The Top-Performing Energy Companies Of 2019

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The energy sector turned in a positive performance in 2019, but it lagged other S&P 500 sectors.

I had originally intended on presenting my 2020 energy sector predictions today, but those aren’t quite ready. I expect to publish that column no later than a week from today.

The Energy Select Sector SPDR ETF tracks an index of energy companies in the S&P 500. The XLE represents the stocks of large energy companies from different sub-sectors . It is, therefore, a good benchmark for conservative energy investors. Some of the XLE’s biggest holdings are ExxonMobil, Chevron, ConocoPhillips, EOG Resources, and Schlumberger.

The Top 20 midstream companies rose by an average of 15.9% for the year, but a different picture emerges if we look at just the midstream corporations. Major midstream corporations like Enbridge, TC Energy , and Kinder Morgan respectively returned 36%, 56%, and 44%. Enterprise Products Partners, the largest MLP, returned 21.9%. TC Energy’s return was the best among the Top 20 midstream companies.

In general, the Canadian upstream companies handily outperformed their U.S. peers, with many turning in gains of over 30%. However, the top performer in the Top 20 was U.S.-based Hess, with a 68% return for the year. At the bottom of the pack was Occidental's 28% decline for the year. This decline was caused by negative reactions to Occidental's buyout of Anadarko.

 

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