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 7 for additional information regarding our consolidated debt obligations. The following is condensed consolidating financial information for Genesis Energy, L.P., the guarantor subsidiaries and the non-guarantor subsidiaries. Unaudited Condensed Consolidating Balance Sheet June 30, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated ASSETS Current assets: Cash and cash equivalents $ 6 $ — $ 9,595 $ 476 $ — $ 10,077 Other current assets 100 — 305,676 12,178 (321 ) 317,633 Total current assets 106 — 315,271 12,654 (321 ) 327,710 Fixed assets, at cost — — 4,765,422 77,585 — 4,843,007 Less: Accumulated depreciation — — (603,726 ) (25,467 ) — (629,193 ) Net fixed assets — — 4,161,696 52,118 — 4,213,814 Goodwill — — 325,046 — — 325,046 Other assets, net 16,060 — 384,724 130,265 (147,569 ) 383,480 Advances to affiliates 2,507,192 — — 81,991 (2,589,183 ) — Equity investees — — 390,326 — — 390,326 Investments in subsidiaries 2,698,899 — 80,505 — (2,779,404 ) — Total assets $ 5,222,257 $ — $ 5,657,568 $ 277,028 $ (5,516,477 ) $ 5,640,376 LIABILITIES AND PARTNERS’ CAPITAL Current liabilities $ 35,300 $ — $ 187,009 $ 15,040 $ (153 ) $ 237,196 Senior secured credit facility 1,211,000 — — — — 1,211,000 Senior unsecured notes 1,816,259 — — — — 1,816,259 Deferred tax liabilities — — 26,249 — — 26,249 Advances from affiliates — — 2,589,189 — (2,589,189 ) — Other liabilities — — 164,414 182,839 (147,418 ) 199,835 Total liabilities 3,062,559 — 2,966,861 197,879 (2,736,760 ) 3,490,539 Partners’ capital, common units 2,159,698 — 2,690,707 89,010 (2,779,717 ) 2,159,698 Noncontrolling interests — — — (9,861 ) — (9,861 ) Total liabilities and partners’ capital $ 5,222,257 $ — $ 5,657,568 $ 277,028 $ (5,516,477 ) $ 5,640,376 Unaudited Condensed Consolidating Balance Sheet December 31, 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 $ — $ 6,360 $ 663 $ — $ 7,029 Other current assets 50 — 340,555 12,237 (302 ) 352,540 Total current assets 56 — 346,915 12,900 (302 ) 359,569 Fixed assets, at cost — — 4,685,811 77,585 — 4,763,396 Less: Accumulated depreciation — — (524,315 ) (24,217 ) — (548,532 ) Net fixed assets — — 4,161,496 53,368 — 4,214,864 Goodwill — — 325,046 — — 325,046 Other assets, net 10,696 — 390,214 133,980 (140,533 ) 394,357 Advances to affiliates 2,650,930 — — 73,295 (2,724,225 ) — Equity investees — — 408,756 — — 408,756 Investments in subsidiaries 2,594,882 — 80,735 — (2,675,617 ) — Total assets $ 5,256,564 $ — $ 5,713,162 $ 273,543 $ (5,540,677 ) $ 5,702,592 LIABILITIES AND PARTNERS’ CAPITAL Current liabilities $ 34,864 $ — $ 211,591 $ 14,505 $ (157 ) $ 260,803 Senior secured credit facility 1,278,200 — — — — 1,278,200 Senior unsecured notes 1,813,169 — — — — 1,813,169 Deferred tax liabilities — — 25,889 — — 25,889 Advances from affiliates — — 2,724,224 — (2,724,224 ) — Other liabilities — — 165,266 179,592 (140,377 ) 204,481 Total liabilities 3,126,233 — 3,126,970 194,097 (2,864,758 ) 3,582,542 Partners’ capital, common units 2,130,331 — 2,586,192 89,727 (2,675,919 ) 2,130,331 Noncontrolling interests — — — (10,281 ) — (10,281 ) Total liabilities and partners’ capital $ 5,256,564 $ — $ 5,713,162 $ 273,543 $ (5,540,677 ) $ 5,702,592 Unaudited Condensed Consolidating Statement of Operations Three Months Ended June 30, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 77,638 $ — $ — $ 77,638 Refinery services — — 42,995 2,089 (2,016 ) 43,068 Marine transportation — — 53,202 — — 53,202 Onshore facilities and transportation — — 228,291 4,524 — 232,815 Total revenues — — 402,126 6,613 (2,016 ) 406,723 COSTS AND EXPENSES: Onshore facilities and transportation — — 222,055 279 — 222,334 Marine transportation costs — — 38,949 — — 38,949 Refinery services operating costs — — 26,586 2,036 (2,016 ) 26,606 Offshore pipeline transportation operating costs — — 17,362 762 — 18,124 General and administrative — — 9,338 — — 9,338 Depreciation and amortization — — 55,984 625 — 56,609 