Texas Republican Sen. Ted Cruz makes political news in Washington, D.C., but he’s also a prodigious investor, so wise investors watch his stocks.
However, Ted Cruz’s stocks reveal the conservative senator’s taste. His portfolio is dominated by oil and gas equities, which isn’t unexpected given his policies.
Cruz rejects political intervention in oil and gas mergers and prioritizes facts above anti-fossil fuel sentiment.
He wants to eliminate the Biden administration’s proposed gas heater efficiency requirements, which would compel homeowners and small businesses to undertake costly heating system upgrades.
Cruz also proposed the Energy Freedom Act to speed up federal energy project permits, oil and gas lease sales, and LNG export licenses. He strongly supports the Keystone XL pipeline and criticizes the Paris Agreement.
He picks stocks similar to his policy views, except when selling shares of a certain banking giant, which might seem strange. The pieces will fit together once you know how much he loves a certain digital treasure.
Let’s look into it more!
Goldman Sachs Group (GS)
There is a “Strong Buy” consensus rating on Goldman Sachs Group (NYSE:GS) stock. The consensus price target for the next 12 months is $452.32, which means that the last selling price of $403.11 could increase by 12%. However, regarding his stocks, Ted Cruz is not a fan of GS.
Senator Ted Cruz engaged in stock trading in 2024, especially with transactions involving The Goldman Sachs Group. Interestingly, he sold shares in this business for $250,000 to $500,000 in mid-April.
However, Goldman Sachs is doing well on its own. Net sales were $46.25 billion for the year and $11.32 billion for Q4. Net income was $8.52 billion for the year and $2.01 billion for Q4. The corporation streamlined its 2024 approach to serve customers effectively, run lasting enterprises, and scale operations. The super performance continued in Q1’24 results, with an EPS beat of 33%, thanks to $11.58 EPS on around $14 billion in revenue.
Perhaps the issue is a bit deeper. In the past, Cruz has spoken glowingly about Bitcoin (BTC-USD); he owns the digital asset and is “incredibly bullish on Bitcoin.” However, Goldman Sachs doesn’t share in the enthusiasm. “We’re not believers in crypto,” the chief investment officer of Goldman Sachs’ Wealth Management unit has said. Perhaps this is why Cruz sold off his shares; regardless, it’s an important move.
Enterprise Products Partners LP (EPD)
Enterprise Products Partners LP (NYSE:EPD) EPS for Q4 ’23 was 72 cents, more than 5% higher than the expected 68 cents. This is exactly the kind of return Ted Cruz will want from energy plays. Moving onto revenue, $14.62 billion beat, by 19%, the Wall Street expectations of $12.28 billion.
The corporation stated it will invest in energy initiatives that suit U.S. and global demands. These include new building projects and pipe and storage facility upgrades to boost efficiency and capacity. To expand its operations in the Permian Basin, the firm plans to construct a new natural gas processing facility in Texas. It will process natural gas better.
Enterprise Products Partners said it would give $0.515 per unit in cash every three months for the fourth quarter of 2023, leading to a 7% yield and 79%; head and shoulders above the industry average. The distribution has grown by over 5% since the fourth quarter of 2022 and 3% since the third quarter of 2023. Enterprise also bought back $96 million worth of common units in the fourth quarter of 2023, using 46% of its allowed $2.0 billion buyback program.
Compared to other Ted Cruz stocks, it has a strong buy rating and substantial upside potential of around 16%.
Oneok (OKE)
Oneok (NYSE:OKE), a Texas company that focuses on natural gas but has many other businesses, had a good year in 2023. Net income rose to $2.7 billion for the year, or $1.18 per common share. It grew to $688 million in the fourth quarter, or $1.18 per share.
During the year, operating efficiency increased 20% in the Rocky Mountain NGL raw feed flow and 17% in the Gulf Coast/Permian, resulting in 54% more wells.
In 2024, ONEOK thinks it will have a net income of $2.8 billion and an adjusted EBITDA of $6.1 billion. The Saguaro Connector Pipeline growth project and the Elk Creek Pipeline expansion project will cost the company between $1.75 billion and $1.95 billion to build out.
Additionally, in 2023, ONEOK bought Magellan to help NGL grow. That will pay dividends in the forthcoming quarters.
The $2 billion share purchase shows that ONEOK is financially stable and dedicated to shareholder returns. The yield of 5% also compares well with the industry average of around 4%; no wonder Cruz is a fan.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
