American pipeline operator Genesis Energy announced its financial results for the third quarter of 2025, reporting a net income of $9.2 million. This marks a significant turnaround from the $17.2 million net loss reported in the same period of 2024. Total segment margin for the quarter was $146.6 million, and Adjusted EBITDA was $132 million.
Cash flows from operating activities were $70.3 million. The company declared a cash distribution of $0.9473 per preferred unit, equating to approximately $14.9 million. Available cash before reserves to common unitholders was $35.5 million, providing 1.76x coverage for the quarterly distribution of $0.165 per common unit.
Grant Sims, CEO of Genesis Energy, stated that the results were broadly in-line with expectations. He highlighted the strong performance of the offshore pipeline transportation segment, which benefited from no weather-related disruptions and minimum volume payments from the new Shenandoah floating production system.
Sims noted that production from Shenandoah, as well as the new Salamanca unit, is ramping up successfully, representing a, "significant step change for the future financial performance," of the offshore segment.
This overperformance was partially offset by temporary weakness in the marine transportation segment during July and August, which Sims stated is believed to have passed, with the segment positioned for a stronger fourth quarter.
The onshore transportation and services segment delivered results in line with expectations.
Due to producer mechanical issues earlier in the year, project timing delays, and the temporary challenges in the marine segment, Genesis now expects full-year 2025 Adjusted EBITDA to be slightly below the low end of its previously communicated $545 to $575 million range.
Sims emphasized that the company has hit an inflection point and generated excess cash in the third quarter, allowing for debt reduction.
