Genesis Energy, L.P. Q2 FY2025 earnings call

• Successful commissioning and start-up of the Shenandoah production facility with 120,000 bbl/day nameplate capacity, which delivered first oil last week. • Salamanca development on track to achieve first oil by end of third quarter. • Offshore Pipeline Transportation segment margin expected to increase due to new developments like Shenandoah and Salamanca. • Expectation of generating increasing free cash flow starting in the third quarter, with financial flexibility to create long-term value. • Each segment detailed: Offshore Pipeline Transportation saw volume increase as some wells came back online; Marine Transportation had constructive inland demand though blue water fleet had softened demand; Onshore Transportation and Services performed in line with expectations but 2025 guidance adjusted near low end due to delays.

Genesis Energy L.P. has 3 business segments. The Offshore Pipeline Transportation segment saw sequential volume increase as some offshore wells came back online. While some high-margin wells remain offline, confidence exists in producers restoring outages. The Marine Transportation segment performed in line with expectations; inland fleet had constructive demand, though blue water fleet saw softened demand. The Onshore Transportation and Services segment performed in line with expectations, but 2025 adjusted EBITDA is expected near the low end of previous guidance due to delays in producer remediation and first production from Shenandoah and Salamanca.

• Second quarter was generally in line with expectations. • Offshore Pipeline Transportation segment margin expected to increase driven by new developments like Shenandoah and Salamanca. • Anticipated to generate increasing free cash flow in excess of cash cost starting in the third quarter. • 2025 adjusted EBITDA expected near the low end of previous guidance range due to delays in producer remediation and first production from Shenandoah and Salamanca.

• Delays in producer remediation efforts and first production from Shenandoah and Salamanca. • Market fluctuations in Marine Transportation, including equipment relocation from West Coast affecting day rates in the blue water fleet, causing short-term sloppiness but no lasting impact on long-term fundamentals.

Q: What's the timing confidence for Salamanca's initial production?

A: Based on recent conversations, confident initial production will be by end of third quarter with no significant disruptive weather on horizon.

Q: Should we think capital return starts in 2026?

A: Focus to pay revolving balance to 0 by end of 2025, and may have flexibility for distribution in 2025 fourth quarter or 2026.

Q: Any new commercial opportunities?

A: No identified additional capital expenditures; focus on ramping up existing offshore expansion projects.

Q: Thoughts on Marine Transportation segment trends and day rates?

A: Inland barge utilization high, blue water fleet has equipment relocation causing short-term issues but long-term fundamentals constructive.

Q: Guidance for 2025 adjusted EBITDA?

A: 2025 adjusted EBITDA expected near low end of previous range due to delays, but early analysis shows wells may meet or exceed expectations