Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2018

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

Our $2.5 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 9 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, 2018

	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	$	—	$	5,897		$	1,943		$	—		$	7,846
Other current assets	—		—		555,496			12,349			(22		)	567,823
Total current assets	6		—		561,393			14,292			(22		)	575,669
Fixed assets, at cost	—		—		5,608,568			77,585			—			5,686,153
Less: Accumulated depreciation	—		—		(839,498		)	(27,967		)	—			(867,465		)
Net fixed assets	—		—		4,769,070			49,618			—			4,818,688
Mineral Leaseholds	—		—		562,315			—			—			562,315
Goodwill	—		—		325,046			—			—			325,046
Other assets, net	12,353		—		439,697			122,136			(161,124		)	413,062
Advances to affiliates	3,753,885		—		—			93,645			(3,847,530		)	—
Equity investees	—		—		362,852			—			—			362,852
Investments in subsidiaries	2,699,080		—		84,932			—			(2,784,012		)	—
Total assets	$	6,465,324	$	—	$	7,105,305		$	279,691		$	(6,792,688	)	$	7,057,632
LIABILITIES AND CAPITAL
Current liabilities	$	40,584	$	—	$	334,786		$	8,953		$	(164	)	$	384,159
Senior secured credit facility	1,306,300		—		—			—			—			1,306,300
Senior unsecured notes	2,458,614		—		—			—			—			2,458,614
Deferred tax liabilities	—		—		12,244			—			—			12,244
Advances from affiliates	—		—		3,847,511			—			(3,847,511		)	—
Other liabilities	49,410		—		217,510			187,583			(160,979		)	293,524
Total liabilities	3,854,908		—		4,412,051			196,536			(4,008,654		)	4,454,841
Mezzanine Capital:
Class A Convertible Preferred Units	728,459		—		—			—			—			728,459
Partners’ capital, common units	1,881,957		—		2,693,858			90,176			(2,784,034		)	1,881,957
Accumulated other comprehensive loss(1)	—		—		(604		)	—			—			(604		)
Noncontrolling interests	—		—		—			(7,021		)	—			(7,021		)
Total liabilities, mezzanine capital and partners’ capital	$	6,465,324	$	—	$	7,105,305		$	279,691		$	(6,792,688	)	$	7,057,632

⁽¹⁾The entire balance and activity within Accumulated Other Comprehensive Income is related to our pension held within our Guarantor Subsidiaries.

Unaudited Condensed Consolidating Balance Sheet

December 31, 2017

	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	$	—	$	8,340		$	695		$	—		$	9,041
Other current assets	50		—		614,682			12,316			(56		)	626,992
Total current assets	56		—		623,022			13,011			(56		)	636,033
Fixed assets, at cost	—		—		5,523,431			77,584			—			5,601,015
Less: Accumulated depreciation	—		—		(708,269		)	(26,717		)	—			(734,986		)
Net fixed assets	—		—		4,815,162			50,867			—			4,866,029
Mineral Leaseholds	—		—		564,506			—			—			564,506
Goodwill	—		—		325,046			—			—			325,046
Other assets, net	14,083		—		378,371			126,300			(154,437		)	364,317
Advances to affiliates	3,808,712		—		—			85,423			(3,894,135		)	—
Equity investees and other investments	—		—		381,550			—			—			381,550
Investments in subsidiaries	2,689,861		—		82,616			—			(2,772,477		)	—
Total assets	$	6,512,712	$	—	$	7,170,273		$	275,601		$	(6,821,105	)	$	7,137,481
LIABILITIES AND CAPITAL
Current liabilities	$	46,086	$	—	$	399,017		$	11,417		$	(256	)	$	456,264
Senior secured credit facilities	1,099,200		—		—			—			—			1,099,200
Senior unsecured notes	2,598,918		—		—			—			—			2,598,918
Deferred tax liabilities	—		—		11,913			—			—			11,913
Advances from affiliates	—		—		3,894,027			—			(3,894,027		)	—
Other liabilities	45,210		—		182,414			183,237			(154,290		)	256,571
Total liabilities	3,789,414		—		4,487,371			194,654			(4,048,573		)	4,422,866
Mezzanine Capital:
Class A Convertible Preferred Units	697,151		—		—			—			—			697,151
Partners’ capital, common units	2,026,147		—		2,683,506			89,026			(2,772,532		)	2,026,147
Accumulated other comprehensive loss(1)	—		—		(604		)	—			—			(604		)
Noncontrolling interests	—		—		—			(8,079		)	—			(8,079		)
Total liabilities, mezzanine capital and partners’ capital	$	6,512,712	$	—	$	7,170,273		$	275,601		$	(6,821,105	)	$	7,137,481

