Houston-based Genesis Energy says in a quarterly report issued today that it expects to have its $125 million pipeline upgrades and expansion in Louisiana completed in the second half of this year.
“We continue to progress on our projects in Louisiana, stretching from Port Hudson through Baton Rouge, and south to Raceland, all designed to provide services for multiple refining complexes in Louisiana,” the company says in the report. “Although a small portion of that infrastructure is in operation, we would not expect to see meaningful volumes until those facilities are completed in the second half of 2015.”
The Genesis investment includes modernization and expansion of its terminal in Port Hudson, construction of an 18-mile, 20-inch diameter crude oil pipeline that is to connect to ExxonMobil’s Baton Rouge refinery, as well as construction of a new crude oil unit train facility here. The investment was originally announced by company and state officials in February 2013.
Genesis reports total available cash before reserves of $62.9 million in the last quarter of 2014, a 30% increase from the fourth quarter of 2013. The company’s earnings before interest, taxes, depreciation and amortization on the quarter totaled $82.5 million, a 33.1% increase over EBITDA in the last quarter of 2013.
“In spite of this lower commodity price environment, our businesses are performing well, and we expect them to continue to do so,” the company says in the quarterly report. “We are being well-served by our business strategies, including being primarily refinery-centric and supporting world-class oil developments of integrated and large independent energy companies operating in the deepwaters of the Gulf of Mexico.”
Genesis stock (ticker GEL) gained 52 cents Thursday to close at $47.32 a share. It’s 52-week high is $57.47 and its 52-week low is $34.57. West Texas intermediate crude oil, the U.S. benchmark, settled 84 cents lower for the day at $51.30 a barrel.
—Steve Sanoski
