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Condensed Consolidating Financial Information
3 Months Ended
Mar. 31, 2016
Condensed Consolidating Financial Information [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
Our $1.8 billion 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 current and future 100% owned domestic 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. See Note 8 for additional information regarding our consolidated debt obligations.
During 2015, the Company determined the need to revise its disclosures and presentation with respect to the Condensed Consolidating Financial Information included in this footnote. These revisions relate solely to transactions between Genesis Energy, L.P. and its subsidiaries and only impact the information that is presented in the Condensed Consolidating Financial Information presented herein and does not affect the Consolidated Financial Statements in any way. The Company determined that adjustments to the presentation relating to advances to and from affiliates was necessary and were made. This resulted in the reclassification of such advances from current assets and liabilities to long term assets and liabilities. The condensed consolidated statement of cash flows for the three months ended March 31, 2015 has been adjusted to reflect these changes. There is also a schedule below that reflects all these adjustments and reconciles from what has been disclosed in previous filings to what we represent in the financial statements below. In addition to this restatement, the Company took action related to certain non-guarantor subsidiaries that resulted in these subsidiaries, that were previously categorized as non-guarantor subsidiaries, becoming wholly owned guarantor subsidiaries. As a result, the condensed consolidating statement of operations and the condensed consolidating statements of cash flows for the three months ended March 31, 2016 have been retrospectively adjusted to reflect this change to our guarantor subsidiaries as though the subsidiaries had been guarantors in all periods presented.
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
March 31, 2016

 
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
$
6

 
$
—

 
$
9,067

 
$
3,238

 
$
—

 
$
12,311

Other current assets
25

 
—

 
304,833

 
9,468

 
(266
)
 
314,060

Total current assets
31

 
—

 
313,900

 
12,706

 
(266
)
 
326,371

Fixed assets, at cost
—

 
—

 
4,399,064

 
77,585

 
—

 
4,476,649

Less: Accumulated depreciation
—

 
—

 
(394,083
)
 
(22,342
)
 
—

 
(416,425
)
Net fixed assets
—

 
—

 
4,004,981

 
55,243

 
—

 
4,060,224

Goodwill
—

 
—

 
325,046

 
—

 
—

 
325,046

Other assets, net
12,221

 
—

 
397,746

 
138,739

 
(129,673
)
 
419,033

Advances to affiliates
2,745,965

 
—

 
—

 
53,764

 
(2,799,729
)
 
—

Equity investees
—

 
—

 
438,700

 
—

 
—

 
438,700

Investments in subsidiaries
2,350,451

 
—

 
90,700

 
—

 
(2,441,151
)
 
—

Total assets
$
5,108,668

 
$
—

 
$
5,571,073

 
$
260,452

 
$
(5,370,819
)
 
$
5,569,374

LIABILITIES AND PARTNERS’ CAPITAL
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$
28,719

 
$
—

 
$
229,053

 
$
—

 
$
(398
)
 
$
257,374

Senior secured credit facility
1,280,000

 
—

 
—

 
—

 
—

 
1,280,000

Senior unsecured notes
1,808,575

 
—

 
—

 
—

 
—

 
1,808,575

Deferred tax liabilities
—

 
—

 
23,286

 
—

 
—

 
23,286

Advances from affiliates
—

 
—

 
2,799,729

 
—

 
(2,799,729
)
 
—

Other liabilities
—

 
—

 
174,620

 
171,189

 
(129,511
)
 
216,298

Total liabilities
3,117,294

 
—

 
3,226,688

 
171,189

 
(2,929,638
)
 
3,585,533

Partners’ capital, common units
1,991,374

 
—

 
2,344,385

 
97,739

 
(2,441,181
)
 
1,992,317

Noncontrolling interests
—

 
—

 
—

 
(8,476
)
 
—

 
(8,476
)
Total liabilities and partners’ capital
$
5,108,668

 
$
—

 
$
5,571,073

 
$
260,452

 
$
(5,370,819
)
 
$
5,569,374


Unaudited Condensed Consolidating Balance Sheet
December 31, 2015
 
 
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
$
6

 
$
—

 
$
8,288

 
$
2,601

 
$
—

 
$
10,895

Other current assets
50

 
—

 
285,313

 
10,422

 
(364
)
 
