Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2019

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 the subsidiaries that hold our Alkali business (collectively, the "Alkali Business"), Genesis Free State Pipeline, LLC, Genesis NEJD Pipeline, LLC, and certain 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. As a general rule, the assets and credit of our unrestricted subsidiaries are not available to satisfy the Partnership's debts, and the liabilities of our unrestricted subsidiaries do not constitute obligations of the Partnership except, in the case of the Alkali Business, to the extent agreed to in the services agreement between the Partnership and Alkali Holdings dated as of September 23, 2019. Genesis Energy Finance Corporation has no independent assets or operations. See Note 9 for additional information regarding our consolidated debt obligations.

On September 23, 2019, the Company announced the expansion of its Granger facilities which included designating the Alkali Business as unrestricted subsidiaries of the Company under our indentures. Following such designation, the Alkali Business no longer guarantees our notes. The Alkali Business was historically presented as guarantor subsidiaries in footnote 18 and because of such designation will now be presented as non-guarantor subsidiaries. The changes made did not impact the Company's previously reported consolidated net operating results, financial position, or cash flows.

The unaudited condensed consolidating balance sheet as of December 31, 2018 and the unaudited condensed consolidating statements of operations for the three and nine months ended September 30, 2018, and unaudited condensed consolidating statements of cash flows for the nine months ended September 30, 2018 included in footnote 18 of the Notes to Consolidated Financial Statements have been retrospectively adjusted to reflect these updates to our non-guarantor subsidiaries as though the Alkali Business had been presented as non-guarantor subsidiaries 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

September 30, 2019

	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	$	—	$	18,503		$	38,100		$	—		$	56,609
Other current assets	75		—		247,428			213,709			(75		)	461,137
Total current assets	81		—		265,931			251,809			(75		)	517,746
Fixed assets, at cost	—		—		4,632,177			889,257			—			5,521,434
Less: Accumulated depreciation	—		—		(1,070,554		)	(141,508		)	—			(1,212,062		)
Net fixed assets	—		—		3,561,623			747,749			—			4,309,372
Mineral Leaseholds, net of accumulated depletion	—		—		—			556,993			—			556,993
Goodwill	—		—		301,959			—			—			301,959
Other assets, net	8,381		—		409,082			112,515			(176,990		)	352,988
Advances to affiliates	3,112,557		—		—			109,717			(3,222,274		)	—
Equity investees	—		—		336,900			—			—			336,900
Investments in subsidiaries	2,687,759		—		1,419,775			—			(4,107,534		)	—
Right of Use Assets, net	—		—		88,149			96,574			—			184,723
Total assets	$	5,808,778	$	—	$	6,383,419		$	1,875,357		$	(7,506,873	)	$	6,560,681
LIABILITIES AND CAPITAL
Current liabilities	$	54,394	$	—	$	218,975		$	140,735		$	(179	)	$	413,925
Senior secured credit facility	947,000		—		—			—			—			947,000
Senior unsecured notes, net of debt issuance costs	2,468,033		—		—			—			—			2,468,033
Deferred tax liabilities	—		—		12,872			—			—			12,872
Advances from affiliates	—		—		3,222,227			—			(3,222,227		)	—
Other liabilities	42,182		—		244,739			267,104			(176,858		)	377,167
Total liabilities	3,511,609		—		3,698,813			407,839			(3,399,264		)	4,218,997
Mezzanine Capital:
Class A Convertible Preferred Units	790,115		—		—			—			—			790,115
Redeemable noncontrolling interests	—		—		—			49,672			—			49,672
Partners’ capital, common units	1,507,054		—		2,684,606			1,423,003			(4,107,609		)	1,507,054
Accumulated other comprehensive income(1)	—		—		—			939			—			939
Noncontrolling interests	—		—		—			(6,096		)	—			(6,096		)
Total liabilities, mezzanine capital and partners’ capital	$	5,808,778	$	—	$	6,383,419		$	1,875,357		$	(7,506,873	)	$	6,560,681

⁽¹⁾The entire balance and activity within Accumulated Other Comprehensive Income is related to our defined benefit plan held within our Non-Guarantor Subsidiaries.

