In this article, we present to you the 5 Best MLP and Pipeline Stocks To Buy. If you wish to go through our analysis of MLPs, you can jump to the 12 Best MLP and Pipeline Stocks To Buy.
5. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 35
Enbridge Inc. (NYSE:ENB) is a multinational energy and pipeline corporation headquartered in Calgary, Alberta, Canada. The company manages an extensive network of pipelines spanning Canada and the United States, facilitating the transportation of various energy resources, including crude oil, natural gas, and LNG.
On November 3, 2023, Enbridge Inc. (NYSE:ENB) expressed interest in smaller acquisitions and announced significant agreements, including the finalization of a $14 billion deal to acquire three U.S. gas utilities from Dominion Energy, expected to conclude in 2024, along with agreements to increase its ownership in German offshore wind projects and acquire seven U.S. renewable natural gas facilities.
As of the third quarter, our hedge fund data indicates that 35 hedge funds maintained stakes in Enbridge Inc. (NYSE:ENB), with a combined stake value of $401.46 million. Zimmer Partners emerged as the leading shareholder in Enbridge Inc. (NYSE:ENB) at the end of the third quarter, holding 4.1 million shares in the company.
4. Targa Resources Corp. (NYSE:TRGP)
Number of Hedge Fund Holders: 36
Targa Resources Corp. (NYSE:TRGP) is an energy company that manages, acquires, and develops a portfolio of midstream infrastructure assets. The company is involved in gathering, compressing, and transporting natural gas, as well as providing services to liquefied petroleum gas exporters and engaging in the purchase and sale of natural gas liquids.
In the September quarter of 2023, 36 hedge funds among the 910 hedge funds surveyed by Insider Monkey were investors in the firm. The most significant stakeholder in Targa Resources Corp. (NYSE:TRGP) during the September quarter was Stuart J. Zimmer’s Zimmer Partners, holding a $204 million investment in the company.
3. ONEOK, Inc. (NYSE:OKE)
Number of Hedge Fund Holders: 36
ONEOK, Inc. (NYSE:OKE) is an American diversified corporation primarily focused on the natural gas industry, headquartered in Tulsa, Oklahoma. Originally founded in 1906 as Oklahoma Natural Gas Company, it changed its corporate name to ONEOK, Inc. (NYSE:OKE) in December 1980.
In September 2023, unit-holders of Magellan Midstream Partners voted in favor of its acquisition by larger rival ONEOK, Inc. (NYSE:OKE) for $18.8 billion, solidifying ONEOK, Inc. (NYSE:OKE)’s position as one of the largest energy pipeline companies in the United States.
In the third quarter of 2023, 36 hedge funds, as surveyed by Insider Monkey among the 910 hedge funds, held shares of ONEOK, Inc. (NYSE:OKE). During this period, Marshall Wace LLP, managed by Paul Marshall and Ian Wace, emerged as the company’s largest investor with a significant stake valued at $201.9 million.
2. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 42
Kinder Morgan, Inc. (NYSE:KMI) is a prominent energy infrastructure company in North America, renowned for its expertise in owning and operating oil and gas pipelines, along with terminals. The company holds ownership interests in or manages an extensive network, encompassing approximately 83,000 miles of pipelines and 143 terminals.
In a strategic move on November 6, Kinder Morgan, Inc. (NYSE:KMI) finalized an agreement to acquire NextEra Energy Partners LP’s South Texas natural gas pipeline assets for $1.815 billion in cash. The STX Midstream pipeline system connects the Eagle Ford Basin to markets in both Mexico and the U.S. Gulf Coast. The assets involved in this acquisition include a 90% ownership stake in the NET Mexico pipeline and a 50% interest in Dos Caminos LLC. Notably, this marks the sixth acquisition by Kinder Morgan, Inc. (NYSE:KMI) in the past three years.
As of the end of the September quarter of 2023, 42 hedge funds, as tracked by Insider Monkey, reported having stakes in Kinder Morgan Inc. (NYSE:KMI), reflecting an increase from 36 in the previous quarter. The combined value of these stakes approaches $769.6 million.
1. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 58
Cheniere Energy, Inc. (NYSE:LNG), headquartered in Houston, Texas, actively engages in the LNG sector and manages the Sabine Pass LNG terminal in Louisiana. On November 8, Cheniere Energy, Inc. (NYSE:LNG) announced its anticipation that the inaugural LNG cargo from its Corpus Christi Liquefaction Stage 3 (CCL Stage 3) brownfield expansion project will depart by the end of 2024, surpassing the initially projected timeline.
Among the 910 hedge funds included in Insider Monkey’s database, 58 held stakes in Cheniere Energy, Inc. (NYSE:LNG). The most substantial hedge fund holding in Cheniere Energy, Inc. (NYSE:LNG) was from D. E. Shaw, which possesses a stake valued at $222.3 million in the company.
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