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

July 31, 2025

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

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

Net Loss Attributable to Genesis Energy, L.P. of $0.4 million for the second quarter of 2025 compared to Net Loss Attributable to Genesis Energy, L.P. of $8.7 million for the same period in 2024.
Cash Flows from Operating Activities of $47.0 million for the second quarter of 2025 compared to $104.7 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 $32.2 million for the second quarter of 2025, which provided 1.59X coverage for the quarterly distribution of $0.165 per common unit attributable to the second quarter.
Total Segment Margin of $135.9 million for the second quarter of 2025.
Adjusted EBITDA of $122.9 million for the second quarter of 2025.
Adjusted Consolidated EBITDA of $555.4 million for the trailing twelve months ended June 30, 2025 and a bank leverage ratio of 5.52X, both calculated in accordance with our senior secured credit agreement and discussed further in this release.

Grant Sims, CEO of Genesis Energy, said, “The second quarter was generally in-line with our expectations, driven primarily by sequential improvement in our offshore pipeline transportation segment as several of the previously shut-in wells returned to service in addition to collecting one month’s contribution from our minimum volume commitments from the Shenandoah development. More importantly, because we are in the business of actually moving oil, I am extremely happy to report on the successful commissioning and start-up of the Shenandoah production facility which delivered first oil to our new SYNC pipeline lateral and downstream through our expanded CHOPS pipeline just last week. While initial production was delayed a number of weeks due to some commissioning challenges, including persistent loop currents in the Gulf of America affecting sub-sea activities early in the quarter, the operator has successfully brought on-line the first of four previously drilled and completed wells. We anticipate the remaining wells will be brought online in the coming weeks, with production ramping steadily and likely to achieve initial anticipated peak production of 90-100 kbd. This important milestone is the culmination of over three years of hard work and dedication from our entire team, and I could not be prouder of their collective effort.

Looking ahead, Salamanca remains on track to achieve first oil by the end of the third quarter. The operator, who has been largely dependent on some of the same support equipment and vessels that are currently working on Shenandoah, has been progressing through their safety checks and pre-commissioning activities, including their sub-sea connection to our SEKCO pipeline lateral in advance of first production. Similar to Shenandoah, we expect Salamanca’s production to ramp very quickly over the subsequent few months after first production to its initial peak design of 40-50 kbd. Despite both Shenandoah and Salamanca experiencing some timing delays, these two new developments remain central to the Genesis story over the next 12 to 18 months. With the anticipated increase in our offshore pipeline transportation segment margin, the completion of our growth capital expenditures, and continued steady performance from our legacy businesses, we remain well positioned to generate increasing amounts of free cash flow in excess of the cash costs of running our businesses starting in the third quarter.

We exited the second quarter with approximately $72 million outstanding on our senior secured revolving credit facility, which included approximately $36 million of hedged inventory and was a reflection of a high working capital quarter. This included several significant cash outlays such as the full redemption of our senior unsecured notes due 2027, final growth capital associated with our offshore expansion projects, and multiple semi-annual cash interest payments on our outstanding senior unsecured notes. Importantly, we expect to use the estimated free cash flow to begin paying down the revolver balance in the third quarter, and we anticipate exiting the year with no outstanding borrowings under such facility. The combination of growing Segment Margin and a lower absolute debt balance is also expected to drive sequential improvement in our bank calculated leverage ratio over the remainder of the year and throughout 2026.

We remain steadfast in our commitment to creating long-term value for all stakeholders. As our financial flexibility and liquidity continue to improve, we intend to take an all-of-the-above approach to capital allocation. This includes the reduction of debt in absolute terms, the possible redemption of our high-cost corporate preferreds, and the potential for increased distributions to our common unitholders in future quarters. At the same time, we will remain disciplined and balanced, preserving the ability to evaluate and pursue incremental commercial opportunities that align with our long-term strategic objectives.

