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Condensed Consolidating Financial Information
6 Months Ended
Jun. 30, 2013
Condensed Consolidating Financial Information [Abstract]  
Condensed Consolidating Financial Information
15. Condensed Consolidating Financial Information
Our $700 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 and accordingly has no ability to service obligations on the 2018 and 2021 Notes. Each subsidiary guarantor and the subsidiary co-issuer are 100% owned, directly or indirectly, by Genesis Energy, L.P. See Note 6 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
June 30, 2013

 
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
$
4

 
$
—

 
$
18,233

 
$
431

 
$
—

 
$
18,668

Other current assets
892,978

 
—

 
444,424

 
44,647

 
(914,717
)
 
467,332

Total current assets
892,982

 
—

 
462,657

 
45,078

 
(914,717
)
 
486,000

Fixed assets, at cost
—

 
—

 
718,382

 
114,769

 
—

 
833,151

Less: Accumulated depreciation
—

 
—

 
(162,270
)
 
(14,842
)
 
—

 
(177,112
)
Net fixed assets
—

 
—

 
556,112

 
99,927

 
—

 
656,039

Goodwill
—

 
—

 
325,046

 
—

 
—

 
325,046

Other assets, net
23,705

 
—

 
244,309

 
155,070

 
(161,497
)
 
261,587

Equity investees
—

 
—

 
604,380

 
—

 
—

 
604,380

Investments in subsidiaries
1,000,004

 
—

 
105,702

 
—

 
(1,105,706
)
 
—

Total assets
$
1,916,691

 
$
—

 
$
2,298,206

 
$
300,075

 
$
(2,181,920
)
 
$
2,333,052

LIABILITIES AND PARTNERS’ CAPITAL
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$
10,308

 
$
—

 
$
1,270,488

 
$
29,996

 
$
(914,489
)
 
$
396,303

Senior secured credit facility
319,100

 
—

 
—

 
—

 
—

 
319,100

Senior unsecured notes
700,835

 
—

 
—

 
—

 
—

 
700,835

Deferred tax liabilities
—

 
—

 
13,275

 
—

 
—

 
13,275

Other liabilities
—

 
—

 
13,453

 
164,955

 
(161,317
)
 
17,091

Total liabilities
1,030,243

 
—

 
1,297,216

 
194,951

 
(1,075,806
)
 
1,446,604

Partners’ capital
886,448

 
—

 
1,000,990

 
105,124

 
(1,106,114
)
 
886,448

Total liabilities and partners’ capital
$
1,916,691

 
$
—

 
$
2,298,206

 
$
300,075

 
$
(2,181,920
)
 
$
2,333,052



Unaudited Condensed Consolidating Balance Sheet
December 31, 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
$
10

 
$
—

 
$
11,214

 
$
58

 
$
—

 
$
11,282

Other current assets
745,589

 
—

 
367,837

 
41,533

 
(762,207
)
 
392,752

Total current assets
745,599

 
—

 
379,051

 
41,591

 
(762,207
)
 
404,034

Fixed assets, at cost
—

 
—

 
617,519

 
105,706

 
—

 
723,225

Less: Accumulated depreciation
—

 
—

 
(144,882
)
 
(13,062
)
 
—

 
(157,944
)
Net fixed assets
—

 
—

 
472,637

 
92,644

 
—

 
565,281

Goodwill
—

 
—

 
325,046

 
—

 
—

 
325,046

Other assets, net
17,737

 
—

 
254,423

 
157,604

 
(163,696
)
 
266,068

Equity investees
—

 
—

 
549,235

 
—

 
—

 
549,235

Investments in subsidiaries
1,006,415

 
—

 
102,707

 
—

 
(1,109,122
)
 
—

Total assets
$
1,769,751

 
$
—

 
$
2,083,099

 
$
291,839

 
$
(2,035,025
)
 
$
2,109,664

LIABILITIES AND PARTNERS’ CAPITAL
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$
2,361

 
$
—

 
$
1,048,937

 
$
23,567

 
$
(762,214
)
 
$
312,651

Senior secured credit facility
500,000

 
—

 
—

 
—

 
—

 
500,000

Senior unsecured notes
350,895

 
—

 
—

 
—

 
—

 
350,895

Deferred tax liabilities
—

 
—

 
13,810

 
—

 
—

 
13,810

Other liabilities
—

 
—

 
13,044

 
166,282

 
(163,513
)
 
