Oil and gas names surge again; sector up 23% YTD vs. S&P loss
Feb. 01, 2022 4:30 PM ETEnergy Select Sector SPDR ETF (XLE), XOMIYE, XES, IXC, FCG, FENY, OIH, VDE, XOP, WMB, PXD, HES, EOG, COP, VLO, OXY, MRO, APA By: Carl Surran, SA News Editor23 Comments
The energy sector (XLE +3.6%) closed comfortably at the top of Tuesday's S&P sector standings, even as crude oil prices barely budged, extending its strong start to the year with a 23% gain compared with a 5.4% loss in the broader S&P 500.
Exxon Mobil (XOM +6.4%) provided strong sector leadership, rallying to its best level since April 2019 after reporting blowout quarterly results and issuing strong capital spending guidance.
Exxon racked up its biggest profit since 2014 and said cash flow from operations reached the highest since 2012, and it expects to see a steady reduction in its breakeven oil price to an average of $35/bbl through 2027.
The company also flagged a massive 25% increase in Permian Basin production this year, well above most of the rest of the oil industry.
Among other major sector stocks posting multiyear highs during the day: MRO +6%, APA +4.5%, OXY +4.3%, VLO +4.3%, COP +3.3%, PXD +2.4%, WMB +1.9%, EOG +1.5%, HES +1.3%.
ETFs: XLE, XOP, VDE, OIH, FENY, FCG, IXC, XES, IYE
Oil and gas stocks in January posted their best month in nearly a year, in an environment of oil prices at their highest since October 2014 and analysts forecasting $100/bbl oil sooner or later. |
