NYSE$GEL

Genesis Energy LP · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter results, demonstrating resilient earnings power across diversified businesses.

Genesis Energy reported a strong third quarter, exceeding internal expectations with robust volumes in the offshore pipeline transportation segment and solid performance in the marine transportation segment, while the soda and sulfur services segment performed in line with expectations. The company's leverage ratio ended the quarter at 3.92 times, and they anticipate full-year results to be at or above the midpoint of their revised guidance range.

  • Net Income Attributable to Genesis Energy, L.P. was $58.1 million, a significant increase compared to $3.4 million in the same period of 2022.
  • Cash Flows from Operating Activities reached $141.0 million, up from $94.3 million in the third quarter of 2022.
  • Available Cash before Reserves to common unitholders was $89.0 million, providing 4.84X coverage for the quarterly distribution.
  • Total Segment Margin amounted to $207.9 million for the third quarter of 2023.

Headline financials

Total Revenue

$808M

Previous: $721M+12.0%
EPS (adj)

$0.29

Previous: -$0.12+341.7%
Adjusted EBITDA

$191M

No prior period
Available Cash Before Reserves

$89M

No prior period
Free Cash Flow

$58.1M

Previous: $3.39M+1615.5%
Net Income

$58.1M

Previous: $3.39M+1615.5%
Operating Income

$112M

Previous: $75.1M+48.7%
Gross Profit

-$100K

Previous: -$2.4M+95.8%
Cash & Equivalents

$21.1M

Previous: $5.85M+260.8%
Total Assets

$6.94B

Previous: $6.17B+12.5%
Stock-Based Comp

$5.58M

Previous: $4.19M+33.1%

Revenue & EPS history

Genesis Energy · Revenue · Quarterly

$808M

Q3 2023+12%vs Q3 2022
Beat estimate in 6 of 7 quarters(86%)
ActualEstimate

Forward guidance

Genesis Energy anticipates continued volume growth offshore and a structurally tight Jones Act market. Potential weakness in soda ash prices is expected to be partially offset by new volumes from the Granger expansion project. The long-term outlook remains unchanged, with increased cash flow expected upon completion of growth capital projects.

Tailwinds

  • Continued volume growth offshore from additional wells coming online at Argos.
  • Additional volumes from new sub-sea tiebacks and continuing in-field drilling.
  • Jones Act market expected to remain structurally tight, driving marginally increasing day-rates.
  • New long-term contract for the American Phoenix commencing in mid-January.
  • New volumes from the Granger expansion project and a corresponding reduction in average operating cost per ton.

Headwinds

  • Potential weakness in soda ash prices, primarily in export markets.
  • Slowing global demand and a slower than anticipated re-opening of China’s economy impacting soda ash pricing.
  • Early signals of a slowdown in the domestic market and certain end markets in Europe.
  • Timing differences in growth capital expenditures between 2023 and 2024.
  • Continued increase in new production from Inner Mongolia affecting customer behavior and soda ash prices.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.1%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+4.5%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+19.2%

Q1 2020

Best reaction

-14.3%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-4.1%-5.0%
Q4 2025-1.7%+1.6%+2.1%
Q3 2025+1.1%-1.9%-2.4%
Q1 2025+0.3%+0.3%+9.3%
Q4 2024+14.1%+18.2%+27.3%
Q3 2024-14.3%-13.0%-7.1%
Q2 2024-4.2%-4.7%-0.6%
Q1 2024+8.5%+11.8%+6.4%
Q4 2023+2.3%+2.0%-3.8%
Q3 2023+3.8%+0.5%+10.9%
Q2 2023-11.8%-6.2%+10.3%
Q1 2023-4.8%-7.4%-4.8%
Q4 2022+4.2%+6.4%-1.7%
Q3 2022+7.5%+6.1%-5.6%
Q2 2022+14.8%+17.8%+40.9%
Q1 2022+6.2%-1.3%+9.1%
Q4 2021-3.2%-4.6%+1.9%
Q3 2021+6.2%+21.6%-0.7%
Q2 2021-12.8%-19.2%-19.7%
Q1 2021+0.9%+3.7%+11.9%
Q4 2020+3.7%+7.3%+30.0%
Q3 2020+6.5%+37.5%+87.8%
Q2 2020-9.4%-2.4%-20.8%
Q1 2020+19.2%+24.0%+112.8%
Q4 2019-13.7%-25.5%-76.2%
Q3 2019-3.2%-5.5%-9.4%
Q2 2019-6.3%-6.7%-3.4%
Q1 2019-1.1%-3.3%-0.5%
Q4 2018-3.4%+0.0%+2.9%
Q3 2018+0.6%+4.5%-0.3%
Q2 2018-5.6%-6.0%-2.4%
Q1 2018+2.5%+3.0%+10.4%
Q4 2017-2.1%-1.3%-3.9%
Q3 2017+0.5%-0.9%-4.3%
Q2 2017-1.2%-1.7%-11.8%
Q1 2017-0.7%-0.9%-0.9%
Q4 2016-7.5%-6.8%-13.6%
Q3 2016-3.9%-3.9%-1.2%
Q2 2016-2.9%-2.0%+1.1%
Q1 2016+1.1%
Q4 2015+0.9%
Q3 2015+1.8%
Q2 2015-2.0%
Q1 2015+0.1%
Q4 2014+2.1%
Q3 2014+7.5%
Q2 2014-1.1%
Q1 2014+0.4%
Q4 2013+1.9%
Q3 2013-0.8%
Q2 2013-1.2%
Q1 2013+0.4%
Q4 2012+2.8%
Q3 2012+3.0%
Q2 2012+1.7%
Q1 2012-0.3%
Q4 2011+0.6%
Q3 2011-2.2%
Q2 2011+3.8%
Q1 2011-3.6%
Q4 2010+2.6%
Q3 2010-4.3%
Q2 2010+0.9%
Q1 2010+5.5%

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