15,813

Total liabilities
853,256

 
—

 
1,075,791

 
189,849

 
(925,727
)
 
1,193,169

Partners’ capital
916,495

 
—

 
1,007,308

 
101,990

 
(1,109,298
)
 
916,495

Total liabilities and partners’ capital
$
1,769,751

 
$
—

 
$
2,083,099

 
$
291,839

 
$
(2,035,025
)
 
$
2,109,664




























Unaudited Condensed Consolidating Statement of Operations
Three Months Ended June 30, 2013

 
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
$
—

 
$
—

 
$
1,134,554

 
$
35,124

 
$
(30,034
)
 
$
1,139,644

Refinery services
—

 
—

 
51,682

 
3,796

 
(4,002
)
 
51,476

Pipeline transportation services
—

 
—

 
15,731

 
6,806

 
—

 
22,537

Total revenues
—

 
—

 
1,201,967

 
45,726

 
(34,036
)
 
1,213,657

COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Supply and logistics costs
—

 
—

 
1,109,870

 
33,221

 
(30,034
)
 
1,113,057

Refinery services operating costs
—

 
—

 
32,915

 
3,516

 
(3,610
)
 
32,821

Pipeline transportation operating costs
—

 
—

 
6,668

 
477

 
—

 
7,145

General and administrative
—

 
—

 
11,287

 
27

 
—

 
11,314

Depreciation and amortization
—

 
—

 
14,760

 
910

 
—

 
15,670

Total costs and expenses
—

 
—

 
1,175,500

 
38,151

 
(33,644
)
 
1,180,007

OPERATING INCOME
—

 
—

 
26,467

 
7,575

 
(392
)
 
33,650

Equity in earnings of subsidiaries
39,133

 
—

 
3,533

 
—

 
(42,666
)
 
—

Equity in earnings of equity investees
—

 
—

 
5,623

 
—

 
—

 
5,623

Interest (expense) income, net
(12,231
)
 
—

 
4,030

 
(4,053
)
 
—

 
(12,254
)
Income before income taxes
26,902

 
—

 
39,653

 
3,522

 
(43,058
)
 
27,019

Income tax expense
—

 
—

 
(87
)
 
(30
)
 
—

 
(117
)
NET INCOME
$
26,902

 
$
—

 
$
39,566

 
$
3,492

 
$
(43,058
)
 
$
26,902



Unaudited Condensed Consolidating Statement of Operations
Three Months Ended June 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
$
—

 
$
—

 
$
940,232

 
$
32,159

 
$
(24,501
)
 
$
947,890

Refinery services
—

 
—

 
45,311

 
6,744

 
(3,735
)
 
48,320

Pipeline transportation services
—

 
—

 
10,869

 
6,352

 
—

 
17,221

Total revenues
—

 
—

 
996,412

 
45,255

 
(28,236
)
 
1,013,431

COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Supply and logistics costs
—

 
—

 
920,360

 
28,022

 
(24,499
)
 
923,883

Refinery services operating costs
—

 
—

 
29,175

 
6,087

 
(4,212
)
 
31,050

Pipeline transportation operating costs
—

 
—

 
4,856

 
176

 
—

 
5,032

General and administrative
—

 
—

 
9,937

 
30

 
—

 
9,967

Depreciation and amortization
—

 
—

 
14,932

 
898

 
—

 
15,830

Total costs and expenses
—

 
—

 
979,260

 
35,213

 
(28,711
)
 
985,762

OPERATING INCOME
—

 
—

 
17,152

 
10,042

 
475

 
27,669

Equity in earnings of subsidiaries
28,791

 
—

 
5,809

 
—

 
(34,600
)
 
—

Equity in earnings of equity investees
—

 
—

 
1,047

 
—

 
—

 
1,047

Interest (expense) income, net
(10,207
)
 
—

 
4,141

 
(4,162
)
 
—

 
(10,228
)
Income before income taxes
18,584

 
—

 
28,149

 
5,880

 
(34,125
)
 
18,488

Income tax benefit (expense)
—

 
—

 
216

 
(120
)
 
—

 
96

NET INCOME
$
18,584

 
$
—

 
$
28,365

 
$
5,760

 
$
(34,125
)
 
