5 Energy Stocks to Buy According to Blackstone Group

3. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 36

Percentage of Blackstone Group’s Portfolio: 3.53%

Energy Transfer LP (NYSE:ET) owns and operates natural gas transportation pipelines and natural gas storage facilities across the United States. As of Q4 2021, Blackstone Group held 171.5 million Energy Transfer LP (NYSE:ET) shares, worth $1.4 billion, representing 3.53% of the fund’s total 13F securities. 

Energy Transfer LP (NYSE:ET) announced on February 16 its Q4 earnings, posting an EPS of $0.30, exceeding consensus estimates by $0.08. The company’s revenue came in at $18.66 billion, up roughly 86% from the prior-year quarter, surpassing estimates by $2.04 billion. 

On January 25, Energy Transfer LP (NYSE:ET) declared a $0.175 per share quarterly dividend, a 14.8% increase from its prior dividend of $0.1525. Offering a forward yield of 7.53%, the dividend was paid on February 18. 

Mizuho analyst Gabriel Moreen on February 18 raised the price target on Energy Transfer LP (NYSE:ET) to $14 from $13 and kept a Buy rating on the shares. More important than issuing “strong” 2022 EBITDA guidance, the company delivered positive commercial updates in several key areas emphasizing its growth potential in the current environment, the analyst told investors in a bullish thesis.

Abrams Capital Management is the largest stakeholder of Energy Transfer LP (NYSE:ET) as of December 2021, with 22.1 million shares worth $182 million. Overall, 36 hedge funds were bullish on the stock in the fourth quarter of 2021.

Here is what Miller Value Partners has to say about Energy Transfer LP (NYSE:ET) in its Q2 2021 investor letter:

“Energy Transfer LP (ET)rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”