Genesis Energy, L.P. Reports Third Quarter 2025 Results

October 30, 2025

by WebSupport@BusinessWire.com

HOUSTON–(BUSINESS WIRE)–Genesis Energy, L.P. (NYSE: GEL) today announced its third quarter results.

We generated the following financial results for the third quarter of 2025:

Net Income Attributable to Genesis Energy, L.P. of $9.2 million for the third quarter of 2025 compared to Net Loss Attributable to Genesis Energy, L.P. of $17.2 million for the same period in 2024.

Cash Flows from Operating Activities of $70.3 million for the third quarter of 2025 compared to $87.3 million for the same period in 2024.

We declared cash distributions on our preferred units of $0.9473 for each preferred unit, which equates to a cash distribution of approximately $14.9 million and is reflected as a reduction to Available Cash before Reserves to common unitholders.

Available Cash before Reserves to common unitholders of $35.5 million for the third quarter of 2025, which provided 1.76X coverage for the quarterly distribution of $0.165 per common unit attributable to the third quarter.

Total Segment Margin of $146.6 million for the third quarter of 2025.

Adjusted EBITDA of $132.0 million for the third quarter of 2025.

Adjusted Consolidated EBITDA of $566.6 million for the trailing twelve months ended September 30, 2025 and a bank leverage ratio of 5.41X, both calculated in accordance with our senior secured credit agreement and discussed further in this release.

Grant Sims, CEO of Genesis Energy, said, “Our reported results for the third quarter were broadly in-line with our internal expectations. We were particularly pleased with the performance of our offshore pipeline transportation segment, which benefited from several favorable factors, including no weather-related disruptions to throughput on our pipelines and a quarter of minimum volume payments associated with the new Shenandoah floating production system, which, I would add, exited the quarter at a level significantly above the minimum volume commitment reflected in the financial results reported herein. This overperformance was partially offset by weakness in our marine transportation segment, where the marine market was somewhat challenged in July and the early part of August. Judging by September’s results, as well as October’s, we believe these headwinds have largely passed, and the marine transportation segment is positioned to generate financial results in the fourth quarter consistent with the first and second quarter.

Most importantly, we are excited about the successful start-up and ramp-up we have seen from both the Shenandoah and Salamanca new floating production units which are tied into our one hundred percent owned and operated SYNC and SEKCO laterals, respectively, for further transportation to shore through our sixty-four percent owned and operated CHOPS and/or Poseidon crude oil pipelines. While both dates of first oil were somewhat delayed from the original expectations that we, including the operators, all had three or so years ago, we are all quite encouraged by what we have seen to date. Earlier this month the operator of Shenandoah announced the successful completion of the ramp-up of the four phase one development wells to their targeted rate of 100 kbd, within the first seventy-five days after initial start-up. At the end of September, the operator of Salamanca announced the initial production from the first of three pre-drilled wells with plans to relatively quickly ramp-up production from these three wells to approximately 40 kbd. A fourth well is planned to be drilled and completed in the second quarter of 2026, at which point Salamanca production levels are anticipated to approach the original design capacity of 50 kbd.

These two new developments represent a significant step change for the future financial performance of our offshore pipeline transportation segment. Longer term, in addition to the decades of production expected from these fields, we are well positioned to benefit from a growing inventory of future opportunities around these production facilities as well as around the remaining excess capacity available on our now expanded pipeline infrastructure. Combined with minimal future growth capital requirements and steady performance from our legacy businesses, these new developments will serve as the cornerstone of our ability to generate increasing levels of free cash flow in future quarters and years.

We remain firmly committed to creating long-term value for all our stakeholders. As our financial flexibility continues to strengthen and expand, we intend to take a measured and deliberate approach to capital allocation. This approach will emphasize reducing debt in absolute terms, opportunistically redeeming our high-cost corporate preferred securities, and thoughtfully evaluating increases in our quarterly distributions to common unitholders. We will continue to exercise patience, discipline and balance in our decision-making as we begin returning capital to all stakeholders, ensuring that we maintain sufficient financial flexibility, as well as liquidity, to evaluate any accretive incremental growth opportunities should they opportunistically emerge.

