This board is for discussion of Genesis Energy - an MLP with four unique lines of business.
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, soda and sulfur services, onshore facilities and transportation and marine transportation.
Genesis is expected to deliver record EBITDA in 2023.
One reason to consider investment in GEL now is the following paragraph from their Q3 2023 results.
Regardless of the makeup of our 2024 results, it is important to remember that the long-term outlook for Genesis remains completely unchanged. We remain well positioned to benefit from the increasing amounts of cash flow we expect to generate once our identified and ongoing growth capital projects are complete in mid to late 2024, along with a significant step change in offshore volumes and corresponding segment margin contributions in 2025 as the Shenandoah and Salamanca developments are expected to come on-line. This increased financial flexibility will continue to afford us with the opportunity to further simplify our capital structure, return capital to our stakeholders in one form or another, and ultimately allow us to continue to build long-term value for everyone in the capital structure in the coming years ahead.
I take that to mean the due to capital spending slowing down later this year, and new developments coming on line in 2025, there is likely to be above average free cash available for ..... whatever the partnership wants to use it for. If it really happens, it sounds like a recipe for distribution growth and / or unit price increases.
If it works that past few years may be considered the Peter Gabrial era, where Genesis was a self sustaining artistic progressive endeavor, and the upcoming years are the Phil Collins era, where Genesis achieves serious mass market success and members / owners become rich beyond their wildest dreams......:-) |
