Genesis Energy, L.p. · NYSE:GEL
Genesis Energy, L.p — Citi 2024 One-on-One Midstream & New Energy Infrastructure Conference
38 slides from Genesis Energy, L.p's conference presentation, August 2024
Slide 1: Genesis Energy, L.P.
Genesis Energy, L.P. Citi 2024 One-on-One Midstream & New Energy Infrastructure Conference August 2024
Slide 2: Disclosures & Company Information
Disclosures & Company Information Investor Relations Contact InvestorRelations@genlp.com (713) 860-2500 Corporate Headquarters 811 Louisiana, Suite 1200 Houston, TX 77002 Forward-Looking Statements This presentation includes forward-looking statements as defined under federal law. Although we believ
Slide 3: Why Invest in Genesis?
Why Invest in Genesis? Cash Flow Profile Poised to Deliver Increasing Returns to Stakeholders Diverse Portfolio of Long-Lived, Market Leading Businesses with High Barriers to Entry and Significant Operating Leverage Healthy Balance Sheet with Ample Liquidity Provides Significant Financial Flexibilit
Slide 4: Market Leading Businesses
Market Leading Businesses Genesis Total LTM Segment Margin $767 MM(a) Offshore Pipeline Transportation • Practically irreplaceable integrated asset footprint focused on transporting crude oil produced from the deepwater Central Gulf of Mexico to multiple onshore markets 28% • Contracts structured as
Slide 5: Key Takeaways
Key Takeaways Long-Term Thesis Remains In-Tact and Positive; Distribution Growth Begins • Long-term outlook and value proposition for Genesis remains unchanged and totally in-tact – Reported Adjusted EBITDA(a) of $148.9 million in the second quarter, which was in-line with our expectations – Remain
Slide 6: Business Segment Detail
Business Segment Detail Overview
Slide 7: Offshore Pipeline Transportation – Overview
Offshore Pipeline Transportation – Overview World Class Footprint in Leading North American Basin Long-Term Value Creation CHOPS & Poseidon Volumes • ~2,400 miles of pipelines and associated platforms primarily 700 $120 located in the Central Gulf of Mexico +87% 600 $100 • Leading independent midstr
Slide 8: Track Record of Success in the Gulf of Mexico
Track Record of Success in the Gulf of Mexico Driven by Strategic Acquisitions and Organic Growth Mid-2025 Oct. 2010 - $330 mm June 2019 April 2023 Shenandoah & Salamanca FPS Genesis Acquires LLOG operated Buckskin Argos / Mad Dog 2 achieved expected to come on-line 50% interest in July 2014 - $197
Slide 9: Gulf of Mexico Crude Oil Production
Gulf of Mexico Crude Oil Production Continued Growth in the Deepwater Gulf of Mexico Crude Oil Production(a) • Deepwater Gulf of Mexico crude oil production is projected to increase by ~100% from 2013 – 2025E Non-Deepwater Deepwater (>1,000 ft.) Avg. Crude Price (WTI) 2,500 $120 • Production increas
Slide 10: Active Federal Leases in Gulf of Mexico
Active Federal Leases in Gulf of Mexico Proximity to Existing Leases Creates Stability and Opportunity • Inflation Reduction Act of 2022 allows Department of Interior to grant leases, easements and rights-of-way pursuant to the Outer Continental Shelf Lands Act in land areas previous withdrawn from
Slide 11: Central Gulf of Mexico Overview
Central Gulf of Mexico Overview Robust Inventory of Future Growth Ram Powell Petronius Stonefly Delta House Nearly Headless Nick Selected Recent Developments / FIDs Lobster Field Producer First Oil Spruance Katmai / Shenandoah Beacon Mid-2025 Bullwinkle Katmai West • Caicos Baldpate Droshky • Khalee
Slide 12: Gulf of Mexico – Lower Carbon Intensity
Gulf of Mexico – Lower Carbon Intensity Regulatory Oversight Helps Drive Lower Carbon Footprint Gulf of Mexico Plays Leading Role(a) Significant Regulatory Oversight(b) • Barrels produced from the Gulf of Mexico are the least • The leasing and operations activities in the GOM are subject emissions i
Slide 13: NOIA Report – GHG Intensity of Gulf of Mexico
NOIA Report – GHG Intensity of Gulf of Mexico Lower Emission Intensity Should Support Continued Investment Over Time • In May 2023, the National Ocean Industries Association (NOIA) commissioned ICF to study the GHG emission intensity of U.S. oil production compared to oil produced around the world –
