Genesis Energy, L.P. Confirms Previous Financial Guidance & Plans to Further Enhance Its Balance Sheet & Financial Flexibilit...
12 Oktober 2017 - 12:00PM
Business Wire
Genesis Energy, L.P. (NYSE: GEL) announced today that it has
completed a review of its previously disclosed financial guidance
and an analysis of alternative allocations of capital in future
periods.
Noting that the partnership’s businesses continue to perform in
line with expectations and the recently acquired alkali business is
outperforming expectations, the partnership is announcing the
following strategic steps:
- Declaring a quarterly distribution of
$0.50 per Common Unit for the quarter ended September 30, 2017, to
be paid on November 14, 2017 to unitholders of record at the close
of business on October 31, 2017
- Beginning with the quarter ending
December 31, 2017, grow the quarterly distribution by no less than
$0.01 per Common Unit, per quarter, prospectively
- Beginning with the quarter ended
September 30, 2017, target a distribution coverage of the new
distribution profile of 1.40 to 1.60 times on a cash basis, as
historically calculated and presented
- Target leverage ratios approaching
4.75, 4.25 and 3.75 times for year ends 2018, 2019 and 2020,
respectively, as historically calculated and presented
- Significant financial flexibility
obtained with these steps will allow the partnership to
opportunistically pursue accretive organic projects and
acquisitions
Grant Sims, CEO of Genesis stated, “As noted above, our legacy
operations continue to perform in line with expectations and,
importantly, our recently acquired soda ash business is performing
better than expected. As contributions from recently completed
organic growth projects and acquisitions ramp, we expect to
generate record net income, cash flows from operations, Adjusted
EBITDA and Available Cash before Reserves in future quarters and
fiscal years. If and when we experience any cyclical recoveries in
some of our businesses which have faced headwinds over the last
several years, such financial performance would be additive to our
expected record results. Absent material, unexpected changes to the
underlying fundamentals of our aggregate businesses, or other
potential higher valued uses of capital, we would target to
continue the minimum quarterly growth referenced above for at least
each of the next twenty quarters.
To achieve our objective to deliver the best value to
unitholders over the long term, we strive to continue to generate
and grow stable, repeatable cash flows while never losing sight of
our absolute commitment to safe and responsible operations. We
believe we have very attractive businesses with significant
barriers to entry, long commercial lives, and which have performed
relatively well over many, many cycles, not just the down-cycle of
the last three years. The steps we are announcing today will give
us the flexibility to build on the successes of our footprint as it
stands today.”
In conjunction with the strategic steps taken today, absent a
specific organic or acquisition opportunity, the partnership has no
current plans to access the equity capital market in the immediate
future, including through its “at the market” equity distribution
program, which, in any event, has never been used. Additionally,
the partnership will evaluate implementing a unit re-purchase
program at some point in the future.
Sims concluded, “We believe our strengthening balance sheet,
enhanced financial flexibility and renewed growth outlook position
the partnership to generate strong total returns for our
unitholders in the years ahead.”
We will hold a conference call to discuss our financial guidance
today, Thursday, October 12, 2017, at 10:00 a.m. Central time
(11:00 a.m. Eastern time). This call can be accessed at
www.genesisenergy.com. Choose the Investor Relations button. A
slide presentation concerning today’s subject matter will also be
available on the site. For those unable to attend the live
broadcast, a replay will be available beginning approximately one
hour after the event and remain available on our website for 30
days. There is no charge to access the event.
Genesis Energy, L.P. is a diversified midstream energy master
limited partnership headquartered in Houston, Texas. Genesis’
operations include offshore pipeline transportation, refinery
services, soda ash businesses, marine transportation and onshore
facilities and transportation. Genesis’ operations are primarily
located in Texas, Louisiana, Arkansas, Mississippi, Alabama,
Florida, Wyoming and the Gulf of Mexico.
This press release includes forward-looking statements as
defined under federal law. Although we believe that our
expectations are based upon reasonable assumptions, we can give no
assurance that our goals will be achieved, including statements
regarding the expected increase in our quarterly distributions, our
target distribution coverage ratios and our target leverage ratios.
Actual results may vary materially. We undertake no obligation to
publicly update or revise any forward-looking statement.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171012005499/en/
Genesis Energy, L.P.Bob Deere, 713-860-2516Chief Financial
Officer
Genesis Energy (NYSE:GEL)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Genesis Energy (NYSE:GEL)
Historical Stock Chart
Von Apr 2023 bis Apr 2024