Core Viewpoint - Graphano Energy Ltd. is advancing its graphite assets in Québec, Canada, amidst rising geopolitical uncertainty and the need for a resilient supply chain in critical minerals [2][6]. Group 1: Exploration and Resource Development - The company plans to publish an initial resource estimate for the Lac Aux Bouleaux and Standard Mine Projects in 2025, which will clarify the potential of these projects [3]. - Graphano is expanding its metallurgical work to optimize the production of high-quality graphite concentrate for battery applications and industrial uses [4]. Group 2: Strategic Initiatives - Graphano is actively seeking strategic partnerships to accelerate the development of its graphite assets, focusing on project financing and technical development [5]. - The company is committed to responsible and sustainable development while maintaining strong community relationships and regulatory compliance [8]. Group 3: Ongoing Activities - Graphano will continue basic prospecting activities in unexplored areas and has submitted applications for Authorization for Impact-Causing Exploration Work (ATI) as per Quebec's new permitting requirements [7]. - The company emphasizes the importance of domestic critical materials production for supporting global net-zero targets and aims to be a key supplier of clean graphite worldwide [6][11].

Financial Data and Key Metrics Changes - The company is approaching a significant inflection point where it will complete its major capital spending program and expects to generate cash from operations exceeding cash costs [8][19] - Adjusted EBITDA is projected to be around $700 million in 2025 and could reach $800 million in 2026, even without significant improvement in the soda ash business [40][41] Business Segment Data and Key Metrics Changes - The Offshore Pipeline Transportation segment is expected to see over 20% sequential growth in 2025 due to new contracted offshore volumes [11][13] - The Marine Transportation segment is anticipated to deliver record results in 2025, driven by increased operational days and steady to rising day rates [13][14] - The Soda and Sulfur Services segment is expected to maintain segment margins similar to 2024 due to ongoing market challenges [16][36] Market Data and Key Metrics Changes - The soda ash market is currently well-supplied, with mixed demand, particularly outside of China, which is expected to keep prices low in the short term [15][33] - Recent supply reductions in synthetic soda ash production are anticipated to help balance the market and potentially improve prices in 2025 and beyond [35][36] Company Strategy and Development Direction - The company is committed to not pursuing capital-intensive projects in the near future and plans to use excess cash flow to pay down debt and return capital to unitholders [18][19] - Future developments, including Shenandoah and Salamanca, are expected to significantly enhance cash flows and production capabilities [26][30] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term prospects of the company, focusing on growth driven by new offshore volumes and structural tailwinds in the marine segment [11][39] - The company expects to begin harvesting significant cash flows above operational costs starting later this year [39][41] Other Important Information - The company is experiencing mechanical issues affecting offshore production, but operators expect no long-term negative impacts, with production levels anticipated to return to previous rates [20][21] - The company is actively working on optimizing operating performance and reducing costs in response to current market conditions [32] Q&A Session Summary Question: Challenges faced by offshore producers and potential cash flow impacts - Management indicated that the guidance incorporates expected outcomes, estimating a cash flow impact of $5 million to $10 million if production remains offline throughout 2025 [46] Question: 2026 EBITDA forecast assumptions - The EBITDA forecast for 2026 is considered reasonably flat compared to 2025, with potential for upside depending on market conditions [48] Question: Capital allocation priorities and bank perspectives - Management clarified that banks treat the company's capital structure with 100% equity treatment, allowing flexibility in capital allocation as they approach their long-term leverage targets [53][55] Question: Timing and magnitude of potential distribution increases - The board will evaluate capital allocation at the appropriate time, with a focus on multiple uses of excess cash flow [58] Question: Contracting season and end market demand for soda ash - The contracting season went as expected, with management anticipating price increases in 2025 due to supply reductions and demand recovery [60][62]

4Q 2024 Earnings Supplement 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 activities, events or developments that we expect, believe or anticipate will or may occur in t ...