295,421

Total current assets
56

 
—

 
293,601

 
13,023

 
(364
)
 
306,316

Fixed assets, at cost
—

 
—

 
4,232,641

 
77,585

 
—

 
4,310,226

Less: Accumulated depreciation
—

 
—

 
(356,530
)
 
(21,717
)
 
—

 
(378,247
)
Net fixed assets
—

 
—

 
3,876,111

 
55,868

 
—

 
3,931,979

Goodwill
—

 
—

 
325,046

 
—

 
—

 
325,046

Other assets, net
13,140

 
—

 
394,294

 
140,409

 
(125,977
)
 
421,866

Advances to affiliates
2,619,493

 
—

 
—

 
47,034

 
(2,666,527
)
 
—

Equity investees
—

 
—

 
474,392

 
—

 
—

 
474,392

Investments in subsidiaries
2,353,804

 
—

 
90,741

 
—

 
(2,444,545
)
 
—

Total assets
$
4,986,493

 
$
—

 
$
5,454,185

 
$
256,334

 
$
(5,237,413
)
 
$
5,459,599

LIABILITIES AND PARTNERS’ CAPITAL
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$
35,338

 
$
—

 
$
267,294

 
$
—

 
$
(496
)
 
$
302,136

Senior secured credit facility
1,115,000

 
—

 
—

 
—

 
—

 
1,115,000

Senior unsecured notes
1,807,054

 
—

 
—

 
—

 
—

 
1,807,054

Deferred tax liabilities
—

 
—

 
22,586

 
—

 
—

 
22,586

Advances from affiliates
—

 
—

 
2,666,527

 
—

 
(2,666,527
)
 
—

Other liabilities
—

 
—

 
150,877

 
167,006

 
(125,811
)
 
192,072

Total liabilities
2,957,392

 
—

 
3,107,284

 
167,006

 
(2,792,834
)
 
3,438,848

Partners’ capital, common units
2,029,101

 
—

 
2,346,901

 
97,678

 
(2,444,579
)
 
2,029,101

Noncontrolling interests
—

 
—

 
—

 
(8,350
)
 
—

 
(8,350
)
Total liabilities and partners’ capital
$
4,986,493

 
$
—

 
$
5,454,185

 
$
256,334

 
$
(5,237,413
)
 
$
5,459,599

























Unaudited Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2016
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
Offshore pipeline transportation services
$
—

 
$
—

 
$
76,126

 
$
—

 
$
—

 
$
76,126

Onshore pipeline transportation services
—

 
—

 
12,606

 
5,545

 
—

 
18,151

Refinery services
—

 
—

 
42,294

 
803

 
(561
)
 
42,536

Marine transportation
—

 
—

 
52,036

 
—

 
—

 
52,036

Supply and logistics
—

 
—

 
189,565

 
—

 
—

 
189,565

Total revenues
—

 
—

 
372,627

 
6,348

 
(561
)
 
378,414

COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Supply and logistics costs
—

 
—

 
181,033

 
—

 
—

 
181,033

Marine transportation costs
—

 
—

 
33,022

 
—

 
—

 
33,022

Refinery services operating costs
—

 
—

 
20,446

 
1,100

 
(561
)
 
20,985

Offshore pipeline transportation operating costs
—

 
—

 
17,305

 
629

 
—

 
17,934

Onshore pipeline transportation operating costs
—

 
—

 
6,440

 
296

 
—

 
6,736

General and administrative
—

 
—

 
12,221

 
—

 
—

 
12,221

Depreciation and amortization
—

 
—

 
46,010

 
625

 
—

 
46,635

Total costs and expenses
—

 
—

 
316,477

 
2,650

 
(561
)
 
318,566

OPERATING INCOME
—

 
—

 
56,150

 
3,698

 
—

 
59,848

Equity in earnings of subsidiaries
68,658

 
—

 
78

 
—

 
(68,736
)
 
—

Equity in earnings of equity investees
—

 
—

 
10,717

 
—

 
—

 
10,717

Interest (expense) income, net
(34,325
)
 
—

 
3,634

 
(3,696
)
 
—

 
(34,387
)
Income before income taxes
34,333

 
—

 
70,579

 
2

 
(68,736
)
 
