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Jun 30, 2023
Genesis Energy Q2 2023 Earnings Report
Announced second quarter 2023 results, demonstrating resilient earnings power across diversified businesses.
Key Takeaways
Genesis Energy reported a net income of $49.3 million for the second quarter of 2023. The company's financial results were generally in line with internal expectations, driven by steady offshore pipeline transportation volumes, a return to normal operating levels for the soda ash business, and continued strong performance in the marine transportation segment. Adjusted EBITDA for the quarter was $198.0 million.
Net income attributable to Genesis Energy, L.P. was $49.3 million for the second quarter of 2023, compared to $35.3 million for the same period in 2022.
Cash flows from operating activities were $157.7 million for the second quarter of 2023, compared to $104.0 million for the same period in 2022.
Available cash before reserves to common unitholders was $96.3 million for the second quarter of 2023, providing 5.24X coverage for the quarterly distribution.
The company is adjusting full year guidance for Adjusted EBITDA range of $725 - $745 million.
Revenue by Segment
Forward Guidance
Genesis Energy is adjusting its full year guidance for Adjusted EBITDA to a range of $725 - $745 million. The company expects financial performance in 2024 to be greater than 2023, driven by a continued ramp in offshore volumes and additional volumes from the Granger expansion. In 2025, a significant step change in offshore volumes and segment margin contributions is expected as both Shenandoah and Salamanca come on-line.
Positive Outlook
- Volumes from Argos are expected to ramp towards its nameplate capacity of 140,000 barrels per day.
- Steady volumes are expected from King’s Quay and new volumes from additional in-field development wells, field extensions and sub-sea tiebacks.
- The CHOPS expansion and new SYNC lateral are expected to be completed in the second half of 2024.
- The Granger expansion project remains on schedule for first soda ash production in the next few months.
- The company expects to exit 2023 with a leverage ratio at or near its long-term target of 4.00 times.
Challenges Ahead
- Softer than previously expected soda ash prices in some export markets are anticipated.
- Slowing global industrial production and a slower than anticipated re-opening of China’s economy are impacting soda ash demand.
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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