Genesis Energy, L.P. — Second Quarter 2026 Earnings Summary

Financial Performance

• Net Income Attributable to Genesis Energy, L.P. was $42.9 million for Q2 2026, compared to a Net Loss of $0.4 million in Q2 2025.
• Cash Flows from Operating Activities were $180.7 million for Q2 2026, up from $47.0 million in Q2 2025.
• Total Segment Margin reached $169.5 million for Q2 2026, an increase from $135.9 million in Q2 2025.
• Adjusted EBITDA was $171.5 million for Q2 2026, compared to $122.9 million in Q2 2025.
• Adjusted Consolidated EBITDA for the trailing twelve months ended June 30, 2026, was $610.1 million.
• Available Cash before Reserves to common unitholders was $78.3 million for Q2 2026, providing 3.2X coverage for the quarterly distribution of $0.20 per common unit.
• Revenues for Q2 2026 were $532.0 million, compared to $377.3 million in Q2 2025.
• Operating Income for Q2 2026 was $105.4 million, compared to $67.7 million in Q2 2025.
• Net Income Attributable to Common Unitholders was $32.0 million for Q2 2026, compared to a Net Loss of $15.3 million in Q2 2025.
• Net Income Per Common Unit (Basic and Diluted) was $0.26 for Q2 2026, compared to a loss of $0.12 in Q2 2025.
• Bank leverage ratio was 5.00X as of June 30, 2026.
• Senior secured credit facility balance was reduced to zero by the end of Q2 2026.
• Cash, cash equivalents, and restricted cash increased to $44.2 million as of June 30, 2026, from $6.4 million as of December 31, 2025.

Guidance and Future Outlook

• Full-year 2026 Adjusted EBITDA is expected to come in towards the lower end of the previously discussed range.
• Potential upside to the full-year Adjusted EBITDA outlook exists if the hurricane season is calmer than conservatively budgeted.
• Potential upside also exists if well remediation work at certain offshore fields surprises to the upside from both a timing and volume perspective.
• Management anticipates clearer visibility on these factors when reporting third-quarter results in early November.
• Offshore volumes are positioned to grow meaningfully over the coming years due to new developments and legacy field base.
• Monument field first well is anticipated to be completed and turned to production by the end of 2026.
• A second well in the Monument field is expected to be completed and turned to production in Q1 2027.
• Two additional wells in the Shenandoah field are anticipated to be drilled, completed, and turned to production in 2027.
• The first of two locations in the Shenandoah South field is anticipated to be drilled and tied back in 2028.
• Shenandoah FPU capacity expansion to 140,000 barrels of oil per day is underway to accommodate new wells.
• A sub-sea pumping system for the Shenandoah field is scheduled for installation in mid-to-late 2028.
• Salamanca field production is expected to increase closer to the designed capacity of +/- 60 kbd with a fifth well coming online towards the end of 2026 or early 2027.
• Management expects to achieve an additional $50-$60 million in annual cash savings over the next several years through further balance sheet optimization.

Business Segments and Product Lines

• Offshore Pipeline Transportation: Segment Margin increased $28.0 million (32%) to $115.6 million in Q2 2026. Growth was driven by production volumes from the Shenandoah FPU (tied to SYNC and CHOPS Pipelines) and Salamanca FPU (tied to SEKCO and Poseidon Pipelines). Total produced volumes transported were slightly below expectations due to operational challenges and unplanned downtime at key fields.
• Marine Transportation: Segment Margin decreased $4.2 million (14%) to $25.6 million in Q2 2026 due to planned dry-docking days for two largest offshore barges and a slight decrease in inland barge day rates. All four scheduled blue water dry dockings for the year are complete, and the segment is returning to full capacity.
• Onshore Transportation and Services: Segment Margin increased $9.8 million (53%) to $28.2 million in Q2 2026. Growth was driven by increased volumes on Texas and Raceland terminals, crude oil marketing activity, and strong sulfur services demand.
• Sulfur Services: Legacy sulfur services business performed ahead of expectations with strong demand from pulp and paper customers and optimized NaHS production/delivery.
• American Phoenix: Demand for the vessel remains constructive, with multiple inbound inquiries; management expects to successfully re-contract the vessel above current day rates when the current contract expires in mid-2027.

Market and Competitive Landscape

• Offshore production volumes are influenced by producer customer activity levels, planned turnarounds, well interventions, and new well timing.
• Global macroeconomic conditions and the conflict in Iran created market dislocations that allowed the company to capture incremental, non-recurring margin opportunities in the Onshore segment.
• Inland barge day rates have recovered at a slower pace than anticipated compared to 2025 levels.
• Harbour Energy plans to add a second rig to their Gulf of America program later in the year to accelerate activity and support plans to double production out of the Gulf over the next couple of years.
• Management remains encouraged by activity levels in the central Gulf of America, including legacy fields and newer fields in early ramp stages.

Risks and Challenges

• Offshore production volumes are subject to fluctuations beyond the company's control, including operational challenges and unplanned downtime at producer fields.
• Multiple instances of producer challenges at high-margin fields during the same reporting period can have a notable financial impact.
• Inland barge day rates may not reach 2025 levels if Midwest refinery demand for black oil equipment remains weak.
• The performance of existing offshore production versus revised producer forecasts, timing of new offshore wells, and the success of mechanical intervention/remediation of high-impact wells are key monitoring items for the back half of the year.
• Forward-looking statements are subject to risks including weather, political, economic, and market conditions, commodity price declines, inflation, tariffs, disease spread, natural disasters, and international military conflicts.

Management Commentary and Tone

• CEO Grant Sims stated results were "broadly in line with, if not slightly ahead of, our internal expectations."
• Management emphasized substantial progress in strengthening and simplifying the balance sheet and lowering the cost of capital.
• Management expressed confidence that producer customer issues are transitory and result in timing differences rather than long-term negative implications.
• Management remains "firmly intact" on the long-term story, citing increasing visibility to multi-year volume ramps, rising free cash flow, debt reduction, and the ultimate extinguishment of remaining Series A preferred securities.
• Management reiterated commitment to building long-term value for all stakeholders in the capital structure.

Other Key Points

• In early June, the company sold non-core, underutilized offshore natural gas assets for $95 million.
• In late June, the company established a $99.5 million non-recourse accounts receivable securitization facility priced at SOFR plus 1.375%.
• Net proceeds from the asset sale and securitization were used to repurchase $83 million of 11.24% Series A corporate preferred securities at 102% of par.
• The company opportunistically purchased 250,000 common units in the open market at a weighted average price of $14.57 per unit.
• Remaining cash raised was used to pay down the senior secured credit facility to zero.
• The company estimates a reduction in the annual cost of capital of approximately $25 million per year compared to prior periods.
• The quarterly distribution for common units was increased to $0.20, representing an 11% increase from Q1 2026, a 21% increase from Q2 2025, and a 33% increase from Q2 2024.
• A gain on sale of assets of $17.4 million was recognized in Q2 2026 associated with the divestiture of non-core natural gas pipeline and platform assets.
• Equity in earnings of equity investees increased by $6.0 million in Q2 2026, primarily due to increased volumes and revenue from Poseidon.
• The 2025 quarter included an $8.9 million loss primarily due to the premium associated with the redemption of 8.000% senior unsecured notes.