(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||
, | |||||||
(Address of principal executive offices) | (Zip code) | ||||||
Registrant’s telephone number, including area code: |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
x | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ | Smaller reporting company | ||
Emerging growth company |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
March 31, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Accounts receivable - trade, net | |||||||
Inventories | |||||||
Other | |||||||
Total current assets | |||||||
FIXED ASSETS, at cost | |||||||
Less: Accumulated depreciation | ( | ) | ( | ) | |||
Net fixed assets | |||||||
MINERAL LEASEHOLDS, net of accumulated depletion | |||||||
NET INVESTMENT IN DIRECT FINANCING LEASES, net of unearned income | |||||||
EQUITY INVESTEES | |||||||
INTANGIBLE ASSETS, net of amortization | |||||||
GOODWILL | |||||||
RIGHT OF USE ASSETS, net | |||||||
OTHER ASSETS, net of amortization | |||||||
TOTAL ASSETS | $ | $ | |||||
LIABILITIES AND CAPITAL | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable - trade | $ | $ | |||||
Accrued liabilities | |||||||
Total current liabilities | |||||||
SENIOR SECURED CREDIT FACILITY | |||||||
SENIOR UNSECURED NOTES, net of debt issuance costs | |||||||
DEFERRED TAX LIABILITIES | |||||||
OTHER LONG-TERM LIABILITIES | |||||||
Total liabilities | |||||||
MEZZANINE CAPITAL: | |||||||
Class A Convertible Preferred Units, 25,336,778 issued and outstanding at March 31, 2020 and December 31, 2019 | |||||||
Redeemable noncontrolling interests, 130,000 preferred units issued and outstanding at March 31, 2020 and December 31, 2019, respectively | |||||||
PARTNERS’ CAPITAL: | |||||||
Common unitholders, 122,579,218 units issued and outstanding at March 31, 2020 and December 31, 2019 | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Noncontrolling interests | ( | ) | ( | ) | |||
Total partners' capital | |||||||
TOTAL LIABILITIES, MEZZANINE CAPITAL AND PARTNERS’ CAPITAL | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
REVENUES: | |||||||
Offshore pipeline transportation | $ | $ | |||||
Sodium minerals and sulfur services | |||||||
Marine transportation | |||||||
Onshore facilities and transportation | |||||||
Total revenues | |||||||
COSTS AND EXPENSES: | |||||||
Onshore facilities and transportation product costs | |||||||
Onshore facilities and transportation operating costs | |||||||
Marine transportation operating costs | |||||||
Sodium minerals and sulfur services operating costs | |||||||
Offshore pipeline transportation operating costs | |||||||
General and administrative | |||||||
Depreciation, depletion and amortization | |||||||
Total costs and expenses | |||||||
OPERATING INCOME | |||||||
Equity in earnings of equity investees | |||||||
Interest expense | ( | ) | ( | ) | |||
Other income (expense) | ( | ) | |||||
Income before income taxes | |||||||
Income tax benefit (expense) | ( | ) | |||||
NET INCOME | |||||||
Net loss attributable to noncontrolling interests | |||||||
Net income attributable to redeemable noncontrolling interests | ( | ) | |||||
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. | $ | $ | |||||
Less: Accumulated distributions attributable to Class A Convertible Preferred Units | ( | ) | ( | ) | |||
NET INCOME (LOSS) AVAILABLE TO COMMON UNITHOLDERS | $ | $ | ( | ) | |||
NET INCOME (LOSS) PER COMMON UNIT (Note 11): | |||||||
Basic and Diluted | $ | $ | ( | ) | |||
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS: | |||||||
Basic and Diluted |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net income | $ | $ | |||||
Other comprehensive income: | |||||||
Change in benefit plan liability | |||||||
Total Comprehensive income | |||||||
Comprehensive loss attributable to noncontrolling interests | |||||||
Comprehensive income attributable to redeemable noncontrolling interests | $ | ( | ) | $ | |||
Comprehensive income attributable to Genesis Energy, L.P. | $ | $ |
Number of Common Units | Partners’ Capital | Noncontrolling Interest | Accumulated Other Comprehensive Loss | Total | ||||||||||||||
Partners’ capital, January 1, 2020 | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Net income (loss) | — | ( | ) | — | ||||||||||||||
Cash distributions to partners | — | ( | ) | — | — | ( | ) | |||||||||||
Cash contributions from noncontrolling interests | — | — | — | |||||||||||||||
Distributions to Class A Convertible Preferred unitholders | — | ( | ) | — | — | ( | ) | |||||||||||
Partners' capital, March 31, 2020 | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Number of Common Units | Partners’ Capital | Noncontrolling Interest | Accumulated Other Comprehensive Income | Total | ||||||||||||||
Partners’ capital, January 1, 2019 | $ | $ | ( | ) | $ | $ | ||||||||||||
Net income (loss) | — | ( | ) | — | ||||||||||||||
Cash distributions to partners | — | ( | ) | — | — | ( | ) | |||||||||||
Cash contributions from noncontrolling interests | — | — | — | |||||||||||||||
Distributions to Class A Convertible Preferred unitholders | — | ( | ) | — | — | ( | ) | |||||||||||
Partners' capital, March 31, 2019 | $ | $ | ( | ) | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities - | |||||||
Depreciation, depletion and amortization | |||||||
Amortization and write-off of debt issuance costs and discount | |||||||
Amortization of unearned income and initial direct costs on direct financing leases | ( | ) | ( | ) | |||
Payments received under direct financing leases | |||||||
Equity in earnings of investments in equity investees | ( | ) | ( | ) | |||
Cash distributions of earnings of equity investees | |||||||
Non-cash effect of long-term incentive compensation plans | ( | ) | |||||
Deferred and other tax liabilities | ( | ) | |||||
Unrealized (gains) losses on derivative transactions | ( | ) | |||||
Other, net | |||||||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Payments to acquire fixed and intangible assets | ( | ) | ( | ) | |||
Cash distributions received from equity investees - return of investment | |||||||
Proceeds from asset sales | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings on senior secured credit facility | |||||||
Repayments on senior secured credit facility | ( | ) | ( | ) | |||
Proceeds from issuance of senior unsecured notes due 2028 | |||||||
Repayment of senior unsecured notes due 2022 | ( | ) | |||||
Debt issuance costs | ( | ) | |||||
Contributions from noncontrolling interests | |||||||
Distributions to common unitholders | ( | ) | ( | ) | |||
Distributions to preferred unitholders | ( | ) | |||||
Other, net | |||||||
Net cash used in financing activities | ( | ) | ( | ) | |||
Net increase (decrease) in cash, restricted cash, and cash equivalents | ( | ) | |||||
Cash, restricted cash and cash equivalents at beginning of period | |||||||
Cash, restricted cash and cash equivalents at end of period | $ | $ |
• | Offshore pipeline transportation and processing of crude oil and natural gas in the Gulf of Mexico; |
• | Sodium minerals and sulfur services involving trona and trona-based exploring, mining, processing, producing, marketing and selling activities, as well as processing of high sulfur (or "sour") gas streams for refineries to remove the sulfur, and selling the related by-product, sodium hydrosulfide (or "NaHS", commonly pronounced "nash"); |
• | Onshore facilities and transportation, which include terminalling, blending, storing, marketing, and transporting crude oil, petroleum products, and CO2; and |
• | Marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America. |
Three Months Ended March 31, 2020 | |||||||||||||||||||
Offshore Pipeline Transportation | Sodium Minerals & Sulfur Services | Marine Transportation | Onshore Facilities and Transportation | Consolidated | |||||||||||||||
Fee-based revenues | $ | $ | $ | $ | $ | ||||||||||||||
Product Sales | |||||||||||||||||||
Refinery Services | |||||||||||||||||||
$ | $ | $ | $ | $ |
Three Months Ended March 31, 2019 | |||||||||||||||||||
Offshore Pipeline Transportation | Sodium Minerals & Sulfur Services | Marine Transportation | Onshore Facilities & Transportation | Consolidated | |||||||||||||||
Fee-based revenues | $ | $ | $ | $ | $ | ||||||||||||||
Product Sales | |||||||||||||||||||
Refinery Services | |||||||||||||||||||
$ | $ | $ | $ | $ |
Contract Assets | Contract Liabilities | |||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ||||||||||
Balance at March 31, 2020 |
Offshore Pipeline Transportation | Onshore Facilities and Transportation | |||||
Remainder of 2020 | $ | $ | ||||
2021 | ||||||
2022 | ||||||
2023 | ||||||
2024 | ||||||
Thereafter | ||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
M/T American Phoenix | $ | $ | |||||
Free State Pipeline |
Operating Leases | Direct Financing Lease | ||||||||
Maturity of Lessor Receipts | Marine Transportation | Onshore Facilities and Transportation | Onshore Facilities and Transportation | ||||||
Remainder of 2020 | $ | $ | $ | ||||||
2021 | |||||||||
2022 | |||||||||
2023 | |||||||||
2024 | |||||||||
Thereafter | |||||||||
Total Lease Receipts | |||||||||
Less: Interest | — | — | ( | ) | |||||
Total Net Lease Receipts | $ | $ | $ |
March 31, 2020 | December 31, 2019 | ||||||
Petroleum products | $ | $ | |||||
Crude oil | |||||||
Caustic soda | |||||||
NaHS | |||||||
Raw materials - Alkali operations | |||||||
Work-in-process - Alkali operations | |||||||
Finished goods, net - Alkali operations | |||||||
Materials and supplies, net - Alkali operations | |||||||
Total | $ | $ |
March 31, 2020 | December 31, 2019 | ||||||
Crude oil pipelines and natural gas pipelines and related assets | $ | $ | |||||
Alkali facilities, machinery, and equipment | |||||||
Onshore facilities, machinery, and equipment | |||||||
Transportation equipment | |||||||
Marine vessels | |||||||
Land, buildings and improvements | |||||||
Office equipment, furniture and fixtures | |||||||
Construction in progress | |||||||
Other | |||||||
Fixed assets, at cost | |||||||
Less: Accumulated depreciation | ( | ) | ( | ) | |||
Net fixed assets | $ | $ |
March 31, 2020 | December 31, 2019 | ||||||
Mineral leaseholds | $ | $ | |||||
Less: Accumulated depletion | ( | ) | ( | ) | |||
Mineral leaseholds, net of accumulated depletion | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Depreciation expense | $ | $ | |||||
Depletion expense |
ARO liability balance, December 31, 2019 | $ | ||
Accretion expense | |||
Changes in estimate | ( | ) | |
Settlements | ( | ) | |
ARO liability balance, March 31, 2020 | $ |
Remainder of | 2020 | $ | ||
2021 | $ | |||
2022 | $ | |||
2023 | $ | |||
2024 | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Genesis’ share of operating earnings | $ | $ | |||||
Amortization of excess purchase price | ( | ) | ( | ) | |||
Net equity in earnings | $ | $ | |||||
Distributions received | $ | $ |
March 31, 2020 | December 31, 2019 | ||||||
BALANCE SHEET DATA: | |||||||
Assets | |||||||
Current assets | $ | $ | |||||
Fixed assets, net | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and equity | |||||||
Current liabilities | $ | $ | |||||
Other liabilities | |||||||
Equity | ( | ) | ( | ) | |||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
INCOME STATEMENT DATA: | |||||||
Revenues | $ | $ | |||||
Operating income | $ | $ | |||||
Net income | $ | $ |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Carrying Value | Gross Carrying Amount | Accumulated Amortization | Carrying Value | ||||||||||||||||||
Marine contract intangibles | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Offshore pipeline contract intangibles | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Amortization of intangible assets | $ | $ |
Remainder of | 2020 | $ | ||
2021 | $ | |||
2022 | $ | |||
2023 | $ | |||
2024 | $ |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Principal | Unamortized Discount and Debt Issuance Costs (1) | Net Value | Principal | Unamortized Discount and Debt Issuance Costs (1) | Net Value | ||||||||||||||||||
Senior secured credit facility | $ | $ | $ | $ | $ | $ | |||||||||||||||||
6.750% senior unsecured notes due 2022 | |||||||||||||||||||||||
6.000% senior unsecured notes due 2023 | |||||||||||||||||||||||
5.625% senior unsecured notes due 2024 | |||||||||||||||||||||||
6.500% senior unsecured notes due 2025 | |||||||||||||||||||||||
6.250% senior unsecured notes due 2026 | |||||||||||||||||||||||
7.750% senior unsecured notes due 2028 | |||||||||||||||||||||||
Total long-term debt | $ | $ | $ | $ | $ | $ |
(1) | Unamortized debt issuance costs associated with our senior secured credit facility (included in Other Long Term Assets on the Unaudited Condensed Consolidated Balance Sheet) were $ |
• | The interest rate on borrowings may be based on an alternate base rate or a Eurodollar rate, at our option. The alternate base rate is equal to the sum of (a) the greatest of (i) the prime rate as established by the administrative agent for the credit facility, (ii) the federal funds effective rate plus |
• | Letter of credit fee rates range from |
• | We pay a commitment fee on the unused portion of the $ |
• | The accordion feature is $ |
Distribution For | Date Paid | Per Unit Amount | Total Amount | ||||||||
2019 | |||||||||||
1st Quarter | $ | $ | |||||||||
2nd Quarter | $ | $ | |||||||||
3rd Quarter | $ | $ | |||||||||
4th Quarter | $ | $ | |||||||||
2020 | |||||||||||
1st Quarter | (1) | $ | $ |
