Strategic Decisions & Financial Performance - Genesis Energy successfully exited its soda ash business for $1425 billion, receiving ~$1 billion in net proceeds[6, 9] - The transaction significantly reduced annual cash costs by >$120 million[9] - Reported Adjusted EBITDA of $1317 million in the first quarter[9] - The company maintains a clear path to Adjusted EBITDA growth in 2025 and increasing cash flow[9] Offshore Pipeline Transportation - Shenandoah and Salamanca developments remain on schedule for first oil in mid-2025, with a combined capacity of ~200k/d[9] - A new 105-mile SYNC pipeline connecting to Shenandoah FPS is in progress, with commissioning scheduled for late-May 2025[9] - Offshore Pipeline Transportation segment margin was $76548 thousand in 1Q 2025[14] Capital Allocation & Credit Profile - Annual cash costs to run the business are ~$425 - $450 million per year[9] - The company has a credit facility with $800 million in commitments[9] - The leverage ratio was 549x at the end of the first quarter, with a target of maintaining it at or near 40x[9, 14]

[First Quarter 2025 Highlights and Strategic Overview](index=1&type=section&id=1.%20First%20Quarter%202025%20Highlights%20and%20Strategic%20Overview) Genesis Energy reported a significant net loss in Q1 2025 due to the soda ash business sale, while strategically deleveraging and advancing offshore growth projects [Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) Genesis Energy reported a **$469.1 million** net loss in Q1 2025, a significant decline from Q1 2024 net income, primarily due to the soda ash business sale, with operating cash flows also decreasing Key Financial Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (million USD) | Q1 2024 (million USD) | Change (million USD) | | :------------------------------------------ | :-------------------- | :-------------------- | :------------------- | | Net Loss Attributable to Genesis Energy, L.P. | $(469.1)$ | $11.4$ | $(480.5)$ | | Cash Flows from Operating Activities | $24.8$ | $125.9$ | $(101.1)$ | | Available Cash before Reserves | $20.3$ | N/A | N/A | | Total Segment Margin | $121.4$ | N/A | N/A | | Adjusted EBITDA | $131.7$ | N/A | N/A | - Declared cash distributions on preferred units of **$0.9473** for each preferred unit, totaling approximately **$19.9 million**[4](index=4&type=chunk) [Strategic Actions and Balance Sheet Simplification](index=1&type=section&id=1.2%20Strategic%20Actions%20and%20Balance%20Sheet%20Simplification) Genesis Energy exited its soda ash business for **$1.425 billion**, using **$1.0 billion** net proceeds to reduce debt and preferred units, cutting annual capital costs by over **$120 million** - Closed the sale of the soda ash business to an indirect affiliate of WE Soda Ltd for an implied enterprise value of **$1.425 billion**[3](index=3&type=chunk) - Received approximately **$1.0 billion** in cash after associated transaction costs and expenses[3](index=3&type=chunk) - Used net proceeds to pay senior secured revolving credit facility to zero, call and redeem remaining 8.0% senior unsecured notes due 2027, and repurchase **$250 million** of Class A Convertible Preferred Units[3](index=3&type=chunk) - Reduced annual cash cost on capital underlying remaining businesses by more than **$120 million** annually, and ongoing cash cost of running the business to **$425 - $450 million** per year (including **$70-$80 million** annual soda ash maintenance capital savings)[3](index=3&type=chunk) [Offshore Growth Projects Update](index=1&type=section&id=1.3%20Offshore%20Growth%20Projects%20Update) Genesis Energy is completing Gulf of America growth projects, with Shenandoah pipeline commissioning by May and volumes in June, and Salamanca first oil expected in Q3 2025 - Shenandoah production facility successfully moored in April; SYNC pipeline commissioning anticipated towards the end of May, with volumes expected to begin in June[4](index=4&type=chunk)[6](index=6&type=chunk) - Salamanca is anticipated to arrive at its final location any day now, with first oil expected in the third quarter[6](index=6&type=chunk) - These projects are expected to be an integral part of the Genesis growth story, positioning the company to generate cash in excess of ongoing costs[2](index=2&type=chunk)[7](index=7&type=chunk) [Segmental Business Performance and Outlook](index=3&type=section&id=1.4%20Segmental%20Business%20Performance%20and%20Outlook) Offshore pipeline transportation faced mechanical issues but expects Q3 2025 recovery with new project volumes, while marine and onshore segments performed as expected with stable demand and anticipated H2 2025 volume increases - Offshore pipeline transportation segment negatively impacted by producer-related mechanical issues, but volumes exiting Q1 2025 were greater than exiting last year, with expected return to normalized levels by the end of Q3 2025[9](index=9&type=chunk) - Pre-built capacity available on new SYNC and expanded CHOPS pipelines to attract additional volumes without growth capital[10](index=10&type=chunk) - Marine transportation segment performed as expected, with constructive market