Genesis Energy (GEL) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: 3.95%
• Average Volume (3M): 460.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -17.81%
• EPS Growth: -590.48%
• Country: US
• Employees: 2,055
• Sector: Energy
• Sector Strength: 68
• Industry: Oil & Gas Midstream
• EPS (TTM): -0.60
• Shares Outstanding: 122,424,324
• 10 Day Avg. Volume: 470,056
• 30 Day Avg. Volume: 460,358
• PEG Ratio: 0.03
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.34
• Enterprise Value/Market Cap: 2.74
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 19.08
• Enterprise Value/Ebitda: 2.51
• 1Y Price Target: $15.00
• Price Target Upside: -9.86% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $16.00 ▼(-3.85%Downside)

Genesis Energy's overall score is primarily driven by the significant financial challenges it faces, including high leverage and cash flow issues. However, the positive outlook from the earnings call and the stock's technical strength provide some optimism. The company's strategic efforts to focus on core operations and reduce debt add to the positive sentiment but are not enough to offset the financial weaknesses entirely.

Positive Factors

Distribution Growth

Analyst forecasts a 10% annual distribution growth beginning in 2025, which could be conservative.

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

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 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 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 significant financial challenges with negative profitability, high leverage, and cash flow difficulties. Despite some operational improvements, such as better EBITDA margins, the company's high debt levels and cash flow management issues need addressing to stabilize its financial position.

Income Statement

Genesis Energy's income statement reveals a challenging financial position. The TTM data shows a negative net income, indicating losses, and a declining gross profit margin from previous periods. Revenue has been decreasing with a negative growth rate compared to the prior year. Furthermore, negative EBIT and EBITDA margins in previous years highlight operational inefficiencies, but there has been some improvement in the TTM period.

Balance Sheet

Genesis Energy's balance sheet reflects a high debt-to-equity ratio, suggesting significant leverage and financial risk. The equity ratio indicates a low proportion of equity financing, which can be risky. The consistent reduction in stockholders' equity further emphasizes financial instability, though there is a slight improvement in the recent TTM data.

Cash Flow

The cash flow statement indicates a negative free cash flow in the TTM period, with fluctuations in capital expenditures. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio remains negative, highlighting ongoing cash flow challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.59B	2.97B	3.18B	2.79B	2.13B	1.82B
	Gross Profit
292.53M	318.48M	395.20M	341.61M	136.88M	113.83M
	EBIT
164.50M	213.10M	329.42M	22.25M	-212.38M	-181.66M
	EBITDA
507.49M	580.28M	661.64M	571.22M	385.44M	115.25M
	Net Income Common Stockholders
-544.38M	-63.95M	117.72M	129.13M	-138.03M	-400.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.02M	10.75M	9.23M	26.57M	24.99M	27.02M
	Total Assets
5.93B	7.04B	7.02B	6.37B	5.91B	5.93B
	Total Debt
3.39B	4.35B	4.00B	3.46B	2.98B	3.39B
	Net Debt
3.37B	4.34B	3.99B	3.44B	2.95B	3.37B
	Total Liabilities
4.18B	5.52B	5.31B	4.59B	3.93B	4.18B
	Stockholders Equity
1.75B	1.10B	1.34B	6.11M	-5.61M	-9.37M
Cash Flow		Free Cash Flow
-118.01M	-195.21M	-98.89M	-89.80M	36.56M	152.61M
	Operating Cash Flow
294.96M	391.93M	521.13M	334.39M	337.95M	296.75M
	Investing Cash Flow
538.95M	-552.16M	-593.65M	-374.52M	-274.12M	-103.76M
	Financing Cash Flow
-491.40M	161.74M	73.99M	41.70M	-65.86M	-222.38M

Genesis Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 16.64 is above the 20-day moving average (MA) of 16.14, above the 50-day MA of 14.84, and above the 200-day MA of 12.66, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 79.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEL.

Genesis Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSW	80 Outperform	$1.92B	6.00	17.57%	6.18%	-18.74%	-39.64%
DHT	79 Outperform	$1.91B	10.75	17.04%	5.03%	-5.32%	5.51%
TNK	75 Outperform	$1.59B	4.92	18.57%	10.89%	-21.27%	-34.25%
GLP	73 Outperform	$1.86B	17.37	16.23%	5.44%	6.04%	18.28%
DKL	68 Neutral	$2.34B	14.65	542.39%	10.15%	-8.79%	7.75%
Sector *	58 Neutral	$7.53B	3.34	-4.45%	10.13%	0.83%	-49.64%
GEL	56 Neutral	$2.04B	―	-14.83%	3.95%	-17.81%	-590.48%

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.