Genesis Energy, L.P. (NYSE:GEL) reported a smaller net loss for the second quarter of 2025, as improved performance in its offshore pipeline segment and initial contributions from its Shenandoah development bolstered results.
Following the earnings announcement, the company’s stock edged up 1.20% in after-hours trading.
Genesis posted a net loss attributable to the partnership of $0.4 million for the quarter, a notable improvement from the $8.7 million loss reported in the same quarter last year. However, adjusted earnings per unit were -$0.12, slightly missing analysts’ expectations of -$0.09. Quarterly revenue came in at $377.34 million, down from $430.18 million in Q2 2024.
The offshore pipeline transportation segment posted a 2% increase in margin to $87.6 million. This was primarily due to the start of minimum volume commitments on the SYNC and CHOPS pipelines tied to the Shenandoah development, which began producing 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 CEO Grant Sims.
“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.”
Not all segments performed as strongly. Marine transportation segment margins dropped 5% to $29.8 million, weighed down by reduced utilization in inland barge operations. The onshore transportation and services segment also saw a 9% decline in margin, falling to $18.5 million, largely due to decreased sales volumes of NaHS and caustic soda.
Looking ahead, Genesis expects its Salamanca development to begin production by the end of Q3. The company also said it now anticipates its full-year 2025 adjusted EBITDA to come in at or near the lower end of its previous guidance range of $545 million to $575 million.
Genesis ended the quarter with $72 million drawn on its senior secured revolving credit facility and plans to begin reducing this balance using projected free cash flow starting in the third quarter.
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