dynamics, high utilization levels, and steady to increasing day rates due to limited new supply and stable demand[11](index=11&type=chunk) - Onshore transportation and services segment performed in line with expectations, anticipating a marginal increase in volumes through onshore terminals in H2 2025 from Shenandoah and Salamanca[12](index=12&type=chunk) [Full Year 2025 Outlook and Macroeconomic Assessment](index=3&type=section&id=1.5%20Full%20Year%202025%20Outlook%20and%20Macroeconomic%20Assessment) Genesis Energy projects 2025 Adjusted EBITDA between **$545 million and $575 million**, contingent on offshore issue resolution and new project ramp-up, with minimal anticipated impact from macroeconomic headwinds on deepwater Gulf of America developments - Expected Adjusted EBITDA for 2025 is in the range of **$545 - $575 million**[13](index=13&type=chunk) - Variability in 2025 Adjusted EBITDA driven by timing of resolution of mechanical issues at impacted offshore fields and the rate at which Shenandoah and Salamanca ramp to anticipated production levels[14](index=14&type=chunk) - No significant impact anticipated from proposed tariffs, slowing economic activity, relatively low oil prices, or other current macro-economic headwinds, especially for long-term deepwater Gulf of America developments[15](index=15&type=chunk)[16](index=16&type=chunk) [Detailed Financial Results](index=5&type=section&id=2.%20Detailed%20Financial%20Results) This section details Genesis Energy's Q1 2025 financial performance, including segment reorganization, margin analysis, and comprehensive statements of operations, balance sheets, and operating data [Segment Reorganization](index=5&type=section&id=2.1%20Segment%20Reorganization) Genesis Energy reorganized its operating segments in Q1 2025, moving sulfur services to onshore transportation and services, now managing three reportable segments: Offshore, Marine, and Onshore transportation and services - Reorganized operating segments in Q1 2025; sulfur services business now reported under onshore transportation and services[18](index=18&type=chunk) - Now manages businesses through three reportable segments: Offshore pipeline transportation, Marine transportation, and Onshore transportation and services[18](index=18&type=chunk)[21](index=21&type=chunk) [Segment Margin Analysis](index=5&type=section&id=2.2%20Segment%20Margin%20Analysis) Total Segment Margin decreased by **$25.9 million (17.6%)** to **$121.4 million** in Q1 2025, primarily due to declines across all three operating segments Segment Margin Performance (Q1 2025 vs Q1 2024) | Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | | Offshore pipeline transportation | $76,548 | $97,806 | $(21,258) | | Marine transportation | $30,021 | $31,363 | $(1,342) | | Onshore transportation and services | $14,826 | $18,098 | $(3,272) | | **Total Segment Margin** | **$121,395** | **$147,267** | **$(25,872)**| [Offshore Pipeline Transportation](index=5&type=section&id=2.2.1%20Offshore%20Pipeline%20Transportation) Offshore pipeline transportation Segment Margin decreased by **$21.3 million** due to rate step-downs, producer underperformance, and increased operating costs, with normalized production expected by Q3 2025 - Offshore pipeline transportation Segment Margin decreased **$21.3 million (22%)** primarily due to an economic step-down in a transportation rate, producer underperformance at major fields, and increased operating costs[19](index=19&type=chunk) - Expect a return to more normalized production rates from impacted fields by the third quarter of 2025[19](index=19&type=chunk) [Marine Transportation](index=5&type=section&id=2.2.2%20Marine%20Transportation) Marine transportation Segment Margin decreased by **$1.3 million** due to slightly lower inland barge utilization, partially offset by a contractual rate increase, with strong demand expected through 2025 - Marine transportation Segment Margin decreased **$1.3 million (4%)** due to slightly lower utilization rates in inland barge service from a temporary decline in refinery utilization[20](index=20&type=chunk) - The slight decline was partially offset by a contractual rate increase on the M/T American Phoenix[20](index=20&type=chunk) - Expect demand for service to remain strong throughout at least the remainder of 2025 due to continued lack of new supply and retirement of older vessels[20](index=20&type=chunk) [Onshore Transportation and Services](index=6&type=section&id=2.2.3%20Onshore%20Transportation%20and%20Services) Onshore transportation and services Segment Margin decreased by **$3.3 million** due to lower NaHS and caustic soda sales volumes and reduced crude oil pipeline volumes, partially offset by increased rail unload volumes - Onshore transportation and services Segment Margin decreased **$3.3 million (18%)** primarily due to lower NaHS and caustic soda sales volumes and an overall decrease in volumes on onshore crude oil pipeline systems[22](index=22&type=chunk) - This decrease was partially offset by an increase in the rail unload volumes at the Scenic Station facility[22](index=22&type=chunk) [Other Components of Net