Inflated crude, gas prices keep energy stocks afloat in February

Energy stocks held out against the widespread market selloff for a second straight month as Russia's invasion of Ukraine triggered a surge in crude oil and natural gas prices.

The S&P 500 Energy index logged a total return of 7.1% in February, while the rest of the S&P indexes closed in the red again. The broader S&P 500 index shed 3%, while the S&P 500 Utilities index slid 1.9%.

Devon Energy Corp. was the best performer in the energy index, gaining 17.8% in February.

Shares of Devon touched a 52-week high Feb. 16, a day after the company released its fourth-quarter 2021 financial results, increased its dividend and expanded its share-buyback authorization.

Marathon Oil Corp., which saw a total return of 16.3%, announced a $1.2 billion capital expenditure budget for 2022.

Chevron Corp. logged an increase of 10.8%. The company announced plans to acquire Renewable Energy Group Inc. in an all-cash deal valued at $3.15 billion.

Occidental Petroleum Corp. and Pioneer Natural Resources Co. also emerged as top-performing energy stocks in February.

Among electric and diversified utilities, PPL Corp. recorded a negative return of 11.8%.

The Pennsylvania investor-owned utility's stock fell Feb. 18 after it slashed its quarterly dividend by 52% and reported earnings that fell short of analyst expectations.

Eversource Energy, which saw a share price decline of 8.6% in February, said it plans to invest more than $4 billion to complete three major Atlantic offshore wind projects as the company grapples with renewable supply chain issues and inflation that have hindered project developers across the U.S.

On the flip side, Sempra saw a total return of 4.4%.

Sempra has seen a "dramatic increase" in buyer interest for LNG supplies it is marketing, as high prices and the conflict in Ukraine drive concerns about volatility and energy security.

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.