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Genesis Energy LP
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Q1 2024 Earnings Supplement Presentation
| Grant Sims | Page 3 of 11 |
May 20, 2024
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"Q1 2024 Earnings Supplement Presentation"
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2 Key Takeaways Long-Term Thesis Remains In-Tact and Positive • Long-term outlook and value proposition for Genesis remains unchanged and totally in-tact – Reported Adjusted EBITDA (a) of $163.1 million in the first quarter, which was in-line with our expectations – Remain excited about the approaching inflection point when we will complete our major capital spending program in 4Q 2024 and will be around the corner from what we believe will be notable step change in the financial performance of our offshore assets and a recovery in our soda ash business • Increasingly clear line of site provides path to increasing amounts of cash flow (b) and financial flexibility – Shenandoah and Salamanca projects expected on-line mid-2025 with combined 160k/d of incremental production handling capacity • Together will provide us with an anticipated incremental $100-$110 million of segment margin per annum when fully ramped • Successfully laid the 105 miles of the SNYC lateral and continue to advance CHOPS expansion – Recently commissioned Granger expansion project; additional volumes expected to help offset some of the pricing pressure during back half of the year • Pro forma Granger expansion we now have ~4.8mm short tons of annual soda ash production capacity • Genesis is well positioned to generate roughly $250 – $350 million dollars or more per year of cash flow (b) starting in 2025 despite any volatility in soda ash prices over a normalized cycle – Expect to complete growth capital expenditures program in 4Q 2024; will be able to begin harvesting increasing amounts of cash flow thereafter – Continue to evaluate ways to simplify capital structure and return capital to everyone in the capital structure, all while focusing on our leverage ratio (c) • Anticipate providing more details around our capital allocation priorities and strategy later this year • Guidance range for Adjusted EBITDA (a) of $680 - $740 million in 2024 – Assumes approximately $10 million of incremental G&A costs associated with conforming short-term incentive programs to industry standards and approximately $10 million of lower offshore segment margin related to the potential for weather related downtime – Continue to expect growth capital expenditures of approximately $200 - $250 million in 2024 • Committed to maintaining financial flexibility while not losing focus on our long-term leverage ratio (c) – Senior secured credit facility extended to February 2026; no unsecured maturities until mid-2026 – Exited first quarter with leverage ratio (c) of 4.15x; improving the balance sheet and maintaining long-term leverage ratio (c) at or near 4.0x is a top priority – To date repurchased $75mm of Class A convertible preferred at a discount to call premium and 114,900 common units at avg. price of $9.09 per unit (a) Adjusted EBITDA is a non-GAAP financial measure. We are unable to provide a reconciliation of the forward-looking Adjusted EBITDA projections contained in this presentation to its most directly comparable GAAP financial measure because the information necessary for quantitative reconciliations of Adjusted EBITDA to its most directly comparable GAAP financial measure is not available to us without unreasonable efforts. The probable significance of providing these forward-looking Adjusted EBITDA measures without directly comparable GAAP financial measures may be materially different from the corresponding GAAP financial measures. (b) After certain cash obligations, including cash interest payments, principal payments on our Alkali senior secured notes, preferred and existing common unit distributions, maintenance capital requirements, and cash taxes. (c) As calculated under our senior secured credit facility.