$
18,584



Unaudited Condensed Consolidating Statement of Operations
Six Months Ended June 30, 2013
 
 
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
$
—

 
$
—

 
$
2,205,043

 
$
74,069

 
$
(62,517
)
 
$
2,216,595

Refinery services
—

 
—

 
99,449

 
9,359

 
(7,848
)
 
100,960

Pipeline transportation services
—

 
—

 
29,857

 
13,459

 
—

 
43,316

Total revenues
—

 
—

 
2,334,349

 
96,887

 
(70,365
)
 
2,360,871

COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Supply and logistics costs
—

 
—

 
2,158,801

 
67,512

 
(62,517
)
 
2,163,796

Refinery services operating costs
—

 
—

 
64,082

 
8,798

 
(7,616
)
 
65,264

Pipeline transportation operating costs
—

 
—

 
13,422

 
807

 
—

 
14,229

General and administrative
—

 
—

 
23,001

 
60

 
—

 
23,061

Depreciation and amortization
—

 
—

 
28,911

 
1,812

 
—

 
30,723

Total costs and expenses
—

 
—

 
2,288,217

 
78,989

 
(70,133
)
 
2,297,073

OPERATING INCOME
—

 
—

 
46,132

 
17,898

 
(232
)
 
63,798

Equity in earnings of subsidiaries
73,385

 
—

 
9,771

 
—

 
(83,156
)
 
—

Equity in earnings of equity investees
—

 
—

 
9,559

 
—

 
—

 
9,559

Interest (expense) income, net
(23,637
)
 
—

 
8,077

 
(8,135
)
 
—

 
(23,695
)
Income before income taxes
49,748

 
—

 
73,539

 
9,763

 
(83,388
)
 
49,662

Income tax benefit (expense)
—

 
—

 
170

 
(84
)
 
—

 
86

NET INCOME
$
49,748

 
$
—

 
$
73,709

 
$
9,679

 
$
(83,388
)
 
$
49,748



Unaudited Condensed Consolidating Statement of Operations
Six Months Ended June 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
$
—

 
$
—

 
$
1,827,913

 
$
64,338

 
$
(51,098
)
 
$
1,841,153

Refinery services
—

 
—

 
93,907

 
9,389

 
(6,931
)
 
96,365

Pipeline transportation services
—

 
—

 
23,785

 
12,845

 
—

 
36,630

Total revenues
—

 
—

 
1,945,605

 
86,572

 
(58,029
)
 
1,974,148

COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Supply and logistics costs
—

 
—

 
1,792,002

 
56,762

 
(51,096
)
 
1,797,668

Refinery services operating costs
—

 
—

 
59,816

 
9,136

 
(7,123
)
 
61,829

Pipeline transportation operating costs
—

 
—

 
9,690

 
394

 
—

 
10,084

General and administrative
—

 
—

 
19,499

 
60

 
—

 
19,559

Depreciation and amortization
—

 
—

 
28,819

 
1,790

 
—

 
30,609

Total costs and expenses
—

 
—

 
1,909,826

 
68,142

 
(58,219
)
 
1,919,749

OPERATING INCOME
—

 
—

 
35,779

 
18,430

 
190

 
54,399

Equity in earnings of subsidiaries
58,959

 
—

 
10,131

 
—

 
(69,090
)
 
—

Equity in earnings of equity investees
—

 
—

 
4,539

 
—

 
—

 
4,539

Interest (expense) income, net
(20,771
)
 
—

 
8,295

 
(8,348
)
 
—

 
(20,824
)
Income before income taxes
38,188

 
—

 
58,744

 
10,082

 
(68,900
)
 
38,114

Income tax benefit (expense)
—

 
—

 
121

 
(47
)
 
—

 
74

NET INCOME
$
38,188

 
$
—

 
$
58,865

 
$
10,035

 
$
(68,900
)
 
$
38,188





Unaudited Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2013
 
 
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
$
(86,739
)
 
$
—

 
$
245,918

 
$
17,342

 
$
(80,735
)
 
$
95,786

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Payments to acquire fixed and intangible assets
—

 
—

 
(98,050
)
 
(9,116
)
 
—

 
(107,166
)
Cash distributions received from equity investees - return of investment
5,585