Gain on sale of assets — — (26,684 ) — — (26,684 ) Total costs and expenses — — 343,590 3,702 (2,016 ) 345,276 OPERATING INCOME — — 58,536 2,911 — 61,447 Equity in earnings of subsidiaries 71,691 — (395 ) — (71,296 ) — Equity in earnings of equity investees — — 10,426 — — 10,426 Interest (expense) income, net (37,958 ) — 3,466 (3,498 ) — (37,990 ) Income before income taxes 33,733 — 72,033 (587 ) (71,296 ) 33,883 Income tax benefit (expense) — — (303 ) — — (303 ) NET INCOME 33,733 — 71,730 (587 ) (71,296 ) 33,580 Net loss attributable to noncontrolling interest — — — 153 — 153 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 33,733 $ — $ 71,730 $ (434 ) $ (71,296 ) $ 33,733 Unaudited Condensed Consolidating Statement of Operations Three Months Ended June 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 $ — $ — $ 78,994 $ — $ 78,994 Refinery services — — 42,115 1,715 (2,506 ) 41,324 Marine transportation — — 52,609 — — 52,609 Onshore facilities and transportation — — 268,063 4,986 — 273,049 Total revenues — — 441,781 6,701 (2,506 ) 445,976 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 251,840 280 — 252,120 Marine transportation costs — — 34,430 — — 34,430 Refinery services operating costs — — 22,167 1,918 (2,506 ) 21,579 Offshore pipeline transportation operating costs — — 22,044 632 — 22,676 General and administrative — — 11,283 — — 11,283 Depreciation and amortization — — 55,275 625 — 55,900 Total costs and expenses — — 397,039 3,455 (2,506 ) 397,988 OPERATING INCOME — — 44,742 3,246 — 47,988 Equity in earnings of subsidiaries 60,205 — (156 ) — (60,049 ) — Equity in earnings of equity investees — — 12,157 — — 12,157 Interest (expense) income, net (35,508 ) — 3,632 (3,659 ) — (35,535 ) Income before income taxes 24,697 — 60,375 (413 ) (60,049 ) 24,610 Income tax expense — — (1,097 ) 88 — (1,009 ) NET INCOME 24,697 — 59,278 (325 ) (60,049 ) 23,601 Net loss attributable to noncontrolling interest — — — 126 — 126 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 24,697 $ — $ 59,278 $ (199 ) $ (60,049 ) $ 23,727 Unaudited Condensed Consolidating Statement of Operations Six Months Ended June 30, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 162,766 $ — $ — $ 162,766 Refinery services — — 88,029 3,899 (3,814 ) 88,114 Marine transportation — — 103,504 — — 103,504 Onshore facilities and transportation — — 458,361 9,469 — 467,830 Total revenues — — 812,660 13,368 (3,814 ) 822,214 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 436,126 540 — 436,666 Marine transportation costs — — 76,191 — — 76,191 Refinery services operating costs — — 53,739 4,045 (3,814 ) 53,970 Offshore pipeline transportation operating costs — — 34,468 1,524 — 35,992 General and administrative — — 19,314 — — 19,314 Depreciation and amortization — — 111,471 1,250 — 112,721 Gain on sale of assets — — (26,684 ) — — (26,684 ) Total costs and expenses — — 704,625 7,359 (3,814 ) 708,170 OPERATING INCOME — — 108,035 6,009 — 114,044 Equity in earnings of subsidiaries 135,500 — (645 ) — (134,855 ) — Equity in earnings of equity investees — — 21,761 — — 21,761 Interest (expense) income, net (74,677 ) — 6,986 (7,038 ) — (74,729 ) Income before income taxes 60,823 — 136,137 (1,029 ) (134,855 ) 61,076 Income tax expense — — (558 ) — — (558 ) NET INCOME 60,823 — 135,579 (1,029 ) (134,855 ) 60,518 Net loss attributable to noncontrolling interest — — — 305 — 305 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 60,823 $ — $ 135,579 $ (724 ) $ (134,855 ) $ 60,823 Unaudited Condensed Consolidating Statement of Operations Six Months Ended June 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 $ — $ — $ 155,120 $ — $ 155,120 Refinery services — — 84,409 2,518 (3,067 ) 83,860 Marine transportation — — 104,645 — — 104,645 Onshore facilities and transportation — — 470,234 10,531 — 480,765 Total revenues — — 814,408 13,049 (3,067 ) 824,390 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 439,313 576 — 439,889 Marine transportation