Core Viewpoint - Graphano Energy Ltd. supports the launch of Canada's Major Projects Office (MPO), which aims to expedite approval processes for major projects, particularly in critical minerals and energy sectors, reducing timelines from five years to two [1][2]. Group 1: Company Developments - Graphano's Lac Saguay graphite project has an initial mineral resource estimate of 1,640,000 tonnes at 7.00% graphitic carbon (Cg) and an inferred resource of 1,580,000 tonnes at 7.00% Cg [3][4]. - The company plans to engage with the MPO as its projects advance and is preparing to close a non-brokered private placement financing to fund upcoming programs [5][3]. - The graphite portfolio of Graphano is positioned to enhance the North American and European supply chain, especially as the U.S. faces high tariffs on Chinese graphite imports [2][3]. Group 2: Industry Context - The MPO's initiative is timely as it aligns with the growing demand for graphite, particularly for applications in lithium batteries and energy storage technologies [8]. - With China being the largest global producer of graphite, the need for reliable North American alternatives is increasing due to new U.S. tariffs of 163% on Chinese imports [2][8].

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Master's in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]

Core Points - Graphano Energy Ltd. has announced a forward split of its common shares, where one existing share will be split into five new shares [1][2] - The company currently has 17,188,268 common shares outstanding, which will increase to approximately 85,941,340 shares post-split [3] - The share split aims to enhance liquidity and broaden the investor base by making shares more accessible [6] Company Overview - Graphano Energy Ltd. is focused on exploring and developing energy metals resources, transitioning from exploration to production [7] - The company’s Lac Aux Bouleaux property is located near Canada’s only producing graphite mine, highlighting its strategic position in the graphite market [8] - The demand for graphite is increasing due to its essential role in technologies such as lithium batteries for electric vehicles and energy storage solutions [8]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, including balance sheets, statements of operations, and detailed notes, reflecting the impact of the Alkali Business sale [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended June 30, 2025, reflect significant changes primarily due to the sale of the Alkali Business, now reported as discontinued operations, leading to decreased assets and liabilities and a substantial net loss [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets significantly decreased to **$4.84 billion** from **$7.04 billion** at year-end 2024, primarily due to the Alkali Business sale, with total liabilities also decreasing to **$4.12 billion** from **$5.52 billion** - The significant reduction in assets and liabilities is primarily due to the sale of the Alkali Business, with assets and liabilities held for discontinued operations being zero at June 30, 2025, compared to **$1.84 billion** and **$530 million** respectively at December 31, 2024[10](index=10&type=chunk)[22](index=22&type=chunk) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $587,308 | $911,734 | | **Total assets** | **$4,838,538** | **$7,037,692** | | **Total current liabilities** | $621,905 | $858,755 | | **Senior Unsecured Notes, net** | $3,035,915 | $3,436,860 | | **Total liabilities** | **$4,121,134** | **$5,521,909** | | **Total partners' capital** | $164,881 | $702,194 | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Genesis Energy reported net income from continuing operations of **$10.0 million**, a shift from a **$4.0 million** net loss in Q2 2024, but a **$432.2 million** loss from discontinued operations led to a total net loss of **$450.3 million** for the six-month period Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $377,348 | $430,179 | $775,659 | $864,626 | | **Operating Income** | $67,715 | $49,779 | $89,688 | $107,834 | | **Net Income (Loss) from Continuing Operations** | $10,011 | $(3,965) | $(26,550) | $7,388 | | **Loss from disposal of discontinued operations** | — | — | $(432,193) | — | | **Net Income (Loss)** | $10,011 | $(1,387) | $(450,295) | $17,569 | | **Net Loss Attributable to Common Unitholders** | $(15,274) | $(30,638) | $(512,751) | $(41,179) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the February 2025 sale of the Alkali Business for approximately **$1.425 billion**, its reclassification as a discontinued operation, and the subsequent reorganization of reporting segments and debt redemptions [Note 1: Organization and Basis of Presentation and