The Top 5 Stocks Billionaire David Tepper Was Buying in Q4

4. Energy Transfer L.P. (NYSE:ET)

Value of Appaloosa Management‘s 13F Position: $102 million

Number of Hedge Fund Shareholders: 36

David Tepper hiked his position in Energy Transfer L.P. (NYSE:ET) by 22% during Q4, building his position to 12.39 million shares. Other hedge funds were also taking note of the stock during Q4, as ownership of it jumped by 24% to hit its all-time high.

Energy Transfer L.P. (NYSE:ET), which functions primarily as an oil and natural gas midstream, transportation, and storage company, lowered its dividend in 2020 so it could focus on reducing its debt, which it did to the tune of $.69 billion in 2021. With that heavy lifting out of the way, the company announced a 15% dividend hike in February. Energy Transfer shares currently offer a hefty 6.9% dividend yield.

Miller Value Partners highlighted some of Energy Transfer L.P. (NYSE:ET)’s strong Q1 financial results 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 Core 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 f low 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.”