Genesis Energy, L.P. (GEL): PESTLE Analysis [Nov-2025 Updated]

You're looking at Genesis Energy, L.P. (GEL) and seeing a clear conflict: massive political tailwinds versus a critical financial hurdle. Right now, the US administration's aggressively pro-fossil fuel stance is creating a powerful boost for GEL's Gulf of America deepwater pipeline assets, especially with BOEM planning up to 34 potential offshore lease auctions from 2026-2031. But honestly, that upside is balanced by the need to urgently deleverage; the company's debt-to-Adjusted EBITDA ratio is high at 5.52x as of mid-2025, well above their 4.0x target, even after the $1.425 billion soda ash sale. We've mapped out the full Political, Economic, and Technological landscape so you can see exactly where the full-year 2025 revenue forecast of $1,520 million will be made-or broken-by regulatory shifts and debt reduction execution.

Genesis Energy, L.P. (GEL) - PESTLE Analysis: Political factors

Pro-fossil fuel administration driving new offshore lease sales.

The current political environment in the US, as of late 2025, is defintely pro-fossil fuel development, which is a significant tailwind for Genesis Energy, L.P. (GEL). The administration has actively sought to expand domestic energy production, specifically targeting the Outer Continental Shelf (OCS) for new drilling opportunities. This policy shift directly supports GEL's core business of offshore pipeline transportation and infrastructure, primarily in the Gulf of Mexico (GoM).

This political directive has already translated into tangible progress for the midstream sector. For example, GEL is benefiting from the completion of key offshore pipeline projects, like the Shenandoah and Salamanca developments, scheduled to come online in the second quarter of 2025 (2Q25). These projects alone are expected to add nearly 200,000 barrels per day of incremental production handling capacity to GEL's system, an immediate and concrete benefit of sustained GoM investment.

BOEM planning up to 34 potential offshore lease auctions from 2026-2031.

The Bureau of Ocean Energy Management (BOEM) has proposed an aggressive new leasing schedule, the 11th National Outer Continental Shelf Oil and Gas Leasing Program, which is a clear signal of long-term government support. This draft plan proposes up to 34 potential offshore lease sales across 21 planning areas between 2026 and 2031, replacing the previous, more restrictive program.

This proposed expansion is a critical indicator of future volume for GEL's infrastructure. While the plan covers Alaska and the Pacific, the most relevant area for GEL is the Gulf of Mexico (GoM), which is slated for seven potential lease sales during this period. This planned, predictable cadence of auctions is exactly what long-cycle, capital-intensive midstream businesses need to justify new investment.

Here's the quick math: more lease sales lead to more drilling, which means more demand for GEL's pipelines, which are essentially toll roads for crude oil and natural gas. This level of political commitment reduces regulatory uncertainty, allowing for more confident capital allocation decisions.

Geopolitical stability risks in the Middle East drive demand for secure US GoM oil supply.

Geopolitical instability, particularly in the Middle East, acts as a powerful political driver for US domestic energy security, benefiting GoM production. The fragility of global supply chains was starkly highlighted in 2025. For instance, following an escalation in the U.S.-Iran conflict in June 2025, the price of Brent crude oil spiked from $69 per barrel to $79 per barrel in a single week.

This volatility underscores the strategic value of secure, non-OPEC supply from politically stable regions like the US GoM. The US government views GoM production, which accounts for approximately 15% of US domestic oil output, as a crucial national security asset. This political imperative to ensure energy security translates into continued support for the infrastructure that moves this oil, which is GEL's core competency.

Increased US LNG export focus boosts demand for midstream infrastructure.

The US focus on becoming the world's largest exporter of Liquefied Natural Gas (LNG) is creating a massive demand pull for midstream infrastructure. This is primarily a natural gas story, but it affects the entire energy ecosystem, including GEL's marine and pipeline segments.

The numbers here are compelling: LNG export demand is projected to average 14.6 Bcf/d in 2025, representing a significant 24% increase over 2023 levels. This growth requires a massive build-out of pipelines to get the gas from the production basins to the liquefaction terminals along the Gulf Coast. While GEL is primarily an oil and natural gas liquids (NGL) player, this overall surge in Gulf Coast energy activity boosts demand for its marine transportation services and creates opportunities for its NGL pipelines to handle associated liquids from the increased gas production.

