launched investigations into two interstate natural gas companies, one of which is ONEOK, to determine if they have been charging unreasonable rates.

Other bottom-performing energy companies included Diamondback Energy Inc., Pioneer Natural Resources Co. and Halliburton Co.

Meanwhile, Valero Energy Corp. saw a positive return of 9.8%.

The company's first-quarter 2022 adjusted net income attributable to stockholders was $944 million, swinging from an adjusted net loss of $666 million in the first quarter of 2021.

Coterra Energy Inc., Exxon Mobil Corp. and Williams Cos. Inc. also logged positive returns in April.

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AES Corp. slid to the bottom of the list of the S&P 500 Utilities index with a negative return of 20%.

An April fire at AES' Dorman Battery Storage Project in an industrial area of Chandler, Ariz., continued to burn 10 days after igniting due to unknown causes.

NextEra Energy Inc. shed 16.2% in April.

During the company's first-quarter earnings call, NextEra said the solar and energy storage projects it had planned to build this year could be delayed due to an investigation by the U.S. Commerce Department into allegations that equipment manufacturers have evaded American import tariffs.

A NextEra Energy subsidiary also pleaded guilty to violating the Migratory Bird Treaty Act and was sentenced to pay millions in penalties over eagles killed by its wind energy operations.

Other bottom-performing utility stocks included Pinnacle West Capital Corp. NiSource Inc. and American Water Works Co. Inc.

On the flip side, Constellation Energy Corp. posted a total return of 5.3%.

The U.S. Department of Energy granted a $2.5 million grant to Constellation and its project partners to study building direct air capture technology at the company's Byron Generating Station nuclear energy plant in Northern Illinois.

Entergy Corp. Xcel Energy Inc. and Southern Co. also posted positive returns in April.

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