Unaudited Condensed Consolidating Balance Sheet

Year Ended December 31, 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	$	—	$	4,924		$	5,370		$	—		$	10,300
Other current assets	50		—		229,411			203,683			(165		)	432,979
Total current assets	56		—		234,335			209,053			(165		)	443,279
Fixed assets, at cost	—		—		4,602,164			838,694			—			5,440,858
Less: Accumulated depreciation	—		—		(926,830		)	(96,995		)	—			(1,023,825		)
Net fixed assets	—		—		3,675,334			741,699			—			4,417,033
Mineral Leaseholds, net of accumulated depletion	—		—		—			560,481			—			560,481
Goodwill	—		—		301,959			—			—			301,959
Other assets, net	10,776		—		435,540			122,538			(167,620		)	401,234
Advances to affiliates	3,305,568		—		—			105,917			(3,411,485		)	—
Equity investees and other investments	—		—		355,085			—			—			355,085
Investments in subsidiaries	2,648,510		—		1,413,334			—			(4,061,844		)	—
Total assets	$	5,964,910	$	—	$	6,415,587		$	1,739,688		$	(7,641,114	)	$	6,479,071
LIABILITIES AND CAPITAL
Current liabilities	$	39,342	$	—	$	177,104		$	116,498		$	(110	)	$	332,834
Senior secured credit facilities	970,100		—		—			—			—			970,100
Senior unsecured notes, net of debt issuance costs	2,462,363		—		—			—			—			2,462,363
Deferred tax liabilities	—		—		12,576			—			—			12,576
Advances from affiliates	—		—		3,411,515			—			(3,411,515		)	—
Other liabilities	40,840		—		174,249			211,590			(167,481		)	259,198
Total liabilities	3,512,645		—		3,775,444			328,088			(3,579,106		)	4,037,071
Mezzanine Capital:
Class A Convertible Preferred Units	761,466		—		—			—			—			761,466
Partners’ capital, common units	1,690,799		—		2,640,143			1,421,865			(4,062,008		)	1,690,799
Accumulated other comprehensive income(1)	—		—		—			939			—			939
Noncontrolling interests	—		—		—			(11,204		)	—			(11,204		)
Total liabilities, mezzanine capital and partners’ capital	$	5,964,910	$	—	$	6,415,587		$	1,739,688		$	(7,641,114	)	$	6,479,071

⁽¹⁾The entire balance and activity within Accumulated Other Comprehensive Income is related to our defined benefit plan held within our Non-Guarantor Subsidiaries.

Unaudited Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2019

	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	$	—		$	—	$	79,738		$	—		$	—		79,738
Sodium minerals and sulfur services	—			—		56,140			223,130			(1,743		)	277,527
Marine transportation	—			—		59,404			—			—			59,404
Onshore facilities and transportation	—			—		200,701			4,327			—			205,028
Total revenues	—			—		395,983			227,457			(1,743		)	621,697
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		179,983			339			—			180,322
Marine transportation costs	—			—		44,831			—			—			44,831
Sodium minerals and sulfur services operating costs	—			—		44,617			179,430			(1,743		)	222,304
Offshore pipeline transportation operating costs	—			—		22,819			113			—			22,932
General and administrative	—			—		14,632			367			—			14,999
Depreciation, depletion and amortization	—			—		62,632			20,890			—			83,522
Total costs and expenses	—			—		369,514			201,139			(1,743		)	568,910
OPERATING INCOME	—			—		26,469			26,318			—			52,787
Equity in earnings of subsidiaries	65,112			—		23,914			—			(89,026		)	—
Equity in earnings of equity investees	—			—		11,830			—			—			11,830
Interest (expense) income, net	(55,529		)	—		3,041			(2,185		)	—			(54,673		)
Other income	7,974			—		—			—			—			7,974
Income before income taxes	17,557			—		65,254			24,133			(89,026		)	17,918
Income tax expense	—			—		(119		)	8			—			(111		)
NET INCOME	17,557			—		65,135			24,141			(89,026		)	17,807
Net loss attributable to noncontrolling interest	—			—		—			22			—			22
Net income attributable to redeemable noncontrolling interests	—			—		—			(272		)	—			(272		)
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	17,557		$	—	$	65,135		$	23,891		$	(89,026	)	$	17,557
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(18,684		)	—		—			—			—			(18,684		)
NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS	$	(1,127	)	$	—	$	65,135		$	23,891		$	(89,026	)	$	(1,127	)

