Condensed Consolidating Financial Information Disclosure | Condensed Consolidating Financial Information Our $2.6 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 10 for additional information regarding our consolidated debt obligations. The following is condensed consolidating financial information for Genesis Energy, L.P. and subsidiary guarantors: Condensed Consolidating Balance Sheet December 31, 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 $ — $ 8,340 $ 695 $ — $ 9,041 Other current assets 50 — 614,682 12,316 (56 ) 626,992 Total current assets 56 — 623,022 13,011 (56 ) 636,033 Fixed Assets, at cost — — 5,523,431 77,584 — 5,601,015 Less: Accumulated depreciation — — (708,269 ) (26,717 ) — (734,986 ) Net fixed assets — — 4,815,162 50,867 — 4,866,029 Mineral Leaseholds — — 564,506 — — 564,506 Goodwill — — 325,046 — — 325,046 Other assets, net 14,083 — 378,371 126,300 (154,437 ) 364,317 Advances to affiliates 3,808,712 — — 85,423 (3,894,135 ) — Equity investees and other investments — — 381,550 — — 381,550 Investments in subsidiaries 2,689,861 — 82,616 — (2,772,477 ) — Total assets $ 6,512,712 $ — $ 7,170,273 $ 275,601 $ (6,821,105 ) $ 7,137,481 LIABILITIES AND CAPITAL Current liabilities $ 46,086 $ — $ 399,017 $ 11,417 $ (256 ) $ 456,264 Senior secured credit facilities 1,099,200 — — — — 1,099,200 Senior unsecured notes 2,598,918 — — — — 2,598,918 Deferred tax liabilities — — 11,913 — — 11,913 Advances from affiliates — — 3,894,027 — (3,894,027 ) — Other liabilities 45,210 — 182,414 183,237 (154,290 ) 256,571 Total liabilities 3,789,414 — 4,487,371 194,654 (4,048,573 ) 4,422,866 Mezzanine Capital: Class A Convertible Preferred Units 697,151 — — — — 697,151 Partners’ capital, common units 2,026,147 — 2,683,506 89,026 (2,772,532 ) 2,026,147 Accumulated other comprehensive income (loss) (1) — — (604 ) — — (604 ) Noncontrolling interests — — — (8,079 ) — (8,079 ) Total liabilities, mezzanine capital and partners’ capital $ 6,512,712 $ — $ 7,170,273 $ 275,601 $ (6,821,105 ) $ 7,137,481 (1) The entire balance and activity within Accumulated Other Comprehensive Income is related to our pension held within our Guarantor Subsidiaries. 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 and other investments — — 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 facilities 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 Class A Convertible Preferred Units — — — — — — Partners' capital 2,130,331 — 2,586,192 89,727 (2,675,919 ) 2,130,331 Accumulated other comprehensive income (loss) — — — — — — 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 Condensed Consolidating Statement of Operations Year Ended December 31, 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 $ — $ — $ 318,239 $ — $ — $ 318,239 Sodium minerals and sulfur services — — 460,790 9,252 (7,420 ) 462,622 Marine transportation — — 205,287 — — 205,287 Onshore facilities and transportation — — 1,023,293 18,936 — 1,042,229 Total revenues — — 2,007,609 28,188 (7,420 ) 2,028,377 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 967,558 1,089 — 968,647 Marine transportation costs — — 154,606 — — 154,606 Sodium minerals and sulfur services operating costs — — 332,209 9,129 (7,420 ) 333,918 Offshore pipeline transportation operating costs — — 69,225 2,840 — 72,065 General and administrative — — 66,421 — — 66,421 Depreciation and amortization — — 249,980 2,500 — 252,480 Gain on sale of assets — — (40,311 ) — — (40,311 ) Total costs and expenses — — 1,799,688 15,558 (7,420 ) 1,807,826 OPERATING INCOME — — 207,921 12,630 — 220,551 Equity in earnings of equity investees — — 51,046 — — 51,046 Equity in earnings of subsidiaries 276,341 — (520 ) — (275,821 ) — Interest (expense) income, net (176,979 ) — 14,122 (13,905 ) — (176,762 ) Other expense (16,715 ) — — — — (16,715 ) Income before income taxes 82,647 — 272,569 (1,275 ) (275,821 ) 78,120 Income tax benefit (expense) — — 3,928 31 — 3,959 NET INCOME 82,647 — 276,497 (1,244 ) (275,821 ) 82,079 Net loss attributable to noncontrolling interests — — — 568 — 568 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 82,647 $ — $ 276,497 $ (676 ) $ (275,821 ) $ 82,647 Less: Accumulated distributions attributable to Class A Convertible Preferred Units (21,995 ) — — — — (21,995 ) NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 60,652 $ — $ 276,497 $ (676 ) $ (275,821 ) $ 60,652 Condensed Consolidating Statement of Operations Year Ended 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 REVENUES: Offshore pipeline