Condensed Consolidating Financial Information

9 Months Ended

Sep. 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

September 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	$	—	$	9,114		$	2,758		$	—		$	11,878
Other current assets	75		—		737,367			12,152			(48		)	749,546
Total current assets	81		—		746,481			14,910			(48		)	761,424
Fixed assets, at cost	—		—		5,328,399			77,585			—			5,405,984
Less: Accumulated depreciation	—		—		(854,241		)	(28,592		)	—			(882,833		)
Net fixed assets	—		—		4,474,158			48,993			—			4,523,151
Mineral Leaseholds	—		—		561,593			—			—			561,593
Goodwill	—		—		325,046			—			—			325,046
Other assets, net	11,574		—		440,330			119,979			(164,397		)	407,486
Advances to affiliates	3,626,049		—		—			97,840			(3,723,889		)	—
Equity investees	—		—		356,468			—			—			356,468
Investments in subsidiaries	2,691,191		—		80,157			—			(2,771,348		)	—
Total assets	$	6,328,895	$	—	$	6,984,233		$	281,722		$	(6,659,682	)	$	6,935,168
LIABILITIES AND CAPITAL
Current liabilities	$	55,001	$	—	$	369,890		$	5,352		$	(237	)	$	430,006
Senior secured credit facility	1,220,700		—		—			—			—			1,220,700
Senior unsecured notes	2,460,486		—		—			—			—			2,460,486
Deferred tax liabilities	—		—		12,293			—			—			12,293
Advances from affiliates	—		—		3,723,793			—			(3,723,793		)	—
Other liabilities	48,572		—		193,480			198,025			(164,254		)	275,823
Total liabilities	3,784,759		—		4,299,456			203,377			(3,888,284		)	4,399,308
Mezzanine Capital:
Class A Convertible Preferred Units	744,727		—		—			—			—			744,727
Partners’ capital, common units	1,799,409		—		2,685,381			86,017			(2,771,398		)	1,799,409
Accumulated other comprehensive loss(1)	—		—		(604		)	—			—			(604		)
Noncontrolling interests	—		—		—			(7,672		)	—			(7,672		)
Total liabilities, mezzanine capital and partners’ capital	$	6,328,895	$	—	$	6,984,233		$	281,722		$	(6,659,682	)	$	6,935,168

⁽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 plan held within our Guarantor Subsidiaries.

Unaudited Condensed Consolidating Statement of Operations

Three Months Ended September 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	$	—		$	—	$	70,115		$	—		$	—		$	70,115
Sodium minerals and sulfur services	—			—		290,837			2,922			(2,037		)	291,722
Marine transportation	—			—		56,296			—			—			56,296
Onshore facilities and transportation	—			—		322,275			4,870			—			327,145
Total revenues	—			—		739,523			7,792			(2,037		)	745,278
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		294,969			287			—			295,256
Marine transportation costs	—			—		44,195			—			—			44,195
Sodium minerals and sulfur services operating costs	—			—		228,721			2,520			(2,037		)	229,204
Offshore pipeline transportation operating costs	—			—		17,217			536			—			17,753
General and administrative	—			—		24,209			—			—			24,209
Depreciation, depletion and amortization	—			—		85,229			6,647			—			91,876
Gain on sale of assets	—			—		(3,363		)	—			—			(3,363		)
Total costs and expenses	—			—		691,177			9,990			(2,037		)	699,130
OPERATING INCOME	—			—		48,346			(2,198		)	—			46,148
Equity in earnings of subsidiaries	57,078			—		(4,047		)	—			(53,031		)	—
Equity in earnings of equity investees	—			—		9,492			—			—			9,492
Interest (expense) income, net	(59,229		)	—		3,683			(3,273		)	—			(58,819		)
Other income	1,828			—		—			—			—			1,828
Income before income taxes	(323		)	—		57,474			(5,471		)	(53,031		)	(1,351		)
Income tax benefit (expense)	—			—		(383		)	100			—			(283		)
NET INCOME (LOSS)	(323		)	—		57,091			(5,371		)	(53,031		)	(1,634		)
Net loss attributable to noncontrolling interest	—			—		—			1,311			—			1,311
NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	(323	)	$	—	$	57,091		$	(4,060	)	$	(53,031	)	$	(323	)
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	$	(17,635	)	$	—	$	—		$	—		$	—		$	(17,635	)
NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS	$	(17,958	)	$	—	$	57,091		$	(4,060	)	$	(53,031	)	$	(17,958	)