With that, I will briefly discuss our individual business segments in more detail.

During the quarter, our offshore pipeline transportation segment again saw sequential improvement, driven in large part by steady volumes across our system, ramping volumes from our two new developments and a hurricane season where we saw no downtime during the quarter as a result of zero weather events in the central Gulf of America that negatively impacted the production from our pipeline customers. The producer mechanical issues that have negatively affected our throughputs over the last 12-18 months are largely behind us. While one high margin field continues to have some lingering challenges, we are confident the operator is actively working to restore those volumes, in one form or another, as quickly as possible.

As we have highlighted in recent quarters, approximately 50% of active deepwater drilling rigs continue to operate on leases that are either contractually dedicated or geographically well-suited for future connections to our offshore infrastructure which has existing capacity. Producers in the Gulf of America continue to prioritize deepwater development and long-term planning over short-term fluctuations in commodity prices. A large percentage of existing producers have plans to focus on optimizing production from existing assets or around existing production platforms via subsea tiebacks and development drilling prospects while pursuing a strong pipeline of exploratory prospects. We remain in active commercial discussions to integrate several of these new opportunities into our offshore infrastructure in the coming years to the extent they are ultimately sanctioned by the respective producers. Given the long-term outlook of these projects and increasingly competitive break-even costs, we do not anticipate that the current commodity price environment or additional near-term macroeconomic challenges will significantly alter deepwater activity in the Gulf of America in the foreseeable future.

During the third quarter, our marine transportation segment performed somewhat below our initial expectations. In response to compressed heavy-to-light differentials, a number of Gulf Coast refiners maximized runs of light sweet crude oil in July and early August, which temporarily reduced the volume of intermediate black oil available for transport, which is the primary focus for our inland, or brown-water, fleet. Encouragingly, by later in August and early September we began to see Gulf Coast refiners return to processing heavier crude, including the resumption of imports from Venezuela, at the same time typical refinery turnarounds begin to shift from making gasoline to making diesel and heating oil. Taken together, September’s financial performance was much better than July and August for our brown-water fleet and such momentum has carried forward into October.

Additionally, conditions in the coastal, or blue-water, market were somewhat unsettled during the first two months of the third quarter. Vessels migrating from a declining West Coast market into the Gulf Coast and Mid-Atlantic trade lanes placed temporary pressure on both utilization and day rates. To mitigate any uncertainty in the fourth quarter, I can report that we have 8 of our 9 blue-water vessels contracted through the end of the year, with several of these contracts extending well into 2026. The American Phoenix remains under contract until early 2027, and based on current market conditions for similar assets, she can be expected to re-contract at yet another record day rate since we have owned her.

While our marine transportation segment encountered some transitory challenges during the quarter, we believe these headwinds are now largely behind us. With fundamentals improving across both inland and blue-water markets, the segment is well positioned for a fourth quarter consistent with those reported earlier this year. Longer term, with strong utilization levels and minimal net additions of Jones Act-qualified tonnage, we believe the marine transportation segment can provide reasonably stable if not growing financial performance over the coming years.

Our onshore transportation and services segment delivered results in line with our expectations during the quarter. We began to experience higher throughput volumes across both our Texas and Raceland onshore terminals and pipelines. We anticipate this positive trend will continue as incremental volumes from Shenandoah and Salamanca access our onshore systems for further distribution to the refineries we can directly and indirectly access. Our legacy sulfur services business also performed largely in line with our expectations.

As we approach the final two months of the year, I would like to briefly update everyone on our outlook for the remainder of 2025. Given the extended producer mechanical issues experienced in the first half of the year, the timing delays in receiving first oil from both Shenandoah and Salamanca, and some temporary challenges in our marine transportation segment, we expect full-year 2025 Adjusted EBITDA to be slightly below the low end of our previously communicated guidance range of $545 to $575 million⁽¹⁾. Regardless, it is important to focus on the fact that we have hit that inflection point that we have been talking about for the last several years. We, in fact, generated excess cash in the third quarter from which we were able to reduce outstanding borrowings under our senior secured revolving credit facility, and we fully expect to continue to do so in the fourth quarter.

