Genesis Energy L.P. (GEL, Financial) filed Quarterly Report for the period ended 2009-06-30.
Genesis Energy operates crude oil common carrier pipelines and is an independent gatherer and marketer of crude oil in North America with operations concentrated in Texas Louisiana Alabama Florida Mississippi and New Mexico. Genesis Energy L.P. has a market cap of $571 million; its shares were traded at around $14.47 with a P/E ratio of 20.2 and P/S ratio of 266.5. The dividend yield of Genesis Energy L.P. stocks is 9.4%. Genesis Energy L.P. had an annual average earning growth of 15.7% over the past 5 years.
During the second quarter of 2009, we generated $22.2 million of Available Cash before Reserves, and we will distribute $15.3 million to holders of our common units and general partner for the second quarter. During the second quarter of 2009, cash provided by operating activities was $15.9 million.
On July 15, 2009, we announced that our distribution to our common unitholders relative to the second quarter of 2009 will be $0.345 per unit (to be paid in August 2009). This distribution amount represents a 9.5% increase from our distribution of $0.315 per unit for the second quarter of 2008. During the second quarter of 2009, we paid a distribution of $0.3375 per unit related to the first quarter of 2009.
We have reconciled Available Cash before Reserves (a non-GAAP measure) to cash flow from operating activities (the GAAP measure) for the three and six months ended June 30, 2009 and 2008 in “Liquidity and Capital Resources – Non-GAAP Reconciliation” below. For the three and six months ended June 30, 2009, cash flows provided by operating activities were $15.9 million and $19.1 million, respectively. For the three and six months ended June 30, 2008, cash flows provided by operating activities were $5.3 million and $22.7 million, respectively.
Pipeline segment margin for the second quarter of 2009 increased $3.1 million as compared to the second quarter of 2008. The significant component of this change is an increase in revenues from CO2 financing leases and tariffs of $4.1 million and a related increase in non-income payments from the same financing leases of $0.5 million. Reducing the impact of this increase was a decrease in revenues from sales of pipeline loss allowance volumes of $1.5 million.
Revenues and payments related to CO2 pipelines increased by a total of $4.6 million between the two quarters, with $3.5 million attributable to the NEJD pipeline and $1.1 million to the Free State pipeline. The second quarter of 2008 included only one month of results related to these pipelines. The average volume transported on the Free State pipeline for the second quarter of 2009 was 135 MMcf per day, with the transportation fees and the minimum payments totaling $1.6 million and $0.3 million, respectively. Denbury has exclusive use of this pipeline and variations in its CO2 tertiary oil recovery activities create the fluctuations in the volumes transported on the Free State pipeline.
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Genesis Energy operates crude oil common carrier pipelines and is an independent gatherer and marketer of crude oil in North America with operations concentrated in Texas Louisiana Alabama Florida Mississippi and New Mexico. Genesis Energy L.P. has a market cap of $571 million; its shares were traded at around $14.47 with a P/E ratio of 20.2 and P/S ratio of 266.5. The dividend yield of Genesis Energy L.P. stocks is 9.4%. Genesis Energy L.P. had an annual average earning growth of 15.7% over the past 5 years.
Highlight of Business Operations:
In the second quarter of 2009, we reported net income of $4.5 million, or $0.13 per common unit. Non-cash expense related to our senior executive compensation arrangements totaling $2.4 million reduced net income during the second quarter. See additional discussion of our senior executive compensation expense in “Results of Operations – Other Costs, Interest and Income Taxes” below.During the second quarter of 2009, we generated $22.2 million of Available Cash before Reserves, and we will distribute $15.3 million to holders of our common units and general partner for the second quarter. During the second quarter of 2009, cash provided by operating activities was $15.9 million.
On July 15, 2009, we announced that our distribution to our common unitholders relative to the second quarter of 2009 will be $0.345 per unit (to be paid in August 2009). This distribution amount represents a 9.5% increase from our distribution of $0.315 per unit for the second quarter of 2008. During the second quarter of 2009, we paid a distribution of $0.3375 per unit related to the first quarter of 2009.
We have reconciled Available Cash before Reserves (a non-GAAP measure) to cash flow from operating activities (the GAAP measure) for the three and six months ended June 30, 2009 and 2008 in “Liquidity and Capital Resources – Non-GAAP Reconciliation” below. For the three and six months ended June 30, 2009, cash flows provided by operating activities were $15.9 million and $19.1 million, respectively. For the three and six months ended June 30, 2008, cash flows provided by operating activities were $5.3 million and $22.7 million, respectively.
Pipeline segment margin for the second quarter of 2009 increased $3.1 million as compared to the second quarter of 2008. The significant component of this change is an increase in revenues from CO2 financing leases and tariffs of $4.1 million and a related increase in non-income payments from the same financing leases of $0.5 million. Reducing the impact of this increase was a decrease in revenues from sales of pipeline loss allowance volumes of $1.5 million.
Revenues and payments related to CO2 pipelines increased by a total of $4.6 million between the two quarters, with $3.5 million attributable to the NEJD pipeline and $1.1 million to the Free State pipeline. The second quarter of 2008 included only one month of results related to these pipelines. The average volume transported on the Free State pipeline for the second quarter of 2009 was 135 MMcf per day, with the transportation fees and the minimum payments totaling $1.6 million and $0.3 million, respectively. Denbury has exclusive use of this pipeline and variations in its CO2 tertiary oil recovery activities create the fluctuations in the volumes transported on the Free State pipeline.
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