GEL · Genesis Energy, L.P.

Genesis Energy, L.P. delivered a significant turnaround in Q1 2026, swinging to net income of $6.8 million from a $469.1 million loss in the prior year, supported by robust cash flows from operations at $81.7 million versus $24.8 million last year. The standout performer was the offshore pipeline transportation segment, where Segment Margin surged 40% to $107.1 million, fueled by new production from the Shenandoah FPU (started July 2025) and Salamanca FPU (started September 2025), tying into company-owned pipelines like SYNC, CHOPS, SEKCO, and Poseidon. This growth offset impacts from a prolonged turnaround at a key third-party platform and initial declines at Shenandoah, though management remains optimistic about long-term recovery with planned wells, sub-sea tie-backs, and FPU capacity expansion to 140kbd. Marine transportation saw a 7% dip to $27.9 million due to lower day rates, but full fleet capacity returns post-drydockings in Q3. Onshore transportation and services hit $21.4 million, exceeding expectations amid strong throughput. Sulfur services faced headwinds from refinery issues but positions for recovery with heavy crude processing. Available Cash before Reserves of $43.8 million covered the $0.18 common unit distribution 1.99X after $13.6 million preferred payouts. Balance sheet moves included repurchasing $135 million of high-cost Series A preferred (outstanding now $394 million), issuing $750 million 6.75% notes due 2034 to redeem $679 million 7.75% notes due 2028, and expanding/extending the revolver to $900 million maturing 2031, cutting financing costs by $12 million annually. CEO Grant Sims noted Q1 slightly below expectations due to timing and drydockings but affirmed full-year Adjusted EBITDA near the midpoint of prior guidance ($500-510 million normalized 2025 baseline +15-20%), with constructive offshore outlook.