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Genesis Energy LP (GEL)
NYSE:GEL
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Genesis Energy
(NYSE:GEL)
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Rating:49Neutral
Price Target:
$16.00
▲(3.09% Upside)
Genesis Energy's overall stock score reflects significant financial challenges and a concerning valuation, which are partially offset by a positive earnings call outlook. The technical analysis provides mixed signals, with short-term bullish momentum but potential overbought conditions. The company's strategic focus on debt reduction and growth in key segments offers some optimism for future performance.
Positive Factors
Offshore Pipeline Growth
Growth in the Offshore Pipeline segment, driven by increased throughput and new projects, strengthens Genesis Energy's market position and revenue potential.
Debt Reduction Strategy
Effective debt reduction enhances financial stability and flexibility, positioning the company for sustainable growth and potential capital returns.
Marine Transportation Recovery
Recovery in the Marine Transportation segment supports overall operational resilience, contributing to long-term revenue stability.
Negative Factors
High Leverage
High leverage poses financial risks, limiting flexibility and increasing vulnerability to market fluctuations, impacting long-term financial health.
Declining Revenue
Declining revenue and profitability issues suggest operational challenges, potentially hindering growth and market competitiveness.
Negative Cash Flow Trends
Negative cash flow trends indicate difficulties in generating sufficient cash, impacting the company's ability to invest in growth and meet obligations.
Genesis Energy (GEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.95B
Dividend Yield4.14%
Average Volume (3M)252.58K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth-36.47%
EPS Growth-75.37%
CountryUS
Employees2,055
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.05
Shares Outstanding122,424,324
10 Day Avg. Volume202,874
30 Day Avg. Volume252,577
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.12
Price to Sales (P/S)0.42
P/FCF Ratio-6.34
Enterprise Value/Market Cap3.16
Enterprise Value/Revenue3.21
Enterprise Value/Gross Profit18.91
Enterprise Value/Ebitda13.11
Forecast
1Y Price Target
$19.50Price Target Upside25.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 several key streams, including the transportation and storage of crude oil and refined products via its extensive pipeline network. The company earns fees for the transportation of hydrocarbons, which are typically based on the volume transported. Additionally, Genesis Energy has significant operations in the logistics and water treatment segments, providing essential services to upstream and midstream players in the energy sector. The company's revenue is further supported by long-term contracts with customers, ensuring a stable income flow. Strategic partnerships with major oil companies and other industry players enhance its operational capabilities and market reach, contributing significantly to its overall earnings.
Genesis Energy Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call for Genesis Energy indicated a positive outlook with significant growth in the Offshore Pipeline Transportation segment, successful debt reduction, and a promising financial trajectory. Despite some temporary challenges in the Marine Transportation segment and ongoing producer mechanical issues, the company is positioned for continued improvement and long-term value creation.Q3-2025 Updates
Positive Updates
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.
Negative Updates
Marine Transportation Segment Challenges
The Marine Transportation segment faced temporary challenges due to market conditions affecting day rates and utilization levels, particularly in the first part of the third quarter.
Producer Mechanical Issues
Some lingering challenges with high-margin fields affected 10 to 15 kbd of production, although efforts are underway to resolve these issues.