Key political and market drivers for midstream demand in 2025 include:

• LNG export demand is expected to almost double by 2030, led by new liquefaction facilities.
• The midstream sector is seeing an improving outlook for cash flow, supported by expected significant natural gas volume growth.
• New pipeline projects, like the Louisiana Energy Gateway, are coming online to move gas to South Louisiana export facilities.

The political decision to prioritize LNG exports effectively creates a floor of demand for the entire Gulf Coast energy infrastructure, which is a major long-term positive for GEL.

Genesis Energy, L.P. (GEL) - PESTLE Analysis: Economic factors

You're looking at Genesis Energy, L.P. (GEL) at a pivotal moment. The economic picture for the company in 2025 is a classic midstream energy story: significant deleveraging and a critical shift toward cash generation, but still burdened by a high leverage ratio. The major economic factor this year is the strategic simplification of the business, which is defintely a good move for long-term stability.

Full-year 2025 revenue forecast at $1,520 million.

The full-year 2025 revenue forecast for Genesis Energy, L.P. is projected at approximately $1,520 million. This figure reflects the significant impact of the strategic divestiture of the non-core soda ash business in the first quarter, which was a major revenue contributor in previous years. The company is now focused squarely on its midstream energy assets, particularly the high-growth offshore pipeline transportation segment. For context, the trailing twelve-month (TTM) revenue as of September 30, 2025, was approximately $2.89 billion, which still included the soda ash revenue for most of the measurement period.

Here's the quick math on the shift:

• The offshore pipeline segment is the new core revenue driver, with new projects like Shenandoah and Salamanca ramping up production throughout the year.
• The forecast revenue is lower year-over-year, but the quality of that revenue-being more stable and contracted from the midstream sector-is far superior.
• Management is targeting growth in Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to be at or near the low end of their prior guidance range of $545-$575 million for the full year 2025.

Debt-to-Adjusted EBITDA ratio is high at 5.52x as of June 30, 2025.

The company's financial flexibility remains constrained by its leverage profile. As of June 30, 2025, the bank-calculated Debt-to-Adjusted EBITDA ratio stood at a high 5.52x. This is the single biggest near-term risk. A ratio this high signals elevated financial risk in a rising interest rate environment, which is why debt reduction is the primary strategic focus.

To be fair, the ratio is coming down. The company's long-term target is a more sustainable leverage ratio of around 4.0x. The reduction will be a slow, persistent grind, driven by two key factors: increasing Adjusted EBITDA from the new Gulf of Mexico projects and the continued reduction in absolute debt from the soda ash sale proceeds. The trailing twelve-month Adjusted Consolidated EBITDA used in this calculation was $555.4 million as of the same date.

Free cash flow generation is targeted to begin in the third quarter (Q3) of 2025.

The inflection point for Genesis Energy, L.P. is the start of consistent free cash flow (FCF) generation, which was targeted to begin in the third quarter (Q3) of 2025. This is a massive shift. For years, the company was in a heavy capital expenditure (CapEx) cycle, building out the Shenandoah and Salamanca deepwater Gulf of Mexico projects. Now that the major CapEx is largely behind them, the infrastructure begins to pay off.

The successful commissioning of the Shenandoah floating production system (FPS), which reached its 'first oil' milestone on July 25, 2025, is the main catalyst for this FCF generation. This new cash flow is crucial because it allows the company to self-fund its debt reduction and simplifies the capital structure. The goal is to generate cash in excess of the ongoing cash costs of running the business.

Sale of the soda ash business for $1.425 billion in Q1 2025 reduced debt and costs.

The most impactful economic event of the year was the sale of the soda ash manufacturing and related operations, known as the Alkali Business. This transaction closed in the first quarter (Q1) of 2025, specifically on March 3, 2025.

The enterprise value of the sale was $1.425 billion. After accounting for the assumption of approximately $390 million in ORRI bonds (Old River Royalty Interest) by the buyer and other adjustments, Genesis Energy, L.P. received net cash proceeds of approximately $1.010 billion.

This cash was immediately put to work, primarily to pay down the senior secured revolving credit facility and permanently retire unsecured debt. This move not only simplified the business model to focus on midstream but also significantly reduced the overall cost of capital, setting the stage for a healthier balance sheet in 2026. The table below summarizes the key transaction details and their immediate impact:

Finance: Monitor the Q4 2025 earnings call for an updated 2026 Adjusted EBITDA guidance and a revised leverage ratio target trajectory.