transportation services $ — $ — $ 334,679 $ — $ 334,679 Sodium minerals and sulfur services — — 171,389 7,873 (7,759 ) 171,503 Marine transportation — — 213,021 — — 213,021 Onshore facilities and transportation — — 972,794 20,496 — 993,290 Total revenues — — 1,691,883 28,369 (7,759 ) 1,712,493 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 923,567 1,060 — 924,627 Marine transportation costs — — 142,551 — — 142,551 Sodium minerals and sulfur services operating costs — — 90,711 8,491 (7,759 ) 91,443 Offshore pipeline transportation operating costs — — 68,791 10,833 — 79,624 General and administrative — — 45,625 — — 45,625 Depreciation and amortization — — 219,696 2,500 — 222,196 Total costs and expenses — — 1,490,941 22,884 (7,759 ) 1,506,066 OPERATING INCOME — — 200,942 5,485 — 206,427 Equity in earnings of equity investees — — 47,944 — — 47,944 Equity in earnings of subsidiaries 253,048 — (6,744 ) — (246,304 ) — Interest (expense) income, net (139,799 ) — 14,407 (14,555 ) — (139,947 ) Other expense, net — — — — — — Income before income taxes 113,249 — 256,549 (9,070 ) (246,304 ) 114,424 Income tax expense — — (3,337 ) (5 ) — (3,342 ) NET INCOME 113,249 — 253,212 (9,075 ) (246,304 ) 111,082 Net loss attributable to noncontrolling interests — — — 2,167 — 2,167 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 113,249 $ — $ 253,212 $ (6,908 ) $ (246,304 ) $ 113,249 Less: Accumulated distributions attributable to Class A Convertible Preferred Units — — — — — — NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 113,249 $ — $ 253,212 $ (6,908 ) $ (246,304 ) $ 113,249 Condensed Consolidating Statement of Operations Year Ended 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 REVENUES: Offshore pipeline transportation services $ — $ — $ 137,681 $ 2,549 $ — $ 140,230 Sodium minerals and sulfur services — — 175,132 11,942 (9,194 ) 177,880 Marine transportation — — 238,757 — — 238,757 Onshore facilities and transportation — — 1,665,917 23,745 — 1,689,662 Total revenues — — 2,217,487 38,236 (9,194 ) 2,246,529 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 1,601,972 836 — 1,602,808 Marine transportation costs — — 135,200 — — 135,200 Sodium minerals and sulfur services operating costs — — 94,241 11,759 (9,194 ) 96,806 Offshore pipeline transportation operating costs — — 38,459 1,254 — 39,713 General and administrative — — 64,995 — — 64,995 Depreciation and amortization — — 141,785 8,355 — 150,140 Total costs and expenses — — 2,076,652 22,204 (9,194 ) 2,089,662 OPERATING INCOME — — 140,835 16,032 — 156,867 Equity in earnings of equity investees — — 54,450 — — 54,450 Equity in earnings of subsidiaries 542,226 — 2,053 — (544,279 ) — Gain on basis step up on historical interest — — 332,380 — — 332,380 Interest (expense) income, net (100,494 ) — 15,042 (15,144 ) — (100,596 ) Other income/(expense), net (19,204 ) — 1,675 — — (17,529 ) Income before income taxes 422,528 — 546,435 888 (544,279 ) 425,572 Income tax expense — — (4,036 ) 49 — (3,987 ) NET INCOME $ 422,528 $ — $ 542,399 $ 937 $ (544,279 ) $ 421,585 Net loss attributable to noncontrolling interest $ — $ — $ — $ 943 $ — 943 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 422,528 $ — $ 542,399 $ 1,880 $ (544,279 ) $ 422,528 Less: Accumulated distributions attributable to Class A Convertible Preferred Units $ — $ — $ — $ — $ — — NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 422,528 $ — $ 542,399 $ 1,880 $ (544,279 ) $ 422,528 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 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 (used in) provided by operating activities $ 162,980 $ — $ 481,727 $ (4,585 ) $ (301,264 ) $ 338,858 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (250,593 ) — — (250,593 ) Cash distributions received from equity investees - return of investment — — 20,280 — — 20,280 Investments in equity investees (140,513 ) — (4,647 ) — 140,513 (4,647 ) Acquisitions — — (1,325,759 ) — — (1,325,759 ) Intercompany transfers (1,157,781 ) — — — 1,157,781 — Repayments on loan to non-guarantor subsidiary — — 6,764 — (6,764 ) — Contributions in aid of construction costs — — 124 — — 124 Proceeds from asset sales — — 85,722 — — 85,722 Other, net — — — — — — Net cash (used in) provided by investing activities (1,298,294 ) — (1,468,109 ) — 1,291,530 (1,474,873 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 1,458,700 — — — — 1,458,700 Repayments on senior secured credit facility (1,637,700 ) — — — — (1,637,700 ) Proceeds from issuance of senior