Genesis Energy LP (NYSE: GEL) stock soared 5.76% in pre-market trading on Thursday, following the company's fourth-quarter 2024 earnings release that revealed weaker results but an optimistic outlook for growth in 2025.

For the fourth quarter of 2024, GEL reported lower revenue, net income, and Segment Margin compared to the same period in 2023. This was primarily due to lower volumes in its offshore pipeline transportation segment, lower pricing in the soda ash business, and higher costs overall.

However, GEL expects a significant improvement in 2025, driven by the following factors:

• The Shenandoah and Salamanca offshore pipeline projects are scheduled to come online in the second quarter of 2025, adding nearly 200,000 barrels per day of incremental production handling capacity to GEL's pipeline system.
• The company has completed over 90% of its growth capital projects for offshore pipeline expansion and expects to start harvesting the increased cash flows from these investments.
• GEL's marine transportation segment is anticipated to deliver sequential growth in 2025, aided by steady market fundamentals and fewer dry-docking days compared to 2024.
• The soda ash market is expected to rebalance in the second half of 2025, as global supply and demand dynamics improve, supporting higher pricing for GEL's soda ash business.

GEL's management believes that 2025 will mark an inflection point for the company, with increasing cash flows and the ability to simplify its capital structure, return capital to unitholders, and create long-term value.

Investors appear to be optimistic about GEL's growth prospects, as evidenced by the stock's significant pre-market gain.