Genesis Energy Q2 net loss narrows
Overview
Genesis Energy LP Q2 net loss narrows to $0.4 mln from $8.7 mln yr ago
Adjusted EBITDA for Q2 at $122.9 mln, driven by offshore pipeline improvements
Co successfully commissions Shenandoah facility, anticipates production ramp-up
Outlook
Company expects full-year 2025 Adjusted EBITDA near low end of $545–$575 mln
Company plans to reduce revolver balance with free cash flow in Q3
Genesis sees Shenandoah and Salamanca as key to future growth
Result Drivers
OFFSHORE PIPELINE IMPROVEMENTS - Sequential improvement in offshore pipeline transportation segment as shut-in wells returned to service, per CEO Grant Sims
SHENANDOAH COMMISSIONING - Successful commissioning and start-up of Shenandoah production facility, with first oil delivered to SYNC pipeline
PRODUCTION DELAYS - Initial production delayed due to commissioning challenges, including persistent loop currents affecting sub-sea activities
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $377.35 mln |
|
Q2 Net Income |
| $10.01 mln |
|
Q2 Adjusted EBITDA |
| $122.90 mln |
|
Q2 Operating Income |
| $67.72 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for Genesis Energy LP is $18.00, about 7.4% above its July 30 closing price of $16.67
Press Release: ID:nBw91q3sXa
