NGL's stock surges on heavy volume after Oaktree investment

NGL Energy Partners' stock rocketed 31% in active morning trade Friday, after the energy company announced a $200 million investment from Oaktree Capital Management. Volume topped 6.5 million shares within the first 30 minutes of trade, compared with the full-day average of 1.5 million shares. The company said late Thursday that it will issue $200 million of Class A convertible preferred units to funds managed by Oaktree. NGL said it plans to use the proceeds from the investment to pay down debt. The company said it also formed a strategic relationship with Oaktree to pursue opportunities. "The investment by Oaktree is a strong endorsement of our business model, strategy and future growth projects," said NGL Chief Executive Mike Krimbill. "We plan to jointly pursue certain attractive assets together that Oaktree will assist in financing/structuring and NGL will operate." The stock has now gained 29% year to date, but is still down 49% over the past 12 months.

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