Executive Summary

Q1 2025 headline numbers reflect a major portfolio transition: revenue $398.3M, Total Segment Margin $121.4M, Adjusted EBITDA $131.7M, and GAAP net loss attributable to GEL of $469.1M driven by a $432.2M loss on disposal of the Alkali business (discontinued operations) .
Management introduced 2025 Adjusted EBITDA guidance of $545–$575M (post-Alkali sale and before reconcilable GAAP items), below the prior “around $700M” outlook provided with Q4 2024, as scope and timing rebase to continuing operations and the ramp of Shenandoah/Salamanca mid-year .
Deepwater Gulf growth catalysts are imminent: Shenandoah connected to SYNC with first oil expected in June and Salamanca ~4–6 weeks behind; both are expected to ramp quickly and, with remediation of producer mechanical issues, drive sequential offshore improvement into 2H25 .
Balance sheet materially simplified: ~$1.0B Alkali-sale proceeds used to pay RCF to zero, redeem 2027s, and repurchase $250M preferreds; annual cash costs reduced by >$120M; bank leverage 5.49x LTM as of 3/31/25, nearest unsecured maturity in early 2028 .

What Went Well and What Went Wrong

What Went Well
- Offshore projects on track: Shenandoah FPU moored; SYNC commissioning end‑May; first oil June; Salamanca arrival imminent with first oil in 3Q; both expected to ramp quickly and be long-term contributors .
- Marine Transportation steady with constructive market: high utilization and steady to rising day rates; structural undersupply of Jones Act capacity supports outlook .
- Balance sheet actions lowered cash cost of capital by >$120M annually; RCF at $0; 2027s called; $250M preferred repurchased, improving flexibility for future distributions/deleveraging .
What Went Wrong
- Offshore Segment Margin fell 22% YoY on producer mechanical issues, a contractual step-down on an older dedication, and higher operating costs; Poseidon volumes also down YoY .
- Onshore Transportation & Services margins declined 18% YoY on lower NaHS/caustic volumes and lower onshore crude pipeline volumes, partly offset by higher rail unloads .
- GAAP EPS sharply below consensus due to a non‑cash loss on Alkali disposal: net loss per common unit of $(4.06) vs S&P Global consensus primary EPS of $(0.23) (one estimate) . Values retrieved from S&P Global.

Financial Results

Consolidated results vs prior quarters (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$714.3	$725.6	$398.3
Total Segment Margin ($M)	$151.1	$172.5	$121.4
Adjusted EBITDA ($M)	$136.7	$160.6	$131.7
Net Income (Loss) attributable to GEL ($M)	$(17.2)	$(49.4)	$(469.1)
EPS (Net loss per common unit)	$(0.32)	$(0.58)	$(4.06)

Q1 2025 results vs Wall Street consensus (S&P Global)

Metric	Consensus	Actual	Comment
Primary EPS	$(0.23)*	$(4.06)	Miss; driven by $432.2M disposal loss from discontinued ops
Revenue	n/a	$398.3M	Consensus unavailable*
EBITDA	$130.9M*	$131.7M (Adj. EBITDA)	Slight beat vs consensus proxy

Values retrieved from S&P Global.

Segment breakdown (Segment Margin)

Segment Margin ($000s)	Q1 2024	Q1 2025
Offshore Pipeline Transportation	97,806	76,548
Marine Transportation	31,363	30,021
Onshore Transportation & Services	18,098	14,826
Total Segment Margin	147,267	121,395

Drivers referenced by management: offshore step‑down on an older dedication, producer underperformance/downtime, higher operating costs; inland marine utilization softness early in the quarter; onshore lower NaHS/caustic sales and onshore crude volumes with higher rail unloads .

Selected KPIs

KPI	Q1 2024	Q1 2025
Offshore crude oil pipelines total (bpd)	656,290	622,719
CHOPS (bpd, 100% basis)	298,313	312,976
Poseidon (bpd, 100% basis)	291,922	244,323
Odyssey (bpd, 100% basis)	63,697	63,738
Marine inland fleet utilization	100.0%	93.6%
Marine offshore fleet utilization	99.2%	96.2%
Rail unload volumes (bpd)	1,240	20,492
NaHS volumes (DST)	29,037	25,873

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA	FY 2025	“Around $700M” (Q4 2024 release, pre-Alkali sale/older scope)	$545–$575M (post‑sale continuing operations, timing of ramps/remediation)	Lowered; scope/timing reset
Distribution per common unit	Q2 2025	n/a	Likely maintain flat for Q2; considering increases from Q3+ subject to visibility	Maintained (near term)
Leverage target (bank‑calculated)	Long‑term	~4.0x target reiterated (Q4 call)	~4.0x target reiterated (Q1 call)	Maintained
Capital allocation	2025+	“All of the above” (debt reduction, preferred redemptions, return to holders)	Same framework; accelerated by >$120M annual cash cost savings post‑sale	Maintained, with improved capacity

Management noted it cannot provide GAAP reconciliations for forward Adjusted EBITDA guidance .

