Utilities, energy outperform other S&P 500 sectors in March

Utilities bested other sectors and the broader S&P 500 index in March, with the S&P 500 Utilities index logging a total return of 10.4%.

Still reaping the benefits of rising crude and natural gas prices, the S&P 500 Energy index saw a total return of 9.0%. Meanwhile, the S&P 500 index saw a total return of 3.7%.

Fresh from its spinoff from Exelon Corp., Constellation Energy Corp. saw its share price climb 22.3% in March, leading the components of the S&P 500 Utilities sector.

Constellation Energy, which has a sizable nuclear generation fleet, is focused on meeting ambitious climate goals in the next two decades, including by investing in hydrogen production and blending, President and CEO Joseph Dominguez said in February.

CenterPoint Energy Inc., which logged a total return of 12.0%, completed its exit from the midstream sector by selling its remaining interest in pipeline giant Energy Transfer LP.

Southern Co. recorded a share price increase of 11.9% in March. Southern shareholders reached a settlement connected to the utility's abandoned 745-MW Plant Ratcliffe (Kemper County IGCC) project that will require certain corporate governance reforms.

AES Corp. and Sempra also logged double-digit share price increases in March.

Occidental Petroleum Corp. outperformed other energy companies, recording a total return of 30.0% in March.

The U.S. oil and gas producer will spend roughly 5% of its 2022 capital budget to start construction on an industrial-scale direct air carbon capture plant in the Permian Basin of Texas and New Mexico.

Halliburton Co. saw its share price increase 13.4% in March. The company suspended future business in Russia, citing sanctions imposed following Russia's invasion of Ukraine.

Other top performers in the sector during the month included Baker Hughes Co., Valero Energy Corp. and Coterra Energy Inc.

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