 
—

 
5,539

 
—

 
(5,585
)
 
5,539

Investments in equity investees
—

 
—

 
(66,207
)
 
—

 
—

 
(66,207
)
Repayments on loan to non-guarantor subsidiary
—

 
—

 
2,199

 
—

 
(2,199
)
 
—

Proceeds from asset sales
—

 
—

 
626

 
—

 
—

 
626

Other, net
—

 
—

 
171

 
—

 
—

 
171

Net cash provided by (used) in investing activities
5,585

 
—

 
(155,722
)
 
(9,116
)
 
(7,784
)
 
(167,037
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Borrowings on senior secured credit facility
668,500

 
—

 
—

 
—

 
—

 
668,500

Repayments on senior secured credit facility
(849,400
)
 
—

 
—

 
—

 
—

 
(849,400
)
Proceeds from issuance of senior unsecured notes, including premium
350,000

 
—

 
—

 
—

 
—

 
350,000

Debt issuance costs
(8,157
)
 
—

 
—

 
—

 
—

 
(8,157
)
Distributions to partners/owners
(79,795
)
 
—

 
(79,795
)
 
(6,545
)
 
86,340

 
(79,795
)
Other, net
—

 
—

 
(3,382
)
 
(1,308
)
 
2,179

 
(2,511
)
Net cash provided by (used in) financing activities
81,148

 
—

 
(83,177
)
 
(7,853
)
 
88,519

 
78,637

Net (decrease) increase in cash and cash equivalents
(6
)
 
—

 
7,019

 
373

 
—

 
7,386

Cash and cash equivalents at beginning of period
10

 
—

 
11,214

 
58

 
—

 
11,282

Cash and cash equivalents at end of period
$
4

 
$
—

 
$
18,233

 
$
431

 
$
—

 
$
18,668


 Unaudited Condensed Consolidating Statement of Cash Flows
Six Months Ended June 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
$
(86,721
)
 
$
—

 
$
231,807

 
$
10,216

 
$
(56,023
)
 
$
99,279

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Payments to acquire fixed and intangible assets
—

 
—

 
(78,937
)
 
(1,441
)
 
—

 
(80,378
)
Cash distributions received from equity investees - return of investment
20,155

 
—

 
7,309

 
—

 
(20,155
)
 
7,309

Investments in equity investees
(169,421
)
 
—

 
(52,226
)
 
—

 
170,216

 
(51,431
)
Acquisitions
—

 
—

 
(205,576
)
 
—

 
—

 
(205,576
)
Repayments on loan to non-guarantor subsidiary
—

 
—

 
1,987

 
—

 
(1,987
)
 
—

Proceeds from asset sales
—

 
—

 
654

 
—

 
—

 
654

Other, net
—

 
—

 
(120
)
 
(795
)
 
—

 
(915
)
Net cash used in investing activities
(149,266
)
 
—

 
(326,909
)
 
(2,236
)
 
148,074

 
(330,337
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Borrowings on senior secured credit facility
700,700

 
—

 
—

 
—

 
—

 
700,700

Repayments on senior secured credit facility
(665,000
)
 
—

 
—

 
—

 
—

 
(665,000
)
Proceeds from issuance of senior unsecured notes, including premium
101,000

 
—

 
—

 
—

 
—

 
101,000

Debt issuance costs
(2,690
)
 
—

 
—

 
—

 
—

 
(2,690
)
Distributions to partners/owners
(67,445
)
 
—

 
(67,445
)
 
(8,750
)
 
76,195

 
(67,445
)
Issuance of common units for cash, net
169,421

 
—

 
169,421

 
795

 
(170,216
)
 
169,421

Other, net
—

 
—

 
(1,403
)
 
(1,270
)
 
1,970

 
(703
)
Net cash provided by (used in) financing activities
235,986

 
—

 
100,573

 
(9,225
)
 
(92,051
)
 
235,283

Net (decrease) increase in cash and cash equivalents
(1
)
 
—

 
5,471

 
(1,245
)
 
—

 
4,225

Cash and cash equivalents at beginning of period
3

 
—

 
9,182

 
1,632

 
—

 
10,817

Cash and cash equivalents at end of period
$
2

 
$
—

 
$
14,653

 
$
387

 
$
—

 
$
15,042