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Condensed Consolidating Financial Information
9 Months Ended
Sep. 30, 2012
Condensed Consolidating Financial Information [Abstract]  
Condensed Consolidating Financial Information
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