Slide 14: Central Gulf of Mexico Midstream Dynamics
Central Gulf of Mexico Midstream Dynamics Uniquely Positioned to Capture Additional Volumes in the Central Gulf of Mexico • Integrated system provides producers with basin leading midstream solution “highway to shore” for deepwater producers – Uniquely positioned to service the continued growth in c
Slide 15: Case Study: Poseidon Oil Pipeline
Case Study: Poseidon Oil Pipeline Irreplaceable Crude Oil Pipeline in the Central Gulf of Mexico • Poseidon Oil Pipeline is a basin critical pipeline that transports Steady Volumes Through Commodity Cycles central Gulf of Mexico production to key markets in Louisiana 350 +33% $120 – Integrated onsho
Slide 16: Offshore Expansion – Project Overview
Offshore Expansion – Project Overview Expanding Basin Critical Infrastructure in the Gulf of Mexico • On May 4th, 2022 Genesis announced it would expand its existing CHOPS system and construct a new 100% owned “SYNC” pipeline to support additional volumes in the central deepwater Gulf of Mexico – Pr
Slide 17: Offshore Expansion – Commercial Support
Offshore Expansion – Commercial Support Supported by Credit Worthy Take-or-Pay Agreements and Life of Lease Dedications • Genesis entered into definitive agreements to provide downstream New Dedicated Deepwater Developments transportation services for two separate standalone deepwater upstream devel
Slide 18: Soda and Sulfur Services – Overview
Soda and Sulfur Services – Overview Two Market Leading Businesses with Vertical Integration • The Soda and Sulfur Services segment is comprised of two market leading businesses, Genesis Alkali and TDC – Genesis Energy’s second largest segment (~28% of LTM total segment margin as of 2Q 2024) – LTM Se
Slide 19: Soda Ash – Business Overview
Soda Ash – Business Overview Largest North American Producer of Low Cost Natural Soda Ash • Market leading soda ash position with steady cash flow profile Genesis has Largest Trona Lease Holding in U.S. and significant barriers to entry • Largest supplier of natural soda ash in the Western 80 km Hem
Slide 20: Soda Ash Operations
Soda Ash Operations Multiple Production Facilities Provides Customers with Volume Assurance • Genesis operates two main soda ash manufacturing sites in Green River, Wyoming – Pro-forma for the Granger expansion Genesis will be the largest soda ash producer in the Western Hemisphere with a combined ~
Slide 21: Long-Term Soda Ash Fundamentals
Long-Term Soda Ash Fundamentals Strong Market Characteristics Driving Long-Term Outlook • Soda Ash is an Essential Component with No Known Substitutes – >60% of global demand is used in the manufacturing of glass (flat, container, automobile, solar panels, etc…)(a) • Soda ash helps glass manufacture
Slide 22: Soda Ash – Market Summary
Soda Ash – Market Summary Supply / Demand Balance Expected to Remain Tight over Long-Term • U.S. demand is relatively stable Historical U.S. Natural Soda Ash Pricing(a) $170 • Domestic natural soda ash production competitively positioned vs. $162 $160 global high-cost synthetic production to supply
Slide 23: Soda Ash – Demand Drivers
Soda Ash – Demand Drivers Growing Global Demand (Ex. China) Driven by Emerging Middle Class & Green Initiatives • Soda ash demand is driven by a diversified set of global end 2023 Global End-Markets (%)(a)(b) markets Lithium Metals / Carbonate Mining • Approximately 85% of global demand from glass,
Slide 24: Natural Soda Ash Advantages
Natural Soda Ash Advantages Low-Cost Position and Lower Carbon Footprint Provide Competitive Advantages • Genesis is a low-cost producer of natural soda ash Natural vs. Synthetic Production(a) – Synthetic production is ~70% of global supply but more than 2x as expensive to produce when compared to U
Slide 25: Granger Facility Expansion
Granger Facility Expansion Project Overview December 2021 • The Granger soda ash facility originally opened in 1976 as dry ore mine producing ~1.3 million tons/yr. – Converted to inefficient solution mine operation in 2011 with only ~500k tons/yr. of topside evaporative capacity • Granger expansion
Slide 26: Sulfur Services – Business Overview