Consolidation](index=9&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation%20and%20Consolidation) Genesis Energy, L.P. reorganized its reporting segments in Q1 2025 following the sale of its Alkali Business, now operating through Offshore Pipeline Transportation, Marine Transportation, and Onshore Transportation and Services - On February 28, 2025, the company sold its Alkali Business for a gross price of approximately **$1.425 billion**, now reported as a discontinued operation with prior periods adjusted accordingly[22](index=22&type=chunk) - The company reorganized its segments in Q1 2025 into Offshore pipeline transportation, Marine transportation, and Onshore transportation and services[20](index=20&type=chunk)[25](index=25&type=chunk) [Note 4: Discontinued Operations](index=13&type=section&id=4.%20Discontinued%20Operations) The Alkali Business sale completed on February 28, 2025, for a gross purchase price of **$1.425 billion**, yielded net proceeds of approximately **$1.0 billion** and resulted in a **$432.2 million** loss from disposal for the six months ended June 30, 2025 - The Alkali Business was sold for a gross price of **$1.425 billion**, resulting in net proceeds of approximately **$1.0 billion** after transaction costs, assumption of debt, and cash divested[37](index=37&type=chunk) Financial Impact of Discontinued Operations (Six Months Ended June 30, 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Pretax income from discontinued operations | $8,464 | | Loss from the sale of the Alkali Business | $(432,193) | | **Total pretax loss from discontinued operations** | **$(423,729)** | [Note 10: Debt](index=17&type=section&id=10.%20Debt) Total long-term debt decreased to approximately **$3.1 billion** as of June 30, 2025, from **$3.7 billion** at year-end 2024, primarily due to the redemption of **$406.2 million** in senior unsecured notes using Alkali Business sale proceeds - On April 3, 2025, the company redeemed the remaining **$406.2 million** of its 8.000% senior unsecured notes due 2027, incurring a net loss of **$8.9 million** on the extinguishment[59](index=59&type=chunk) - Following the Alkali Business sale, the senior secured credit facility was amended to reduce total borrowing capacity to **$800 million** and modify leverage ratio calculation terms[57](index=57&type=chunk) Total Long-Term Debt (in thousands) | Date | Principal | Net Value | | :--- | :--- | :--- | | June 30, 2025 | $3,150,960 | $3,107,515 | | Dec 31, 2024 | $3,776,605 | $3,727,860 | [Note 11: Partners' Capital, Mezzanine Capital and Distributions](index=18&type=section&id=11.%20Partners'%20Capital%20(Deficit),%20Mezzanine%20Capital%20and%20Distributions) On March 6, 2025, the company repurchased **7,416,196** Class A Convertible Preferred Units at **$35.40** per unit and declared a quarterly cash distribution of **$0.165** per common unit for Q1 and Q2 2025 - On March 6, 2025, the company purchased **7,416,196** of its Class A Convertible Preferred Units at **$35.40** per unit[69](index=69&type=chunk) Common Unit Distributions per Unit | Quarter | Per Unit Amount | | :--- | :--- | | Q1 2025 | $0.165 | | Q2 2025 | $0.165 | [Note 13: Business Segment Information](index=21&type=section&id=13.%20Business%20Segment%20Information) Following a Q1 2025 reorganization, the company's operations are managed through three reportable segments, with total Segment Margin slightly decreasing to **$135.9 million** in Q2 2025 from **$137.9 million** in Q2 2024 - The company reorganized its operating segments in Q1 2025, with the sulfur services business now reported under the onshore transportation and services segment[78](index=78&type=chunk) Segment Margin (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Offshore pipeline transportation | $87,594 | $86,131 | | Marine transportation | $29,817 | $31,543 | | Onshore transportation and services | $18,458 | $20,242 | | **Total Segment Margin** | **$135,869** | **$137,916** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a Net Income from Continuing Operations of **$10.0 million** for Q2 2025, driven by improved operating income and reduced expenses, while the Alkali Business sale significantly enhanced liquidity and reduced debt [Overview](index=29&type=section&id=Overview) In Q2 2025, Genesis reported **$10.0 million** in Net Income from Continuing Operations, reversing a **$4.0 million** loss in Q2 2024, despite a slight 1% decrease in Segment Margin to **$135.9 million** and reduced cash flow from operations Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income from Continuing Ops | $10.0M | $(4.0)M | +$14.0M | | Segment Margin | $135.9M | $137.9M | -1% | | Available Cash before Reserves | $32.2M | $37.6M | -14% | [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Total operating