Financial Performance - Genesis Energy reported a net loss of $49.4 million for Q4 2024, compared to a net income of $12.0 million in Q4 2023[4]. - Revenues for the 2024 Quarter were $725.6 million, down from $774.1 million in the 2023 Quarter, representing a decrease of approximately 6.7%[30]. - Operating income for the 2024 Quarter was $32.1 million, a decrease from $65.6 million in the 2023 Quarter[30]. - Net income attributable to Genesis Energy, L.P. for Q4 2024 was $(49,379) thousand, a decrease from $11,950 thousand in Q4 2023[35]. - Adjusted EBITDA for Q4 2024 was $160,607 thousand, compared to $188,749 thousand in Q4 2023, reflecting a decrease of 14.9%[38]. - Interest expense for Q4 2024 increased to $75,647 thousand from $60,606 thousand in Q4 2023, marking a rise of 24.5%[38]. - Available Cash before Reserves for Q4 2024 was $43,282 thousand, significantly lower than $88,259 thousand in Q4 2023[38]. - Total cash flows from operating activities for Q4 2024 were $73,968 thousand, down from $124,762 thousand in Q4 2023[40]. Segment Performance - Total segment margin for Q4 2024 was $172.5 million, down from $209.4 million in Q4 2023, reflecting a decrease of approximately 18%[20]. - The offshore pipeline transportation segment margin decreased by $29.5 million, or 28%, primarily due to producer underperformance and increased operating costs[21]. - Soda and sulfur services segment margin decreased by $6.4 million, or 10%, in the 2024 Quarter compared to the 2023 Quarter, primarily due to lower export pricing and NaHS sales volumes[22]. - Marine transportation segment margin decreased by $0.8 million, or 3%, in the 2024 Quarter, attributed to increased regulatory dry-docking days[23]. - Onshore facilities and transportation segment margin decreased by $0.2 million, or 3%, in the 2024 Quarter, mainly due to a decrease in volumes on onshore crude oil pipeline systems[24]. - Segment Margin for Q4 2024 was $172,524 thousand, down 17.6% from $209,418 thousand in Q4 2023[35]. Future Outlook - Genesis Energy expects to achieve cash flow positivity in the second half of 2025 as capital-intensive projects are completed[4]. - The company anticipates an Adjusted EBITDA of around $700 million for 2025 and $800 million for 2026, assuming no significant improvement in the soda ash business[19]. - The new Shenandoah and Salamanca developments are expected to add upwards of 200,000 barrels per day of incremental production capacity, with first production scheduled for late Q2 2025[7]. - The soda ash market is expected to remain challenging through at least the first half of 2025, with prices under pressure due to oversupply and weak global demand[8]. Impairment and Expenses - Impairment expense of $43.0 million was recorded in the 2024 Quarter due to the termination of an ongoing project related to corporate enterprise resource planning systems[26]. - Corporate general and administrative expenses for Q4 2024 were $8,698 thousand, a decrease from $21,296 thousand in Q4 2023[35]. - Maintenance capital expenditures for Q4 2024 were $44.2 million, up from $38.1 million in Q4 2023[39]. - Impairment expense for Q4 2024 was $43,003 thousand, with no impairment recorded in Q4 2023[35]. Cash Flow and Capital Expenditures - The company’s ability to generate cash is crucial for meeting non-discretionary cash requirements, including maintenance capital expenditures[59]. - The transition to discretionary maintenance capital expenditures may lead to increased operating expenses if expenditures are deferred[53]. - Maintenance capital expenditures have shifted from being predominantly non-discretionary to a significant portion being discretionary since 2014, impacting the analysis of Available Cash before Reserves[53]. - The maintenance capital utilized measure reflects only expenditures incurred since December 31, 2013, highlighting a shift in financial reporting practices[56]. - The maintenance capital utilized measure is defined as the portion of previously incurred maintenance capital expenditures utilized during the quarter, reflecting a more accurate assessment of cash availability[55]. Market Conditions - The average daily utilization percentage for the inland fleet was 96.7% in the 2024 Quarter, down from 100.0% in the 2023 Quarter[32]. - Soda ash volumes sold increased to 993,237 short tons in the 2024 Quarter, up from 901,874 short tons in the 2023 Quarter, reflecting a growth of approximately 10.1%[32]. - Unrealized losses on derivative transactions for the year ended December 31, 2023, amounted to $36,688, indicating volatility in financial results[58].

Core Insights - Genesis Energy (NYSE: GEL) is identified as a disappointing player in the midstream industry, with its stock price remaining significantly below pre-Covid-19 levels [1]. Company Summary - Genesis Energy's stock performance has not recovered post-Covid-19, indicating potential challenges in its operational or market strategy [1].

Genesis Energy, L.P. 3Q 2024 Earnings Supplement October 31, 2024 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 activities, events or developments that we expect, believ ...

