16. Condensed Consolidating Financial Information

Our $350 million aggregate principal amount of senior unsecured notes co-issued by Genesis Energy, L.P. and Genesis Energy Finance Corporation are fully and unconditionally guaranteed jointly and severally by all of Genesis Energy, L.P.’s subsidiaries, except Genesis Free State Pipeline, LLC, Genesis NEJD Pipeline, LLC and certain other minor subsidiaries. Genesis NEJD Pipeline, LLC is 100% owned by Genesis Energy, L.P., the parent company. The remaining non-guarantor subsidiaries are owned by Genesis Crude Oil, L.P., a guarantor subsidiary. Genesis Energy Finance Corporation has no independent assets or operations. Each subsidiary guarantor and the subsidiary co-issuer are 100% owned, directly or indirectly, by Genesis Energy, L.P. See Note 7 for additional information regarding our consolidated debt obligations. The following is condensed consolidating financial information for Genesis Energy, L.P., the guarantor subsidiaries and the non-guarantor subsidiaries.

Unaudited Condensed Consolidating Balance Sheet

September 30, 2012



	Genesis Energy, L.P. (Parent and Co-Issuer)		Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	11	$	—	$	14,753		$	697		$	—		$	15,461
Other current assets	744,217		—		387,772			38,521			(758,704		)	411,806
Total current assets	744,228		—		402,525			39,218			(758,704		)	427,267
Fixed assets, at cost	—		—		583,751			100,912			—			684,663
Less: Accumulated depreciation	—		—		(136,459		)	(12,253		)	—			(148,712		)
Net fixed assets	—		—		447,292			88,659			—			535,951
Goodwill	—		—		325,046			—			—			325,046
Other assets, net	19,152		—		257,694			158,875			(164,755		)	270,966
Equity investees	—		—		547,925			—			—			547,925
Investments in subsidiaries	1,007,650		—		100,005			—			(1,107,655		)	—
Total assets	$	1,771,030	$	—	$	2,080,487		$	286,752		$	(2,031,114	)	$	2,107,155
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities	$	9,173	$	—	$	1,047,542		$	19,987		$	(758,323	)	$	318,379
Senior secured credit facility	483,000		—		—			—			—			483,000
Senior unsecured notes	350,924		—		—			—			—			350,924
Deferred tax liabilities	—		—		11,598			—			—			11,598
Other liabilities	—		—		12,850			167,041			(164,570		)	15,321
Total liabilities	843,097		—		1,071,990			187,028			(922,893		)	1,179,222
Partners’ capital	927,933		—		1,008,497			99,724			(1,108,221		)	927,933
Total liabilities and partners’ capital	$	1,771,030	$	—	$	2,080,487		$	286,752		$	(2,031,114	)	$	2,107,155

Unaudited Condensed Consolidating Balance Sheet

December 31, 2011



	Genesis Energy, L.P. (Parent and Co-Issuer)		Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3	$	—	$	9,182		$	1,632		$	—		$	10,817
Other current assets	597,966		—		341,131			31,897			(605,707		)	365,287
Total current assets	597,969		—		350,313			33,529			(605,707		)	376,104
Fixed assets, at cost	—		—		444,262			96,876			—			541,138
Less: Accumulated depreciation	—		—		(114,655		)	(9,558		)	—			(124,213		)
Net fixed assets	—		—		329,607			87,318			—			416,925
Goodwill	—		—		325,046			—			—			325,046
Other assets, net	14,773		—		276,450			162,373			(167,774		)	285,822
Equity investees	—		—		326,947			—			—			326,947
Investments in subsidiaries	841,725		—		96,303			—			(938,028		)	—
Total assets	$	1,454,467	$	—	$	1,704,666		$	283,220		$	(1,711,509	)	$	1,730,844
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities	$	2,529	$	—	$	835,013		$	17,562		$	(605,676	)	$	249,428
Senior secured credit facility	409,300		—		—			—			—			409,300
Senior unsecured notes	250,000		—		—			—			—			250,000
Deferred tax liabilities	—		—		12,549			—			—			12,549
Other liabilities	—		—		14,673			169,842			(167,586		)	16,929
Total liabilities	661,829		—		862,235			187,404			(773,262		)	938,206
Partners’ capital	792,638		—		842,431			95,816			(938,247		)	792,638
Total liabilities and partners’ capital	$	1,454,467	$	—	$	1,704,666		$	283,220		$	(1,711,509	)	$	1,730,844

