Genesis Energy, L.P. (subsidiary issuer) GOA all the way, driving deleveraging

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Genesis Energy, L.P. (subsidiary issuer) GOA all the way, driving deleveraging

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Genesis Energy, L.P. (subsidiary issuer)

GOA all the way, driving deleveraging

Initial Opinion - Credit

Initiate with a MW based on relative value 17 June 2026

We initiate on GEL with a Marketweight as short duration 29s and 30s are yield to call High Yield Credit

bonds at ~5% and trade at fair value in our view. 2032-2034 bonds at YTW of 6.5-6.7% United States

have balanced upside downside potential. We like holding this relatively stable Energy

diversified credit, which has a clear path to deleveraging. With B Midstream trading

between 6.1%-6.7% YTW GEL bonds trade at the wider end of its stable fee-based Table of Contents

business peer group, we note senior leverage is at the higher end of its peer group. Relative Value 2

Fee-based businesses with barriers to entry Company Description 4

Asset Overview 5

GEL owns interests in various crude oil and natural gas pipeline systems, platforms, and

related infrastructure in the Gulf of America (GOA). The assets are integrated to Offshore Pipeline Transportation 5

transport crude oil and natural gas produced from the deepwater Central Gulf of America Marine Transportation 8

to US onshore markets in Texas and Louisiana. The company reports in three business Onshore Transportation & Services segment. 9

segments 1) Offshore Pipeline Transportation (68% of LTM margin), 2) Marine Investment Positives & Concerns 10

Transportation (18% of LTM Margin), 3) Onshore Transportation & Services (14% of Maturity Profile and Relevant Covenants 11

LTM margin). These businesses have high barriers to entry due to significant fixed entry Free Cash Flow and Leverage Analysis 13