Genesis Energy LP (GEL) 2024 Q2 法說會逐字稿

Greetings and welcome to the Genesis Energy LP second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dwayne Morley, Vice President of IR. Thank you, Dwayne. You may begin.

歡迎參加 Genesis Energy LP 2024 年第二季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，IR 副總裁德韋恩·莫利 (Dwayne Morley)。謝謝你，德韋恩。你可以開始了。

Good morning. Welcome to the 2024 second quarter conference call for Genesis Energy. Genesis Energy has four business segments. The offshore pipeline transportation segment is engaged in providing the critical infrastructure to move oil produced from the long-lived world-class reservoirs from the deep water Gulf of Mexico to onshore refining centers.

早安.歡迎參加 Genesis Energy 2024 年第二季電話會議。Genesis Energy有四個業務部門。海上管道運輸部門致力於提供關鍵基礎設施，將長期世界級油藏生產的石油從墨西哥灣深水運送到陸上煉油中心。

Soda and sulfur services segment includes Trona and Trona based exploring, mining, processing, producing marketing, and selling activities as well as the processing of sour gas streams to remove sulfur at refining operations.

蘇打和硫服務部門包括基於天然鹼和天然鹼的勘探、採礦、加工、生產行銷和銷售活動，以及在煉油業務中加工酸性氣流以去除硫。

The onshore facilities and transportation segment is engaged in the transportation handling, blending, storage, and supply of energy products, including crude oil and refined products. The marine transportation segment is engaged in the maritime transportation of primarily refined petroleum products. Genesis's operations are primarily located in Wyoming, the Gulf Coast states, and the Gulf of Mexico.

陸上設施和運輸部門從事能源產品（包括原油和成品油）的運輸處理、混合、儲存和供應。海運分部從事主要精煉石油產品的海運業務。Genesis 的業務主要位於懷俄明州、墨西哥灣沿岸各州和墨西哥灣。

During this conference call, management may be making forward-looking statements within the meanings of the Securities Act of 1933 and the Securities Exchange Act of 1934. The law provides Safe Harbor protection to encourage companies to provide forward-looking information.

在本次電話會議期間，管理階層可能會做出 1933 年證券法和 1934 年證券交易法意義內的前瞻性聲明。該法提供安全港保護，鼓勵公司提供前瞻性資訊。

Genesis intends to avail itself of those Safe Harbor provisions and directs you to its most recently filed and future filings with the Securities Exchange Commission. We also encourage you to visit our website at genesisenergy.com, where a copy of the press release we issued today is located. The press release also presents a reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures.

Genesis 打算利用這些安全港條款，並指導您查看其最近向證券交易委員會提交的文件和未來的文件。我們也鼓勵您造訪我們的網站 genesisenergy.com，其中包含我們今天發布的新聞稿副本。新聞稿也提供了非公認會計原則財務指標與最具可比性的公認會計原則財務指標的調節表。

At this time, I'd like to introduce Grant Sims, CEO of Genesis Energy LP. Mr. Sims will be joined by Kristen Jesulaitis, Chief Financial Officer and Chief Legal Officer; Ryan Sims, President and Chief Commercial Officer; and Louie Nicol, Chief Accounting Officer.

這次我想介紹一下 Genesis Energy LP 執行長 Grant Sims。Sims 先生將由財務長兼首席法務官 Kristen Jesulaitis 加入； Ryan Sims，總裁兼首席商務官；和首席會計官路易·尼科爾(Louie Nicol)。

Good morning to everyone, and thank you for listening to the call. As we mentioned in our earnings release this morning, we continue to move closer and closer to the important inflection point when we will complete our current major capital spending program, and we are a short time away from a notable step change in earnings and cash flow.

大家早安，感謝您收聽電話。正如我們在今天早上的財報中提到的，我們越來越接近重要的拐點，屆時我們將完成當前的主要資本支出計劃，而且我們距離盈利和現金流顯著的階躍變化還有很短的時間。

We have always viewed 2024 as kind of a transition year and have instead been more focused on '25 and beyond. As such, I thought it would be most useful to comment further on the internal discussions that have been ongoing at the Board level regarding capital allocation and strategic priorities for Genesis.