Financial Data and Key Metrics Changes - The financial performance in the first three quarters of 2024 has been below original expectations, primarily due to one-time items and factors outside of the company's control [10][11][12] - The company expects to achieve growth in adjusted EBITDA in 2025 compared to 2024, driven by midyear startup of contracted offshore developments and resolution of technical operational issues [15][16] Business Segment Data and Key Metrics Changes - The Offshore Pipeline Transportation segment has faced operational and technical issues affecting financial performance, with delays in repairs due to weather challenges [18][20][21] - The Soda and Sulfur Services segment has underperformed expectations due to production challenges and higher maintenance costs at the Westvaco facility, with a focus on identifying root causes and reducing costs [32][34][41] - The Marine Transportation segment is expected to see a sequential improvement due to fewer scheduled dry docks and strong market fundamentals, with potential year-over-year growth exceeding 10% [42][44] Market Data and Key Metrics Changes - The soda ash market has become increasingly competitive, with higher supply from China leading to expectations of lower export prices in the fourth quarter [35][36][39] - The company anticipates that the current softness in soda ash prices will last until early 2025, with a return to a more balanced market expected thereafter [36][41] Company Strategy and Development Direction - The company has identified no growth capital projects in the near term, focusing instead on maximizing cash flow and simplifying its capital structure [16][47] - The offshore expansion project is on schedule, with expectations to complete construction by the end of the year and begin production in the second quarter of 2025 [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming current challenges and achieving a more constructive operating environment by year-end [11][12] - The company remains focused on cost-cutting and efficiency opportunities to offset near-term challenges and is optimistic about long-term value creation for stakeholders [12][48] Other Important Information - Recent judicial events regarding the 2020 Biological Opinion could impact permits, but the company does not anticipate future risks and is committed to compliance with environmental regulations [30][31] Q&A Session Summary Question: Regarding the potential delay in raising distributions due to elevated leverage in 2025 - Management indicated it is premature to provide a specific timeline for raising distributions, as they are currently assessing producer profiles and pricing for 2025 [50][51] Question: Impact of soda ash market conditions on EBITDA projections for 2025 and 2026 - Management confirmed that the majority of the delta in EBITDA projections is driven by changes in the soda ash market, with expectations for normalization in 2026 [56][62] Question: Clarification on technical issues affecting offshore operations - Management provided details on rare technical issues impacting production, emphasizing that these are beyond their control and not indicative of long-term operational capabilities [66][75] Question: Production challenges at Westvaco and remediation efforts - Management acknowledged production challenges at Westvaco and outlined ongoing efforts to evaluate processes and reduce costs while maintaining safe operations [77][80]