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

During the quarter, our offshore pipeline transportation segment saw an uplift in activity as a couple of the previously impacted offshore wells that had been down due to producer mechanical issues were brought back online and are now flowing again on our pipelines. While a couple of the high margin wells remain offline, the producers continue to have deepwater drilling rigs on location that are actively working to restore the production in conjunction with drilling new development wells that will also be tied into these existing production facilities. Notwithstanding the ramp in volumes from Shenandoah and Salamanca, the base volumes from these impacted fields as we exited the second quarter were greater than what we saw when we exited the first quarter, and we would expect to see this upward trend continue with the expectation of the remaining work being completed, by and large, by the end of the third quarter. There is no doubt these delays have been unfortunate. While the remediation efforts have lagged behind our original expectations, we believe there continues to be no lasting impact on the underlying reservoirs, and we will ultimately transport all of the oil production on our systems once all these issues are successfully addressed by the various operators.

Despite recent fluctuations in commodity prices, we continue to experience strong activity levels from our producer customers in the central Gulf of America. While the number of active onshore drilling rigs has declined in recent weeks, perhaps more rapidly than some anticipated, we have seen no change in the number of rigs actively working offshore in the deepwater. This underscores the structural resilience of deepwater development, where investment decisions are based on long-cycle planning rather than short-term price movements. Many of our producer customers remain focused on maximizing output from existing facilities while advancing a robust backlog of sub-sea tieback and development drilling opportunities. We remain actively engaged in commercial discussions to connect several of these new opportunities to our offshore infrastructure throughout the remainder of this year and into next. Given the long-term nature of these developments, and the increasingly economic break-even costs, we do not expect continued price weakness or any additional near-term macroeconomic headwinds to significantly alter deepwater activity in the Gulf of America for the foreseeable future.

Our marine transportation segment performed in line with expectations during the second quarter. Market fundamentals for our inland, or brown water, fleet remain constructive. While refinery profitability was challenged during the quarter and refinery crude slates, particularly in the Midwest, shifted, and heavy to light differentials narrowed on the Gulf Coast, market conditions continue to be supported by limited to no net additions of Jones Act-qualified tonnage. Looking ahead, we expect to see a robust refinery turnaround season in the third and fourth quarters, which should drive increased demand for our brown water equipment. In contrast, market conditions in the blue water market have softened somewhat in recent months. This shift is largely driven by an increase in available equipment along the Gulf and East Coasts, as larger operators redeploy vessels that were otherwise working in West Coast markets. The added tonnage, coupled with a slowdown in clean product demand moving to the East Coast, has kept utilization relatively stable. However, these factors have tempered our ability to continue to push day rates higher as term charters come up for renewal. Looking ahead, while market conditions remain mixed, we believe the fundamentals of our marine transportation segment are sound and should be supportive throughout the remainder of this year and in the years to come.

Our onshore transportation and services segment performed in line with expectations during the quarter. We experienced higher than anticipated volumes through both our Texas system and Raceland terminal, driven by increased refinery demand in both Texas City and South Louisiana. Beginning in the third quarter, we could see a modest increase in volumes through both our Texas City and Raceland terminals as new production from Shenandoah and Salamanca comes online and quickly ramps. Our legacy sulfur services business also performed as expected, though results were modestly impacted by an unplanned turnaround at our primary host facility in Westlake, Louisiana. This was partially offset by strong operating performance in June, driven in large part by the continued strength in pulp and paper demand.

As we look at the back half of the year, I would like to briefly touch on the financial impact of both the extended outages related to producer mechanical issues, which we have referenced for several quarters, and the unfortunate timing delays in receiving first oil from both Shenandoah and Salamanca. While these factors have been entirely outside of our control, they have nonetheless delayed the timing of when we will realize the full financial benefit of these volumes on our pipeline systems. Based on our current visibility into final remediation efforts, the expected timing of first production from both new developments and their anticipated pace of ramping production, we now reasonably expect full-year 2025 Adjusted EBITDA to be at or near the low end of our prior guidance range of $545–$575 million⁽¹⁾. More importantly, these delays are all temporary in nature and are not expected to have any lasting impact on our ability to generate increasing Adjusted EBITDA and free cash flow in 2026 and beyond.