income increased by **$18.0 million** in Q2 2025, primarily due to improved offshore pipeline transportation segment performance, while marine and onshore segments experienced margin declines [Offshore Pipeline Transportation Segment](index=33&type=section&id=Offshore%20Pipeline%20Transportation%20Segment) The Offshore Pipeline Transportation segment's margin increased by **$1.5 million** (2%) to **$87.6 million** in Q2 2025, driven by new minimum volume commitments from the Shenandoah development and increased volumes from other projects - Segment Margin increased due to new MVCs on the SYNC and CHOPS pipelines for the Shenandoah development, which began in June 2025[138](index=138&type=chunk) - Growth was partially offset by a contractual rate step-down on a 10-year-old transportation dedication and producer downtime at several fields, expected to return to normal rates by the end of Q3 2025[139](index=139&type=chunk) Offshore Segment Margin (in thousands) | Period | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Segment Margin | $87,594 | $86,131 | [Marine Transportation Segment](index=35&type=section&id=Marine%20Transportation%20Segment) The Marine Transportation segment's margin decreased by **$1.7 million** (5%) to **$29.8 million** in Q2 2025, mainly due to lower inland barge utilization from reduced Midwest refinery demand, partially offset by fewer dry-docking days - Inland barge utilization was slightly lower (**98.1%** vs **100.0%** in Q2 2024) due to a decline in Midwest refinery demand for black oil equipment[143](index=143&type=chunk)[145](index=145&type=chunk) - Performance was partially supported by fewer dry-docking days in the offshore fleet and a higher rate on the M/T American Phoenix[145](index=145&type=chunk) Marine Segment Margin (in thousands) | Period | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Segment Margin | $29,817 | $31,543 | [Onshore Transportation and Services Segment](index=36&type=section&id=Onshore%20Transportation%20and%20Services%20Segment) The Onshore Transportation and Services segment's margin decreased by **$1.8 million** (9%) to **$18.5 million** in Q2 2025, primarily due to lower NaHS and caustic soda sales volumes, partially offset by increased rail unload volumes - The decrease in segment margin was primarily due to lower NaHS and caustic soda sales volumes[152](index=152&type=chunk) - The decline was partly offset by an increase in rail unload volumes (**24,979 Bbls/day** vs **19,811 Bbls/day** in Q2 2024) and higher volumes on the Texas pipeline system[151](index=151&type=chunk)[152](index=152&type=chunk) Onshore Segment Margin (in thousands) | Period | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Segment Margin | $18,458 | $20,242 | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly improved following the Alkali Business sale, generating approximately **$1.0 billion** in cash proceeds used for debt reduction and preferred unit repurchases, with no major debt maturities until 2028 - Completed the sale of the Alkali Business for approximately **$1.425 billion** gross, receiving approximately **$1.0 billion** in cash proceeds[169](index=169&type=chunk) - Used proceeds to redeem the remaining **$406.2 million** of 2027 Notes and repurchase **7,416,196** Class A Convertible Preferred Units, lowering the overall cost of capital[171](index=171&type=chunk)[172](index=172&type=chunk) Capital Expenditures (in thousands) | Period | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Maintenance Capital | $39,411 | $44,503 | | Growth Capital | $54,406 | $136,372 | | **Total Capital Expenditures** | **$93,817** | **$181,160** | [Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes have occurred regarding the company's market risk disclosures since the Annual Report, with continued exposure to commodity price changes managed through derivative instruments - No material changes have occurred that would affect the quantitative and qualitative disclosures about market risk provided in the company's Annual Report[224](index=224&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[225](index=225&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[227](index=227&type=chunk) [PART II. OTHER INFORMATION](index=51&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers other required disclosures, including legal proceedings, risk factors, equity sales, defaults, mine safety, and a list of exhibits [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) There have been no material developments in legal proceedings since the filing of the company's Annual Report on Form 10-K, and no environmental proceedings requiring disclosure - No material developments in legal proceedings have occurred since the last Annual