GEL
Genesis Energy, L.P.
$14.08
Oil & Gas E&P
85%
FCF at Price Deck × Multiple
Strong
·
Conviction
Overvalued
Trading 124.4% above fair value
You pay
$14.08
Bear
$0.00
Fair
$6.28
Bull
$26.64
Bear
$0.00
-100.0%
FCF $242M × 8x
Fair
$6.28
-55.4%
FCF $346M × 11x
Bull
$26.64
+89.2%
FCF $450M × 14x
Adjust Assumptions
75.0$/bbl
11.0x
Key Value Driver
Oil price assumption ($75/bbl base case)
Implied Market Multiple
13.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$18.00
Divergence from AlphaVal
65%
Summary
At $75/bbl oil with a 11x EV/FCF multiple, intrinsic value is $6.28 per share. Range: $0.00 (bear) to $26.64 (bull).
Warnings
Debt per share ($24.83) is significant relative to the stock price. Even small changes in the debt figure meaningfully shift what each share is worth.
If oil drops to $60/barrel, the stock could fall -100%. Check whether the company can survive at low prices and still pay its dividend.
Where you think oil prices will settle long-term drives over 80% of this valuation. The biggest risk isn't the company itself — it's getting the commodity price wrong.
Wall Street's average price target is $18.00 (from 16 analysts). Our estimate is 65% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — commodity volumes do not compound
- Geopolitical premiums are real but historically temporary
- Reserve replacement ratio below 100% for 3 years is existential