You might also like
Genesis Energy, L.P. (GEL) is a growth-oriented master limited partnership (MLP) that provides integrated midstream services for the crude oil and natural gas industry, along with producing natural soda ash. The company operates a diverse portfolio of assets, including pipelines, terminals, railcars, barges, and refinery-related plants, and sells products such as soda ash and sodium hydrosulfide. GEL's operations span transportation, storage, processing, and production activities, serving industrial enterprises, refiners, and crude oil producers.
- Soda and Sulfur Services - Produces natural soda ash used in glass, detergents, and chemicals, and processes high sulfur gas streams for refineries, generating sodium hydrosulfide as a by-product.
- Onshore Facilities and Transportation - Provides terminaling, blending, storing, marketing, and transporting crude oil and petroleum products.
- Offshore Pipeline Transportation - Transports and processes crude oil and natural gas in the Gulf of Mexico.
- Marine Transportation - Offers waterborne transportation of petroleum products and crude oil across North America.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Grant E. Sims ExecutiveBoard | Chief Executive Officer | Grant E. Sims has served as the Chief Executive Officer of Genesis Energy, L.P. since August 2006 and as Chairman of the Board since October 2012, and he previously served as CEO and Director of Leviathan Gas Pipeline Partners, LP from 1993 to 1999. | View Report → | |
Edward T. Flynn Executive | Executive Vice President of GEL's general partner | Edward T. Flynn has served as Executive Vice President of GEL's general partner since September 2017 and as President of Genesis Alkali, playing a key role in GEL's strategic operations. He also held executive roles at Tronox Corporation starting in April 2015 and spent 33 years at FMC Corporation leading FMC Minerals. | ||
Garland G. Gaspard Executive | Senior Vice President | Garland G. Gaspard has served as Senior Vice President of Genesis Energy since January 2017, managing the operational aspects of onshore and offshore assets. He joined GEL in 2015 through an acquisition of offshore assets and previously held various operational roles at Enterprise Products Partners covering pipelines, underground storage, natural gas liquids, and offshore operations. | ||
Jeffrey J. Rasmussen Executive | Vice President | Jeffrey J. Rasmussen is the Vice President of Genesis Energy, L.P. since April 2023. He joined GEL in 2017 as Director of Specialty Products after the acquisition of the Alkali Business and previously spent 15 years at FMC Corporation. | ||
Kristen O. Jesulaitis Executive | Chief Financial Officer | Kristen O. Jesulaitis serves as the Chief Financial Officer and Chief Legal Officer at Genesis Energy, L.P., having been promoted to these roles in 2023 after joining the company in 2011. She previously honed her expertise as a partner at Akin Gump Strauss Hauer & Feld LLP, focusing on corporate transactions and securities law. | ||
Louie V. Nicol Executive | Senior Vice President and Chief Accounting Officer | Louie V. Nicol has served as Senior Vice President and Chief Accounting Officer at GEL since April 2023 and previously worked as Assistant Corporate Controller from 2018 until April 2023, after beginning his career at GEL in June 2014 following a six-year tenure at KPMG LLP. | ||
Richard R. Alexander Executive | Vice President | Richard R. Alexander has been the Vice President of Genesis Energy, L.P. (GEL) since November 2014, where he oversees the commercial aspects of the marine transportation segment. He has been involved in GEL's marine operations since 2008, contributing significantly to its growth and strategic direction. | ||
Ryan S. Sims Executive | President and Chief Commercial Officer | Ryan S. Sims has been serving as President and Chief Commercial Officer since April 2023, and he previously held roles as Senior Vice President, Finance and Corporate Development from March 2019 to April 2023, and as Vice President from January 2017 to March 2019. | ||
William W. Rainsberger Executive | Senior Vice President | William W. Rainsberger has served as Senior Vice President at GEL since April 2023, where he manages the commercial aspects of the company’s offshore pipelines. He joined GEL in 2010 and previously served as Vice President responsible for corporate development and planning from 2019. | ||
Conrad P. Albert Board | director | Conrad P. Albert has served as a director of Genesis Energy, L.P. since July 2013. He previously held significant roles including director of Anadarko Petroleum Corporation (1986-2006), director of DeepTech International, Inc. (1992-1998), and Executive Vice President at Manufacturers Hanover Trust Company (1969-1991). | ||