Genesis Energy, L.P. (GEL) - PESTLE Analysis: Social factors

You're operating a midstream energy business, so social factors-from community relations to investor demands-are not soft issues; they are hard operational and financial risks. The reality for Genesis Energy, L.P. in 2025 is a balancing act: maintaining critical Gulf Coast infrastructure while managing the accelerating pressure of Environmental, Social, and Governance (ESG) sentiment and a tightening labor market.

The core challenge is translating your essential role in energy security into a narrative that satisfies a public and investor base increasingly focused on long-term fossil fuel exposure. You need to show concrete, quantifiable social benefits to offset the inherent environmental risk.

Public opposition to new offshore drilling risks legal challenges and delays.

The climate for new energy infrastructure is defintely contentious, and while Genesis Energy, L.P. focuses on midstream transportation, new pipeline construction is an immediate flashpoint for public opposition and legal action. This opposition, often led by environmental non-governmental organizations (NGOs), risks significant project delays and cost overruns.

A major risk is tied to the completion of the new SYNC pipeline and the expansion of the CHOPS pipeline in the Gulf of Mexico, which is expected in late 2024 or 2025. While specific lawsuits against Genesis Energy, L.P.'s projects are not public, the broader legal environment is hostile. For example, federal courts have recently blocked other major natural gas pipeline expansions, showing that environmental groups are successfully using the National Environmental Policy Act (NEPA) and other laws to vacate federal approvals.

This creates a near-term risk to the expected revenue ramp from new deepwater developments like Shenandoah and Salamanca, whose volumes are critical to the offshore pipeline segment's growth in 2025. You can't afford a lengthy legal injunction.

Company maintains community support through local hiring and Gulf Coast donations.

Genesis Energy, L.P. strategically counters public risk by focusing its social efforts on the Gulf Coast communities where it operates. This strategy is essential for maintaining a social license to operate (SLO) and mitigating local opposition that can escalate to federal legal challenges.

The company emphasizes local hiring, competitive compensation, and on-the-job training, which are crucial for economic stability in the region. Its community support is channeled into five key areas: community support, safety and emergency responder support, community development, environmental conservation, and education.

While a specific 2025 dollar figure for charitable giving is not publicly disclosed in the latest reports, the impact is seen through support for organizations like the United Way, Muscular Dystrophy Association, and local food banks. This localized, tangible support is your best defense against broad, national anti-fossil fuel campaigns.

Evolving investor sentiment (ESG) pressures long-term fossil fuel exposure.

The pressure from Environmental, Social, and Governance (ESG) investors is a permanent fixture, forcing a strategic shift in your portfolio. Your institutional investor base, which holds approximately 75.98% of the company's units, is highly sensitive to ESG metrics, particularly carbon exposure.

Your strategic actions in 2025 reflect this pressure:

• Portfolio De-risking: The sale of the high-carbon Alkali Business on February 28, 2025, is the most significant move to improve your ESG profile, allowing the company to focus on the midstream segment.
• Governance Integration: The Board of Directors now assesses certain sustainability metrics in short-term and long-term compensation calculations, directly aligning executive pay with ESG performance.
• Disclosure: The release of the 2024 Sustainability Report in October 2025 is a direct response to stakeholder demand for transparency, using frameworks like the Sustainability Accounting Standards Board (SASB).

This is a marathon, not a sprint, and the market is rewarding companies that show a credible transition plan. Your current market capitalization is approximately $1.89 billion as of late 2025, and continued institutional support hinges on tangible ESG progress.

Workforce shortages for skilled deepwater and marine transportation labor.

A critical, near-term social risk is the shortage of skilled labor in the Gulf Coast, especially for deepwater and marine transportation roles like welders, marine electricians, and technicians. The U.S. marine industry faces a critical labor shortage in 2025, leading to challenges in recruiting and retaining skilled personnel.

This shortage is not theoretical; it has a direct impact on operations. For the third quarter of 2025, the Marine Transportation segment's performance was impacted by lower fleet utilization. While other factors contributed, a lack of qualified crew directly limits the number of units that can be transported, thus reducing segment margin.

Here's the quick math: lower utilization means less revenue per asset. You need to invest more in training and retention to mitigate this operational drag.

