Genesis Energy (NYSE:GEL) Announces Quarterly Earnings Results

Genesis Energy (NYSE:GEL) released its quarterly earnings results on Thursday. The pipeline company reported ($0.05) EPS for the quarter, beating analysts’ consensus estimates of ($0.18) by $0.13, FiscalAI reports. The firm had revenue of $449.25 million for the quarter, compared to analyst estimates of $529.81 million. Genesis Energy had a return on equity of 55.96% and a net margin of 4.29%. The business’s revenue was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.05) EPS.

Here are the key takeaways from Genesis Energy’s conference call:

• Genesis said 2026 Adjusted EBITDA will likely be near or possibly below the low end of its original guidance, with management citing lower offshore volumes and operational delays. In Q&A, the CEO indicated results could be around $570 million.
• Offshore volumes were affected by curtailments and well issues at Shenandoah, plus a Salamanca turnaround; expected new production at both fields has shifted into the first quarter of 2027. Management says minimum volume commitments provide some downside protection and characterizes the delays as timing issues, while acknowledging operators are still working through technical challenges.
• Marine utilization is effectively 100%, with negotiated spot rates up more than 10% in recent periods. The company expects higher rates as contracts reprice, including much of its inland fleet and about half of its offshore fleet over the coming year.
• Genesis has retired about 40% of its high-cost Series A preferred securities this year and has no debt maturities until 2029, though bank-calculated leverage was approximately 5.03x at quarter-end and about $311 million of preferred remains. The quarterly common distribution is unchanged at $0.20 per unit, up approximately 21% year over year.

Genesis Energy Price Performance

GEL stock opened at $12.56 on Friday. The company has a quick ratio of 0.90, a current ratio of 0.93 and a debt-to-equity ratio of 24.31. The firm has a market cap of $1.54 billion, a price-to-earnings ratio of 66.14 and a beta of 0.79. The company’s fifty day simple moving average is $14.69 and its 200 day simple moving average is $15.91. Genesis Energy has a 12-month low of $12.49 and a 12-month high of $18.64.

Genesis Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a $0.20 dividend. The ex-dividend date is Friday, October 30th. This represents a $0.80 annualized dividend and a yield of 6.4%. Genesis Energy’s payout ratio is presently 421.05%.

Analyst Ratings Changes

GEL has been the subject of a number of analyst reports. Weiss Ratings upgraded Genesis Energy from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, August 13th. Royal Bank Of Canada reduced their target price on Genesis Energy from $18.00 to $17.00 and set an “outperform” rating on the stock in a report on Tuesday, October 13th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $17.50.

About Genesis Energy

Genesis Energy, L.P. is a Houston-based publicly traded master limited partnership that provides midstream energy infrastructure and related industrial services. The company owns and operates assets used to gather, transport, process and store crude oil and other energy products, primarily in the United States.

Genesis Energy’s offshore pipeline transportation business serves producers in the Gulf of Mexico, moving crude oil and natural gas through an extensive network of pipelines and related infrastructure.