Genesis Energy, L.P. 4Q 2025 Earnings Supplement February 12, 2026 2.60 1.80 2.15 3.30 3.75 5.10 4.50 - logo 0.15 0.15 5.10 Forward-Looking Statements This presentation includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Actual results may vary materially. All statements, other than statements of historical facts, included in this press release that address ...

Financial Performance - Net Income attributable to Genesis Energy, L.P. for Q4 2025 was $19.9 million, a significant improvement from a net loss of $49.4 million in Q4 2024[5] - Net income from continuing operations for the 2025 Quarter was $34.3 million, a significant improvement from a net loss of $53.6 million in the 2024 Quarter[26] - For the three months ended December 31, 2025, Genesis Energy reported a net income of $19,871,000, compared to a net loss of $49,379,000 for the same period in 2024[37] - Total revenues for the 2025 Quarter were $440.8 million, up from $398.9 million in the 2024 Quarter[31] - Operating income for the 2025 Quarter was $89.9 million, compared to $13.5 million in the 2024 Quarter[31] Cash Flow and Expenditures - Cash Flows from Operating Activities for Q4 2025 were $110.8 million, compared to $74.0 million in Q4 2024, reflecting a 49.3% increase[5] - Cash flows from operating activities for the year ended December 31, 2025, were $252,826,000, a decrease of 35.5% from $391,934,000 in 2024[39] - Maintenance capital expenditures for the year ended December 31, 2025, were $71.5 million, down from $94.6 million in 2024[38] - Corporate general and administrative expenses increased to $89,495,000 for the year ended December 31, 2025, compared to $57,285,000 in 2024, reflecting a 56.3% rise[35] - Interest expense for the year ended December 31, 2025, was $264,729,000, slightly up from $261,875,000 in 2024[37] Segment Performance - Total Segment Margin for Q4 2025 reached $174.0 million, up from $121.98 million in Q4 2024, representing a 42.5% increase[22] - Offshore pipeline transportation Segment Margin increased by $43.5 million, or 57%, in Q4 2025 compared to Q4 2024, driven by higher volumes from the Shenandoah and Salamanca production facilities[22] - Marine transportation segment margin for the 2025 Quarter decreased by $0.7 million, or 2%, compared to the 2024 Quarter, impacted by a decline in Midwest refinery demand for black oil equipment[24] - Onshore transportation and services segment margin for the 2025 Quarter increased by $9.3 million, or 65%, primarily due to increased activity in Baton Rouge assets and higher volumes on the Texas pipeline system[25] - The total segment margin for the year ended December 31, 2025, was $577,853,000, an increase of 9.2% from $529,142,000 in 2024[35] Future Outlook - Genesis Energy expects a sequential growth in Adjusted EBITDA of approximately 15% to 20% in 2026 compared to normalized 2025 figures[9] - The marine transportation segment is expected to benefit from increased demand for inland barges due to wider heavy/sour differentials and potential crude imports into the Gulf Coast[16] - Significant drilling activity is anticipated around production facilities attached to Genesis Energy's infrastructure, with plans for additional wells at Salamanca and Shenandoah[13] - Genesis Energy anticipates continued challenges due to market conditions, including potential impacts from geopolitical tensions and commodity price fluctuations[45] Adjusted Metrics - Adjusted EBITDA for the full year 2025 was approximately $544 million, aligning with the low end of the previous guidance range of $545 to $575 million[8] - Adjusted EBITDA for the year ended December 31, 2025, was $544,324,000, down 10.7% from $609,262,000 in 2024[37] - The adjusted debt-to-adjusted consolidated EBITDA ratio was reported at 5.12x as of December 31, 2025[44] - Available Cash before Reserves is defined as Adjusted EBITDA adjusted for maintenance capital utilized, interest expense, cash tax expense, and cash distributions to Class A Convertible Preferred unitholders[50] - The maintenance capital utilized measure is a proxy for non-discretionary maintenance capital expenditures, reflecting the relationship among maintenance capital expenditures, operating expenses, and depreciation[58] Asset and Liability Management - Outstanding borrowings under the senior secured revolving credit facility were reduced to approximately $6.4 million at year-end 2025, effectively resulting in zero net borrowings[4] - Total assets decreased to $4.86 billion as of December 31, 2025, from $7.04 billion as of December 31, 2024[34] - Total liabilities decreased to $4.15 billion as of December 31, 2025, from $5.52 billion as of December 31, 2024[34] Definitions and Clarifications - Adjusted EBITDA is defined as net income attributable to Genesis Energy, L.P. before interest, taxes, depreciation, and amortization, adjusted for select non-cash items[59] - Segment Margin is evaluated based on revenues less product costs, operating expenses, and segment general and administrative expenses, plus or minus applicable select items from continuing operations[63] - Select Items in the financial statements include unrealized losses on derivative transactions and adjustments regarding equity investees, impacting the reconciliation of net income to Adjusted EBITDA[60] - The company emphasizes the importance of understanding select items for evaluating core operating results, even if they are not necessarily non-recurring[63] - The financial performance of assets is assessed without regard to financing methods or capital structures, focusing on cash generation capabilities[62]

