TTE - Energy earnings update - from good to great

Mid way through Q1 results season, it appears energy stocks have caught a bid. Brent (CO1:COM) is ~2% lower over the past month, while energy stocks broadly (XLE) are ~2% higher. Investors looking at year-to-date performance, with energy names (XLE) up over 40% against an S&P 500 (SPY) down ~12%, may feel the trade has run its course. However, earnings results and management commentary suggest opportunities remain.  Upstream oil producers have a long track record of outspending cash flow to generate production growth. Along with Q4 2021 results, the industry almost uniformly committed to reducing production growth while returning capital to shareholders. That commitment was put to the test in Q1, as Congress pressured US producers to accelerate upstream production growth. However, Q1 results to date indicate the commitment stands - Devon (DVN), Coterra (CTRA) and Diamondback (FANG) all reported after the close Monday, all bumped the dividend and all rallied

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Energy earnings update - from good to great