costs — — 67,452 — — 67,452 Refinery services operating costs — — 42,613 3,018 (3,067 ) 42,564 Offshore pipeline transportation operating costs — — 39,349 1,261 — 40,610 General and administrative — — 23,504 — — 23,504 Depreciation and amortization — — 101,285 1,250 — 102,535 Total costs and expenses — — 713,516 6,105 (3,067 ) 716,554 OPERATING INCOME — — 100,892 6,944 — 107,836 Equity in earnings of subsidiaries 128,863 — (78 ) — (128,785 ) — Equity in earnings of equity investees — — 22,874 — — 22,874 Interest (expense) income, net (69,833 ) — 7,266 (7,355 ) — (69,922 ) Income before income taxes 59,030 — 130,954 (411 ) (128,785 ) 60,788 Income tax (expense) benefit — — (2,007 ) (3 ) — (2,010 ) NET INCOME 59,030 — 128,947 (414 ) (128,785 ) 58,778 Net loss attributable to noncontrolling interest — — — 252 — 252 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 59,030 $ — $ 128,947 $ (162 ) $ (128,785 ) $ 59,030 Unaudited Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated Net cash provided by operating activities $ 102,991 $ — $ 242,004 $ 646 $ (161,687 ) $ 183,954 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (126,580 ) — — (126,580 ) Cash distributions received from equity investees - return of investment — — 10,323 — — 10,323 Investments in equity investees (140,537 ) — — — 140,537 — Acquisitions — — (759 ) — — (759 ) Intercompany transfers 143,738 — — — (143,738 ) — Repayments on loan to non-guarantor subsidiary — — 3,296 — (3,296 ) — Contributions in aid of construction costs — — 124 — — 124 Proceeds from asset sales — — 38,237 — — 38,237 Other, net — — — — — — Net cash used in investing activities 3,201 — (75,359 ) — (6,497 ) (78,655 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 410,700 — — — — 410,700 Repayments on senior secured credit facility (477,900 ) — — — — (477,900 ) Debt issuance costs (7,536 ) — — — — (7,536 ) Intercompany transfers — — (135,170 ) (8,568 ) 143,738 — Issuance of common units for cash, net 140,537 — 140,537 — (140,537 ) 140,537 Distributions to common unitholders (171,993 ) — (171,993 ) — 171,993 (171,993 ) Contributions from noncontrolling interest — — — 725 — 725 Other, net — — 3,216 7,010 (7,010 ) 3,216 Net cash used in financing activities (106,192 ) — (163,410 ) (833 ) 168,184 (102,251 ) Net increase in cash and cash equivalents — — 3,235 (187 ) — 3,048 Cash and cash equivalents at beginning of period 6 — 6,360 663 — 7,029 Cash and cash equivalents at end of period $ 6 $ — $ 9,595 $ 476 $ — $ 10,077 Unaudited Condensed Consolidating Statement of Cash Flows Six Months Ended June 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 $ 80,297 $ — $ 154,169 $ 4,918 $ (135,712 ) $ 103,672 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (247,416 ) — — (247,416 ) Cash distributions received from equity investees - return of investment — — 11,851 — — 11,851 Investments in equity investees — — (1,135 ) — — (1,135 ) Acquisitions — — (25,394 ) — — (25,394 ) Intercompany transfers (223,537 ) — — — 223,537 — Repayments on loan to non-guarantor subsidiary — — 2,979 — (2,979 ) — Contributions in aid of construction costs — — 8,940 — — 8,940 Proceeds from asset sales — — 3,183 — — 3,183 Other, net — — 107 — — 107 Net cash used in investing activities (223,537 ) — (246,885 ) — 220,558 (249,864 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 631,900 — — — — 631,900 Repayments on senior secured credit facility (341,100 ) — — — — (341,100 ) Debt issuance costs (1,539 ) — — — — (1,539 ) Intercompany transfers — — 236,775 (13,238 ) (223,537 ) — Distributions to common unitholders (146,021 ) — (146,021 ) — 146,021 (146,021 ) Other, net — — 607 7,330 (7,330 ) 607 Net cash provided by financing activities 143,240 — 91,361 (5,908 ) (84,846 ) 143,847 Net decrease in cash and cash equivalents — — (1,355 ) (990 ) — (2,345 ) Cash and cash equivalents at beginning of period 6 — 8,288 2,601 — 10,895 Cash and cash equivalents at end of period $ 6 $ — $ 6,933 $ 1,611 $ — $ 8,550 |