我們一直將 2024 年視為過渡年，轉而更加關注 25 年及以後。因此，我認為進一步評論董事會層面正在進行的有關 Genesis 資本分配和戰略優先事項的內部討論將是最有用的。

As we have detailed in the past and subject to certain assumptions, the current annual cash cost of running our businesses, including all cash interest payments, cash maintenance capital requirements, principal and interest on our alkalized senior secured notes from cash taxes, approximately $88 million worth of payments on the currently outstanding and 11.24% coupon convertible preferred units, and roughly $73.5 million worth of cash payments based on the current common unit distribution of $0.6 per annum, for all adds up to be approximately $620 million per year.

正如我們過去所詳述的，並根據某些假設，目前經營業務的年度現金成本，包括所有現金利息支付、現金維持資本要求、來自現金稅的鹼化高級擔保票據的本金和利息，約為8,800 萬美元目前未償還的和 11.24% 息票可轉換優先單位的支付金額，以及基於當前每年 0.6 美元的普通單位分配的大約 7,350 萬美元的現金支付金額，總計每年約為 6.2 億美元。

That's the annual cash cost of running our businesses as currently capitalized. At this point, we have spent everything we anticipated to spend on our Granger expansion and the vast majority of the cash required on our offshore expansion projects has already been pursued will be spent. While a little of this expansion capital will slip into the first part of 2025 due to some previously disclosed producer delays the $1 billion-plus of growth capital we have deployed over the last several years should all be out the door by the end of the first quarter 2025.

這是我們目前資本化業務的年度現金成本。至此，我們已經花完了我們預計用於格蘭傑擴張的所有資金，並且我們的離岸擴張項目所需的絕大多數現金也已經投入使用。雖然由於一些先前披露的生產商延遲，部分擴張資本將流入 2025 年上半年，但我們在過去幾年中部署的超過 10 億美元的成長資本應該會在第一季末全部到位。

In advance of first production from our contracted offshore developments coming online and starting to ramp in the second quarter next year. Looking out over the coming years, we have identified no growth capital projects and remain committed to not pursuing any meaningful growth capital projects in the near term. In essence, because we believe we have laid the foundation for meaningfully higher and sustainable adjusted EBITDA for the foreseeable future and really don't need to pursue anything.

在我們簽約的海上開發項目的首次生產即將上線並於明年第二季度開始增加之前。展望未來幾年，我們沒有確定任何成長資本項目，並繼續致力於在短期內不尋求任何有意義的成長資本項目。從本質上講，因為我們相信我們已經為可預見的未來有意義的更高且可持續的調整後 EBITDA 奠定了基礎，實際上不需要追求任何東西。

As we look ahead to the full year of 2025, assuming a mid-year startup for our contracted offshore developments, a marginal sequential recovery is our soda ash business and steady to marginally increasing performance in our marine transportation segment, we believe Genesis should be able to generate approximately $800 million in adjusted EBITDA in 2025. And we could be approaching and potentially exceeding $900 million of adjusted EBITDA in 2026, at least based on how we see our future world today,

展望 2025 年全年，假設我們的合約海上開發項目在年中啟動，我們的純鹼業務將出現邊際連續復甦，並且我們的海洋運輸領域的業績將穩定到小幅增長，我們相信 Genesis 應該能夠到2025 年，調整後的EBITDA 約為8 億美元。至少根據我們今天對未來世界的看法，到 2026 年，我們的調整後 EBITDA 可能會接近並可能超過 9 億美元，

It is easy to figure out that upon completion of our capital spending program, coupled with the absence of any meaningful future growth capital requirements in the near term, we expect to be generating significant amounts of cash over the next several years and beyond.

很容易看出，在我們的資本支出計畫完成後，加上短期內沒有任何有意義的未來成長資本需求，我們預計將在未來幾年及以後產生大量現金。

Looking at the balance sheet, the combination of our successful capital markets transactions are included in our most recent bond offering in May, and the recent extension of our senior secured credit facility into 2028 that we announced a couple of weeks ago, has positioned the partnership with no near-term debt maturities.

從資產負債表來看，我們成功的資本市場交易已包含在我們最近5 月份的債券發行中，而且我們幾週前宣布的最近將高級擔保信貸安排延長至2028 年，使我們的合作夥伴關係處於有利地位。

Given the expansion of certain buckets and permitted investments recently agreed to in our senior secured credit facility, we have ensured the partnership has more than adequate financial flexibility and liquidity to continue to simplify and strengthen our capital structure by redeeming our high cost convertible preferred and paying down debt in absolute terms.

