- Genesis Energy averted a possible liquidity crisis in 2021, thanks to divestitures but 2022 still looked disappointing.
- Now that 2022 is underway, it has seen their underlying cash flow performance broadly flat versus 2021.
- Whilst management is flagging to meet the top end of their guidance, it nevertheless would still be lower than their result during 2021.
- Disappointingly, this sees them failing to capitalize on the booming operating conditions that many of their peers are enjoying.
- When combined with the continued risks to their distributions stemming from their very weak coverage and overleveraged financial position, I now believe that downgrading to a sell rating is appropriate.
For further details see:
Genesis Energy: Failing To Capitalize On Booming Operating Conditions