Introduction
Earlier this year the high yielding midstream operator, Genesis Energy (GEL) reduced their distributions by a massive 73%. Even though they still offer a distribution yield slightly over 9%, many unitholders are probably longing for a return to their previous distributions at some point in the future and thus providing them a full recovery. This does not appear likely and unfortunately, the risks to their new much lower distributions will remain going forward.
Executive Summary and Ratings
Since many readers are likely short on time, the table below provides a very brief