Unaudited Condensed Consolidating Statement of Operations

Three Months Ended September 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	$	—		$	—	$	80,671					$	—		$	80,671
Sodium minerals and sulfur services	—			—		109,292			2,069			(1,596		)	109,765
Marine transportation	—			—		48,534			—			—			48,534
Onshore facilities and transportation	—			—		242,547			4,597			—			247,144
Total revenues	—			—		481,044			6,666			(1,596		)	486,114
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		225,716			313			—			226,029
Marine transportation costs	—			—		35,789			—			—			35,789
Sodium minerals and sulfur services  operating costs	—			—		78,869			2,092			(1,596		)	79,365
Offshore pipeline transportation operating costs	—			—		17,928			762			—			18,690
General and administrative	—			—		19,409			—			—			19,409
Depreciation, depletion and amortization	—			—		63,107			625			—			63,732
Gain on sale of assets	—			—		—			—			—			—
Total costs and expenses	—			—		440,818			3,792			(1,596		)	443,014
OPERATING INCOME	—			—		40,226			2,874			—			43,100
Equity in earnings of subsidiaries	55,971			—		(388		)	—			(55,583		)	—
Equity in earnings of equity investees	—			—		13,044			—			—			13,044
Interest (expense) income, net	(47,383		)	—		3,450			(3,455		)	—			(47,388		)
Other expense	(2,276		)	—		—			—			—			(2,276		)
Income before income taxes	6,312			—		56,332			(581		)	(55,583		)	6,480
Income tax benefit (expense)	—			—		(322		)	2			—			(320		)
NET INCOME (LOSS)	6,312			—		56,010			(579		)	(55,583		)	6,160
Net loss attributable to noncontrolling interest	—			—		—			152			—			152
NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	6,312		$	—	$	56,010		$	(427	)	$	(55,583	)	$	6,312
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(5,469		)	—		—			—			—			(5,469		)
NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS	$	843		$	—	$	56,010		$	(427	)	$	(55,583	)	$	843

Unaudited Condensed Consolidating Statement of Operations

Nine Months Ended September 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	$	—		$	—	$	213,344		$	—		$	—		$	213,344
Sodium minerals and sulfur services	—			—		873,863			9,056			(6,406		)	876,513
Marine transportation	—			—		161,410			—			—			161,410
Onshore facilities and transportation	—			—		957,618			14,589			—			972,207
Total revenues	—			—		2,206,235			23,645			(6,406		)	2,223,474
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		900,638			836			—			901,474
Marine transportation costs	—			—		126,259			—			—			126,259
Sodium minerals and sulfur services  operating costs	—			—		683,989			7,636			(6,406		)	685,219
Offshore pipeline transportation operating costs	—			—		51,688			1,845			—			53,533
General and administrative	—			—		49,412			—			—			49,412
Depreciation, depletion and amortization	—			—		236,914			7,897			—			244,811
Gain on sale of assets	—			—		(3,363		)	—			—			(3,363		)
Total costs and expenses	—			—		2,045,537			18,214			(6,406		)	2,057,345
OPERATING INCOME	—			—		160,698			5,431			—			166,129
Equity in earnings of subsidiaries	196,103			—		(2,518		)	—			(193,585		)	—
Equity in earnings of equity investees	—			—		28,388			—			—			28,388
Interest (expense) income, net	(173,791		)	—		10,887			(9,960		)	—			(172,864		)
Other expense	(3,604		)	—		—			—			—			(3,604		)
Income before income taxes	18,708			—		197,455			(4,529		)	(193,585		)	18,049
Income tax benefit (expense)	—			—		(1,238		)	324			—			(914		)
NET INCOME (LOSS)	18,708			—		196,217			(4,205		)	(193,585		)	17,135
Net loss attributable to noncontrolling interest	—			—		—			1,573			—			1,573
NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	18,708		$	—	$	196,217		$	(2,632	)	$	(193,585	)	$	18,708
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(51,780		)	—		—			—			—			$	(51,780	)
NET INCOME(LOSS) AVAILABLE TO COMMON UNIT HOLDERS	$	(33,072	)	$	—	$	196,217		$	(2,632	)	$	(193,585	)	$	(33,072	)

