Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Our $1.8 billion aggregate principal amount of senior unsecured notes co-issued by Genesis Energy, L.P. and Genesis Energy Finance Corporation are fully and unconditionally guaranteed jointly and severally by all of Genesis Energy, L.P.’s current and future 100% owned domestic subsidiaries, except Genesis Free State Pipeline, LLC, Genesis NEJD Pipeline, LLC and certain other minor subsidiaries. Genesis NEJD Pipeline, LLC is 100% owned by Genesis Energy, L.P., the parent company. The remaining non-guarantor subsidiaries are owned by Genesis Crude Oil, L.P., a guarantor subsidiary. Genesis Energy Finance Corporation has no independent assets or operations. See Note 8 for additional information regarding our consolidated debt obligations. The following is condensed consolidating financial information for Genesis Energy, L.P., the guarantor subsidiaries and the non-guarantor subsidiaries. Unaudited Condensed Consolidating Balance Sheet September 30, 2016 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated ASSETS Current assets: Cash and cash equivalents $ 6 $ — $ 2,126 $ 1,315 $ — $ 3,447 Other current assets 75 — 296,951 11,694 (391 ) 308,329 Total current assets 81 — 299,077 13,009 (391 ) 311,776 Fixed assets, at cost — — 4,630,100 77,585 — 4,707,685 Less: Accumulated depreciation — — (485,827 ) (23,592 ) — (509,419 ) Net fixed assets — — 4,144,273 53,993 — 4,198,266 Goodwill — — 325,046 — — 325,046 Other assets, net 11,734 — 393,117 135,283 (136,952 ) 403,182 Advances to affiliates 2,565,346 — — 66,110 (2,631,456 ) — Equity investees — — 417,214 — — 417,214 Investments in subsidiaries 2,620,102 — 90,214 — (2,710,316 ) — Total assets $ 5,197,263 $ — $ 5,668,941 $ 268,395 $ (5,479,115 ) $ 5,655,484 LIABILITIES AND PARTNERS’ CAPITAL Current liabilities $ 27,801 $ — $ 214,404 $ 150 $ (136 ) $ 242,219 Senior secured credit facility 1,167,000 — — — — 1,167,000 Senior unsecured notes 1,811,633 — — — — 1,811,633 Deferred tax liabilities — — 24,644 — — 24,644 Advances from affiliates — — 2,631,455 — (2,631,455 ) — Other liabilities — — 185,481 179,191 (136,793 ) 227,879 Total liabilities 3,006,434 — 3,055,984 179,341 (2,768,384 ) 3,473,375 Partners’ capital, common units 2,190,829 — 2,612,957 97,774 (2,710,731 ) 2,190,829 Noncontrolling interests — — — (8,720 ) — (8,720 ) Total liabilities and partners’ capital $ 5,197,263 $ — $ 5,668,941 $ 268,395 $ (5,479,115 ) $ 5,655,484 Unaudited Condensed Consolidating Balance Sheet December 31, 2015 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated ASSETS Current assets: Cash and cash equivalents $ 6 $ — $ 8,288 $ 2,601 $ — $ 10,895 Other current assets 50 — 285,313 10,422 (364 ) 295,421 Total current assets 56 — 293,601 13,023 (364 ) 306,316 Fixed assets, at cost — — 4,232,641 77,585 — 4,310,226 Less: Accumulated depreciation — — (356,530 ) (21,717 ) — (378,247 ) Net fixed assets — — 3,876,111 55,868 — 3,931,979 Goodwill — — 325,046 — — 325,046 Other assets, net 13,140 — 394,294 140,409 (125,977 ) 421,866 Advances to affiliates 2,619,493 — — 47,034 (2,666,527 ) — Equity investees — — 474,392 — — 474,392 Investments in subsidiaries 2,353,804 — 90,741 — (2,444,545 ) — Total assets $ 4,986,493 $ — $ 5,454,185 $ 256,334 $ (5,237,413 ) $ 5,459,599 LIABILITIES AND PARTNERS’ CAPITAL Current liabilities $ 35,338 $ — $ 267,294 $ — $ (496 ) $ 302,136 Senior secured credit