Report[229](index=229&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material change in risk factors has been identified since the disclosure in the Annual Report[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no sales of unregistered equity securities during the second quarter of 2025 - There were no sales of unregistered equity securities during the 2025 Quarter[232](index=232&type=chunk) [Defaults upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[233](index=233&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Following the sale of its mine in Green River, Wyoming, on February 28, 2025, the company is no longer required to provide mine safety disclosures - The company is no longer required to provide mine safety disclosures as it sold its mine on February 28, 2025[234](index=234&type=chunk) [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[235](index=235&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) The report lists several exhibits, including the Membership Interest Purchase Agreement for the Alkali Business sale, certificates of limited partnership, and CEO/CFO certifications, along with XBRL data files - Exhibits filed include the purchase agreement for the Alkali business sale, formation documents, and required CEO/CFO certifications[237](index=237&type=chunk)

Financial Data and Key Metrics Changes - The second quarter results were generally in line with expectations, with a focus on future growth opportunities [5] - The company expects to generate increasing amounts of free cash flow starting in the third quarter of 2025, providing financial flexibility for stakeholders [11][18] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment saw a sequential increase in volumes as previously impacted offshore wells were brought back online [12] - The marine transportation segment performed in line with expectations, with strong demand fundamentals for the inland fleet, while the blue water fleet faced softer demand [13][15] - The onshore transportation and services segment also performed as expected, with strong volumes through Texas and Riceland terminals [16] Market Data and Key Metrics Changes - Demand for inland transportation equipment is expected to increase as refiners begin their turnaround season, which historically drives demand [14] - The marine transportation market is experiencing some short-term challenges, but long-term fundamentals remain constructive due to limited supply additions [15] Company Strategy and Development Direction - The company is focused on the successful commissioning of the Shenandoah production facility, which has a capacity of 120,000 barrels per day, and is expected to ramp up production significantly [5][7] - Future developments include the Shenandoah South discovery and the Monument discovery, which will further enhance the company's production capabilities [9][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the projected timeline for Salamanca's initial production by the end of the third quarter, despite potential weather disruptions [21] - The company remains committed to reducing leverage and improving the balance sheet while considering capital returns to unitholders starting in 2025 [25][36] Other Important Information - The company highlighted that delays in production will not significantly impact its ability to generate free cash flow or its outlook for 2026 and beyond [18] - Management emphasized the importance of maintaining financial flexibility to pursue strategic opportunities and enhance stakeholder value [18][19] Q&A Session Summary Question: Timing on Salamanca production - Management feels confident about the projected timeline for Salamanca's initial production by the end of the third quarter, with no significant weather disruptions expected [21] Question: Capital return timing - Management indicated that capital returns could potentially start in 2025, depending on the performance of new projects [25] Question: New commercial opportunities - Management stated there are no new commercial opportunities currently identified, focusing instead on ramping up existing offshore projects [26] Question: Portfolio satisfaction and divestiture candidates - Management expressed satisfaction with the current portfolio and indicated no plans for significant divestitures, focusing on existing business lines [27] Question: Monument development timeline - Management confirmed that Monument is expected to be the next significant development after Salamanca, with additional volumes anticipated in 2026 [28] Question: Marine transportation segment trends - Management noted that while the marine transportation segment faced some short-term challenges, utilization rates remain high, supporting future rate increases [32][34] Question: Leverage ratio timeline and balancing shareholder returns - Management indicated that discussions regarding leverage ratios and shareholder returns will be more defined as 2026 approaches, with potential distributions considered in the fourth quarter of 2025 [36][37] Question: Confidence in adjusted EBITDA guidance - Management expressed cautious optimism about meeting the low end of the adjusted EBITDA guidance, based on early production results [39]

