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Jun 30, 2024
Genesis Energy Q2 2024 Earnings Report
Announced second quarter 2024 results and a distribution increase attributable to the third quarter 2024, and discussed future capital allocation priorities.
Key Takeaways
Genesis Energy reported a net loss of $8.7 million for the second quarter of 2024, compared to a net income of $49.3 million for the same period in 2023. The company is adjusting its full year guidance for Adjusted EBITDA to a range of $625 - $650 million.
Net Loss Attributable to Genesis Energy, L.P. of $8.7 million for the second quarter of 2024 compared to Net Income Attributable to Genesis Energy, L.P. of $49.3 million for the same period in 2023.
Cash Flows from Operating Activities of $104.7 million for the second quarter of 2024 compared to $157.7 million for the same period in 2023.
Available Cash before Reserves to common unitholders of $37.6 million for the second quarter of 2024, which provided 2.05X coverage for the quarterly distribution of $0.15 per common unit attributable to the second quarter.
Total Segment Margin of $168.3 million for the second quarter of 2024.
Genesis Energy
Genesis Energy
Genesis Energy Revenue by Segment
Revenue by Segment
Offshore pipeline trans. Revenue
CapyFin.comMarine transportation Revenue
CapyFin.comOnshore trans. & svc. Revenue
CapyFin.com Forward Guidance
Genesis Energy is adjusting its full year guidance for Adjusted EBITDA to a range of $625 - $650 million.
Positive Outlook
- Shenandoah and Salamanca developments are expected to be on-line in the second quarter of 2025.
- The incremental tons produced from the Granger expansion are likely some of the cheapest and lowest cost new supply in the world.
- Market fundamentals remain very favorable with steady and robust demand for all classes of our vessels exceeding practical net supply of marine tonnage.
- Genesis has extended the maturity profile of our capital structure.
- The partnership has more than adequate financial flexibility and ample liquidity to execute on our plan to further simplify our capital structure and return capital to our stakeholders.
Challenges Ahead
- Two of the major deepwater producing facilities we serve developed technical issues.
- Two contracted subsea tiebacks that were scheduled for first production in the second quarter saw slight delays relative to our initial expectations.
- The unforeseen delays with the delivery of the Shenandoah floating production system to its final location in the Gulf of Mexico will cause a small amount of the cash spend to slip into the first part of 2025.
- The second quarter was impacted by a decline in export pricing as compared to the 2023 Quarter as global supply has continued to outpace demand in most markets.
- The 2024 Quarter was negatively impacted by temporary operational issues at our Westvaco facility that led to lower production volumes and reduced operating efficiencies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income