Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential

6. Energy Transfer LP (NYSE:ET)

Appaloosa Management Stake Value: $96,279,659

Upside Potential as of May 5: 38.57%

Number of Hedge Fund Holders: 37

Energy Transfer LP (NYSE:ET) is one of North America’s largest and most diversified midstream energy companies. It transports and stores natural gas, natural gas liquids (NGLs), refined products, and crude oil. The company also has investments in related operations, including Sunoco LP and USA Compression Partners. On April 23, 2025, Energy Transfer (NYSE: ET) raised its quarterly distribution to $0.3275 per unit, a 3% increase from last year, reflecting strong cash flow and growth confidence.

Just two weeks ago, Energy Transfer LP (NYSE:ET) had signed an agreement with MidOcean Energy to jointly develop its Lake Charles LNG export facility. The terms dictate that MidOcean Energy will fund 30% of the construction costs and be entitled to receive 30% of the LNG production (approximately 5.0 million tons per annum). If the project reaches a positive final investment decision (FID), the export facility will be constructed on an existing brownfield regasification facility site. This will capitalize on Energy Transfer’s (NYSE:ET) existing LNG storage tanks, deepwater berths, and pipeline infrastructure.

On April 29, 2025, Mizuho Securities adjusted its outlook on Energy Transfer (NYSE:ET), reducing the price target from $24.00 to $22.00 while maintaining an Outperform rating. The analysts attributed this reassessment to the company’s fiscal year 2025 adjusted EBITDA guidance coming in below expectations and a significant increase in anticipated growth capital expenditures.