Genesis Energy (NYSE:GEL) Issues Earnings Results

Genesis Energy (NYSE:GEL) announced its quarterly earnings data on Thursday. The pipeline company reported ($0.05) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.18) by $0.13, FiscalAI reports. Genesis Energy had a return on equity of 55.96% and a net margin of 4.29%. During the same period last year, the firm posted ($0.05) EPS. Genesis Energy’s quarterly revenue was up 8.5% compared to the same quarter last year.

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

Shares of NYSE:GEL traded down $0.69 during trading on Thursday, hitting $12.56. 521,962 shares of the stock were exchanged, compared to its average volume of 229,868. The company has a fifty day moving average price of $14.69 and a two-hundred day moving average price of $15.91. The company has a current ratio of 0.93, a quick ratio of 0.90 and a debt-to-equity ratio of 24.31. The company has a market cap of $1.54 billion, a PE ratio of 66.14 and a beta of 0.79. Genesis Energy has a 12-month low of $12.49 and a 12-month high of $18.64.

Genesis Energy Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date is Friday, October 30th. Genesis Energy’s dividend payout ratio (DPR) is presently 421.05%.

Wall Street Analyst Weigh In

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