Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

Genesis Energy, LP: No IDRs And A Steal-Of-A-Deal Mean Higher Distributions For LP Unitholders

Genesis Energy, LP (NYSE:GEL) is a mid-cap ($3 billion), midstream MLP with a diverse asset base of pipelines, refinery-related plants, storage tanks and terminals, marine operations, trucks and truck terminals. The LP has a 10-year track record of solid distribution growth. In July of 2015, GEL announced the completion of a $1.5 billion acquisition of pipelines and services businesses in the Gulf of Mexico from Enterprise Products Partners (NYSE:EPD). Considering the recent and expected growth in oil production from the GoM, the acquisition appears to be well-timed and the multiple was attractive. The potential for growing throughput on the acquired pipelines is high.

(click to enlarge)

Source: December presentation

As shown by the graphic above, Genesis

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details