In this article, we discuss the top 5 stock picks of Henry Breck’s Heronetta Management. If you want to read our detailed analysis of Henry Breck’s history and hedge fund performance, go directly to Top 10 Stock Picks of Henry Breck’s Heronetta Management.
5. The Williams Companies, Inc. (NYSE:WMB)
Heronetta Management’s Stake Value: $7.83 million
Percentage of Heronetta Management’s 13F Portfolio: 6.03%
Number of Hedge Fund Holders: 39
The Williams Companies, Inc. (NYSE:WMB) is an American energy company founded in 1908 as Williams Brothers. It is a Fortune 500 company whose primary business is natural gas processing. The Williams Companies, Inc. (NYSE:WMB) also owns petroleum and electricity generation plants.
The EPS for the third quarter of 2021 for The Williams Companies, Inc. (NYSE:WMB) was recorded at $0.34 compared to $0.27 estimates. Moreover, the company also beat the revenue estimates by $387.28 million after generating $2.48 billion.
As of the third quarter of 2021, Heronetta Management owned 301,865 shares of The Williams Companies, Inc. (NYSE:WMB) worth $7.83 million. Southeastern Asset Management holds the most significant stake in the company, with 7.8 million shares worth $202.59 million.
Longleaf Partners Fund’s investor letter for the second quarter of 2021 mentioned The Williams Companies, Inc. (NYSE:WMB). Here is what it said:
“Williams (14%, 0.51%), the natural gas pipeline operator, was also a positive contributor. The value grew slowly but steadily thanks to continued cash flow growth at Williams’s main Transco pipeline, as well as good volume trends (up 11% YOY) in its Northeast assets. The stock traded up with gas price strength as the quarter went on. We believe that management is open to more transactions to grow and simplify value per share, and as industry conditions improve, this becomes more likely.”
4. Energy Transfer LP (NYSE:ET)
Heronetta Management’s Stake Value: $9.3 million
Percentage of Heronetta Management’s 13F Portfolio: 7.19%
Number of Hedge Fund Holders: 29
Energy Transfer LP (NYSE:ET) is one of America’s largest energy companies with a diverse portfolio that includes transportation and storage of crude oil, natural gas liquids, and LNG. The current market cap of the company is $25.09 billion.
The third quarter of 2021 proved to be quite favorable for Energy Transfer LP (NYSE:ET). In the third quarter of 2021, the company generated $16.66 billion in revenue, beating the revenue estimates by $1.65 billion compared to $178.09 million in the previous quarter. However, the EPS for the same quarter for Energy Transfer LP (NYSE:ET) was $0.20 compared to $0.29 analyst estimates.
In the past year, Energy Transfer LP (NYSE:ET) went up by 69.94%. However, the most considerable feat achieved by the company during this year was $6 billion in debt reduction.
Miller Value Partners mentioned Energy Transfer LP (NYSE:ET) in its second-quarter 2021 investor letter. The contents of the letter can be read here:
“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 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.”
3. Magellan Midstream Partners, L.P. (NYSE:MMP)
Heronetta Management’s Stake Value: $10.16 million
Percentage of Heronetta Management’s 13F Portfolio: 7.82%
Number of Hedge Fund Holders: 13
Magellan Midstream Partners, L.P. (NYSE:MMP) is an American petroleum and crude oil transportation, storage, and distribution company. The company was formerly a part of The Williams Companies, Inc. (NYSE:WMB) till 2003.
According to the recent filings, Heronetta Management owns 222,898 shares of Magellan Midstream Partners, L.P. (NYSE:MMP), worth $10.16 million, comprising 7.82% of the fund’s portfolio. The number of hedge funds investing in the company decreased from 14 in the first quarter to 13 in the second quarter of 2021.
Moreover, on 11th November, the company’s price target was raised from $50 to $52 by Mizuho analyst Gabriel Moreen. However, on 15th November, Evercore ISI analyst Stephen Richardscon downgraded Magellan Midstream Partners, L.P. (NYSE:MMP) from Outperform to In-Line.
2. MPLX LP (NYSE:MPLX)
Heronetta Management’s Stake Value: $11.75 million
Percentage of Heronetta Management’s 13F Portfolio: 9.05%
Number of Hedge Fund Holders: 11
MPLX LP (NYSE:MPLX) is an MLP that operates midstream energy infrastructure and logistics. It was formed by Marathon Petroleum Corporation (NYSE:MPC) and they own the majority limited partner interest in the company.
MPLX LP (NYSE:MPLX) has beaten the estimates by a good margin in the previous four quarters. In the third quarter of 2021, the EPS for the company was $0.74 compared to $0.70 estimates. Similarly, the revenue for the same quarter was $2.56 billion compared to the $2.38 billion analyst forecast.
Out of the 873 hedge funds tracked by Insider Monkey, 11 of them held stakes worth $115.64 million in MPLX LP (NYSE:MPLX) in the second quarter of 2021. In the previous quarter, 8 hedge funds had stakes worth $136.19 million in the company.
Miller/Howard Investments mentioned MPLX LP (NYSE:MPLX) in its first quarter 2021 investor letter. Here is what the firm said:
“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. Enterprise Products Partners L.P. (NYSE:EPD)
Heronetta Management’s Stake Value: $16.846 million
Percentage of Heronetta Management’s 13F Portfolio: 12.98%
Number of Hedge Fund Holders: 28
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas crude oil and natural gas pipeline company that ranks at no. 105 in the list of Fortune 500 companies in 2021. The company owns about 51,000 miles of pipelines and 26 natural gas processing plants.
On 19th October, Wolfe Research analyst Keith Stanley downgraded Enterprise Products Partners L.P. (NYSE:EPD) stock from Outperform to Peer Perform while mentioning that the upcoming midstream earnings season does look good but not great.
First Eagle Investment Management currently owns the largest stake in Enterprise Products Partners L.P. (NYSE:EPD), with 2.8 million shares worth $61.12 million. Meanwhile, Heronetta Management owns 778,480 shares worth $16.846 million, representing the most significant percentage in the fund’s portfolio at 12.98%.
Enterprise Products Partners L.P. (NYSE:EPD) was mentioned by ClearBridge Investments in its first quarter 2021 investor letter. Here is what the firm said:
“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.”
You can also take a peek at Top 10 Stock Picks of Brandon Osten’s Venator Capital Management and 10 Best Roth IRA Stocks To Buy According To Hedge Funds.