Distribution For | Date Issued | Number of Units (1) | Total Amount | ||||||
2019 | |||||||||
1st Quarter | $ |
Distribution For | Date Paid | Per Unit Amount | Total Amount | |||||||
2019 | ||||||||||
1st Quarter | $ | $ | ||||||||
2nd Quarter | $ | $ | ||||||||
3rd Quarter | $ | $ | ||||||||
4th Quarter | $ | $ | ||||||||
2020 | ||||||||||
1st Quarter | (1) | $ | $ |
Balance as of December 31, 2019 | $ | |||
PIK distributions | ||||
Redemption accretion | ||||
Balance as of March 31, 2020 | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net Income Attributable to Genesis Energy L.P. | $ | $ | |||||
Less: Accumulated distributions attributable to Class A Convertible Preferred Units | ( | ) | $ | ( | ) | ||
Net Income (Loss) Available to Common Unitholders | $ | $ | ( | ) | |||
Weighted Average Outstanding Units | |||||||
Basic and Diluted Net Income (Loss) per Common Unit | $ | $ | ( | ) | |||
• | Offshore pipeline transportation – offshore transportation of crude oil and natural gas in the Gulf of Mexico; |
• | Sodium minerals and sulfur services – trona and trona-based exploring, mining, processing, producing, marketing and selling activities, as well as processing high sulfur (or “sour”) gas streams for refineries to remove the sulfur, and selling the related by-product, NaHS; |
• | Onshore facilities and transportation – terminalling, blending, storing, marketing and transporting crude oil, petroleum products (primarily fuel oil, asphalt, and other heavy refined products) and CO2 ;and |
• | Marine transportation – marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America. |
Offshore Pipeline Transportation | Sodium Minerals & Sulfur Services | Onshore Facilities & Transportation | Marine Transportation | Total | |||||||||||||||
Three Months Ended March 31, 2020 | |||||||||||||||||||
Segment Margin (a) | $ | $ | $ | $ | $ | ||||||||||||||
Capital expenditures (b) | $ | $ | $ | $ | $ | ||||||||||||||
Revenues: | |||||||||||||||||||
External customers | $ | $ | $ | $ | |||||||||||||||
Intersegment (c) | ( | ) | ( | ) | |||||||||||||||
Total revenues of reportable segments | $ | $ | $ | $ | $ | ||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||
Segment Margin (a) | $ | $ | $ | $ | $ | ||||||||||||||
Capital expenditures (b) | $ | $ | $ | $ | $ | ||||||||||||||
Revenues: | |||||||||||||||||||
External customers | $ | $ | $ | $ | |||||||||||||||
Intersegment (c) | ( | ) | ( | ) | |||||||||||||||
Total revenues of reportable segments | $ | $ | $ | $ | $ |
March 31, 2020 | December 31, 2019 | ||||||
Offshore pipeline transportation | $ | $ | |||||
Sodium minerals and sulfur services | |||||||
Onshore facilities and transportation | |||||||
Marine transportation | |||||||
Other assets | |||||||
Total consolidated assets | $ | $ |
(a) | A reconciliation of total Segment Margin to net income attributable to Genesis Energy, L.P. for the periods is presented below. |
(b) | Capital expenditures include maintenance and growth capital expenditures, such as fixed asset additions (including enhancements to existing facilities and construction of growth projects) as well as contributions to equity investees, if any. |
(c) | Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Total Segment Margin | $ | $ | |||||
Corporate general and administrative expenses | ( | ) | ( | ) | |||
Depreciation, depletion, amortization and accretion | ( | ) | ( | ) | |||
Interest expense | ( | ) | ( | ) | |||
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (1) | ( | ) | ( | ) | |||
Other non-cash items (2) | ( | ) | |||||
Cash payments from direct financing leases in excess of earnings | ( | ) | ( | ) | |||
Loss on extinguishment of debt (3) | ( | ) | |||||
Differences in timing of cash receipts for certain contractual arrangements (4) | ( | ) | |||||
Non-cash provision for leased items no longer in use | |||||||
Redeemable noncontrolling interest redemption value adjustments (5) | ( | ) | |||||
Income tax benefit (expense) | ( | ) | |||||
Net income attributable to Genesis Energy, L.P. | $ | $ |
(1) | Includes distributions attributable to the quarter and received during or promptly following such quarter. |
(2) | The 2020 Quarter includes a $ |
(3) |
(4) | Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Revenues: | |||||||
Revenues from services and fees to Poseidon(1) | $ | $ | |||||
Revenues from product sales to ANSAC | |||||||
Costs and expenses: | |||||||
Amounts paid to our CEO in connection with the use of his aircraft | $ | $ | |||||
Charges for services from Poseidon(1) | |||||||
Charges for services from ANSAC |
(1) | We own |
March 31, | December 31, | ||||||
2020 | 2019 | ||||||
Receivables: | |||||||
ANSAC | $ | $ | |||||
Payables: | |||||||
ANSAC | $ | $ |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(Increase) decrease in: | |||||||
Accounts receivable | $ | $ | |||||
Inventories | ( | ) | ( | ) | |||
Deferred charges | ( | ) | |||||
Other current assets | ( | ) | ( | ) | |||
Increase (decrease) in: | |||||||
Accounts payable | ( | ) | |||||
Accrued liabilities | ( | ) | ( | ) | |||
Net changes in components of operating assets and liabilities | $ | $ |
Sell (Short) Contracts | Buy (Long) Contracts | |||||||
Designated as hedges under accounting rules: | ||||||||
Crude oil futures: | ||||||||
Contract volumes (1,000 bbls) | ||||||||
Weighted average contract price per bbl | $ | $ | ||||||
Not qualifying or not designated as hedges under accounting rules: | ||||||||
Crude oil futures: | ||||||||
Contract volumes (1,000 bbls) | ||||||||
Weighted average contract price per bbl | $ | $ | ||||||
Natural gas swaps: | ||||||||
Contract volumes (10,000 MMBTU) | ||||||||
Weighted average price differential per MMBTU | $ | $ | ||||||
Natural gas futures: | ||||||||
Contract volumes (10,000 MMBTU) | ||||||||
Weighted average contract price per MMBTU | $ | $ | ||||||
Crude oil options: | ||||||||
Contract volumes (1,000 bbls) | ||||||||
Weighted average premium received/paid | $ | $ |
Unaudited Condensed Consolidated Balance Sheets Location | Fair Value | ||||||||
March 31, 2020 | December 31, 2019 | ||||||||
Asset Derivatives: | |||||||||
Commodity derivatives - futures and call options (undesignated hedges): | |||||||||
Gross amount of recognized assets | Current Assets - Other | $ | $ | ||||||
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets | Current Assets - Other | ( | ) | ( | ) | ||||
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives | $ | $ | |||||||
Natural Gas Swap (undesignated hedge) | Current Assets - Other | ||||||||
Commodity derivatives - futures and call options (designated hedges): | |||||||||
Gross amount of recognized assets | Current Assets - Other | $ | $ | ||||||
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets | Current Assets - Other | ( | ) | ( | ) | ||||
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives | $ | $ | |||||||
Liability Derivatives: | |||||||||
Preferred Distribution Rate Reset Election (2) | Other long-term liabilities | ( | ) | ( | ) | ||||
Natural Gas Swap (undesignated hedge) | Current Liabilities - Accrued Liabilities | ( | ) | ||||||
Commodity derivatives - futures and call options (undesignated hedges): | |||||||||
Gross amount of recognized liabilities | Current Assets - Other (1) | $ | ( | ) | $ | ( | ) | ||
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets | Current Assets - Other (1) | ||||||||
Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives | $ | ( | ) | $ | ( | ) | |||
Commodity derivatives - futures and call options (designated hedges): | |||||||||
Gross amount of recognized liabilities | Current Assets - Other (1) | $ | ( | ) | $ | ( | ) | ||
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets | Current Assets - Other (1) | ||||||||
Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives | $ | $ |
(1) | These derivative liabilities have been funded with margin deposits recorded in our Unaudited Condensed Consolidated Balance Sheets under Current Assets - Other. |
Amount of Gain (Loss) Recognized in Income | |||||||||
Unaudited Condensed Consolidated Statements of Operations Location | Three Months Ended March 31, | ||||||||
2020 | 2019 | ||||||||
Commodity derivatives - futures and call options: | |||||||||
Contracts designated as hedges under accounting guidance | Onshore facilities and transportation product costs | $ | $ | ( | ) | ||||
Contracts not considered hedges under accounting guidance | Onshore facilities and transportation product costs, sodium minerals and sulfur services operating costs | ( | ) | ( | ) | ||||
Total commodity derivatives | $ | ( | ) | $ | ( | ) | |||
Natural Gas Swap Liability | Sodium minerals and sulfur services operating costs | $ | ( | ) | $ | ||||
Preferred Distribution Rate Reset Election | Other income (expense) | $ | $ | ( | ) |
(1) | Level 1 fair values are based on observable inputs such as quoted prices in active markets for identical assets and liabilities; |
(2) | Level 2 fair values are based on pricing inputs other than quoted prices in active markets for identical assets and liabilities and are either directly or indirectly observable as of the measurement date; and |
(3) | Level 3 fair values are based on unobservable inputs in which little or no market data exists. |
Fair Value at | Fair Value at | |||||||||||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Commodity derivatives: | ||||||||||||||||||||||||
Assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Liabilities | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||
Preferred Distribution Rate Reset Election | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) |
Three Months Ended March 31, | |||
2020 | |||
Balance as of December 31, 2019 | $ | ( | ) |
Unrealized gain for the period included in earnings | |||
Balance as of March 31, 2020 | $ | ( | ) |
• | Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Guarantor Summarized Financial Information |
• | Non-GAAP Financial Measures |
• | Commitments and Off-Balance Sheet Arrangements |
• | Forward Looking Statements |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Offshore pipeline transportation | $ | 85,246 | $ | 76,390 | |||
Sodium minerals and sulfur services | 36,941 | 58,639 | |||||
Onshore facilities and transportation | 28,099 | 25,603 | |||||
Marine transportation | 19,002 | 12,932 | |||||
Total Segment Margin | $ | 169,288 | $ | 173,564 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Total Segment Margin | $ | 169,288 | $ | 173,564 | |||
Corporate general and administrative expenses | (6,492 | ) | (11,100 | ) | |||
Depreciation, depletion, amortization and accretion | (75,978 | ) | (79,937 | ) | |||
Interest expense | (54,965 | ) | (55,701 | ) | |||
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (1) | (6,406 | ) | (4,828 | ) | |||
Other non-cash items (2) | 33,261 | (6,091 | ) | ||||
Cash payments from direct financing leases in excess of earnings | (2,238 | ) | (2,028 | ) | |||
Non-cash provision for leased items no longer in use | 130 | 190 | |||||
Differences in timing of cash receipts for certain contractual arrangements (3) | (4,490 | ) | 2,287 | ||||
Loss on debt extinguishment (4) | (23,480 | ) | — | ||||
Redeemable noncontrolling interest redemption value adjustments (5) | (4,086 | ) | — | ||||
Income tax benefit (expense) | 365 | (402 | ) | ||||
Net Income Attributable to Genesis Energy, L.P. | $ | 24,909 | $ | 15,954 |
(1) | Includes distributions attributable to the quarter and received during or promptly following such quarter. |
(2) | The 2020 Quarter includes a $32.5 million unrealized gain from the valuation of the embedded derivative associated with our Class A Convertible Preferred units and the 2019 Quarter includes a $3.0 million unrealized loss from the valuation of the embedded derivative. |
(3) | Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. |
(4) | Includes our transaction costs associated with the tender of $527.9 million and redemption of $222.1 million of our 2022 Notes in the first quarter of 2020, along with the write-off of our unamortized issuance costs and discount associated with these notes. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Offshore crude oil pipeline revenue, excluding non-cash revenues | $ | 69,581 | $ | 64,194 | |||
Offshore natural gas pipeline revenue, excluding non-cash revenues | 13,337 | 10,933 | |||||
Offshore pipeline operating costs, excluding non-cash expenses | (17,732 | ) | (16,079 | ) | |||
Distributions from equity investments (1) | 20,060 | 17,342 | |||||
Offshore pipeline transportation Segment Margin | $ | 85,246 | $ | 76,390 | |||
Volumetric Data 100% basis: | |||||||
Crude oil pipelines (average barrels/day unless otherwise noted): | |||||||
CHOPS | 242,182 | 241,754 | |||||
Poseidon | 279,181 | 253,469 | |||||
Odyssey | 149,440 | 151,877 | |||||
GOPL (3) | 7,249 | 8,337 | |||||
Total crude oil offshore pipelines | 678,052 | 655,437 | |||||
Natural gas transportation volumes (MMBtus/d) | 416,564 | 419,999 | |||||
Volumetric Data net to our ownership interest (2): | |||||||
Crude oil pipelines (average barrels/day unless otherwise noted): | |||||||
CHOPS | 242,182 | 241,754 | |||||
Poseidon | 178,676 | 162,220 | |||||
Odyssey | 43,338 | 44,044 | |||||
GOPL (3) | 7,249 | 8,337 | |||||
Total crude oil offshore pipelines | 471,445 | 456,355 | |||||
Natural gas transportation volumes (MMBtus/d) | 147,067 | 160,957 |