Sulfur Services – Business Overview Market Leader of NaHS Production and Leading Provider of Sulfur Removal Services • Produce sodium hydrosulfide (“NaHS”) through proprietary Sales by Industry(a) process reacting high hydrogen sulfide (“H2S”) gas with Caustic Soda (“NaOH”) • Sour “Gas Processing” u
Slide 27: Facilitating Lower Refinery Emissions
Facilitating Lower Refinery Emissions NaHS Technology Helping Reduce Host Refinery and End Customer Emissions • Proprietary technology used to facilitate the eco-friendly NaHS Production Process removal of sulfur entrained in crude oil and its finished refined High H2S products Gas Stream Chlor-Alka
Slide 28: Marine Transportation – Overview
Marine Transportation – Overview Improving Fundamentals & High Degree of Operating Leverage • Inland barges are mostly all asphalt capable, heated barges Genesis Marine Equipment primarily utilized in black oil service (95%) American Inland Offshore • Business operates with largely fixed costs and a
Slide 29: Onshore Facilities & Transportation – Overview
Onshore Facilities & Transportation – Overview Integrated Asset Footprint with Exposure to Significant Refinery Demand Baton Rouge Complex Texas City Terminal Raceland Terminal Other Legacy Onshore Assets • Integral part of ExxonMobil’s Baton • Connection to Genesis owned • Connection to Genesis own
Slide 30: Appendix & Reconciliations
Appendix & Reconciliations
Slide 31: Corporate Information
Corporate Information Debt and Preferred Equity Profile & Corporate Structure Balance Sheet Overview Corporate Structure(a) • Committed to long-term leverage ratio(b) at or near 4.00x Series A Class A Class B Convertible • 2Q 2024 leverage ratio(b) of 4.47x Common Units Common Units Preferred Units
Slide 32: Sustainability
Sustainability Supporting Business Priorities & Our Investors Through Sustainability • Genesis is committed to operating its business in a responsible and sustainable manner – Released inaugural sustainability report in May 2023 and 2022 report in December 2023 – In June 2024 upgraded by MSCI to BBB
Slide 33: Actively Participating in Green Activities
Actively Participating in Green Activities Helping Facilitate the Energy Transition & Lower Emission Activities Soda & Sulfur Services • Our soda ash business should increasingly participate in multiple renewable energy themes moving forward – Demand for soda ash driven by the production of new LEED
Slide 34: Balance Sheet & Credit Profile
Balance Sheet & Credit Profile Leverage Ratio & Common Unit Distribution Coverage Ratio (a) We define Adjusted Debt as the amounts outstanding under our senior secured credit facility and senior unsecured notes (including any unamortized premiums, discounts or issuance costs) less the amount outstan
Slide 35: Reconciliation: Segment Margin
Reconciliation Segment Margin (a) On April 29, 2022, we sold our Independence Hub platform and recognized a gain on the sale of $40.0 million, of which $32.0 million was attributable to our 80% ownership interest. (b) The year ended December 31, 2022 includes income associated with the repurchase an
Slide 36: Reconciliation: Available Cash Before Reserves
Reconciliation Available Cash Before Reserves (a) The year ended December 31, 2022 includes paid-in-kind distributions, accretion on the redemption feature and valuation adjustments to the redemption feature as the associated preferred units were redeemed during the second quarter of 2022. (b) Refer
Slide 37: Reconciliation: Adjusted Debt & Adjusted Consolidated EBITDA
Reconciliation Adjusted Debt & Adjusted Consolidated EBITDA (a) We define Adjusted Debt as the amounts outstanding under our senior secured credit facility and senior unsecured notes (including any unamortized premiums, discounts or issuance costs) less the amount outstanding under our inventory fin
Slide 38: Reconciliation: Select Items
Reconciliation Select Items (a) Includes the difference in timing of cash receipts from or billings to customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. For purposes of our non-GAAP measures, we add those amounts in the period of payment and d
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