Income (Loss)](index=6&type=section&id=2.3%20Other%20Components%20of%20Net%20Income%20(Loss)) Net Loss from Continuing Operations was **$36.6 million** in Q1 2025, impacted by increased G&A, interest, and depreciation, while Net Loss from Discontinued Operations of **$423.7 million** resulted primarily from the Alkali Business sale Net Income (Loss) Components (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (YoY) | | :------------------------------------------ | :--------------------- | :--------------------- | :----------- | | Net Loss from Continuing Operations | $(36,561)$ | $11,353$ | $(47,914)$ | | Net Loss from Discontinued Operations, net of tax | $(423,745)$ | $7,603$ | $(431,348)$ | - Net Loss from Continuing Operations impacted by a **$25.9 million** increase in general and administrative expenses (primarily related to transaction costs for the Alkali Business sale), a **$7.7 million** increase in interest expense, a **$6.8 million** increase in depreciation and amortization, and a **$3.9 million** decrease in equity in earnings from equity investments[24](index=24&type=chunk) - Net Loss from Discontinued Operations, net of tax, in Q1 2025 was impacted by a loss from the sale of the Alkali Business[25](index=25&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=2.4%20Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations reflect a significant year-over-year shift from net income to net loss, primarily due to the loss from discontinued operations and increased expenses Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | REVENUES | $398,311 | $434,447 | | Costs of sales and operating expenses | $279,525 | $312,301 | | General and administrative expenses | $40,642 | $14,700 | | Depreciation and amortization | $56,171 | $49,391 | | OPERATING INCOME | $21,973 | $58,055 | | Equity in earnings of equity investees | $12,492 | $16,441 | | Interest expense, net | $(70,038)$ | $(62,334)$ | | NET INCOME (LOSS) FROM CONTINUING OPERATIONS | $(36,561)$ | $11,353 | | NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | $(423,745)$ | $7,603 | | NET INCOME (LOSS) | $(460,306)$ | $18,956 | | NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. | $(469,075)$ | $11,353 | | NET LOSS ATTRIBUTABLE TO COMMON UNITHOLDERS | $(497,477)$ | $(10,541)$ | | Net loss per common unit - Basic and Diluted | $(4.06)$ | $(0.09)$ | [Operating Data](index=8&type=section&id=2.5%20Operating%20Data) Q1 2025 operating data shows mixed segment performance, with decreased offshore crude oil pipeline volumes (except CHOPS), slight marine fleet utilization declines, and significantly reduced onshore crude oil pipeline volumes offset by increased rail unload volumes Operating Data by Segment (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :------------------------------------------ | :---------- | :---------- | :----------- | | **Offshore Pipeline Transportation Segment** | | | | | CHOPS (average barrels/day) | 312,976 | 298,313 | +14,663 | | Poseidon (average barrels/day) | 244,323 | 291,922 | -47,599 | | Offshore crude oil pipelines total (bbl/day) | 622,719 | 656,290 | -33,571 | | Natural gas transportation volumes (MMBtus/day) | 401,764 | 407,556 | -5,792 | | **Marine Transportation Segment** | | | | | Inland Fleet Utilization Percentage | 93.6% | 100.0% | -6.4% | | Offshore Fleet Utilization Percentage | 96.2% | 99.2% | -3.0% | | **Onshore Transportation and Services Segment** | | | | | Texas (barrels/day) | 61,924 | 84,617 | -22,693 | | Louisiana (barrels/day) | 38,173 | 72,856 | -34,683 | | Onshore crude oil pipelines total (bbl/day) | 105,614 | 165,746 | -60,132 | | Crude oil product sales (barrels/day) | 19,968 | 23,437 | -3,469 | | Rail unload volumes (barrels/day) | 20,492 | 1,240 | +19,252 | | NaHS volumes (Dry short tons "DST") | 25,873 | 29,037 | -3,164 | | NaOH (caustic soda) volumes (DST sold) | 8,545 | 10,358 | -1,813 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=2.6%20Condensed%20Consolidated%20Balance%20Sheets) The March 31, 2025 balance sheet reflects the soda ash business sale, with total assets decreasing from **$7.04 billion** to **$5.21 billion** and total liabilities from **$5.52 billion** to **$4.47 billion**, while cash and cash equivalents significantly increased Condensed Consolidated Balance Sheets (March 31, 2025 vs December 31, 2024) | (in thousands) | March 31, 2025 | December 31, 2024 | Change | | :------------------------------------------ | :------------- | :---------------- | :----- | | Total assets | $5,211,859 | $7,037,692 | $(1,825,833)$ | | Total liabilities | $4,471,727 | $5,521,909 | $(1,050,182)$ | | Cash and cash equivalents | $377,360 | $7,352 | $370,008$ | | Current assets held for discontinued operations | $— | $368,307 | $(368,307)$ | | Non-current assets held for discontinued operations | $— | $1,839,113 | $(1,839,113)$ | | Senior secured credit facility | $— | $291,000 | $(291,000)$ | | Class A Convertible Preferred Units | $552,523 | $813,589 | $(261,066)$ | | Common unitholders (deficit) | $(237,793)$ | $279,891 | $(517,684)$ | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=3.