Last year, energy investors faced a perfect storm. Demand for refined products collapsed in the face of measures to contain an historic pandemic, at the same time producers abruptly began to prioritize free cash flow over output.

The result was a business meltdown for all but a handful of best in class companies. And even they were forced to dramatically shift strategy, as plunging share prices and pressured credit ratings all but cut them off from capital markets on reasonable terms.

This year is shaping up as a far different animal. Even sector leaders like Portfolio members Enterprise Products Partners (NYSE: EPD), Pioneer Natural Resources (NYSE: PXD) and Schlumberger Ltd (NYSE: SLB) still haven’t made it back to pre-pandemic levels. But we have seen some very impressive gains across the board off the late October 2020 lows. And that price momentum has accelerated so far in 2021.

The nearly five-month long rally in energy stocks has taken a well-earned pause.

After racing to a nearly 90 percent return since Halloween 2020, the diversified S&P 500 Energy Sector Index has backed off a little less than 7 percent from the 52-week high. The midstream focused Alerian MLP Index has given back about 5 percent of its nearly 60 percent jump. And the S&P Oil & Gas Exploration Index is off about 6 percent after a more than 120 percent leap.

Despite their gains the past few months, many energy stocks up and down the value chain still trade in a lower range than they did the last time crude oil held above $50 a barrel, or natural gas was at $2 per million British Thermal Units for an extended period. And share prices are well below levels typical of the last time we saw $60 oil or $2.50 gas.