Core Viewpoint - Genesis Energy, L.P. reported a significant turnaround in its financial performance for the fourth quarter of 2025, achieving a net income of $19.9 million compared to a net loss of $49.4 million in the same quarter of 2024 [1] Financial Performance - The net income attributable to Genesis Energy, L.P. for Q4 2025 was $19.9 million, marking a recovery from a net loss of $49.4 million in Q4 2024 [1] - Cash flows from operating activities for Q4 2025 were reported at $110.8 million, an increase from $74.0 million in the same quarter of the previous year [1]

Core Viewpoint - Genesis Energy, L.P. (NYSE:GEL) is recognized as one of the best pipeline and MLP stocks to buy in 2026, with positive ratings from multiple analysts [1]. Group 1: Analyst Ratings and Price Targets - RBC Capital reiterated a Buy rating for Genesis Energy on January 28, 2026, maintaining a price target of $20 [2]. - Wells Fargo also maintained a Buy rating on December 16, 2025, with a price target of $19 [2]. - A consensus Buy rating from 3 analysts indicates an average 1-year upside of 10.59% in the stock price [3]. Group 2: Company Overview and Operations - Genesis Energy, L.P. is a master limited partnership based in Texas, providing diversified midstream services since its incorporation in 1996 [4]. - The company operates through various segments, including offshore pipeline transportation, sodium minerals and sulfur services, and marine transportation, primarily serving the Gulf Coast and Gulf of Mexico [4]. Group 3: Future Outlook - The company anticipates that its Marine Transportation segment will recover and contribute stable-to-modest revenues from 2026 onward [3].

Core Thesis - Genesis Energy, L.P. is undergoing a significant transformation that positions it favorably for future growth, particularly following the divestiture of its soda ash business and completion of a capital expenditure cycle [2][3]. Business Model and Financials - The company has simplified its business model, reducing earnings volatility and enhancing transparency in its balance sheet, supported by stable, infrastructure-like free cash flow [3]. - With declining capital intensity and rising earnings, Genesis Energy is entering a "flywheel" phase where improved fundamentals lead to higher free cash generation [3]. Key Value Drivers - The offshore pipeline business is the core value driver, featuring deepwater assets with high utilization, low lifting costs, and long-term take-or-pay contracts, which are expected to significantly boost free cash flow as new pipelines ramp up [4]. - The marine transportation segment benefits from regulatory advantages and a favorable supply-demand environment, while the onshore segment provides steady, fee-based logistics income, enhancing overall cash flow resilience [5]. Capital Allocation Strategy - Management is focused on deleveraging and retiring high-cost preferred equity rather than pursuing acquisitions, with a goal of gradually increasing distributions by 10-15% [6]. - This strategy aims to reposition the capital structure for a higher long-term payout, targeting a 75% payout ratio by 2027 [7]. Valuation and Future Outlook - Genesis Energy is perceived as undervalued at $16 per unit, trading at a significant discount compared to peers, with projections indicating distributions could rise to $2.00 per share, suggesting substantial upside potential [7].

Core Insights - The midstream sector is demonstrating strong financial health at the start of 2026, with numerous companies announcing increases in distributions and dividends, reinforcing its position as a reliable income source for investors [1] Payout Growth Across Midstream - Williams (WMB) raised its quarterly cash dividend to $0.525 from $0.50, a 5% increase [1] - Plains All American (PAA/PAGP) increased its quarterly distribution to $0.4175 per unit, reflecting a 9.9% rise [1] - Enterprise Products Partners (EPD) raised its distribution to $0.55, nearly a 1% increase [1] - ONEOK (OKE) announced a 4% sequential increase to $1.07 per share [1] Broad Sector Momentum - Energy Transfer (ET) increased its quarterly distribution to $0.335, a 3.1% year-over-year rise from $0.325 [1] - Hess Midstream (HESM) raised its payout to $0.7641, marking a 9.0% year-over-year increase [1] - Sunoco LP (SUN) announced a distribution of $0.9317, a 5.1% year-over-year increase [1] - Genesis Energy (GEL) raised its distribution by $0.015 to $0.18 per unit, a 9.1% increase [1] - Kinetik (KNTK) raised its payout to $0.81, reflecting a 4% sequential increase [1] - Delek Logistics (DKL) increased its payout to $1.125, representing a 1.85% year-over-year rise [1] ETF Exposure - Energy Transfer, Enterprise, Hess Midstream, Genesis, Delek Logistics, Sunoco, and Plains are included in both the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) [1] - AMLP tracks the Alerian MLP Infrastructure Index (AMZI), while ENFR tracks the Alerian Midstream Energy Select Index (AMEI) [1] - Williams, ONEOK, and Kinetik operate as C-corps, with only ENFR holding them [1]