Financial Performance - Genesis Energy reported Adjusted EBITDA of $1229 million in the second quarter[10] - The company's leverage ratio was 552x at the end of the second quarter[10, 14] - Available Cash Before Reserves was $32227 thousand in Q2 2025, with a Common Unit Distribution Coverage Ratio of 159x[18, 24] - Total Segment Margin for the second quarter was $135869 thousand[14, 22] Operational Highlights & Future Outlook - Shenandoah achieved first oil in late July, with production expected to ramp up to 90-100k/d[16] - Salamanca remains on track for first oil by the end of 3Q, expecting production to reach 40-50k/d[10, 16] - The company expects a notable step change in the financial contribution from its offshore pipeline transportation segment starting in 3Q 2025[10] - Genesis Energy has $800 million in credit facility commitments, providing adequate liquidity[7] Capital Allocation & Debt Management - The company aims to maintain a leverage ratio at or near 40x[10] - Genesis Energy repurchased $325 million of Class A convertible preferred securities and 114900 common units at an average price of $909 per unit[10]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Genesis Energy reported a Q2 2025 net loss of $0.4 million, achieving $135.9 million Total Segment Margin and $122.9 million Adjusted EBITDA Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Genesis Energy, L.P. | $0.4 million | $8.7 million | | Cash Flows from Operating Activities | $47.0 million | $104.7 million | | Total Segment Margin | $135.9 million | N/A | | Adjusted EBITDA | $122.9 million | N/A | | Available Cash before Reserves to common unitholders | $32.2 million | N/A | | Bank Leverage Ratio (TTM) | 5.52X | N/A | - Declared cash distributions on preferred units totaled approximately **$14.9 million**[4](index=4&type=chunk) - The company achieved **1.59x** coverage for its quarterly distribution of **$0.165** per common unit[4](index=4&type=chunk) [CEO Commentary and Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Outlook) The CEO highlighted successful Shenandoah and SYNC commissioning, Salamanca progress, and anticipated free cash flow growth for debt reduction - The Shenandoah production facility successfully delivered first oil to the new SYNC pipeline, with production expected to ramp up to **90-100 kbd**[2](index=2&type=chunk) - The Salamanca project remains on track to achieve first oil by the end of Q3 2025, with an initial peak design of **40-50 kbd**[3](index=3&type=chunk) - The company anticipates generating increasing free cash flow starting in Q3, which will be used to pay down its revolving credit facility[5](index=5&type=chunk)[6](index=6&type=chunk) - Future capital allocation strategy includes debt reduction, potential redemption of high-cost preferred units, and possible increases in common unit distributions[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Total Segment Margin slightly decreased to $135.9 million in Q2 2025, with Offshore growth offset by Marine and Onshore declines, and a segment reorganization Segment Margin (in thousands) | Segment | Q2 2025 | Q2 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Offshore pipeline transportation | $87,594 | $86,131 | +$1,463 | +1.7% | | Marine transportation | $29,817 | $31,543 | -$1,726 | -5.5% | | Onshore transportation and services | $18,458 | $20,242 | -$1,784 | -8.8% | | **Total Segment Margin** | **$135,869** | **$137,916** | **-$2,047** | **-1.5%** | - The company reorganized its operating segments, moving the sulfur services business into the Onshore transportation and services segment[14](index=14&type=chunk) [Offshore Pipeline Transportation](index=3&type=section&id=Offshore%20Pipeline%20Transportation) Offshore Segment Margin increased by 2% to $87.6 million, driven by new MVCs and higher volumes from key projects, partially offset by rate adjustments - Growth was driven by the commencement of MVCs on the SYNC and CHOPS pipelines for the Shenandoah development, which began contributing in June 2025[15](index=15&type=chunk) - Deepwater drilling activity in the Gulf of America remains resilient and is not expected to be significantly altered by near-term macroeconomic headwinds[10](index=10&type=chunk) Offshore Operating Data | Metric (average/day) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Crude oil pipelines (barrels) | 646,010 | 642,251 | | Natural gas transportation (MMBtus) | 403,703 | 357,687 | [Marine Transportation](index=3&type=section&id=Marine%20Transportation) Marine Segment Margin decreased by 5% to $29.8 million, with inland market strength offset by offshore market softening due to increased vessel availability - The inland barge business saw slightly lower utilization due to a decline in Midwest refinery demand for black oil equipment[17](index=17&type=chunk) - The bluewater market experienced pressure on day rates as third-party vessels were redeployed from the West Coast to the East and Gulf coasts[11](index=11&type=chunk)[17](index=17&type=chunk) Marine Utilization Percentage | Fleet | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Inland Barge | 98.1% | 100.0% | | Offshore Barge | 97.3% | 94.9% | [Onshore Transportation and Services](index=4&type=section&id=Onshore%20Transportation%20and%20Services) Onshore Segment Margin decreased by 9% to $18.5 million, driven by lower NaHS and caustic soda sales, partially offset by higher rail unload and Texas pipeline volumes - The decrease was mainly driven by lower sales volumes of NaHS and caustic soda[18](index=18&type=chunk) - Performance was partially offset by higher volumes at the Texas system and Raceland terminal, and increased rail unload volumes at the Scenic Station facility[12](index=12&type=chunk)[18](index=18&type=chunk) Onshore Operating Data | Metric (average/day) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Onshore crude oil pipelines (barrels) | 151,899 | 129,522 | | NaHS volumes (Dry short tons) | 23,256 | 29,656 | [Financial Outlook](index=4&type=section&id=Financial%20Outlook) The company revised its full-year 2025 guidance due to temporary delays in Shenandoah and Salamanca first oil, and producer outages, without affecting long-term earnings - Full-year 2025 Adjusted EBITDA is now expected to be at or near the low end of the prior guidance range of **$545–$575 million**[13](index=13&type=chunk) - The delays are considered temporary and are not expected to have any lasting impact on the ability to generate increasing Adjusted EBITDA and free cash flow in 2026 and beyond[13](index=13&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The unaudited financial statements detail Q2 2025 performance, showing a return to profitability from continuing operations and balance sheet changes after the Alkali Business sale [Statements of Operations (Income Statement)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Genesis reported revenues of $377.3 million and a net loss of $0.4 million, a significant improvement from Q2 2024, with net loss per common unit at $0.12 Q2 Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $377,348 | $430,179 | | Operating Income | $67,715 | $49,779 | | Net Income (Loss) from Continuing Operations | $10,011 | $(3,965) | | Net Loss Attributable to Genesis Energy, L.P. | $(406) | $(8,744) | | Net Loss per Common Unit - Basic and Diluted | $(0.12) | $(0.25) | [Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $4.84 billion and liabilities $4.12 billion, with the senior secured credit facility balance significantly reduced due to the Alkali Business sale Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $587,308 | $911,734 | | Total assets | $4,838,538 | $7,037,692 | | Senior secured credit facility | $71,600 | $291,000 | | Total liabilities | $4,121,134 | $5,521,909 | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company provides detailed reconciliations for key non-GAAP measures, reporting Q2 2025 Adjusted EBITDA of $122.9 million, Available Cash before Reserves of $32.2 million, and a 5.52x leverage ratio Key Non-GAAP Metrics (Q2 2025) | Metric | Value | | :--- | :--- | | Adjusted EBITDA | $122.9 million | | Available Cash before Reserves | $32.2 million | | Adjusted Debt-to-Adjusted Consolidated EBITDA (LTM) | 5.52X | - The report includes detailed definitions and the company's rationale for using non-GAAP measures such as Available Cash before Reserves and Adjusted EBITDA, which management believes are useful for assessing financial performance, operating performance, and the ability to generate cash[38](index=38&type=chunk)[40](index=40&type=chunk)[50](index=50&type=chunk) - The calculation for the leverage ratio includes pro forma adjustments for material organic growth projects like Shenandoah, based on contractual minimum cash commitments[37](index=37&type=chunk)