(1) | Offshore pipeline transportation Segment Margin includes distributions received from our offshore pipeline joint ventures accounted for under the equity method of accounting in 2020 and 2019, respectively. |
(2) | Volumes are the product of our effective ownership interest through the year, including changes in ownership interest, multiplied by the relevant throughput over the given year. |
(3) | One of our wholly-owned subsidiaries (GEL Offshore Pipeline, LLC, or "GOPL") owns our undivided interest in the Eugene Island pipeline system. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Volumes sold: | |||||||
NaHS volumes (Dry short tons "DST") | 30,082 | 35,743 | |||||
Soda Ash volumes (short tons sold) | 822,247 | 870,529 | |||||
NaOH (caustic soda) volumes (dry short tons sold) | 16,303 | 20,802 | |||||
Revenues (in thousands): | |||||||
NaHS revenues, excluding non-cash revenues | $ | 33,191 | $ | 42,948 | |||
NaOH (caustic soda) revenues | 7,441 | 11,813 | |||||
Revenues associated with Alkali Business | 176,236 | 203,330 | |||||
Other revenues | 643 | 1,616 | |||||
Total external segment revenues, excluding non-cash revenues(1) | $ | 217,511 | $ | 259,707 | |||
Segment Margin (in thousands) | $ | 36,941 | $ | 58,639 | |||
Average index price for NaOH per DST(2) | $ | 648 | $ | 717 |
• | facilitating the transportation of crude oil from producers to refineries and from owned and third party terminals to refiners via pipelines; |
• | transporting CO2 from natural and anthropogenic sources to crude oil fields owned by our customers; |
• | shipping crude oil and refined products to and from producers and refiners via trucks, pipelines, and railcars; |
• | Unloading railcars at our crude-by-rail terminals; |
• | storing and blending of crude oil and intermediate and finished refined products; |
• | purchasing/selling and/or transporting crude oil from the wellhead to markets for ultimate use in refining; and |
• | purchasing products from refiners, transporting those products to one of our terminals and blending those products to a quality that meets the requirements of our customers and selling those products (primarily fuel oil, asphalt and other heavy refined products) to wholesale markets. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Gathering, marketing, and logistics revenue | $ | 135,307 | $ | 191,531 | |||
Crude oil and CO2 pipeline tariffs and revenues from direct financing leases of CO2 pipelines | 19,861 | 17,095 | |||||
Payments received under direct financing leases not included in income | 2,238 | 2,028 | |||||
Crude oil and petroleum products costs, excluding unrealized gains and losses from derivative transactions | (111,494 | ) | (167,378 | ) | |||
Operating costs, excluding non-cash charges for long-term incentive compensation and other non-cash expenses | (18,493 | ) | (18,718 | ) | |||
Other | 680 | 1,045 | |||||
Segment Margin | $ | 28,099 | $ | 25,603 | |||
Volumetric Data (average barrels per day unless otherwise noted): | |||||||
Onshore crude oil pipelines: | |||||||
Texas | 84,499 | 42,981 | |||||
Jay | 10,013 | 11,483 | |||||
Mississippi | 6,409 | 5,916 | |||||
Louisiana (1) | 162,736 | 95,824 | |||||
Onshore crude oil pipelines total | 263,657 | 156,204 | |||||
CO2 pipeline (average Mcf/day): | |||||||
Free State | 134,834 | 105,991 | |||||
Crude oil and petroleum products sales: | |||||||
Total crude oil and petroleum products sales | 26,118 | 33,752 | |||||
Rail unload volumes | 94,040 | 85,090 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Revenues (in thousands): | |||||||
Inland freight revenues | $ | 27,572 | $ | 25,126 | |||
Offshore freight revenues | 21,091 | 18,300 | |||||
Other rebill revenues (1) | 13,683 | 13,224 | |||||
Total segment revenues | $ | 62,346 | $ | 56,650 | |||
Operating costs, excluding non-cash charges for long-term incentive compensation and other non-cash expenses | $ | 43,344 | $ | 43,718 | |||
Segment Margin (in thousands) | $ | 19,002 | $ | 12,932 | |||
Fleet Utilization: (2) | |||||||
Inland Barge Utilization | 93.4 | % | 96.6 | % | |||
Offshore Barge Utilization | 99.4 | % | 96.3 | % |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
General and administrative expenses not separately identified below: | |||||||
Corporate | $ | 10,793 | $ | 9,480 | |||
Segment | 1,065 | 1,159 | |||||
Long-term incentive compensation expense | (2,485 | ) | 930 | ||||
Third party costs related to business development activities and growth projects | — | 117 | |||||
Total general and administrative expenses | $ | 9,373 | $ | 11,686 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Depreciation and depletion expense | $ | 70,205 | $ | 72,991 | |||
Amortization expense | 4,152 | 4,289 | |||||
Amortization of CO2 volumetric production payments | — | 358 | |||||
Total depreciation, depletion and amortization expense | $ | 74,357 | $ | 77,638 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Interest expense, senior secured credit facility (including commitment fees) | $ | 10,745 | $ | 14,158 | |||
Interest expense, senior unsecured notes | 42,358 | 39,547 | |||||
Amortization of debt issuance costs and discount | 2,391 | 2,682 | |||||
Capitalized interest | (529 | ) | (686 | ) | |||
Net interest expense | $ | 54,965 | $ | 55,701 |
• | working capital, primarily inventories and trade receivables and payables; |
• | routine operating expenses; |
• | capital growth and maintenance projects; |
• | acquisitions of assets or businesses; |
• | payments related to servicing and reducing outstanding debt; and |
• | quarterly cash distributions to our preferred and common unitholders. |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Capital expenditures for fixed and intangible assets: | |||||||
Maintenance capital expenditures: | |||||||
Offshore pipeline transportation assets | $ | 768 | $ | 433 | |||
Sodium minerals and sulfur services assets | 4,575 | 8,048 | |||||
Marine transportation assets | 14,232 | 9,228 | |||||
Onshore facilities and transportation assets | 908 | 199 | |||||
Information technology systems | 75 | 141 | |||||
Total maintenance capital expenditures | 20,558 | 18,049 | |||||
Growth capital expenditures: | |||||||
Offshore pipeline transportation assets | 259 | 25 | |||||
Sodium minerals and sulfur services assets | 10,400 | 14,658 | |||||
Marine transportation assets | — | — | |||||
Onshore facilities and transportation assets | 249 | 576 | |||||
Information technology systems | 1,178 | — | |||||
Total growth capital expenditures | 12,086 | 15,259 | |||||
Total capital expenditures for fixed and intangible assets | 32,644 | 33,308 | |||||
Total capital expenditures | $ | 32,644 | $ | 33,308 |
Balance Sheets | Genesis Energy, L.P. and Guarantor Subsidiaries | ||||||
March 31, 2020 | December 31, 2019 | ||||||
ASSETS: | |||||||
Current assets | $ | 251,305 | $ | 323,492 | |||
Fixed assets, net | 3,504,222 | 3,538,450 | |||||
Non-current assets | 923,194 | 951,276 | |||||
LIABILITIES AND CAPITAL:(1) | |||||||
Current liabilities | 230,092 | 292,941 | |||||
Non-current liabilities | 3,721,378 | 3,738,816 | |||||
Class A Convertible Preferred Units | 790,115 | 790,115 |
Statements of Operations | Genesis Energy, L.P. and Guarantor Subsidiaries | ||||||
Three Months Ended March 31, 2020 | Twelve Months Ended December 31. 2019 | ||||||
Revenues | $ | 357,658 | $ | 1,617,170 | |||
Operating costs | 305,712 | 1,454,040 | |||||
Operating income | 51,946 | 163,130 | |||||
Income before income taxes | 24,907 | 566 | |||||
Net income (loss) (1) | 25,273 | (122 | ) | ||||
Less: Accumulated distributions to Class A Convertible Preferred Units | (18,684 | ) | (74,467 | ) | |||
Net income (loss) available to common unitholders | 6,589 | (74,589 | ) |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Net income attributable to Genesis Energy, L.P. | $ | 24,909 | $ | 15,954 | |||
Income tax (benefit) expense | (365 | ) | 402 | ||||
Depreciation, depletion, amortization and accretion | 75,978 | 79,937 | |||||
Plus (minus) Select Items, net | 4,806 | 12,016 | |||||
Maintenance capital utilized (1) | (8,800 | ) | (6,125 | ) | |||
Cash tax expense | (150 | ) | (150 | ) | |||
Distributions to preferred unitholders | (18,684 | ) | (6,138 | ) | |||
Redeemable noncontrolling interest redemption value adjustments (2) | 4,086 | — | |||||
Available Cash before Reserves | $ | 81,780 | $ | 95,896 |
(1) | For a description of the term "maintenance capital utilized", please see the definition of the term "Available Cash before Reserves" discussed below. Maintenance capital expenditures in the 2020 Quarter and 2019 Quarter were $20.6 million and $18.0 million, respectively. |
(2) | Includes PIK distributions attributable to the period and accretion on the redemption feature. |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
I. | Applicable to all Non-GAAP Measures | |||||||
Differences in timing of cash receipts for certain contractual arrangements (1) | $ | 4,490 | $ | (2,287 | ) | |||
Adjustment regarding direct financing leases (2) | 2,238 | 2,028 | ||||||
Certain non-cash items: | ||||||||
Unrealized (gains) losses on derivative transactions excluding fair value hedges, net of changes in inventory value (3) | (31,002 | ) | 3,865 | |||||
Loss on debt extinguishment (4) | 23,480 | — | ||||||
Adjustment regarding equity investees (5) | 6,406 | 4,828 | ||||||
Other | (2,259 | ) | 2,161 | |||||
Sub-total Select Items, net (6) | 3,353 | 10,595 | ||||||
II. | Applicable only to Available Cash before Reserves | |||||||
Certain transaction costs (7) | — | 117 | ||||||
Equity compensation adjustments | — | (137 | ) | |||||
Other | 1,453 | 1,441 | ||||||
Total Select Items, net (8) | $ | 4,806 | $ | 12,016 |
(1) | the financial performance of our assets; |
(2) | our operating performance; |
(3) | the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry; |
(4) | the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and |
(5) | our ability to make certain discretionary payments, such as distributions on our preferred and common units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness. |
• | demand for, the supply of, our assumptions about, changes in forecast data for, and price trends related to crude oil, liquid petroleum, natural gas, NaHS, soda ash, caustic soda and CO2, all of which may be affected by economic activity, capital expenditures by energy producers, weather, alternative energy sources, |
• | our ability to successfully execute our business and financial strategies; |
• | the realized benefits of the preferred equity investment in Alkali Holdings by GSO or our ability to comply with the GOP agreements and maintain control over and ownership of the Alkali Business; |
• | throughput levels and rates; |
• | changes in, or challenges to, our tariff rates; |
• | our ability to successfully identify and close strategic acquisitions on acceptable terms (including obtaining third-party consents and waivers of preferential rights), develop or construct infrastructure assets, make cost saving changes in operations and integrate acquired assets or businesses into our existing operations; |
• | service interruptions in our pipeline transportation systems, processing operations, or mining facilities; |
• | shutdowns or cutbacks at refineries, petrochemical plants, utilities, individual plants, or other businesses for which we transport crude oil, petroleum, natural gas or other products or to whom we sell soda ash, petroleum, or other products; |
• | risks inherent in marine transportation and vessel operation, including accidents and discharge of pollutants; |
• | changes in laws and regulations to which we are subject, including tax withholding issues, regulations regarding qualifying income, accounting pronouncements, and safety, environmental and employment laws and regulations; |
• | the effects of production declines resulting from a suspension of drilling in the Gulf of Mexico or otherwise; |
• | the effects of future laws and regulations; |
• | planned capital expenditures and availability of capital resources to fund capital expenditures, and our ability to access the credit and capital markets to obtain financing on terms we deem acceptable; |
• | our inability to borrow or otherwise access funds needed for operations, expansions or capital expenditures as a result of our credit agreement and the indentures governing our notes, which contain various affirmative and negative covenants; |
• | loss of key personnel; |
• | cash from operations that we generate could decrease or fail to meet expectations, either of which could reduce our ability to pay quarterly cash distributions at the current level or to increase quarterly cash distributions in the future; |
• | an increase in the competition that our operations encounter; |
• | cost and availability of insurance; |
• | hazards and operating risks that may not be covered fully by insurance; |
• | our financial and commodity hedging arrangements, which may reduce our earnings, profitability and cash flow; |
• | changes in global economic conditions, including capital and credit markets conditions, inflation and interest rates; |
• | the impact of natural disasters, pandemics (including COVID-19), epidemics, accidents or terrorism, and actions taken by governmental authorities and other third parties in response thereto, on our business financial condition and results of operations; |
• | changes in the financial condition of customers or counterparties; |
• | adverse rulings, judgments, or settlements in litigation or other legal or tax matters; |
