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1. Company Snapshot

1.a. Company Description

Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry.The company's Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations; and in the deepwater pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico.This segment owns interests in approximately 1,422 miles of crude oil pipelines located offshore in the Gulf of Mexico.


Its Sodium Minerals and Sulfur Services segment offers sulfur-extraction services to refining operations; and operates storage and transportation assets.This segment provides services to ten refining operations; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals.Its Onshore Facilities and Transportation segment offers onshore facilities and transportation services to Gulf Coast crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products.


It operates trucks, trailers, railcars, and terminals and tankage with 4.2 million barrels of storage capacity in various locations along the Gulf Coast.This segment also transports crude oil.It owns four onshore crude oil pipeline systems with approximately 450 miles of pipe in Alabama, Florida, Louisiana, Mississippi, and Texas; and four operational crude oil rail unloading facilities in Baton Rouge, Raceland, and Louisiana, as well as Walnut Hill, Florida and Natchez, Mississippi.


Its Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America.This segment owns a fleet of 91 barges with a combined transportation capacity of 3.2 million barrels; and 42 push/tow boats.In addition, the company produces natural soda ash.


Genesis Energy, LLC serves as a general partner of the company.The company was incorporated in 1996 and is headquartered in Houston, Texas.

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1.b. Last Insights on GEL

Genesis Energy, L.P.'s recent performance was driven by strong Q4 2025 earnings, with net income attributable to the partnership of $19.9 million, compared to a net loss of $49.4 million in the same period in 2024. Cash flows from operating activities increased to $110.8 million. The company's offshore pipeline network in the Gulf of Mexico continues to drive growth, with volume surges from new projects like Mad Dog Phase 2, Shenandoah, and Salamanca. A recent public offering of $750 million in senior notes due 2034 was upsized and priced.

1.c. Company Highlights

2. Genesis Energy's Q4 2025 Earnings: A Mixed Bag

Genesis Energy, L.P. reported a revenue growth of 1.9% for the next year, according to analyst estimates, but the company's Q4 2025 earnings per share (EPS) came out at $0.04, significantly lower than the estimated $0.28. The company's financial performance was mixed, with the offshore pipeline transportation segment delivering strong growth, while the marine transportation segment returned to a more normalized level of operating performance. The onshore transportation and services segment performed in line with expectations.

Publication Date: Mar -08

📋 Highlights
  • Offshore Pipeline Growth:: Strong sequential growth in offshore transportation, driven by Shenandoah (full quarter) and Salamanca (ramping), with CHOPS and Poseidon pipelines seeing increased volumes and margins.
  • 2026 EBITDA Guidance:: Anticipated 15-20% sequential growth in adjusted EBITDA, building on normalized 2025 adjusted EBITDA of $500M-$510M.
  • Distribution Increase:: Quarterly common unit distribution raised to $0.18, a 9.1% year-over-year increase.
  • Debt Reduction:: Company exited 2025 with effectively zero drawn on its $800M senior secured credit facility.
  • Marine Maintenance Impact:: Dry docking and maintenance costs expected to reduce marine segment margin by $5M-$10M and maintenance CapEx by $15M-$20M in 2026.

Segment Performance

The offshore pipeline transportation segment saw strong growth driven by steady base volumes, a full quarter of volumes from Shenandoah, and continued ramping volumes from Salamanca. The marine transportation segment returned to a more normalized level of operating performance as refinery customers increased runs of heavy crude oil. The onshore transportation and services segment performed in line with expectations, with throughput volumes increasing across Texas and Raceland terminals and pipelines.

Guidance and Outlook

Looking ahead to 2026, Genesis Energy expects to deliver sequential growth in adjusted EBITDA of plus or minus 15% to 20% over their normalized 2025 adjusted EBITDA of $500,000,000 to $510,000,000. The company is confident in meeting or exceeding this guidance, with the growth driven by the offshore pipeline transportation segment. As Grant E. Sims stated, "the Genesis Energy, L.P. story is largely a deepwater Gulf of Mexico growth story."

Valuation and Dividend

Genesis Energy's valuation metrics indicate a relatively high price-to-book ratio of 9.3 and an EV/EBITDA ratio of 10.32. The company's dividend yield is 3.73%, which is attractive for income investors. The Board's decision to increase the quarterly common unit distribution to $0.18 per unit, representing a 9.1% increase year over year, is a positive development. With a net debt to EBITDA ratio of 5.96, the company's leverage is relatively high, but the increasing LTM EBITDA and debt repayment using free cash flow are expected to help reduce it.

Future Prospects

The recent acquisition of LLOG by Harbor Energy is expected to contribute to Genesis Energy's growth, with the doubling of LLOG's production over the next two years. The company's long-term target for the leverage ratio is around 4, and it plans to evaluate distribution growth on a quarterly basis. With effectively zero net new supply of their classes of Jones Act vessels and high cost and long lead times required to construct new equipment, the company remains confident in the long-term fundamentals of the marine transportation sector.