Genesis Energy, L.P. (GEL) - PESTLE Analysis: Technological factors

The technological landscape for Genesis Energy, L.P. (GEL) in 2025 centers on leveraging advanced engineering to access ultra-deepwater reserves and deploying proprietary chemical processes to meet stringent environmental standards. You see this dual focus-deepwater complexity and environmental compliance-as the primary technological drivers for current and near-term profitability.

Successful commissioning of the Shenandoah deepwater project in July 2025

The successful commissioning and start-up of the Shenandoah deepwater production facility in the Gulf of Mexico is the most significant technological milestone for Genesis Energy in 2025. This project delivered first oil to the new SYNC pipeline lateral on July 25, 2025, a major event that immediately impacted the bottom line. This isn't just a new pipe; it's a complex ultra-deepwater infrastructure tie-in that required precision engineering.

The operational ramp-up is key. The Shenandoah Floating Production System (FPS) is expected to reach an aggregate deliverability of 100,000 barrels of oil per day (bpd) from the first four Phase 1 wells, with a nameplate capacity of 120,000 bpd. Here's the quick math: the commencement of contractual minimum volume commitments (MVCs) on the 100% owned SYNC Pipeline and the 64% owned CHOPS Pipeline contributed to a 40% increase in the Offshore Pipeline Transportation Segment Margin for the third quarter of 2025, a jump of $29.2 million from the prior year's quarter. This is defintely a clear line of sight to increased free cash flow.

Use of UtiliSphere software to standardize data collection for compliance across six states

In the midstream sector, compliance isn't optional; it's a constant operational risk. Genesis Energy tackled this by implementing UtiliSphere, a mobile workforce management software. This system replaced a patchwork of manual, paper-based forms and Excel spreadsheets across five operating areas spanning six states. That's a lot of paper to lose.

The core technological benefit here is standardization. By building every regulatory compliance-related task into UtiliSphere, Genesis gained a single, consistent data collection point. This move substantially decreases the risk of missing compliance-related tasks, which can result in massive fines, and ensures all reporting is both accurate and current. It's a simple software solution that drastically reduces regulatory exposure.

Proprietary closed-loop technology in Sulfur Services reduces refinery emissions

The Sulfur Services segment, operating as TDC, represents a powerful blend of chemistry and environmental technology. This business uses a proprietary, closed-loop, non-combustion technology to process sour gas streams from host refineries. Instead of burning the sulfur-rich hydrogen sulfide gas streams, which is what traditional combustion technology does, this process extracts the sulfur molecules.

The environmental advantage is clear: the closed-loop system reduces the generation of greenhouse gases (CO and CO2) and pollutants like sulfur oxides (SOx) and nitrogen oxides (NOx). This technology not only helps refiners lower their emissions but also produces sodium hydrosulfide (NaHS), a critical bulk chemical used in copper mining and pulp and paper. Genesis operates 11 Sulfur Removal Units, and this segment historically accounts for about 40% of the company's total segment margins, showing the economic value of this green-focused technology.

Advanced flow assurance and integrity management needed for ultra-deepwater systems

Operating in the ultra-deepwater Gulf of Mexico-in depths exceeding 2,000 meters (6,000 feet)-requires highly specialized, advanced flow assurance technology. Flow assurance is the engineering discipline that ensures crude oil and natural gas flow without interruption from the reservoir to the processing facility.

Failure in this area, typically due to hydrate formation (ice-like plugs) or wax deposition in the cold deepwater environment, can shut down production and cost millions. Genesis Energy's expertise includes steady-state and transient multiphase modeling, liquid management, and precise modeling of pipeline thermal behavior, including insulation and active heating systems. This technological capability is what allows the company to operate its extensive network of approximately 2,400 miles of offshore pipelines, providing the critical infrastructure to move what are considered some of the least emission intensive barrels from reservoir to refinery. It's the silent, complex technology that keeps the oil flowing.

Genesis Energy, L.P. (GEL) - PESTLE Analysis: Legal factors

BOEM is reviewing the potential repeal of the Biden-era $6.9 billion Financial Assurance Rule.

The regulatory landscape for offshore operations is in flux, which is a near-term opportunity for Genesis Energy, L.P. and other Gulf of Mexico (GoM) operators. The U.S. Department of the Interior (DOI) announced in May 2025 its intent to revise the Bureau of Ocean Energy Management (BOEM) 2024 Risk Management and Financial Assurance Rule. This rule, which became effective in June 2024, was estimated to require the industry to provide an additional $6.9 billion in supplemental financial assurance (FA) to cover decommissioning liabilities.