鑑於最近在我們的優先擔保信貸安排中同意擴大某些類別和允許的投資，我們確保該合作夥伴關係具有足夠的財務靈活性和流動性，透過贖回我們的高成本可轉換優先股並支付費用，繼續簡化和加強我們的資本結構減少債務的絕對值。

These actions should in turn lower our cost of capital and ultimately reduce the long-term annual cash costs of running our businesses, affording us overtime even more flexibility and levers we can pull to maximize unitholder value. With this backdrop and given our confidence in this future cash flow, today we are announcing that the Board of Directors has approved an increase in our quarterly common unit distribution of $0.015 per unit, starting with the third quarter distribution, which is scheduled to be paid in mid-November. This represents a 10% increase over the second quarter's distribution and yet only represents an incremental annual cash costs of approximately $7.3 million.

這些行動反過來應該降低我們的資本成本，並最終降低經營業務的長期年度現金成本，為我們提供更大的靈活性和槓桿，使我們可以最大限度地提高單位持有人的價值。在此背景下，並考慮到我們對未來現金流的信心，今天我們宣布，董事會已批准將我們的季度普通單位分配增加至每單位 0.015 美元，從第三季度分配開始，預計將支付十一月中旬。這比第二季的分配增加了 10%，但僅意味著年度現金成本增量約為 730 萬美元。

The Board believes this is an important first step and should signal to the market, the confidence we have in the future performance of our businesses. Subject to future Board deliberation and approval, we could envision this comment union common unit distribution growth, continuing in coming quarters and years as we realize increasing EBITDA and benefit from the reduced cash obligations to run our businesses, resulting from the redemption of high coupon securities throughout our capital structure.

董事會認為這是重要的第一步，應該向市場表明我們對業務未來表現的信心。根據未來董事會的審議和批准，我們可以預見這一評論聯盟普通單位分配的增長將在未來幾個季度和幾年中持續下去，因為我們意識到EBITDA 不斷增加，並受益於因贖回高息票證券而減少的經營業務的現金義務貫穿我們的資本結構。

By way of illustration, if we were to continue this level of quarterly distribution growth for, say, 10 quarters in a row, the quarterly distribution by the end of 2026 would double from where it currently is and yet would only represent an incremental annual cash cost of approximately $73.5 million per year.

舉例來說，如果我們連續 10 個季度保持這種季度分配增長水平，到 2026 年底，季度分配將比目前翻一番，但僅代表年度現金增量每年的成本約為 7350 萬美元。

By 2027, we will have likely redeemed hundreds of millions of dollars of the high cost convertible preferred and or pay down meaningful amounts of debt and therefore would have reduced the cash cost of running our businesses. This in turn would result in even greater cash flow, everything else the same. And we would be able to accelerate the redemption of the remaining preferred, further reduce outstanding debt as well as extend our flexibility to further increase the distribution and or take other strategic steps to drive unitholder value.

到 2027 年，我們可能會贖回數億美元的高成本可轉換優先股，並/或償還大量債務，從而降低營運業務的現金成本。在其他條件不變的情況下，這反過來又會帶來更大的現金流。我們將能夠加速剩餘優先股的贖回，進一步減少未償債務，並擴大我們的靈活性，以進一步增加分配和/或採取其他策略步驟來推動單位持有人價值。

In summary, absent unforeseen circumstances, we believe we have positioned the partnership with more than adequate financial flexibility and a clear line of sight on robust commercial opportunities to hopefully be able to create long-term value for everyone in the capital structure in the coming years. Now I will touch briefly on our individual business segments.

總而言之，如果沒有不可預見的情況，我們相信我們已經為合作夥伴關係提供了足夠的財務靈活性和對強勁商業機會的清晰視野，希望能夠在未來幾年為資本結構中的每個人創造長期價值。現在我將簡要介紹我們的各個業務部門。

As mentioned in our earnings release, our offshore segment was negatively affected by what can be characterized as technical issues at a couple of large fields and a couple of months delay from our original expectations and the startup of a couple of new subsea developments. I want to emphasize that the occasional technical issue offshore and or delays in bringing new developments online are not uncommon.

