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Genesis Energy, L.P. Reports First Quarter 2026 Results

GEL
  • Genesis Energy reported Net Income of $6.8 million for Q1 2026, a significant turnaround from the $469.1 million Net Loss in Q1 2025.
  • Cash flows from operating activities reached $81.7 million in Q1 2026 compared to $24.8 million in the prior year period.
  • The company declared a preferred unit distribution of $0.9473 per unit, totaling approximately $13.6 million.
  • Available Cash before Reserves for common unitholders was $43.8 million, providing 1.99X coverage for the $0.18 quarterly common distribution.
  • Total Segment Margin for Q1 2026 was $156.4 million, while Adjusted EBITDA was $140.9 million.
  • Adjusted Consolidated EBITDA for the trailing twelve months ended March 31, 2026, was $587.0 million with a bank leverage ratio of 5.38X.
  • Offshore pipeline transportation Segment Margin increased 40% year-over-year to $107.1 million, driven by new volumes from the Shenandoah FPU and Salamanca FPU.
  • Marine transportation Segment Margin decreased 7% to $27.9 million due to lower day rates in the inland barge business and planned dry-dockings of offshore vessels.
  • Onshore transportation and services Segment Margin rose 45% to $21.4 million, supported by increased crude volumes on the Texas pipeline system.
  • Legacy sulfur services faced operational challenges at a host refinery, resulting in lower NaHS production volumes during the quarter.
  • Management anticipates the Shenandoah FPU will contribute $12 million to $15 million less to Segment Margin in 2026 than originally guided due to lower initial production rates.
  • The company redeemed $679 million of high-cost 7.75% notes using proceeds from a new $750 million issuance of 6.75% senior unsecured notes due 2034.
  • Genesis repurchased an additional $110 million of Series A corporate preferred securities, reducing the outstanding face value to approximately $394 million.
  • The senior secured revolving credit facility was amended to increase borrowing capacity to $900 million and extend maturity to March 2031.
  • These debt refinancing and buyback activities are expected to reduce annual financing costs by approximately $12 million.
  • CEO Grant Sims stated that while Q1 results were slightly below internal expectations, the full-year 2026 Adjusted EBITDA guidance remains on track at or near the midpoint of the previously discussed range.
  • The Earnings Conference Call is scheduled for May 7, 2026, at 9:00 a.m. Central time.