unsecured notes, including premium 1,000,000 — — — — 1,000,000 Proceeds from issuance of Class A convertible preferred units, net 726,419 — — — — 726,419 Repayment of senior unsecured notes (204,830 ) — — — — (204,830 ) Debt issuance costs (25,913 ) — — — — (25,913 ) Intercompany transfers — — 1,169,781 (12,000 ) (1,157,781 ) — Issuance of common units for cash, net 140,513 — 140,513 — (140,513 ) 140,513 Distributions to partners/owners (321,875 ) — (321,875 ) — 321,875 (321,875 ) Contributions from noncontrolling interest — — — 2,770 — 2,770 Other, net — — (57 ) 13,847 (13,847 ) (57 ) Net cash provided by financing activities 1,135,314 — 988,362 4,617 (990,266 ) 1,138,027 Net decrease in cash and cash equivalents — — 1,980 32 — 2,012 Cash and cash equivalents at beginning of period 6 — 6,360 663 — 7,029 Cash and cash equivalents at end of period $ 6 $ — $ 8,340 $ 695 $ — $ 9,041 Condensed Consolidating Statement of Cash Flows Year Ended 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 Net cash (used in) provided by operating activities $ 179,853 $ — $ 398,320 $ 9,586 $ (289,421 ) $ 298,338 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (463,100 ) — — (463,100 ) Cash distributions received from equity investees - return of investment — — 21,353 — — 21,353 Investments in equity investees (298,020 ) — — — 298,020 — Acquisitions — — (25,394 ) — — (25,394 ) Intercompany transfers (31,436 ) — — — 31,436 — Repayments on loan to non-guarantor subsidiary — — 6,113 — (6,113 ) — Contributions in aid of construction costs — — 13,374 — — 13,374 Proceeds from assets sales — — 3,609 — — 3,609 Other, net — — (151 ) — — (151 ) Net cash (used in) provided by investing activities (329,456 ) — (444,196 ) — 323,343 (450,309 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 1,115,800 — — — — 1,115,800 Repayments on senior secured credit facility (952,600 ) — — — — (952,600 ) Debt issuance costs (1,578 ) — — — — (1,578 ) Intercompany transfers — — 57,701 (26,264 ) (31,437 ) — Issuance of common units for cash, net 298,020 — 298,020 — (298,020 ) 298,020 Distributions to partners/owners (310,039 ) — (310,039 ) — 310,039 (310,039 ) Contributions from noncontrolling interest — — — 236 — 236 Other, net — — (1,734 ) 14,504 (14,504 ) (1,734 ) Net cash provided by (used in) financing activities 149,603 — 43,948 (11,524 ) (33,922 ) 148,105 Net increase (decrease) in cash and cash equivalents — — (1,928 ) (1,938 ) — (3,866 ) Cash and cash equivalents at beginning of period 6 — 8,288 2,601 — 10,895 Cash and cash equivalents at end of period $ 6 $ — $ 6,360 $ 663 $ — $ 7,029 Condensed Consolidating Statement of Cash Flows Year Ended 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 Net cash (used in) provided by operating activities $ (14,082 ) $ — $ 308,144 $ 45,125 $ (49,651 ) $ 289,536 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (495,774 ) — — (495,774 ) Cash distributions received from equity investees - return of investment 186,026 — 25,645 — (186,026 ) 25,645 Investments in equity investees (633,761 ) — (3,045 ) — 633,761 (3,045 ) Acquisitions — — (1,520,299 ) — — (1,520,299 ) Intercompany transfers (1,240,973 ) — — — 1,240,973 — Repayments on loan to non-guarantor subsidiary — — 5,524 — (5,524 ) — Contributions in aid of construction costs — — 3,179 — — 3,179 Proceeds from asset sales — — 2,811 — — 2,811 Other, net — — (1,976 ) — — (1,976 ) Net cash (used in) provided by investing activities (1,688,708 ) — (1,983,935 ) — 1,683,184 (1,989,459 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 1,525,050 — — — — 1,525,050 Repayments on senior secured credit facility (960,450 ) — — — — (960,450 ) Proceeds from issuance of senior unsecured notes 1,139,718 — — — — 1,139,718 Repayment of senior secured notes (350,000 ) — — — — (350,000 ) Debt issuance costs (28,901 ) — — — — (28,901 ) Distribution to partners/owners (256,389 ) — (256,389 ) — 256,389 (256,389 ) Distributions to noncontrolling interest — — (960 ) — — (960 ) Issuance of common units for cash, net 633,759 — 633,759 — (633,759 ) 633,759 Intercompany transfers — — 1,299,830 (58,857 ) (1,240,973 ) — Other, net — — (471 ) 15,190 (15,190 ) (471 ) Net cash provided by (used in) financing activities 1,702,787 — 1,675,769 (43,667 ) (1,633,533 ) 1,701,356 Net increase (decrease) in cash and cash equivalents (3 ) — (22 ) 1,458 — 1,433 Cash and cash equivalents at beginning of period 9 — 8,310 1,143 — 9,462 Cash and cash equivalents at end of period $ 6 $ — $ 8,288 $ 2,601 $ — $ 10,895 |