Core Viewpoint - Genesis Energy (NYSE: GEL) is experiencing improved operational stability and reduced financial pressures, indicating a positive trajectory for the company [1] Group 1: Operational Performance - Operational risks for Genesis Energy are reported to be under control, suggesting effective management and stability within the company's operations [1] - Early signs of returns from projects indicate that the company is on a solid path toward recovery and growth [1] Group 2: Financial Health - Financial pressures have eased significantly for Genesis Energy, which may enhance its ability to invest in future projects and sustain operations [1]

Core Viewpoint - Midstream energy stocks are currently attractive for investment due to their stable cash flows, high yields, and growth opportunities, trading below historical valuations despite improved financial conditions [1]. Group 1: Energy Transfer - Energy Transfer is highlighted as a compelling investment with a high yield, improving financial profile, and solid growth opportunities, trading at low valuations [2][6]. - The company has improved its balance sheet over recent years, reducing debt and increasing free cash flow, allowing it to enter a growth phase [3]. - Approximately 90% of Energy Transfer's EBITDA is fee-based, providing a stable revenue stream insulated from commodity price fluctuations, with a distributable cash flow covering distributions by over 2x [4]. - The company plans to spend $5 billion on growth projects this year, focusing on natural gas supply for AI data centers and LNG exports [5]. - The stock trades at a forward enterprise value-to-EBITDA multiple of 8, indicating it is undervalued given its financial strength and 7.5% yield [6]. Group 2: Enterprise Products Partners - Enterprise Products Partners is characterized as a stable investment with a long history of distribution growth and a conservative balance sheet [7]. - The company has increased its distribution for 26 consecutive years, currently yielding around 6.9%, with expectations for continued growth [8]. - About 85% of Enterprise's cash flow is derived from fee-based contracts, ensuring consistent revenue even in volatile markets [9]. - The company is a major player in natural gas liquids, operating across the entire value chain, with growing global demand [10]. - Enterprise maintains a conservative leverage ratio of just over 3x, with a distribution coverage ratio of 1.7x, allowing it to self-fund growth [11]. Group 3: Genesis Energy - Genesis Energy is undergoing a strategic shift that could unlock significant value, appealing to investors willing to accept higher risk [13]. - The company sold its soda ash business for $1.4 billion, using the proceeds to reduce high-cost debt, which is expected to save $84 million annually in interest expenses [14]. - Focus is shifting to offshore pipeline assets, with two large deepwater projects expected to generate up to $150 million in annual operating profit [15]. - The stock currently yields around 3.9%, with potential for significant distribution increases as new projects come online [16].

Core Viewpoint - The pipeline sector is positioned to offer high yields, predictable cash flows, and solid growth, particularly due to increasing natural gas demand from LNG exports and AI data centers. Company Summaries 1. Energy Transfer - Operates one of the largest midstream networks in the U.S. and is entering a growth phase with a capital expenditure budget increase from $3 billion to $5 billion focused on natural gas infrastructure in the Permian Basin [3][4] - Approximately 90% of EBITDA is tied to fee-based contracts, supporting a distribution yield of 7.2% with a target of 3% to 5% annual growth [5] 2. Enterprise Products Partners - Known for reliability, having raised distributions for 26 consecutive years, with 85% of revenue being fee-based and many contracts having take-or-pay terms [6][7] - Currently has $7.6 billion in projects under construction, with $6 billion expected to come online this year, focusing on high-return expansions in the NGL value chain [7] 3. Western Midstream - Offers a high yield of 9.5% with strong revenue visibility due to cost-of-service protections and minimum volume commitments in contracts [9][10] - Maintains conservative financial management with leverage below 3x and is investing in solid return projects like the $450 million Pathfinder produced-water pipeline [10][11] 4. Williams Companies - Yield is around 3.2%, but it has significant growth potential, particularly through its Transco pipeline system, which connects natural gas fields to growing markets [12][13] - Engaged in multiple expansion projects and a $1.6 billion investment in the Socrates project to serve data center demand [14] 5. Genesis Energy - Represents a turnaround story, having sold its soda ash business for $1.4 billion to reduce debt and improve cash flow [15][17] - Focused on growing its offshore pipeline system, with significant growth expected from upcoming deepwater projects and a marine segment on track for record earnings [18][19]