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.”

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 second quarter of 2025 (the “2025 Quarter”) and the second quarter of 2024 (the “2024 Quarter”) in these components are explained below.

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

	Three Months Ended. June 30,
		2025		2024
	(in thousands)
Offshore pipeline transportation	$	87,594	$	86,131
Marine transportation		29,817		31,543
Onshore transportation and services		18,458		20,242
Total Segment Margin	$	135,869	$	137,916

Offshore pipeline transportation Segment Margin for the 2025 Quarter increased $1.5 million, or 2%, from the 2024 Quarter primarily due to several factors including: (i) the commencement of 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; and (ii) an increase in volumes on our CHOPS Pipeline primarily related to production from the Warrior and Winterfell projects, which produced first oil in late June 2024 and early July 2024, respectively. 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 our MVC’s that began in the 2025 Quarter in Segment Margin. We expect the Shenandoah FPS to ramp up to its design capacity over the remainder of the year as the operator brings additional wells on-line. These increases to Segment Margin in the 2025 Quarter were partially offset by: (i) an economic step-down in the rate on a certain existing life-of-lease transportation dedication; (ii) producer underperformance at several of the major fields attached to our pipeline infrastructure; and (iii) an increase in our operating costs. At the beginning of the third quarter of 2024, we reached the 10-year anniversary of a certain existing life-of-lease transportation dedication, which resulted in the contractual economic step-down of the associated transportation rate. In addition, there was an increase in producer downtime in the 2025 Quarter relative to the 2024 Quarter as a result of several wells being shut in due to certain sub-sea operational and technical challenges. The production from these wells impacted our results as they are molecules that we touch multiple times throughout our oil and natural gas pipeline infrastructure.

Marine transportation Segment Margin for the 2025 Quarter decreased $1.7 million, or 5%, from the 2024 Quarter. We experienced slightly lower utilization rates during the 2025 Quarter in our inland barge services primarily due to a slight decline in Midwest refinery demand for black oil equipment as a result of changing crude slates. This was partially offset by fewer dry-docking days in our offshore fleet during the 2025 Quarter and a higher contractual rate on our M/T American Phoenix in the 2025 Quarter as compared to the 2024 Quarter. Our offshore bluewater business began to experience pressure on day rates during the 2025 Quarter and as we entered the third quarter as certain third-party vessels were relocated to the East and Gulf coasts from the West Coast markets.

Onshore transportation and services Segment Margin for the 2025 Quarter decreased $1.8 million, or 9%, from the 2024 Quarter primarily due to lower NaHS and caustic soda sales volumes. This decrease was partially offset by 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.

Other Components of Net Income (Loss)

We reported Net Income from Continuing Operations of $10.0 million in the 2025 Quarter compared to Net Loss from Continuing Operations of $4.0 million in the 2024 Quarter.

Net Income from Continuing Operations in the 2025 Quarter was impacted by: (i) an increase in operating income from our operating segments; (ii) a decrease in interest expense, net, of $3.8 million; and (iii) a decrease in general and administrative expenses of $3.6 million relative to the 2024 Quarter. These were partially offset by an increase in depreciation and amortization of $4.7 million during the 2025 Quarter and an increase in other expense of $7.5 million primarily related to the premium associated with the redemption of our 2027 Notes in April 2025.

