Condensed Consolidating Financial Information Disclosure | 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 11 for additional information regarding our consolidated debt obligations. On September 23, 2019, the Company announced the expansion of its Granger facilities which included designating the subsidiaries that hold our Alkali business (such subsidiaries, collectively, the "Alkali business") as unrestricted subsidiaries of the Company under our indentures. Following such designation, the Alkali business no longer guarantees our notes. The Alkali business was historically presented as guarantor subsidiaries in footnote 25 and because of such designation will now be presented as non-guarantor subsidiaries. The changes made did not impact the Company's previously reported consolidated net operating results, financial position, or cash flows. The condensed consolidating balance sheet as of December 31, 2018 and 2017 and the condensed consolidating statements of operations and cash flows for the years ended December 31, 2018 and 2017 included in footnote 25 of the Notes to Consolidated Financial Statements have been retrospectively adjusted to reflect these updates to our non-guarantor subsidiaries as though the Alkali business had been presented as non-guarantor subsidiaries in all periods presented. It is noted that the statements of operations and cash flows for the year ended December 31, 2016 were not retrospectively adjusted as we did not acquire our Alkali business until the third quarter of 2017. All other information in the 2018 Form 10-K remains unchanged. The following is condensed consolidating financial information for Genesis Energy, L.P. and subsidiary guarantors: Condensed Consolidating Balance Sheet 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 $ — $ 4,924 $ 5,370 $ — $ 10,300 Other current assets 50 — 229,411 203,683 (165 ) 432,979 Total current assets 56 — 234,335 209,053 (165 ) 443,279 Fixed Assets, at cost — — 4,602,164 838,694 — 5,440,858 Less: Accumulated depreciation — — (926,830 ) (96,995 ) — (1,023,825 ) Net fixed assets — — 3,675,334 741,699 — 4,417,033 Mineral Leaseholds, net of accumulated depletion — — — 560,481 — 560,481 Goodwill — — 301,959 — — 301,959 Other assets, net 10,776 — 435,540 122,538 (167,620 ) 401,234 Advances to affiliates 3,305,568 — — 105,917 (3,411,485 ) — Equity investees — — 355,085 — — 355,085 Investments in subsidiaries 2,648,510 — 1,413,334 — (4,061,844 ) — Total assets $ 5,964,910 $ — $ 6,415,587 $ 1,739,688 $ (7,641,114 ) $ 6,479,071 LIABILITIES AND CAPITAL Current liabilities $ 39,342 $ — $ 177,104 $ 116,498 $ (110 ) $ 332,834 Senior secured credit facility 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 — — 3,411,515 — (3,411,515 ) — Other liabilities 40,840 — 174,249 211,590 (167,481 ) 259,198 Total liabilities 3,512,645 — 3,775,444 328,088 (3,579,106 ) 4,037,071 Mezzanine Capital: Class A Convertible Preferred Units 761,466 — — — — 761,466 Partners’ capital, common units 1,690,799 — 2,640,143 1,421,865 (4,062,008 ) 1,690,799 Accumulated other comprehensive income (loss) (1) — — — 939 — 939 Noncontrolling interests — — — (11,204 ) — (11,204 ) Total liabilities, mezzanine capital and partners’ capital $ 5,964,910 $ — $ 6,415,587 $ 1,739,688 $ (7,641,114 ) $ 6,479,071 (1) The entire balance and activity within Accumulated Other Comprehensive Income is related to our pension held within our Non-Guarantor Subsidiaries. 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 $ — $ 5,230 $ 3,805 $ — $ 9,041 Other current assets 50 — 407,821 219,177 (56 ) 626,992 Total current assets 56 — 413,051 222,982 (56 ) 636,033 Fixed Assets, at cost — — 4,832,639 768,376 — 5,601,015 Less: Accumulated depreciation — — (692,193 ) (42,793 ) — (734,986 ) Net fixed assets — — 4,140,446 725,583 — 4,866,029 Mineral Leaseholds, net of accumulated depletion — — — 564,506 — 564,506 Goodwill — — 325,046 — — 325,046 Other assets, net 14,083 — 372,201 132,470 (154,437 ) 364,317 Advances to affiliates 3,808,712 — — 86,023 (3,894,735 ) — Equity investees — — 381,550 — — 381,550 Investments in subsidiaries 2,689,861 — 1,431,550 — (4,121,411 ) — Total assets $ 6,512,712 $ — $ 7,063,844 $ 1,731,564 $ (8,170,639 ) $ 7,137,481 