⁽¹⁾The entire balance and activity within Accumulated Other Comprehensive Income is related to our pension held within our Guarantor Subsidiaries.

Unaudited Condensed Consolidating Statement of Operations

Three Months Ended June 30, 2018

	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	$	—		$	—	$	69,969		$	—		$	—		$	69,969
Sodium minerals and sulfur services	—			—		297,929			3,068			(2,116		)	298,881
Marine transportation	—			—		56,185			—			—			56,185
Onshore facilities and transportation	—			—		322,469			4,884			—			327,353
Total revenues	—			—		746,552			7,952			(2,116		)	752,388
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		305,828			277			—			306,105
Marine transportation costs	—			—		44,217			—			—			44,217
Sodium minerals and sulfur services operating costs	—			—		232,021			2,612			(2,116		)	232,517
Offshore pipeline transportation operating costs	—			—		16,809			631			—			17,440
General and administrative	—			—		13,529			—			—			13,529
Depreciation and amortization	—			—		77,055			625			—			77,680
Total costs and expenses	—			—		689,459			4,145			(2,116		)	691,488
OPERATING INCOME	—			—		57,093			3,807			—			60,900
Equity in earnings of subsidiaries	69,433			—		897			—			(70,330		)	—
Equity in earnings of equity investees	—			—		8,324			—			—			8,324
Interest (expense) income, net	(58,248		)	—		3,660			(3,321		)	—			(57,909		)
Other expense	(188		)	—		—			—			—			(188		)
Income before income taxes	10,997			—		69,974			486			(70,330		)	11,127
Income tax benefit (expense)	—			—		(478		)	222			—			(256		)
NET INCOME	10,997			—		69,496			708			(70,330		)	10,871
Net loss attributable to noncontrolling interest	—			—		—			126			—			126
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	10,997		$	—	$	69,496		$	834		$	(70,330	)	$	10,997
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	$	(17,257	)	$	—	$	—		$	—		$	—		$	(17,257	)
NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS	$	(6,260	)	$	—	$	69,496		$	834		$	(70,330	)	$	(6,260	)

Unaudited Condensed Consolidating Statement of Operations

Three Months Ended June 30, 2017

	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	$	—		$	—	$	77,638					$	—		$	77,638
Sodium minerals and sulfur services	—			—		42,995			2,089			(2,016		)	43,068
Marine transportation	—			—		53,202			—			—			53,202
Onshore facilities and transportation	—			—		228,291			4,524			—			232,815
Total revenues	—			—		402,126			6,613			(2,016		)	406,723
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		222,055			279			—			222,334
Marine transportation costs	—			—		38,949			—			—			38,949
Sodium minerals and sulfur services  operating costs	—			—		26,586			2,036			(2,016		)	26,606
Offshore pipeline transportation operating costs	—			—		17,362			762			—			18,124
General and administrative	—			—		9,338			—			—			9,338
Depreciation and amortization	—			—		55,984			625			—			56,609
Gain on sale of assets	—			—		(26,684		)	—			—			(26,684		)
Total costs and expenses	—			—		343,590			3,702			(2,016		)	345,276
OPERATING INCOME	—			—		58,536			2,911			—			61,447
Equity in earnings of subsidiaries	71,691			—		(395		)	—			(71,296		)	—
Equity in earnings of equity investees	—			—		10,426			—			—			10,426
Interest (expense) income, net	(37,958		)	—		3,466			(3,498		)	—			(37,990		)
Income before income taxes	33,733			—		72,033			(587		)	(71,296		)	33,883
Income tax expense	—			—		(303		)	—			—			(303		)
NET INCOME	33,733			—		71,730			(587		)	(71,296		)	33,580
Net loss attributable to noncontrolling interest	—			—		—			153			—			153
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	33,733		$	—	$	71,730		$	(434	)	$	(71,296	)	$	33,733
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	—			—		—			—			—			—
NET INCOME AVAILABLE TO COMMON UNIT HOLDERS	$	33,733		$	—	$	71,730		$	(434	)	$	(71,296	)	$	33,733

