NGL - Why Units of NGL Energy Partners Are Skyrocketing Today
Units of NGL Energy Partners (NYSE: NGL) were up more than 20% as of 11 a.m. ET on Friday. Fueling the master limited partnership's (MLP) rally was its fiscal third-quarter report.
NGL Energy Partners' adjusted EBITDA increased from $147.7 million in last year's fiscal Q3 to $193.3 million. The main driver was record adjusted EBITDA in its water solutions segment, which jumped 47.1% to $121.7 million. The company benefited from strong disposal volume and skim oil growth, enabling it to achieve a record for water volumes processed in the quarter. NGL Energy Partners' crude oil logistics segment also reported increased earnings, fueled by higher product margins. That helped offset weaker liquids logistics earnings.
That strong performance and the return of working capital gave the company the cash to repurchase $97.5 million of its 2023 notes during the quarter. That reduced its remaining balance to $203 million. This year, the its key strategic goal is to pay off those notes and reduce total leverage. It plans to call the remaining notes by the end of June.
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Why Units of NGL Energy Partners Are Skyrocketing Today