正如我們在財報中提到的，我們的海上業務受到幾個大型油田技術問題的負面影響，以及我們最初預期的延遲幾個月以及幾個新的海底開發項目的啟動。我想強調的是，偶爾出現的離岸技術問題和/或將新開發成果上線的延遲並不罕見。

While the timing of the production might move to the right, a little or even a few quarters, there are rarely ever any long-term impacts to the production profile or the reservoir. The oil will still be produced and ultimately flow through our pipelines. Our offshore expansion projects remain on schedule, and we continue to expect to complete most of the construction work by the end of this year.

雖然生產時間可能會向右移動一點甚至幾個季度，但很少會對生產狀況或油藏產生任何長期影響。石油仍將生產並最終流經我們的管道。我們的海上擴建工程仍按計畫進行，我們繼續預計在今年年底前完成大部分建設工作。

We expect to finalize the connection of the new SYNC pipeline to the Shenandoah floating production system once it arrives at its final location in the Gulf of Mexico with such work likely spilling over to the first quarter of 2025. Both the Shenandoah and Salamanca developments and their combined almost 200,000 barrels a day of incremental production handling capacity remain on schedule to be online in the second quarter of 2025.

我們預計，一旦新的 SYNC 管道抵達墨西哥灣的最終位置，即可完成與 Shenandoah 浮式生產系統的連接，此類工作可能會延續到 2025 年第一季。Shenandoah 和 Salamanca 的開發案及其每天近 20 萬桶的增量生產處理能力仍按計劃於 2025 年第二季上線。

As we have mentioned in the past, these two developments alone will provide us with anticipated incremental annual segment margin of approximately $90 million at the contracted take-or-pay level and upwards of $120 million at 75% of the producers' respective forecasts. These amounts could approach $160 million per annum net to us to the extent that producers meet or exceed 100% of their respective forecast when fully ramped.

正如我們過去所提到的，光是這兩個開發案就將為我們帶來約9,000 萬美元的預期增量年度分部利潤（按合約照付不議水平計算），以及超過1.2 億美元（按生產商各自預測的75% 計算）。如果生產商在全面投產時達到或超過各自預測的 100%，那麼這些金額對我們來說每年淨額可能接近 1.6 億美元。

We continue to expect both these fields to ramp very quickly and reach initial peak production within three to six months of their respective dates for first production. These two new floating production facilities are also expected to serve as host platforms for additional future subsea developments or tieback opportunities, which could sustain or increase these cash flows to us for years and years into the future.

我們仍然預計這兩個油田將非常迅速地成長，並在各自首次生產後的三到六個月內達到最初的高峰產量。預計這兩個新的浮動生產設施也將作為未來額外海底開發或回接機會的主機平台，這可以在未來幾年內維持或增加我們的現金流。

In fact, a group of producers led by Beacon has recently taken a final investment decision on the Monument field that will be developed as a 17 mile subsea tieback to the new Shenandoah floating production unit. The Shenandoah FPU has been expanded to accommodate an additional 20,000 barrels per day from Monument starting in mid to late 2026.

事實上，Beacon 領導的一組生產商最近對 Monument 油田做出了最終投資決定，該油田將開發為新 Shenandoah 浮式生產裝置的 17 英里海底回接。Shenandoah FPU 已進行擴建，從 2026 年中後期開始，每天可額外容納 20,000 桶來自 Monument 的石油。

We would expect to finalize agreements to move these volumes through our SYNC lateral and onto shore through the CHOPS pipeline under terms and conditions generally consistent with those for Shenandoah. Monument is the first example of what is likely a broader set of incremental opportunities that have been identified but are not fully sanctioned by the producers involved in the geographic vicinity of our new SYNC pipeline as well as around our other existing pipeline infrastructure in the central Gulf of Mexico.

我們預計將最終敲定協議，根據與 Shenandoah 的條款和條件大致一致的條款和條件，透過 SYNC 支線將這些體積輸送到岸上，並透過 CHOPS 管道輸送到岸上。紀念碑是可能是更廣泛的增量機會的第一個例子，這些機會已被確定但尚未得到參與我們新 SYNC 管道地理附近以及我們在海灣中部其他現有管道基礎設施周圍的生產商的完全認可墨西哥。

Importantly, our ongoing discussions around the connection of additional infield, subsea, and or secondary recovery development opportunities would not require any incremental capital on our part and could turn to production as early as next year and certainly over the next few years.