36,178

Income tax expense
—

 
—

 
(910
)
 
(91
)
 
—

 
(1,001
)
NET INCOME
34,333

 
—

 
69,669

 
(89
)
 
(68,736
)
 
35,177

Net loss attributable to noncontrolling interest
—

 
—

 
—

 
126

 
—

 
126

NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.
$
34,333

 
$
—

 
$
69,669

 
$
37

 
$
(68,736
)
 
$
35,303


Unaudited Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2015
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
Offshore pipeline transportation services
$
—

 
$
—

 
$
790

 
$
—

 
$
—

 
$
790

Onshore pipeline transportation services
—

 
—

 
12,820

 
6,248

 
—

 
19,068

Refinery services
—

 
—

 
45,319

 
2,112

 
(1,307
)
 
46,124

Marine transportation
—

 
—

 
57,371

 
—

 
—

 
57,371

Supply and logistics
—

 
—

 
403,504

 
—

 
—

 
403,504

Total revenues
—

 
—

 
519,804

 
8,360

 
(1,307
)
 
526,857

COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Supply and logistics costs
—

 
—

 
396,157

 
—

 
—

 
396,157

Marine transportation costs
—

 
—

 
31,594

 
—

 
—

 
31,594

Refinery services operating costs
—

 
—

 
26,219

 
2,119

 
(1,311
)
 
27,027

Offshore pipeline transportation operating costs
—

 
—

 
243

 
—

 
—

 
243

Onshore pipeline transportation operating costs
—

 
—

 
6,507

 
164

 
—

 
6,671

General and administrative
—

 
—

 
13,221

 
—

 
—

 
13,221

Depreciation and amortization
—

 
—

 
26,480

 
645

 
—

 
27,125

Total costs and expenses
—

 
—

 
500,421

 
2,928

 
(1,311
)
 
502,038

OPERATING INCOME
—

 
—

 
19,383

 
5,432

 
4

 
24,819

Equity in earnings of subsidiaries
39,407

 
—

 
1,640

 
—

 
(41,047
)
 
—

Equity in earnings of equity investees
—

 
—

 
15,519

 
—

 
—

 
15,519

Interest (expense) income, net
(19,192
)
 
—

 
3,814

 
(3,837
)
 
—

 
(19,215
)
Income before income taxes
20,215

 
—

 
40,356

 
1,595

 
(41,043
)
 
21,123

Income tax benefit (expense)
—

 
—

 
(911
)
 
3

 
—

 
(908
)
NET INCOME
$
20,215

 
$
—

 
$
39,445

 
$
1,598

 
$
(41,043
)
 
$
20,215




Unaudited Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2016
 
 
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
$
33,558

 
$
—

 
$
70,795

 
$
3,661

 
$
(66,908
)
 
$
41,106

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

 
—

 
(118,252
)
 
—

 
—

 
(118,252
)
Cash distributions received from equity investees - return of investment
—

 
—

 
5,788

 
—

 
—

 
5,788

Investments in equity investees
—

 
—

 
(1,135
)
 
—

 
—

 
(1,135
)
Acquisitions
—

 
—

 
(25,394
)
 
—

 
—

 
(25,394
)
Intercompany transfers
(126,471
)
 
—

 
—

 
—

 
126,471

 
—

Repayments on loan to non-guarantor subsidiary
—

 
—

 
1,471

 
—

 
(1,471
)
 
—

Contributions in aid of construction costs
—

 
—

 
4,088

 
—

 
—

 
4,088

Proceeds from asset sales
—

 
—

 
224

 
—

 
—

 
224

Other, net
—

 
—

 
130

 
—

 
—

 
130

Net cash provided by (used) in investing activities
(126,471
)
 
—

 
(133,080
)
 
—

 
125,000

 
(134,551
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Borrowings on senior secured credit facility
319,400

 
—

 
—

 
—

 
—

 
319,400

Repayments on senior secured credit facility
(154,400
)
 
—

 
—

 
—

 
—

 
(154,400
)
Intercompany transfers
—

 
—

 
133,203

 
(6,733
)
 
(126,470
)
 
—

Distributions to partners/owners
(72,087
)
 
—

 
(72,087
)
 