• | the treatment of us as a corporation for federal income tax purposes or if we become subject to entity-level taxation for state tax purposes; |
• | the potential that our internal controls may not be adequate, weaknesses may be discovered or remediation of any identified weaknesses may not be successful and the impact these could have on our unit price; and |
• | a cyberattack involving our information systems and related infrastructure, or that of our business associates. |
3.1 | Certificate of Limited Partnership of Genesis Energy, L.P. (incorporated by reference to Exhibit 3.1 to Amendment No. 2 of the Registration Statement on Form S-1, File No. 333-11545). | ||
3.2 | |||
3.3 | |||
3.4 | |||
3.5 | |||
3.6 | |||
3.7 | |||
3.8 | |||
3.9 | |||
3.10 | |||
4.1 | |||
4.2 | |||
* | 10.1 | ||
* | 22.1 | ||
* | 31.1 | ||
* | 31.2 | ||
* | 32 | ||
* | 95 | ||
101.INS | XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
101.SCH | XBRL Schema Document. | ||
101.CAL | XBRL Calculation Linkbase Document. | ||
101.LAB | XBRL Label Linkbase Document. | ||
101.PRE | XBRL Presentation Linkbase Document. | ||
101.DEF | XBRL Definition Linkbase Document. | ||
104 | Cover Page Interactive Data File (formatted as Inline XBRL). |
* | Filed herewith |
GENESIS ENERGY, L.P. (A Delaware Limited Partnership) | ||
By: | GENESIS ENERGY, LLC, as General Partner |
Date: | May 6, 2020 | By: | /s/ ROBERT V. DEERE |
Robert V. Deere | |||
Chief Financial Officer | |||
(Duly Authorized Officer) |
SECTION 1. | Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement. Unless otherwise indicated, all article, schedule, exhibit and section references in this Tenth Amendment refer to articles, schedules, exhibits and sections of the Tenth Amendment. |
(b) | Section 1.01 of the Credit Agreement is hereby amended by amending and restating the definition of “LIBOR Rate” as follows: |
(c) | Section 5.08 of the Credit Agreement is hereby amended and restated in its entirety as follows: |
(d) | Section 6.04(c) of the Credit Agreement is hereby amended and restated in its entirety as follows: |
(e) | Section 6.14(b) of the Credit Agreement is hereby amended and restated in its entirety as follows: |
(f) | Section 6.17 of the Credit Agreement is hereby amended and restated in its entirety as follows: |
(a) | The Administrative Agent shall have received from the Required Lenders and the Borrower executed counterparts (in such number as may be requested by the Administrative Agent) of this Tenth Amendment. |
(b) | The Administrative Agent, the Arrangers and the Lenders shall have received all fees and other amounts due and payable on or prior to the Tenth Amendment Effective Date, including to the extent invoiced, reimbursement or payment of all out of pocket |
(c) | After giving effect to the Tenth Amendment, (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower shall be in compliance on a Pro Forma Basis with Section 6.14 of the Credit Agreement. |
(d) | The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may reasonably request. |
SECTION 4. | Miscellaneous. |
BORROWER: |
GENESIS ENERGY, L.P., | |
By: GENESIS ENERGY, LLC, its general partner |
By: | /s/ Robert V. Deere |
Name: Robert V. Deere |
Title: Chief Financial Officer |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Issuing Bank and a Lender |
By: /s/ Andrew Ostrov |
Name: Andrew Ostrov |
Title: Director |
BMO Harris Financing, Inc., as a Lender |
By: /s/ Kevin Utsey |
Name: Kevin Utsey |
Title: Managing Director |
ABN AMRO Capital USA LLC, as a Lender |
By: /s/ David Montgomery |
Name: David Montgomery |
Title: Managing Director |
By: /s/ Darrell Holley |
Name: Darrell Holley |
Title: Managing Director |
BNP Paribas, as a Lender |
By: /s/ Joseph Onischuk |
Name: Joseph Onischuk |
Title: Managing Director |
By: /s/ Nicholas Anberree |
Name: Nicholas Anberree |
Title: Vice President |
Sumitomo Mitsui Banking Corporation, as a Lender |
By: /s/ Michael Maguire |
Name: Michael Maguire |
Title: Managing Director |
BANK OF AMERICA, N.A., as a Lender |
By: /s/ Pace Doherty |
Name: Pace Doherty |
Title: Vice President |
Royal Bank of Canada, as a Lender |
By: /s/ Katy Berkemeyer |
Name: Katy Berkemeyer |
Title: Authorized Signatory |
BBVA USA, as a Lender |
By: /s/ Mark H. Wolf |
Name: Mark H. Wolf |
Title: Senior Vice President |
REGIONS BANK, as a Lender |
By: /s/ David C. Valentine |
Name: David C. Valentine |
Title: Managing Director |
Cadence Bank, N.A., as a Lender |
By: /s/ David Anderson |
Name: David Anderson |
Title: Senior Vice President |
Zions Bancorporation, N.A. dba Amegy Bank, as a Lender |
By: /s/ Sam Trail |
Name: Sam Trail |
Title: Senior Vice President |
TRUSTMARK NATIONAL BANK, as a Lender |
By: /s/ Jeff Deutsch |
Name: Jeff Deutsch |
Title: Senior Vice President |
ENTITY | JURISDICTION OF ORGANIZATION | GENESIS ENERGY, L.P. SENIOR UNSECURED NOTES | ||
GENESIS ENERGY, L.P. | DELAWARE | CO-ISSUER | ||
GENESIS ENERGY FINANCE CORPORATION | DELAWARE | CO-ISSUER | ||
AP MARINE, LLC | DELAWARE | GUARANTOR | ||
BR PORT SERVICES, LLC | DELAWARE | GUARANTOR | ||
CAMERON HIGHWAY OIL PIPELINE COMPANY, LLC | DELAWARE | GUARANTOR | ||
CAMERON HIGHWAY PIPELINE GP, L.L.C. | DELAWARE | GUARANTOR | ||
CAMERON HIGHWAY PIPELINE I, L.P. | DELAWARE | GUARANTOR | ||
CASPER EXPRESS PIPELINE, LLC | DELAWARE | GUARANTOR | ||
DAVISON PETROLEUM SUPPLY, LLC | DELAWARE | GUARANTOR | ||
DAVISON TRANSPORTATION SERVICES, INC. | DELAWARE | GUARANTOR | ||
DAVISON TRANSPORTATION SERVICES, LLC | DELAWARE | GUARANTOR | ||
DEEPWATER GATEWAY, L.L.C. | DELAWARE | GUARANTOR | ||
FLEXTREND DEVELOPMENT COMPANY, L.L.C. | DELAWARE | GUARANTOR | ||
GEL CHOPS GP, LLC | DELAWARE | GUARANTOR | ||
GEL CHOPS I, L.P. | DELAWARE | GUARANTOR | ||
GEL CHOPS II, L.P. | DELAWARE | GUARANTOR | ||
GEL DEEPWATER, LLC | DELAWARE | GUARANTOR | ||
GEL IHUB, LLC | DELAWARE | GUARANTOR | ||
GEL LOUISIANA FUELS, LLC | DELAWARE | GUARANTOR | ||
GEL ODYSSEY, LLC | DELAWARE | GUARANTOR | ||
GEL OFFSHORE PIPELINE, LLC | DELAWARE | GUARANTOR | ||
GEL OFFSHORE, LLC | DELAWARE | GUARANTOR | ||
GEL PIPELINE OFFSHORE, LLC | DELAWARE | GUARANTOR | ||
GEL POSEIDON, LLC | DELAWARE | GUARANTOR | ||
GEL PALOMA, LLC | DELAWARE | GUARANTOR | ||
GEL SEKCO, LLC | DELAWARE | GUARANTOR | ||
GEL TEX MARKETING, LLC | DELAWARE | GUARANTOR | ||
GEL TEXAS PIPELINE, LLC | DELAWARE | GUARANTOR | ||
GEL WYOMING, LLC | DELAWARE | GUARANTOR | ||
GENESIS BR, LLC | DELAWARE | GUARANTOR | ||
GENESIS CHOPS I, LLC | DELAWARE | GUARANTOR | ||
GENESIS CHOPS II, LLC | DELAWARE | GUARANTOR | ||
GENESIS CRUDE OIL, L.P. | DELAWARE | GUARANTOR | ||
GENESIS DAVISON, LLC | DELAWARE | GUARANTOR | ||
GENESIS DEEPWATER HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
GENESIS ENERGY, LLC | DELAWARE | GUARANTOR | ||
GENESIS FREE STATE HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
GENESIS GTM OFFSHORE OPERATING COMPANY, LLC | DELAWARE | GUARANTOR | ||
GENESIS IHUB HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
GENESIS MARINE, LLC | DELAWARE | GUARANTOR | ||
GENESIS NEJD HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
ENTITY | JURISDICTION OF ORGANIZATION | |||
GENESIS ODYSSEY, LLC | DELAWARE | GUARANTOR | ||
GENESIS OFFSHORE HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
GENESIS OFFSHORE, LLC | DELAWARE | GUARANTOR | ||
GENESIS PIPELINE ALABAMA, LLC | ALABAMA | GUARANTOR | ||
GENESIS PIPELINE TEXAS, L.P. | DELAWARE | GUARANTOR | ||
GENESIS PIPELINE USA, L.P. | DELAWARE | GUARANTOR | ||
GENESIS POSEIDON HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
GENESIS POSEIDON, LLC | DELAWARE | GUARANTOR | ||
GENESIS RAIL SERVICES, LLC | DELAWARE | GUARANTOR | ||
GENESIS SAILFISH HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
GENESIS SEKCO, LLC | DELAWARE | GUARANTOR | ||
GENESIS SMR HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
GENESIS SYNGAS INVESTMENTS, L.P. | DELAWARE | GUARANTOR | ||
GENESIS TEXAS CITY TERMINAL, LLC | DELAWARE | GUARANTOR | ||
HIGH ISLAND OFFSHORE SYSTEM, L.L.C. | DELAWARE | GUARANTOR | ||
MANTA RAY GATHERING COMPANY, L.L.C. | TEXAS | GUARANTOR | ||
MATAGORDA OFFSHORE, LLC | TEXAS | GUARANTOR | ||
MILAM SERVICES, INC. | DELAWARE | GUARANTOR | ||
POSEIDON PIPELINE COMPANY, L.L.C. | DELAWARE | GUARANTOR | ||
RED RIVER TERMINALS, L.L.C. | LOUISIANA | GUARANTOR | ||
SAILFISH PIPELINE COMPANY, L.L.C. | DELAWARE | GUARANTOR | ||
SEAHAWK SHORELINE SYSTEM, LLC | TEXAS | GUARANTOR | ||
SOUTHEAST KEATHLEY CANYON PIPELINE COMPANY, LLC | DELAWARE | GUARANTOR | ||
TDC SERVICES, LLC | DELAWARE | GUARANTOR | ||
TDC, L.L.C. | LOUISIANA | GUARANTOR | ||
TEXAS CITY CRUDE OIL TERMINAL, LLC | DELAWARE | GUARANTOR | ||
THUNDER BASIN HOLDINGS, LLC | DELAWARE | GUARANTOR | ||
1. | I have reviewed this quarterly report on Form 10-Q of Genesis Energy, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation, and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors: |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 6, 2020 | /s/ Grant E. Sims |
Grant E. Sims | ||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Genesis Energy, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation, and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors: |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 6, 2020 | /s/ Robert V. Deere |
Robert V. Deere | ||
Chief Financial Officer |
(1) | the Partnership’s Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
May 6, 2020 | /s/ Grant E. Sims |
Grant E. Sims | |
Chief Executive Officer, | |
Genesis Energy, LLC | |
May 6, 2020 | /s/ Robert V. Deere |
Robert V. Deere | |
Chief Financial Officer, | |
Genesis Energy, LLC |
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | (I) | (J) | (K) | (L) | |
Mine or Operating Name/ MSHA Identification Number | Section 104 S&S Citations (#) | Section 104(b) Orders (#) | Section 104(d) Citations and Orders (#) | Section 110(b)(2) Violations (#) | Section 107(a) Orders (#) | Total Dollar Value of MSHA Assessment Proposed ($) | Total Number of Mining Related Fatalities (#) | Received Notice of Pattern of Violations Under Section 104(e) (yes/no) | Received Notice of Potential to Have Pattern Under Section 104(e) (yes/no) | Legal Actions Pending as of Last Day of Period (#) | Legal Actions Initiated During Period (#) | Legal Actions Resolved During Period (#) |
Genesis-Alkali at Westvaco MSHA I.D. No.: 48-00152 | 20 | 0 | 0 | 0 | 0 | $26,980 | 0 | No | No | 2 | 0 | 0 |
(A) | The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety and health hazard under section 104 of the Mine Act for which the operator received a citation from MSHA. |
(B) | The total number of orders issued under section 104(b) of the Mine Act. |
(C) | The total number of citations and orders for unwarrantable failure of the operator to comply with mandatory health or safety standards under section 104(d) of the Mine Act. |
(D) | The total number of flagrant violations under section 110(b)(2) of the Mine Act. |
(E) | The total number of imminent danger orders issued under section 107(a) of the Mine Act. |
(F) | The total dollar value of proposed assessments from the MSHA under the Mine Act. Only includes assessments proposed for citations issued in first quarter 2020. |
(G) | The total number of mining related fatalities. |
(H) | During the quarter ending March 31, 2020, the mine did not receive Notice of Pattern of Violations under Section 104(e) |
(I) | During the quarter ending March 31, 2020, the mine did not receive Notice of a Potential to have a Pattern of Violations Under Section 104(e) |
(J) | Includes all legal actions before the Federal Mine Safety and Review Commission, together with the Administrative Law Judges thereof, for our operations. |
(K) | The total number of legal actions were initiated by us to contest citations, orders or proposed assessments issued by the federal Mine Safety and Health Administration during first quarter 2020. |
(L) | Previously initiated legal action to contest citations, orders or proposed assessments issued by the federal Mine Safety and Health Administration, which if successful, could result in the reduction or dismissal of those citations, orders or assessments, resolved during the period. |
Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information We currently manage our businesses through four divisions that constitute our reportable segments:
Substantially all of our revenues are derived from, and substantially all of our assets are located in, the United States. We define Segment Margin as revenues less product costs, operating expenses (excluding non-cash gains and charges, such as depreciation, depletion and amortization), and segment general and administrative expenses, plus our equity in distributable cash generated by our equity investees. In addition, our Segment Margin definition excludes the non-cash effects of our long-term incentive compensation plan and includes the non-income portion of payments received under direct financing leases. Our chief operating decision maker (our Chief Executive Officer) evaluates segment performance based on a variety of measures including Segment Margin, segment volumes, where relevant, and capital investment. Segment information for the periods presented below was as follows:
Total assets by reportable segment were as follows:
Reconciliation of total Segment Margin to net income attributable to Genesis Energy, L.P:
(5) Includes PIK distributions attributable to the period and accretion on the redemption feature.
