5 Energy Stocks to Buy According to Blackstone Group

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.”