Unaudited Condensed Consolidating Statement of Operations

Six Months Ended June 30, 2018

	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	$	—		$	—	$	143,229		$	—		$	—		$	143,229
Sodium minerals and sulfur services	—			—		583,026			6,134			(4,369		)	584,791
Marine transportation	—			—		105,114			—			—			105,114
Onshore facilities and transportation	—			—		635,343			9,719			—			645,062
Total revenues	—			—		1,466,712			15,853			(4,369		)	1,478,196
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		605,669			549			—			606,218
Marine transportation costs	—			—		82,064			—			—			82,064
Sodium minerals and sulfur services  operating costs	—			—		455,268			5,116			(4,369		)	456,015
Offshore pipeline transportation operating costs	—			—		34,471			1,309			—			35,780
General and administrative	—			—		25,203			—			—			25,203
Depreciation, depletion and amortization	—			—		151,685			1,250			—			152,935
Total costs and expenses	—			—		1,354,360			8,224			(4,369		)	1,358,215
OPERATING INCOME	—			—		112,352			7,629			—			119,981
Equity in earnings of subsidiaries	139,025			—		1,529			—			(140,554		)	—
Equity in earnings of equity investees	—			—		18,896			—			—			18,896
Interest (expense) income, net	(114,562		)	—		7,204			(6,687		)	—			(114,045		)
Other expense	(5,432		)	—		—			—			—			(5,432		)
Income before income taxes	19,031			—		139,981			942			(140,554		)	19,400
Income tax expense	—			—		(855		)	224			—			(631		)
NET INCOME	19,031			—		139,126			1,166			(140,554		)	18,769
Net loss attributable to noncontrolling interest	—			—		—			262			—			262
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	19,031		$	—	$	139,126		$	1,428		$	(140,554	)	$	19,031
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(34,145		)	—		—			—			—			$	(34,145	)
NET INCOME(LOSS) AVAILABLE TO COMMON UNIT HOLDERS	$	(15,114	)	$	—	$	139,126		$	1,428		$	(140,554	)	$	(15,114	)

Unaudited Condensed Consolidating Statement of Operations

Six Months Ended June 30, 2017

	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	$	—		$	—	$	162,766					$	—		$	162,766
Sodium minerals and sulfur services	—			—		88,029			3,899			(3,814		)	88,114
Marine transportation	—			—		103,504			—			—			103,504
Onshore facilities and transportation	—			—		458,361			9,469			—			467,830
Total revenues	—			—		812,660			13,368			(3,814		)	822,214
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		436,126			540			—			436,666
Marine transportation costs	—			—		76,191			—			—			76,191
Sodium minerals and sulfur services operating costs	—			—		53,739			4,045			(3,814		)	53,970
Offshore pipeline transportation operating costs	—			—		34,468			1,524			—			35,992
General and administrative	—			—		19,314			—			—			19,314
Depreciation, depletion and amortization	—			—		111,471			1,250			—			112,721
Gain on sale of assets	—			—		(26,684		)	—			—			(26,684		)
Total costs and expenses	—			—		704,625			7,359			(3,814		)	708,170
OPERATING INCOME	—			—		108,035			6,009			—			114,044
Equity in earnings of subsidiaries	135,500			—		(645		)	—			(134,855		)	—
Equity in earnings of equity investees	—			—		21,761			—			—			21,761
Interest (expense) income, net	(74,677		)	—		6,986			(7,038		)	—			(74,729		)
Income before income taxes	60,823			—		136,137			(1,029		)	(134,855		)	61,076
Income tax (expense) benefit	—			—		(558		)	—			—			(558		)
NET INCOME	60,823			—		135,579			(1,029		)	(134,855		)	60,518
Net loss attributable to noncontrolling interest	—			—		—			305			—			305
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	60,823		$	—	$	135,579		$	(724	)	$	(134,855	)	$	60,823
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	—			—		—			—			—			—
NET INCOME AVAILABLE TO COMMON UNIT HOLDERS	$	60,823		$	—	$	135,579		$	(724	)	$	(134,855	)	$	60,823