Looking forward, the combination of growing total Segment Margin and lower absolute debt should produce a clear trajectory of significant and rapid improvement in our leverage ratio throughout 2026. Rather than focusing on what could have been this year, our attention is squarely focused on the future. We are well positioned to generate higher levels of Adjusted EBITDA and free cash flow in 2026 and beyond, giving us the financial flexibility to deliver meaningful long-term value for all our stakeholders.

The management team and board of directors remain steadfast in our commitment to building long-term value for everyone in the capital structure, and we believe the decisions we are making reflect this commitment and our confidence in Genesis moving forward. I would once again like to recognize our entire workforce for their efforts and unwavering commitment to safe and responsible operations. I’m proud to have the opportunity to work alongside each and every one of you.”

(1) Adjusted EBITDA is a non-GAAP financial measure. We are unable to provide a reconciliation of the forward-looking Adjusted EBITDA projections contained in this press release to its most directly comparable GAAP financial measure because the information necessary for quantitative reconciliations of Adjusted EBITDA to its most directly comparable GAAP financial measure is not available to us without unreasonable efforts. The probable significance of providing this forward-looking Adjusted EBITDA measure without a directly comparable GAAP financial measure is that such non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.

Financial Results

Segment Margin

In the first quarter of 2025, we reorganized our operating segments as a result of the way our chief operating decision maker (our Chief Executive Officer) evaluates the performance of operations, develops strategy and allocates resources, including capital. Our sulfur services business, formerly reported under our soda and sulfur services reporting segment with our trona and trona-based exploring, mining, processing, producing, marketing, logistics and selling business based in Wyoming (the “Alkali Business”), is now reported under our onshore transportation and services reporting segment along with our previously reported onshore facilities and transportation segment. As a result of this change, we now manage our businesses through the following three divisions that constitute our reportable segments:

Offshore pipeline transportation, which includes the transportation and processing of crude oil and natural gas in the Gulf of America;

Marine transportation, which provides waterborne transportation of petroleum products (primarily fuel oil, asphalt and other heavy refined products) and crude oil throughout North America; and

Onshore transportation and services, which includes terminaling, blending, storing, marketing, and transporting crude oil and petroleum products, as well as the processing of high sulfur (or “sour”) gas streams for refineries to remove the sulfur, and selling the related by-product, sodium hydrosulfide (or “NaHS,” commonly pronounced “nash”).

Variances between the third quarter of 2025 (the “2025 Quarter”) and the third quarter of 2024 (the “2024 Quarter”) in these reportable segments are explained below.

Segment Margin results for the 2025 Quarter and 2024 Quarter were as follows:

	Three Months Ended September 30,
		2025		2024
	(in thousands)
Offshore pipeline transportation	$	101,343	$	72,149
Marine transportation		25,570		31,068
Onshore transportation and services		19,663		18,762
Total Segment Margin	$	146,576	$	121,979

Offshore pipeline transportation Segment Margin for the 2025 Quarter increased $29.2 million, or 40%, from the 2024 Quarter primarily due to: (i) the contractual minimum volume commitments (“MVC’s”) on our 100% owned SYNC Pipeline and 64% owned CHOPS Pipeline associated with the deepwater Shenandoah development that began in June 2025 and contributed to our reported Segment Margin; (ii) an increase to other MVC’s on our 64% owned CHOPS Pipeline during the 2025 Quarter, including those related to the Warrior and Winterfell projects; and (iii) an increase in volumes in the 2025 Quarter as a result of the remediation of certain wells that previously encountered sub-sea operational and technical issues during the 2024 Quarter. Production volumes from the Shenandoah floating production system (“FPS”) are life-of-lease dedicated to our 100% owned SYNC Pipeline and further downstream to our 64% owned CHOPS Pipeline. The Shenandoah FPS achieved first oil production in late July 2025, but we were able to recognize the contractual MVC’s for the entire 2025 Quarter in Segment Margin. Activity in and around our Gulf of America asset base continues to be robust, including incremental in-field drilling at existing fields that tie into our infrastructure, and first oil from the Salamanca development, which occurred near the end of the 2025 Quarter. While contribution from the Salamanca development was minimal to our Segment Margin in the 2025 Quarter, we expect higher contribution in future periods as the volumes from the Salamanca development are life-of-lease dedicated to our 100% owned SEKCO lateral pipeline and further downstream to our 64% owned Poseidon Pipeline.

