Genesis Energy(GEL) - 2025 Q4 - Annual Results

Financial Performance - Net Income attributable to Genesis Energy, L.P. for Q4 2025 was $19.9 million, a significant improvement from a net loss of $49.4 million in Q4 2024[5] - Net income from continuing operations for the 2025 Quarter was $34.3 million, a significant improvement from a net loss of $53.6 million in the 2024 Quarter[26] - For the three months ended December 31, 2025, Genesis Energy reported a net income of $19,871,000, compared to a net loss of $49,379,000 for the same period in 2024[37] - Total revenues for the 2025 Quarter were $440.8 million, up from $398.9 million in the 2024 Quarter[31] - Operating income for the 2025 Quarter was $89.9 million, compared to $13.5 million in the 2024 Quarter[31] Cash Flow and Expenditures - Cash Flows from Operating Activities for Q4 2025 were $110.8 million, compared to $74.0 million in Q4 2024, reflecting a 49.3% increase[5] - Cash flows from operating activities for the year ended December 31, 2025, were $252,826,000, a decrease of 35.5% from $391,934,000 in 2024[39] - Maintenance capital expenditures for the year ended December 31, 2025, were $71.5 million, down from $94.6 million in 2024[38] - Corporate general and administrative expenses increased to $89,495,000 for the year ended December 31, 2025, compared to $57,285,000 in 2024, reflecting a 56.3% rise[35] - Interest expense for the year ended December 31, 2025, was $264,729,000, slightly up from $261,875,000 in 2024[37] Segment Performance - Total Segment Margin for Q4 2025 reached $174.0 million, up from $121.98 million in Q4 2024, representing a 42.5% increase[22] - Offshore pipeline transportation Segment Margin increased by $43.5 million, or 57%, in Q4 2025 compared to Q4 2024, driven by higher volumes from the Shenandoah and Salamanca production facilities[22] - Marine transportation segment margin for the 2025 Quarter decreased by $0.7 million, or 2%, compared to the 2024 Quarter, impacted by a decline in Midwest refinery demand for black oil equipment[24] - Onshore transportation and services segment margin for the 2025 Quarter increased by $9.3 million, or 65%, primarily due to increased activity in Baton Rouge assets and higher volumes on the Texas pipeline system[25] - The total segment margin for the year ended December 31, 2025, was $577,853,000, an increase of 9.2% from $529,142,000 in 2024[35] Future Outlook - Genesis Energy expects a sequential growth in Adjusted EBITDA of approximately 15% to 20% in 2026 compared to normalized 2025 figures[9] - The marine transportation segment is expected to benefit from increased demand for inland barges due to wider heavy/sour differentials and potential crude imports into the Gulf Coast[16] - Significant drilling activity is anticipated around production facilities attached to Genesis Energy's infrastructure, with plans for additional wells at Salamanca and Shenandoah[13] - Genesis Energy anticipates continued challenges due to market conditions, including potential impacts from geopolitical tensions and commodity price fluctuations[45] Adjusted Metrics - Adjusted EBITDA for the full year 2025 was approximately $544 million, aligning with the low end of the previous guidance range of $545 to $575 million[8] - Adjusted EBITDA for the year ended December 31, 2025, was $544,324,000, down 10.7% from $609,262,000 in 2024[37] - The adjusted debt-to-adjusted consolidated EBITDA ratio was reported at 5.12x as of December 31, 2025[44] - 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[50] - The maintenance capital utilized measure is a proxy for non-discretionary maintenance capital expenditures, reflecting the relationship among maintenance capital expenditures, operating expenses, and depreciation[58] Asset and Liability Management - Outstanding borrowings under the senior secured revolving credit facility were reduced to approximately $6.4 million at year-end 2025, effectively resulting in zero net borrowings[4] - Total assets decreased to $4.86 billion as of December 31, 2025, from $7.04 billion as of December 31, 2024[34] - Total liabilities decreased to $4.15 billion as of December 31, 2025, from $5.52 billion as of December 31, 2024[34] Definitions and Clarifications - Adjusted EBITDA is defined as net income attributable to Genesis Energy, L.P. before interest, taxes, depreciation, and amortization, adjusted for select non-cash items[59] - Segment Margin is evaluated based on revenues less product costs, operating expenses, and segment general and administrative expenses, plus or minus applicable select items from continuing operations[63] - Select Items in the financial statements include unrealized losses on derivative transactions and adjustments regarding equity investees, impacting the reconciliation of net income to Adjusted EBITDA[60] - The company emphasizes the importance of understanding select items for evaluating core operating results, even if they are not necessarily non-recurring[63] - The financial performance of assets is assessed without regard to financing methods or capital structures, focusing on cash generation capabilities[62]