2. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
P/E Ratio as of September 13: 9.64
Share Price as of September 13: $12.06
Energy Transfer LP (NYSE:ET) owns and operates natural gas transportation pipelines and natural gas storage facilities. The company also sells natural gas to electric utilities, independent power plants, and industrial users. Energy Transfer LP (NYSE:ET) provides crude oil transportation, middle distillate, motor fuels, and other petroleum products as well. It is one of the best undervalued and cheap energy stocks to buy.
On August 24, Energy Transfer LP (NYSE:ET) announced that it signed a 20-year agreement with Shell plc (NYSE:SHEL) to supply 2.1 million metric tons per year of liquefied natural gas from its Lake Charles LNG export project in Louisiana. The first deliveries are projected to begin as early as 2026. Energy Transfer LP (NYSE:ET) has been expanding vigorously this year, with plans to ultimately restart its earlier dividend distribution.
Barclays analyst Theresa Chen on August 16 raised the price target on Energy Transfer LP (NYSE:ET) to $14 from $13 and reaffirmed an Overweight rating on the shares. The analyst believes there are still unique tailwinds within the firm’s North American midstream and refining coverage and that U.S. refining fundamentals will continue to fare well.
According to Insider Monkey’s data, 36 hedge funds were long Energy Transfer LP (NYSE:ET) at the end of Q2 2022, up from 31 funds in the last quarter. David Abrams’ Abrams Capital Management is the leading stakeholder of the company, with more than 22 million shares worth $220.80 million.
Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. 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.”
