5 Value Stocks in Blackstone Group’s Portfolio

3. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 36

P/E Ratio: 5.16

Energy Transfer LP (NYSE:ET) provides energy-related services in the state of Texas and Oklahoma. Blackstone Group owns 171.5 million Energy Transfer LP (NYSE:ET) shares as of Q4 2021, worth $1.4 billion, representing 3.53% of the firm’s 13F portfolio. 

On February 16, Energy Transfer LP (NYSE:ET) announced its Q4 results, reporting earnings per share of $0.30, exceeding consensus estimates by $0.08. The company’s revenue jumped roughly 86% year-on-year to $18.66 billion, surpassing market predictions by $2.04 billion. 

Energy Transfer LP (NYSE:ET) on January 25 declared a $0.175 per share quarterly dividend, a 14.8% increase from its previous dividend of $0.1525. The dividend was paid on February 18, to shareholders of record on February 8. 

Mizuho analyst Gabriel Moreen raised the price target on Energy Transfer LP (NYSE:ET) on February 18 to $14 from $13 and kept a Buy rating on the shares. In addition to issuing a “strong” 2022 EBITDA guidance, Energy Transfer LP (NYSE:ET) also reported positive updates in several commercial key areas that enhance its growth potential, the analyst told investors in a research note.

Abrams Capital Management held the biggest stake in Energy Transfer LP (NYSE:ET), with 22.1 million shares worth $182 million. Overall, 36 hedge funds were bullish on Energy Transfer LP (NYSE:ET), with collective stakes amounting to $635.6 million. 

Here is what Miller Value Partners has to say about Energy Transfer LP (NYSE:ET) in its Q2 2021 investor letter:

“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.”