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, 2019 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 $ — $ 8,757 $ 2,441 $ — $ 11,204 Other current assets 25 — 416,882 12,135 (176 ) 428,866 Total current assets 31 — 425,639 14,576 (176 ) 440,070 Fixed assets, at cost — — 5,393,893 77,584 — 5,471,477 Less: Accumulated depreciation — — (1,063,357 ) (29,842 ) — (1,093,199 ) Net fixed assets — — 4,330,536 47,742 — 4,378,278 Mineral Leaseholds, net of accumulated depletion — — 559,161 — — 559,161 Goodwill — — 301,959 — — 301,959 Other assets, net 9,978 — 429,612 115,503 (170,796 ) 384,297 Advances to affiliates 3,238,092 — — 104,796 (3,342,888 ) — Equity investees — — 350,258 — — 350,258 Investments in subsidiaries 2,656,379 — 62,191 — (2,718,570 ) — Right of Use Assets, net $ — $ — $ 200,788 $ — $ — 200,788 Total assets $ 5,904,480 $ — $ 6,660,144 $ 282,617 $ (6,232,430 ) $ 6,614,811 LIABILITIES AND CAPITAL Current liabilities $ 53,616 $ — $ 302,557 $ 47,029 $ (236 ) $ 402,966 Senior secured credit facility 942,000 — — — — 942,000 Senior unsecured notes, net of debt issuance costs 2,464,247 — — — — 2,464,247 Deferred tax liabilities — — 12,828 — — 12,828 Advances from affiliates — — 3,342,790 — (3,342,790 ) — Other liabilities 44,795 — 352,381 176,092 (170,658 ) 402,610 Total liabilities 3,504,658 — 4,010,556 223,121 (3,513,684 ) 4,224,651 Mezzanine Capital: Class A Convertible Preferred Units 778,508 — — — — 778,508 Partners’ capital, common units 1,621,314 — 2,648,649 70,097 (2,718,746 ) 1,621,314 Accumulated other comprehensive income (1) — — 939 — — 939 Noncontrolling interests — — — (10,601 ) — (10,601 ) Total liabilities, mezzanine capital and partners’ capital $ 5,904,480 $ — $ 6,660,144 $ 282,617 $ (6,232,430 ) $ 6,614,811 (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 Year Ended December 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 $ — $ 8,968 $ 1,326 $ — $ 10,300 Other current assets 50 — 419,809 13,285 (165 ) 432,979 Total current assets 56 — 428,777 14,611 (165 ) 443,279 Fixed assets, at cost — — 5,363,274 77,584 — 5,440,858 Less: Accumulated depreciation — — (994,609 ) (29,216 ) — (1,023,825 ) Net fixed assets — — 4,368,665 48,368 — 4,417,033 Mineral Leaseholds, net of accumulated depletion — — 560,481 — — 560,481 Goodwill — — 301,959 — — 301,959 Other assets, net 10,776 — 440,312 117,766 (167,620 ) 401,234 Advances to affiliates 3,305,568 — — 103,061 (3,408,629 ) — Equity investees and other investments — — 355,085 — — 355,085 Investments in subsidiaries 2,648,510 — 60,532 — (2,709,042 ) — Total assets $ 5,964,910 $ — $ 6,515,811 $ 283,806 $ (6,285,456 ) $ 6,479,071 LIABILITIES AND CAPITAL Current liabilities $ 39,342 $ — $ 266,252 $ 27,350 $ (110 ) $ 332,834 Senior secured credit facilities 970,100 — — — — 970,100 Senior unsecured notes, net of debt issuance costs 2,462,363 — — — — 2,462,363 Deferred tax liabilities — — 12,576 — — 12,576 Advances from affiliates — — 3,408,659 — (3,408,659 ) — Other liabilities 40,840 — 188,181 197,658 (167,481 ) 259,198 Total liabilities 3,512,645 — 3,875,668 225,008 (3,576,250 ) 4,037,071 Mezzanine Capital: Class A Convertible Preferred Units 761,466 — — — — 761,466 Partners’ capital, common units 1,690,799 — 2,639,204 70,002 (2,709,206 ) 1,690,799 Accumulated other comprehensive loss (1) — — 939 — — 939 Noncontrolling interests — — — (11,204 ) — (11,204 ) Total liabilities, mezzanine capital and partners’ capital $ 5,964,910 $ — $ 6,515,811 $ 283,806 $ (6,285,456 ) $ 6,479,071 (1) The entire balance and activity within Accumulated Other Comprehensive Loss is