GENESIS ENERGY LP Q3 FY2024 earnings call

• 2024 was expected to be a transition year, but was more challenging than anticipated with many issues outside control. • Expect 2025 growth in certain segments due to midyear startup of offshore developments, marine transportation improvement from fewer dry docks, and onshore facilities improvement. • Offshore expansion project on schedule, with Shenandoah and Salamanca developments on track for 2025 startup. • Soda and sulfur services face challenges into 2025, with macroeconomic headwinds affecting soda ash prices and production issues in sulfur services. • Focus on cost-cutting and efficiency opportunities to offset near-term challenges.

Genesis Energy has four business segments. The Offshore Pipeline Transportation segment was negatively affected by operational and technical issues at large fields, with production restoration delayed to year-end. The Soda and sulfur services segment had the soda ash business underperform due to production challenges and higher maintenance, and sulfur services faced production issues and competitive pressures. The Onshore facilities and transportation segment is expected to have sequential improvement. The Marine transportation segment operated with utilization near 100%, nearing completion of dry dockings, and expects sequential improvement in 2025. Revenue contribution details weren't explicitly given in absolute terms and percentages in the transcript beyond the qualitative descriptions.

• Expect growth in adjusted EBITDA in 2025 over 2024. • Believe will be cash flow positive in 2025 with limited growth capital spending. • Challenges in soda and sulfur services continuing into 2025, but still expect growth in adjusted EBITDA. • Plan to use excess cash flow to simplify and strengthen capital structure by redeeming high-cost convertible preferred and paying down debt.

• Judicial events surrounding the 2020 Biological Opinion could impact permits, but upstream community is addressing it. • Operational issues in offshore fields and soda/sulfur services affecting performance. • Macroeconomic headwinds pressuring soda ash prices early in 2025. • Competitive pressures from Chinese flake and South American sulfur.

Q: Michael Blum asked about 2025 and if the point to meaningfully raise distribution could be delayed.

A: Grant Sims said it's premature to answer, they're putting together 2025 plan, with soda prices and cost-cutting being factors, and will detail in January.

Q: Wade Suki asked about delta between prior view and today, and details on offshore technical issues.

A: Grant Sims discussed onetime issues in offshore like casing loss and sleeve failures, and that majority delta is from soda ash environment and offshore delays.

Q: Elvira Scotto asked about issues at Westvaco and remediation efforts.

A: Grant Sims talked about production issues at Westvaco due to structural and conveyor belt issues, with focus on fixing processes and cost-cutting to benefit from market turnaround.