The new administration's goal is to finalize a revised rule in 2025 that aligns with a less burdensome 2020 proposed framework. The previous rule had an estimated annual cost of $665 million in premiums for the industry. For a company like Genesis Energy, L.P., which operates pipeline and right-of-way (ROW) grants on the Outer Continental Shelf (OCS), a successful repeal or substantial revision would free up capital that would otherwise be tied up in bonds or other forms of financial security. Honestly, this is a clear-cut case of regulatory change directly impacting capital allocation and investment decisions for the 2025-2026 fiscal year.

Lawsuits challenging the December 2025 GoM oil sale on environmental review grounds.

A significant legal risk is the ongoing challenge to the Gulf of Mexico oil and gas lease sale scheduled for December 10, 2025. Multiple environmental groups filed a federal lawsuit in November 2025, seeking to halt the sale of 80 million acres of offshore leases.

The core of the challenge is the claim that BOEM violated the National Environmental Policy Act (NEPA) by not conducting a sale-specific environmental review. This legal action creates uncertainty for all midstream operators, including Genesis Energy, L.P., whose Pipeline Transportation segment relies on consistent upstream activity in the GoM. A court-ordered injunction or a permanent halt to the sale would negatively impact the future volume of crude oil and natural gas flowing into Genesis Energy, L.P.'s offshore pipelines, which are vital to the company's long-term revenue projections.

Here's the quick math: fewer new leases mean less future production, and that defintely pressures the utilization rates of existing infrastructure.

Marine Transportation segment subject to the Jones Act for domestic waterborne commerce.

Genesis Energy, L.P.'s Marine Transportation segment is fundamentally governed by the Merchant Marine Act of 1920, commonly known as the Jones Act. This federal law restricts waterborne commerce between U.S. ports to vessels that are U.S.-flagged, U.S.-built, and at least 75% owned and operated by U.S. citizens.

The company operates a substantial fleet of approximately 134 vessels, including inland and offshore boats and barges, plus the ocean-going tanker M/T American Phoenix. Maintaining compliance is non-negotiable. A failure to meet the strict U.S. citizen ownership requirements (where non-U.S. citizens cannot own 25% or more of the equity interest) would prohibit the company from operating its vessels in the lucrative U.S. coastwise trade, leading to severe financial penalties or even forfeiture of vessels.

The Jones Act is a competitive barrier to entry, but it also means the company must constantly monitor its ownership structure and maintain rigorous operational compliance with U.S. Coast Guard (USCG) and Department of Transportation (DOT) regulations.

Pipeline and Hazardous Materials Safety Administration (PHMSA) regulations govern pipeline safety.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) is the primary federal regulator for Genesis Energy, L.P.'s extensive pipeline network. The regulatory environment is tightening, which means higher compliance costs are a certainty for the 2025 fiscal year and beyond.

A key development is the proposed PIPELINE Safety Act of 2025, introduced in October 2025. This bill is set to significantly increase the financial consequences of non-compliance:

• Maximum daily civil penalty for a pipeline safety violation is proposed to double from approximately $200,000 to $400,000.
• Maximum penalty for a series of related violations is proposed to double from approximately $2 million to $4 million.

Furthermore, PHMSA is actively updating its standards. A Direct Final Rule is set to take effect on January 1, 2026, incorporating updated industry standards like the second editions of API RP 1170 and 1171, which focus on the functional integrity of natural gas storage. The agency also issued a Direct Final Rule in July 2025, which extended the annual report deadline for hazardous liquid pipelines, aligning it to June 15. These changes require immediate integration into the company's operational and reporting protocols to avoid the newly increased fines.

The proposed Act also authorizes $1.65 billion in appropriations over five years to fund PHMSA's safety program, indicating a clear trajectory toward more robust enforcement and oversight.

Compliance is getting more expensive, so you need to factor in increased spending on integrity management systems and personnel training.

The table below summarizes the key 2025 regulatory shifts and their financial implications:

Genesis Energy, L.P. (GEL) - PESTLE Analysis: Environmental factors

GoM deepwater assets produce some of the least emission-intensive barrels globally.

The core of Genesis Energy, L.P.'s environmental opportunity lies in its deepwater Gulf of Mexico (GoM) pipeline infrastructure, which transports crude oil that is demonstrably lower in carbon intensity than most global alternatives. This isn't just a marketing claim; it's a measurable difference that positions the company favorably in a carbon-constrained world.