Earnings Call Themes & Trends

Topic	Q3 2024 (Prev‑2)	Q4 2024 (Prev‑1)	Q1 2025 (Current)	Trend
Offshore project execution	Both Shenandoah and Salamanca on schedule for 2Q25 first oil; CHOPS expansion complete	First production late 2Q; ramp expected quickly; Phase 2/Monument pipeline of subsea	Shenandoah moored; SYNC commissioning; first oil June; Salamanca ~4–6 weeks behind	Execution progress; ramps imminent
Producer mechanical issues	Cited extended downtime impacting Poseidon‑area volumes	3 rigs focused on remediation; expect restoration in 2025	Exit‑quarter volumes improved; normalization by late Q2–Q3 expected	Improving trajectory
Marine market	Strong demand vs limited newbuilds; near‑100% utilization	Record year expected 2025; fewer dry docks	High utilization; day rates steady to rising	Constructive, stable
Capital allocation	Cost controls; inflection targeted in 2025	Deleveraging and balance‑sheet simplification path laid out	Post‑Alkali sale: >$120M annual cash cost savings; flexibility to redeem preferred, pay down debt, consider distribution increases	Improved flexibility
Macro/commodity sensitivity	Soda ash weakness cited; hurricanes impacted volumes	Still caution on soda ash into 1H25	Management downplays impact of tariffs/slowing macro/near‑term oil fluctuations on deepwater activity	Reduced macro sensitivity for core

Management Commentary

“We have successfully reached our targeted inflection point where our capital‑intensive growth projects in the Gulf of America are all but complete and paid for, and we are now in a position to generate cash in excess of the ongoing cash costs of running our businesses.”
“We anticipate commissioning our new SYNC pipeline towards the end of this month and expect volumes from Shenandoah to begin sometime in June… Salamanca… first oil in the third quarter.”
“We would reasonably expect to be able to generate Adjusted EBITDA in 2025 in the range of $545–$575 million,” driven by timing of remediation at impacted fields and ramp cadence of Shenandoah/Salamanca .
“We do not anticipate seeing any significant… impact from proposed or increased tariffs, slowing economic activity, relatively low oil prices or other current macro‑economic headwinds.”

Q&A Highlights

Distribution path: Management expects to “maintain a flat distribution for the second quarter,” with potential to consider increases from Q3 onward as visibility on project ramps and remediation improves .
Offshore tiebacks pipeline: 10 of 22 deepwater rigs on GEL‑dedicated leases; operators expect 6+ infill/tiebacks online before year‑end; typical 7–10 kbopd per well; some included in guidance with upside beyond .
Segment outlook: OTS and Marine to be “reasonably consistent” with Q1; incremental improvement vs guidance primarily from Offshore ramps .
Marine newbuild economics: Day rates would need to rise ~30–40% and sustain 5+ years to justify newbuilds; replacement cost of an inland heater barge rose to ~$6–6.5M vs ~$3.5M in 2017–2018 .

Estimates Context

EPS: Reported net loss per unit $(4.06) vs S&P Global consensus primary EPS $(0.23) (1 estimate) — a headline miss entirely driven by the $432.2M loss on disposal of discontinued operations (Alkali sale) . Values retrieved from S&P Global.
Revenue: Reported $398.3M; consensus not available; note the statements reflect continuing operations with discontinued operations shown separately .
EBITDA: Adjusted EBITDA $131.7M modestly above S&P Global EBITDA consensus $130.9M; definitional differences (Adjusted vs provider’s EBITDA) may apply . Values retrieved from S&P Global.

Key Takeaways for Investors

Near‑term catalyst density is high: first oil at Shenandoah in June and Salamanca in 3Q, with rapid ramp potential and remediation of impacted fields expected by late Q2–Q3; these should drive sequential Offshore improvement into 2H25 .
2025 guide reset reflects portfolio scope change and timing; medium‑term earnings power intact as deepwater volumes fill pre‑built capacity (SYNC, CHOPS), enabling incremental margin with minimal capex .
Balance sheet simplification materially lowers cash burdens (> $120M annual savings), creating headroom to redeem preferreds, reduce debt, and consider distribution increases as cash flow ramps .
Marine remains a steady ballast with structural support (limited newbuilds, retirements) and high utilization, adding resilience to consolidated results .
Watch list: pace of producer remediation, SYNC commissioning and early Shenandoah/Salamanca volume ramps, and any updates to 2025 EBITDA range as 2H visibility improves .
Trading setup: Any confirmation of on‑time first oil and faster‑than‑planned ramps could be a positive catalyst; conversely, delays/remediation slippage would pressure the 2025 range and sentiment.

Appendix: Additional context and data

Q1 2025 financial statements and reconciliations, operating data, and leverage metrics are provided in the company’s 8‑K and press release exhibits .
Sale of Alkali and subsequent capital actions (RCF to zero, 2027s redemption, preferred repurchase) summarized in March updates .

GENESIS ENERGY LP (GEL)·Q1 2025 Earnings Summary