Marine transportation Segment Margin for the 2025 Quarter decreased $5.5 million, or 18%, from the 2024 Quarter. We experienced slightly lower utilization rates during the 2025 Quarter in our inland business primarily due to a decline in Midwest refinery demand for black oil equipment as a result of changing crude slates to lighter oil. In addition, we experienced a slight decline in utilization rates during the 2025 Quarter in our offshore business as certain third-party vessels were relocated to the East and Gulf coasts from the West Coast markets near the beginning of the 2025 Quarter, which caused disruption in the spot market. This decrease in Segment Margin was partially offset by fewer dry-docking days in our offshore fleet during the 2025 Quarter compared to the 2024 Quarter. While we did see some transitory market challenges in the period, we exited the 2025 Quarter with an uptick in demand for our inland fleet as we began to see a decrease in the lighter crude slates. In addition, we were able to secure term contracts on a majority of our offshore fleet, limiting any potential exposure to the currently volatile spot market.

Onshore transportation and services Segment Margin for the 2025 Quarter increased $0.9 million, or 5%, from the 2024 Quarter primarily due to an increase in rail unload volumes at our Scenic Station facility and an overall increase in volumes on our onshore crude oil pipeline systems, principally driven by an increase in volumes on our Texas pipeline system, which is a key destination point for various grades of crude oil produced in the Gulf of America including those transported on our 64% owned CHOPS Pipeline. This increase was partially offset by a decrease in Segment Margin from our crude oil marketing business and lower NaHS and caustic soda sales volumes.

Other Components of Net Income (Loss)

We reported Net Income from Continuing Operations of $22.8 million in the 2025 Quarter compared to Net Loss from Continuing Operations of $4.6 million in the 2024 Quarter.

Net Income from Continuing Operations in the 2025 Quarter was impacted by an increase in operating income from our operating segments, primarily from our offshore pipeline transportation operating segment, as discussed above. This increase in operating income was partially offset by an increase in depreciation and amortization of $1.5 million during the 2025 Quarter.

We reported Net Loss from Discontinued Operations, net of tax of $4.7 million during the 2024 Quarter associated with the Alkali Business that was sold on February 28, 2025.

Earnings Conference Call

We will broadcast our Earnings Conference Call on Thursday, October 30, 2025, at 9:00 a.m. Central time (10:00 a.m. Eastern time). This call can be accessed at www.genesisenergy.com. Choose the Investor Relations button. For those unable to attend the live broadcast, a replay will be available beginning approximately one hour after the event and remain available on our website for 30 days. There is no charge to access the event.

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, marine transportation and onshore transportation and services. Genesis’ operations are primarily located in the Gulf of America and in the Gulf Coast region of the United States.

GENESIS ENERGY, L.P. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED

(in thousands, except unit amounts)
	Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
REVENUES	$	414,001		$	397,291		$	1,189,660		$	1,261,917

