Genesis Energy(GEL) - 2025 Q3 - Quarterly Results

Financial Performance - Net Income attributable to Genesis Energy, L.P. for Q3 2025 was $9.2 million, a significant improvement from a Net Loss of $17.2 million in Q3 2024[4] - Revenues for the three months ended September 30, 2025, were $414,001,000, an increase from $397,291,000 in the same period of 2024, representing a growth of approximately 1.8%[29] - Operating income for the three months ended September 30, 2025, was $78,591,000, compared to $48,577,000 in 2024, reflecting a significant increase of 62%[29] - Net income attributable to Genesis Energy, L.P. for the three months ended September 30, 2025, was $9,207,000, a recovery from a net loss of $17,177,000 in the same period of 2024[29] - Total segment margin for the three months ended September 30, 2025, was $146,576,000, an increase from $121,979,000 in the same period of 2024, representing a growth of 20.1%[33] Cash Flow and Debt Management - Cash Flows from Operating Activities for Q3 2025 were $70.3 million, down from $87.3 million in Q3 2024[4] - Total cash flows from operating activities for Q3 2025 were $70.252 million, down from $87.324 million in Q3 2024, a decline of 19.5%[37] - Available Cash before Reserves for Q3 2025 was $35.482 million, an increase of 44.7% from $24.490 million in Q3 2024[35] - Adjusted Debt as of September 30, 2025, was $3.064 billion, with an Adjusted Debt-to-Adjusted Consolidated EBITDA ratio of 5.41X[41] - The company is focused on reducing debt and evaluating increases in quarterly distributions to common unitholders as financial flexibility improves[7] Segment Performance - Total Segment Margin for Q3 2025 was $146.6 million, compared to $121.98 million in Q3 2024, reflecting a 20% year-over-year increase[20] - Offshore pipeline transportation Segment Margin increased by $29.2 million, or 40%, from Q3 2024, driven by minimum volume commitments and increased throughput[20] - The marine transportation segment experienced a decrease in Segment Margin of $5.5 million, or 18%, due to lower utilization rates and market disruptions[22] - Onshore transportation and services Segment Margin increased by $0.9 million, or 5%, primarily due to higher throughput volumes in Texas[23] Production and Operational Metrics - The Shenandoah floating production system achieved a targeted production rate of 100 kbd within 75 days of startup, with Salamanca expected to ramp up to approximately 40 kbd[3] - Average barrels per day for the CHOPS pipeline increased to 360,925 in Q3 2025 from 304,198 in Q3 2024, marking a growth of 18.6%[31] - The average utilization percentage for inland barges was 91.2% in Q3 2025, down from 99.4% in Q3 2024, indicating a decrease in operational efficiency[31] - The average daily volumes for crude oil product sales decreased to 18,327 barrels in Q3 2025 from 18,978 barrels in Q3 2024, a decline of 3.4%[31] Capital Expenditures and Maintenance - Maintenance capital utilized in Q3 2025 was $14.900 million, compared to $18.000 million in Q3 2024, reflecting a decrease of 17.7%[36] - Maintenance capital expenditures have shifted from being primarily non-discretionary and related to pipeline assets to being more discretionary and potentially material, particularly for marine vessels and trucks[53] - The company has developed a maintenance capital utilized measure to better assess Available Cash before Reserves, reflecting expenditures incurred since December 31, 2013[55] Future Outlook and Risks - Genesis Energy expects full-year 2025 Adjusted EBITDA to be slightly below the previously communicated guidance range of $545 to $575 million[16] - Future outlook includes potential impacts from geopolitical tensions and market conditions affecting demand and pricing for services[43] Adjusted EBITDA and Financial Definitions - Adjusted EBITDA for Q3 2025 was $132.0 million, with a trailing twelve-month Adjusted Consolidated EBITDA of $566.6 million[4] - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and certain non-cash items, providing insight into core operating results[57] - Consolidated EBITDA for the last twelve months (LTM) as of September 30, 2025, was $566.625 million[41] Discontinued Operations - The company reported a net loss from discontinued operations of $4,715,000 for the three months ended September 30, 2025[29] - The company reported a loss from disposal of discontinued operations amounting to $432.193 million for the nine months ended September 30, 2025[35] Interest Expense - Interest expense for Q3 2025 was $66.407 million, slightly up from $65.662 million in Q3 2024[35]