The S&P 500 Energy index slumped 10% in May, making it the worst performer of the S&P 500 sectors. The S&P 500 Utilities index also fell, logging a negative return of 5.9%, while the broader S&P 500 index had an uptick of 0.4%, according to S&P Global Market Intelligence data.
The worst-performing companies in the S&P 500 Energy index in May saw the value of their shares fall more than 13%.
APA Corp., which recorded a negative return of 13.8%, has reduced its planned 2023 capital investment by $100 million to a range of between $1.9 billion and $2 billion due to lower Permian Basin natural gas prices.
Devon Energy Corp. posted a drop of 13.7%. Devon's first-quarter production was affected by harsh weather at its sites in North Dakota, industry competition for workover rigs in various plays, and some well closures due to interactions between existing wells and new fracking activity nearby.
ONEOK Inc. logged a decline of 13.4%. The US midstream operator announced that it will acquire pipeline operator Magellan Midstream Partners LP in an $18.8 billion cash-and-stock deal that could position the combined entity one of the biggest oil and gas infrastructure companies in North America to adapt to the evolving fuel sector.
Schlumberger Ltd. and Marathon Petroleum Corp. also had negative stock returns in May. EQT Corp. was the only energy company in the index to record a positive return, with a 0.3% gain.
Among utilities, AES Corp. notched the worst performance in May with a negative stock return of 16.6%. The company will rely on asset sales, as well as debt and equity issuances, to help fund its $38 billion-$43 billion gross capital expenditure plan over the next five years, including investments in green hydrogen and renewable projects.
Dominion Energy Inc. posted a decline of 12%. On May 5, Dominion executives said they were closer to providing a strategic update on the company's financial outlook and business plans, which could include asset sales.
Eversource Energy, which posted a negative stock return of 10%, struck a deal to sell its 50% stake in an uncommitted Massachusetts offshore wind lease area to Ørsted A/S for $625 million in cash.
American Electric Power Co. Inc. logged a negative stock return of 9.2% as the company launched a sale process for its retail and distributed resource businesses following the completion of a strategic evaluation.
On the flip side, Constellation Energy Corp. posted a positive stock return of 8.9% in May. The company began a $1 billion share buyback program in the first quarter, repurchasing about 3.2 million shares for about $250 million, executives said on a May 4 earnings call.