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Dec 31, 2024
Genesis Energy Q4 2024 Earnings Report
Genesis Energy reported fourth quarter results, with performance generally in line with expectations.
Key Takeaways
Genesis Energy reported a net loss of $49.4 million for Q4 2024, compared to a net income of $12.0 million in the same period of 2023. The company's CEO highlighted the near completion of capital-intensive expansion projects and the expectation of turning cash flow positive in the second half of 2025. Adjusted EBITDA for the quarter was $160.6 million.
Net Loss Attributable to Genesis Energy, L.P. was $49.4 million, compared to Net Income of $12.0 million for the same period in 2023.
Cash Flows from Operating Activities were $74.0 million, compared to $124.8 million for the same period in 2023.
Available Cash before Reserves to common unitholders was $43.3 million, providing 2.14X coverage for the quarterly distribution.
Adjusted EBITDA was $160.6 million.
Genesis Energy
Genesis Energy
Genesis Energy Revenue by Segment
Revenue by Segment
Offshore pipeline trans. Revenue
CapyFin.comMarine transportation Revenue
CapyFin.com Forward Guidance
Genesis Energy anticipates Adjusted EBITDA of around $700 million in 2025 and potentially $800 million in 2026, assuming no significant improvement in the soda ash business. The company expects to turn cash flow positive in the second half of 2025 and is committed to not pursuing any capital-intensive projects for the foreseeable future.
Positive Outlook
- Offshore pipeline transportation segment is expected to drive sequential growth.
- New contracted offshore developments, Shenandoah and Salamanca, are on schedule for first production in late Q2 2025, adding upwards of 200,000 barrels per day of incremental production handling capacity.
- Restoration of high margin volumes from wells experiencing mechanical issues expected to drive significant sequential improvement in the offshore pipeline transportation segment.
- Marine transportation segment is expected to deliver sequential growth in 2025 due to steady market fundamentals and fewer dry-dock days.
- Clear line of sight to Adjusted EBITDA growth in 2025 via contracted offshore growth and structural tailwinds in marine transportation.
Challenges Ahead
- Challenging macro conditions in the soda ash market are expected to persist through at least the first half of 2025.
- Oversupplied soda ash market and weak global demand continue to put pressure on prices, especially in export markets.
- Legacy refinery services business is expected to perform consistently with its performance in 2024.
- Several operators continue to deal with mechanical issues affecting production from major fields attached to Genesis' infrastructure.
- Soda ash business Segment Margin contribution is expected to be at or near what was generated in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income