We reported Net Income from Discontinued Operations, net of tax of $2.6 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, July 31, 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 June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
REVENUES	$	377,348		$	430,179		$	775,659		$	864,626

COSTS AND EXPENSES:
Costs of sales and operating costs		238,984			310,934			518,509			623,235
General and administrative		14,744			18,299			55,386			32,999
Depreciation and amortization		55,905			51,167			112,076			100,558
OPERATING INCOME		67,715			49,779			89,688			107,834
Equity in earnings of equity investees		12,330			12,213			24,822			28,654
Interest expense, net		(60,754	)		(64,539	)		(130,792	)		(126,873	)
Other expense		(8,935	)		(1,429	)		(9,779	)		(1,429	)
Income (loss) from continuing operations before income taxes		10,356			(3,976	)		(26,061	)		8,186
Income tax benefit (expense)		(345	)		11			(489	)		(798	)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		10,011			(3,965	)		(26,550	)		7,388
Income from discontinued operations, net of tax		—			2,578			8,448			10,181
Loss from disposal of discontinued operations		—			—			(432,193	)		—
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX		—			2,578			(423,745	)		10,181
NET INCOME (LOSS)		10,011			(1,387	)		(450,295	)		17,569
Net income attributable to noncontrolling interests		(10,417	)		(7,357	)		(19,186	)		(14,960	)
NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	(406	)	$	(8,744	)	$	(469,481	)	$	2,609
Less: Accumulated distributions and returns attributable to Class A Convertible Preferred Units		(14,868	)		(21,894	)		(43,270	)		(43,788	)
NET LOSS ATTRIBUTABLE TO COMMON UNITHOLDERS	$	(15,274	)	$	(30,638	)	$	(512,751	)	$	(41,179	)
NET INCOME (LOSS) PER COMMON UNIT:
Net loss from continuing operations per common unit – Basic and Diluted	$	(0.12	)	$	(0.27	)	$	(0.73	)	$	(0.42	)
Net income (loss) from discontinued operations per common unit – Basic and Diluted		—			0.02			(3.46	)		0.08
Net loss per common unit – Basic and Diluted	$	(0.12	)	$	(0.25	)	$	(4.19	)	$	(0.34	)
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 June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Offshore Pipeline Transportation Segment
Crude oil pipelines (average barrels/day unless otherwise noted):
CHOPS⁽¹⁾	324,533		296,325		318,787		297,319
Poseidon⁽¹⁾	248,785		280,248		246,566		286,085
Odyssey⁽¹⁾	71,309		64,213		67,545		63,955
GOPL	1,383		1,465		1,532		1,911
Offshore crude oil pipelines total	646,010		642,251		634,430		649,270

Natural gas transportation volumes (MMBtus/day)⁽¹⁾	403,703		357,687		402,739		382,621

Marine Transportation Segment
Inland Barge Utilization Percentage⁽²⁾	98.1	%	100.0	%	95.9	%	100.0	%
Offshore Barge Utilization Percentage⁽²⁾	97.3	%	94.9	%	96.8	%	97.0	%

Onshore Transportation and Services Segment
Crude oil pipelines (average barrels/day):
Texas⁽³⁾	98,626		65,229		80,377		74,923
Jay	4,036		5,332		4,181		5,396
Mississippi	1,059		2,789		1,124		2,800
Louisiana⁽⁴⁾	48,178		56,172		43,203		64,514
Onshore crude oil pipelines total	151,899		129,522		128,885		147,633

Crude oil product sales (average barrels/day)	15,366		21,702		17,655		22,570
Rail unload volumes (average barrels/day)	24,979		19,811		22,748		10,526

NaHS volumes (Dry short tons “DST”)	23,256		29,656		49,129		58,693
NaOH (caustic soda) volumes (DST sold)	8,678		10,593		17,223		20,951

(1)		As of June 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 June 30, 2025 and June 30, 2024 include 16,403 and 19,356 Bbls/day, respectively, of intermediate refined products and 31,775 and 36,269 Bbls/day, respectively, of crude oil associated with our Port of Baton Rouge Terminal pipelines. Total daily volumes for the six months ended June 30, 2025 and June 30, 2024 include 17,500 and 24,766 Bbls/day, respectively, of intermediate refined petroleum products and 25,703 and 39,059 Bbls/day, respectively, of crude oil associated with our Port of Baton Rouge Terminal pipelines.