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Common units issued (in units) | 122,579,218 | 122,579,218 |
Common units outstanding (in units) | 122,579,218 | 122,579,218 |
Class A Convertible Preferred Stock Units | ||
Number preferred units issued (in units) | 25,336,778 | 25,336,778 |
Number of preferred units outstanding (in units) | 25,336,778 | 25,336,778 |
Redeemable Noncontrolling Interest Preferred Units | ||
Number preferred units issued (in units) | 130,000,000 | 130,000,000 |
Number of preferred units outstanding (in units) | 130,000,000 | 130,000,000 |
Lease Accounting |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Accounting | Lease Accounting Lessee Arrangements We lease a variety of transportation equipment (including trucks, trailers, and railcars), terminals, land and facilities, and office space and equipment. Lease terms vary and can range from short term (under 12 months) to long term (greater than 12 months). A majority of our leases contain options to extend the life of the lease at our sole discretion. We considered these options when determining the lease terms used to derive our right of use asset and associated lease liability. Leases with a term of less than 12 months are not recorded on our Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term. Our Right of Use Assets, net balance includes our unamortized initial direct costs associated with certain of our transportation equipment leases. Additionally, it includes our unamortized prepaid rents, our deferred rents, and our previously classified intangible asset associated with a favorable lease. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use. Lessor Arrangements We have the following contracts in which we act as a lessor. We also, from time to time, sublease certain of our transportation and facilities equipment to third parties. Operating Leases We act as a lessor in our revenue contracts associated with the M/T American Phoenix, within the marine transportation segment, and on our Free State pipeline system, included in our onshore facilities and transportation segment. These revenues are recorded within its respective segment's revenues in the Unaudited Condensed Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
Direct Finance Lease Our direct finance lease includes a lease of the Northeast Jackson Dome ("NEJD") Pipeline. Under the terms of the agreement, we are paid a quarterly payment, which commenced in August 2008. These payments are fixed at approximately $5.2 million per quarter during the lease term at an interest rate of 10.25%. At the end of the lease term in 2028, we will convey all of our interest in the NEJD Pipeline to the lessee for a nominal payment. The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 2020:
The present value of our lease receivables for our direct finance lease includes a current portion of $9.5 million, which is recorded in other current assets on the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2020.
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Lease Accounting | Lease Accounting Lessee Arrangements We lease a variety of transportation equipment (including trucks, trailers, and railcars), terminals, land and facilities, and office space and equipment. Lease terms vary and can range from short term (under 12 months) to long term (greater than 12 months). A majority of our leases contain options to extend the life of the lease at our sole discretion. We considered these options when determining the lease terms used to derive our right of use asset and associated lease liability. Leases with a term of less than 12 months are not recorded on our Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term. Our Right of Use Assets, net balance includes our unamortized initial direct costs associated with certain of our transportation equipment leases. Additionally, it includes our unamortized prepaid rents, our deferred rents, and our previously classified intangible asset associated with a favorable lease. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use. Lessor Arrangements We have the following contracts in which we act as a lessor. We also, from time to time, sublease certain of our transportation and facilities equipment to third parties. Operating Leases We act as a lessor in our revenue contracts associated with the M/T American Phoenix, within the marine transportation segment, and on our Free State pipeline system, included in our onshore facilities and transportation segment. These revenues are recorded within its respective segment's revenues in the Unaudited Condensed Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
Direct Finance Lease Our direct finance lease includes a lease of the Northeast Jackson Dome ("NEJD") Pipeline. Under the terms of the agreement, we are paid a quarterly payment, which commenced in August 2008. These payments are fixed at approximately $5.2 million per quarter during the lease term at an interest rate of 10.25%. At the end of the lease term in 2028, we will convey all of our interest in the NEJD Pipeline to the lessee for a nominal payment. The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 2020:
The present value of our lease receivables for our direct finance lease includes a current portion of $9.5 million, which is recorded in other current assets on the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2020.
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Intangible Assets |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets The following table summarizes the components of our intangible assets at the dates indicated:
Our amortization of intangible assets for the periods presented was as follows:
We estimate that our amortization expense for the next five years will be as follows:
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Transactions with Related Parties (Tables) |
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Schedule Of Transactions with Related Parties | Receivables from and payables to ANSAC as of March 31, 2020 and December 31, 2019 are as follows:
The transactions with related parties were as follows:
(1) We own 64% interest in Poseidon
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Obligations Under Debt Arrangements | Our obligations under debt arrangements consisted of the following:
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Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Narrative) (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Asset Retirement Obligations Details [Line Items] | ||
Asset retirement obligation balance | $ 169,528 | $ 175,081 |
Accrued Liabilities | ||
Asset Retirement Obligations Details [Line Items] | ||
Asset retirement obligation balance | $ 13,800 | $ 26,600 |
Equity Investees (Schedule of Balance Sheet Information for Equity Investees) (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets | ||
Current assets | $ 496,880 | $ 593,074 |
Fixed assets, net | 4,256,491 | 4,294,475 |
Total assets | 6,434,458 | 6,597,641 |
LIABILITIES AND CAPITAL | ||
Current liabilities | 324,809 | 415,495 |
Total liabilities and equity | 6,434,458 | 6,597,641 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Poseidon | ||
Assets | ||
Current assets | 20,112 | 30,307 |
Fixed assets, net | 183,268 | 187,091 |
Other assets | 2,014 | 2,113 |
Total assets | 205,394 | 219,511 |
LIABILITIES AND CAPITAL | ||
Current liabilities | 15,135 | 15,558 |
Other liabilities | 236,659 | 245,976 |
Equity | (46,400) | (42,023) |
Total liabilities and equity | $ 205,394 | $ 219,511 |
Transactions with Related Parties (Schedule of Transactions with Related Parties) (Details) - Affiliated Entity - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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CEO | ||
Related Party Transaction [Line Items] | ||
Costs and expenses | $ 165 | $ 165 |
Poseidon | ||
Related Party Transaction [Line Items] | ||
Revenues | 3,147 | 3,165 |
Costs and expenses | $ 254 | 247 |
Equity method investment, ownership percentage | 64.00% | |
ANSAC | ||
Related Party Transaction [Line Items] | ||
Revenues | $ 73,079 | 90,679 |
Costs and expenses | $ 832 | $ 1,057 |
Fair-Value Measurements (Reconciliation of Changes in Derivatives Classified as Level 3) (Details) - Level 3 $ in Thousands |
3 Months Ended |
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Mar. 31, 2020
USD ($)
| |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance as of December 31, 2019 | $ (51,515) |
Unrealized gain for the period included in earnings | 32,545 |
Balance as of March 31, 2020 | $ (18,970) |
Business Segment Information (Narrative) (Details) |
3 Months Ended |
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Mar. 31, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Supplemental Cash Flow Information (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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Supplemental Cash Flow Elements [Abstract] | ||
Payments of interest and commitment fees | $ 33.7 | $ 39.5 |
Interest paid, capitalized | 0.5 | 0.7 |
Incurred liabilities for fixed and intangible asset additions | $ 17.2 | $ 13.1 |
Lease Accounting (Maturity of Lessor Receipts) (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
|
---|---|
Direct Financing Lease | |
Total Net Lease Receipts | $ 9,500 |
Marine Transportation | |
Operating Leases | |
Remainder of 2020 | 13,394 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Lease Receipts | 13,394 |
Onshore Facilities & Transportation | |
Operating Leases | |
Remainder of 2020 | 900 |
2021 | 1,200 |
2022 | 1,200 |
2023 | 1,200 |
2024 | 1,200 |
Thereafter | 4,100 |
Total Lease Receipts | 9,800 |
Direct Financing Lease | |
Remainder of 2020 | 15,501 |
2021 | 20,668 |
2022 | 20,668 |
2023 | 20,668 |
2024 | 20,668 |
Thereafter | 72,336 |
Total Lease Receipts | 170,509 |
Less: Interest | (55,733) |
Total Net Lease Receipts | $ 114,776 |
Revenue Recognition (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Revenue Recognition [Abstract] | ||
Contract Assets, Current | $ 33,672 | $ 21,912 |
Contract Assets, Non-Current | 37,277 | 54,232 |
Contract Liability, Current | 2,983 | 2,896 |
Contract Liabilities, Non-Current | $ 22,376 | $ 23,170 |
Net Income (Loss) Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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Earnings Per Share Reconciliation [Abstract] | ||
Net Income (loss) Attributable to Genesis Energy L.P. | $ 24,909 | $ 15,954 |
Less: Accumulated distributions attributable to Class A Convertible Preferred Units | (18,684) | (18,415) |
Net Income (Loss) Available to Common Unitholders | $ 6,225 | $ (2,461) |
Weighted Average Outstanding Units (in shares) | 122,579,000 | 122,579,000 |
Basic and Diluted Net Loss per Common Unit (in dollars per unit) | $ 0.05 | $ (0.02) |
Class A Convertible Preferred Stock Units | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities not included in computation of dilutive earnings (in shares) | 25,336,778 |
Partners' Capital, Mezzanine Capital and Distributions (Distributions Paid-in-kind) (Details) - Class A Convertible Preferred Stock Units $ in Thousands |
May 15, 2019
USD ($)
shares
|
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Temporary Equity [Line Items] | |
Date Issued | May 15, 2019 |
Number of Units (in units) | shares | 364,180 |
Total Amount | $ | $ 12,277 |
Fair-Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair-Value Measurements | Fair-Value Measurements We classify financial assets and liabilities into the following three levels based on the inputs used to measure fair value:
As required by fair value accounting guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value requires judgment and may affect the placement of assets and liabilities within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2020 and December 31, 2019.
Rollforward of Level 3 Fair Value Measurements The following table provides a reconciliation of changes in fair value at the beginning and ending balances for our derivatives classified as level 3:
Our commodity derivatives include exchange-traded futures and exchange-traded options contracts. The fair value of these exchange-traded derivative contracts is based on unadjusted quoted prices in active markets and is, therefore, included in Level 1 of the fair value hierarchy. The fair value of the swaps contracts was determined using market price quotations and a pricing model. The swap contracts were considered a level 2 input in the fair value hierarchy at March 31, 2020. The fair value of the embedded derivative feature is based on a valuation model that estimates the fair value of our Class A Convertible Preferred Units with and without a Rate Reset Election. This model contains inputs, including our common unit price relative to the issuance price, the current dividend yield, credit spread, default probabilities, equity volatility and timing estimates which involve management judgment. Our equity volatility rate used to value our embedded derivative feature was 50% at March 31, 2020. A significant increase or decrease in the value of these inputs could result in a material change in fair value to this embedded derivative feature. During the 2020 Quarter, we recorded an unrealized gain of $32.5 million in Other income (expense) on the Unaudited Condensed Consolidated Statements of Operations due to the significant changes in the energy industry credit markets and our common unit price during the period. Other Fair Value Measurements We believe the debt outstanding under our credit facility approximates fair value as the stated rate of interest approximates current market rates of interest for similar instruments with comparable maturities. At March 31, 2020 our senior unsecured notes had a carrying value of $2.5 billion and fair value of $1.8 billion compared to a carrying value and fair value of $2.5 billion at December 31, 2019. The fair value of the senior unsecured notes is determined based on trade information in the financial markets of our public debt and is considered a Level 2 fair value measurement.
