Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Our $2.5 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 9 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 March 31, 2018 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 $ — $ 14,677 $ 1,409 $ — $ 16,092 Other current assets 25 — 551,885 12,137 (45 ) 564,002 Total current assets 31 — 566,562 13,546 (45 ) 580,094 Fixed assets, at cost — — 5,575,295 77,585 — 5,652,880 Less: Accumulated depreciation — — (774,919 ) (27,342 ) — (802,261 ) Net fixed assets — — 4,800,376 50,243 — 4,850,619 Mineral Leaseholds — — 563,369 — — 563,369 Goodwill — — 325,046 — — 325,046 Other assets, net 13,083 — 438,693 124,242 (157,803 ) 418,215 Advances to affiliates 3,799,305 — — 89,334 (3,888,639 ) — Equity investees — — 372,493 — — 372,493 Investments in subsidiaries 2,693,391 — 83,624 — (2,777,015 ) — Total assets $ 6,505,810 $ — $ 7,150,163 $ 277,365 $ (6,823,502 ) $ 7,109,836 LIABILITIES AND CAPITAL Current liabilities $ 57,677 $ — $ 348,421 $ 10,137 $ (545 ) $ 415,690 Senior secured credit facility 1,279,000 — — — — 1,279,000 Senior unsecured notes 2,456,749 — — — — 2,456,749 Deferred tax liabilities — — 12,138 — — 12,138 Advances from affiliates — — 3,888,239 — (3,888,239 ) — Other liabilities 48,107 — 214,494 185,456 (157,656 ) 290,401 Total liabilities 3,841,533 — 4,463,292 195,593 (4,046,440 ) 4,453,978 Mezzanine Capital: Class A Convertible Preferred Units 712,687 — — — — 712,687 Partners’ capital, common units 1,951,590 — 2,687,475 89,587 (2,777,062 ) 1,951,590 Accumulated other comprehensive loss (1) — — (604 ) — — (604 ) Noncontrolling interests — — — (7,815 ) — (7,815 ) Total liabilities, mezzanine capital and partners’ capital $ 6,505,810 $ — $ 7,150,163 $ 277,365 $ (6,823,502 ) $ 7,109,836 (1) The entire balance and activity within Accumulated Other Comprehensive Income is related to our pension held within our Guarantor Subsidiaries. Unaudited 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 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. Unaudited Condensed Consolidating Statement of Operations Three Months Ended March 31, 2018 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 $ — $ — $ 73,260 $ — $ — $ 73,260 Sodium minerals and sulfur services — — 285,097 3,066 (2,253 ) 285,910 Marine transportation — — 48,929 — — 48,929 Onshore facilities and transportation — — 312,874 4,835 — 317,709 Total revenues — — 720,160 7,901 (2,253 ) 725,808 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 299,841 272 — 300,113 Marine transportation costs — — 37,847 — — 37,847 Sodium minerals and sulfur services operating costs — — 223,247 2,504 (2,253 ) 223,498 Offshore pipeline transportation operating costs — — 17,662 678 — 18,340 General and administrative — — 11,674 — — 11,674 Depreciation, depletion and amortization — — 74,630 625 — 75,255 Total costs and expenses — — 664,901 4,079 (2,253 ) 666,727 OPERATING INCOME — — 55,259 3,822 — 59,081 Equity in earnings of subsidiaries 69,592 — 632 — (70,224 ) — Equity in earnings of equity investees — — 10,572 — — 10,572 Interest (expense) income, net (56,314 ) — 3,544 (3,366 ) — (56,136 ) Other expense (5,244 ) — — — — (5,244 ) Income before income taxes 8,034 — 70,007 456 (70,224 ) 8,273 Income tax expense — — (377 ) 2 — (375 ) NET INCOME 8,034 — 69,630 458 (70,224 ) 7,898 Net loss attributable to noncontrolling interest — — — 136 — 136 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 8,034 $ — $ 69,630 $ 594 $ (70,224 ) $ 8,034 Less: Accumulated distributions attributable to Class A Convertible Preferred Units (16,888 ) — — — — $ (16,888 ) NET INCOME(LOSS) AVAILABLE TO COMMON UNIT HOLDERS $ (8,854 ) $ — $ 69,630 $ 594 $ (70,224 ) $ (8,854 ) Unaudited Condensed Consolidating Statement of Operations Three Months Ended March 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 $ — $ — $ 85,128 $ — $ 85,128 Sodium minerals and sulfur services — — 45,034 1,810 (1,798 ) 45,046 Marine transportation — — 50,302 — — 50,302 Onshore facilities and transportation — — 230,070 4,945 — 235,015 Total revenues — — 410,534 6,755 (1,798 ) 415,491 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 214,071 261 — 214,332 Marine transportation costs — — 37,242 — — 37,242 Sodium minerals and sulfur services operating costs — — 27,153 2,009 (1,798 ) 27,364 Offshore pipeline transportation operating costs — — 17,106 762 — 17,868 General and administrative — — 9,976 — — 9,976 Depreciation, depletion and amortization — — 55,487 625 — 56,112 Total costs and expenses — — 361,035 3,657 (1,798 ) 362,894 OPERATING INCOME — — 49,499 3,098 — 52,597 Equity in earnings of subsidiaries 63,809 — (250 ) — (63,559 ) — Equity in earnings of equity investees — — 11,335 — — 11,335 Interest (expense) income, net (36,719 ) — 3,520 (3,540 ) — (36,739 ) Income before income taxes 27,090 — 64,104 (442 ) (63,559 ) 27,193 Income tax (expense) benefit — — (255 ) — — (255 ) NET INCOME 27,090 — 63,849 (442 ) (63,559 ) 26,938 Net loss attributable to noncontrolling interest — — — 152 — 152 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 27,090 $ — $ 63,849 $ (290 ) $ (63,559 ) $ 27,090 Less: Accumulated distributions attributable to Class A Convertible Preferred Units — — — — — — NET INCOME AVAILABLE TO COMMON UNIT HOLDERS $ 27,090 $ — $ 63,849 $ (290 ) $ (63,559 ) $ 27,090 Unaudited Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 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 $ 18,637 $ — $ 124,180 $ 874 $ (57,363 ) $ 86,328 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (66,051 ) — — (66,051 ) Cash distributions received from equity investees - return of investment — — 9,277 — — 9,277 Acquisitions — — — — — — Intercompany transfers 9,407 — — — (9,407 ) — Repayments on loan to non-guarantor subsidiary — — 1,801 — (1,801 ) — Contributions in aid of construction costs — — — — — — Proceeds from asset sales — — 6 — — 6 Other, net — — — — — — Net cash used in investing activities 9,407 — (54,967 ) — (11,208 ) (56,768 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 333,800 — — — — 333,800 Repayments on senior secured credit facility (154,000 ) — — — — (154,000 ) Proceeds from issuance of senior unsecured notes — — — — — — Repayment of senior unsecured notes (145,170 ) — — — — (145,170 ) Proceeds from issuance of Class A convertible preferred units, net — — — — — — Debt issuance costs (159 ) — — — — (159 ) Intercompany transfers — — (5,496 ) (3,911 ) 9,407 — Issuance of common units for cash, net — — — — — — Distributions to common unitholders (62,515 ) — (62,515 ) — 62,515 (62,515 ) Contributions from noncontrolling interest — — — 400 — 400 Other, net — — 5,135 3,351 (3,351 ) 5,135 Net cash used in financing activities (28,044 ) — (62,876 ) (160 ) 68,571 (22,509 ) Net increase in cash and cash equivalents — — 6,337 714 — 7,051 Cash and cash equivalents at beginning of period 6 — 8,340 695 — 9,041 Cash and cash equivalents at end of period $ 6 $ — $ 14,677 $ 1,409 $ — $ 16,092 Unaudited Condensed Consolidating Statement of Cash Flows Three Months Ended March 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 provided by operating activities $ 42,623 $ — $ 95,023 $ 2,007 $ (78,613 ) $ 61,040 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (61,292 ) — — (61,292 ) Cash distributions received from equity investees - return of investment — — 9,083 — — 9,083 Investments in equity investees (140,968 ) — — — 140,968 — Acquisitions — — — — — — Intercompany transfers 109,342 — — — (109,342 ) — Repayments on loan to non-guarantor subsidiary — — 1,627 — (1,627 ) — Contributions in aid of construction costs — — 124 — — 124 Proceeds from asset sales — — 1,234 — — 1,234 Other, net — — — — — — Net cash used in investing activities (31,626 ) — (49,224 ) — 29,999 (50,851 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 216,700 — — — — 216,700 Repayments on senior secured credit facility (284,900 ) — — — — (284,900 ) Debt issuance costs — — — — — — Intercompany transfers — — (104,276 ) (5,066 ) 109,342 — Issuance of common units for cash, net 140,968 — 140,968 — (140,968 ) 140,968 Distributions to common unitholders (83,765 ) — (83,765 ) — 83,765 (83,765 ) Distributions to noncontrolling interest — — — — — — Other, net — — 4,552 3,525 (3,525 ) 4,552 Net cash provided by financing activities (10,997 ) — (42,521 ) (1,541 ) 48,614 (6,445 ) Net decrease in cash and cash equivalents — — 3,278 466 — 3,744 Cash and cash equivalents at beginning of period 6 — 6,360 663 — 7,029 Cash and cash equivalents at end of period $ 6 $ — $ 9,638 $ 1,129 $ — $ 10,773 |