The barrels flowing through Genesis Energy, L.P.'s systems, like the Cameron Highway Oil Pipeline System (CHOPS) and Poseidon Pipeline, are sourced from deepwater fields that have superior emissions profiles. Specifically, the production-stage greenhouse gas (GHG) emission intensity for US GoM crude oil is an estimated 13.1 kg CO2e/bbl (kilograms of CO2 equivalent per barrel) in the Base Case scenario. Here's the quick math: that figure is approximately 46% lower than the international average outside of the U.S. and Canada, which stands at 24.4 kg CO2e/bbl for comparable crude.

The sale of the Alkali Business in early March 2025 was a massive, strategic move that instantly cleaned up the company's overall environmental footprint. That business accounted for more than 90% of Genesis Energy, L.P.'s reported GHG and criteria pollutants in previous reports, leading to an estimated 91% drop in total GHG emissions post-sale. You can't ask for a clearer environmental win than that.

This low-intensity profile is a key competitive advantage for the company's producer customers, who are increasingly focused on reducing their Scope 3 (value chain) emissions. The continued ramp-up of new deepwater projects like Shenandoah and Salamanca, with volumes dedicated to Genesis Energy, L.P.'s pipelines, reinforces this low-carbon-intensity supply stream.

Rescission of the expanded Rice's Whale Protection Efforts in February 2025.

A significant, near-term regulatory change occurred on February 20, 2025, when the Bureau of Ocean Energy Management (BOEM) rescinded its Notice to Lessees and Operators (NTL) 2023-G01.

This NTL had previously suggested expanded precautionary measures for oil and gas vessels to protect the critically endangered Rice's whale, including vessel speed limits (e.g., 10 knots) and nighttime travel restrictions in the western and central Gulf of Mexico. The rescission, driven by a new administrative focus on 'Unleashing American Energy,' immediately removes a layer of operational complexity and potential cost.

While the Rice's whale remains fully protected under the Endangered Species Act, the removal of these specific, suggested operational constraints reduces the risk of vessel transit delays and associated costs for Genesis Energy, L.P.'s marine transportation and offshore segments. The operational flexibility is defintely a positive for near-term logistics and project timelines.

Marine fleet operates engines meeting Tier 3 or Tier 4 emissions standards.

In the marine transportation segment, which moves crude oil and refined products, Genesis Energy, L.P. has proactively managed air quality emissions. All of the company's marine vessel engines and generators are operated to meet either Tier 3 or Tier 4 emissions standards, which are progressively stricter regulations set by the Environmental Protection Agency (EPA).

This compliance is further supported by the exclusive use of low sulfur diesel, which meets the International Maritime Organization (IMO) 2020 standards. This commitment to modern engine technology and cleaner fuel reduces the output of criteria air pollutants like Nitrogen Oxides (NOx) and Sulfur Oxides (SOx) from the fleet.

Increased hurricane frequency in the Gulf of America poses significant operational risk.

The most volatile environmental risk is the increasing frequency and intensity of Atlantic hurricanes, which directly threaten Genesis Energy, L.P.'s extensive GoM infrastructure and marine fleet. The 2025 hurricane season, which runs from June 1 to November 30, is projected to be notably active.

The National Oceanic and Atmospheric Administration (NOAA) projects a 60% chance of an above-normal season for 2025, with forecasts predicting between 13 to 19 named storms, including 6 to 10 hurricanes, and 3 to 5 major hurricanes (Category 3 or higher). Sea surface temperatures in the Gulf of Mexico are nearly 2°F above historical averages, which can fuel more intense and rapidly strengthening storms.

Hurricane-related shut-ins cause significant volume and revenue disruption. For context, storm-driven unplanned outages in the GoM averaged around 295 Mb/d (thousand barrels per day) of crude oil in September 2024, representing 16% of the region's federal crude production. This is the real cost of climate change for offshore operations.

The company's operational resilience is tied to its ability to quickly inspect and restart its pipeline systems, like the Cameron Highway Oil Pipeline System (CHOPS), following a storm. While Genesis Energy, L.P. has historically managed these risks, the sheer number of severe storms projected for 2025 increases the probability of higher inspection and repair expenses, which could impact the Q3 and Q4 2025 financial results, where the company reported a Net Income from Continuing Operations of $22.8 million in Q3 2025.