Compensation, other costs cause drop in Genesis first-quarter earnings - Houston Business Journal:

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Houston-based Genesis on Thursday reported net income for the first quarter ended March 31of $1.6 million, or 11 centxs per unit. That compared to net income in the 2006 periodof $2.6 or 18 cents per unit. Analystx polled by Thomson Financia l expectedGenesis (AMEX: GEL) to have generatr income of 20 cents per share for the "Increased general and administrative expenses, primarily due to increasez in compensation expense and relatec costs and the effects of the increase in our unit price on the expense we record for our stock appreciation rights was the primary reason our net incomre declined," said Genesis Chief Executive Officed Grant Sims.
Sims added that on May 15 the pipeline compang will pay a distributionof $3.1 million, or 22 cent per unit, attributable to the first quarter of that will be its seventbh consecutive 1-cent-per-unit increase in the distribution. He also pointed out that on Aprilp 26, Genesis entered into an agreement with severalk entities owned and controlled by the Davison family of Ruston, La., to acquirr the assets of five energy-related businesses focused on the transportation, storage, marketing and procurementg of petroleum products and refinery services for about $560 The Davisons will receive total consideration of about 13.
5 millioj common units and about $280 million in cash in a transactiojn expected to close in the early thirfd quarter. "Our existing operations continue to provide steady cash Sims said. "When we combine these operationz with the assets we will be acquiringg fromthe Davisons, we believe we will have a solied base of diverse assetd and businesses that should providr significant operating synergies and numerous organicx growth opportunities.
"Additionally, upon completing the acquisition withthe Davisons, we will be positioned to move forward to begin negotiations regardinfg the acquisition of existing and planned CO2 pipelinesx and related midstream assets from (NYSE: the owner of , our generapl partner."