How Genesis Energy’s Stock Has Performed in 2016



Genesis Energy’s market performance

Genesis Energy (GEL), which mainly provides crude oil and refined products transportation and logistics services, has lost 6.8% YTD (year-to-date). At the same time, the Alerian MLP ETF (AMLP), which comprises 26 midstream energy MLPs, has risen 2.0%.

Genesis Energy is still trading 35.4% lower than the levels before the energy price rout. GEL’s underperformance relative to AMLP could be attributed to its relatively high crude oil exposure and high leverage.

Genesis Energy (GEL) was yielding negative YTD price returns until mid-May 2016. Following a recovery in crude oil prices, the MLP’s returns turned positive. With the recent downward movement in crude oil prices, GEL’s stock price fell once and saw negative YTD returns.

GEL’s peers Sunoco Logistics Partners (SXL), Buckeye Partners (BPL), and NuStar Energy (NS) have risen 9.7%, 5.1%, and 11.9%, respectively, in 2016.

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A look at GEL’s moving averages

Currently, Genesis Energy is trading 6.4% below its 50-day moving average and 3.0% above its 200-day moving average. However, the 50-day moving average is still above the 200-day moving average, which could indicate a bullish trend in GEL’s stock.

Genesis Energy’s 2Q16 earnings

Genesis Energy’s (GEL) 2Q16 adjusted EBITDA[1. earnings before interest, taxes, depreciation, and amortization] rose to $133.5 million from $87.3 million in 2Q15, a YoY (year-over-year) increase of 52.9%. This steep rise in the partnership’s adjusted EBITDA is mainly due to its acquisition of offshore assets from Enterprise Product Partners (EPD) in 3Q15.

Later in this series, we’ll analyze Genesis Energy’s balance position and cash flow measures. Following an analysis of GEL’s operating results, we’ll look into its valuations, commodity price exposure, key performance indicators, and analyst projections.


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