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Genesis Energy, L.P. (NYSE:GEL) Sodium & Marine Segment Growing Rapidly

Genesis Energy L.P. (NYSE:GEL) is a limited partnership (LP) focused on the midstream segment of the oil and gas industry. It provides integrated suite of services to oil producers, refineries, industrial and commercial enterprises. Genesis Energy is an independent gatherer and marketer of crude oil and oil pipelines in North America. The company was founded in December 1996 and is headquartered in Houston, TX with operations in TX, LA, AL, MS, FL, and NM (USA).  

Genesis Energy L.P. Refinery Services segment is involved in the processing of high sulfur (or sour) gas streams as part of refining operations to remove the sulfur and selling the related by-product, sodium hydrosulfide (NaHS). 


The company has four reportable segments:

  • Refinery Services- involved in the processing of high sulfur (or sour) gas streams as part of refining operations to remove the sulfur and selling the related by-product, sodium hydrosulfide (NaHS)
  • Offshore Pipeline Transportation- processing of crude oil and natural gas in the Gulf of Mexico;Sodium minerals and sulfur services involving trona and trona-based exploring,
  • Sodium minerals and sulfur services- involves trona and trona-based exploring, mining, processing, producing, marketing and selling activities, as well as processing of high sulfur (or “sour”) gas streams for refineries to remove the sulfur, and selling the related by-product, sodium hydrosulfide.
  • Marine transportation- provide waterborne transportation of petroleum products and crude oil throughout North America facilities and transportation, which include terminating, blending, storing, marketing, and transporting crude oil, petroleum products, and CO2


Genesis Energy Sodium minerals and sulfur services segment grew revenue by 140% year-over-year, as seen below.




The increase in revenue was due to the inclusion of one month's contribution from the Alkali Business. This was partially offset by the results of refinery services business and related NaHS and caustic soda activities. However, the sodium minerals in sulfur services margin also grew by 46% year-over-year.





Inland Marine Barge Transportation Expansion

The company ordered 28 new barges and 18 new tug boats for their inland marine barge transportation fleet. They took delivery of 23 barges and 18 tug boats through the first nine months of 2017. They expect to take delivery of the remaining barges periodically through 2018. As you can see below genesis energy barge utilization is growing year over year. 


Of Note:

Raceland Terminal and Crude Oil Pipeline

Genesis Energy L.P. (NYSE:GEL) have constructed a new crude oil terminal and pipeline in Raceland, Louisiana that connects to existing infrastructure to provide further distribution to the Louisiana refining markets. The Raceland Terminal crude oil tankage consists of 515,000 barrels of oil and train unloading facilities capable of unloading up to two trains per day. 

They have also constructed a new crude oil pipeline that will deliver crude oil received from the Poseidon system, which currently delivers crude oil originating in the deepwater Gulf of Mexico to the Houma, Louisiana area, and then onto the new Raceland Terminal for further distribution.