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Genesis Energy (GEL)

Genesis Energy, L.P. owns and operates crude oil gathering, marketing, and pipeline operations. The Company purchases and aggregates crude oil at the wellhead and at pipeline and terminal facilities for resale to refineries and other customers. Genesis Energy operates principally in Texas, Louisiana, New Mexico, Florida, Mississippi, Kansas, and Oklahoma.

Company profile

Ticker
GEL
Exchange
CEO
Grant Sims
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
AP MARINE, LLC • BR PORT SERVICES, LLC • CAMERON HIGHWAY OIL PIPELINE COMPANY, LLC • CAMERON HIGHWAY PIPELINE GP, L.L.C. • CAMERON HIGHWAY PIPELINE I, L.P. • CASPER EXPRESS PIPELINE, LLC • DAVISON PETROLEUM SUPPLY, LLC • DAVISON TRANSPORTATION SERVICES, INC. • DAVISON TRANSPORTATION SERVICES, LLC • DEEPWATER GATEWAY, L.L.C. ...
IRS number
760513049

GEL stock data

Analyst ratings and price targets

Last 3 months

Calendar

4 May 22
2 Jul 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 14.55M 14.55M 14.55M 14.55M 14.55M 14.55M
Cash burn (monthly) 3.48M 1.6M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 10.67M 4.92M n/a n/a n/a n/a
Cash remaining 3.88M 9.64M n/a n/a n/a n/a
Runway (months of cash) 1.1 6.0 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Apr 22 Sharilyn S Gasaway Common Units - Class A Sale back to company Dispose D No No 12.04 1,203 14.48K 288,364
1 Apr 22 Sharilyn S Gasaway Common Units - Class A Option exercise Acquire M No No 0 1,203 0 289,567
1 Apr 22 Sharilyn S Gasaway Phantom Units Common Units - Class A Grant Acquire A No No 0 2,392 0 39,410
1 Apr 22 Sharilyn S Gasaway Phantom Units Common Units - Class A Option exercise Dispose M No No 0 1,203 0 37,018
1 Apr 22 Taylor Jack T Common Units - Class A Sale back to company Dispose D No No 12.04 1,096 13.2K 32,865
1 Apr 22 Taylor Jack T Common Units - Class A Option exercise Acquire M No No 0 1,096 0 33,961
1 Apr 22 Taylor Jack T Phantom Units Common Units - Class A Grant Acquire A No No 0 2,179 0 35,907
1 Apr 22 Taylor Jack T Phantom Units Common Units - Class A Option exercise Dispose M No No 0 1,096 0 33,728
1 Apr 22 James E Davison Common Units - Class A Sale back to company Dispose D No No 12.04 1,069 12.87K 2,657,890
1 Apr 22 James E Davison Common Units - Class A Option exercise Acquire M No No 0 1,069 0 2,658,959
35.2% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 34 40 -15.0%
Opened positions 1 4 -75.0%
Closed positions 7 8 -12.5%
Increased positions 10 6 +66.7%
Reduced positions 7 16 -56.3%
13F shares Current Prev Q Change
Total value 759.95M 2.74B -72.2%
Total shares 43.09M 76.43M -43.6%
Total puts 0 0
Total calls 37.8K 66K -42.7%
Total put/call ratio
Largest owners Shares Value Change
KKR Group Partnership 12.67M $275.41M 0.0%
Blackstone Holdings II 12.67M $275.41M 0.0%
JPM JPMorgan Chase & Co. 5.57M $65.19M -40.4%
Tortoise Capital Advisors, L.L.C. 5.22M $61.18M +7.5%
Chickasaw Capital Management 4.07M $47.67M -5.0%
GS Goldman Sachs 1.66M $19.42M -38.9%
Argent Trust 332.13K $3.89M 0.0%
TCBI Texas Capital Bancshares 300K $3.51M 0.0%
BIGTQ Pinnacle 148.73K $1.74M 0.0%
Cincinnati Insurance 96.2K $1.13M +27.9%
Largest transactions Shares Bought/sold Change
IVZ Invesco 0 -14.25M EXIT
Alps Advisors 0 -14.19M EXIT
JPM JPMorgan Chase & Co. 5.57M -3.77M -40.4%
GS Goldman Sachs 1.66M -1.06M -38.9%
Tortoise Capital Advisors, L.L.C. 5.22M +366.72K +7.5%
Chickasaw Capital Management 4.07M -213.76K -5.0%
BNP Paribas Arbitrage 938 -152.15K -99.4%
Iridian Asset Management 0 -82.6K EXIT
Fort Washington Investment Advisors 26.3K -21.85K -45.4%
Cincinnati Insurance 96.2K +20.96K +27.9%

