Usman Shah
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Genesis Energy Buys Hornbeck OffShore Transportaion


Genesis Energy (NYSE: GEL) announced they have inked an agreement with Hornbeck Offshore Transportation (NYSE: HOS) to buy the 18 vessels they had in their failing business. The deal cost Genesis about $230 million, but the vessels would be used to ship crude oil and refined products through the Gulf Coast and Eastern Seaboard, as well as on the Great Lakes and the Caribbean Sea. The acquisition needs an approval from regulatory bodies and is expected to close by Q3. Genesis is currently trading for $51.93, Hornbeck is trading for $56.62 a share. This deal would help Hornbeck's sinking ship get a good captain, Genesis would receive more vessels to transport the crude oil. The more oil shipped the more profit would be made. Genesis Energy looks like it has a bright future ahead with oil prices on a rise.