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	—			—		83,951			211,665			(3,894		)	291,722
Marine transportation	—			—		56,296			—			—			56,296
Onshore facilities and transportation	—			—		322,275			4,870			—			327,145
Total revenues	—			—		532,637			216,535			(3,894		)	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	—			—		65,579			167,519			(3,894		)	229,204
Offshore pipeline transportation operating costs	—			—		17,217			536			—			17,753
General and administrative	—			—		23,888			321			—			24,209
Depreciation, depletion and amortization	—			—		70,895			20,981			—			91,876
Gain on sale of assets	—			—		(3,363		)	—			—			(3,363		)
Total costs and expenses	—			—		513,380			189,644			(3,894		)	699,130
OPERATING INCOME	—			—		19,257			26,891			—			46,148
Equity in earnings of subsidiaries	57,078			—		25,489			—			(82,567		)	—
Equity in earnings of equity investees	—			—		9,492			—			—			9,492
Interest (expense) income, net	(59,229		)	—		3,235			(2,825		)	—			(58,819		)
Other income	1,828			—		—			—			—			1,828
Income (loss) before income taxes	(323		)	—		57,473			24,066			(82,567		)	(1,351		)
Income tax expense	—			—		(383		)	100			—			(283		)
NET INCOME (LOSS)	(323		)	—		57,090			24,166			(82,567		)	(1,634		)
Net loss attributable to noncontrolling interest	—			—		—			1,311			—			1,311
NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	(323	)	$	—	$	57,090		$	25,477		$	(82,567	)	$	(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	)	$	—	$	57,090		$	25,477		$	(82,567	)	$	(17,958	)

Unaudited Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2019

	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	$	—		$	—	$	236,482		$	—		$	—		$	236,482
Sodium minerals and sulfur services	—			—		196,522			637,319			(6,222		)	827,619
Marine transportation	—			—		174,760			—			—			174,760
Onshore facilities and transportation	—			—		624,192			13,438			—			637,630
Total revenues	—			—		1,231,956			650,757			(6,222		)	1,876,491
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		553,289			1,015			—			554,304
Marine transportation operating costs	—			—		133,400			—			—			133,400
Sodium minerals and sulfur services  operating costs	—			—		153,052			514,076			(6,222		)	660,906
Offshore pipeline transportation operating costs	—			—		53,020			(7,513		)	—			45,507
General and administrative	—			—		38,954			1,143			—			40,097
Depreciation, depletion and amortization	—			—		185,332			55,181			—			240,513
Total costs and expenses	—			—		1,117,047			563,902			(6,222		)	1,674,727
OPERATING INCOME	—			—		114,909			86,855			—			201,764
Equity in earnings of subsidiaries	241,506			—		78,226			—			(319,732		)	—
Equity in earnings of equity investees	—			—		39,873			—			—			39,873
Interest (expense) income, net	(168,181		)	—		9,249			(6,949		)	—			(165,881		)
Other income	306			—		—			—			—			306
Income before income taxes	73,631			—		242,257			79,906			(319,732		)	76,062
Income tax expense	—			—		(656		)	—			—			(656		)
NET INCOME	73,631			—		241,601			79,906			(319,732		)	75,406
Net income attributable to noncontrolling interest	—			—		—			(1,503		)	—			(1,503		)
Net income attributable to redeemable noncontrolling interests	—			—		—			(272		)	—			(272		)
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	73,631		$	—	$	241,601		$	78,131		$	(319,732	)	$	73,631
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(55,783		)	—		—			—			—			$	(55,783	)
NET INCOME AVAILABLE TO COMMON UNIT HOLDERS	$	17,848		$	—	$	241,601		$	78,131		$	(319,732	)	$	17,848

