Genesis Energy, L.P. (NYSE: GEL) today announced its first quarter results. Results for the quarter ended March 31, 2012 included the following items:
- For the first quarter of 2012, we generated record total Available Cash before Reserves of $39.6 million, an increase of $7.8 million, or 24%, over the first quarter of 2011. Available Cash before Reserves is a non-GAAP measure that is defined and reconciled later in this press release to its most directly comparable GAAP financial measure, net income.
- The Partnership reported net income for the quarter ended March 31, 2012 of $19.6 million or $0.27 per unit compared to $7.0 million or $0.11 per unit for the same period in 2011.
- We completed the acquisition of interests in several Gulf of Mexico crude oil pipeline systems from Marathon in January 2012. The acquired Gulf of Mexico pipeline interests contributed throughput volumes over 250,000 barrels per day during the first quarter of 2012. We also increased volumes in our Supply and Logistics segment over 20% from the first quarter of last year reflecting our ability to capitalize on the increase in activity in the shale oil areas in Texas and Wyoming.
- During the first quarter of 2012, we issued 5,750,000 common units in an equity offering to the public, and we issued $100 million of face value notes in a private placement. The proceeds from the two events, net of issuance costs, was $268 million, which was used to repay borrowings under our credit facility.
- On May 15, 2012, we will pay a total quarterly distribution of $35.8 million attributable to our financial and operational results for the first quarter of 2012, based on our quarterly declared distribution of $0.45 per unit. Our Available Cash before Reserves provided 1.11 times coverage for this quarterly distribution. Our coverage ratio was impacted by the issuance of common units in late March 2012. Exclusive of these units, the coverage ratio of Available Cash for the distribution related to the units outstanding throughout the quarter was 1.2 times.
Grant Sims, CEO of Genesis Energy, said, “We achieved another record level of Available Cash before Reserves this quarter reflecting our ability to identify the right strategic opportunities, successfully integrate our acquisitions and capitalize on increasing demand in our businesses. We are extremely pleased with the contributions from our recently completed acquisitions and growth initiatives over the last several quarters. These initiatives have been accretive to our results and will continue to benefit us as we identify additional ways to create synergies with our existing core assets. None of this would be possible without the contributions of our employees and their commitment to safe, responsible and efficient operations.”