Genesis Energy (GEL) faces headwinds from offshore customer production challenges, prompting RBC Capital Markets to lower its adjusted earnings before interest, taxes, depreciation and amortization estimates for the company.

Genesis Energy is scheduled to report its Q3 results on Nov. 5.

RBC said in a Monday research note that it now expects Q3 adjusted EBITDA of $127 million, down from $141 million previously. Its 2026 and 2027 adjusted EBITDA estimates are now $578 million and $607 million, respectively, compared with $580 million and $630 million previously.

Genesis Energy expects 2026 adjusted EBITDA toward the low end of its $575 million to $612 million guidance range due to offshore operational challenges, according to the note.

The investment firm expects Genesis Energy's earnings call to focus on offshore results in the second half of 2026 and into 2027, marine market conditions, capital allocation plans, potential Q4 storm impacts from Hurricane Isaias and opportunities to capture additional margins from market dislocations.

RBC cut its price target to $17 from $18 and maintained its outperform rating.

The company's shares were up 1.1 in Tuesday trading.

Price: 14.53, Change: +0.16, Percent Change: +1.11