HOUSTON--(BUSINESS WIRE)--Genesis Energy, L.P. (AMEX:GEL) reported today net income for the first quarter of 2008 of $1,645,000, or $0.04 per unit. Income for the quarter included $11.7 million of non-cash charges for amortization of intangibles related to the 2007 Davison acquisition. This compares to net income in the 2007 period of $1,585,000, or $0.11 per unit.
On May 15, 2008, we will pay a distribution of $12.1 million, or $0.30 per unit, attributable to the first quarter of 2008. This is the eleventh consecutive quarter with an increase in the per unit distribution.
“We believe the documentation, requisite approvals and closing of our acquisition of the NEJD and Free State CO2 pipelines from Denbury Resources Inc. (NYSE:DNR), the indirect owner of our general partner, should be completed in the near future,” added Mr. Sims.
We will broadcast our Earnings Conference Call on Wednesday, May 7, 2008, at 10:00 a.m. Central time. This call can be accessed at www.genesiscrudeoil.com
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis engages in four business segments. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and, to a lesser extent, natural gas and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations, principally located in Texas, Louisiana, and Arkansas. The Supply and Logistics Division is engaged in the transportation, storage and supply of energy products, including crude oil and refined products. The Industrial Gases Division produces and supplies industrial gases, such as carbon dioxide and syngas. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, and Florida.
Looking very superficially at GEL without even a reading of the 10Q, they are priced to yield 6.4%. KMP is priced to yield 6.4%. What is the upside at GEL which justifies parity with the growth which has been delivered by KMP?
The income producing MLP marketplace is full of all sorts of anomalies, is relatively poorly covered by the analyst community and is completely misunderstood as to the importance of fundamentals in my non-humble estimation. Compare, for example, APL and GEL. I suppose, superficially, you could say that APL deserves to be valued 30% lower on a yield basis than GEL because it is more leveraged. But I wonder.
Income stream investment vehicles have been victims of the recent financial malaise because they often use some financial leverage. Some of them deserve the punishment because their ability to continue to borrow on a favorable basis is in question. Others probably do not.
The BDI popped 300 basis points over-night, all non-agricultural commodities are up a bit and T. Boone Pickens is on the boob tube saying "85 won't cover 87".
Peter- I agree completely that there a lots of anomalies in the MLP market. And I can't figure out what drives them. Curently, EPD and EPE? A 10% increase in the dist. at EPD increases the EPE dist. by over 21%. EPE yield is 5.5% and EPD yield is 6.5%. (EPE is complicated because they own a couple of other GP interests) A couple of weeks ago there was big disparity in MGG/MMP, yield less than 1% pt difference with twice the growth at the GP. These are examples of GP/LP values but values are all over the map for the group. IMO, they are a microcosm for stocks overall, inefficiencies, but they are just more apparent. Hare
“We believe the documentation, requisite approvals and closing of our acquisition of the NEJD and Free State CO2 pipelines from Denbury Resources Inc. (NYSE:DNR), the indirect owner of our general partner, should be completed in the near future"
This was to be done in 2007,then in first quarter 2008, and still hasn't been done.
Now Gareth,come clean, What is the Problem ???? who is holding it Up ?????
The other disturbing thing is GEL market price. Closed at 18.10 today. GEL sold 9 million units in Dec At 22. Those buyers can not be happy. DNR was a buyer to keep their porportional interest.
Davison unit holders hold 12.6 million units. maybe some of those hitting market. Was there a lock-up ?