Financial Performance - Net Loss Attributable to Genesis Energy, L.P. for the 2024 Quarter was $17.2 million, a decrease from Net Income of $58.1 million in the 2023 Quarter[99]. - Cash flow from operating activities decreased to $87.3 million in the 2024 Quarter, down from $141.0 million in the 2023 Quarter[99]. - Available Cash before Reserves for common unitholders was $24.5 million, a decrease of $64.5 million, or 72%, from the 2023 Quarter[99]. - Revenues for the 2024 Quarter decreased by $93.3 million, or 12%, compared to the 2023 Quarter[104]. - Net income attributable to Genesis Energy, L.P. for the three months ended September 30, 2024, was $(17,177) thousand, compared to $58,070 thousand for the same period in 2023, representing a significant decline[108]. - The net loss attributable to common unitholders for the nine months ended September 30, 2024, was $101.7 million, compared to a net income of $58.1 million in the same period of 2023[154]. Segment Performance - Segment Margin for the 2024 Quarter was $151.1 million, a decrease of $56.8 million, or 27%, from the 2023 Quarter[99]. - Offshore pipeline transportation Segment Margin was $72.1 million in the 2024 Quarter, down from $109.3 million in the 2023 Quarter[106]. - Soda and sulfur services Segment Margin was $38.2 million in the 2024 Quarter, a decrease from $62.0 million in the 2023 Quarter[106]. - Marine transportation Segment Margin increased to $31.1 million in the 2024 Quarter, up from $27.1 million in the 2023 Quarter[106]. - Offshore pipeline transportation segment margin decreased by $37.1 million, or 34%, in the 2024 quarter compared to the 2023 quarter, primarily due to an economic step-down in transportation rates and increased operating costs[113]. - Segment margin for the soda and sulfur services segment was $38,188 thousand for the three months ended September 30, 2024, down from $61,957 thousand in the same period of 2023, a decrease of approximately 38.3%[116]. - Marine transportation segment margin for Q3 2024 increased by $3.9 million, or 15%, driven by higher day rates in inland and offshore businesses[121]. - For the first nine months of 2024, marine transportation segment margin increased by $15.4 million, or 20%, due to increased day rates and strong demand for barge services[122]. Revenue and Pricing Trends - Average closing price for West Texas Intermediate crude oil decreased to $76.43 per barrel in the 2024 Quarter, down from $82.25 per barrel in the 2023 Quarter[104]. - Average index price for caustic soda decreased to $502 per dry short ton in the 2024 Quarter, compared to $992 per dry short ton in the 2023 Quarter[105]. - Total external segment revenues for the soda and sulfur services segment decreased to $355,099 thousand in the three months ended September 30, 2024, from $401,667 thousand in the same period of 2023, a decline of about 11.6%[116]. - Offshore crude oil pipeline revenue for the three months ended September 30, 2024, was $64,103 thousand, down from $88,399 thousand in the same period of 2023, indicating a decrease of approximately 27.4%[111]. - Natural gas transportation volumes decreased to 393,240 MMBtus/day in the three months ended September 30, 2024, compared to 408,866 MMBtus/day in the same period of 2023, a decline of about 3.8%[111]. Capital Expenditures and Investments - Total capital expenditures for fixed and intangible assets for the nine months ended September 30, 2024, amounted to $358.8 million, compared to $423.7 million in the same period of 2023, reflecting a decrease of approximately 15.4%[147]. - Maintenance capital expenditures for the first nine months of 2024 totaled $128.6 million, an increase from $86.9 million in the same period of 2023[147]. - Growth capital expenditures for the first nine months of 2024 were $230.2 million, down from $336.8 million in the same period of 2023, indicating a decrease of approximately 31.6%[147]. - The company plans to fund estimated growth capital expenditures using available borrowing capacity under its senior secured credit facility and recurring cash flows from operations[148]. Debt and Liquidity - At September 30, 2024, the principal amount of debt outstanding totaled approximately $4.1 billion, including $3.5 billion of senior unsecured notes[140]. - The available borrowing capacity under the senior secured credit facility at September 30, 2024 is $687.9 million, subject to compliance with covenants[142]. - Current assets as of September 30, 2024, were $887.1 million, while current liabilities were $842.1 million, indicating a healthy liquidity position[153]. Operational Insights and Future Outlook - The company anticipates resolving operational and technical issues affecting production by the end of 2024, which should improve future performance[113]. - The Monument development project is expected to come online in mid to late 2026, indicating ongoing market expansion efforts[113]. - The Argos Floating Production System achieved production levels exceeding 120,000 barrels of oil per day in 2024, contributing positively to overall production volumes[114]. - The company anticipates future capital expenditures and growth strategies, although specific figures were not disclosed[168]. - The company is focused on executing business and financial strategies to realize cost savings and improve operational performance[169]. Risks and Regulatory Environment - The company acknowledges risks related to global economic conditions, including inflation and interest rates, which may impact financial performance[169]. - The company is actively monitoring changes in laws and regulations that could affect operations and financial results[169]. - The company highlights the potential impact of geopolitical tensions and global events on its business operations and financial condition[169]. - No material changes affecting quantitative and qualitative disclosures about market risk have occurred since the last Annual Report[172].