Financial report summary

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Risks
  • We may not be able to fully execute our growth strategy due to various factors, such as unreceptive capital markets and/or excessive competition for acquisitions.
  • We may not have sufficient cash from operations to pay the current level of quarterly distributions following the establishment of cash reserves and payment of fees and expenses.
  • Our profitability and cash flow are dependent on our ability to increase or, at a minimum, maintain our current commodity (crude oil, natural gas, refined products, soda ash, NaHS and caustic soda) volumes, which often depend on actions and commitments by parties beyond our control.
  • Our sulfur removal operations are dependent upon the supply of caustic soda, the demand for NaHS and the continuing operations of the refiners for whom we process sour natural gas.
  • Our crude oil and natural gas transportation operations are dependent upon demand for crude oil by refiners, primarily in the Midwest and Gulf Coast, and the demand for natural gas.
  • We face intense competition to obtain crude oil, natural gas and refined products volumes.
  • Many of our crude oil and natural gas transportation customers are producers whose drilling activity levels and spending for transportation have historically been, and may continue to be, impacted by volatility in the commodity markets.
  • Fluctuations in prices for crude oil, refined petroleum products, NaHS, soda ash and caustic soda could adversely affect our business.
  • Our use of derivative financial instruments could result in financial losses.
  • Non-utilization of certain assets could significantly reduce our profitability due to the fixed costs incurred with respect to such assets.
  • We cannot cause our joint ventures and certain of our unrestricted subsidiaries to take or not to take certain actions unless some or all of the joint venture or third party participants agree.
  • We may not be able to renew our marine transportation time charters and contracts when they expire at favorable rates, for extended periods, or at all, which may increase our exposure to the spot market and lead to lower revenues and increased expenses.
  • A decrease in the cost of importing refined petroleum products could cause demand for U.S. flag product carrier and barge capacity and charter rates to decline, which would decrease our revenues and our ability to pay cash distributions on our units.
  • We face periodic dry-docking costs for our vessels, which can be substantial.
  • The U.S. inland waterway infrastructure is aging and may result in increased costs and disruptions to our marine transportation segment.
  • Failure to obtain or renew surety bonds on acceptable terms could affect our ability to secure reclamation obligations and, therefore, our ability to conduct our mining operations.
  • Our indebtedness could adversely restrict our ability to operate, affect our financial condition, prevent us from complying with requirements under our debt instruments and prevent us from paying cash distributions to our unitholders.
  • We may not be able to access adequate capital (debt and/or equity) on economically viable terms or any terms.
  • Our actual construction, development and acquisition costs could exceed our forecast, and our cash flow from construction and development projects may not be immediate.
  • Fluctuations in interest rates could adversely affect our business.
  • Changes in the method pursuant to which the London Interbank Offered Rate (“LIBOR”), or the replacement of LIBOR with an alternative reference rate, may adversely impact our business and results of operations.
  • Our operations are subject to federal, state and local environmental protection and safety laws and regulations.
  • Climate change legislation and regulatory initiatives may decrease demand for the products we store, transport and sell and increase our operating costs.
  • President Biden’s regulatory agenda, and a closely divided Congress, creates some regulatory uncertainty for the oil and natural gas industry. Changes in environmental laws could increase costs and harm our business, financial condition and results of operations.
  • We have reclamation and mine closing obligations. If the assumptions underlying our accruals are inaccurate, we could be required to expend greater amounts than anticipated.
  • Regulation of the rates, terms and conditions of services and a changing regulatory environment could affect our financial position, results of operations or cash flow.
  • Our business would be adversely affected if we failed to comply with the Jones Act foreign ownership provisions.
  • Our business would be adversely affected if the Jones Act provisions on coastwise trade or international trade agreements were modified or repealed or as a result of modifications to existing legislation or regulations governing the crude oil and natural gas industry in response to the recent lifting of the crude oil export ban and the Deepwater Horizon drilling rig incident in the U.S. Gulf of Mexico and subsequent crude oil spill.
  • OSHA’s emergency temporary standard (“ETS”) mandating either fully vaccination or weekly testing of employees could have a material adverse impact on our business and results of operations.
  • Individual members of the Davison family can exert significant influence over us and may have conflicts of interest with us and may be permitted to favor their interests to the detriment of our other unitholders.
  • Our Class B Common Units may be transferred to a third party without unitholder consent, which could affect our strategic direction.
  • Our general partner has a limited call right that may require unitholders to sell their units at an undesirable time or price.
  • The interruption of distributions to us from our subsidiaries and joint ventures could affect our ability to make payments on indebtedness or cash distributions to our unitholders.
  • We do not have the same flexibility as other types of organizations to accumulate cash and equity to protect against illiquidity in the future.
  • Unitholders may have liability to repay distributions that were wrongfully distributed to them.
  • Unitholder liability may not be limited if a court finds that unitholder action constitutes control of our business.
  • Our tax treatment depends on our status as a partnership for federal income tax purposes, as well as us not being subject to a material amount of entity-level taxation by individual states. If the IRS were to treat us as a corporation (for U.S. federal income tax purposes) or if we were to become subject to a material amount of entity-level taxation for state tax purposes, then our cash available for distribution to our unitholders would be substantially reduced.
