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

Financial Performance:

• Net Income Attributable to Genesis Energy, L.P. was $2.4 million for the third quarter of 2026, a decrease from $9.2 million in the same period in 2025.
• Cash Flows from Operating Activities were $78.4 million for the third quarter of 2026, compared to $70.3 million in the third quarter of 2025.
• Total Segment Margin was $147.2 million for the third quarter of 2026, compared to $146.6 million in the third quarter of 2025.
• Adjusted EBITDA was $130.5 million for the third quarter of 2026, compared to $132.0 million in the third quarter of 2025.
• Adjusted Consolidated EBITDA for the trailing twelve months ended September 30, 2026, was $607.5 million.
• Available Cash before Reserves to common unitholders was $38.6 million for the third quarter of 2026, providing 1.58X coverage for the quarterly distribution of $0.20 per common unit.
• Revenues were $449.3 million for the three months ended September 30, 2026, compared to $414.0 million in the same period in 2025.
• Operating Income was $69.4 million for the three months ended September 30, 2026, compared to $78.6 million in the same period in 2025.
• Net Income Attributable to Common Unitholders was a loss of $6.3 million for the three months ended September 30, 2026, compared to a loss of $5.7 million in the same period in 2025.
• Net Income Attributable to Common Unitholders was $18.9 million for the nine months ended September 30, 2026, compared to a loss of $518.4 million in the same period in 2025.
• Depreciation and amortization expense increased by $3.9 million to $61.0 million in the third quarter of 2026 compared to the prior year quarter.
• General and administrative expense increased by $3.1 million to $18.3 million in the third quarter of 2026 compared to the prior year quarter.

Guidance and Future Outlook:

• Lower than anticipated production from specific deepwater facilities is expected to continue into the fourth quarter and early 2027 until four new high-impact wells are completed.
• Two new wells from the Monument field are expected to be completed and flow through the Shenandoah facility by the end of the first quarter of 2027.
• A fifth producing well at the Shenandoah field is expected to be drilled and completed by the end of 2027.
• Two rigs are currently drilling wells to be tied into the Salamanca facility.
• The company expects to be near or possibly below the low end of its original guidance for Adjusted EBITDA for the full year 2026 due to service disruptions from Hurricane Isaias, maintenance on a gas export pipeline, and lower anticipated volumes.
• Management anticipates that dislocations caused by the Iranian situation and the resumption of significant imports from Venezuela could take years to fully return to historic norms, potentially benefiting the Onshore Transportation and Services segment in 2027 and beyond.
• No major dry-dockings are expected for the Marine Transportation segment until 2027.
• The company expects to drive future cash savings by rightsizing and optimizing its capital structure.

Business Segments and Product Lines:

• Offshore Pipeline Transportation: Segment Margin was $97.8 million for the third quarter of 2026, a decrease of $3.5 million (4%) from the prior year quarter. Volumes were below the minimum volume commitment (MVC) due to operational challenges at the Shenandoah FPU and producer downtime at legacy fields. Salamanca FPU contributed a full quarter of production volumes.
• Marine Transportation: Segment Margin was $28.7 million for the third quarter of 2026, an increase of $3.1 million (12%) from the prior year quarter. Inland and offshore barge utilization increased, and day rates in the inland barge business recovered. The M/T American Phoenix had a higher contractual rate. The segment experienced 100% utilization with robust spot rates.
• Onshore Transportation and Services: Segment Margin was $20.7 million for the third quarter of 2026, an increase of $1.1 million (5%) from the prior year quarter. Increases were driven by higher volumes on the Texas pipeline system and increased NaHS sales prices and volumes in the sulfur services business.
• Crude Oil Pipeline Volumes: Offshore crude oil pipelines averaged 671,007 barrels per day in Q3 2026 compared to 677,691 barrels per day in Q3 2025. Onshore crude oil pipelines averaged 214,375 barrels per day in Q3 2026 compared to 158,228 barrels per day in Q3 2025.
• Natural Gas Volumes: Natural gas transportation volumes averaged 289,644 MMBtus/day in Q3 2026 compared to 425,801 MMBtus/day in Q3 2025.
• Utilization Rates: Inland barge utilization was 97.9% in Q3 2026 (vs. 91.2% in Q3 2025), and offshore barge utilization was 96.5% in Q3 2026 (vs. 89.7% in Q3 2025).

Market and Competitive Landscape:

• Nine of the sixteen deepwater drilling units currently active in the Gulf of America are contractually dedicated to flow through Genesis' existing facilities.
• The primary constraint on production growth and pipeline throughput is the number of rigs capable of working in the deepwater Gulf lease area.
• Two new rigs are expected to enter service over the next several years.
• The marine transportation market is characterized by tight supply and demand, with no significant new tonnage expected on the horizon to affect the market.
• The basin is described as "world class" with significant known and to-be-discovered oil in place.

Risks and Challenges:

• Weather-related disruptions, including Hurricane Isaias which caused approximately four days of service disruptions in the Offshore Pipeline Transportation segment in early October.
• Maintenance activities on a gas export pipeline caused a major legacy production facility to be partially curtailed for a month.
• Operational challenges at the Shenandoah FPU and unplanned curtailments at legacy connected fields.
• Producer underperformance at key fields attached to the pipeline infrastructure.
• Geopolitical tensions, including the Iranian situation and broader conflicts in the Middle East and Eastern Europe.
• Potential impacts from inflation, increased tariffs, and fluctuations in commodity prices.
• The risk that actual results may differ materially from forward-looking statements due to uncertainties such as economic recessions, natural disasters, and disease spread.

Management Commentary and Tone:

• CEO Grant Sims stated that third quarter results came in "modestly ahead of our internal expectations."
• Management expressed pleasure with the quarter and encouragement regarding activity levels around their "irreplaceable midstream infrastructure."
• Management described 2026 as a "transformational year" for the company.
• The tone remains steadfast in the commitment to building long-term value for all capital structure participants.
• Management highlighted the ability to retire roughly 40% of the remaining most expensive paper in the capital structure and refinance the nearest senior note maturity to 2029.

Other Key Points:

• The board declared a quarterly distribution of $0.20 per common unit, unchanged from the previous quarter but an increase of approximately 21% compared to the third quarter of 2025.
• Cash distributions on preferred units were $0.9473 per unit, totaling approximately $8.8 million.
• The company ended the quarter with no borrowings outstanding under its $900 million senior secured credit facility.
• Unrestricted cash on hand was approximately $41.5 million.
• The bank-calculated leverage ratio was 5.03X.
• The company repurchased 250,000 common units during the year.
• A gain on the sale of assets of $17.4 million was recognized in the nine months ended September 30, 2026, associated with the divestiture of non-core natural gas pipeline and platform assets.
• Accounts receivable securitization credit facility borrowings were $99.5 million as of September 30, 2026.
• Senior unsecured notes, net of debt issuance costs and discount, were $3.1 billion as of September 30, 2026.
• Class A Convertible Preferred Units mezzanine capital decreased to $325.1 million from $552.5 million as of December 31, 2025.
• Total assets were $5.2 billion as of September 30, 2026, compared to $4.9 billion as of December 31, 2025.