Top 5 Stock Picks of Henry Breck’s Heronetta Management

4. Energy Transfer LP (NYSE:ET)

Heronetta Management’s Stake Value: $9.3 million

Percentage of Heronetta Management’s 13F Portfolio: 7.19%

Number of Hedge Fund Holders: 29

Energy Transfer LP (NYSE:ET) is one of America’s largest energy companies with a diverse portfolio that includes transportation and storage of crude oil, natural gas liquids, and LNG. The current market cap of the company is $25.09 billion.

The third quarter of 2021 proved to be quite favorable for Energy Transfer LP (NYSE:ET). In the third quarter of 2021, the company generated $16.66 billion in revenue, beating the revenue estimates by $1.65 billion compared to $178.09 million in the previous quarter. However, the EPS for the same quarter for Energy Transfer LP (NYSE:ET) was $0.20 compared to $0.29 analyst estimates.

In the past year, Energy Transfer LP (NYSE:ET) went up by 69.94%. However, the most considerable feat achieved by the company during this year was $6 billion in debt reduction.

Miller Value Partners mentioned Energy Transfer LP (NYSE:ET) in its second-quarter 2021 investor letter. The contents of the letter can be read here:

“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 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.”