%20Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides detailed reconciliations and definitions for Genesis Energy's non-GAAP financial measures, including Segment Margin, Adjusted EBITDA, Available Cash before Reserves, and the Adjusted Debt-to-Adjusted Consolidated EBITDA Ratio [Reconciliation of Segment Margin](index=10&type=section&id=3.1%20Reconciliation%20of%20Segment%20Margin) This section reconciles Net income (loss) from operations before income taxes to Segment Margin, detailing adjustments for noncontrolling interests, corporate G&A, depreciation, interest, equity investees, and other non-cash items Reconciliation of Segment Margin (Q1 2025 vs Q1 2024) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income (loss) from operations before income taxes | $(36,417)$ | $12,162 | | Net income attributable to noncontrolling interests | $(8,769)$ | $(7,603)$ | | Corporate general and administrative expenses | $41,676 | $15,211 | | Depreciation, amortization and accretion | $59,011 | $52,163 | | Interest expense, net | $70,038 | $62,334 | | Adjustment to include distributable cash generated by equity investees not included in income (1) and exclude equity in investees net income | $6,092 | $6,808 | | Unrealized losses (gains) on derivative transactions excluding fair value hedges, net of changes in inventory value | $(71)$ | $247 | | Other non-cash items | $(2,722)$ | $(2,127)$ | | Loss on extinguishment of debt | $844 | $— | | Differences in timing of cash receipts for certain contractual arrangements (2) | $(8,287)$ | $8,072 | | **Segment Margin** | **$121,395** | **$147,267** | [Reconciliation of Adjusted EBITDA and Available Cash Before Reserves](index=11&type=section&id=3.2%20Reconciliation%20of%20Adjusted%20EBITDA%20and%20Available%20Cash%20Before%20Reserves) This section reconciles Net income (loss) attributable to Genesis Energy, L.P. to Adjusted EBITDA, and then to Available Cash before Reserves, by adjusting for interest, taxes, depreciation, non-cash items, maintenance capital, cash taxes, and preferred distributions Reconciliation of Adjusted EBITDA and Available Cash Before Reserves (Q1 2025 vs Q1 2024) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to Genesis Energy, L.P. | $(469,075)$ | $11,353 | | Interest expense, net | $70,038 | $62,334 | | Income tax expense | $144 | $809 | | Depreciation, amortization and accretion | $59,011 | $52,163 | | Loss from disposal of discontinued operations | $432,193 | $— | | Interest expense and income tax expense from discontinued operations, net | $4,195 | $6,400 | | Other non-cash items from discontinued operations, net (1) | $15,584 | $18,990 | | EBITDA | $112,090 | $152,049 | | Plus (minus) Select Items, net (2) | $19,589 | $11,027 | | **Adjusted EBITDA** | **$131,679** | **$163,076** | | Maintenance capital utilized (4) | $(16,900)$ | $(18,100)$ | | Interest expense, net | $(70,038)$ | $(62,334)$ | | Cash tax expense | $(257)$ | $(300)$ | | Distributions to preferred unitholders (5) | $(19,942)$ | $(21,894)$ | | Interest expense and income tax expense from discontinued operations, net | $(4,195)$ | $(6,400)$ | | **Available Cash before Reserves** | **$20,347** | **$54,048** | [Reconciliation of Net Cash Flows from Operating Activities to Adjusted EBITDA](index=12&type=section&id=3.3%20Reconciliation%20of%20Net%20Cash%20Flows%20from%20Operating%20Activities%20to%20Adjusted%20EBITDA) This reconciliation adjusts Net Cash Flows from Operating Activities to Adjusted EBITDA by accounting for interest, amortization, equity method investee effects, operating asset/liability changes, non-cash compensation, business development expenses, and cash receipt timing differences Reconciliation of Net Cash Flows from Operating Activities to Adjusted EBITDA (Q1 2025 vs Q1 2024) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Cash Flows from Operating Activities | $24,805 | $125,921 | | Adjustments to reconcile net cash flows from operating activities to Adjusted EBITDA: | | | | Interest expense, net (1) | $74,217 | $68,734 | | Amortization and write-off of debt issuance costs, premium and discount | $(3,857)$ | $(2,884)$ | | Effects from equity method investees not included in operating cash flows | $6,152 | $7,680 | | Net effect of changes in components of operating assets and liabilities | $32,368 | $(28,473)$ | | Non-cash effect of long-term incentive compensation plans | $(2,485)$ | $(4,315)$ | | Expenses related to business development activities and growth projects | $25,208 | $23 | | Differences in timing of cash receipts for certain contractual arrangements (2) | $(8,287)$ | $8,072 | | Other items, net (3) | $(16,442)$ | $(11,682)$ | | **Adjusted EBITDA** | **$131,679** | **$163,076** | [Adjusted Debt-to-Adjusted Consolidated EBITDA Ratio](index=13&type=section&id=3.4%20Adjusted%20Debt-to-Adjusted%20Consolidated%20EBITDA%20Ratio) As of March 31, 2025, Genesis Energy's Adjusted Debt was **$3.05 billion**, with Pro Forma LTM Adjusted Consolidated EBITDA of **$555.4 million**, resulting in an Adjusted Debt-to-Adjusted Consolidated EBITDA ratio of **5.49X** Adjusted Debt-to-Adjusted Consolidated EBITDA Ratio (March 31, 2025) | (in thousands) | March 