3. NewsRoom

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Graphano Advances Black Pearl Project and Engages AI Resource Exploration to Refine High-Priority Targets

Apr -09

Source: newsfilecorp.com

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Genesis Energy: Cash Flow Growth Likely To Slow Down Going Forward (Rating Downgrade)

Apr -05

Source: seekingalpha.com

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Chickasaw Capital Management LLC Has $43.67 Million Holdings in Genesis Energy, L.P. $GEL

Mar -24

Source: defenseworld.net

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3 Pipeline Stocks to Buy in March

Mar -14

Source: fool.com

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Genesis Energy, L.P. Announces Extension of its Revolving Credit Facility and the Opportunistic Repurchase of $110 Million of its Series A Convertible Preferred Units

Mar -09

Source: businesswire.com

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Genesis Energy, L.P. $GEL Shares Sold by Cresset Asset Management LLC

Mar -09

Source: defenseworld.net

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Graphano Announces Warrant Repricing

Mar -05

Source: newsfilecorp.com

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Genesis Energy, L.P. Announces Early Results and Initial Settlement Date for Tender Offer for Any and All of Its 7.750% Senior Notes Due 2028

Mar -05

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.60%)

6. Segments

Soda and Sulfur Services

Expected Growth: 4.5%

Growing demand for soda ash and sulfur products, coupled with increasing need for efficient supply chain management, drives growth in logistics and transportation services. Genesis Energy's expertise in handling these products ensures a competitive edge, contributing to a forecasted CAGR of 4.5%.

Onshore Facilities and Transportation

Expected Growth: 4.8%

Increasing demand for oil and natural gas, advancements in drilling technologies, and growing need for efficient transportation infrastructure drive growth in onshore facilities and transportation segment.

Offshore Pipeline Transportation

Expected Growth: 4.8%

Increasing demand for oil and natural gas, coupled with the need for efficient transportation, drives growth in offshore pipeline transportation. Genesis Energy's strategic location in the Gulf of Mexico and its extensive pipeline network support this growth.

Marine Transportation

Expected Growth: 4.5%

Increasing demand for petroleum products, growth in crude oil production, and limited pipeline capacity drive the need for waterborne transportation, supporting the growth of Genesis Energy's Marine Transportation segment.

7. Detailed Products

Crude Oil Transportation

Genesis Energy, L.P. provides transportation services for crude oil through its pipeline network, connecting producers to refineries and other destinations.

Refined Products Transportation

Genesis Energy, L.P. transports refined petroleum products, such as gasoline, diesel, and jet fuel, through its pipeline network, connecting refineries to distribution terminals and retail outlets.

Sulfuric Acid Transportation

Genesis Energy, L.P. provides transportation services for sulfuric acid, a key component in the production of fertilizers and other industrial applications.

Carbon Dioxide Transportation

Genesis Energy, L.P. transports carbon dioxide, used in enhanced oil recovery (EOR) operations, through its pipeline network, connecting CO2 sources to oil fields.

Terminaling and Storage

Genesis Energy, L.P. provides terminaling and storage services for petroleum products, offering a secure and efficient way to store and transfer products.

Marine Transportation

Genesis Energy, L.P. provides marine transportation services for petroleum products, connecting refineries to distribution terminals and retail outlets.

8. Genesis Energy, L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Genesis Energy, L.P. is medium due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers for Genesis Energy, L.P. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Genesis Energy, L.P. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Genesis Energy, L.P. is high due to the relatively low barriers to entry in the energy industry.

Intensity Of Rivalry

The intensity of rivalry for Genesis Energy, L.P. is high due to the highly competitive nature of the energy industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 73.82%
Debt Cost 7.20%
Equity Weight 26.18%
Equity Cost 13.83%
WACC 8.94%
Leverage 282.01%

11. Quality Control: Genesis Energy, L.P. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Dorian LPG

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Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 7.0

Volatility: 5.3

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Delek Logistics Partners

A-Score: 6.7/10

Value: 4.0

Growth: 3.0

Quality: 6.0

Yield: 10.0

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Global Partners

A-Score: 5.8/10

Value: 7.5

Growth: 3.9

Quality: 3.1

Yield: 10.0

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Genesis Energy

A-Score: 5.7/10

Value: 4.9

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 9.0

Volatility: 6.3

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NGL Energy Partners

A-Score: 4.9/10

Value: 7.2

Growth: 3.6

Quality: 5.8

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

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Overseas Shipholding Group

A-Score: 4.5/10

Value: 7.2

Growth: 5.9

Quality: 5.4

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.13$

Current Price

17.14$

Potential

-0.00%

Expected Cash-Flows