Offshore Pipeline Transportation Segment Growth
The Offshore Pipeline Transportation segment saw a significant 16% sequential improvement. The Shenandoah Floating Production Unit reached its target production rate of 100,000 barrels per day, significantly contributing to financial performance.
Increased Throughput Capacity
Total throughput on the CHOPS and Poseidon pipelines exceeded 700,000 barrels a day, with expectations to surpass this level as new projects reach full potential.
Financial Outlook and Debt Reduction
Genesis Energy reported generating excess cash in the third quarter, which was used to reduce borrowings under the senior secured revolving credit facility. This positions the company to improve its leverage ratio throughout 2026.
Marine Transportation Segment Recovery
Despite early quarter challenges, Marine Transportation is expected to recover in the fourth quarter, with stable growth anticipated due to no net new supply of certain vessel classes.