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Lease Accounting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Revenues for Operating Leases | Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
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Schedule of Fixed Operating Lease Payments to be Received by Lessor Arrangement | The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 2020:
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Schedule of Fixed Direct Lease Payments to be Received by Lessor Arrangement | The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 2020:
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Inventories (Major Components of Inventories) (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Petroleum products | $ 3,645 | $ 2,721 |
Crude oil | 3,133 | 5,271 |
Caustic soda | 5,821 | 5,965 |
NaHS | 13,473 | 10,845 |
Raw materials - Alkali operations | 5,999 | 6,238 |
Work-in-process - Alkali operations | 8,399 | 8,579 |
Finished goods, net - Alkali operations | 17,779 | 14,168 |
Materials and supplies, net - Alkali operations | 11,912 | 11,350 |
Total | $ 70,161 | $ 65,137 |
Intangible Assets (Schedule of Current and Future Amortization Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Amortization of intangible assets | $ 4,116 | $ 4,289 |
Remainder of 2020 | 11,563 | |
2021 | 10,576 | |
2022 | 10,416 | |
2023 | 10,147 | |
2024 | $ 9,823 |
Partners' Capital, Mezzanine Capital and Distributions (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
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Temporary Equity [Line Items] | |||
Common units outstanding (in units) | 122,579,218 | 122,579,218 | |
Preferred units, accumulated distributions | $ 18,684 | $ 18,415 | |
Common Class A | Partners’ Capital | |||
Temporary Equity [Line Items] | |||
Common units outstanding (in units) | 122,539,221 | ||
Common Class B | Partners’ Capital | |||
Temporary Equity [Line Items] | |||
Common units outstanding (in units) | 39,997 | ||
Class A Convertible Preferred Stock Units | |||
Temporary Equity [Line Items] | |||
Number of preferred units outstanding (in units) | 25,336,778 | 25,336,778 | |
Preferred units, accumulated distributions | $ 18,700 | $ 18,400 |
Partners' Capital, Mezzanine Capital and Distributions (Changes in Redeemable Noncontrolling Interests) (Details) $ in Thousands |
3 Months Ended |
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Mar. 31, 2020
USD ($)
| |
Redeemable Noncontrolling Interest, Equity [Roll Forward] | |
Balance as of December 31, 2019 | $ 125,133 |
PIK distributions | 3,294 |
Redemption accretion | 792 |
Balance as of March 31, 2020 | $ 129,219 |
Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Commodity Derivatives We have exposure to commodity price changes related to our inventory and purchase commitments. We utilize derivative instruments (primarily futures and options contracts traded on the NYMEX) to hedge our exposure to commodity prices, primarily of crude oil, fuel oil and petroleum products. Our decision as whether to designate derivative instruments as fair value hedges for accounting purposes relates to our expectations of the length of time we expect to have the commodity price exposure and our expectations as to whether the derivative contract will qualify as highly effective under accounting guidance in limiting our exposure to commodity price risk. Most of the petroleum products, including fuel oil that we supply, cannot be hedged with a high degree of effectiveness with derivative contracts available on the NYMEX; therefore, we do not designate derivative contracts utilized to limit our price risk related to these products as hedges for accounting purposes. Typically we utilize crude oil and other petroleum products futures and option contracts to limit our exposure to the effect of fluctuations in petroleum products prices on the future sale of our inventory or commitments to purchase petroleum products, and we recognize any changes in fair value of the derivative contracts as increases or decreases in our cost of sales. The recognition of changes in fair value of the derivative contracts not designated as hedges for accounting purposes can occur in reporting periods that do not coincide with the recognition of gain or loss on the actual transaction being hedged. Therefore we will, on occasion, report gains or losses in one period that will be partially offset by gains or losses in a future period when the hedged transaction is completed. We have designated certain crude oil futures contracts as hedges of crude oil inventory due to our expectation that these contracts will be highly effective in hedging our exposure to fluctuations in crude oil prices during the period that we expect to hold that inventory. We account for these derivative instruments as fair value hedges under the accounting guidance. Changes in the fair value of these derivative instruments designated as fair value hedges are used to offset related changes in the fair value of the hedged crude oil inventory. Any hedge ineffectiveness in these fair value hedges and any amounts excluded from effectiveness testing are recorded as a gain or loss in the Unaudited Condensed Consolidated Statements of Operations. In accordance with NYMEX requirements, we fund the margin associated with our commodity derivative contracts traded on the NYMEX. The amount of the margin is adjusted daily based on the fair value of the commodity contracts. The margin requirements are intended to mitigate a party's exposure to market volatility and the associated contracting party risk. We offset fair value amounts recorded for our NYMEX derivative contracts against margin funding as required by the NYMEX in Current Assets - Other in our Unaudited Condensed Consolidated Balance Sheets. Additionally, we enter into swap arrangements. Our Alkali Business relies on natural gas to generate heat and electricity for operations. We use a combination of commodity price swap contracts and future purchase contracts to manage our exposure to fluctuations in natural gas prices. The swap contracts fix the basis differential between NYMEX Henry Hub and NW Rocky Mountain posted prices. We do not designate these contracts as hedges for accounting purposes. We recognize any changes in fair value of the derivative contracts as increases or decreases in our cost of sales. At March 31, 2020, we entered into the following outstanding derivative commodity contracts to economically hedge inventory or fixed price purchase commitments.
Financial Statement Impacts Unrealized gains are subtracted from net income and unrealized losses are added to net income in determining cash flows from operating activities. To the extent that we have fair value hedges outstanding, the offsetting change recorded in the fair value of inventory is also eliminated from net income in determining cash flows from operating activities. Changes in margin deposits necessary to fund unrealized losses also affect cash flows from operating activities. The following tables reflect the estimated fair value gain (loss) position of our derivatives at March 31, 2020 and December 31, 2019: Fair Value of Derivative Assets and Liabilities
(2) Refer to Note 10 and Note 16 for additional discussion surrounding the Preferred Distribution Rate Reset Election derivative. Our accounting policy is to offset derivative assets and liabilities executed with the same counterparty when a master netting arrangement exists. Accordingly, we also offset derivative assets and liabilities with amounts associated with cash margin. Our exchange-traded derivatives are transacted through brokerage accounts and are subject to margin requirements as established by the respective exchange. On a daily basis, our account equity (consisting of the sum of our cash balance and the fair value of our open derivatives) is compared to our initial margin requirement resulting in the payment or return of variation margin. As of March 31, 2020, we had a net broker receivable of approximately $1.9 million (consisting of initial margin of $1.0 million increased by $0.9 million of variation margin). As of December 31, 2019, we had a net broker receivable of approximately $0.9 million (consisting of initial margin of $0.8 million increased by $0.1 million of variation margin). At March 31, 2020 and December 31, 2019, none of our outstanding derivatives contained credit-risk related contingent features that would result in a material adverse impact to us upon any change in our credit ratings. Preferred Distribution Rate Reset Election A derivative feature embedded in a contract that does not meet the definition of a derivative in its entirety must be bifurcated and accounted for separately if the economic characteristics and risks of the embedded derivative are not clearly and closely related to those of the host contract. For a period of 30 days following (i) September 1, 2022 and (ii) each subsequent anniversary thereof, the holders of our Class A Convertible Preferred Units may make a one-time election to reset the quarterly distribution amount (a "Rate Reset Election") to a cash amount per Class A Convertible Preferred Unit equal to the amount that would be payable per quarter if a Class A Convertible Preferred Unit accrued interest on the Issue Price at an annualized rate equal to three-month LIBOR plus 750 basis points; provided, however, that such reset rate shall be equal to 10.75% if (i) such alternative rate is higher than the LIBOR-based rate and (ii) the then market price for our common units is then less than 110% of the Issue Price. The Rate Reset Election of our Class A Convertible Preferred Units represents an embedded derivative that must be bifurcated from the related host contract and recorded at fair value on our Unaudited Condensed Consolidated Balance Sheet. Corresponding changes in fair value are recognized in Other Income (Expense) in our Unaudited Condensed Consolidated Statement of Operations. At March 31, 2020, the fair value of this embedded derivative was a liability of $19.0 million. See Note 10 for additional information regarding our Class A Convertible Preferred Units and the Rate Reset Election. Effect on Operating Results
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Revenue Recognition (Tables) |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following tables reflect the disaggregation of our revenues by major category for the three months ended March 31, 2020 and 2019, respectively:
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Schedule of Contract Asset and Liabilities Balances Activity | The table below depicts our contract asset and liability balances at December 31, 2019 and March 31, 2020:
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Schedule of Revenue Expected to be Recognized in Future Periods | The following chart depicts how we expect to recognize revenues for future periods related to these contracts:
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Revenue Recognition |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers The following tables reflect the disaggregation of our revenues by major category for the three months ended March 31, 2020 and 2019, respectively:
The Company recognizes revenue upon the satisfaction of its performance obligations under its contracts. The timing of revenue recognition varies for our different revenue streams. In general, the timing includes recognition of revenue over time as services are being performed as well as recognition of revenue at a point in time, for delivery of products. Contract Assets and Liabilities The table below depicts our contract asset and liability balances at December 31, 2019 and March 31, 2020:
Transaction Price Allocations to Remaining Performance Obligations We are required to disclose the amount of our transaction prices that are allocated to unsatisfied performance obligations as of March 31, 2020. We are exempted from disclosing performance obligations with a duration of one year or less, revenue recognized related to performance obligations where the consideration corresponds directly with the value provided to customers, and contracts with variable consideration that is allocated wholly to an unsatisfied performance obligation or promise to transfer a good or service that is part of a series in accordance with ASC 606. The majority of our contracts qualify for one of these expedients or exemptions. For the remaining contract types that involve revenue recognition over a long-term period with long-term fixed consideration (adjusted for indexing as required), we determined our allocations of transaction price that relate to unsatisfied performance obligations. For our tiered pricing offshore transportation contracts, we provide firm capacity for both fixed and variable consideration over a long term period. Therefore, we have allocated the remaining contract value to future periods. The following chart depicts how we expect to recognize revenues for future periods related to these contracts:
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Equity Investees |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investees | Equity Investees We account for our ownership in our joint ventures under the equity method of accounting. The price we pay to acquire an ownership interest in a company may exceed or be less than the underlying book value of the capital accounts we acquire. Such excess cost amounts are included within the carrying values of our equity investees. At March 31, 2020 and December 31, 2019, the unamortized excess cost amounts totaled $347.0 million and $350.9 million, respectively. We amortize the excess cost as a reduction in equity earnings. The following table presents information included in our Unaudited Condensed Consolidated Financial Statements related to our equity investees.
The following tables present the unaudited balance sheet and income statement information (on a 100% basis) for Poseidon Oil Pipeline Company, L.L.C. ("Poseidon") (which is our most significant equity investment):
Poseidon's Revolving Credit Facility Borrowings under Poseidon’s revolving credit facility, which was amended and restated in March 2019, are primarily used to fund spending on capital projects. The March 2019 credit facility is non-recourse to Poseidon’s owners and secured by substantially all of Poseidon's assets and has a maturity date of March 2024. The March 2019 credit facility contains customary covenants such as restrictions on debt levels, liens, guarantees, mergers, sale of assets and distributions to owners. A breach of any of these covenants could result in acceleration of the maturity date of Poseidon’s debt. Poseidon was in compliance with the terms of its credit agreement for all periods presented in these Unaudited Condensed Consolidated Financial Statements.
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Net Income (Loss) Per Common Unit |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Common Unit [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Common Unit | Net Income (Loss) Per Common Unit Basic net income per common unit is computed by dividing net income, after considering income attributable to our preferred unitholders, by the weighted average number of common units outstanding. The dilutive effect of our Class A Convertible Preferred Units is calculated using the if-converted method. Under the if-converted method, these units are assumed to be converted at the beginning of the period (beginning with their respective issuance date), and the resulting common units are included in the denominator of the diluted net income per common unit calculation for the period being presented. Distributions declared in the period and undeclared distributions that accumulated during the period are added back to the numerator for purposes of the if-converted calculation. For the three months ended March 31, 2020, the effect of the assumed conversion of the 25,336,778 Class A Convertible Preferred Units was anti-dilutive and was not included in the computation of diluted earnings per unit. The following table reconciles net income and weighted average units used in computing basic and diluted net income (loss) per common unit (in thousands, except per unit amounts):
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Supplemental Cash Flow Information (Tables) |
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Changes In Components of Operating Assets and Liabilities | The following table provides information regarding the net changes in components of operating assets and liabilities.
