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HOUSTON - Genesis Energy, L.P. (NYSE:GEL) reported a narrower second quarter net loss on Thursday as the company’s offshore pipeline transportation segment improved and its Shenandoah development began contributing to revenue.
The company’s stock rose 1.20% in after hours trading following the results.
The midstream energy partnership posted a net loss attributable to Genesis Energy of $0.4 million for the second quarter of 2025, compared to a net loss of $8.7 million in the same period last year. Adjusted earnings per unit came in at -$0.12, missing analyst estimates of -$0.09. Revenue for the quarter was $377.34 million, down from $430.18 million in the second quarter of 2024.
The company’s offshore pipeline transportation segment saw a 2% increase in segment margin to $87.6 million, driven by the commencement of contractual minimum volume commitments on its SYNC Pipeline and CHOPS Pipeline associated with the Shenandoah development that began in June 2025.
"The second quarter 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," said Grant Sims, CEO of Genesis Energy. "More importantly, 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 just last week."
The company’s marine transportation segment margin decreased 5% to $29.8 million due to lower utilization rates in its inland barge services. Onshore transportation and services segment margin fell 9% to $18.5 million, primarily due to lower NaHS and caustic soda sales volumes.
Genesis Energy expects its Salamanca project to achieve first oil by the end of the third quarter. The company now anticipates full-year 2025 Adjusted EBITDA to be at or near the low end of its prior guidance range of $545-$575 million.
The company exited the quarter with approximately $72 million outstanding on its senior secured revolving credit facility and expects to use estimated free cash flow to begin paying down the revolver balance in the third quarter.
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