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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. faced negative drivers in recent months, primarily due to a 12% decline in Q2 revenue. The company's net loss attributable to Genesis Energy, L.P. was $0.4 million, significantly lower than the $8.7 million loss in the same period last year. Cash flows from operating activities also decreased to $47.0 million from $104.7 million. Despite the sale of its Alkali Business, which reduced debt, the company's high leverage and operational challenges persist. Additionally, some analysts have raised concerns, leading one to opt for Energy Transfer over Genesis Energy.

1.c. Company Highlights

2. Genesis Energy's Q3 2025 Earnings: A Mixed Bag with Offshore Pipeline Transportation Shining

Genesis Energy reported revenues that were in line with expectations, but the actual EPS came out at -$0.05, missing estimates of $0.13. The company's financial performance was a mixed bag, with the Offshore Pipeline Transportation segment showing significant improvement, while the Marine Transportation segment faced temporary challenges. The Onshore Transportation and Services segment performed as expected. The company's P/E Ratio stands at -3.71, and the P/S Ratio is at 0.99, indicating that the stock may be undervalued.

Publication Date: Nov -19

📋 Highlights
  • Offshore Pipeline Growth Projections:: Expected to reach 120,000 barrels per day by late 2026/early 2027, with Salamanca Floating Production Unit nearing 50,000 bpd capacity by Q2 2026 and total throughput exceeding 750,000 bpd on CHOPS and Poseidon pipelines.
  • Marine Transportation Recovery:: Anticipated stable-to-modest growth post-Q4 2025, driven by Gulf Coast refiners shifting to heavier crude slates, increasing demand for inland heater barges.
  • Onshore Terminal Volumes:: Texas and Raceland terminals/pipelines saw rising volumes, with continued growth expected alongside stable legacy refinery performance.
  • Capital Allocation Priorities:: $10M–$15M growth budget for tanks/pumps to boost throughput, focused on debt reduction, high-cost security redemptions, and distribution evaluation.

Offshore Pipeline Transportation: A Bright Spot

The Offshore Pipeline Transportation segment saw a sequential improvement in both volumes and segment margin, driven by the absence of weather-related disruptions, the resolution of producer mechanical issues, and the recognition of minimum volume commitments associated with the new Shenandoah Floating Production Unit. The segment is expected to grow to 120,000 barrels per day and possibly 10 to 20,000 barrels per day higher by the end of 2026 or early 2027. According to Grant Sims, the offshore business is a "self-regenerating annuity" that can regenerate itself every year if producers replace the reserves and move them through their pipeline.

Marine Transportation: Temporary Challenges Ahead

The Marine Transportation segment faced temporary challenges due to short-term market conditions. However, the company expects the segment to recover in the fourth quarter and deliver stable to modestly growing contributions in the years ahead. The company is confident that Gulf Coast refiners will shift back towards heavier crude slates, generating more refinery bottoms and increasing demand for their inland heater barges.

Onshore Transportation and Services: Steady Performance

The Onshore Transportation and Services segment performed as expected during the quarter. The company is seeing increasing volumes through their Texas and Raceland terminals and pipelines, and expects this trend to continue. The legacy refinery business performed in line with expectations.

Outlook and Valuation

Analysts estimate next year's revenue growth at 0.0%. The company's EV/EBITDA ratio stands at 10.13, indicating a moderate valuation. The Dividend Yield is 4.27%, which is attractive for income investors. With a Net Debt / EBITDA ratio of 6.24, the company's debt levels are a concern. However, the company's focus on debt reduction and generating free cash flow is a positive sign.

Growth Opportunities

The company has a modest growth capital budget of $10 million to $15 million, which will be directed towards tanks or pumps at their offshore and onshore facilities to support operations and increase throughputs on their existing footprint. The company is confident that more than 10 currently identified wells will be drilled in 2026, further adding to the backlog of future throughput and financial contribution from their offshore segment.

3. NewsRoom

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Graphano Closes Private Placement

Dec -03

Source: newsfilecorp.com

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Genesis Energy, L.P. to Participate in Investor Conferences

Dec -02

Source: businesswire.com

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7%+ Yields: I Am Giving Thanks For My Favorite Black Friday Special

Nov -28

Source: seekingalpha.com

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Genesis Energy, L.P. Class A Common Units (GEL) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Genesis Energy, L.P. Reports Third Quarter 2025 Results

Oct -30

Source: businesswire.com

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Genesis Energy, L.P. Releases 2024 Sustainability Report

Oct -30

Source: businesswire.com

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Graphano Expands Graphite Zones at the Black Pearl Graphite Project

Oct -14

Source: newsfilecorp.com

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Graphano Reports 8.61 Metres Grading 11.33% Cg from Drilling Program at the Black Pearl Graphite Project

Oct -07

Source: newsfilecorp.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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Delek Logistics Partners

A-Score: 6.4/10

Value: 4.9

Growth: 3.0

Quality: 4.6

Yield: 10.0

Momentum: 7.5

Volatility: 8.7

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Global Partners

A-Score: 6.0/10

Value: 6.9

Growth: 3.9

Quality: 3.1

Yield: 10.0

Momentum: 5.0

Volatility: 7.0

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Genesis Energy

A-Score: 5.8/10

Value: 7.0

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 7.5

Volatility: 6.3

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A-Score: 5.7/10

Value: 5.2

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 2.5

Volatility: 4.3

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NGL Energy Partners

A-Score: 4.7/10

Value: 7.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

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Overseas Shipholding Group

A-Score: 4.2/10

Value: 6.6

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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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

16.11$

Current Price

16.11$

Potential

-0.00%

Expected Cash-Flows