Jack T. Taylor Board | director of the general partner of Genesis Energy, L.P. | director of Sempra Energy (audit committee member) ; director of Murphy USA Inc. (audit committee member) | Jack T. Taylor has been a director at GEL since July 2013 and leverages extensive experience in financial and public accounting issues, along with deep industry expertise from his long tenure at KPMG LLP from 1981 to 2010. | |
James E. Davison Board | Director of Genesis Energy, LLC | President of Terminal Services, Inc. | James E. Davison has over 50 years of experience in the energy sector and has served as a director at GEL since July 2007. He is also currently the President of Terminal Services, Inc. and previously served as Chairman of the Board at Davison Transport, Inc. | |
Kenneth M. Jastrow II Board | Director of the General Partner | Director of MGIC Investment Corporation; Director and Director Emeritus of KB Home; Non-Executive Chairman of Forestar Group, Inc. | Kenneth M. Jastrow II has served as a director of the general partner of GEL since March 2010, where he is the lead independent director and chairperson of the Governance, Compensation, and Business Development Committee. He previously served as Chairman and CEO of Temple-Inland, Inc. from 2000 to 2007. | |
Sharilyn S. Gasaway Board | Director of the General Partner | Director and Chair of Audit Committee at JB Hunt Transport Services, Inc.; Director at Hanesbrands Inc. | Sharilyn S. Gasaway has served as a director at GEL since March 2010 and chairs the audit committee, demonstrating extensive expertise in financial oversight and governance. Previously, she held executive roles as CFO and Controller at Alltel Corporation. |
- In light of the ongoing mechanical issues affecting multiple offshore fields, can you quantify the potential impact on your 2025 cash flow projections if these production challenges persist longer than expected?
- Given the current oversupply and low pricing in the soda ash market, what specific steps are you taking to mitigate the impact on your earnings, and how confident are you that soda ash prices will recover by 2026 as you anticipate?
- Your adjusted EBITDA guidance assumes flat performance in your Soda and Sulfur Services segment; what are the key risks that could cause underperformance, and how sensitive is your guidance to further declines in soda ash prices?
- Can you provide more clarity on your capital allocation priorities between debt reduction, redemption of high-cost preferred securities, and returning capital to unitholders, especially considering the different leverage treatment by rating agencies compared to your bank lenders?
- While you expect strong performance in your Marine Transportation segment to continue, how sustainable are current market conditions, and what potential headwinds could impact this segment's earnings in 2025 and beyond?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
ANSAC | Largest buyer of soda ash prior to 2023 | Soda & Sulfur Services | Accounted for 15% of total consolidated revenues in 2022. Became a wholly owned subsidiary on January 1, 2023. No single customer exceeded 10% in 2023 or 2024. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
GA ORRI, LLC | 2022 | Deal Structure: In this acquisition, Genesis Energy, L.P. issued $425 million of 5.875% senior secured notes due 2042 secured by a fifty-year limited term overriding royalty interest in substantially all of its Alkali Business' trona mineral leases, generating $408 million in net proceeds after a $17 million discount. Strategic Rationale & Key Assets: The acquisition helped streamline the capital structure by redeeming high-interest Alkali Holdings preferred units and repaying borrowings, which lowered the cost of capital and mitigated refinancing risks associated with those units. |
Recent press releases and 8-K filings for GEL.
- Net loss of $469.1 million in Q1 2025, a stark reversal from a Q1 2024 net income of $11.4 million .
- Completed sale of the soda ash business for an implied enterprise value of $1.425 billion, as part of its business transformation to simplify the balance sheet; the transaction generated approximately $1.0 billion in net proceeds to deleverage and redeem high-cost notes .
- Offshore Expansion: Progress on new FPUs Shenandoah and Salamanca nearing completion with expected first oil in mid-2025 and potential to add nearly 200,000 barrels per day, despite pipeline mechanical issues set for resolution in later quarters .
- Capital Allocation Approach: Management plans to deploy excess free cash flow toward debt reduction, redeeming high-cost preferred units, and enhanced distributions, with guidance pointing to a potential $160 million annual increase in offshore EBITDA .
- Reported Adjusted EBITDA of $131.7 million and segment margin of $121.4 million, bolstered by liquidity from an $800 million credit facility .
- Achieved an annual cash cost reduction of over $120 million while recording operating cash flows of $24.8 million and declaring cash distributions of approximately $19.9 million on preferred units .