LIABILITIES AND CAPITAL Current liabilities $ 46,086 $ — $ 307,673 $ 102,761 $ (256 ) $ 456,264 Senior secured credit facility 1,099,200 — — — — 1,099,200 Senior unsecured notes, net of debt issuance costs 2,598,918 — — — — 2,598,918 Deferred tax liabilities — — 11,913 — — 11,913 Advances from affiliates — — 3,894,627 — (3,894,627 ) — Other liabilities 45,210 — 166,705 198,946 (154,290 ) 256,571 Total liabilities 3,789,414 — 4,380,918 301,707 (4,049,173 ) 4,422,866 Mezzanine Capital Class A Convertible Preferred Units 697,151 — — — — 697,151 Partners' capital 2,026,147 — 2,682,926 1,438,540 (4,121,466 ) 2,026,147 Accumulated other comprehensive income (loss) — — — (604 ) — (604 ) Noncontrolling interests — — — (8,079 ) — (8,079 ) Total liabilities, mezzanine capital and partners’ capital $ 6,512,712 $ — $ 7,063,844 $ 1,731,564 $ (8,170,639 ) $ 7,137,481 Condensed Consolidating Statement of Operations 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 REVENUES: Offshore pipeline transportation services $ — $ — $ 284,544 $ — $ — $ 284,544 Sodium minerals and sulfur services — — 333,495 856,221 (15,282 ) 1,174,434 Marine transportation — — 219,937 — — 219,937 Onshore facilities and transportation — — 1,214,235 19,620 — 1,233,855 Total revenues — — 2,052,211 875,841 (15,282 ) 2,912,770 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 1,125,528 1,202 — 1,126,730 Marine transportation operating costs — — 172,527 — — 172,527 Sodium minerals and sulfur services operating costs — — 259,573 668,200 (15,282 ) 912,491 Offshore pipeline transportation operating costs — — 64,272 2,396 — 66,668 General and administrative — — 65,481 1,417 — 66,898 Depreciation, depletion and amortization — — 249,820 63,370 — 313,190 Gain on sale of assets — — (42,264 ) — — (42,264 ) Impairment expense — — 100,093 26,189 — 126,282 Total costs and expenses — — 1,995,030 762,774 (15,282 ) 2,742,522 OPERATING INCOME — — 57,181 113,067 — 170,248 Equity in earnings of equity investees — — 43,626 — — 43,626 Equity in earnings of subsidiaries 219,615 — 107,684 — (327,299 ) — Interest expense, net (230,713 ) — 13,027 (11,505 ) — (229,191 ) Other income 5,023 — — — — 5,023 Income before income taxes (6,075 ) — 221,518 101,562 (327,299 ) (10,294 ) Income tax benefit (expense) — — (1,727 ) 229 — (1,498 ) NET INCOME (LOSS) (6,075 ) — 219,791 101,791 (327,299 ) (11,792 ) Net loss attributable to noncontrolling interests — — — 5,717 — 5,717 NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ (6,075 ) $ — $ 219,791 $ 107,508 $ (327,299 ) $ (6,075 ) Less: Accumulated distributions attributable to Class A Convertible Preferred Units (69,801 ) — — — — (69,801 ) NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS $ (75,876 ) $ — $ 219,791 $ 107,508 $ (327,299 ) $ (75,876 ) 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 — — 185,852 286,263 (9,493 ) 462,622 Marine transportation — — 205,287 — — 205,287 Onshore facilities and transportation — — 1,023,293 18,936 — 1,042,229 Total revenues — — 1,732,671 305,199 (9,493 ) 2,028,377 COSTS AND EXPENSES: Onshore facilities and transportation costs — — 967,558 1,089 — 968,647 Marine transportation operating costs — — 154,606 — — 154,606 Sodium minerals and sulfur services operating costs — — 117,224 226,187 (9,493 ) 333,918 Offshore pipeline transportation operating costs — — 69,225 2,840 — 72,065 General and administrative — — 65,862 559 — 66,421 Depreciation, depletion and amortization — — 232,303 20,177 — 252,480 Gain on sale of assets — — (40,311 ) — — (40,311 ) Total costs and expenses — — 1,566,467 250,852 (9,493 ) 1,807,826 OPERATING INCOME — — 166,204 54,347 — 220,551 Equity in earnings of equity investees — — 51,046 — — 51,046 Equity in earnings of subsidiaries 276,341 — 41,494 — (317,835 ) — Interest expense, net (176,979 ) — 13,825 (13,608 ) — (176,762 ) Other expense (16,715 ) — — — — (16,715 ) Income before income taxes 82,647 — 272,569 40,739 (317,835 ) 78,120 Income tax expense — — 3,928 31 — 3,959 NET INCOME 82,647 — 276,497 40,770 (317,835 ) 82,079 Net loss attributable to noncontrolling interests — — — 568 — 568 NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 82,647 $ — $ 276,497 $ 41,338 $ (317,835 ) $ 