Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Our $2.4 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, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated ASSETS Current assets: Cash and cash equivalents $ 6 $ — $ 8,960 $ 728 $ — $ 9,694 Other current assets 75 — 569,457 11,836 (238 ) 581,130 Total current assets 81 — 578,417 12,564 (238 ) 590,824 Fixed assets, at cost — — 5,444,707 77,585 — 5,522,292 Less: Accumulated depreciation — — (655,808 ) (26,092 ) — (681,900 ) Net fixed assets — — 4,788,899 51,493 — 4,840,392 Mineral Leaseholds — — 622,756 — — 622,756 Goodwill — — 325,046 — — 325,046 Other assets, net 15,229 — 382,916 128,306 (151,026 ) 375,425 Advances to affiliates 3,889,517 — — 82,479 (3,971,996 ) — Equity investees — — 383,191 — — 383,191 Investments in subsidiaries 2,666,281 — 81,135 — (2,747,416 ) — Total assets $ 6,571,108 $ — $ 7,162,360 $ 274,842 $ (6,870,676 ) $ 7,137,634 LIABILITIES AND CAPITAL Current liabilities $ 34,731 $ — $ 321,339 $ 8,092 $ (151 ) $ 364,011 Senior secured credit facility 1,372,500 — — — — 1,372,500 Senior unsecured notes 2,358,049 — — — — 2,358,049 Deferred tax liabilities — — 26,399 — — 26,399 Advances from affiliates — — 3,971,992 — (3,971,992 ) — Other liabilities 36,727 — 183,552 187,057 (150,874 ) 256,462 Total liabilities 3,802,007 — 4,503,282 195,149 (4,123,017 ) 4,377,421 Mezzanine Capital: Series A Convertible Preferred Units 691,708 — — — — 691,708 Partners’ capital, common units 2,077,393 — 2,659,078 88,581 (2,747,659 ) 2,077,393 Noncontrolling interests — — — (8,888 ) — (8,888 ) Total liabilities, mezzanine capital and partners’ capital $ 6,571,108 $ — $ 7,162,360 $ 274,842 $ (6,870,676 ) $ 7,137,634 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 Mineral Leaseholds — — — — — — 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 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 Mezzanine Capital: Series A Convertible Preferred Units — — — — — — 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, mezzanine capital 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 September 30, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 80,671 $ — $ — $ 80,671 Sodium minerals and sulfur services — — 109,292 2,069 (1,596 ) 109,765 Marine transportation — — 48,534 — — 48,534 Onshore facilities and transportation — — 242,547 4,597 — 247,144 Total revenues — — 481,044 6,666 (1,596 ) 486,114 COSTS AND EXPENSES: Onshore facilities and transportation — — 225,716 313 — 226,029 Marine transportation costs — — 35,789 — — 35,789 Sodium minerals and sulfur services operating costs — — 78,869 2,092 (1,596 ) 79,365 Offshore pipeline transportation operating costs — — 17,928 762 — 18,690 General and administrative — — 19,409 — — 19,409 Depreciation and amortization — — 63,107 625 — 63,732 Gain on sale of assets — — — — — — Total costs and expenses — — 440,818 3,792 (1,596 ) 443,014 OPERATING INCOME — — 40,226 2,874 — 43,100 Equity in earnings of subsidiaries 55,971 — (388 ) — (55,583 ) — Equity in earnings of equity investees — — 13,044 — — 13,044 Interest (expense) income, net (47,383 ) — 3,450 (3,455 ) — (47,388 ) Other expense (2,276 ) — — — — (2,276 ) Income before income taxes 6,312 — 56,332 (581 ) (55,583 ) 6,480 Income tax benefit (expense) — — (322 ) 2 — (320 ) NET INCOME 6,312 — 56,010 (579 ) (55,583 ) 6,160 Net loss attributable to noncontrolling interest — — — 152 — 152 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 6,312 $ — $ 56,010 $ (427 ) $ (55,583 ) $ 6,312 Less: Accumulated distributions attributable to Series A Convertible Preferred Units (5,469 ) — — — — (5,469 ) NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 843 $ — $ 56,010 $ (427 ) $ (55,583 ) $ 843 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 Sodium minerals and sulfur services — — 45,262 2,981 (2,518 ) 45,725 Marine transportation — — 55,285 — — 55,285 Onshore facilities and transportation — — 264,326 4,997 — 269,323 Total revenues — — 454,590 7,978 (2,518 ) 460,050 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 252,450 255 — 252,705 Marine transportation costs — — 38,490 — — 38,490 Sodium minerals and sulfur services operating costs — — 24,577 3,018 (2,518 ) 25,077 Offshore pipeline transportation operating costs — — 22,533 589 — 23,122 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 expense — — — — — — 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 Less: Accumulated distributions attributable to Series A Convertible Preferred Units — — — — — — NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 32,101 $ — $ 66,850 $ (11 ) $ (66,839 ) $ 32,101 Unaudited Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated REVENUES: Offshore pipeline transportation services $ — $ — $ 243,437 $ — $ — $ 243,437 Sodium minerals and sulfur services — — 197,321 5,968 (5,410 ) 197,879 Marine transportation — — 152,038 — — 152,038 Onshore facilities and transportation — — 700,908 14,066 — 714,974 Total revenues — — 1,293,704 20,034 (5,410 ) 1,308,328 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 661,842 853 — 662,695 Marine transportation costs — — 111,980 — — 111,980 Sodium minerals and sulfur services operating costs — — 132,608 6,137 (5,410 ) 133,335 Offshore pipeline transportation operating costs — — 52,396 2,286 — 54,682 General and administrative — — 38,723 — — 38,723 Depreciation and amortization — — 174,578 1,875 — 176,453 Gain on sale of assets — — (26,684 ) — — (26,684 ) Total costs and expenses — — 1,145,443 11,151 (5,410 ) 1,151,184 OPERATING INCOME — — 148,261 8,883 — 157,144 Equity in earnings of subsidiaries 191,471 — (1,033 ) — (190,438 ) — Equity in earnings of equity investees — — 34,805 — — 34,805 Interest (expense) income, net (122,060 ) — 10,436 (10,493 ) — (122,117 ) Other expense (2,276 ) — — — — (2,276 ) Income before income taxes 67,135 — 192,469 (1,610 ) (190,438 ) 67,556 Income tax expense — — (880 ) 2 — (878 ) NET INCOME 67,135 — 191,589 (1,608 ) (190,438 ) 66,678 Net loss attributable to noncontrolling interest — — — 457 — 457 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 67,135 $ — $ 191,589 $ (1,151 ) $ (190,438 ) $ 67,135 Less: Accumulated distributions attributable to Series A Convertible Preferred Units (5,469 ) — — — — $ (5,469 ) NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 61,666 $ — $ 191,589 $ (1,151 ) $ (190,438 ) $ 61,666 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 Sodium minerals and sulfur services — — 129,671 5,499 (5,585 ) 129,585 Marine transportation — — 159,930 — — 159,930 Onshore facilities and transportation — — 734,560 15,528 — 750,088 Total revenues — — 1,268,998 21,027 (5,585 ) 1,284,440 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 691,763 831 — 692,594 Marine transportation costs — — 105,942 — — 105,942 Sodium minerals and sulfur services operating costs — — 67,190 6,036 (5,585 ) 67,641 Offshore pipeline transportation operating costs — — 61,882 1,850 — 63,732 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 ) Other expense — — — — — — Income before income taxes 91,131 — 198,753 (540 ) (195,624 ) 93,720 Income tax (expense) benefit — — (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 Less: Accumulated distributions attributable to Series A Convertible Preferred Units — — — — — $ — NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 91,131 $ — $ 195,797 $ (173 ) $ (195,624 ) $ 91,131 Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 Genesis Energy, L.P. (Parent and Co-Issuer) Genesis Energy Finance Corporation (Co-Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Genesis Energy, L.P. Consolidated Net cash provided by operating activities $ 142,721 $ — $ 333,709 $ (8,346 ) $ (250,294 ) $ 217,790 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (182,653 ) — — (182,653 ) Cash distributions received from equity investees - return of investment — — 14,517 — — 14,517 Investments in equity investees (140,513 ) — — — 140,513 — Acquisitions — — (1,325,759 ) — — (1,325,759 ) Intercompany transfers (1,238,585 ) — — — 1,238,585 — Repayments on loan to non-guarantor subsidiary — — (159 ) — 159 — Contributions in aid of construction costs — — 124 — — 124 Proceeds from asset sales — — 39,204 — — 39,204 Other, net — — — — — — Net cash used in investing activities (1,379,098 ) — (1,454,726 ) — 1,379,257 (1,454,567 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 1,247,700 — — — — 1,247,700 Repayments on senior secured credit facility (1,153,400 ) — — — — (1,153,400 ) Proceeds from issuance of senior unsecured notes 550,000 — — — — 550,000 Proceeds from issuance of Series A convertible preferred units, net 729,958 — — — — 729,958 Debt issuance costs (17,808 ) — — — — (17,808 ) Intercompany transfers — — 1,242,475 (3,890 ) (1,238,585 ) — Issuance of common units for cash, net 140,513 — 140,513 — (140,513 ) 140,513 Distributions to common unitholders (260,586 ) — (260,586 ) — 260,586 (260,586 ) Contributions from noncontrolling interest — — — 1,850 — 1,850 Other, net — — 1,215 10,451 (10,451 ) 1,215 Net cash used in financing activities 1,236,377 — 1,123,617 8,411 (1,128,963 ) 1,239,442 Net increase in cash and cash equivalents — — 2,600 65 — 2,665 Cash and cash equivalents at beginning of period 6 — 6,360 663 — 7,029 Cash and cash equivalents at end of period $ 6 $ — $ 8,960 $ 728 $ — $ 9,694 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 common unitholders (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 |