Genesis Energy(GEL)2025-02-13 13:56Financial Performance - Genesis Energy reported a net loss of 12.0 million in Q4 2023[4]. - Revenues for the 2024 Quarter were 774.1 million in the 2023 Quarter, representing a decrease of approximately 6.7%[30]. - Operating income for the 2024 Quarter was 65.6 million in the 2023 Quarter[30]. - Net income attributable to Genesis Energy, L.P. for Q4 2024 was 11,950 thousand in Q4 2023[35]. - Adjusted EBITDA for Q4 2024 was 188,749 thousand in Q4 2023, reflecting a decrease of 14.9%[38]. - Interest expense for Q4 2024 increased to 60,606 thousand in Q4 2023, marking a rise of 24.5%[38]. - Available Cash before Reserves for Q4 2024 was 88,259 thousand in Q4 2023[38]. - Total cash flows from operating activities for Q4 2024 were 124,762 thousand in Q4 2023[40]. Segment Performance - Total segment margin for Q4 2024 was 209.4 million in Q4 2023, reflecting a decrease of approximately 18%[20]. - The offshore pipeline transportation segment margin decreased by 6.4 million, or 10%, in the 2024 Quarter compared to the 2023 Quarter, primarily due to lower export pricing and NaHS sales volumes[22]. - Marine transportation segment margin decreased by 0.2 million, or 3%, in the 2024 Quarter, mainly due to a decrease in volumes on onshore crude oil pipeline systems[24]. - Segment Margin for Q4 2024 was 209,418 thousand in Q4 2023[35]. Future Outlook - Genesis Energy expects to achieve cash flow positivity in the second half of 2025 as capital-intensive projects are completed[4]. - The company anticipates an Adjusted EBITDA of around 800 million for 2026, assuming no significant improvement in the soda ash business[19]. - The new Shenandoah and Salamanca developments are expected to add upwards of 200,000 barrels per day of incremental production capacity, with first production scheduled for late Q2 2025[7]. - The soda ash market is expected to remain challenging through at least the first half of 2025, with prices under pressure due to oversupply and weak global demand[8]. Impairment and Expenses - Impairment expense of 8,698 thousand, a decrease from 44.2 million, up from 43,003 thousand, with no impairment recorded in Q4 2023[35]. Cash Flow and Capital Expenditures - The company’s ability to generate cash is crucial for meeting non-discretionary cash requirements, including maintenance capital expenditures[59]. - The transition to discretionary maintenance capital expenditures may lead to increased operating expenses if expenditures are deferred[53]. - Maintenance capital expenditures have shifted from being predominantly non-discretionary to a significant portion being discretionary since 2014, impacting the analysis of Available Cash before Reserves[53]. - The maintenance capital utilized measure reflects only expenditures incurred since December 31, 2013, highlighting a shift in financial reporting practices[56]. - The maintenance capital utilized measure is defined as the portion of previously incurred maintenance capital expenditures utilized during the quarter, reflecting a more accurate assessment of cash availability[55]. Market Conditions - The average daily utilization percentage for the inland fleet was 96.7% in the 2024 Quarter, down from 100.0% in the 2023 Quarter[32]. - Soda ash volumes sold increased to 993,237 short tons in the 2024 Quarter, up from 901,874 short tons in the 2023 Quarter, reflecting a growth of approximately 10.1%[32]. - Unrealized losses on derivative transactions for the year ended December 31, 2023, amounted to $36,688, indicating volatility in financial results[58].