重要的是，我們圍繞額外的內田、海底和/或二次回收開發機會的連接正在進行的討論不需要我們增加任何資本，並且最早可能在明年、當然在未來幾年內轉向生產。

We remain advantageously positioned in the central Gulf of Mexico and believe our steady and marginally increasing base of volumes transported combined with these new developments coming online in mid 2025 and 2026 plus the potential for additional subsea tieback and development opportunities just like Winter fill in Warrior and Monument give us the opportunity to deliver significantly higher and sustainable cash flows from offshore transportation segment for many years and decades to come.

我們在墨西哥灣中部仍處於有利地位，並相信我們的運輸量基礎穩定且略有增長，再加上這些新開發項目將於2025 年中期和2026 年上線，加上潛在的額外海底回接和開發機會，例如Warrior 的冬季填充和紀念碑使我們有機會在未來許多年和幾十年內從海上運輸領域提供顯著更高且可持續的現金流。

Turning now to our soda and sulfur services segment. Our soda ash business generally performed in line with our expectations despite some lingering production challenges at our Westvaco operations as well as not having a full quarter's worth of production from Granger due to the need to replace the defective component parts we discussed last quarter.

現在轉向我們的蘇打水和硫磺服務部門。我們的純鹼業務整體表現符合我們的預期，儘管我們的Westvaco 業務仍面臨一些揮之不去的生產挑戰，而且由於需要更換我們上季度討論的有缺陷的零部件，Granger 的產量沒有達到整個季度的水平。

With these items now behind us, we expect the back half of the year to be more representative of the true production capabilities of our soda ash. The global macro conditions for soda ash continued to show signs of bottoming. The market dynamics within China so far this year continue to be strong, as evidenced by year-to-date export totals of soda ash from China being down 56% year over year, whilst imports into China were up 266% for the same period.

現在這些項目已經過去了，我們預計今年下半年將更能代表我們純鹼的真實生產能力。全球純鹼宏觀情勢持續呈現觸底跡象。今年迄今，中國國內的市場動態依然強勁，今年迄今中國純鹼出口總量較去年同期下降 56%，而同期中國進口量成長 266%。

Furthermore, third-party research indicates that apparent demand for soda ash within China has grown by 28% year to date, with the large drivers being the steady production of lithium carbonate EV production and solar glass which are up by approximately 53%, 29%, and 23%, respectively, year over year through the end of June.

此外，第三方研究表明，今年以來，中國純鹼的表觀需求增長了 28%，其中最大的推動因素是碳酸鋰電動汽車生產和太陽能玻璃的穩定生產，增長了約 53%、29%截至6 月底，年比分別成長、 和23% 。

We also continued to see changes in the flow of physical volumes around the globe, most notably with natural soda ash tons that were moving to Asia last year that are now moving into Europe to displace high-cost synthetic soda ash work to fill the holes left by the shuttering of high-cost synthetic production facilities in the region.

我們也繼續看到全球實物量流動的變化，最顯著的是去年轉移到亞洲的天然純鹼噸，現在正在轉移到歐洲，以取代高成本的合成純鹼工作，以填補留下的空白關閉該地區高成本的合成生產設施。

This schematic is supported by third-party research, indicating that exports of natural soda from Turkey to Asia, excluding China, during the first five months of the year were down 17% year over year. At the same time, Turkish exports to Europe and the Middle East Africa were up 16% and 14% year over year respectively through May.

該示意圖得到了第三方研究的支持，顯示今年前五個月土耳其向亞洲（不包括中國）的天然蘇打出口量比去年同期下降了 17%。同時，截至 5 月份，土耳其對歐洲和中東非洲的出口較去年同期分別成長 16% 和 14%。

We believe these changes in physical flows and the steady demand for soda ash within China combined with recent increases in certain transportation costs and some supply disruptions from other US producers in the second quarter have yet to fully trickle into the export markets. All should lead to continued tightness in our traditional export markets and the potential for soda ash prices to improve over the balance of the year.

