Why Genesis Energy (GEL) Is Up the Most So Far in 2025
We recently published a list of Why These 15 Energy Stocks Are up the Most So Far in 2025 . In this article, we are going to take a look at where Genesis Energy, L.P. (NYSE:GEL) stands against other energy stocks that are up the most so far in 2025.
The energy sector has been volatile, and macro trends have led to fears of recession. The S&P 500 energy sector gained almost 9% from January till late March, but it has been dragged down by the broader market correction.
Brent futures have hit lows and sent many energy stocks into a tailspin. Yet, there are still some energy stocks that have defied the odds and have delivered solid gains. Midstream companies have been exceptionally resilient, and renewables have also been a bright spot in the energy sector.
Even during bear markets there are pockets of the market that perform exceptionally well. For instance, tech stocks have been in a bear market, but I recently identified 15 Tech Stocks that are Up the Most in 2025 in another article.
Methodology
For this article, I screened the best-performing energy stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ( see more details here ).
A towering deepwater pipeline pump emerging from a body of water at sunset, symbolizing the company's dedication to offshore logistics.
Genesis Energy, L.P. (NYSE: GEL )
Number of Hedge Fund Holders In Q4 2024: 5
Genesis Energy, L.P. (NYSE:GEL) is a midstream energy master limited partnership that provides offshore pipeline transportation, marine transportation, sulfur services, and onshore facilities and transportation, primarily along the Gulf Coast and the Gulf of America/Mexico.
The most significant event driving the stock up in 2025 was the sale of its Alkali Business, which closed on February 28, 2025, netting Genesis (NYSE:GEL) approximately $1.01 billion in cash. The company used these proceeds to pay off its senior secured revolving credit facility, call its remaining 8% senior unsecured notes due 2027, and repurchase $250 million of its Class A convertible preferred units.
These actions are expected to save over $120 million in annual cash costs, or about $1.00 per common unit, and significantly simplify the balance sheet. This material event led to a notable stock price move of more than 5% in early March.
Additionally, Genesis (NYSE:GEL) is poised to benefit from two major projects in 2025: the expansion of its soda ash facility and the SYNC Pipeline and CHOPs expansion in the Gulf of Mexico. These projects are expected to drive future growth, especially if the soda ash market rebounds.
The consensus price target of $16.5 implies 16.5% upside.
GEL stock is up 42.29% year-to-date.
Overall, GEL ranks 3rd on our list of energy stocks that are up the most so far in 2025. While we acknowledge the potential of GEL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GEL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires .
Disclosure: None. This article is originally published at Insider Monkey .