31, 2025 | | :------------------------------------------ | :------------- | | Senior secured credit facility | $— | | Senior unsecured notes, net of debt issuance costs, discount and premium | $3,439,113 | | Less: Outstanding inventory financing sublimit borrowings | $(10,700)$ | | Less: Cash and cash equivalents | $(377,028)$ | | **Adjusted Debt** | **$3,051,385** | | | | | Consolidated EBITDA (per our senior secured credit facility) | $552,508 | | Consolidated EBITDA adjustments (2) | $2,929 | | **Adjusted Consolidated EBITDA (per our senior secured credit facility) (3)** | **$555,437** | | | | | **Adjusted Debt-to-Adjusted Consolidated EBITDA Ratio** | **5.49X** | [Definitions of Non-GAAP Measures](index=14&type=section&id=3.5%20Definitions%20of%20Non-GAAP%20Measures) This section defines Genesis Energy's non-GAAP financial measures, including Available Cash before Reserves, Adjusted EBITDA, and Segment Margin, explaining their purpose and calculation [Available Cash Before Reserves](index=14&type=section&id=3.5.1%20Available%20Cash%20Before%20Reserves) Available Cash before Reserves is a key metric for assessing financial performance, operating performance, project viability, and capacity for discretionary payments - Available Cash before Reserves is a quantitative standard used to assess financial performance, operating performance, project viability, ability to satisfy non-discretionary cash requirements, and capacity for discretionary payments[47](index=47&type=chunk)[50](index=50&type=chunk) - Defined as Adjusted EBITDA adjusted for maintenance capital utilized, interest expense (net), cash tax expense, and cash distributions paid to Class A Convertible Preferred unitholders[48](index=48&type=chunk) - Uses 'maintenance capital utilized' as a proxy for non-discretionary maintenance capital expenditures, calculated as the portion of previously incurred maintenance capital expenditures utilized during the relevant quarter, allocated ratably over useful lives[49](index=49&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [Adjusted EBITDA](index=16&type=section&id=3.5.2%20Adjusted%20EBITDA) Adjusted EBITDA is a key metric for evaluating asset financial performance, operating performance, project viability, and cash generation for various payments - Adjusted EBITDA is used to assess financial performance of assets, operating performance compared to peers, project viability, and the ability to generate cash for non-discretionary and discretionary payments[57](index=57&type=chunk)[59](index=59&type=chunk) - Defined as Net income (loss) attributable to Genesis Energy, L.P. before interest, taxes, depreciation, depletion and amortization (including impairment, write-offs, accretion and similar items) after eliminating other non-cash revenues, expenses, gains, losses and charges, plus or minus certain 'Select Items' not indicative of core operating results[57](index=57&type=chunk) Select Items Adjustments for Adjusted EBITDA (Q1 2025 vs Q1 2024) | Select Items (in thousands) | Q1 2025 | Q1 2024 | | :------------------------------------------ | :------ | :------ | | Differences in timing of cash receipts for certain contractual arrangements | $(8,287)$ | $8,072$ | | Unrealized losses (gains) on derivative transactions excluding fair value hedges, net of changes in inventory value | $(71)$ | $247$ | | Loss on debt extinguishment | $844$ | $—$ | | Adjustment regarding equity investees | $6,092$ | $6,808$ | | Other (applicable to all Non-GAAP Measures) | $(2,722)$ | $(2,127)$ | | Certain transaction costs | $25,208$ | $23$ | | Other (applicable only to Adjusted EBITDA and Available Cash before Reserves) | $(1,475)$ | $(1,996)$ | | **Total Select Items, net** | **$19,589** | **$11,027** | [Segment Margin](index=17&type=section&id=3.5.3%20Segment%20Margin) Segment Margin is a key performance indicator used by the chief operating decision maker to evaluate the financial performance of each operating segment - Segment Margin is a key measure used by the chief operating decision maker to evaluate segment performance[61](index=61&type=chunk) - Defined as revenues less product costs, operating expenses, and segment general and administrative expenses (net of noncontrolling interests), plus or minus applicable 'Select Items'[61](index=61&type=chunk) [Additional Information](index=6&type=section&id=4.%20Additional%20Information) This section provides details on the earnings conference call, company description, forward-looking statements, and investor contact information [Earnings Conference Call](index=6&type=section&id=4.1%20Earnings%20Conference%20Call) Genesis Energy will host its Q1 2025 Earnings Conference Call on May 8, 2025, at 9:00 a.m. Central time, with a replay available online for 30 days - Earnings Conference Call on Thursday, May 8, 2025, at 9:00 a.m. Central time (10:00 a.m. Eastern time)[26](index=26&type=chunk) - Access via www.genesisenergy.com (Investor Relations button); a replay will be available for 30 days[26](index=26&type=chunk) [Company Description](index=6&type=section&id=4.2%20Company%20Description) Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas, operating