Shares of Genesis Energy ( NYSE: GEL ) rose as much as 9.6% on Wednesday after the company reported an in-line fourth quarter EPS and revenue that was up about 23% from last year.
GEL posted Q4 GAAP EPS of $0.15, in-line with analyst expectations, and revenue of $714.04M was at least $132M more than a year ago.
For 2023, GEL anticipates adjusted EBITDA in the range of $780 – $810 million, and expects to exit the year with a leverage ratio at or below 4.0 times. Growth capital expenditures are expected to be about $400 – $450 million for the year.
Looking ahead, GEL said it continues to see a "significant amount of activity" in the Gulf of Mexico, and expects to benefit from a full year of volumes from King’s Quay and Spruance.
The company said it has contractually agreed on the pricing for about 85% of its expected sales volumes of soda ash and related products for 2023, and anticipates its weighted average realized price will exceed 2022 prices.
"The soda ash market remains structurally tight which provided us with a constructive backdrop for our price negotiations on our uncontracted volumes as we entered 2023," CEO Grant Sims said in a statement.
Other Q4 metrics: Cash flows from operating activities $81.8M vs $95.6M last year; Net income attributable to GEL $42M vs net loss of $68.3M; Adjusted EBITDA $180.2M.
GEL stock up 13% so far this year as of last close.
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Genesis Energy stock jumps 9% after Q4 results show strength