Genesis Energy LP (NYSE:GEL) is a Master Limited Partnership (MLP) providing transport, refining, storage and other energy related services to its customers. The stock also pays a significant distribution for those investors looking for income.

IN PICTURES: 7 Tools Of The Trade

Pipeline Transportation
Genesis Energy LP received $46 million in operating income from the Pipeline Transportation segment in the 12 months ending Sept 30, 2010. The company owns four separate pipeline networks running approximately 425 miles across Texas, Alabama, Mississippi and Florida. These are used to transport crude oil, and Genesis Energy LP also owns approximately 900,000 barrels of above-ground storage facilities in these networks.

Genesis Energy LP owns 269 miles of pipeline used to transport carbon dioxide, including the Northeast Jackson Dome pipeline, which brings carbon dioxide to oil fields undergoing tertiary recovery.

Genesis Energy LP has a 20-year lease with Denbury Resources (NYSE:DNR) to supply carbon dioxide to the company's fields in Mississippi. Denbury Resources used to own the general partner of Genesis Energy LP and sold it in February 2010.

Refinery Services
Genesis Energy LP produced $59 million in operating income from the Refinery Services segment in the 12 months ending Sept 30, 2010. This company uses caustic soda to remove sulfur from natural gas during the refining process. This process generates large amounts of sodium hydrosulfide, which the company sells to customers in the mining, paper and pulp industries. The company's customers include International Paper (NYSE:IP) and BHP Billiton (NYSE:BHP)

Supply and Logistics
Genesis Energy LP also has a large supply and logistics business which generated $29 million in operating income in the 12 months ending Sept 30, 2010. The company owns crude oil and refined products storage and transportation assets here, including trucks and barges.

Industrial Gases
Genesis Energy LP is also involved in the industrial gas business and reported $12 million in operating income here in the 12 months ending Sept 30, 2010. The company sells carbon dioxide to customers for industrial uses including beverage carbonation.

Genesis Energy LP recently announced the purchase of a 50% interest in the Cameron Highway Oil Pipeline Company (CHOPS) from Valero (NYSE:VLO). The operator of CHOPS is Enterprise Products Partners, L.P. (NYSE:EPD), which also owns the other 50%.

CHOPS is a 380 mile pipeline segment that transports crude oil from the Gulf of Mexico to refineries in the Gulf Coast region. The pipeline has a capacity of 500,000 barrels per day and will give the company exposure to growing production from offshore developments in the gulf area.

High Yield
Genesis Energy LP also paid a distribution of $1.55 out to investors over the last four quarters, giving a yield of 6.4%. The company has increased its distribution for 21 consecutive quarters.

The Bottom Line
Genesis Energy LP is involved in the transport, refining, and storage of crude oil and natural gas and also comes with a high yield for those that need some cash flow. (Find out how to stay on top of data reports that could cause volatility in these markets. See Become An Oil And Gas Futures Detective.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Stock Analysis

    Will Virtusa Corporation's Stock Keep Chugging in 2016? (VRTU)

    Read a thorough review and analysis of Virtusa Corporation's stock looking to project how well the stock is likely to perform for investors in 2016.
  2. Stock Analysis

    Analyzing Porter's Five Forces on JPMorgan Chase (JPM)

    Examine the major money-center bank holding firm, JPMorgan Chase & Company, from the perspective of Porter's five forces model for industry analysis.
  3. Chart Advisor

    Watch This ETF For Signs Of A Reversal (BCX)

    Trying to determine if the commodity markets are ready for a bounce? Take a look at the analysis of this ETF to find out if now is the time to buy.
  4. Investing News

    What You Can Learn from Carl Icahn's Mistakes

    Carl Icahn has been a stellar performer in the investment world for decades, but following his lead these days could be dangerous.
  5. Stock Analysis

    Analyzing Dish Network's Return on Equity (ROE) (DISH, TWC)

    Analyze Dish Network's return on equity (ROE), understand why it has vacillated so greatly in recent years and learn what factors are influencing it.
  6. Investing Basics

    The Importance of Commodity Pricing in Understanding Inflation

    Commodity prices are believed to be a leading indicator of inflation, but does it always hold?
  7. Fundamental Analysis

    5 Must-Have Metrics For Value Investors

    Focusing on certain fundamental metrics is the best way for value investors to cash in gains. Here are the most important metrics to know.
  8. Stock Analysis

    Analyzing Altria's Return on Equity (ROE) (MO)

    Learn about Altria Group's return on equity (ROE) and analyze net profit margin, asset turnover and financial leverage to determine what is causing its high ROE.
  9. Fundamental Analysis

    Performance Review: Commodities in 2015

    Learn how commodities took a big hit in 2015 with a huge variance in performances. Discover how the major commodities performed over the year.
  10. Investing News

    Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow his lead?
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is the formula for calculating EBITDA?

    When analyzing financial fitness, corporate accountants and investors alike closely examine a company's financial statements ... Read Full Answer >>
  3. How do I calculate the P/E ratio of a company?

    The price-earnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate ... Read Full Answer >>
  4. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its ... Read Full Answer >>
  5. How do you calculate working capital?

    Working capital represents the difference between a firm’s current assets and current liabilities. The challenge can be determining ... Read Full Answer >>
  6. What is the formula for calculating the current ratio?

    The current ratio is a financial ratio that investors and analysts use to examine the liquidity of a company and its ability ... Read Full Answer >>
Trading Center