offshore and onshore pipeline transportation, and marine transportation in the Gulf of America and Gulf Coast - Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas[27](index=27&type=chunk) - Operations include offshore pipeline transportation, marine transportation and onshore transportation and services, primarily located in the Gulf of America and in the Gulf Coast region of the United States[27](index=27&type=chunk) [Forward-Looking Statements](index=13&type=section&id=4.3%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to uncertainties and risks, including market, weather, economic, and operational factors, with no obligation for the company to update or revise them - This press release includes forward-looking statements that rely on a number of assumptions concerning future events and are subject to uncertainties, factors, and risks that could cause results to differ materially[43](index=43&type=chunk) - Such risks and uncertainties include weather, political, economic and market conditions, inflation, tariffs, demand for services, disease, international military conflicts, and operational uncertainties[43](index=43&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement[43](index=43&type=chunk) [Contact Information](index=17&type=section&id=4.4%20Contact%20Information) This section provides contact information for investor relations inquiries - Contact: Dwayne Morley, Vice President - Investor Relations, (713) 860-2536[62](index=62&type=chunk)

Core Insights - Graphano Energy Ltd. has engaged Mercator Geological Services to prepare a NI 43-101 compliant mineral resource estimate for its projects, marking a significant milestone in the company's development efforts [1][2][3] - The resource estimate will utilize both recent and historical exploration data, covering key mineralized zones at the Lac Aux Bouleaux project and the Standard Mine project, which will support future technical and economic studies [2][3] - Concurrently, Graphano has initiated an exploration program at the Black Pearl graphite property, targeting a new graphite discovery made in 2024, which has shown promising grades of graphite mineralization [3][4][6] Engagement of Mercator Geological Services - The engagement of Mercator is seen as critical for demonstrating the value of Graphano's assets and positioning the company for growth [3] - The resource estimate will include data from Graphano's drilling programs conducted between 2021 and 2024, focusing on three mineralized zones [2] Black Pearl Exploration Program - The exploration program at Black Pearl aims to delineate the extent of a mineralized trend approximately one kilometer long, with the goal of advancing it to drill-ready status [4][14] - The discovery at Black Pearl has returned significant channel sample results, including 15.1% Cg over 14 meters and 17.9% Cg over 9 meters, indicating the potential for a large, high-grade graphite system [3][6] Industry Context - Graphite is increasingly in demand for technology applications, particularly in lithium batteries and energy storage technologies, positioning Graphano to meet future market needs [11] - The Lac Aux Bouleaux property is strategically located adjacent to Canada's only producing graphite mine, enhancing its potential for resource development [11]

Group 1 - Genesis Energy, L.P. is approaching a significant turning point due to strong secular tailwinds in its core businesses and the completion of major growth projects [1] - The company has invested over $1 billion in its growth initiatives, indicating a commitment to expanding its operational capacity and market presence [1]

Core Viewpoint - Graphano Energy Ltd. has received the necessary "Autorisation de Travaux à Impact" (ATI) for its exploration properties in Québec, allowing the company to advance its exploration initiatives and capitalize on its graphite assets [1][2]. Government Authorizations for Exploration - In May 2024, Québec implemented new exploration permitting requirements aimed at enhancing transparency and incorporating community feedback into mineral exploration activities. Companies must obtain ATI from the Ministère des Ressources naturelles et des Forêts (MRNF) before conducting exploration activities that may impact the land [3]. 2025 Exploration Program - Graphano is set to begin its exploration campaigns this quarter, focusing on trenching, targeted sampling, and drilling to further delineate graphite mineralization across its properties. The company emphasizes responsible operations and ongoing engagement with local communities and stakeholders [4]. About Graphano Energy - Graphano Energy Ltd. is dedicated to evaluating, acquiring, and developing energy metals resources, transitioning from exploration to production [5]. Industry Context - Graphite is increasingly in demand as a critical mineral for green technologies, particularly in lithium batteries for electric vehicles and energy storage solutions. The Lac Aux Bouleaux property is strategically located near Canada's only producing graphite mine, highlighting its potential in meeting future graphite demands [6].