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Partners' Capital, Mezzanine Capital and Distributions (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Paid Distributions | We paid or will pay the following cash distributions to our Class A Convertible Preferred unitholders in 2019 and 2020:
(1) This distribution was declared on April 8, 2020 and will be paid to unitholders of record as of May 1, 2020. We paid or will pay the following distributions to our common unitholders in 2019 and 2020:
(1) This distribution was declared on April 8, 2020 and will be paid to unitholders of record as of May 1, 2020. |
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Schedule of Paid-in-Kind Distributions | Class A Convertible Preferred Unit distributions are recognized on the date in which they are declared. Paid-in-kind ("PIK") distributions were declared and issued as follows:
(1) Subsequent to the first quarter of 2019, all distributions have been and will be paid in cash.
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Schedule of Changes in Redeemable Noncontrolling Interest | he following table shows the change in our redeemable noncontrolling interest balance from December 31, 2019 to March 31, 2020:
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Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Asset Retirement Obligation Rollforward) (Details) $ in Thousands |
3 Months Ended |
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Mar. 31, 2020
USD ($)
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Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
ARO liability balance, December 31, 2019 | $ 175,081 |
Accretion expense | 2,233 |
Changes in estimate | (800) |
Settlements | (6,986) |
ARO liability balance, March 31, 2020 | $ 169,528 |
Equity Investees (Consolidated Financial Statements Related to Equity Investees) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Equity Method Investments and Joint Ventures [Abstract] | ||
Genesis’ share of operating earnings | $ 18,032 | $ 16,870 |
Amortization of excess purchase price | (3,873) | (3,873) |
Net equity in earnings | 14,159 | 12,997 |
Distributions received | $ 20,565 | $ 17,825 |
Transactions with Related Parties (Narrative) (Details) - Affiliated Entity - USD ($) $ in Thousands |
3 Months Ended | ||
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Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
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Poseidon | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 1,700 | $ 2,400 | |
Related party transaction, revenues | 3,147 | $ 3,165 | |
Related party transaction, costs and expenses | 254 | 247 | |
Poseidon | Asset Management Arrangement | |||
Related Party Transaction [Line Items] | |||
Related party transaction, revenues | 2,300 | 2,200 | |
ANSAC | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 66,256 | $ 68,075 | |
Related party transaction, revenues | 73,079 | 90,679 | |
Related party transaction, costs and expenses | $ 832 | $ 1,057 |
Fair-Value Measurements (Narrative) (Details) $ in Thousands |
3 Months Ended | ||
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Mar. 31, 2020
USD ($)
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Mar. 31, 2019
USD ($)
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Dec. 31, 2019
USD ($)
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gain from valuation of derivatives | $ 31,118 | $ (5,666) | |
Senior unsecured notes, net of debt issuance costs | 2,463,171 | $ 2,469,937 | |
Fair value of senior unsecured notes | 1,800,000 | $ 2,500,000 | |
Embedded Derivative Financial Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gain from valuation of derivatives | $ 32,500 | $ 3,000 | |
Equity Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Embedded derivative liability, measurement input | 0.50 |
Derivatives (Narrative) (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |
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Mar. 31, 2020
USD ($)
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Dec. 31, 2019
USD ($)
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Sep. 01, 2022 |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net broker receivable | $ 1.9 | $ 0.9 | |
Initial margin | 1.0 | 0.8 | |
Increase in margin deposits outstanding | 0.9 | $ 0.1 | |
Derivatives, Fair Value [Line Items] | |||
Embedded derivative liability | $ 19.0 | ||
Forecast | Class A Convertible Preferred Stock Units | |||
Derivatives, Fair Value [Line Items] | |||
Stock reset rate percentage | 10.75% | ||
Percentage below issue price per share | 110.00% | ||
LIBOR | Forecast | Class A Convertible Preferred Stock Units | |||
Derivatives, Fair Value [Line Items] | |||
Basis spread on variable rate over stock price | 7.50 |
Partners' Capital, Mezzanine Capital and Distributions (Preferred Cash Distributions Paid) (Details) - Preferred Unitholders - Class A Convertible Preferred Stock Units - USD ($) $ / shares in Units, $ in Thousands |
May 15, 2020 |
Feb. 14, 2020 |
Nov. 14, 2019 |
Aug. 14, 2019 |
May 15, 2019 |
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Temporary Equity [Line Items] | |||||
Date Paid | Feb. 14, 2020 | Nov. 14, 2019 | Aug. 14, 2019 | May 15, 2019 | |
Per Unit Amount (in dollars per unit) | $ 0.7374 | $ 0.7374 | $ 0.7374 | $ 0.2458 | |
Total Amount | $ 18,684 | $ 18,684 | $ 18,684 | $ 6,138 | |
Forecast | Subsequent Event | |||||
Temporary Equity [Line Items] | |||||
Date Paid | May 15, 2020 | ||||
Per Unit Amount (in dollars per unit) | $ 0.7374 | ||||
Total Amount | $ 18,684 |
Lease Accounting (Narrative) (Details) $ in Thousands |
3 Months Ended |
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Mar. 31, 2020
USD ($)
| |
Lessor, Lease, Description [Line Items] | |
Fixed quarterly payments to be received under finance lease arrangement | $ 5,200 |
Interest rate under finance lessor arrangement | 10.25% |
Fair value of direct finance lease, current | $ 9,500 |
Onshore Facilities & Transportation | |
Lessor, Lease, Description [Line Items] | |
Fair value of direct finance lease, current | $ 114,776 |
Inventories (Tables) |
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Major Components of Inventories | The major components of inventories were as follows:
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Transactions with Related Parties |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions with Related Parties | Transactions with Related Parties The transactions with related parties were as follows:
Our CEO, Mr. Sims, owns an aircraft which is used by us for business purposes in the course of operations. We pay Mr. Sims a fixed monthly fee and reimburse the aircraft management company for costs related to our usage of the aircraft, including fuel and the actual out-of-pocket costs. Based on current market rates for chartering of private aircraft under long-term, priority arrangements with industry recognized chartering companies, we believe that the terms of this arrangement are no worse than what we could have expected to obtain in an arms-length transaction. Poseidon At March 31, 2020 and December 31, 2019 Poseidon owed us $1.7 million and $2.4 million, respectively, for services rendered. We are the operator of Poseidon and provide management, administrative and pipeline operator services to Poseidon under an Operation and Management Agreement. Currently, that agreement renews automatically annually unless terminated by either party (as defined in the agreement). Our revenues for the three months ended March 31, 2020 and March 31, 2019 reflect $2.3 million and $2.2 million, respectively of fees we earned through the provision of services under that agreement. ANSAC We (through a subsidiary of our Alkali Business) are a member of the American Natural Soda Ash Corp. ("ANSAC"), an organization whose purpose is promoting and increasing the use and sale of natural soda ash and other refined or processed sodium products produced in the U.S. and consumed in specified countries outside of the U.S. Members sell products to ANSAC to satisfy ANSAC’s sales commitments to its customers. ANSAC passes its costs through to its members using a pro rata calculation based on sales. Those costs include sales and marketing, employees, office supplies, professional fees, travel, rent, and certain other costs. Those transactions do not necessarily represent arm's length transactions and may not represent all costs we would otherwise incur if we operated our Alkali Business on a stand-alone basis. We also benefit from favorable shipping rates for our direct exports when using ANSAC to arrange for ocean transport. ANSAC is considered a variable interest entity (VIE) because we experience certain risks and rewards from our relationship with it. As we do not exercise control over ANSAC and are not considered its primary beneficiary, we do not consolidate ANSAC. The ANSAC membership agreement provides that in the event an ANSAC member exits or the ANSAC cooperative is dissolved, the exiting members are obligated for their respective portion of the residual net assets or deficit of the cooperative. As of March 31, 2020, such amount is not estimable. Net Sales to ANSAC were $73.1 million during the three months ended March 31, 2020 and were $90.7 million during the three months ended March 31, 2019. The costs charged to us by ANSAC, included in operating costs, were $0.8 million during the three months ended March 31, 2020 and were $1.1 million during the three months ended March 31, 2019. Receivables from and payables to ANSAC as of March 31, 2020 and December 31, 2019 are as follows:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various environmental laws and regulations. Policies and procedures are in place to aid in monitoring compliance and detecting and addressing releases of crude oil from our pipelines or other facilities and from our mining operations relating to our Alkali Business; however, no assurance can be made that such environmental releases may not substantially affect our business. We are subject to lawsuits in the normal course of business and examination by tax and other regulatory authorities. We do not expect such matters presently pending to have a material effect on our financial position, results of operations, or cash flows.
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Business Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment information for the periods presented below was as follows:
Total assets by reportable segment were as follows:
(c) Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
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Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliation of total Segment Margin to net income attributable to Genesis Energy, L.P:
(5) Includes PIK distributions attributable to the period and accretion on the redemption feature.
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Intangible Assets (Tables) |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Intangible Assets | The following table summarizes the components of our intangible assets at the dates indicated:
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Schedule of Amortization Expense | Our amortization of intangible assets for the periods presented was as follows:
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Schedule of Expected Amortization Expense | We estimate that our amortization expense for the next five years will be as follows:
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Fair-Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Placement of Assets and Liabilities Within the Fair Value Hierarchy Levels | The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2020 and December 31, 2019.
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Schedule of Reconciliation of Changes in Fair Value of Derivatives Classified as Level 3 | The following table provides a reconciliation of changes in fair value at the beginning and ending balances for our derivatives classified as level 3:
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Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The major components of inventories were as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our obligations under debt arrangements consisted of the following:
As of March 31, 2020, we were in compliance with the financial covenants contained in our credit agreement and senior unsecured notes indentures. Senior Secured Credit Facility The key terms for rates under our $1.7 billion senior secured credit facility, which are dependent on our leverage ratio (as defined in the credit agreement), are as follows:
On March 25, 2020, we amended our credit agreement. This amendment, among other things, (i) sets the maximum Consolidated Senior Secured Leverage Ratio (as defined in the credit agreement) at 3.25 to 1.00 throughout the remaining term of the facility, and (ii) allows us to purchase certain of our outstanding senior unsecured notes, subject to certain customary conditions. At March 31, 2020, we had $977.4 million borrowed under our $1.7 billion credit facility, with $7.7 million of the borrowed amount designated as a loan under the inventory sublimit. Our credit agreement allows up to $100.0 million of the capacity to be used for letters of credit, of which $1.1 million was outstanding at March 31, 2020. Due to the revolving nature of loans under our credit facility, additional borrowings and periodic repayments and re-borrowings may be made until the maturity date. The total amount available for borrowings under our credit facility at March 31, 2020 was $721.5 million, subject to compliance with covenants. As a general rule, the assets and credit of our unrestricted subsidiaries are not available to satisfy the debts of Genesis Energy, L.P., Genesis Energy Finance Corporation or the Guarantor Subsidiaries (as defined below in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations), and the liabilities of our unrestricted subsidiaries do not constitute obligations of Genesis Energy, L.P., Genesis Energy Finance Corporation or the Guarantor Subsidiaries except, in the case of Genesis Alkali Holdings Company, LLC ("Alkali Holdings") and Genesis Energy, L.P., to the extent agreed to in the services agreement between Genesis Energy, L.P. and Alkali Holdings dated as of September 23, 2019 (the "Services Agreement"). Senior Unsecured Note Issuances, Redemption and Extinguishment On January 16, 2020, we issued $750.0 million in aggregate principal amount of our 7.75% senior unsecured notes due February 15, 2028 (the “2028 Notes”). Interest payments are due February 1 and August 1 of each year with the initial interest payment due on August 1, 2020. That issuance generated net proceeds of $736.7 million net of issuance costs incurred. The net proceeds were used to purchase $527.9 million of our existing 6.75% senior unsecured notes due August 1, 2022 (the “2022 Notes”), including the related accrued interest and tender premium on those notes, and the remaining proceeds at the time were used to repay a portion of the borrowings outstanding under our revolving credit facility. On January 17, 2020 we called for redemption of the remaining $222.1 million of our 2022 Notes, and they were redeemed on February 16, 2020. We incurred a total loss of approximately $23.5 million relating to the extinguishment of our 2022 senior unsecured notes, inclusive of our transactions costs and the write-off of the related unamortized debt issuance costs and discount, which is recorded as "Other income (expense)" in our Unaudited Consolidated Statements of Operations for the three months ended March 31, 2020.