Unaudited Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2018

	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 provided by operating activities	$	9,724		$	—	$	255,552		$	1,494		$	(115,954	)	$	150,816
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(110,970		)	—			—			(110,970		)
Cash distributions received from equity investees - return of investment	—			—		17,828			—			—			17,828
Investments in equity investees	—			—		(395		)	—			—			(395		)
Intercompany transfers	54,827			—		—			—			(54,827		)	—
Repayments on loan to non-guarantor subsidiary	—			—		3,647			—			(3,647		)	—
Proceeds from asset sales	—			—		1,192			—			—			1,192
Net cash used in investing activities	54,827			—		(88,698		)	—			(58,474		)	(92,345		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	543,100			—		—			—			—			543,100
Repayments on senior secured credit facility	(336,000		)	—		—			—			—			(336,000		)
Repayment of senior unsecured notes	(145,170		)	—		—			—			—			(145,170		)
Debt issuance costs	(224		)	—		—			—			—			(224		)
Intercompany transfers	—			—		(46,605		)	(8,222		)	54,827			—
Issuance of common units for cash, net	—			—		—			—			—			—
Distributions to common unitholders	(126,257		)	—		(126,257		)	—			126,257			(126,257		)
Contributions from noncontrolling interest	—			—		—			1,320			—			1,320
Other, net	—			—		3,565			6,656			(6,656		)	3,565
Net cash used in financing activities	(64,551		)	—		(169,297		)	(246		)	174,428			(59,666		)
Net increase (decrease) in cash and cash equivalents	—			—		(2,443		)	1,248			—			(1,195		)
Cash and cash equivalents at beginning of period	6			—		8,340			695			—			9,041
Cash and cash equivalents at end of period	$	6		$	—	$	5,897		$	1,943		$	—		$	7,846

Unaudited Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2017

	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 provided by operating activities	$	102,991		$	—	$	234,371		$	646		$	(161,687	)	$	176,321
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(126,580		)	—			—			(126,580		)
Cash distributions received from equity investees - return of investment	—			—		17,956			—			—			17,956
Investments in equity investees	(140,537		)	—		—			—			140,537			—
Acquisitions	—			—		(759		)	—			—			(759		)
Intercompany transfers	143,738			—		—			—			(143,738		)	—
Repayments on loan to non-guarantor subsidiary	—			—		3,296			—			(3,296		)	—
Contributions in aid of construction costs	—			—		124			—			—			124
Proceeds from asset sales	—			—		38,237			—			—			38,237
Net cash used in investing activities	3,201			—		(67,726		)	—			(6,497		)	(71,022		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	410,700			—		—			—			—			410,700
Repayments on senior secured credit facility	(477,900		)	—		—			—			—			(477,900		)
Debt issuance costs	(7,536		)	—		—			—			—			(7,536		)
Intercompany transfers	—			—		(135,170		)	(8,568		)	143,738			—
Issuance of common units for cash, net	140,537			—		140,537			—			(140,537		)	140,537
Distributions to common unitholders	(171,993		)	—		(171,993		)	—			171,993			(171,993		)
Contributions from noncontrolling interest	—			—		—			725			—			725
Other, net	—			—		3,216			7,010			(7,010		)	3,216
Net cash provided by financing activities	(106,192		)	—		(163,410		)	(833		)	168,184			(102,251		)
Net increase (decrease) in cash and cash equivalents	—			—		3,235			(187		)	—			3,048
Cash and cash equivalents at beginning of period	6			—		6,360			663			—			7,029
Cash and cash equivalents at end of period	$	6		$	—	$	9,595		$	476		$	—		$	10,077