Unaudited Condensed Consolidating Statement of Operations

Nine Months Ended September 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	$	—		$	—	$	243,437					$	—		$	243,437
Sodium minerals and sulfur services	—			—		197,321			5,968			(5,410		)	197,879
Marine transportation	—			—		152,038			—			—			152,038
Onshore facilities and transportation	—			—		700,908			14,066			—			714,974
Total revenues	—			—		1,293,704			20,034			(5,410		)	1,308,328
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		661,842			853			—			662,695
Marine transportation costs	—			—		111,980			—			—			111,980
Sodium minerals and sulfur services operating costs	—			—		132,608			6,137			(5,410		)	133,335
Offshore pipeline transportation operating costs	—			—		52,396			2,286			—			54,682
General and administrative	—			—		38,723			—			—			38,723
Depreciation, depletion and amortization	—			—		174,578			1,875			—			176,453
Gain on sale of assets	—			—		(26,684		)	—			—			(26,684		)
Total costs and expenses	—			—		1,145,443			11,151			(5,410		)	1,151,184
OPERATING INCOME	—			—		148,261			8,883			—			157,144
Equity in earnings of subsidiaries	191,471			—		(1,033		)	—			(190,438		)	—
Equity in earnings of equity investees	—			—		34,805			—			—			34,805
Interest (expense) income, net	(122,060		)	—		10,436			(10,493		)	—			(122,117		)
Other expense	(2,276		)	—		—			—			—			(2,276		)
Income before income taxes	67,135			—		192,469			(1,610		)	(190,438		)	67,556
Income tax (expense) benefit	—			—		(880		)	2			—			(878		)
NET INCOME (LOSS)	67,135			—		191,589			(1,608		)	(190,438		)	66,678
Net loss attributable to noncontrolling interest	—			—		—			457			—			457
NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	67,135		$	—	$	191,589		$	(1,151	)	$	(190,438	)	$	67,135
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(5,469		)	—		—			—			—			(5,469		)
NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS	$	61,666		$	—	$	191,589		$	(1,151	)	$	(190,438	)	$	61,666

Unaudited Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 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	$	32,474		$	—	$	448,273		$	2,587		$	(175,770	)	$	307,564
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(152,868		)	—			—			(152,868		)
Cash distributions received from equity investees - return of investment	—			—		26,042			—			—			26,042
Investments in equity investees	—			—		(2,960		)	—			—			(2,960		)
Intercompany transfers	182,662			—		—			—			(182,662		)	—
Repayments on loan to non-guarantor subsidiary	—			—		5,541			—			(5,541		)	—
Proceeds from asset sales	—			—		36,859			—			—			36,859
Net cash used in investing activities	182,662			—		(87,386		)	—			(188,203		)	(92,927		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	759,800			—		—			—			—			759,800
Repayments on senior secured credit facility	(638,300		)	—		—			—			—			(638,300		)
Repayment of senior unsecured notes	(145,170		)	—		—			—			—			(145,170		)
Debt issuance costs	(242		)	—		—			—			—			(242		)
Intercompany transfers	—			—		(170,245		)	(12,417		)	182,662			—
Distributions to common unitholders	(191,224		)	—		(191,224		)	—			191,224			(191,224		)
Contributions from noncontrolling interest	—			—		—			1,980			—			1,980
Other, net	—			—		1,356			9,913			(9,913		)	1,356
Net cash used in financing activities	(215,136		)	—		(360,113		)	(524		)	363,973			(211,800		)
Net increase in cash and cash equivalents	—			—		774			2,063			—			2,837
Cash and cash equivalents at beginning of period	6			—		8,340			695			—			9,041
Cash and cash equivalents at end of period	$	6		$	—	$	9,114		$	2,758		$	—		$	11,878

Unaudited Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 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 (used in) operating activities	$	142,721		$	—	$	322,309		$	(8,346	)	$	(250,294	)	$	206,390
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(182,653		)	—			—			(182,653		)
Cash distributions received from equity investees - return of investment	—			—		25,917			—			—			25,917
Investments in equity investees	(140,513		)	—		—			—			140,513			—
Acquisitions	—			—		(1,325,759		)	—			—			(1,325,759		)
Intercompany transfers	(1,238,585		)	—		—			—			1,238,585			—
Repayments on loan to non-guarantor subsidiary	—			—		(159		)	—			159			—
Contributions in aid of construction costs	—			—		124			—			—			124
Proceeds from asset sales	—			—		39,204			—			—			39,204
Net cash used in investing activities	(1,379,098		)	—		(1,443,326		)	—			1,379,257			(1,443,167		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	1,247,700			—		—			—			—			1,247,700
Repayments on senior secured credit facility	(1,153,400		)	—		—			—			—			(1,153,400		)
Proceeds from issuance of senior unsecured notes	550,000			—		—			—			—			550,000
Proceeds from issuance of Class A convertible preferred units, net	729,958			—		—			—			—			729,958
Debt issuance costs	(17,808		)	—		—			—			—			(17,808		)
Intercompany transfers	—			—		1,242,475			(3,890		)	(1,238,585		)	—
Issuance of common units for cash, net	140,513			—		140,513			—			(140,513		)	140,513
Distributions to common unitholders	(260,586		)	—		(260,586		)	—			260,586			(260,586		)
Contributions from noncontrolling interest	—			—		—			1,850			—			1,850
Other, net	—			—		1,215			10,451			(10,451		)	1,215
Net cash provided by financing activities	1,236,377			—		1,123,617			8,411			(1,128,963		)	1,239,442
Net increase in cash and cash equivalents	—			—		2,600			65			—			2,665
Cash and cash equivalents at beginning of period	6			—		6,360			663			—			7,029
Cash and cash equivalents at end of period	$	6		$	—	$	8,960		$	728		$	—		$	9,694