Core Insights - Graphano Energy Ltd. has successfully completed an airborne geophysics program covering 473 kilometers over the Black Pearl property in Québec, which is a significant milestone for the company [1][4] Exploration Results - Preliminary interpretation of the airborne survey confirms a dominant TDEM conductor extending over 1.2 kilometers, aligning with previous ground geophysical surveys in the Black Pearl area [2] - Initial exploration drilling in late 2025 revealed multiple near-surface graphite zones with significant assay results, including 11.33% graphitic carbon (Cg) over 8.61 meters, 4.81% Cg over 12.25 meters, and 7.37% Cg over 4.70 meters [2] - The airborne survey has identified numerous new priority conductive targets, expanding the overall target footprint on the property [2] Strategic Implications - The confirmation of a continuous 1.2-kilometer conductive trend and the identification of new conductors enhance the exploration case at Black Pearl, allowing the company to prioritize targets for further exploration [3] - A technical interpretation of the conductors' location is underway, which will facilitate more detailed geological interpretation and ranking of EM targets [3] Future Plans - The airborne geophysics program is crucial for refining the geological and structural understanding of the Black Pearl property and will support follow-up exploration activities, including additional groundwork and drilling programs [4] Industry Context - Graphite is increasingly in demand as a technology mineral essential for a sustainable future, particularly in industries such as lithium batteries for electric vehicles and energy storage technologies [6] - The company's Lac Aux Bouleaux property is located adjacent to Canada's only producing graphite mine, highlighting its strategic position in a historically active area for natural graphite [6]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are significant, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2][3] Investment Opportunity - A specific company is highlighted as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is positioned as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend driven by tariffs [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened by debt [8][10] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9] Market Trends - The article discusses the broader trends of AI, energy, tariffs, and onshoring, indicating that this company is strategically aligned with these developments [6][14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the potential for growth in AI investments [12] Future Outlook - The company is positioned at the heart of America's next-generation power strategy, particularly in nuclear energy, which is seen as a clean and reliable power source for the future [7][14] - The potential for significant returns is emphasized, with projections suggesting a possible 100% return within 12 to 24 months for investors who act now [15]

Core Insights - The article emphasizes the goal of generating a 7%+ income yield by investing in a portfolio of energy stocks while minimizing principal loss [1] - Genesis Energy, L.P. is highlighted as a unique midstream company operating primarily offshore in the Gulf of Mexico, which has contributed to its strong growth over the past year [1] Company Overview - Genesis Energy, L.P. operates in the midstream sector, focusing on offshore activities in the Gulf of Mexico [1] - The company has demonstrated significant growth, positioning itself as a competitive player in the energy market [1] Investment Strategy - The investment approach involves targeting international energy companies that possess a competitive advantage and offer strong dividend yields [1] - The strategy includes managing risk through options while focusing on generating income from energy stocks and closed-end funds (CEFs) [1]

Core Viewpoint - Graphano Energy Ltd. has successfully closed a non-brokered private placement financing, raising a total of $375,000 through the issuance of 2,500,000 units at a price of $0.15 per unit [1][2]. Financing Details - The private placement involved the issuance of 2,500,000 units, each consisting of one common share and one common share purchase warrant, with warrants priced at $0.25 for a period of 36 months [2]. - The financing was conducted under the Listed Issuer Financing Exemption, applicable in various provinces of Canada, excluding Quebec and New Brunswick [3]. - The net proceeds will be allocated to fund an airborne geophysical survey, permit filing for bulk samples on specific projects, and general working capital [4]. Regulatory and Compliance Information - The securities issued are immediately tradeable under Canadian securities legislation and are subject to final approval from the TSX Venture Exchange [5]. - The company paid finder's fees totaling $22,500, representing 6% of the gross proceeds from the sale of units placed by the finder [6]. Company Overview - Graphano Energy Ltd. focuses on the exploration and development of energy metals resources, particularly graphite, which is essential for technologies like lithium batteries [8][9]. - The company's Lac Aux Bouleaux property is strategically located near Canada's only producing graphite mine, highlighting its potential in meeting the growing demand for graphite in various industries [9].