我們認為，中國境內實體流量的變化和純鹼需求的穩定，加上最近某些運輸成本的增加以及第二季度其他美國生產商的一些供應中斷尚未完全滲透到出口市場。所有這些都將導致我們傳統出口市場的持續緊張以及純鹼價格在今年餘下時間裡上漲的潛力。

And importantly, in advance of our contract negotiation for our open volumes in 2025. Regardless of these real-time dynamics, there is no doubt that overtime markets work. Physical volumes always flow to the highest valued markets.

重要的是，在我們 2025 年開放捲的合約談判之前。不管這些即時動態如何，加班市場毫無疑問是有效的。實物量總是流向價值最高的市場。

The market data points I mentioned the expected continued return of normalized global economic growth and the continued increase in worldwide demand from various low carbon transition initiatives all lead us to believe that the market is, in fact, rebalancing and is poised to become increasingly more balanced, which in turn should provide support for higher prices and a sequential improvement in the financial performance of our soda ash business over the coming quarters and years ahead.

我提到的市場數據點，全球經濟成長正常化的預期持續回歸，以及各種低碳轉型措施帶來的全球需求的持續成長，都讓我們相信市場實際上正在重新平衡，並準備變得越來越平衡，這反過來將為更高的價格提供支持，並為我們純鹼業務在未來幾個季度和未來幾年的財務業績連續改善提供支持。

Of our sulfur services business performed in line with our expectations during the quarter. Our marine transportation segment continues to meet or exceed our expectations as market conditions and demand fundamentals continue to remain very favorable.

我們的硫磺服務業務本季的表現符合我們的預期。由於市場條件和需求基本面持續保持非常有利，我們的海運業務持續達到或超越我們的預期。

We continue to operate with utilization rates at or near 100% of practical available capacity for all classes of our vessels and expect the progression of day rates to be commensurate with those underlying fundamentals as our existing term and spot charters were new over the remainder of the year and into 2025.

我們繼續以所有級別船舶實際可用運力的100% 或接近100% 的利用率運營，並預計日費率的進展將與這些基本面相稱，因為我們現有的定期租船和即期租船在剩餘時間內都是新的。

These fundamentals, combined with the completion of most of our previously scheduled drydocking or should drive sequential segment improvement in the back half of this year and continue into next year. As I have mentioned in the past and will reiterate, again today, the value proposition for Genesis remains unchanged and totally intact.

這些基本面，再加上我們先前規劃的大部分乾船塢的完成，應該會推動今年下半年的業務連續改善，並持續到明年。正如我過去提到的並將在今天再次重申的那樣，Genesis 的價值主張保持不變且完好無損。

We have clear line of sight to the end of our current growth capital program in the next few quarters. As we sit here today, we look forward to the increasing financial performance of our businesses next year. And accelerating into 2026, driven primarily by identified and contracted growth in our offshore transportation, a lighter dry docking schedule and full year of day rates at historically high levels driving improved performance in our marine transportation segment.

我們對在未來幾季結束目前的成長資本計畫有明確的目標。當我們今天坐在這裡時，我們期待著明年我們企業的財務表現不斷提高。加速進入 2026 年，主要是由於我們的海上運輸的確定和合約增長、更輕的干船塢計劃以及處於歷史高位的全年日費率推動了我們海上運輸領域業績的改善。

And in addition, at a likely sequential improvement in soda ash pricing resulted in an improvement in the financial results from our soda ash operations. I want to emphasize again that Genesis is not and never has been a 2024 story. Instead of it's a '25, '26 story where we reasonably expect to ultimately be capable of generating upwards of $250 million to $350 million or more of excess cash per year and be able to sustain around those levels for many years to come. This will allow us to simplify our capital structure, lower our overall cost of capital, maintain prudent leverage, and have the ability to opportunistically drive long-term value for our unitholders.

此外，純鹼定價的連續改善可能導致我們純鹼業務的財務表現改善。我想再次強調，《創世紀》不是、也從來不是一個 2024 年的故事。我們合理地預期最終能夠每年產生超過 2.5 億至 3.5 億美元或更多的超額現金，並能夠在未來許多年維持在這些水平，而不是 25、26 年的故事。這將使我們能夠簡化資本結構，降低整體資本成本，保持審慎的槓桿率，並有能力為我們的單位持有人創造長期價值。

Finally, I'd like to say the management team and our Board of Directors remain steadfast in our commitment to building long-term value for all our stakeholders, regardless of where you are in the capital structure. We believe the decisions we are making reflect this commitment and our confidence in Genesis moving forward.