COSTS AND EXPENSES:
Costs of sales and operating costs		263,054			278,345			781,563			901,580
General and administrative		15,288			14,794			70,674			47,793
Depreciation and amortization		57,068			55,575			169,144			156,133
OPERATING INCOME		78,591			48,577			168,279			156,411
Equity in earnings of equity investees		10,845			11,634			35,667			40,288
Interest expense, net		(66,407	)		(65,662	)		(197,199	)		(192,535	)
Other expense		—			—			(9,779	)		(1,429	)
Income (loss) from continuing operations before income taxes		23,029			(5,451	)		(3,032	)		2,735
Income tax benefit (expense)		(253	)		879			(742	)		81
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		22,776			(4,572	)		(3,774	)		2,816
Income (loss) from discontinued operations, net of tax		—			(4,715	)		8,448			5,466
Loss from disposal of discontinued operations		—			—			(432,193	)		—
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX		—			(4,715	)		(423,745	)		5,466
NET INCOME (LOSS)		22,776			(9,287	)		(427,519	)		8,282
Net income attributable to noncontrolling interests		(13,569	)		(7,890	)		(32,755	)		(22,850	)
NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	9,207		$	(17,177	)	$	(460,274	)	$	(14,568	)
Less: Accumulated distributions and returns attributable to Class A Convertible Preferred Units		(14,868	)		(21,894	)		(58,138	)		(65,682	)
NET LOSS ATTRIBUTABLE TO COMMON UNITHOLDERS	$	(5,661	)	$	(39,071	)	$	(518,412	)	$	(80,250	)
NET INCOME (LOSS) PER COMMON UNIT:
Net loss per common unit from continuing operations – Basic and Diluted	$	(0.05	)	$	(0.28	)	$	(0.77	)	$	(0.70	)
Net income (loss) per common unit from discontinued operations – Basic and Diluted		—			(0.04	)		(3.46	)		0.04
Net loss per common unit – Basic and Diluted	$	(0.05	)	$	(0.32	)	$	(4.23	)	$	(0.66	)
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS:
Basic and Diluted		122,464,318			122,464,318			122,464,318			122,464,318

GENESIS ENERGY, L.P. OPERATING DATA – UNAUDITED


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Offshore Pipeline Transportation Segment
Crude oil pipelines (average barrels/day unless otherwise noted):
CHOPS⁽¹⁾	360,925		304,198		332,987		299,628
Poseidon⁽¹⁾	251,788		249,210		248,326		273,704
Odyssey⁽¹⁾	63,583		69,560		66,209		65,837
GOPL	1,395		1,583		1,486		1,801
Offshore crude oil pipelines total	677,691		624,551		649,008		640,970

Natural gas transportation volumes (MMBtus/day)⁽¹⁾	425,801		393,240		410,511		385,038

Marine Transportation Segment
Inland Barge Utilization Percentage⁽²⁾	91.2	%	99.4	%	94.3	%	99.5	%
Offshore Barge Utilization Percentage⁽²⁾	89.7	%	97.4	%	94.3	%	97.1	%

Onshore Transportation and Services Segment
Crude oil pipelines (average barrels/day):
Texas⁽³⁾	88,989		57,726		83,279		69,149
Jay	7,595		4,295		5,332		5,026
Mississippi	1,093		2,194		1,113		2,597
Louisiana⁽⁴⁾	60,551		60,255		49,050		63,084
Onshore crude oil pipelines total	158,228		124,470		138,774		139,856

Crude oil product sales (average barrels/day)	18,327		18,978		17,881		21,364
Rail unload volumes (average barrels/day)	25,695		17,757		23,741		12,954

NaHS volumes (Dry short tons “DST”)	20,620		23,398		69,749		82,091
NaOH (caustic soda) volumes (DST sold)	9,598		10,014		26,821		30,965

(1)	As of September 30, 2025 and 2024, we owned 64% of CHOPS, 64% of Poseidon and 29% of Odyssey, as well as equity interests in various other entities. Volumes are presented above on a 100% basis for all periods.
(2)	Utilization rates are based on a 365-day year, as adjusted for planned downtime and dry-docking.
(3)	Our Texas pipeline and infrastructure is a destination point for many pipeline systems in the Gulf of America, including the CHOPS Pipeline.
(4)	Total daily volumes for the three months ended September 30, 2025 and September 30, 2024 include 23,532 and 22,959 Bbls/day, respectively, of intermediate refined petroleum products and 36,414 and 37,296 Bbls/day, respectively, of crude oil associated with our Port of Baton Rouge Terminal pipelines. Total daily volumes for the nine months ended September 30, 2025 and September 30, 2024 include 19,533 and 24,159 Bbls/day, respectively, of intermediate refined petroleum products and 29,313 and 38,467 Bbls/day, respectively, of crude oil associated with our Port of Baton Rouge Terminal pipelines.