Genesis Energy reports Q2 EPS (12c) vs. (27c) last year
Reports Q2 revenue $377.35M vs. $430.18M last year. CEO Grant Sims said, "Q2 was generally in-line with our expectations, driven primarily by sequential improvement in our offshore pipeline transportation segment as several of the previously shut-in wells returned to service in addition to collecting one month's contribution from our minimum volume commitments from the Shenandoah development...I am extremely happy to report on the successful commissioning and start-up of the Shenandoah production facility which delivered first oil to our new SYNC pipeline lateral and downstream through our expanded CHOPS pipeline just last week...the operator has successfully brought on-line the first of four previously drilled and completed wells. We anticipate the remaining wells will be brought online in the coming weeks, with production ramping steadily and likely to achieve initial anticipated peak production of 90-100 kbd. This important milestone is the culmination of over three years of hard work and dedication from our entire team, and I could not be prouder of their collective effort. Looking ahead, Salamanca remains on track to achieve first oil by the end of Q3...Similar to Shenandoah, we expect Salamanca's production to ramp very quickly over the subsequent few months after first production to its initial peak design of 40-50 kbd...With the anticipated increase in our offshore pipeline transportation segment margin, the completion of our growth capital expenditures, and continued steady performance from our legacy businesses, we remain well positioned to generate increasing amounts of free cash flow in excess of the cash costs of running our businesses starting in Q3...we expect to use the estimated free cash flow to begin paying down the revolver balance in Q3, and we anticipate exiting the year with no outstanding borrowings under such facility. The combination of growing Segment Margin and a lower absolute debt balance is also expected to drive sequential improvement in our bank calculated leverage ratio over the remainder of the year and throughout 2026".