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Organization and Basis of Presentation and Consolidation |
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Mar. 31, 2020 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Organization and Basis of Presentation and Consolidation | Organization and Basis of Presentation and Consolidation Organization We are a growth-oriented master limited partnership formed in Delaware in 1996 and focused on the midstream segment of the crude oil and natural gas industry in the Gulf Coast region of the United States and the Gulf of Mexico. We provide an integrated suite of services to refiners, crude oil and natural gas producers, and industrial and commercial enterprises and have a diverse portfolio of assets, including pipelines, offshore hub and junction platforms, our soda ash business (our "Alkali Business"), refinery-related plants, storage tanks and terminals, railcars, rail unloading facilities, barges and other vessels, and trucks. We are owned 100% by our limited partners. Genesis Energy, LLC, our general partner, is a wholly-owned subsidiary. Our general partner has sole responsibility for conducting our business and managing our operations. We conduct our operations and own our operating assets through our subsidiaries and joint ventures. We currently manage our businesses through the following four divisions that constitute our reportable segments:
Basis of Presentation and Consolidation The accompanying Unaudited Condensed Consolidated Financial Statements include Genesis Energy, L.P. and its subsidiaries, including our general partner, Genesis Energy, LLC. Our results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the fiscal year. The Condensed Consolidated Financial Statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they reflect all adjustments (which consist solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial results for interim periods. Certain information and notes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures are adequate to make the information presented not misleading when read in conjunction with the information contained in the periodic reports we file with the SEC pursuant to the Securities Exchange Act of 1934, including the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 (our "Annual Report"). Except per unit amounts, or as noted within the context of each footnote disclosure, the dollar amounts presented in the tabular data within these footnote disclosures are stated in thousands of dollars. COVID-19 Update In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. Our operations, which fall within the energy, mining and transportation sectors, are considered critical and essential by the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency ("CISA") and we have continued to operate our assets during this pandemic. We considered the impact of COVID-19 on the assumptions and estimates reflected in our financial statements. We noted, other than the impact of general macroeconomic conditions, there were no material adverse effects from the pandemic on our results for the three months ended March 31, 2020. See further discussion on COVID-19 in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
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Supplemental Cash Flow Information (Net Changes in Components of Operating Assets and Liabilities) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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(Increase) decrease in: | ||
Accounts receivable | $ 101,405 | $ 18,170 |
Inventories | (5,024) | (6,616) |
Deferred charges | 2,783 | (4,092) |
Other current assets | (3,746) | (5,067) |
Increase (decrease) in: | ||
Accounts payable | (62,365) | 5,226 |
Accrued liabilities | (25,519) | (4,421) |
Net changes in components of operating assets and liabilities | $ 7,534 | $ 3,200 |
Equity Investees (Schedule of Operations for Equity Investees) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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INCOME STATEMENT DATA: | ||
Revenues | $ 539,923 | $ 620,009 |
Operating income | 59,162 | 62,029 |
Net income | 24,909 | 15,954 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Poseidon | ||
INCOME STATEMENT DATA: | ||
Revenues | 32,892 | 31,052 |
Operating income | 23,606 | 22,305 |
Net income | $ 21,583 | $ 19,850 |
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Mineral Leaseholds) (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Fixed Assets And Asset Retirement Obligations [Abstract] | ||
Mineral leaseholds | $ 566,019 | $ 566,019 |
Less: Accumulated depletion | (11,157) | (10,194) |
Mineral leaseholds, net of accumulated depletion | $ 554,862 | $ 555,825 |
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Forecast of Accretion Expense) (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
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Fixed Assets And Asset Retirement Obligations [Abstract] | |
Remainder of 2020 | $ 7,029 |
2021 | 9,402 |
2022 | 9,412 |
2023 | 10,075 |
2024 | $ 10,786 |
Derivatives (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Derivatives Entered Into to Hedge Inventory or Fixed Price Purchase Commitments | At March 31, 2020, we entered into the following outstanding derivative commodity contracts to economically hedge inventory or fixed price purchase commitments.
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Schedule of Fair Value of Derivative Assets and Liabilities | The following tables reflect the estimated fair value gain (loss) position of our derivatives at March 31, 2020 and December 31, 2019: Fair Value of Derivative Assets and Liabilities
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Schedule of Effect on Operating Results | Effect on Operating Results
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Net Income (Loss) Per Common Unit (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Common Unit [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Earnings Per Share, Basic and Diluted | The following table reconciles net income and weighted average units used in computing basic and diluted net income (loss) per common unit (in thousands, except per unit amounts):
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Equity Investees (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated Financial Statements Related to Equity Investees | The following table presents information included in our Unaudited Condensed Consolidated Financial Statements related to our equity investees.
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Schedule of Balance Sheet Information for Equity Investees | The following tables present the unaudited balance sheet and income statement information (on a 100% basis) for Poseidon Oil Pipeline Company, L.L.C. ("Poseidon") (which is our most significant equity investment):
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Schedule of Operations for Equity Investees |
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Recent Accounting Developments |
3 Months Ended |
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Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Developments | Recent Accounting Developments Recently Adopted We have adopted guidance under ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"), as of January 1, 2020 . The standard changed the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans, and other instruments, entities are required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. We performed an assessment at our adoption date, January 1, 2020, which consisted of reviewing current and historical information pertaining to our trade accounts receivable and existing contract assets. Our assessment resulted in an immaterial impact to our consolidated financial statements as of the adoption date and for the three months ended March 31, 2020. During the first quarter of 2020, the SEC amended the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered in Rule 3-10 of Regulation S-X to go in effect January 4, 2021. The amendment simplifies the disclosure requirements and permits the amended disclosures to be provided outside the footnotes in audited annual or unaudited interim consolidated financial statements in all filings. As permitted by the amendment, we have early adopted the amendment and included the required summarized financial information in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
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Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations |
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Fixed Assets And Asset Retirement Obligations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations | Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations Fixed Assets Fixed assets, net consisted of the following:
Mineral Leaseholds Our Mineral Leaseholds, relating to our Alkali Business, consist of the following:
Our depreciation and depletion expense for the periods presented was as follows:
Asset Retirement Obligations We record asset retirement obligations ("AROs") in connection with legal requirements to perform specified retirement activities under contractual arrangements and/or governmental regulations. The following table presents information regarding our AROs since December 31, 2019:
Of the ARO balances disclosed above, $13.8 million and $26.6 million is included as current in "Accrued liabilities" on our Unaudited Condensed Consolidated Balance Sheet as of March 31, 2020 and December 31, 2019, respectively. The remainder of the ARO liability as of March 31, 2020 and December 31, 2019 is included in "Other long-term liabilities" on our Unaudited Condensed Consolidated Balance Sheet. With respect to our AROs, the following table presents our estimate of accretion expense for the periods indicated:
Certain of our unconsolidated affiliates have AROs recorded at March 31, 2020 relating to contractual agreements and regulatory requirements. These amounts are immaterial to our Unaudited Condensed Consolidated Financial Statements.
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Partners' Capital, Mezzanine Capital and Distributions |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital, Mezzanine Capital and Distributions | Partners’ Capital, Mezzanine Capital and Distributions At March 31, 2020, our outstanding common units consisted of 122,539,221 Class A units and 39,997 Class B units. Distributions We paid or will pay the following distributions to our common unitholders in 2019 and 2020:
(1) This distribution was declared on April 8, 2020 and will be paid to unitholders of record as of May 1, 2020. Class A Convertible Preferred Units At March 31, 2020 we had 25,336,778 Class A Convertible Preferred Units (our "Class A Convertible Preferred Units") outstanding. Our Class A Convertible Preferred Units rank senior to all of our currently outstanding classes or series of limited partner interests with respect to distribution and/or liquidation rights. Holders of our Class A Convertible Preferred Units vote on an as-converted basis with holders of our common units and have certain class voting rights, including with respect to any amendment to the partnership agreement that would adversely affect the rights, preferences or privileges, or otherwise modify the terms, of those Class A Convertible Preferred Units. Accounting for the Class A Convertible Preferred Units Our Class A Convertible Preferred Units are considered redeemable securities under GAAP due to the existence of redemption provisions upon a deemed liquidation event that is outside our control. Therefore, we present them as temporary equity in the mezzanine section of the Unaudited Consolidated Balance Sheet. Because our Class A Convertible Preferred Units are not currently redeemable and we do not have plans or expect any events that constitute a change of control in our partnership agreement, we present our Class A Convertible Preferred Units at their initial carrying amount. However, we would be required to adjust that carrying amount if it becomes probable that we would be required to redeem our Class A Convertible Preferred Units. Initial and Subsequent Measurement We initially recognized our Class A Convertible Preferred Units at their issuance date fair value, net of issuance costs. We will not be required to adjust the carrying amount of our Class A Convertible Preferred Units until it becomes probable that they would become redeemable. Once redemption becomes probable, we would adjust the carrying amount of our Class A Convertible Preferred Units to the redemption value over a period of time comprising the date the feature first becomes probable and the date the units can first be redeemed. Our Class A Convertible Preferred Units contain a distribution Rate Reset Election (as defined in Note 15) option. This Rate Reset Election is bifurcated and accounted for separately as an embedded derivative and recorded at fair value at each reporting period. Refer to Note 15 and Note 16 for additional discussion. Class A Convertible Preferred Unit distributions are recognized on the date in which they are declared. Paid-in-kind ("PIK") distributions were declared and issued as follows:
(1) Subsequent to the first quarter of 2019, all distributions have been and will be paid in cash. Net Income Attributable to Genesis Energy, L.P. is reduced by Class A Convertible Preferred Unit distributions that accumulated during the period. Net income attributable to Genesis Energy, L.P. was reduced by $18.7 million and $18.4 million for the three months ended March 31, 2020 and March 31, 2019. We paid or will pay the following cash distributions to our Class A Convertible Preferred unitholders in 2019 and 2020:
(1) This distribution was declared on April 8, 2020 and will be paid to unitholders of record as of May 1, 2020. Redeemable Noncontrolling Interests On September 23, 2019, we, through a subsidiary, Alkali Holdings, entered into an amended and restated Limited Liability Company Agreement of Alkali Holdings (the "LLC Agreement") and a Securities Purchase Agreement (the "Securities Purchase Agreement") whereby certain investment fund entities affiliated with GSO Capital Partners LP (collectively "GSO") purchased $55,000,000 and committed to purchase up to approximately $350,000,000 of preferred units in Alkali Holdings, the entity that holds our trona and trona-based exploring, mining, processing, producing, marketing and selling business, including its Granger facility near Green River, Wyoming. Alkali Holdings will use the net proceeds from the Alkali Holdings preferred units to fund up to 100% of the anticipated cost of expansion of the Granger facility. As of March 31, 2020, we have received cash of $122.9 million for the $130 million of Alkali Holdings preferred units issued to date net of issuance costs, which was inclusive of our transaction related expenses and one-time commitment fee. On April 14, 2020, we entered into an amendment to our agreements with GSO to, among other things, extend the construction timeline of the Granger expansion project by one year. Accounting for Redeemable Noncontrolling Interests Classification The Alkali Holdings preferred units issued and outstanding are accounted for as a redeemable noncontrolling interest in the mezzanine section on our Unaudited Condensed Consolidated Balance Sheet due to the redemption features for a change of control. Initial and Subsequent Measurement We recorded the Alkali Holdings preferred units at their issuance date fair value, net of issuance costs. The fair value as of March 31, 2020 represents the carrying amount based on the issued and outstanding Alkali Holdings preferred units most probable redemption event on the six year anniversary of the closing, which is the predetermined internal rate of return measure accreted using the effective interest method to the redemption value as of the reporting date. Net Income Attributable to Genesis Energy, L.P. for the three months ended March 31, 2020 includes $4.1 million of adjustments, of which $3.3 million was allocated to the PIK distributions on the outstanding Alkali Holdings preferred units and $0.8 million was attributable to redemption accretion value adjustments. We elected to pay distributions for the period ended March 31, 2020 in-kind to our Alkali Holdings preferred unitholders. These PIK distributions increase the unitholders liquidation preference on each Alkali Holdings preferred unit. As of the reporting date, there are no triggering, change of control, early redemption or monetization events that are probable that would require us to revalue the Alkali Holdings preferred units. If the Alkali Holdings preferred units were redeemed on the reporting date of March 31, 2020, the redemption amount would be equal to $192.5 million, which would be the multiple of invested capital metric applied to the Alkali Holdings preferred units outstanding plus the make-whole amount on the undrawn minimum Alkali Holdings preferred units. The following table shows the change in our redeemable noncontrolling interest balance from December 31, 2019 to March 31, 2020:
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 28,979 | $ 15,947 |
Other comprehensive income: | ||
Change in benefit plan liability | 0 | 0 |
Total Comprehensive income | 28,979 | 15,947 |
Comprehensive loss attributable to noncontrolling interests | 16 | 7 |
Comprehensive income attributable to redeemable noncontrolling interests | (4,086) | 0 |
Comprehensive income attributable to Genesis Energy, L.P. | $ 24,909 | $ 15,954 |
Transactions with Related Parties (ANSAC) (Details) - ANSAC - Affiliated Entity - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Related Party Transaction [Line Items] | ||
Receivables | $ 66,256 | $ 68,075 |
Payables | $ 832 | $ 2,103 |
Business Segment Information (Schedule of Total Assets by Reportable Segment) (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 6,434,458 | $ 6,597,641 |
Other assets | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 40,158 | 41,217 |
Offshore pipeline transportation | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 2,267,552 | 2,306,946 |
Sodium Minerals & Sulfur Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 1,994,957 | 2,019,905 |
Onshore Facilities & Transportation | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | 1,370,309 | 1,457,190 |
Marine transportation | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated assets | $ 761,482 | $ 772,383 |
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Depreciation and Depletion Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Fixed Assets And Asset Retirement Obligations [Abstract] | ||
Depreciation expense | $ 69,242 | $ 71,672 |
Depletion expense | $ 963 | $ 1,319 |
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