facility 1,115,000 — — — — 1,115,000 Senior unsecured notes 1,807,054 — — — — 1,807,054 Deferred tax liabilities — — 22,586 — — 22,586 Advances from affiliates — — 2,666,527 — (2,666,527 ) — Other liabilities — — 150,877 167,006 (125,811 ) 192,072 Total liabilities 2,957,392 — 3,107,284 167,006 (2,792,834 ) 3,438,848 Partners’ capital, common units 2,029,101 — 2,346,901 97,678 (2,444,579 ) 2,029,101 Noncontrolling interests — — — (8,350 ) — (8,350 ) Total liabilities and partners’ capital $ 4,986,493 $ — $ 5,454,185 $ 256,334 $ (5,237,413 ) $ 5,459,599 Unaudited Condensed Consolidating Statement of Operations Three Months Ended September 30, 2016 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 89,717 $ — $ — $ 89,717 Onshore pipeline transportation services — — 9,002 4,997 — 13,999 Refinery services — — 45,262 2,981 (2,518 ) 45,725 Marine transportation — — 55,285 — — 55,285 Supply and logistics — — 255,324 — — 255,324 Total revenues — — 454,590 7,978 (2,518 ) 460,050 COSTS AND EXPENSES: Offshore pipeline transportation operating costs — — 22,533 589 — 23,122 Onshore pipeline transportation operating costs — — 4,748 255 — 5,003 Refinery services operating costs — — 24,577 3,018 (2,518 ) 25,077 Marine transportation costs — — 38,490 — — 38,490 Supply and logistics costs — — 247,702 — — 247,702 General and administrative — — 11,212 — — 11,212 Depreciation and amortization — — 53,640 625 — 54,265 Total costs and expenses — — 402,902 4,487 (2,518 ) 404,871 OPERATING INCOME — — 51,688 3,491 — 55,179 Equity in earnings of subsidiaries 66,811 — 28 — (66,839 ) — Equity in earnings of equity investees — — 12,488 — — 12,488 Interest (expense) income, net (34,710 ) — 3,595 (3,620 ) — (34,735 ) Other income/(expense), net — — — — — — Income before income taxes 32,101 — 67,799 (129 ) (66,839 ) 32,932 Income tax expense — — (949 ) — — (949 ) NET INCOME 32,101 — 66,850 (129 ) (66,839 ) 31,983 Net loss attributable to noncontrolling interest — — — 118 — 118 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 32,101 $ — $ 66,850 $ (11 ) $ (66,839 ) $ 32,101 Unaudited Condensed Consolidating Statement of Operations Three Months Ended September 30, 2015 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 59,695 $ 1,693 $ — $ 61,388 Onshore pipeline transportation services — — 14,130 5,779 — 19,909 Refinery services — — 42,464 2,608 (1,740 ) 43,332 Marine transportation — — 60,536 — — 60,536 Supply and logistics — — 387,169 — — 387,169 Total revenues — — 563,994 10,080 (1,740 ) 572,334 COSTS AND EXPENSES: Offshore pipeline transportation operating costs — — 17,188 510 — 17,698 Onshore pipeline transportation operating costs — — 6,533 188 — 6,721 Refinery services operating costs — — 21,758 2,376 (1,771 ) 22,363 Marine transportation costs — — 33,869 — — 33,869 Supply and logistics costs — — 378,916 — — 378,916 General and administrative — — 26,799 — — 26,799 Depreciation and amortization — — 40,320 850 — 41,170 Total costs and expenses — — 525,383 3,924 (1,771 ) 527,536 OPERATING INCOME — — 38,611 6,156 31 44,798 Equity in earnings of subsidiaries 392,769 — 2,284 — (395,053 ) — Equity in earnings of equity investees — — 14,260 — — 14,260 Gain on basis step up on historical interest — — 335,260 — — 335,260 Interest (expense) income, net (29,576 ) — 3,728 (3,769 ) — (29,617 ) Other income/(expense), net 21 — (21 ) — — — Income before income taxes 363,214 — 394,122 2,387 (395,022 ) 364,701 Income tax (expense) benefit — — (1,341 ) 49 — (1,292 ) NET INCOME 363,214 — 392,781 2,436 (395,022 ) 363,409 Net loss attributable to noncontrolling interest — — — (195 ) — (195 ) NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 363,214 $ — $ 392,781 $ 2,241 $ (395,022 ) $ 363,214 Unaudited Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2016 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 244,837 $ — $ — $ 244,837 Onshore pipeline transportation services — — 32,872 15,528 — 48,400 Refinery services — — 129,671 5,499 (5,585 ) 129,585 Marine transportation — — 159,930 — — 159,930 Supply and logistics — — 701,688 — — 701,688 Total revenues — — 1,268,998 21,027 (5,585 ) 1,284,440 COSTS AND EXPENSES: Offshore pipeline transportation operating costs — — 61,882 1,850 — 63,732 Onshore pipeline transportation operating costs — — 16,668 831 — 17,499 Refinery services operating costs — — 67,190 6,036 (5,585 ) 67,641 Marine transportation costs — — 105,942 — — 105,942 Supply and logistics costs — — 675,095 — — 675,095 General and administrative — — 34,716 — — 34,716 Depreciation and amortization — — 154,925 1,875 — 156,800 Total costs and expenses — — 1,116,418 10,592 (5,585 ) 1,121,425 OPERATING INCOME — — 152,580 10,435 — 163,015 Equity in earnings of subsidiaries 195,674 — (50 ) — (195,624 ) — Equity in earnings of equity investees — — 35,362 — — 35,362 Interest (expense) income, net (104,543 ) — 10,861 (10,975 ) — (104,657 ) Income before income taxes 91,131 — 198,753 (540 ) (195,624 ) 93,720 Income tax expense — — (2,956 ) (3 ) — (2,959 ) NET INCOME 91,131 — 195,797 (543 ) (195,624 ) 90,761 Net loss attributable to noncontrolling interest — — — 370 — 370 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 91,131 $ — $ 195,797 $ (173 ) $ (195,624 ) $ 91,131 Unaudited Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2015 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 61,743 $ 1,693 $ — $ 63,436 Onshore pipeline transportation services — — 39,874 18,036 — 57,910 Refinery services — — 133,055 10,579 (7,854 ) 135,780 Marine transportation — — 180,501 — — 180,501 Supply and logistics — — 1,317,891 — — 1,317,891 Total revenues — — 1,733,064 30,308 (7,854 ) 1,755,518 COSTS AND EXPENSES: Offshore pipeline transportation operating costs — — 17,831 510 — 18,341 Onshore pipeline transportation operating costs — — 19,345 529 — 19,874 Refinery services operating costs — — 73,058 10,021 (7,854 ) 75,225 Marine transportation costs — — 100,749 — — 100,749 Supply and logistics costs — — 1,290,980 — — 1,290,980 General and administrative — — 54,852 — — 54,852 Depreciation and amortization — — 94,365 2,135 — 96,500 Total costs and expenses — — 1,651,180 13,195 (7,854 ) 1,656,521 OPERATING INCOME — — 81,884 17,113 — 98,997 Equity in earnings of subsidiaries 480,953 — 5,770 — (486,723 ) — Equity in earnings of equity investees — — 48,440 — — 48,440 Gain on basis step up on historical interest — — 335,260 — — 335,260 Interest (expense) income, net (66,655 ) — 11,329 (11,411 ) — (66,737 ) Other income/(expense), net (19,204 ) — 1,675 — — (17,529 ) Income before income taxes 395,094 — 484,358 5,702 (486,723 ) 398,431 Income tax (expense) benefit — — (3,275 ) 133 — (3,142 ) NET INCOME 395,094 — 481,083 5,835 (486,723 ) 395,289 Net loss attributable to noncontrolling interest — — — (195 ) — (195 ) NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 