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.

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Source: December presentation

As shown by the graphic above, Genesis

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