—

 
72,087

 
(72,087
)
Other, net
—

 
—

 
1,948

 
3,709

 
(3,709
)
 
1,948

Net cash provided by (used in) financing activities
92,913

 
—

 
63,064

 
(3,024
)
 
(58,092
)
 
94,861

Net (decrease) increase in cash and cash equivalents
—

 
—

 
779

 
637

 
—

 
1,416

Cash and cash equivalents at beginning of period
6

 
—

 
8,288

 
2,601

 
—

 
10,895

Cash and cash equivalents at end of period
$
6

 
$
—

 
$
9,067

 
$
3,238

 
$
—

 
$
12,311

 Unaudited Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2015
 
 
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
$
34,229

 
$
—

 
$
63,024

 
$
10,730

 
$
(45,518
)
 
$
62,465

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

 
—

 
(111,504
)
 
—

 
—

 
(111,504
)
Cash distributions received from equity investees - return of investment
11,013

 
—

 
7,827

 
—

 
(11,013
)
 
7,827

Investments in equity investees
—

 
—

 
(1,750
)
 
—

 
—

 
(1,750
)
Intercompany transfers
(86,700
)
 
—

 
—

 
—

 
86,700

 
—

Repayments on loan to non-guarantor subsidiary
—

 
—

 
1,329

 
—

 
(1,329
)
 
—

Proceeds from asset sales
—

 
—

 
1,768

 
—

 
—

 
1,768

Other, net
—

 
—

 
29

 
—

 
—

 
29

Net cash used in investing activities
(75,687
)
 
—

 
(102,301
)
 
—

 
74,358

 
(103,630
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
Borrowings on senior secured credit facility
226,200

 
—

 
—

 
—

 
—

 
226,200

Repayments on senior secured credit facility
(128,200
)
 
—

 
—

 
—

 
—

 
(128,200
)
Intercompany transfers
—

 
—

 
94,858

 
(8,158
)
 
(86,700
)
 
—

Distributions to partners/owners
(56,542
)
 
—

 
(56,542
)
 
—

 
56,542

 
(56,542
)
Other, net
—

 
—

 
1,383

 
(1,318
)
 
1,318

 
1,383

Net cash provided by (used in) financing activities
41,458

 
—

 
39,699

 
(9,476
)
 
(28,840
)
 
42,841

Net (decrease) increase in cash and cash equivalents
—

 
—

 
422

 
1,254

 
—

 
1,676

Cash and cash equivalents at beginning of period
9

 
—

 
8,352

 
1,101

 
—

 
9,462

Cash and cash equivalents at end of period
$
9

 
$
—

 
$
8,774

 
$
2,355

 
$
—

 
$
11,138




See below for revisions to previously presented Condensed Consolidating Financial Information.
Cash Flow Restatements
 
As Previously Reported
 
Adjustment
 
As Revised
March 31, 2015
 
 
 
 
 
 
Parent Column
 
 
 
 
 
 
Net cash provided by operating activities
 
(52,471
)
 
86,700

 
34,229

Intercompany transfers (investing)
 
—

 
(86,700
)
 
(86,700
)
Net cash used in investing activities
 
11,013

 
(86,700
)
 
(75,687
)
Guarantor Column
 
 
 
 
 
 
Net cash provided by operating activities
 
157,725

 
(94,701
)
 
63,024

Intercompany transfers (financing)
 
—

 
94,858

 
94,858

Net cash provided by (used in) financing activities
 
(55,159
)
 
94,858

 
39,699

Non-Guarantor Column
 
 
 
 
 
 
Net cash provided by operating activities
 
2,729

 
8,001

 
10,730

Intercompany transfers (financing)
 
—

 
(8,158
)
 
(8,158
)
Net cash provided by (used in) financing activities
 
(1,318
)
 
(8,158
)
 
(9,476
)
Eliminations Column
 
 
 
 
 
 
Intercompany transfers (investing)
 
—

 
86,700

 
86,700

Net cash used in investing activities
 
(12,342
)
 
86,700

 
74,358

Intercompany transfers (financing)
 
—

 
(86,700
)
 
(86,700
)
Net cash provided by (used in) financing activities
 
57,860

 
(86,700
)
 
(28,840
)