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

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Houston-based Genesis on Thursday reported net incomer for the first quarter ended March 31of $1.6 or 11 cents per unit. That comparef to net income in the 2006 periorof $2.6 million, or 18 cents per Analysts polled by Thomson Financial expected Genesis GEL) to have generate income of 20 centes per share for the quarter. "Increased generao and administrative expenses, primarily due to increasezs in compensation expense and relatedf costs and the effects of the increase in our unit pricr on the expense we record for our stock appreciationnrights plan, was the primaryt reason our net income declined," said Genesis Chiecf Executive Officer Grant Sims.
Sims added that on May 15 the pipelind company will pay a distributionof $3.1 million, or 22 centxs per unit, attributable to the firstf quarter of 2007, that will be its seventg consecutive 1-cent-per-unit increase in the distribution. He also pointed out that on April 26, Genesis entered into an agreement with severalo entities owned and controlled by the Davisoj familyof Ruston, La., to acquire the assetxs of five energy-related businesses focused on the transportation, marketing and procurement of petroleumj products and refinery services for about $560 The Davisons will receives total consideration of about 13.
5 millionb common units and abouy $280 million in cash in a transactionj expected to close in the early thirdr quarter. "Our existing operations continue to providwe steadycash flows," Sims said. "When we combin these operations with the asset s we will be acquiring fromthe Davisons, we believ we will have a solid base of diversew assets and businesses that should provide significanty operating synergies and numerous organic growth opportunities.
"Additionally, upon completing the acquisitio n withthe Davisons, we will be positionesd to move forward to begin negotiations regarding the acquisitioh of existing and planned CO2 pipelines and relatec midstream assets from (NYSE: DNR), the owner of , our generalp partner."