Financial Performance - Net Loss Attributable to Genesis Energy, L.P. of $17.2 million for Q3 2024 compared to Net Income of $58.1 million for Q3 2023[1] - Net Loss Attributable to Genesis Energy, L.P. was $17.2 million in the 2024 Quarter compared to Net Income of $58.1 million in the 2023 Quarter[28] - Net income (loss) attributable to Genesis Energy, L.P. was $(17.2) million for Q3 2024, compared to $58.1 million in Q3 2023[39] - Adjusted EBITDA for Q3 2024 was $136.7 million, down from $190.6 million in Q3 2023[41] - Segment Margin for Q3 2024 was $151.1 million, compared to $207.9 million in Q3 2023[39] Cash Flow and Liquidity - Cash Flows from Operating Activities of $87.3 million for Q3 2024 compared to $141.0 million for Q3 2023[2] - Available Cash before Reserves to common unitholders of $24.5 million for Q3 2024, providing 1.21X coverage for the quarterly distribution of $0.165 per common unit[3] - Available Cash before Reserves for Q3 2024 was $24.5 million, significantly lower than $89.0 million in Q3 2023[41] - Cash flows from operating activities for Q3 2024 were $87.3 million, down from $141.0 million in Q3 2023[45] Segment Performance - Offshore pipeline transportation Segment Margin decreased by $37.1 million (34%) in Q3 2024 compared to Q3 2023 due to economic step-downs, producer underperformance, and increased operating costs[24] - Soda and sulfur services Segment Margin decreased by $23.8 million (38%) in the 2024 Quarter due to lower export pricing and sales volumes in the Alkali Business, partially offset by higher soda ash sales volumes[25] - Marine transportation Segment Margin increased by $3.9 million (15%) in the 2024 Quarter due to higher day rates in inland and offshore businesses[26] - Onshore facilities and transportation Segment Margin increased by $0.2 million (2%) in the 2024 Quarter due to higher rail unload volumes at the Scenic Station facility[27] Soda Ash Business - Soda ash business missed more than 300,000 tons from the original forecasted total sales volumes for 2024 due to operational challenges at the Westvaco facility[8] - Global soda ash market faces challenges with increased export availability from China, leading to lower prices in Q4 2024[17] - Soda Ash volumes sold increased to 995,856 short tons in the 2024 Quarter from 867,319 short tons in the 2023 Quarter[35] Offshore and Marine Operations - Offshore construction projects remain on schedule, with Shenandoah and Salamanca developments expected to begin in Q2 2025, adding nearly 200,000 barrels of oil per day of incremental production handling capacity[15] - Marine transportation segment operates with utilization rates at or near 100% of available capacity, with day rates expected to increase further[21] - Offshore crude oil pipelines total volumes decreased to 624,551 barrels/day in the 2024 Quarter from 681,725 barrels/day in the 2023 Quarter[35] - Offshore Fleet Utilization Percentage decreased to 97.4% in the 2024 Quarter from 98.5% in the 2023 Quarter[35] Onshore Operations - Onshore crude oil pipelines total volumes decreased to 124,470 barrels/day in the 2024 Quarter from 138,364 barrels/day in the 2023 Quarter[35] - Crude oil and petroleum products sales decreased to 18,978 barrels/day in the 2024 Quarter from 23,703 barrels/day in the 2023 Quarter[35] Financial Position and Debt - Adjusted Consolidated EBITDA of $741.7 million for the trailing twelve months ended September 30, 2024, with a bank leverage ratio of 4.84X[4] - Adjusted Debt-to-Adjusted Consolidated EBITDA ratio stood at 4.84X as of September 30, 2024[47] - Senior unsecured notes increased to $3,419.0 million as of September 30, 2024, up from $3,063.0 million at the end of 2023[37] - Total current liabilities decreased to $897.0 million as of September 30, 2024, from $967.4 million at the end of 2023[37] Capital Expenditures - Maintenance capital expenditures for Q3 2024 were $55.0 million, up from $33.6 million in Q3 2023[43] - Maintenance capital expenditures are categorized as discretionary or non-discretionary, with non-discretionary expenditures being necessary for safe and reliable operations[54][55] - The company introduced a maintenance capital utilized measure in 2014 to better reflect non-discretionary maintenance capital expenditures[59] Non-GAAP Measures - The company uses non-GAAP measures such as Adjusted EBITDA and Available Cash before Reserves to assess financial performance, with reconciliations provided to GAAP measures[49] - 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[51] - Adjusted EBITDA is used to evaluate financial performance without regard to financing methods, capital structures, or historical cost basis[61] - The reconciliation of Net income to Adjusted EBITDA includes Select Items such as unrealized losses on derivative transactions and adjustments for equity investees[62] - Segment Margin is defined as revenues less product costs, operating expenses, and segment general and administrative expenses, adjusted for Select Items[64] Future Outlook - Genesis Energy expects Adjusted EBITDA growth starting in 2025, with minimal future growth capital expenditures and no near-term unsecured debt maturities[10]

Genesis Energy, L.P. (NYSE:GEL) Q2 2024 Earnings Conference Call August 1, 2024 10:00 AM ET Company Participants Dwayne Morley - Vice President, Investor Relations Grant Sims - Chief Executive Officer Kristen Jesulaitis - Chief Financial Officer and CLO Ryan Sims - President and CCO Louie Nicol - Chief Accounting Officer Conference Call Participants Michael Blum - Wells Fargo Wade Suki - Capital One Operator Greetings and welcome to the Genesis Energy L.P. Second Quarter 2024 Earnings Conference Call. At th ...