最後，我想說，管理團隊和董事會仍然堅定不移地致力於為所有利害關係人創造長期價值，無論您處於資本結構的哪個階段。我們相信我們所做的決定反映了這一承諾以及我們對 Genesis 前進的信心。

I would once again like to recognize our entire workforce for their individual efforts and unwavering commitment to safe and responsible operations. I'm extremely proud to be associated with each and every one.

我想再次表彰我們全體員工的個人努力以及對安全和負責任運營的堅定承諾。我非常自豪能夠與每一個人有聯繫。

With that, I'll turn it back to the moderators for questions.

這樣，我會將其轉回給主持人提問。

(Operator Instructions) Michael Blum, Wells Fargo.

（操作員說明）Michael Blum，富國銀行。

Thanks. Good morning, everyone. I wanted to ask on your capital allocation comments, can you give us like a rank order of your priorities and if there are any limitations and repurchasing debt early in terms of prepayment penalties and the like?

謝謝。大家早安。我想問一下您對資本配置的意見，您能否給我們提供您的優先順序，以及在提前還款罰款等方面是否有任何限制和提前回購債務？

As I said, I think our priorities are a little bit of all of the above. I think starting with the increase in the distribution as well as what we perceive to be further increases in the distribution as we go through time at the same time redeeming high priced or high coupon securities in the capital structure.

正如我所說，我認為我們的優先事項是上述所有內容的一部分。我認為，首先是分配的增加，以及我們認為隨著時間的推移，分配的進一步增加，同時贖回資本結構中的高價或高息票證券。

So as we mentioned, we have expanded buckets and increase the amount of permitted investments under our senior secured facility to be able to it periodically harvest, so to speak, the high price to coupons in the capital structure, all of which reduces the costs of running our business and therefore increases the amount of excess cash flow that we can either accelerate the redemption and harvesting of those higher priced securities or have the flexibility to continue to increase the distribution or otherwise return capital to it to the equity holders.

因此，正如我們所提到的，我們擴大了投資範圍，並增加了高級擔保設施下允許的投資金額，以便能夠定期收穫，可以說，資本結構中的高息票價格，所有這些都降低了成本經營我們的業務，因此增加了多餘的現金流量，我們可以加速贖回和收穫那些價格較高的證券，或者可以靈活地繼續增加分配或以其他方式將資本返還給股東。

Okay, great. Thanks for that. And then I just wanted to ask a little bit on the marine transportation business. First, can you give us a sense of the magnitude that increase in day rates you're seeing? And then just remind us the long-term strategy for this business. Do use you consider that to be like a core asset within the Genesis portfolio? Thanks.

好的，太好了。謝謝你。然後我只是想問一些關於海運業務的問題。首先，您能否讓我們了解一下您所看到的日費率成長的幅度？然後提醒我們這項業務的長期策略。您是否認為這是 Genesis 投資組合中的核心資產？謝謝。

Yeah. I think that consistent with some of the other public commentary that came out today by other public companies. We would think that that's consistent that we're seeing day rates increase in the high single digits to mid-teens, depending upon class of vessels. Utilization for us is as a practical matter, 100% of available that is not mean that either in drydock or other kind of maintenance required.

是的。我認為這與其他上市公司今天發表的一些其他公開評論一致。我們認為，這與我們看到的日費率從高個位數到中十幾位數的成長是一致的，具體取決於船舶的類別。對我們來說，利用率是一個實際問題，100% 可用並不意味著無論是在乾船塢還是需要其他類型的維護。

So we think it's a -- we have the ability to -- we will set a record this year have contributed or segment margin in our marine group. And I think that we have room to grow that in '25. Also, I mean, as we've commented earlier, that the only substantive way to kind of resolve the supply demand tightness in the marine world is the increase in Jones Act tonnage through new construction.

