Genesis Energy (GEL) investor relations material

Executive summary

• Adjusted EBITDA was $122.9 million for Q2 2025, with major offshore projects Shenandoah and Salamanca driving future growth and financial flexibility.

• Net income from continuing operations was $10.0 million for Q2 2025, up from a net loss of $4.0 million in Q2 2024, aided by higher operating income and lower expenses.

• Offshore pipeline transportation segment saw sequential improvement as previously shut-in wells returned to service and Shenandoah began contributing.

• Salamanca project remains on track for first oil by end of Q3 2025, expected to ramp quickly to 40,000–50,000 barrels/day.

• Sale of the Alkali Business completed in February 2025 for $1.425 billion, enabling debt reduction and capital structure simplification.

Financial highlights

• Q2 2025 revenue was $377.3 million, down from $430.2 million in Q2 2024; total Segment Margin was $135.9 million.

• Adjusted EBITDA for Q2 2025 was $122.9 million; Available Cash before Reserves was $32.2 million, providing 1.59x coverage for the $0.165 per unit distribution.

• Leverage ratio at quarter-end was 5.52x, with a target of approximately 4.0x.

• Maintenance capital expenditures for Q2 2025 were $14.8–$16.8 million.

• Net cash from operating activities for Q2 2025 was $47.0 million, down from $104.7 million in Q2 2024.

Outlook and guidance

• Free cash flow is expected to exceed cash costs starting in Q3 2025, enabling debt reduction and potential capital returns.

• Management expects to exit 2025 with no outstanding borrowings under the revolving credit facility.

• Full-year 2025 Adjusted EBITDA is expected at or near the low end of $545–$575 million guidance due to temporary delays.

• Board will review distribution growth as Adjusted EBITDA rises and cash obligations decrease.

• No lasting impact expected from current production delays; increasing Adjusted EBITDA and free cash flow projected for 2026 and beyond.