D.A. Davidson Reiterates a Buy Rating on Genesis Energy L.P.

By Jason Carr

In a report issued on November 4, Poe Fratt from D.A. Davidson reiterated a Buy rating on Genesis Energy L.P. (NYSE: GEL), with a price target of $41. The company’s shares opened today at $33.04.

According to TipRanks.com, Fratt is a 3-star analyst with an average return of 1.9% and a 63.2% success rate. Fratt covers the Basic Materials sector, focusing on stocks such as Blueknight Energy Partners L.P., Calumet Specialty Products, and Antero Midstream Partners.

Genesis Energy L.P. has an analyst consensus of Moderate Buy, with a price target consensus of $36.

Based on Genesis Energy L.P.’s latest earnings report from March 31, the company posted quarterly revenue of $378.4M and quarterly net profit of $35.3M. In comparison, last year the company earned revenue of $572.3M and had a net profit of $363.2M.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GEL in relation to earlier this year. Most recently, in February 2016, Jack T. Taylor, a Director at GEL bought 10,000 shares for a total of $247,700.

Genesis Energy LP operates as a master limited partnership, which focuses on midstream segment of the oil and gas industry. It provides integrated suite of services to oil producers, refineries, and industrial and commercial enterprises. The company operates through the following business segments: Onshore Pipeline Transportation, Refinery Services, Marine Transportation and Supply and Logistic. The Onshore Pipeline Transportation segment owns interests in crude oil pipelines, including the pipeline interests located in the Gulf Coast region of the U.S. It also owns two CO pipelines. The Refinery Services segment provides services to ten refining operations located primarily in Texas, Louisiana, Arkansas and Utah; operates storage and transportation assets in relation to those services; and sells sodium hydrosulfide and caustic soda to large industrial and commercial companies. The Marine Transportation Segment provides transportation services for customers. The Supply and Logistic segment provides services primarily to Gulf Coast oil and gas producers and refineries through a combination of purchasing, transporting, storing, blending and marketing of crude oil and refined products, primarily fuel oil, asphalt, and other heavy refined products. Genesis Energy was founded in December 1996 and is headquartered in Houston, TX.