In this article, we discuss 5 energy stocks to buy according to Blackstone Group. If you want our detailed analysis of these stocks, go directly to 10 Energy Stocks to Buy According to Blackstone Group.
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 52
Percentage of Blackstone Group’s Portfolio: 3.01%
Cheniere Energy, Inc. (NYSE:LNG) stock represents 3.01% of Blackstone Group’s Q4 portfolio, and the institutional investor owns 11.85 million shares of the company, worth $1.20 billion. Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company that operates natural gas and liquefied natural gas businesses in the United States.
On January 25, Cheniere Energy, Inc. (NYSE:LNG) declared a quarterly dividend of $0.33 per share, in line with previous. The dividend is payable on February 28, to shareholders of record on February 7.
Cheniere Energy, Inc. (NYSE:LNG) reported its Q4 results on February 24, announcing a loss per share of $2.65, missing consensus estimates by $4.43. Revenue over the period jumped 135.27% year-on-year to $6.56 billion, surpassing market predictions by $2.07 billion.
Mizuho analyst Robert Mosca on February 25 raised the price target on Cheniere Energy, Inc. (NYSE:LNG) to $145 from $128 and kept a Buy rating on the shares. The analyst sees “potentially even more upside” for Cheniere Energy, Inc. (NYSE:LNG) with Russia invading Ukraine. He also expects Cheniere Energy, Inc. (NYSE:LNG) to deliver on its capital allocation objectives much faster than anticipated.
Among the hedge funds tracked by Insider Monkey, 52 funds were bullish on Cheniere Energy, Inc. (NYSE:LNG), up from 49 funds in the prior quarter. Icahn Capital LP is the largest stakeholder of Cheniere Energy, Inc. (NYSE:LNG), owning more than 16 million shares worth $1.6 billion.
Here is what ClearBridge Global Infrastructure Value Strategy has to say about Cheniere Energy, Inc. (NYSE:LNG) in its Q3 2021 investor letter:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
4. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 21
Percentage of Blackstone Group’s Portfolio: 3.47%
Enterprise Products Partners L.P. (NYSE:EPD) is a midstream energy services company that supplies natural gas, natural gas liquids, crude oil, petrochemicals, and refined products. Blackstone Group owns a $1.3 billion position in Enterprise Products Partners L.P. (NYSE:EPD) as of Q4 2021, which accounts for 3.47% of the fund’s total 13F investments. Citi analyst Timm Schneider downgraded Enterprise Products Partners L.P. (NYSE:EPD) on February 1 to Neutral from Buy with an unchanged price target of $25.
On February 1, Enterprise Products Partners L.P. (NYSE:EPD) posted its Q4 results, announcing earnings per share of $0.52, missing estimates by $0.02. The company’s revenue for the period came in at $11.37 billion, up 61.41% year-over-year, above market consensus by $1.70 billion.
Enterprise Products Partners L.P. (NYSE:EPD) acquired Navitas Midstream Partners from Warburg Pincus for $3.25 billion in cash on January 10, which will provide its natural gas processing and natural gas liquids business with an entry point into the Midland Basin.
Enterprise Products Partners L.P. (NYSE:EPD) on January 6 declared a $0.465 per share quarterly dividend, a 3.3% increase from its prior dividend of $0.450, paid on February 11. Additionally, during the fourth quarter of 2021, Enterprise Products Partners L.P. (NYSE:EPD) purchased $125 million of its common units in the open market, bringing the total amount of common unit buybacks during 2021 to $200 million.
First Eagle Investment Management held the leading stake in Enterprise Products Partners L.P. (NYSE:EPD) as of Q4 2021, with 3.14 million shares worth $69 million. Overall, 21 hedge funds were bullish on Enterprise Products Partners L.P. (NYSE:EPD), with collective stakes amounting to $181 million.
Here is what ClearBridge Investments has to say about Enterprise Products Partners L.P. (NYSE:EPD) in its Q1 2021 investor letter:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
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.”
2. MPLX LP (NYSE:MPLX)
Number of Hedge Fund Holders: 8
Percentage of Blackstone Group’s Portfolio: 4.90%
MPLX LP (NYSE:MPLX) is a subsidiary of Marathon Petroleum Corporation, owning midstream energy infrastructure and logistics assets in the United States. Blackstone Group owns more than 66 million shares of MPLX LP (NYSE:MPLX) as of Q4 2021, worth $1.95 billion, representing 4.90% of the fund’s 13F portfolio.
With a forward yield of 8.88%, MPLX LP (NYSE:MPLX) declared on January 25 a $0.705 per share quarterly dividend, in line with previous. The dividend was paid on February 14, to shareholders of record on February 4.
MPLX LP (NYSE:MPLX) posted its fourth quarter results on February 2, announcing earnings per share of $0.78, topping estimates by $0.04. Revenue over the period jumped 21.57% year-on-year to $2.73 billion, surpassing estimates by $283.32 million.
On January 20, Barclays analyst Theresa Chen raised the price target on MPLX LP (NYSE:MPLX) to $35 from $34 and kept an Overweight rating on the shares. She expects “more variability” across refining results in Q4, but has a “generally positive outlook for the group in 2022”.
Chiron Investment Management is a significant shareholder of the company, with 539,782 shares worth roughly $16 million. Overall, 8 hedge funds in the Q4 database of Insider Monkey were bullish on MPLX LP (NYSE:MPLX), with combined stakes equaling $50.3 million.
Here is what Miller/Howard Investments has to say about MPLX LP (NYSE:MPLX) in its Q1 2021 investor letter:
“Lastly, we added MPLX LP (MPLX) in the with-MLP version. MLPX pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”
1. Cheniere Energy Partners, L.P. (NYSE:CQP)
Number of Hedge Fund Holders: 3
Percentage of Blackstone Group’s Portfolio: 21.56%
Cheniere Energy Partners, L.P. (NYSE:CQP) is the largest holding in Blackstone Group’s Q4 portfolio, with the investment manager owning 203.78 million shares of the company, worth $8.60 billion, representing 21.56% of the fund’s 13F securities. Cheniere Energy Partners, L.P. (NYSE:CQP) is a liquefied natural gas company headquartered in Houston, Texas.
On February 24, Cheniere Energy Partners, L.P. (NYSE:CQP) reported a Q4 GAAP EPS of $0.93, exceeding consensus estimates by $0.17. The company announced a revenue of $3.26 billion, up 63.8% year-over-year, surpassing by $710 million.
UBS analyst Brian Reynolds on February 1 downgraded Cheniere Energy Partners, L.P. (NYSE:CQP) to Neutral from Buy with a $50 price target. Following the stock’s 21% rally over the past six weeks, its risk-reward is now balanced, the analyst told investors in a research note.
According to the Q4 database of Insider Monkey, 3 hedge funds were bullish on Cheniere Energy Partners, L.P. (NYSE:CQP), with total stakes amounting to $5.9 million. Citadel Investment Group was the biggest stakeholder of the company, with 115,491 shares worth $4.8 million.
You can also take a look at 10 Tech Stocks to Buy According to Nathan Przybylo’s L2 Asset Management and 10 Dividend Stocks to Buy According to Christian Leone’s Luxor Capital.