Unaudited Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2012



	Genesis Energy, L.P. (Parent and Co-Issuer)			Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
REVENUES:
Supply and logistics	$	—		$	—	$	869,726	$	31,113		$	(25,646	)	$	875,193
Refinery services	—			—		48,809		4,367			(5,199		)	47,977
Pipeline transportation services	—			—		12,596		6,568			—			19,164
Total revenues	—			—		931,131		42,048			(30,845		)	942,334
COSTS AND EXPENSES:
Supply and logistics costs	—			—		852,009		26,488			(25,648		)	852,849
Refinery services operating costs	—			—		29,339		4,565			(4,661		)	29,243
Pipeline transportation operating costs	—			—		5,661		250			—			5,911
General and administrative	—			—		10,343		32			—			10,375
Depreciation and amortization	—			—		13,940		898			—			14,838
Total costs and expenses	—			—		911,292		32,233			(30,309		)	913,216
OPERATING INCOME	—			—		19,839		9,815			(536		)	29,118
Equity in earnings of subsidiaries	41,052			—		5,738		—			(46,790		)	—
Equity in earnings of equity investees	—			—		3,432		—			—			3,432
Interest (expense) income, net	(9,858		)	—		4,119		(4,134		)	—			(9,873		)
Income before income taxes	31,194			—		33,128		5,681			(47,326		)	22,677
Income tax benefit	—			—		8,509		8			—			8,517
NET INCOME	$	31,194		$	—	$	41,637	$	5,689		$	(47,326	)	$	31,194

Unaudited Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2011



	Genesis Energy, L.P. (Parent and Co-Issuer)			Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
REVENUES:
Supply and logistics	$	—		$	—	$	765,714		$	—		$	—		$	765,714
Refinery services	—			—		48,700			3,805			(4,113		)	48,392
Pipeline transportation services	—			—		9,388			6,706			—			16,094
Total revenues	—			—		823,802			10,511			(4,113		)	830,200
COSTS AND EXPENSES:
Supply and logistics costs	—			—		743,833			—			—			743,833
Refinery services operating costs	—			—		30,448			3,612			(3,924		)	30,136
Pipeline transportation operating costs	—			—		3,818			170			—			3,988
General and administrative	—			—		8,905			—			—			8,905
Depreciation and amortization	—			—		14,057			649			—			14,706
Total costs and expenses	—			—		801,061			4,431			(3,924		)	801,568
OPERATING INCOME	—			—		22,741			6,080			(189		)	28,632
Equity in losses of subsidiaries	28,032			—		1,945			—			(29,977		)	—
Equity in earnings of equity investees	—			—		(412		)	—			—			(412		)
Interest (expense) income, net	(8,944		)	—		4,226			(4,242		)	—			(8,960		)
Income before income taxes	19,088			—		28,500			1,838			(30,166		)	19,260
Income tax (expense) benefit	—			—		(233		)	61			—			(172		)
NET INCOME	$	19,088		$	—	$	28,267		$	1,899		$	(30,166	)	$	19,088

Unaudited Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2012



	Genesis Energy, L.P. (Parent and Co-Issuer)			Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
REVENUES:
Supply and logistics	$	—		$	—	$	2,579,102	$	95,451		$	(76,744	)	$	2,597,809
Refinery services	—			—		142,716		13,756			(12,130		)	144,342
Pipeline transportation services	—			—		36,381		19,413			—			55,794
Total revenues	—			—		2,758,199		128,620			(88,874		)	2,797,945
COSTS AND EXPENSES:
Supply and logistics costs	—			—		2,525,474		83,250			(76,744		)	2,531,980
Refinery services operating costs	—			—		89,155		13,701			(11,784		)	91,072
Pipeline transportation operating costs	—			—		15,351		644			—			15,995
General and administrative	—			—		29,842		92			—			29,934
Depreciation and amortization	—			—		42,759		2,688			—			45,447
Total costs and expenses	—			—		2,702,581		100,375			(88,528		)	2,714,428
OPERATING INCOME	—			—		55,618		28,245			(346		)	83,517
Equity in earnings of subsidiaries	100,011			—		15,869		—			(115,880		)	—
Equity in earnings of equity investees	—			—		7,971		—			—			7,971
Interest (expense) income, net	(30,629		)	—		12,414		(12,482		)	—			(30,697		)
Income before income taxes	69,382			—		91,872		15,763			(116,226		)	60,791
Income tax benefit (expense)	—			—		8,630		(39		)	—			8,591
NET INCOME	$	69,382		$	—	$	100,502	$	15,724		$	(116,226	)	$	69,382

