What happened
Shares of NGL Energy Partners (NGL 0.85%) were soaring 12.5% higher at 10:57 a.m. ET on Monday, continuing their meteoric ascent following an upbeat fiscal third-quarter earnings report on Thursday that saw it turn a $0.35-per-share loss last year into a $0.19-per-share profit this year.
NGL's units -- since it is a master limited partnership (MLP), it issues units, not shares -- have now nearly doubled in value this year. Since they are traded on the NYSE, they function much like stock shares.
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So what
NGL is a midstream operator in the energy industry, transporting, treating, recycling, and disposing of water that is generated as part of the energy production process. It also transports, stores, markets, and offers other logistics services for crude oil and liquid hydrocarbons.
Oil and gas production has gotten a big boost over the past year, especially in the wake of the Russian invasion of Ukraine, and the handling of the water used and produced has gotten a tremendous boost as a result.
NGL reports its water solutions segment enjoyed record adjusted earnings in the quarter, as it processed record volumes of water. That allowed NGL to increase the amount of debt it retired in the period as well as raise its guidance for the segment for the full year.
Now what
With the improved outlook and better financial condition, NGL is looking to sell off noncore assets to help lighten its debt load. At the end of the third quarter, it had $2.9 billion in long-term debt (down from $3.4 billion), and $4.5 million in cash, up from $3.8 million last March.
