Genesis Energy (GEL) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: 4.23%
• Average Volume (3M): 230.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -28.72%
• EPS Growth: -1173.53%
• Country: US
• Employees: 2,055
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): -0.12
• Shares Outstanding: 122,424,324
• 10 Day Avg. Volume: 189,965
• 30 Day Avg. Volume: 230,951
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.13
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 20.94
• Enterprise Value/Ebitda: 12.63
• 1Y Price Target: $19.50
• Price Target Upside: 20.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $16.00 ▼(-1.11% Downside)

Genesis Energy's overall stock score reflects significant financial challenges, including high leverage and negative net income. However, positive developments from the earnings call, such as project successes and future cash flow growth, provide some optimism. The technical indicators and valuation suggest moderate risk, with a neutral market sentiment.

Positive Factors

Project Commissioning

The successful commissioning of the Shenandoah project enhances Genesis Energy's production capacity, supporting long-term growth in the Offshore Pipeline Transportation segment.

Operational Efficiency

Improved operational efficiency as seen in the rising gross profit margin indicates better cost management, which can enhance profitability over time.

Free Cash Flow Generation

The anticipated generation of free cash flow starting in Q3 2025 will improve financial flexibility, allowing for debt reduction and potential capital returns.

Negative Factors

High Leverage

The high leverage indicated by the rising debt-to-equity ratio increases financial risk, potentially limiting the company's ability to invest in growth opportunities.

Revenue Decline

The decline in revenue and negative profit margin reflect ongoing profitability challenges, which could hinder long-term financial health and market competitiveness.

Cash Flow Challenges

The significant drop in free cash flow growth indicates cash flow issues, which may affect the company's ability to fund operations and meet financial obligations.

Genesis Energy Business Overview & Revenue Model

Company Description

Genesis Energy, L.P. (GEL) is a diversified midstream energy company based in the United States, primarily engaged in the transportation, storage, and marketing of crude oil, natural gas, and refined products. The company operates through various segments, including crude oil pipelines, marine transportation, and logistics services, providing critical infrastructure for energy producers and consumers. Additionally, Genesis Energy has a presence in the production of sodium minerals and other industrial products, further expanding its portfolio and market reach.

How the Company Makes Money

Genesis Energy generates revenue through multiple streams, primarily by providing midstream services such as the transportation and storage of crude oil and natural gas. The company operates an extensive network of pipelines and terminals that facilitate the movement of oil and gas from production sites to refineries and markets. Key revenue streams include fees collected from customers for the use of its transportation infrastructure, which are often structured as long-term contracts with major oil and gas producers. Additionally, Genesis Energy earns income from its marine transportation services, which involve the movement of petroleum products via tankers and barges. The company also benefits from its investments in sodium mineral production, generating revenue from the sale of these industrial products. Significant partnerships with major energy companies and a strategic focus on expanding its operational capacity contribute to its overall earnings, positioning Genesis Energy as a vital player in the energy supply chain.

Genesis Energy Financial Statement Overview

Summary

Genesis Energy faces significant financial challenges, with declining revenues, high leverage, and cash flow issues. While there are some operational improvements, the negative net income and high debt levels pose substantial risks. The company needs to address its profitability and leverage to improve its financial health.

Income Statement

Genesis Energy's income statement reveals a challenging period with declining revenues and negative net income. The TTM data shows a significant revenue decline of 14.61% and a net profit margin of -24.19%, indicating profitability issues. However, the gross profit margin improved to 13.37% from the previous year's 10.74%, suggesting some operational efficiency gains. The EBIT and EBITDA margins are relatively stable, but the negative net income is a major concern.

Balance Sheet

The balance sheet highlights high leverage with a debt-to-equity ratio of 11.13 in the TTM period, up from 3.95 in the previous year. This indicates increased financial risk. The return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a sharp decline in free cash flow growth by 93.55% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is 0.37, suggesting that operating cash flow is not sufficient to cover the negative net income. The free cash flow to net income ratio is also negative, highlighting cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.22B	2.97B	3.18B	2.79B	2.13B	1.82B
Gross Profit	296.27M	318.48M	395.20M	341.61M	136.88M	113.83M
EBITDA	491.03M	580.28M	661.64M	571.22M	385.44M	115.25M
Net Income	-536.04M	-63.95M	117.72M	129.13M	-138.03M	-400.31M
Balance Sheet
Total Assets	4.84B	7.04B	7.02B	6.37B	5.91B	5.93B
Cash, Cash Equivalents and Short-Term Investments	4.45M	10.75M	9.23M	26.57M	24.99M	27.02M
Total Debt	3.11B	4.35B	4.00B	3.46B	2.98B	3.39B
Total Liabilities	4.12B	5.52B	5.31B	4.59B	3.93B	4.18B
Stockholders Equity	279.25M	1.10B	1.34B	6.11M	-5.61M	-9.37M
Cash Flow
Free Cash Flow	-7.62M	-195.21M	-98.89M	-89.80M	36.56M	152.61M
Operating Cash Flow	233.08M	391.93M	521.13M	334.39M	337.95M	296.75M
Investing Cash Flow	645.02M	-552.16M	-593.65M	-374.52M	-274.12M	-103.76M
Financing Cash Flow	-906.15M	161.74M	73.99M	41.70M	-65.86M	-222.38M

Genesis Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 16.18 is above the 20-day moving average (MA) of 15.68, below the 50-day MA of 16.29, and above the 200-day MA of 14.82, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 78.08 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
TNK	―	$2.06B	7.41	15.78%	3.35%	-21.71%	-37.58%
STNG	―	$3.13B	8.20	12.13%	2.60%	-34.54%	-42.46%
INSW	―	$2.45B	10.32	12.61%	6.59%	-22.01%	-54.34%
DKL	―	$2.45B	15.54	―	9.66%	-12.08%	1.44%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GLP	―	$1.57B	17.72	13.89%	6.50%	3.74%	-4.49%
GEL	―	$1.98B	―	-14.68%	4.23%	-28.72%	-1173.53%

Genesis Energy Corporate Events

Genesis Energy’s Earnings Call: Mixed Sentiments and Strategic Moves

The latest earnings call from Genesis Energy presented a mixed sentiment, balancing optimism about future production and strategic asset positioning with concerns over past delays and current challenges in marine transportation. While the anticipation of increased free cash flow and strategic infrastructure positioning are significant positives, the delays and guidance adjustment weigh on the overall sentiment.

Genesis Energy Reports Improved Q2 2025 Results

Genesis Energy, L.P., a diversified midstream energy master limited partnership based in Houston, operates in offshore pipeline transportation, marine transportation, and onshore transportation and services, primarily in the Gulf of America and the Gulf Coast region of the United States. In its second quarter 2025 earnings report, Genesis Energy reported a net loss of $0.4 million, a significant improvement from the $8.7 million loss in the same period last year. The company also highlighted cash flows from operating activities of $47 million, a decrease from $104.7 million in the previous year, and declared cash distributions of $0.9473 per preferred unit, totaling approximately $14.9 million. Key financial metrics included a total segment margin of $135.9 million and an adjusted EBITDA of $122.9 million for the quarter. The company successfully commissioned the Shenandoah production facility, contributing to the offshore pipeline transportation segment, and anticipates further production increases from the Shenandoah and Salamanca developments. Looking forward, Genesis Energy aims to enhance financial flexibility and liquidity, focusing on debt reduction and potential increased distributions to common unitholders, while remaining committed to long-term value creation for stakeholders.