Genesis Energy, L.P. provided an update on the deployment of approximately $1.010 billion in cash proceeds received from the sale of its Alkali Business on February 28, 2025. The company has made significant progress in reducing its mandatory annual cash expenditures.
The company reported a reduction of over $120 million annually in cash costs associated with the capital underlying its remaining businesses. This translates to approximately $1.00 per common unit outstanding in annual savings.
This substantial reduction includes approximately $37 million in annual principal and interest payments from the ORRI bonds, which became an obligation of the Alkali Business purchaser. These actions position Genesis to generate free cash flow in excess of operating costs, even before the anticipated increase in segment margin from its Gulf of America operations.
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