Genesis Energy (GEL) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: 4.74%
• Average Volume (3M): 787.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -6.63%
• EPS Growth: -661.64%
• Country: US
• Employees: 2,055
• Sector: Energy
• Sector Strength: 59
• Industry: Oil & Gas Midstream
• EPS (TTM): -1.24
• Shares Outstanding: 122,424,324
• 10 Day Avg. Volume: 538,889
• 30 Day Avg. Volume: 787,202
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.64
• Price to Cash Flow (P/CF): 6.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.50
• Price Target Upside: 24.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Genesis Energy's overall stock score reflects significant financial challenges, including high leverage and declining profitability. However, positive technical indicators and strategic corporate events, such as asset sales and debt refinancing, provide some balance. The earnings call supports optimism in specific segments, yet broader market challenges persist.

Positive Factors

Company Rating and Target Price

Genesis Energy is upgrading to an overweight rating with a raised price target of $18 per unit, reflecting confidence in the company's future performance.

Debt Reduction

Genesis Energy has undertaken a clear path to de-leveraging, using cash proceeds to pay down significant portions of debt and reducing annual expense.

Financial Flexibility

The company is expected to have significant financial flexibility with substantial debt reduction and preferred repurchases projected in the coming years.

Negative Factors

EBITDA Performance

Genesis Energy's Q3 EBITDA was below expectations due to issues in offshore operations and a weak soda ash market.

Free Cash Flow Concerns

The free cash flow yield is believed to be unsustainable and is expected to compress more in line with peers.

Operational Challenges

2024 EBITDA is expected to be below the previously provided low-end guidance due to ongoing operational challenges.

Genesis Energy Business Overview & Revenue Model

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.

How the Company Makes Money

Genesis Energy generates revenue through a variety of streams within its midstream and downstream operations. Firstly, the company earns money by transporting crude oil, natural gas, and refined products via its network of pipelines, which involves charging fees for the transportation and storage services provided to its customers. Additionally, Genesis Energy is involved in the processing of natural gas and sulfur, where it derives income through the sale of processed products. The company's marketing operations allow it to generate revenue by buying and selling energy commodities. Furthermore, Genesis Energy benefits from strategic partnerships and joint ventures that expand its reach and capabilities within the energy sector, contributing significantly to its earnings. Key factors such as long-term contracts, operational efficiencies, and asset optimization also play a crucial role in the company’s ability to generate steady cash flows.

Genesis Energy Financial Statement Overview

Summary

Genesis Energy faces a challenging financial landscape with declining revenues and profitability issues. The high leverage and negative return on equity pose risks, while cash flow generation from operations is a relative strength. The company needs to address operational inefficiencies and manage debt levels to stabilize its financial position.

Income Statement

Genesis Energy's revenue has declined in the TTM period compared to the previous year, reflecting a challenging operating environment. The gross profit margin improved significantly, indicating better cost management. However, the net profit margin turned negative in the TTM period, highlighting profitability concerns. The EBIT and EBITDA margins have also declined, indicating operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio due to significant debt levels, suggesting potential financial risk. The return on equity is negative, indicating losses for shareholders. The equity ratio shows a low percentage of equity in the capital structure, which could limit financial flexibility.

Cash Flow

Operating cash flow remains positive, which is a strength, but the free cash flow is negative due to high capital expenditures. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio is negative, reflecting cash generation challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.97B	3.18B	2.79B	2.13B	1.82B
	Gross Profit
315.53M	395.20M	341.61M	136.88M	113.83M
	EBIT
213.10M	329.42M	22.25M	-212.38M	-181.66M
	EBITDA
557.31M	661.64M	571.22M	385.44M	115.25M
	Net Income Common Stockholders
-63.95M	117.72M	129.13M	-138.03M	-400.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.75M	9.23M	26.57M	24.99M	27.02M
	Total Assets
7.04B	7.02B	6.37B	5.91B	5.93B
	Total Debt
3.82B	4.00B	3.46B	2.98B	3.39B
	Net Debt
3.81B	3.99B	3.44B	2.95B	3.37B
	Total Liabilities
5.52B	5.31B	4.59B	3.93B	4.18B
	Stockholders Equity
1.52B	1.34B	6.11M	-5.61M	-9.37M
Cash Flow		Free Cash Flow
-195.21M	-98.89M	-89.80M	36.56M	152.61M
	Operating Cash Flow
391.93M	521.13M	334.39M	337.95M	296.75M
	Investing Cash Flow
-552.16M	-593.65M	-374.52M	-274.12M	-103.76M
	Financing Cash Flow
161.74M	73.99M	41.70M	-65.86M	-222.38M

Genesis Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEL, the sentiment is Negative. The current price of 13.28 is below the 20-day moving average (MA) of 14.75, above the 50-day MA of 12.86, and above the 200-day MA of 12.40, indicating a neutral trend. The MACD of 0.98 indicates Negative momentum. The RSI at 77.62 is Negative, neither overbought nor oversold. The STOCH value of 63.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEL.

Genesis Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	80 Outperform	$14.11B	9.21	50.12%	9.46%	16.06%	54.94%
PAA	78 Outperform	$12.20B	23.68	7.56%	7.68%	3.28%	-47.59%
EPD	77 Outperform	$66.81B	11.58	20.78%	6.81%	12.71%	6.74%
OKE	66 Neutral	$50.51B	15.63	18.11%	4.95%	24.16%	-6.58%
Sector *	57 Neutral	$7.70B	4.18	-3.52%	8.32%	0.35%	-64.68%
GEL	57 Neutral	$1.63B	―	-5.23%	4.74%	-6.63%	-661.64%

Genesis Energy Corporate Events

Genesis Energy Sells Alkali Business for $1.425 Billion

On February 28, 2025, Genesis Energy completed the sale of its soda ash operations, known as the Alkali Business, to an affiliate of WE Soda Ltd for approximately $1.425 billion. This transaction allows Genesis to focus on its core midstream energy operations and provides financial flexibility to simplify its capital structure, pay down debt, and potentially increase distributions to unitholders.