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Genesis Energy LP (GEL)
NYSE:GEL
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Genesis Energy
(NYSE:GEL)
Rating:52Neutral
Price Target:
$14.00
▼( -13.74% Downside)
Positive Factors
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.
EBITDA Growth
Genesis Energy has visible EBITDA growth tied to Gulf of Mexico volume ramp with modest capital expenditure and a robust free cash flow yield.
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
Financial Performance
The current free cash flow yield is seen as unsustainable and expected to compress to align with industry peers.
Free Cash Flow Yield
The free cash flow yield is believed to be unsustainable and is expected to compress more in line with peers.
Genesis Energy (GEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.99B
Dividend Yield3.97%
Average Volume (3M)369.77K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth-17.81%
EPS Growth-590.48%
CountryUS
Employees2,055
SectorEnergy
Sector Strength45
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.60
Shares Outstanding122,424,324
10 Day Avg. Volume324,324
30 Day Avg. Volume369,766
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.27
Price to Sales (P/S)0.00
P/FCF Ratio-10.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.50Price Target Upside1.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Genesis Energy Business Overview & Revenue Model
Company DescriptionGenesis 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 MoneyGenesis Energy generates revenue through a variety of midstream energy services. The company earns money from its offshore pipeline transportation segment by transporting crude oil and other hydrocarbons from offshore production facilities to onshore terminals and refineries. In its sodium minerals and sulfur services segment, Genesis Energy produces and markets sodium hydrosulfide and other related products, which are used in industries like mining and pulp and paper. The onshore facilities and transportation segment includes the company's oil and gas storage and terminaling services, as well as trucking and logistics services for the transportation of energy products. Additionally, Genesis Energy's marine transportation segment provides transportation of crude oil, refined products, and other liquid commodities via its fleet of barges and vessels. The company's revenue model is further supported by strategic partnerships and long-term contracts with major energy producers and refiners, which provide stable cash flows and mitigate exposure to market volatility.
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.45
Neutral
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.35
Negative
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.50
Neutral
| 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
Positive
16.23
Price Trends
14.43
Positive
12.80
Positive
12.39
Positive
Market Momentum
0.51
Negative
69.64
Neutral
91.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEL, the sentiment is Positive. The current price of 16.23 is above the 20-day moving average (MA) of 14.71, above the 50-day MA of 14.43, and above the 200-day MA of 12.39, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 69.64 is Neutral, neither overbought nor oversold. The STOCH value of 91.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEL.
Genesis Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.53B | 4.77 | 18.57% | 2.25% | -21.27% | -34.25% | |
80 Outperform | $1.84B | 5.77 | 17.57% | 13.79% | -18.74% | -39.64% | |
79 Outperform | $1.88B | 10.55 | 17.04% | 8.13% | -5.32% | 5.51% | |
68 Neutral | $2.25B | 14.09 | 542.39% | 10.37% | -8.79% | 7.75% | |
65 Neutral | $1.72B | 16.08 | 16.23% | 5.72% | 6.04% | 18.28% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% | |
52 Neutral | $1.99B | ― | -14.83% | 3.97% | -17.81% | -590.48% |
* Energy Sector Average
Performance Comparison
GEL
Genesis Energy
16.23
4.11
33.91%
DHT
DHT Holdings
11.69
0.38
3.36%
GLP
Global Partners
50.66
7.36
17.00%
TNK
Teekay Tankers
44.53
-25.44
-36.36%
DKL
Delek Logistics
42.11
6.50
18.25%
INSW
International Seaways
37.35
-19.79
-34.63%
Genesis Energy Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 13.02%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Genesis Energy's strategic exit from the soda ash business and promising developments in its offshore expansion projects. Despite some mechanical issues affecting production, the overall outlook remains positive, with expectations of increased cash flow and favorable market conditions in the Marine Transportation segment.Q1-2025 Updates
Positive Updates
Successful Exit from Soda Ash Business
Genesis Energy successfully exited its soda ash business, using the net proceeds to simplify their balance sheet and significantly reduce future cash costs.
Offshore Expansion Projects Near Completion
The Shenandoah and Salamanca offshore projects are nearing completion, expected to significantly increase production capacity by almost 200,000 barrels of oil per day.
Promising Future for Offshore Pipeline Segment
The anticipated increase in segment margin contribution from two new offshore developments is expected to enhance Genesis's financial position significantly.
Jones Act Market Conditions Support Marine Transportation
Marine Transportation segment is on pace to post record earnings in 2025 due to favorable Jones Act market conditions, with little to no new construction and steady demand.
Positive Long-term Outlook with New Federal Policies
New permitting procedures by the Department of Interior could expedite future deepwater projects, enhancing long-term opportunities for Genesis Energy.
Negative Updates
Mechanical Issues Affecting Offshore Production
Several producer customers are experiencing mechanical issues, affecting production in the Gulf of Mexico, with some repairs delayed.
Uncertainty in Timing of Offshore Project Ramps
Uncertain timing for completion and ramp-up of significant offshore projects, potentially affecting revenue forecasts.
Company Guidance
During the first quarter of 2025, Genesis Energy LP successfully exited its soda ash business, using the proceeds to enhance its balance sheet and reduce operational costs. The company is poised to generate excess cash flow and is optimistic about its future in the midstream energy sector. Key offshore projects, Shenandoah and Salamanca, near completion, with anticipated production of nearly 200,000 barrels of oil per day by the year's end. The Marine Transportation segment is set to achieve record earnings in 2025, supported by strong market conditions and a lack of new construction. The Onshore Transportation and Services segment saw steady volumes, and refineries performed as expected. Genesis plans to allocate excess cash flow to reduce debt, redeem high-cost units, and return capital to unitholders, aiming for a bank-calculated leverage ratio of approximately 4.0 times while maintaining financial flexibility.Genesis Energy Corporate Events
M&A TransactionsBusiness Operations and Strategy
Genesis Energy Sells Alkali Business for $1.425 Billion
Positive
Mar 5, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.