Genesis Energy reported third‑quarter 2025 financial results, delivering a total segment margin of $146.6 million, a 40 % increase from the $135.9 million margin posted in Q2 2025 and a 40 % rise over the $109.5 million margin in Q3 2024.
Offshore pipeline transportation generated a margin of $101.3 million, up 40 % from $72.1 million in Q3 2024. The growth was driven by the first‑oil milestone of the Shenandoah floating production system on July 25 2025 and the ramp‑up of the Salamanca FPS, which together increased throughput volumes and contractual minimum volume commitments.
Marine transportation margin fell to $25.6 million from $31.1 million in Q3 2024, reflecting temporary headwinds from higher operating costs and a decline in freight rates. Onshore transportation and services margin rose to $19.7 million from $18.8 million in Q3 2024, supported by increased throughput volumes and stable pricing.
Management projected full‑year 2025 Adjusted EBITDA of $540 million, slightly below the low end of its $545–$575 million guidance range. The shortfall was attributed to extended mechanical issues in the first half of the year and timing delays in receiving first oil from the Shenandoah and Salamanca projects.
The company generated excess cash in Q3 2025, using it to reduce borrowings under its senior secured revolving credit facility. Deleveraging continues as Genesis plans to cut debt and improve its leverage ratio toward a target of approximately 4×.
Genesis also completed the divestiture of its Alkali Business in Q1 2025 for $1.425 billion, a transaction that further strengthened its balance sheet and supported the company’s free‑cash‑flow generation starting in Q3 2025.
Looking ahead, management expects higher Adjusted EBITDA and free cash flow in 2026 and beyond, and has revised its FY2026 guidance for normalized ebitdaf to $455 million–$485 million.
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