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Genesis Energy: Momentum Builds in Gulf of Mexico with Controlled Risks and Improved Finances.
ByAinvest
Thursday, Jul 31, 2025 1:39 am ET1min read
Genesis Energy is experiencing momentum in the Gulf of Mexico due to controlled operational risks and eased financial pressures. The company is seeing early returns from projects, putting it on a solid path towards success.
Genesis Energy (NYSE: GEL) is experiencing significant momentum in the Gulf of Mexico, driven by controlled operational risks and eased financial pressures. The company is seeing early returns from its projects, positioning it on a solid path towards success.On July 31st, Genesis Energy is set to announce its Q2 earnings results, with analysts expecting a consensus EPS estimate of -$0.04 [1]. This announcement will provide further insight into the company's financial health and operational performance.
One of the key drivers of Genesis Energy's momentum in the Gulf of Mexico is its partnership with Baker Hughes. The multi-year agreement secured in the second quarter of 2025 encompasses the supply of drag-reducing agents (DRAs) for two vital offshore oil pipelines off the US Gulf Coast [2]. This partnership is expected to boost oil production and provide greater flexibility in handling different types of crude oil.
The application of midstream solutions and DRAs, facilitated by Baker Hughes' FLO product line, will enhance the capacity of the Cameron Highway Oil Pipeline and Poseidon systems, which are 64% owned and operated by Genesis Energy. The use of these technologies will enable Genesis Energy to increase its pipeline capacity without the need for large investments of time and capital, while also supporting the nation's offshore energy infrastructure.
Baker Hughes' executive vice-president Amerino Gatti highlighted the importance of technology in keeping up with America's growing energy demand and avoiding bottlenecks. The chemical formulations used in the DRAs are particularly efficient at dissolving in crude oil, making them suitable for various types of crude, including those from the US Gulf Coast.
Genesis Energy's strategic initiatives and partnerships in the Gulf of Mexico are contributing to its early success, positioning the company for future growth and profitability.
References:
[1] https://seekingalpha.com/news/4474675-genesis-energy-q2-earnings-preview
[2] https://finance.yahoo.com/news/baker-hughes-supply-dras-genesis-150811839.html
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