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 September 30, 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 $ — $ 9,114 $ 2,758 $ — $ 11,878 Other current assets 75 — 737,367 12,152 (48 ) 749,546 Total current assets 81 — 746,481 14,910 (48 ) 761,424 Fixed assets, at cost — — 5,328,399 77,585 — 5,405,984 Less: Accumulated depreciation — — (854,241 ) (28,592 ) — (882,833 ) Net fixed assets — — 4,474,158 48,993 — 4,523,151 Mineral Leaseholds — — 561,593 — — 561,593 Goodwill — — 325,046 — — 325,046 Other assets, net 11,574 — 440,330 119,979 (164,397 ) 407,486 Advances to affiliates 3,626,049 — — 97,840 (3,723,889 ) — Equity investees — — 356,468 — — 356,468 Investments in subsidiaries 2,691,191 — 80,157 — (2,771,348 ) — Total assets $ 6,328,895 $ — $ 6,984,233 $ 281,722 $ (6,659,682 ) $ 6,935,168 LIABILITIES AND CAPITAL Current liabilities $ 55,001 $ — $ 369,890 $ 5,352 $ (237 ) $ 430,006 Senior secured credit facility 1,220,700 — — — — 1,220,700 Senior unsecured notes 2,460,486 — — — — 2,460,486 Deferred tax liabilities — — 12,293 — — 12,293 Advances from affiliates — — 3,723,793 — (3,723,793 ) — Other liabilities 48,572 — 193,480 198,025 (164,254 ) 275,823 Total liabilities 3,784,759 — 4,299,456 203,377 (3,888,284 ) 4,399,308 Mezzanine Capital: Class A Convertible Preferred Units 744,727 — — — — 744,727 Partners’ capital, common units 1,799,409 — 2,685,381 86,017 (2,771,398 ) 1,799,409 Accumulated other comprehensive loss (1) — — (604 ) — — (604 ) Noncontrolling interests — — — (7,672 ) — (7,672 ) Total liabilities, mezzanine capital and partners’ capital $ 6,328,895 $ — $ 6,984,233 $ 281,722 $ (6,659,682 ) $ 6,935,168 (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 plan held within our Guarantor Subsidiaries. Unaudited Condensed Consolidating Statement of Operations Three Months Ended September 30, 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 $ — $ — $ 70,115 $ — $ — $ 70,115 Sodium minerals and sulfur services — — 290,837 2,922 (2,037 ) 291,722 Marine transportation — — 56,296 — — 56,296 Onshore facilities and transportation — — 322,275 4,870 — 327,145 Total revenues — — 739,523 7,792 (2,037 ) 745,278 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 294,969 287 — 295,256 Marine transportation costs — — 44,195 — — 44,195 Sodium minerals and sulfur services operating costs — — 228,721 2,520 (2,037 ) 229,204 Offshore pipeline transportation operating costs — — 17,217 536 — 17,753 General and administrative — — 24,209 — — 24,209 Depreciation, depletion and amortization — — 85,229 6,647 — 91,876 Gain on sale of assets — — (3,363 ) — — (3,363 ) Total costs and expenses — — 691,177 9,990 (2,037 ) 699,130 OPERATING INCOME — — 48,346 (2,198 ) — 46,148 Equity in earnings of subsidiaries 57,078 — (4,047 ) — (53,031 ) — Equity in earnings of equity investees — — 9,492 — — 9,492 Interest (expense) income, net (59,229 ) — 3,683 (3,273 ) — (58,819 ) Other income 1,828 — — — — 1,828 Income before income taxes (323 ) — 57,474 (5,471 ) (53,031 ) (1,351 ) Income tax benefit (expense) — — (383 ) 100 — (283 ) NET INCOME (LOSS) (323 ) — 57,091 (5,371 ) (53,031 ) (1,634 ) Net loss attributable to noncontrolling interest — — — 1,311 — 1,311 NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ (323 ) $ — $ 57,091 $ (4,060 ) $ (53,031 ) $ (323 ) Less: Accumulated distributions attributable to Class A Convertible Preferred Units $ (17,635 ) $ — $ — $ — $ — $ (17,635 ) NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS $ (17,958 ) $ — $ 57,091 $ (4,060 ) $ (53,031 ) $ (17,958 ) 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 costs — — 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, depletion 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 (LOSS) 6,312 — 56,010 (579 ) (55,583 ) 6,160 Net loss attributable to noncontrolling interest — — — 152 — 152 NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 6,312 $ — $ 56,010 $ (427 ) $ (55,583 ) $ 6,312 Less: Accumulated distributions attributable to Class A Convertible Preferred Units (5,469 ) — — — — (5,469 ) NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS $ 843 $ — $ 56,010 $ (427 ) $ (55,583 ) $ 843 Unaudited Condensed Consolidating Statement of Operations Nine Months Ended September 30, 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 $ — $ — $ 213,344 $ — $ — $ 213,344 Sodium minerals and sulfur services — — 873,863 9,056 (6,406 ) 876,513 Marine transportation — — 161,410 — — 161,410 Onshore facilities and transportation — — 957,618 14,589 — 972,207 Total revenues — — 2,206,235 23,645 (6,406 ) 2,223,474 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 900,638 836 — 901,474 Marine transportation costs — — 126,259 — — 126,259 Sodium minerals and sulfur services operating costs — — 683,989 7,636 (6,406 ) 685,219 Offshore pipeline transportation operating costs — — 51,688 1,845 — 53,533 General and administrative — — 49,412 — — 49,412 Depreciation, depletion and amortization — — 236,914 7,897 — 244,811 Gain on sale of assets — — (3,363 ) — — (3,363 ) Total costs and expenses — — 2,045,537 18,214 (6,406 ) 2,057,345 OPERATING INCOME — — 160,698 5,431 — 166,129 Equity in earnings of subsidiaries 196,103 — (2,518 ) — (193,585 ) — Equity in earnings of equity investees — — 28,388 — — 28,388 Interest (expense) income, net (173,791 ) — 10,887 (9,960 ) — (172,864 ) Other expense (3,604 ) — — — — (3,604 ) Income before income taxes 18,708 — 197,455 (4,529 ) (193,585 ) 18,049 Income tax benefit (expense) — — (1,238 ) 324 — (914 ) NET INCOME (LOSS) 18,708 — 196,217 (4,205 ) (193,585 ) 17,135 Net loss attributable to noncontrolling interest — — — 1,573 — 1,573 NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 18,708 $ — $ 196,217 $ (2,632 ) $ (193,585 ) $ 18,708 Less: Accumulated distributions attributable to Class A Convertible Preferred Units (51,780 ) — — — — $ (51,780 ) NET INCOME(LOSS) AVAILABLE TO COMMON UNIT HOLDERS $ (33,072 ) $ — $ 196,217 $ (2,632 ) $ (193,585 ) $ (33,072 ) 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, depletion 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) benefit — — (880 ) 2 — (878 ) NET INCOME (LOSS) 67,135 — 191,589 (1,608 ) (190,438 ) 66,678 Net loss attributable to noncontrolling interest — — — 457 — 457 NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 67,135 $ — $ 191,589 $ (1,151 ) $ (190,438 ) $ 67,135 Less: Accumulated distributions attributable to Class A Convertible Preferred Units (5,469 ) — — — — (5,469 ) NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS $ 61,666 $ — $ 191,589 $ (1,151 ) $ (190,438 ) $ 61,666 Unaudited Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 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 $ 32,474 $ — $ 448,273 $ 2,587 $ (175,770 ) $ 307,564 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (152,868 ) — — (152,868 ) Cash distributions received from equity investees - return of investment — — 26,042 — — 26,042 Investments in equity investees — — (2,960 ) — — (2,960 ) Intercompany transfers 182,662 — — — (182,662 ) — Repayments on loan to non-guarantor subsidiary — — 5,541 — (5,541 ) — Proceeds from asset sales — — 36,859 — — 36,859 Net cash used in investing activities 182,662 — (87,386 ) — (188,203 ) (92,927 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 759,800 — — — — 759,800 Repayments on senior secured credit facility (638,300 ) — — — — (638,300 ) Repayment of senior unsecured notes (145,170 ) — — — — (145,170 ) Debt issuance costs (242 ) — — — — (242 ) Intercompany transfers — — (170,245 ) (12,417 ) 182,662 — Distributions to common unitholders (191,224 ) — (191,224 ) — 191,224 (191,224 ) Contributions from noncontrolling interest — — — 1,980 — 1,980 Other, net — — 1,356 9,913 (9,913 ) 1,356 Net cash used in financing activities (215,136 ) — (360,113 ) (524 ) 363,973 (211,800 ) Net increase in cash and cash equivalents — — 774 2,063 — 2,837 Cash and cash equivalents at beginning of period 6 — 8,340 695 — 9,041 Cash and cash equivalents at end of period $ 6 $ — $ 9,114 $ 2,758 $ — $ 11,878 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 (used in) operating activities $ 142,721 $ — $ 322,309 $ (8,346 ) $ (250,294 ) $ 206,390 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 — — 25,917 — — 25,917 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 Net cash used in investing activities (1,379,098 ) — (1,443,326 ) — 1,379,257 (1,443,167 ) 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 Class 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 provided by 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 |