Genesis Energy, L.P. Q4 FY2025 earnings call

• Business segments: Offshore pipeline transportation driven by legacy, Shenandoah, and Salamanca; marine transportation normalized and with future outlook; onshore services with throughput growth and refinery services outlook.
• Capital allocation: Increased quarterly common unit distribution by 9.1%, bought back $25M of corporate preferred units, target leverage ratio around 4.
• Industry outlook: BOEM lease sale reinforces long-term interest in Central Gulf of Mexico, positioning Genesis uniquely in crude oil pipeline logistics.

Genesis Energy, L.P. has three business segments. The offshore pipeline transportation segment saw strong sequential growth with segment margin increasing approximately 19% and total volumes up ~16% compared to the third quarter, marking the third consecutive quarter of sequential improvement. From Q1 2025, segment margin increased by roughly 57% with total volumes across both systems growing approximately 28%, driven by steady volumes from legacy fields, Shenandoah, and Salamanca. The marine transportation segment returned to a more normalized level of operating performance as refinery customers increased runs of heavy crude oil, normalizing brown water fleet demand, while bluewater fleet conditions stabilized. 2026 is expected to be a higher maintenance year with dry dockings. The onshore transportation and services segment performed in line with expectations, with throughput volumes increasing at terminals/pipelines, and refinery services expecting improvement as heavy sours return to the Gulf Coast.

Genesis expects 2026 adjusted EBITDA to be +15% to 20% over 2025 normalized $500M-$510M. Accounting for hurricane disruptions and marine maintenance, but expects to exceed the range. 2027 is expected to be meaningfully stronger based on producer development plans.

• Uncontrolled customer operations, drilling schedules, and weather affecting turnarounds. - Marine dry docking schedules impacting vessel availability. - Commodity price volatility potentially impacting offshore development activity.

Q: Can you give a rough ballpark for EBITDA deduct for hurricane disruptions and marine maintenance?

A: Assuming 10 days’ downtime for offshore and $5M-$10M impact from marine dry docking.

Q: Reminding on leverage ratio and distribution growth cadence?

A: Long-term leverage target around 4, distribution growth evaluated quarterly by the Board.

Q: Thoughts on M&A and customer consolidation impact?

A: Positive read-through from Harbor Energy acquiring LLOG, expecting production doubling and positive impact.

Q: Detail on guidance embedding and dry docking impact?

A: Comfortable with 15%-20% guidance, dry docking expected to increase maintenance CapEx by $15M-$20M.

Q: Incremental inland barge utilization from heavier crude runs?

A: Anticipate higher utilization and day rate increases as more heavies are run.