- Sale of 36% stake in CHOPS not only deleverages the balance sheet, but also values the offshore business at ~12x 2023E EBITDA vs the ~8.5x implied in Street valuations.
- Genesis Energy posted 3Q results and full-year 2021 guidance in line with our forecast.
- Despite a ~50% increase since the note we published in September, we believe Genesis Energy units could still double from the current price over the next three years.
- We continue to believe the improving outlook for the Genesis Energy balance sheet is likely to lead to the distribution to more than triple from the current $0.60/unit per year by 2024.
For further details see:
Genesis Energy: Positive On Sale Of 36% Stake In CHOPS Offshore Pipeline