Unaudited Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2011



	Genesis Energy, L.P. (Parent and Co-Issuer)			Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
REVENUES:
Supply and logistics	$	—		$	—	$	2,091,854		$	—		$	—		$	2,091,854
Refinery services	—			—		142,992			12,953			(10,644		)	145,301
Pipeline transportation services	—			—		26,292			19,341			—			45,633
Total revenues	—			—		2,261,138			32,294			(10,644		)	2,282,788
COSTS AND EXPENSES:
Supply and logistics costs	—			—		2,044,554			—			—			2,044,554
Refinery services operating costs	—			—		88,641			11,836			(10,491		)	89,986
Pipeline transportation operating costs	—			—		11,937			477			—			12,414
General and administrative	—			—		25,339			—			—			25,339
Depreciation and amortization	—			—		41,153			1,947			—			43,100
Total costs and expenses	—			—		2,211,624			14,260			(10,491		)	2,215,393
OPERATING INCOME	—			—		49,514			18,034			(153		)	67,395
Equity in earnings of subsidiaries	70,092			—		5,238			—			(75,330		)	—
Equity in earnings of equity investees	—			—		3,377			—			—			3,377
Interest (expense) income, net	(26,616		)	—		12,726			(12,780		)	—			(26,670		)
Income before income taxes	43,476			—		70,855			5,254			(75,483		)	44,102
Income tax expense	—			—		(467		)	(159		)	—			(626		)
NET INCOME	$	43,476		$	—	$	70,388		$	5,095		$	(75,483	)	$	43,476

Unaudited Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2012



	Genesis Energy, L.P. (Parent and Co-Issuer)			Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
Net cash (used in) provided by operating activities	$	(91,453	)	$	—	$	304,617		$	17,700		$	(87,926	)	$	142,938
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(112,665		)	(4,037		)	—			(116,702		)
Cash distributions received from equity investees - return of investment	27,878			—		10,918			—			(27,878		)	10,918
Investments in equity investees	(169,421		)	—		(57,072		)	—			169,421			(57,072		)
Acquisitions	—			—		(205,576		)	—			—			(205,576		)
Repayments on loan to non-guarantor subsidiary	—			—		3,019			—			(3,019		)	—
Proceeds from asset sales	—			—		667			—			—			667
Other, net	—			—		(1,012		)	—			—			(1,012		)
Net cash used in investing activities	(141,543		)	—		(361,721		)	(4,037		)	138,524			(368,777		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	1,407,000			—		—			—			—			1,407,000
Repayments on senior secured credit facility	(1,333,300		)	—		—			—			—			(1,333,300		)
Proceeds from issuance of senior unsecured notes, including premium	101,000			—		—			—			—			101,000
Debt issuance costs	(7,109		)	—		—			—			—			(7,109		)
Issuance of common units for cash, net	169,421			—		169,421			—			(169,421		)	169,421
Distributions to partners/owners	(104,008		)	—		(104,008		)	(11,819		)	115,827			(104,008		)
Other, net	—			—		(2,738		)	(2,779		)	2,996			(2,521		)
Net cash provided by (used in) financing activities	233,004			—		62,675			(14,598		)	(50,598		)	230,483
Net increase (decrease) in cash and cash equivalents	8			—		5,571			(935		)	—			4,644
Cash and cash equivalents at beginning of period	3			—		9,182			1,632			—			10,817
Cash and cash equivalents at end of period	$	11		$	—	$	14,753		$	697		$	—		$	15,461

Unaudited Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2011



	Genesis Energy, L.P. (Parent and Co-Issuer)			Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
Net cash (used in) provided by operating activities	$	(4,881	)	$	—	$	41,160		$	2,844		$	23		$	39,146
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(15,060		)	(97		)	—			(15,157		)
Cash distributions received from equity investees - return of investment	82,067			—		8,577			—			(82,067		)	8,577
Investments in equity investees	(184,969		)	—		(194		)	—			184,969			(194		)
Acquisitions	—			—		(143,489		)	—			—			(143,489		)
Repayments on loan to non-guarantor subsidiary	—			—		2,729			—			(2,729		)	—
Proceeds from asset sales	—			—		4,444			—			—			4,444
Other, net	—			—		129			—			—			129
Net cash used in investing activities	(102,902		)	—		(142,864		)	(97		)	100,173			(145,690		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	571,700			—		—			—			—			571,700
Repayments on senior secured credit facility	(563,800		)	—		—			—			—			(563,800		)
Debt issuance costs	(3,018		)	—		—			—			—			(3,018		)
Distributions to partners/owners	(82,067		)	—		(82,067		)	—			82,067			(82,067		)
Issuance of common units for cash, net	184,969			—		184,969			—			(184,969		)	184,969
Other, net	—			—		(2,626		)	(2,706		)	2,706			(2,626		)
Net cash provided by (used in) financing activities	107,784			—		100,276			(2,706		)	(100,196		)	105,158
Net increase (decrease) in cash and cash equivalents	1			—		(1,428		)	41			—			(1,386		)
Cash and cash equivalents at beginning of period	1			—		5,082			679			—			5,762
Cash and cash equivalents at end of period	$	2		$	—	$	3,654		$	720		$	—		$	4,376