Company Guidance
During the Genesis Energy third quarter 2025 earnings call, CEO Grant Sims provided guidance indicating a positive outlook for the company's financial performance. The Offshore Pipeline Transportation segment showed a sequential 16% improvement, primarily due to increased throughput from the new Shenandoah Floating Production Unit (FPU) and the commencement of production from Salamanca, with expectations to reach 50,000 barrels per day (kbd) in the first half of 2026. The segment's total throughput on the CHOPS and Poseidon pipelines recently surpassed 700,000 barrels per day, with potential to regularly exceed this level. Genesis Energy anticipates generating $160 million in incremental segment margin from these developments while maintaining growth capital expenditures in the range of $10-15 million. Additionally, the Marine Transportation segment is expected to recover following temporary challenges, supported by a shift back to heavier crude slates by Gulf Coast refiners. The company aims to reduce its leverage ratio and generate increasing free cash flow, positioning itself for long-term stakeholder value while remaining focused on debt reduction and potential capital returns.Genesis Energy Financial Statement Overview
Summary
Genesis Energy faces significant financial challenges, with declining revenues and profitability issues. The balance sheet shows high leverage and negative equity returns, while cash flow metrics indicate difficulties in generating sufficient cash to cover losses. These factors suggest a need for strategic adjustments to improve financial health and sustainability.Income Statement
Genesis Energy's income statement reveals challenges with profitability, as evidenced by a negative net profit margin of -26.61% in the TTM period. The company has experienced a significant revenue decline of 13.55% in the TTM, indicating potential market or operational challenges. Gross profit margin has decreased to 16.97% from 21.19% in the previous year, suggesting increased cost pressures. However, the EBIT and EBITDA margins show some operational efficiency, with EBIT margin at 11.35% and EBITDA margin at 25.39%.Balance Sheet
The balance sheet highlights a high leverage situation with a debt-to-equity ratio of 11.99 in the TTM, indicating significant reliance on debt financing. The return on equity is negative at -104.53%, reflecting substantial losses relative to shareholder equity. The equity ratio is low, suggesting limited equity buffer against liabilities. These factors point to financial instability and potential risks in managing debt obligations.Cash Flow
Cash flow analysis shows a concerning trend with a free cash flow growth rate of -115.01% in the TTM, indicating a substantial decline in free cash flow. The operating cash flow to net income ratio is 0.32, suggesting that operating cash flow is not sufficient to cover net losses. The free cash flow to net income ratio is low at 0.06, highlighting challenges in generating cash relative to net losses.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.92B | 2.97B | 3.18B | 2.79B | 2.13B | 1.82B |
| Gross Profit | 324.93M | 315.53M | 395.20M | 637.82M | 136.88M | 409.15M |
| EBITDA | 468.93M | 557.31M | 661.64M | 571.22M | 407.11M | 351.82M |
| Net Income | -509.65M | -63.95M | 117.72M | 75.46M | -165.07M | -416.68M |
Balance Sheet | ||||||
| Total Assets | 4.87B | 7.04B | 7.07B | 6.38B | 5.92B | 5.95B |
| Cash, Cash Equivalents and Short-Term Investments | 4.92M | 10.75M | 28.04M | 26.57M | 24.99M | 27.02M |
| Total Debt | 3.04B | 4.35B | 4.00B | 3.60B | 3.12B | 3.55B |
| Total Liabilities | 4.16B | 5.52B | 5.36B | 4.60B | 3.94B | 4.20B |
| Stockholders Equity | 253.38M | 1.10B | 1.34B | 1.47B | 1.43B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | -41.19M | -195.21M | -98.89M | -89.80M | 36.56M | 152.61M |
| Operating Cash Flow | 216.01M | 391.93M | 521.13M | 334.39M | 337.95M | 296.75M |
| Investing Cash Flow | 736.07M | -552.16M | -593.65M | -374.52M | -274.12M | -103.76M |
| Financing Cash Flow | -978.94M | 161.74M | 73.99M | 41.70M | -65.86M | -222.38M |
Genesis Energy Technical Analysis
Negative
15.52
Price Trends
15.70
Negative
15.92
Negative
15.67
Negative
Market Momentum
-0.04
Positive
48.08
Neutral
17.15
Positive
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 15.52 is below the 20-day moving average (MA) of 15.65, below the 50-day MA of 15.70, and below the 200-day MA of 15.67, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 17.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEL.
Genesis Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.69B | 12.39 | 11.43% | 6.12% | -23.59% | -57.70% | |
75 Outperform | $2.91B | 8.93 | 9.63% | 3.19% | -35.37% | -57.86% | |
68 Neutral | $2.04B | 6.54 | 17.02% | 3.72% | -20.11% | -26.44% | |
66 Neutral | $2.55B | 15.47 | ― | 9.78% | -1.78% | 9.32% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $1.42B | 20.39 | 11.24% | 6.93% | 4.10% | -36.72% | |
49 Neutral | $1.95B | -12.07 | -11.88% | 4.14% | -36.47% | -75.37% |
* Energy Sector Average
GEL
Genesis Energy
15.52
5.69
57.88%
GLP
Global Partners
41.90
-1.60
-3.68%
STNG
Scorpio Tankers
56.18
1.55
2.84%
TNK
Teekay Tankers
59.10
13.94
30.87%
DKL
Delek Logistics
46.75
8.45
22.06%
INSW
International Seaways
54.51
15.94
41.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.