Nov 5, 2026, 7:06 AM ETEnergy

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

GELGENESIS ENERGY LP

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 of 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 was $607.5 million for the trailing twelve months ended September 30, 2026.
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.
Cash distributions on preferred units totaled approximately $8.8 million for the quarter.
Revenues for the three months ended September 30, 2026, were $449.3 million, compared to $414.0 million in the same period of 2025.
Operating Income for the three months ended September 30, 2026, was $69.4 million, compared to $78.6 million in the same period of 2025.

Lower than anticipated production from specific deepwater facilities is expected to continue into the fourth quarter of 2026 and early 2027, pending the completion of four new high-impact wells.
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 lower anticipated volumes, Hurricane Isaias disruptions, and maintenance activities.
Management anticipates that the underlying fundamentals and cash flow generating capabilities of the businesses remain strong despite the temporary volume reductions.
The company expects to continue retiring highest-cost capital, reducing debt in absolute terms, and growing distributions to common unitholders over time.

Offshore Pipeline Transportation: Segment Margin decreased $3.5 million (4%) year-over-year to $97.8 million, primarily due to producer downtime at legacy fields and underperformance at key fields including Shenandoah, where volumes were below the minimum volume commitment (MVC). Salamanca FPU contributed a full quarter of production volumes.
Marine Transportation: Segment Margin increased $3.1 million (12%) year-over-year to $28.7 million, driven by increased fleet utilization in inland and offshore barge businesses and higher day rates in the inland barge business. The M/T American Phoenix had a higher contractual rate in 2026 compared to 2025.
Onshore Transportation and Services: Segment Margin increased $1.1 million (5%) year-over-year to $20.7 million, driven by increased volumes on the Texas pipeline system and higher index-based NaHS sales prices and volumes in the sulfur services business.
A significant dry-docking of a large offshore unit, which began in the second quarter, unexpectedly extended into the third quarter but the unit is now back in service.
No major dry-dockings are expected until 2027.
Nine of the sixteen deepwater drilling units active in the Gulf of America are contractually dedicated to flow through Genesis facilities.
Two new drilling rigs are expected to enter service over the next several years.

The primary constraint on production growth and pipeline throughput in the Gulf of America is the number of rigs capable of working in the deepwater lease area, rather than infrastructure capacity.
Spot rates for all classes of marine vessels are described as extremely robust, with expectations for term contracts to follow higher rates.
Dislocations caused by the Iranian situation and the resumption of significant imports from Venezuela are expected to create opportunities for the Onshore Transportation and Services segment that could persist into 2027 and beyond.
The company views the Gulf of America basin as world-class with significant known and to-be-discovered oil in place.

Weather-related producer shut-ins and disruptions, such as those from Hurricane Isaias which caused approximately four days of service disruptions in the Offshore Pipeline Transportation segment in early October.
Lower than anticipated production volumes from specific deepwater facilities and unplanned curtailments at legacy connected fields.
Operational challenges at the Shenandoah floating production unit (FPU) wells.
Maintenance activities on the gas export pipeline leaving a major legacy production facility, which caused partial curtailment for the better part of a month.
The number of available rigs in the deepwater Gulf lease area limits the pace of production growth.
Potential impacts from inflation, increased tariffs, taxes, duties, and international trade matters.
Geopolitical tensions and international military conflicts, including those in Ukraine and Iran.
Decline in commodity prices and market demand for products.

CEO Grant Sims stated that third quarter results came in "modestly ahead of our internal expectations" despite offsetting factors.
Management expressed being "pleased with the quarter" and "encouraged by the level of activity" around their infrastructure and macro fundamentals.
The tone regarding the balance sheet was positive, noting "little to report" on financing activity following significant activity in the first half of the year.
Management emphasized a commitment to building long-term value and stated they are "proud to have delivered" a transformational year.
The company noted that missing the fourth quarter or coming in at the low end of 2026 guidance has "little to do with the underlying fundamentals."

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.
There are no debt maturities until 2029.
The bank-calculated leverage ratio was 5.03X.
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.
The company retired roughly 40% of the remaining most expensive paper in its capital structure during 2026.
The company repurchased 250,000 common units in 2026.
The company refinanced its nearest senior note maturity to 2029.
During the nine months ended September 30, 2026, the company recognized a gain on the sale of assets of $17.4 million 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.
Class A Convertible Preferred Units balance was $325.1 million as of September 30, 2026, down from $552.5 million as of December 31, 2025.