In this article, we discuss the top 5 energy stock picks of Goldman Sachs. If you want to see more stocks in this selection, check out Goldman Sachs Energy Stocks: Top 10 Stock Picks.
5. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Goldman Sachs’ Stake Value: $927,898,000
Energy Transfer LP (NYSE:ET) is headquartered in Dallas, Texas, and the company provides energy-related services, including natural gas pipelines and natural gas storage facilities. Energy Transfer LP (NYSE:ET) is one of the premier Goldman Sachs energy stocks. The firm owns approximately 93 million shares of Energy Transfer LP (NYSE:ET) worth $928 million as of Q2 2022, representing 0.20% of the total holdings.
On October 25, Energy Transfer LP (NYSE:ET) declared a $0.265 per share quarterly dividend, a 15.2% increase from its prior dividend of $0.230. The dividend is payable on November 21, to shareholders of record on November 4. Energy Transfer LP (NYSE:ET)’s dividend yield on November 8 came in at 8.61%.
Morgan Stanley analyst Robert Kad on October 19 raised the price target on Energy Transfer LP (NYSE:ET) to $17 from $15 and kept an Overweight rating on the shares. Midstream earnings season is set to begin and he expects fewer material earnings beats than in Q2, but “nonetheless largely in-line results,” the analyst told investors.
According to Insider Monkey’s data, 36 hedge funds were bullish on Energy Transfer LP (NYSE:ET) at the end of June 2022, compared to 31 funds in the last quarter. David Abrams’ Abrams Capital Management is the biggest stakeholder of the company, with more than 22 million shares worth $220.8 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.”
