In this article, we discuss the top 2 oil and gas stocks to buy according to billionaire Leon Cooperman. If you want to see our detailed discussion of the investment philosophy of Leon Cooperman and the performance of his hedge fund Omega Advisors, go directly to the 7 Oil and Gas Stocks to Buy According to Billionaire Leon Cooperman.
2. Energy Transfer LP (NYSE:ET)
Cooperman’s Stake Value: $71,620,000
Percentage of Leon Cooperman’s 13F Portfolio: 4.02%
Number of Hedge Fund Holders: 29
Energy Transfer LP (NYSE:ET) provides energy-related services. The company owns and operates approximately 9,400 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas, and 12,340 miles of interstate natural gas pipelines. It also sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. In addition, the company owns and operates natural gas gathering and natural gas liquid (NGL) pipelines, processing plants, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Kansas, and Louisiana. Energy Transfer LP (NYSE:ET) was founded in 1996 and is headquartered in Dallas, Texas.
This September, Citi analyst Timm Schneider raised his price target on Energy Transfer LP (NYSE:ET) to $15 from $14 and reiterated a Buy rating on the shares.
According to Leon Cooperman’s latest 13F portfolio, the billionaire owns over 6.73 million shares in Energy Transfer LP (NYSE:ET) that are worth more than $71.62 million. The investment covers 4.02% of Mr. Cooperman’s investment portfolio.
As of the second quarter of 2021, Energy Transfer LP (NYSE:ET) reported an EPS of $0.20, missing estimates by -$0.07. The company also reported revenues of $15.1 billion, up 105.79% year-over-year, and beating estimates by $178.09 million. Energy Transfer LP (NYSE:ET) has gained 19.82% over the past six months, and 51.64% year to date.
By the end of the second quarter of 2021, 29 hedge funds out of the 873 tracked by Insider Monkey held stakes in Energy Transfer LP (NYSE:ET) worth $835.2 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $647.7 million.
Miller Value Partners recently released their second-quarter 2021 Investor Letter, in which the firm mentioned Energy Transfer LP (NYSE:ET). Here’s what they had to say:
“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 Core 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 f low 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.”