Company Overview - Graphano Energy Ltd. is an exploration and development company focused on evaluating, acquiring, and developing energy metals resources from exploration to production [4] - The company is involved in the graphite sector, which is essential for green and sustainable technologies, particularly in lithium batteries for electric vehicles and energy storage [5] Warrant Extension Announcement - Graphano Energy intends to extend the expiry date of 12,607,317 common share purchase warrants by an additional 12 months to August 27, 2026 [1] - The warrants were originally issued during private placements that closed on December 22, 2020, and April 19, 2021, and were set to expire on August 27, 2023, before being extended to August 27, 2025 [2] - This extension will bring the warrants to the maximum five-year term permitted under TSX Venture Exchange policies, with all other terms, including the exercise price of $0.52 per share, remaining unchanged [3]

Mineral Resources and Reserves - As of December 31, 2024, the company holds mineral leases covering a total area of 87,637 acres across 23 townships, primarily in the "Westvaco" and "Granger" blocks[289]. - The U.S. Geological Survey estimates that the trona deposits in the Green River Basin contain a cumulative resource of over 100 billion tons of trona[287]. - The company’s trona mining operations exploit three trona beds, with reserves contained in four trona beds[287]. - The mineral resources and reserves are classified according to subpart 1300 of Regulation S-K, which requires disclosure of both mineral resources and mineral reserves[279]. - The company’s mineral resources do not have demonstrated economic value unless classified as mineral reserves[280]. - The company has not filed a new technical report summary as there was no material change in mineral reserves or resources since the last report[281]. - Total measured and indicated mineral resources for the Granger Contiguous Leases remained stable at 762 million short tons with a grade of 85% trona as of December 31, 2024[317]. - Total measured and indicated mineral resources for the Westvaco Contiguous Leases also remained stable at 1,225 million short tons with a grade of 87% trona as of December 31, 2024[317]. - Total trona reserves decreased by approximately 7 million short tons, or 0.8%, from 865 million short tons in 2023 to 858 million short tons in 2024[321]. - Dry mining reserves at year-end 2024 were approximately 4 million short tons lower than 2023 due to extraction activities[321]. - Brine mining reserves at year-end 2024 decreased by approximately 3 million short tons, or 0.7%, compared to 2023[322]. Mining Operations and Facilities - The Westvaco site has been in continuous operation since 1947, initially established by Westvaco Chemical Corporation[297]. - The Westvaco facility has a processing capacity of 300,000 tons per year for refined soda ash, utilizing a sesquicarbonate process[297]. - The Granger site transitioned from underground mining to brine (solution) mining in 2005, enhancing operational efficiency[301]. - The Granger facility has been operational for over 35 years, with well-developed infrastructure including rail loadout and product storage facilities[302]. - The Westvaco site is strategically located 18 miles west of Green River, Wyoming, with access to Interstate 80 and the Union Pacific Railroad[296]. - The Granger site is accessible via a spur line connecting to the Union Pacific Railroad, facilitating transportation logistics[300]. - The area surrounding both sites provides a sufficient talent pool for staffing and management needs[296][300]. - The Westvaco site includes comprehensive infrastructure such as electrical generation, natural gas pipelines, and water distribution facilities[298]. - The Granger site has ample buildings for offices, labs, and maintenance shops, supporting operational needs[302]. - The acquisition of both facilities by Genesis Alkali Wyoming, LP occurred in September 2017, following their previous ownership by Tronox Alkali[297][301]. Production and Financial Performance - The total production from the trona property for the fiscal year ended December 31, 2024, was 4,405,000 tons, an increase of approximately 13.2% from 3,889,000 tons in 2023[316]. - The Granger Optimization Project achieved first production in Q4 2023, with an estimated incremental annual production capacity of 750,000 tons in 2024[316]. - The total book value of the Westvaco and Granger sites as of December 31, 2024, was approximately $1,657 million, down from $1,668 million in 2023[315]. - The Westvaco site has been profitably mining and processing trona ore for over 75 years, with ongoing capital expenditures to sustain operations[311]. - The Granger site has been profitably mining and processing trona ore for over 35 years, with capital expenditures focused on sustaining production and completing the Granger Optimization Project[314]. Financial Management and Risk - The company’s senior secured credit facility is guaranteed by substantially all restricted subsidiaries and secured by liens on a significant portion of its assets, including trona leases[290]. - As of December 31, 2024, the company had $291.0 million of debt outstanding under its senior secured credit facility, with a 10% change in the Term SOFR rate resulting in an immaterial impact on net loss[503]. - The economic analysis of mineral reserves is based on 2022 dollars with an annual inflation rate of 2.5% applied to revenue, operating costs, and capital spending[326]. - Cash production costs encompass dry mining, brine mining, processing, royalties, production taxes, insurance, and administrative costs, with historical averages used for operating costs[326]. - Capital expenditures are primarily for sustaining production, assumed to be similar to recent history with inflation aligned to product pricing escalation[326]. - The company utilizes various derivative instruments to manage commodity price risk, including crude oil, natural gas, and freight rates[497]. - The company has entered into derivative instruments that will settle between January 2025 and June 2025, related to its Alkali Business sold on February 28, 2025[497]. - The company manages risks of volatility in NaOH prices by indexing prices for NaHS sales to the market price for NaOH in most contracts[501]. Regulatory and Operational Compliance - Royalty payments for mineral leases range from 2% to 8% of the sales value of soda ash products[289]. - All leases and permits remain valid throughout the life of the operation, with new permits to be obtained for reserves outside current mining permit areas[326]. - The production schedule for mining and processing remaining reserves is based on existing production capacity[326]. - Future secondary brine mining recoveries are expected to be similar to those demonstrated in certain areas of the Westvaco mine[326].

