Genesis Energy LP (NYSE:GEL) reported fourth-quarter 2025 earnings that came in below Wall Street expectations, though revenue rose year over year and offshore operations delivered solid momentum.
Adjusted earnings per unit were $0.04, well under the $0.28 consensus forecast. Revenue totaled $440.75 million, up from $398.92 million in the same quarter of 2024.
Shares edged 0.2% higher in after-hours trading following the release.
Net income attributable to the partnership reached $19.9 million for the quarter, compared with a net loss of $49.4 million a year earlier. Total Segment Margin increased to $174.0 million from $122.0 million in the prior-year period, largely reflecting stronger results in the offshore pipeline transportation segment.
Offshore pipeline transportation posted a 57% sequential rise in Segment Margin versus the first quarter of 2025, supported by the resolution of producer mechanical issues and robust throughput from the Shenandoah and Salamanca developments.
“Our fourth quarter results were slightly ahead of our internal expectations,” said CEO Grant Sims. “Offshore pipeline volumes came in strong, supported by steady volumes from our legacy fields and a full quarter of Shenandoah throughput well above the minimum volume commitment.”
Genesis raised its quarterly distribution to common unitholders to $0.18 per unit, a 9.1% increase from the same quarter last year. The partnership also reduced borrowings under its senior secured revolving credit facility to roughly $6.4 million at year-end.
Looking to 2026, management expects Adjusted EBITDA to grow sequentially by 15% to 20% compared with normalized 2025 levels, driven primarily by continued project development in the Gulf of America.