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	—			—		250,225			637,729			(11,441		)	876,513
Marine transportation	—			—		161,410			—			—			161,410
Onshore facilities and transportation	—			—		957,618			14,589			—			972,207
Total revenues	—			—		1,582,597			652,318			(11,441		)	2,223,474
COSTS AND EXPENSES:
Onshore facilities and transportation costs	—			—		900,638			836			—			901,474
Marine transportation operating costs	—			—		126,259			—			—			126,259
Sodium minerals and sulfur services operating costs	—			—		195,840			500,820			(11,441		)	685,219
Offshore pipeline transportation operating costs	—			—		51,688			1,845			—			53,533
General and administrative	—			—		48,420			992			—			49,412
Depreciation, depletion and amortization	—			—		193,054			51,757			—			244,811
Gain on sale of assets	—			—		(3,363		)	—			—			(3,363		)
Total costs and expenses	—			—		1,512,536			556,250			(11,441		)	2,057,345
OPERATING INCOME	—			—		70,061			96,068			—			166,129
Equity in earnings of subsidiaries	196,103			—		89,162			—			(285,265		)	—
Equity in earnings of equity investees	—			—		28,388			—			—			28,388
Interest (expense) income, net	(173,791		)	—		9,843			(8,916		)	—			(172,864		)
Other expense	(3,604		)	—		—			—			—			(3,604		)
Income before income taxes	18,708			—		197,454			87,152			(285,265		)	18,049
Income tax expense	—			—		(1,238		)	324			—			(914		)
NET INCOME	18,708			—		196,216			87,476			(285,265		)	17,135
Net loss attributable to noncontrolling interest	—			—		—			1,573			—			1,573
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	18,708		$	—	$	196,216		$	89,049		$	(285,265	)	$	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	)	$	—	$	196,216		$	89,049		$	(285,265	)	$	(33,072	)

Unaudited Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2019

	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	$	81,990		$	—	$	425,780		$	120,191		$	(296,232	)	$	331,729
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(53,915		)	(55,683		)	—			(109,598		)
Cash distributions received from equity investees - return of investment	—			—		18,333			—			—			18,333
Intercompany transfers	168,189			—		—			—			(168,189		)	—
Repayments on loan to non-guarantor subsidiary	—			—		6,132			—			(6,132		)	—
Proceeds from asset sales	—			—		890			—			—			890
Net cash used in investing activities	168,189			—		(28,560		)	(55,683		)	(174,321		)	(90,375		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	597,500			—		—			—			—			597,500
Repayments on senior secured credit facility	(620,600		)	—		—			—			—			(620,600		)
Net proceeds from issuance of preferred units	—			—		—			49,400			—			49,400
Intercompany transfers	—			—		(158,690		)	(9,499		)	168,189			—
Distributions to partners/owners	(202,257		)	—		(202,257		)	(84,601		)	286,859			(202,256		)
Distributions to preferred unitholders	(24,822		)	—		(24,822		)	—			24,822			(24,822		)
Contributions from noncontrolling interest	—			—		—			3,605			—			3,605
Other, net	—			—		2,128			9,317			(9,317		)	2,128
Net cash used in financing activities	(250,179		)	—		(383,641		)	(31,778		)	470,553			(195,045		)
Net increase in cash and cash equivalents	—			—		13,579			32,730			—			46,309
Cash and cash equivalents at beginning of period	6			—		4,924			5,370			—			10,300
Cash and cash equivalents at end of period	$	6		$	—	$	18,503		$	38,100		$	—		$	56,609

 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		$	—	$	391,406		$	155,954		$	(272,270	)	$	307,564
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	—			—		(98,997		)	(53,871		)	—			(152,868		)
Cash distributions received from equity investees - return of investment	—			—		26,042			—			—			26,042
Investments in equity investees	—			—		(2,960		)	—			—			(2,960		)
Acquisitions	—			—		—			—			—			—
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			—		(33,515		)	(53,871		)	(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 partners/owners	(191,224		)	—		(191,224		)	(96,500		)	287,724			(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		)	(97,024		)	460,473			(211,800		)
Net increase in cash and cash equivalents	—			—		(2,222		)	5,059			—			2,837
Cash and cash equivalents at beginning of period	6			—		5,230			3,805			—			9,041
Cash and cash equivalents at end of period	$	6		$	—	$	3,008		$	8,864		$	—		$	11,878