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Mar 31, 2024
Genesis Energy Q1 2024 Earnings Report
Reported first quarter results, with offshore pipeline transportation segment performing inline with expectations and soda ash business impacted by temporary operational issues.
Key Takeaways
Genesis Energy, L.P. reported a net income attributable to Genesis Energy, L.P. of $11.4 million for the first quarter of 2024, compared to a net loss of $1.6 million for the same period in 2023. The company's Adjusted EBITDA was $163.1 million, and Available Cash before Reserves to common unitholders was $54.0 million, providing 2.94X coverage for the quarterly distribution.
Net Income Attributable to Genesis Energy, L.P. was $11.4 million, a significant improvement from the $1.6 million net loss in the same quarter of the previous year.
Cash Flows from Operating Activities reached $125.9 million, up from $97.7 million in the first quarter of 2023.
Available Cash before Reserves to common unitholders stood at $54.0 million, providing a coverage of 2.94X for the quarterly distribution.
Total Segment Margin was reported at $181.1 million for the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Genesis Energy anticipates significant cash flow generation starting later this year and accelerating through the next, potentially reaching $250 million to $350 million or more per year after current cash obligations. The company plans to evaluate options for returning capital to stakeholders, including debt reduction, preferred unit redemption, and potential returns to common unitholders.
Positive Outlook
- Expected completion of major capital spending program.
- Anticipated step change in financial performance of offshore assets.
- Expected recovery in the soda ash business.
- Potential for significant cash flow generation after current obligations.
- Flexibility to manage debt, simplify capital structure, and return capital to unitholders.
Challenges Ahead
- Uncertainty regarding the exact timing and magnitude of cash flow improvements.
- Potential delays in the Shenandoah development affecting financial performance.
- Temporary operational issues impacting soda ash production volumes and efficiencies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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