In this article, we discuss 4 best energy stocks to buy according to Stuart Zimmer’s hedge fund. If you want to read our detailed analysis of Zimmer’s history and hedge fund performance, go directly to 8 Best Energy Stocks to Buy According to Stuart Zimmer’s Hedge Fund.
4. Energy Transfer LP (NYSE:ET)
Zimmer Partners’ Stake Value: $18,362,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.27%
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is a natural gas and propane pipeline delivery firm. Energy Transfer LP (NYSE:ET)’s price target was lifted to $14 from $13 on February 18 by Mizuho analyst Gabriel Moreen, who reiterated a Buy rating on the stock.
Energy Transfer LP (NYSE:ET) is favoured by elite hedge funds. According to the fourth quarter database of Insider Monkey, 36 hedge funds were bullish on Energy Transfer LP (NYSE:ET), up from 29 funds in the prior quarter.
At the end of the fourth quarter of 2021, Zimmer Partners held 2.23 million shares of Energy Transfer LP (NYSE:ET), amounting to $18.36 million and representing 0.27% of the fund’s total investments. Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Abrams Capital Management is a leading shareholder of Energy Transfer LP (NYSE:ET), with 22.12 million shares worth more than $182.08 million.
Miller Value Partners, in its Q2 2021 investor letter, talked about Energy Transfer L.P. (NYSE:ET). Here is what the fund said:
“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.”
3. Southwestern Energy Company (NYSE:SWN)
Zimmer Partners’ Stake Value: $41,078,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.61%
Number of Hedge Fund Holders: 24
Southwestern Energy Company (NYSE:SWN) operates as a natural gas, oil, and natural gas liquids exploration, development, and production company. Among the hedge funds tracked by Insider Monkey, 24 funds were bullish on Southwestern Energy Company (NYSE:SWN) at the end of the fourth quarter of 2021, compared to 22 funds in the prior quarter.
David Iben’s Kopernik Global Investors is Southwestern Energy Company (NYSE:SWN)’s most significant stakeholder, with 19.20 million shares worth $89.45 million. Southwestern Energy Company (NYSE:SWN) was given a Buy rating and a $9 price objective by Seaport Global analyst Nick Pope on March 30. Pope told investors that Southwestern Energy Company (NYSE:SWN)’s recent deals enabled the company to produce considerable cash and provide multiple outlets to compensate stakeholders.
Southwestern Energy Company (NYSE:SWN) was Zimmer Partners’ new acquisition in Q4 2021. The hedge fund purchased shares worth over $41.08 million in Southwestern Energy Company (NYSE:SWN), representing 0.61% of its 13F portfolio.
2. DT Midstream, Inc. (NYSE:DTM)
Zimmer Partners’ Stake Value: $191,998,000
Percentage of Zimmer Partners’ 13F Portfolio: 2.86%
Number of Hedge Fund Holders: 17
DT Midstream, Inc. (NYSE:DTM) is the investor, operator, and manager of a natural gas midstream asset portfolio. Pipeline and Gathering are the two segments in which the company works. According to Insider Monkey’s fourth quarter database, 17 hedge funds were bullish on DT Midstream, Inc. (NYSE:DTM), compared to 22 funds in the previous quarter.
Zimmer Partners is the leading shareholder of DT Midstream, Inc. (NYSE:DTM), owning 4 million shares of the company, worth over $192 million. Next on the list is Sessa Capital, which holds 2.89 million shares of DT Midstream, Inc. (NYSE:DTM), valued at more than $138.86 million.
Spiro Dounis, a Credit Suisse analyst, lowered DT Midstream, Inc. (NYSE:DTM) from Outperform to Neutral with a price target of $58, up from $55. The analyst highlighted valuation as the reason for the downgrade, followed by DT Midstream, Inc. (NYSE:DTM)’s recent outperformance.
1. Targa Resources Corp. (NYSE:TRGP)
Zimmer Partners’ Stake Value: $202,373,000
Percentage of Zimmer Partners’ 13F Portfolio: 3.02%
Number of Hedge Fund Holders: 35
Targa Resources Corp. (NYSE:TRGP) owns and manages a portfolio of midstream energy assets in North America via its subsidiary, Targa Resources Partners LP. Since the second quarter of 2014, Targa Resources Corp. (NYSE:TRGP) has been a part of Zimmer Partners’ portfolio. On the other hand, Stuart Zimmer disclosed a decreased stake in Targa Resources Corp. (NYSE:TRGP) by 1% in its Q4 2021 filings. This leaves the hedge fund with a position worth $202.37 million.
Targa Resources Corp. (NYSE:TRGP) was raised to Buy from Neutral by Mizuho analyst Gabriel Moreen on March 18, with a price objective of $85, up from $58. According to Moreen, the sale of Targa Resources Corp. (NYSE:TRGP)’s GCX natural gas pipeline component simplified its financing structure and gave it even more near-term mobility.
According to Insider Monkey’s hedge fund database, 35 funds held stakes worth $626.32 million in Targa Resources Corp. (NYSE:TRGP) in the fourth quarter of 2021, up from 26 in the preceding quarter worth $567.25 million.
You can also take a peek at 10 Stocks to Buy According to Canyon Capital Advisors and Top 6 Stocks to Buy Today According to Stephen Feinberg’s Cerberus Capital Management
