Price/Book of Genesis Energy, L.P.
The price to book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value. It is also sometimes known as a market to book ratio or price to equity ratio. The calculation of a price to book ratio can be performed in two ways. It can be calculated as the company's market capitalization divided by the company's total book value from its balance sheet. It can also be calculated using per-share values and dividing a company's current share price by the book value per share (i.e. its book value divided by the number of outstanding shares).
The P/B ratio varies between industries. The industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than, for example, consulting firms. P/B ratios are commonly used to compare banks, because most assets and liabilities of banks are constantly valued at market values. A higher P/B ratio implies that investors expect management to create more value from a given set of assets, all else equal (and/or that the market value of the firm's assets is significantly higher than their accounting value).
P/B ratios do not, however, directly provide any information on the ability of the firm to generate profits or cash for shareholders. This ratio also gives some idea of whether an investor is paying too much for what would be left if the company went bankrupt immediately. For companies in distress, the book value is usually calculated without the intangible assets that would have no resale value. In such cases, P/B should also be calculated on a "diluted" basis, because stock options may well vest on sale of the company or change of control or firing of management.
Price/Book of companies in the Energy sector on NYSE compared to Genesis Energy, L.P.
About Genesis Energy, L.P.
Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry. It operates through four segments: Offshore Pipeline Transportation, Refinery Services, Marine Transportation, and Supply and Logistics. The Offshore Pipeline Transportation segment engages in the pipeline transportation and processing of crude oil and natural gas. This segment owns interests in approximately 1,437 miles of crude oil pipelines located offshore in the Gulf of Mexico. The Refinery Services segment processes high sulfur gas streams to remove sulfur for refineries. This segment provides services to 10 refining operations; and sells the by-product sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals, such as copper and molybdenum, as well as in the production of pulp and paper. The Marine Transportation segment offers waterborne transportation of petroleum products and crude oil in North America. This segment owns a fleet of 83 barges with a combined transportation capacity of 2.9 million barrels; and 43 push/tow boats. The Supply and Logistics segment provides services to Gulf Coast crude oil refineries and producers through purchasing, transporting, storing, blending, and marketing crude oil and refined products. It operates a suite of approximately 200 trucks, 400 trailers, 523 railcars, and terminals and tankage with 4.6 million barrels of storage capacity in various locations along the Gulf Coast. This segment also transports crude oil and carbon dioxide (CO2). It owns 5 onshore crude oil pipeline systems with approximately 580 miles of pipe located primarily in Alabama, Florida, Louisiana, Mississippi, Texas, and Wyoming; and 2 CO2 pipelines with approximately 270 miles of pipe. In addition, the company produces natural soda ash. Genesis Energy, LLC serves as a general partner of the company. Genesis Energy, L.P. was founded in 1996 and is headquartered in Houston, Texas.
- Genesis Energy, L.P., 919 Milam, Houston 77002, United States