Genesis Energy(GEL)2024-10-31 12:53Financial Performance - Net Loss Attributable to Genesis Energy, L.P. of $17.2 million for Q3 2024 compared to Net Income of $58.1 million for Q3 2023[1] - Net Loss Attributable to Genesis Energy, L.P. was $17.2 million in the 2024 Quarter compared to Net Income of $58.1 million in the 2023 Quarter[28] - Net income (loss) attributable to Genesis Energy, L.P. was $(17.2) million for Q3 2024, compared to $58.1 million in Q3 2023[39] - Adjusted EBITDA for Q3 2024 was $136.7 million, down from $190.6 million in Q3 2023[41] - Segment Margin for Q3 2024 was $151.1 million, compared to $207.9 million in Q3 2023[39] Cash Flow and Liquidity - Cash Flows from Operating Activities of $87.3 million for Q3 2024 compared to $141.0 million for Q3 2023[2] - Available Cash before Reserves to common unitholders of $24.5 million for Q3 2024, providing 1.21X coverage for the quarterly distribution of $0.165 per common unit[3] - Available Cash before Reserves for Q3 2024 was $24.5 million, significantly lower than $89.0 million in Q3 2023[41] - Cash flows from operating activities for Q3 2024 were $87.3 million, down from $141.0 million in Q3 2023[45] Segment Performance - Offshore pipeline transportation Segment Margin decreased by $37.1 million (34%) in Q3 2024 compared to Q3 2023 due to economic step-downs, producer underperformance, and increased operating costs[24] - Soda and sulfur services Segment Margin decreased by $23.8 million (38%) in the 2024 Quarter due to lower export pricing and sales volumes in the Alkali Business, partially offset by higher soda ash sales volumes[25] - Marine transportation Segment Margin increased by $3.9 million (15%) in the 2024 Quarter due to higher day rates in inland and offshore businesses[26] - Onshore facilities and transportation Segment Margin increased by $0.2 million (2%) in the 2024 Quarter due to higher rail unload volumes at the Scenic Station facility[27] Soda Ash Business - Soda ash business missed more than 300,000 tons from the original forecasted total sales volumes for 2024 due to operational challenges at the Westvaco facility[8] - Global soda ash market faces challenges with increased export availability from China, leading to lower prices in Q4 2024[17] - Soda Ash volumes sold increased to 995,856 short tons in the 2024 Quarter from 867,319 short tons in the 2023 Quarter[35] Offshore and Marine Operations - Offshore construction projects remain on schedule, with Shenandoah and Salamanca developments expected to begin in Q2 2025, adding nearly 200,000 barrels of oil per day of incremental production handling capacity[15] - Marine transportation segment operates with utilization rates at or near 100% of available capacity, with day rates expected to increase further[21] - Offshore crude oil pipelines total volumes decreased to 624,551 barrels/day in the 2024 Quarter from 681,725 barrels/day in the 2023 Quarter[35] - Offshore Fleet Utilization Percentage decreased to 97.4% in the 2024 Quarter from 98.5% in the 2023 Quarter[35] Onshore Operations - Onshore crude oil pipelines total volumes decreased to 124,470 barrels/day in the 2024 Quarter from 138,364 barrels/day in the 2023 Quarter[35] - Crude oil and petroleum products sales decreased to 18,978 barrels/day in the 2024 Quarter from 23,703 barrels/day in the 2023 Quarter[35] Financial Position and Debt - Adjusted Consolidated EBITDA of $741.7 million for the trailing twelve months ended September 30, 2024, with a bank leverage ratio of 4.84X[4] - Adjusted Debt-to-Adjusted Consolidated EBITDA ratio stood at 4.84X as of September 30, 2024[47] - Senior unsecured notes increased to $3,419.0 million as of September 30, 2024, up from $3,063.0 million at the end of 2023[37] - Total current liabilities decreased to $897.0 million as of September 30, 2024, from $967.4 million at the end of 2023[37] Capital Expenditures - Maintenance capital expenditures for Q3 2024 were $55.0 million, up from $33.6 million in Q3 2023[43] - Maintenance capital expenditures are categorized as discretionary or non-discretionary, with non-discretionary expenditures being necessary for safe and reliable operations[54][55] - The company introduced a maintenance capital utilized measure in 2014 to better reflect non-discretionary maintenance capital expenditures[59] Non-GAAP Measures - The company uses non-GAAP measures such as Adjusted EBITDA and Available Cash before Reserves to assess financial performance, with reconciliations provided to GAAP measures[49] - Available Cash before Reserves is defined as Adjusted EBITDA adjusted for maintenance capital utilized, interest expense, cash tax expense, and cash distributions to Class A convertible preferred unitholders[51] - Adjusted EBITDA is used to evaluate financial performance without regard to financing methods, capital structures, or historical cost basis[61] - The reconciliation of Net income to Adjusted EBITDA includes Select Items such as unrealized losses on derivative transactions and adjustments for equity investees[62] - Segment Margin is defined as revenues less product costs, operating expenses, and segment general and administrative expenses, adjusted for Select Items[64] Future Outlook - Genesis Energy expects Adjusted EBITDA growth starting in 2025, with minimal future growth capital expenditures and no near-term unsecured debt maturities[10]