Genesis Energy, L.P. (NYSE:GEL) Q1 2023 Earnings Conference Call May 4, 2023 9:30 AM ET

Company Participants

Dwayne Morley – Vice President-Investor Relations

Grant Sims – Chief Executive Officer

Conference Call Participants

Michael Blum – Wells Fargo

TJ Schultz – RBC

Operator

Greetings, and welcome to the Genesis Energy First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to your host, Dwayne Morley, Vice President of Investor Relations. Thank you. You may begin.

Dwayne Morley

Good morning. Welcome to the 2023 first quarter conference call for Genesis Energy. Genesis has four business segments. The Offshore Pipeline Transportation segment is engaged in providing the critical infrastructure to move oil produced from the long-lived world-class reservoirs from the deepwater Gulf of Mexico to onshore refining centers. Sodium and Sulfur Services segment includes trona and trona-based exploring, mining, processing, producing, marketing and selling activities as well as the processing of sour gas streams to remove sulfur at refining operations.

The Onshore Facilities and Transportation segment is engaged in the transportation, handling, blending, storage and supply of energy products including crude oil and refined products. The Marine Transportation segment is engaged in the maritime transportation of primarily refined petroleum products. Genesis’ operations are primarily located in Wyoming, the Gulf Coast states and the Gulf of Mexico.

During this conference call, management may be making forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The law provides safe harbor protection to encourage companies to provide forward-looking information. Genesis intends to avail itself of those safe harbor provisions and directs you to its most recently filed and future filings with the Securities and Exchange Commission.

We also encourage you to visit our website at genesisenergy.com, where a copy of the press release we issued today is located. The press release also presents a reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures.

At this time, I would like to introduce Grant Sims, CEO of Genesis Energy, L.P. Mr. Sims will be joined by Kristen Jesulaitis, Chief Financial Officer and Chief Legal Officer; Ryan Sims, President and Chief Commercial Officer; and Louie Nicol, Chief Accounting Officer.

Grant Sims

Good morning to everyone. Thanks for listening in. As we mentioned in our earnings released this morning, our financial results for the first quarter were generally in line and consistent with our annual guidance. They did end up below our internal expectations for reasons well beyond our control. Most notably, our soda ash business was negatively impacted by the coldest first quarter in the last 23 years in southwest Wyoming, which challenged our operations and significantly impacted rail service, which in turn reduced our production and sales volumes during the quarter.