395,094 $ — $ 481,083 $ 5,640 $ (486,723 ) $ 395,094 Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated Net cash provided by operating activities $ 122,884 $ — $ 310,723 $ 6,781 $ (211,991 ) $ 228,397 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (363,218 ) — — (363,218 ) Cash distributions received from equity investees - return of investment — — 16,652 — — 16,652 Investments in equity investees (298,051 ) — — — 298,051 — Acquisitions — — (25,394 ) — — (25,394 ) Intercompany transfers 54,148 — — — (54,148 ) — Repayments on loan to non-guarantor subsidiary — — 4,526 — (4,526 ) — Contributions in aid of construction costs — — 12,208 — — 12,208 Proceeds from asset sales — — 3,303 — — 3,303 Other, net — — 185 — — 185 Net cash used in investing activities (243,903 ) — (351,738 ) — 239,377 (356,264 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 883,600 — — — — 883,600 Repayments on senior secured credit facility (831,600 ) — — — — (831,600 ) Debt issuance costs (1,578 ) — — — — (1,578 ) Intercompany transfers — — (35,144 ) (19,004 ) 54,148 — Issuance of common units for cash, net 298,051 — 298,051 — (298,051 ) 298,051 Distributions to partners/owners (227,454 ) — (227,454 ) — 227,454 (227,454 ) Other, net — — (600 ) 10,937 (10,937 ) (600 ) Net cash provided by financing activities 121,019 — 34,853 (8,067 ) (27,386 ) 120,419 Net decrease in cash and cash equivalents — — (6,162 ) (1,286 ) — (7,448 ) Cash and cash equivalents at beginning of period 6 — 8,288 2,601 — 10,895 Cash and cash equivalents at end of period $ 6 $ — $ 2,126 $ 1,315 $ — $ 3,447 Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2015 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated Net cash provided by operating activities $ (53,478 ) $ — $ 201,305 $ 51,028 $ (6,727 ) $ 192,128 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (359,504 ) — — (359,504 ) Cash distributions received from equity investees - return of investment 179,267 — 19,360 — (179,267 ) 19,360 Investments in equity investees (633,761 ) — (2,900 ) — 633,761 (2,900 ) Acquisitions — — (1,517,428 ) — — (1,517,428 ) Intercompany transfers (1,164,821 ) — — — 1,164,821 — Repayments on loan to non-guarantor subsidiary — — (1,077 ) — 1,077 — Proceeds from asset sales — — 2,571 — — 2,571 Other, net — — (2,137 ) — — (2,137 ) Net cash used in investing activities (1,619,315 ) — (1,861,115 ) — 1,620,392 (1,860,038 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 1,168,850 — — — — 1,168,850 Repayments on senior secured credit facility (705,150 ) — — — — (705,150 ) Proceeds from issuance of senior unsecured notes 1,139,718 — — — — 1,139,718 Repayment of senior unsecured notes (350,000 ) — — — — (350,000 ) Debt issuance costs (28,361 ) — — — — (28,361 ) Intercompany transfers — — 1,215,585 (50,764 ) (1,164,821 ) — Issuance of common units for cash, net 633,759 — 633,759 — (633,759 ) 633,759 Distributions to partners/owners (186,026 ) — (186,026 ) — 186,026 (186,026 ) Distributions to noncontrolling interest — — (560 ) — — (560 ) Other, net — — 1,786 1,111 (1,111 ) 1,786 Net cash provided by financing activities 1,672,790 — 1,664,544 (49,653 ) (1,613,665 ) 1,674,016 Net (decrease) increase in cash and cash equivalents (3 ) — 4,734 1,375 — 6,106 Cash and cash equivalents at beginning of period 9 — 8,310 1,143 — 9,462 Cash and cash equivalents at end of period $ 6 $ — $ 13,044 $ 2,518 $ — $ 15,568 |