related to our pension plan held within our Guarantor Subsidiaries. Unaudited Condensed Consolidating Statement of Operations Three Months Ended March 31, 2019 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 $ — $ — $ 78,317 $ — $ — $ 78,317 Sodium minerals and sulfur services — — 275,177 2,109 (1,800 ) 275,486 Marine transportation — — 56,650 — — 56,650 Onshore facilities and transportation — — 204,806 4,750 — 209,556 Total revenues — — 614,950 6,859 (1,800 ) 620,009 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 187,397 360 — 187,757 Marine transportation costs — — 43,733 — — 43,733 Sodium minerals and sulfur services operating costs — — 218,218 2,290 (1,800 ) 218,708 Offshore pipeline transportation operating costs — — 18,421 37 — 18,458 General and administrative — — 11,686 — — 11,686 Depreciation, depletion and amortization — — 77,013 625 — 77,638 Total costs and expenses — — 556,468 3,312 (1,800 ) 557,980 OPERATING INCOME — — 58,482 3,547 — 62,029 Equity in earnings of subsidiaries 75,287 — 417 — (75,704 ) — Equity in earnings of equity investees — — 12,997 — — 12,997 Interest (expense) income, net (56,357 ) — 3,831 (3,175 ) — (55,701 ) Other expense (2,976 ) — — — — (2,976 ) Income before income taxes 15,954 — 75,727 372 (75,704 ) 16,349 Income tax expense — — (402 ) — — (402 ) NET INCOME 15,954 — 75,325 372 (75,704 ) 15,947 Net loss attributable to noncontrolling interest — — — 7 — 7 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 15,954 $ — $ 75,325 $ 379 $ (75,704 ) $ 15,954 Less: Accumulated distributions attributable to Class A Convertible Preferred Units (18,415 ) — — — — $ (18,415 ) NET LOSS AVAILABLE TO COMMON UNIT HOLDERS $ (2,461 ) $ — $ 75,325 $ 379 $ (75,704 ) $ (2,461 ) 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 Cash Flows Three Months Ended March 31, 2019 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 $ 28,043 $ — $ 149,165 $ (918 ) $ (62,269 ) $ 114,021 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (29,612 ) — — (29,612 ) Cash distributions received from equity investees - return of investment — — 5,425 — — 5,425 Intercompany transfers 67,476 — — — (67,476 ) — Repayments on loan to non-guarantor subsidiary — — 1,992 — (1,992 ) — Proceeds from asset sales — — 358 — — 358 Net cash used in investing activities 67,476 — (21,837 ) — (69,468 ) (23,829 ) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 187,500 — — — — 187,500 Repayments on senior secured credit facility (215,600 ) — — — — (215,600 ) Intercompany transfers — — (65,741 ) (1,735 ) 67,476 — Distributions to common unitholders (67,419 ) — (67,419 ) — 67,419 (67,419 ) Contributions from noncontrolling interest — — — 610 — 610 Other, net — — 5,621 3,158 (3,158 ) 5,621 Net cash used in financing activities (95,519 ) — (127,539 ) 2,033 131,737 (89,288 ) Net increase (decrease) in cash and cash equivalents — — (211 ) 1,115 — 904 Cash and cash equivalents at beginning of period 6 — 8,968 1,326 — 10,300 Cash and cash equivalents at end of period $ 6 $ — $ 8,757 $ 2,441 $ — $ 11,204 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 Intercompany transfers 9,407 — — — (9,407 ) — Repayments on loan to non-guarantor subsidiary — — 1,801 — (1,801 ) — Proceeds from asset sales — — 6 — — 6 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 ) Repayment of senior unsecured notes (145,170 ) — — — — (145,170 ) Debt issuance costs (159 ) — — — — (159 ) Intercompany transfers — — (5,496 ) (3,911 ) 9,407 — 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 provided by 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 |