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 $ 41,338 $ (317,835 ) $ 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 operating 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, net (139,799 ) — 14,407 (14,555 ) — (139,947 ) 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 interest $ — $ — $ — $ 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 Cash Flows 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 Net cash (used in) provided by operating activities $ 28,784 $ — $ 514,096 $ 207,870 $ (360,711 ) $ 390,039 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (114,887 ) (80,480 ) — (195,367 ) Cash distributions received from equity investees - return of investment — — 28,979 — — 28,979 Investments in equity investees — — (3,018 ) — — (3,018 ) Intercompany transfers 503,144 — — — (503,144 ) — Repayments on loan to non-guarantor subsidiary — — 7,484 — (7,484 ) — Proceeds from asset sales — — 310,099 — — 310,099 Net cash provided by (used in) provided by investing activities 503,144 — 228,657 (80,480 ) (510,628 ) 140,693 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on senior secured credit facility 980,700 — — — — 980,700 Repayments on senior secured credit facility (1,109,800 ) — — — — (1,109,800 ) Repayment of senior unsecured notes (145,170 ) — — — — (145,170 ) Debt issuance costs (242 ) — — — — (242 ) Intercompany transfers — — (485,506 ) (17,638 ) 503,144 — Distributions to partners/owners (257,416 ) — (257,416 ) (123,900 ) 381,316 (257,416 ) Contributions from noncontrolling interest — — — 2,592 — 2,592 Other, net — — (137 ) 13,121 (13,121 ) (137 ) Net cash provided by (used in) financing activities (531,928 ) — (743,059 ) (125,825 ) 871,339 (529,473 ) Net increase in cash and cash equivalents — — (306 ) 1,565 — 1,259 Cash and cash equivalents at beginning of period 6 — 5,230 3,805 — 9,041 Cash and cash equivalents at end of period $ 6 $ — $ 4,924 $ 5,370 $ — $ 10,300 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 $ — $ 448,873 $ 30,467 $ (318,764 ) $ 323,556 CASH FLOWS FROM INVESTING ACTIVITIES: Payments to acquire fixed and intangible assets — — (236,151 ) (14,442 ) — (250,593 ) Cash distributions received from equity investees - return of investment — — 35,582 — — 35,582 Investments in equity investees (140,513 ) — (4,647 ) — 140,513 (4,647 ) Acquisitions — — (759 ) (1,325,000 ) — (1,325,759 ) Intercompany transfers (1,157,781 ) — (1,325,000 ) — 2,482,781 — Repayments on loan to non-guarantor subsidiary — — 6,764 — (6,764 ) — Contributions in aid of construction costs — — 124 — — 124 Proceeds from assets sales — — 85,722 — — 85,722 Net cash (used in) provided by investing activities (1,298,294 ) — (1,438,365 ) (1,339,442 ) 2,616,530 (1,459,571 ) 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 Series A convertible preferred 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 1,313,000 (2,482,781 ) — Issuance of common units for cash, net 140,513 — 140,513 — (140,513 ) 140,513 Distributions to partners/owners (321,875 ) — (321,875 ) (17,500 ) 339,375 (321,875 ) Contributions from noncontrolling interest — — — 2,770 — 2,770 Other, net — — (57 ) 13,847 (13,847 ) (57 ) Net cash provided by (used in) financing activities 1,135,314 — 988,362 1,312,117 (2,297,766 ) 1,138,027 Net increase in cash and cash equivalents — — (1,130 ) 3,142 — 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 $ — $ 5,230 $ 3,805 $ — $ 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 $ — $ 382,734 $ 9,586 $ (289,421 ) $ 282,752 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 — — 36,939 — — 36,939 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 asset sales — — 3,609 — — 3,609 Other, net — — (151 ) — — (151 ) Net cash (used in) provided by investing activities (329,456 ) — (428,610 ) — 323,343 (434,723 ) 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 ) Distribution to partners/owners (310,039 ) — (310,039 ) — 310,039 (310,039 ) Contributions from noncontrolling interest — — — 236 — 236 Issuance of common units for cash, net 298,020 — 298,020 — (298,020 ) 298,020 Intercompany transfers — — 57,701 (26,264 ) (31,437 ) — 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 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 |