Core Viewpoint - Genesis Energy (NYSE: GEL) is focused on long-term growth by building necessary midstream infrastructure, although the stock has remained relatively flat since the last analysis [1]. Company Analysis - The management of Genesis Energy is strategically investing in infrastructure to support several years of growth [1]. - The stock performance has been stable, indicating a potential opportunity for investors looking for long-term value [1]. Investment Perspective - The article reflects an investment philosophy that emphasizes finding bargains in various markets, particularly in emerging markets [1]. - The author expresses admiration for renowned investors and adopts an owner-mindset, focusing on individual company performance rather than macroeconomic factors [1].

Core Viewpoint - Graphano Energy Ltd. is advancing its graphite assets in Québec, Canada, amidst rising geopolitical uncertainty and the need for a resilient supply chain in critical minerals [2][6]. Group 1: Exploration and Resource Development - The company plans to publish an initial resource estimate for the Lac Aux Bouleaux and Standard Mine Projects in 2025, which will clarify the potential of these projects [3]. - Graphano is expanding its metallurgical work to optimize the production of high-quality graphite concentrate for battery applications and industrial uses [4]. Group 2: Strategic Initiatives - Graphano is actively seeking strategic partnerships to accelerate the development of its graphite assets, focusing on project financing and technical development [5]. - The company is committed to responsible and sustainable development while maintaining strong community relationships and regulatory compliance [8]. Group 3: Ongoing Activities - Graphano will continue basic prospecting activities in unexplored areas and has submitted applications for Authorization for Impact-Causing Exploration Work (ATI) as per Quebec's new permitting requirements [7]. - The company emphasizes the importance of domestic critical materials production for supporting global net-zero targets and aims to be a key supplier of clean graphite worldwide [6][11].

Financial Data and Key Metrics Changes - The company is approaching a significant inflection point where it will complete its major capital spending program and expects to generate cash from operations exceeding cash costs [8][19] - Adjusted EBITDA is projected to be around $700 million in 2025 and could reach $800 million in 2026, even without significant improvement in the soda ash business [40][41] Business Segment Data and Key Metrics Changes - The Offshore Pipeline Transportation segment is expected to see over 20% sequential growth in 2025 due to new contracted offshore volumes [11][13] - The Marine Transportation segment is anticipated to deliver record results in 2025, driven by increased operational days and steady to rising day rates [13][14] - The Soda and Sulfur Services segment is expected to maintain segment margins similar to 2024 due to ongoing market challenges [16][36] Market Data and Key Metrics Changes - The soda ash market is currently well-supplied, with mixed demand, particularly outside of China, which is expected to keep prices low in the short term [15][33] - Recent supply reductions in synthetic soda ash production are anticipated to help balance the market and potentially improve prices in 2025 and beyond [35][36] Company Strategy and Development Direction - The company is committed to not pursuing capital-intensive projects in the near future and plans to use excess cash flow to pay down debt and return capital to unitholders [18][19] - Future developments, including Shenandoah and Salamanca, are expected to significantly enhance cash flows and production capabilities [26][30] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term prospects of the company, focusing on growth driven by new offshore volumes and structural tailwinds in the marine segment [11][39] - The company expects to begin harvesting significant cash flows above operational costs starting later this year [39][41] Other Important Information - The company is experiencing mechanical issues affecting offshore production, but operators expect no long-term negative impacts, with production levels anticipated to return to previous rates [20][21] - The company is actively working on optimizing operating performance and reducing costs in response to current market conditions [32] Q&A Session Summary Question: Challenges faced by offshore producers and potential cash flow impacts - Management indicated that the guidance incorporates expected outcomes, estimating a cash flow impact of $5 million to $10 million if production remains offline throughout 2025 [46] Question: 2026 EBITDA forecast assumptions - The EBITDA forecast for 2026 is considered reasonably flat compared to 2025, with potential for upside depending on market conditions [48] Question: Capital allocation priorities and bank perspectives - Management clarified that banks treat the company's capital structure with 100% equity treatment, allowing flexibility in capital allocation as they approach their long-term leverage targets [53][55] Question: Timing and magnitude of potential distribution increases - The board will evaluate capital allocation at the appropriate time, with a focus on multiple uses of excess cash flow [58] Question: Contracting season and end market demand for soda ash - The contracting season went as expected, with management anticipating price increases in 2025 due to supply reductions and demand recovery [60][62]