因此，我們認為，我們有能力，今年將創下我們海事集團貢獻或細分利潤率的記錄。我認為我們在 25 年還有發展的空間。另外，我的意思是，正如我們之前評論的那樣，解決海洋世界供應需求緊張的唯一實質方法是透過新建船舶增加《瓊斯法案》噸位。

I think we would continue to believe that the day rates need to go up 20% to 30% from here and be sustained at that level for a significant period of time before significant newbuild programs are undertaken. And so as a result, I think that we've used the next several years as a very good position to be in and holding and maintaining a young fleet of Jones Act tonage such as ours.

我認為我們仍然認為日費率需要從現在開始上漲 20% 至 30%，並在實施重大新建項目之前在很長一段時間內維持在該水平。因此，我認為我們在接下來的幾年中處於非常有利的位置，可以維持和維護像我們這樣的年輕的瓊斯法案噸位艦隊。

Wade Suki, Capital One.

韋德·蘇基，《第一資本》。

Morning everyone. Appreciate you taking my questions. Just offshore, really appreciate your commentary there, Grant, on the activity levels. I'm wondering if how we think about tiebacks and tie-ins, is this potentially more than offsetting sort of base declines that you're seeing in the system? Is that a fair way to think about it the opportunity going forward or is it really just sort of offsetting existing declines from the larger projects and base projects for that matter?

大家早安。感謝您回答我的問題。就在海上，格蘭特，非常感謝您對活動水平的評論。我想知道我們是否如何看待回扣和搭售，這是否可能足以抵消您在系統中看到的基礎下降？這是一個公平的方式來考慮未來的機會，還是它真的只是抵消較大專案和基礎專案的現有下降？

Yeah, we see the cadence of the infill drilling and subsea tiebacks, in essence at least offsetting the declines that we see from our more mature fields. And therefore, these incremental opportunities such as Salamanca and Shenandoah and now Monument are kind of truly incremental. So that's it.

是的，我們看到加密鑽井和海底回接的節奏，本質上至少抵消了我們從更成熟的油田看到的下降。因此，薩拉曼卡和謝南多厄以及現在的紀念碑等這些增量機會是真正增量的。就是這樣。

And in some cases, we do see the level of activity of subsea and tiebacks and stuff actually increasing our base load of business. So it's all a very good situation. And that's why we like to be the one and only export pipeline off of these deep water facilities because you'll set up for a decade's long versus the a geographic franchise.

在某些情況下，我們確實看到海底和回接等活動的水平實際上增加了我們的基本業務負載。所以這一切都是一個非常好的情況。這就是為什麼我們希望成為這些深水設施的唯一出口管道，因為與地理特許經營相比，您將建立長達十年的時間。

Fantastic. Thank you for that. And just switch gears a little bit to soda ash. Would you mind maybe updating us on where you guys are in terms of kind of price certain volumes, open capacity, so to speak, looking out to next year?

極好的。謝謝你。只需稍微切換到純鹼即可。您介意向我們介紹一下你們在某些數量的價格、開放產能方面的最新情況嗎？

Into next year around the 40% to 45% of ore lower anticipated sales volumes in '25 are either known with certainty as we sit here today are subject to very tight caps or callers. So basically 55% or so will be redetermined as typical in our business towards the November, December time frame, either under annual contracts or short-term duration as we can get with our customers because we continue to believe that the market is balancing and that prices should continue to rise as we move through '25.

進入明年，25 年礦石預期銷量將下降 40% 至 45% 左右，要么是我們今天坐在這裡確定的，要么是受到非常嚴格的上限或調用者的限制。因此，基本上 55% 左右將被重新確定為我們業務中 11 月、12 月時間範圍內的典型情況，無論是根據年度合約還是我們與客戶達成的短期合同，因為我們仍然相信市場正在平衡，並且隨著我們進入'25'，價格應該會繼續上漲。

Fantastic. Thank you so much. Appreciate it.

極好的。太感謝了。欣賞它。

(Operator Instructions) There are no further questions at this time. I would like to hand the floor back over to Grant Sims for any closing comments.

（操作員說明） 目前沒有其他問題。我想將發言權交還給格蘭特·西姆斯（Grant Sims）以徵求結束意見。

Okay, well again, thanks, everyone. We appreciate your interest and listening in and we look forward to continuing to create value for everybody in the capital structure. So thanks very much.

好的，再次感謝大家。我們感謝您的關注和傾聽，我們期待繼續為資本結構中的每個人創造價值。非常感謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。