99% of Billionaire Abrams’ Portfolio is in These 11 Stocks

7. Energy Transfer LP (NYSE:ET)

Abrams Capital Management’s Q3 2024 Investment: $286.24 Million

Percentage of Abrams Capital Management’s Portfolio: 4.59%

Number of Hedge Fund Holders: 29

Energy Transfer LP (NYSE:ET) owns and runs natural gas pipelines and storage facilities. It also sells natural gas to electric utilities, power plants, and local distributors. The stock has gone up by over 24% this year, even though the energy sector is struggling with oil prices falling below $75 a barrel.

Energy Transfer LP (NYSE:ET) has one of the largest energy networks in the U.S., with nearly 130,000 miles of pipelines in 44 states. Over the past 20 years, it has grown from a small pipeline operator to a major energy company. Its large natural gas pipeline network is ready to meet increasing electricity demand. The company’s various assets, including oil, NGL, and gas pipelines, help maintain strong earnings.

Energy Transfer LP (NYSE:ET) reported strong third-quarter results on November 6, 2024. Net income for shareholders was $1.18 billion, up from $466 million last year. Distributable Cash Flow for partners rose by $4 million to $1.99 billion. Their strong results come from a diverse asset portfolio, including the largest fractionation facility and a large pipeline network for transporting oil, gas, and NGLs.

Data centers, driven by AI expansion, are expected to account for 8% of U.S. power demand by 2030, up from 3% in 2022, according to a Goldman Sachs report. Energy Transfer LP (NYSE:ET)’s long-term prospects are good due to growing demand for power from AI and data centers. In November, Energy Transfer (ET.N) announced it received requests for connections to over 90 power plants and data centers, potentially adding 16 billion cubic feet per day of new natural gas demand.