  • The tax treatment of publicly traded partnerships or an investment in our units could be subject to potential legislative, judicial or administrative changes and differing interpretations, possibly on a retroactive basis.
  • A successful IRS contest of the federal income tax positions we take may adversely affect the market for our units, and the costs of any IRS contest would reduce our cash available for distribution to our unitholders and our general partner.
  • Our unitholders will be required to pay taxes on income (as well as deemed distributions, if any) from us even if they do not receive any cash distributions from us.
  • Tax gain or loss on the disposition of our units could be more or less than expected.
  • Unitholders may be subject to limitations on their ability to deduct interest expense by us.
  • Tax-exempt entities and non-U.S. persons face unique tax issues from owning our units that may result in adverse tax consequences to them.
  • We will treat each purchaser of our common units as having the same tax benefits without regard to the common units actually purchased. The IRS may challenge this treatment, which could adversely affect the value of our common units.
  • Our unitholders will likely be subject to state and local taxes in states where they do not live as a result of an investment in our units.
  • We have subsidiaries that are treated as corporations for federal income tax purposes and subject to corporate-level income taxes.
  • We generally prorate our items of income, gain, loss and deduction between transferors and transferees of our units each month based upon the ownership of our units on the first day of each month, instead of on the basis of the date a particular unit is transferred. The IRS may challenge this treatment, which could change the allocation of items of income, gain, loss and deduction among our unitholders.
  • A unitholder whose units are loaned to a “short seller” to cover a short sale of units may be considered as having disposed of those units. If so, such unitholder would no longer be treated for tax purposes as a partner with respect to those units during the period of the loan and may recognize gain or loss from the disposition.
  • The IRS could challenge our treatment of the holders of Class A Convertible Preferred Units as partners for tax purposes, and if such challenge were sustained, certain holders of Class A Convertible Preferred Units could be adversely impacted.
  • The amount that a Class A Convertible Preferred unitholder would receive upon liquidation may be less than the liquidation value of the Class A Convertible Preferred Units.
  • We are exposed to the credit risk of our customers in the ordinary course of our business activities.
  • A natural disaster, pandemic, epidemic, accident, terrorist attack or other interruption event could result in an economic slowdown, severe personal injury, property damage and/or environmental damage, which could curtail our operations or otherwise adversely affect our assets and cash flow.
  • The widespread outbreak of an illness, pandemic (like Covid-19) or any other public health crisis may have material adverse effects on our business, financial position, results of operations and/or cash flows.
  • Compliance with and changes in cybersecurity requirements have a cost impact on our business, and failure to comply with such laws and regulations could have an impact on our assets, costs, revenue generation and growth opportunities.
  • Our business could be negatively impacted by security threats, including cybersecurity threats, and related disruptions.
  • Our significant unitholders may sell units or other limited partner interests in the trading market, which could reduce the market price of our common units.
  • We may issue additional common units without unitholders’ approval, which would dilute their ownership interests.
Management Discussion
  • Our revenues for the 2022 Quarter increased $110.7 million, or 21%, from the 2021 Quarter and our total costs and expenses as presented on the Unaudited Condensed Consolidated Statements of Operations increased $87.1 million, or 18%, between the two periods, with an increase to our operating income of $23.7 million. The increase in our operating income during the 2022 Quarter is primarily driven by higher export pricing in our Alkali Business and corresponding revenues within our sodium minerals and sulfur services segment.
  • A substantial portion of our revenues and costs are derived from the purchase and sale of crude oil in our crude oil marketing business, which is included in our onshore facilities and transportation segment, and revenues and costs associated with our Alkali Business, which is included in our sodium minerals and sulfur services segment. We describe, in more detail, the impact on revenues and costs for each of our businesses below.
  • As it relates to our crude oil marketing business, the average closing prices for West Texas Intermediate crude oil on the New York Mercantile Exchange (“NYMEX”) increased to $95.18 per barrel in the 2022 Quarter, as compared to $57.84 per barrel in the 2021 Quarter. We would expect changes in crude oil prices to continue to proportionately affect our revenues and costs attributable to our purchase and sale of crude oil and petroleum products, producing minimal direct impact on Segment Margin, Net loss and Available Cash before Reserves. We have limited our direct commodity price exposure related to crude oil and petroleum products through the broad use of fee-based service contracts, back-to-back purchase and sale arrangements and hedges. As a result, changes in the price of crude oil would proportionately impact both our revenues and our costs, with a disproportionately smaller net impact on our Segment Margin. However, we do have some indirect exposure to certain changes in prices for oil, natural gas and petroleum products, particularly if they are significant and extended. We tend to experience more demand for certain of our services when commodity prices increase significantly over extended periods of time, and we tend to experience less demand for certain of our services when commodity prices decrease significantly over extended periods of time. For additional information regarding certain of our indirect exposure to commodity prices, see our segment-by-segment analysis below and the section of our Annual Report entitled “ Risks Related to Our Business.”

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