Financial Data and Key Metrics Changes - The first quarter of 2022 was characterized by strong performance, with expectations for financial performance to be towards the high end of previously announced segment margin and adjusted EBITDA guidance ranges of $620 million to $640 million and $565 million to $585 million respectively [47][48] - The company experienced a negative impact of approximately $8 million on quarterly margins due to operational and mechanical issues in the offshore business [25][56] Business Segment Data and Key Metrics Changes - The Offshore Pipeline Transportation segment faced operational challenges but is expected to recover, with first oil from Murphy's King's Quay and BP's Argos projects anticipated to ramp up production significantly [27][29] - The Sodium Minerals and Sulfur Services segment saw robust demand for soda ash, with strong pricing driven by tight global supply conditions [31][35] - The Marine Transportation segment is experiencing improved market conditions, with increased demand for refined products and high utilization rates across the fleet [42][75] Market Data and Key Metrics Changes - Global soda ash supply is tight, with China's production capacity operating at lower rates than needed to balance supply and demand, contributing to higher prices [32][70] - The marine transportation market is benefiting from geopolitical events and increased demand for transportation fuels, leading to higher rates and utilization [74][75] Company Strategy and Development Direction - The company is focusing on expanding its Gulf of Mexico infrastructure, with significant investments planned for new upstream developments and pipeline expansions [11][12][22] - The strategy includes long-term take-or-pay arrangements that provide stable revenue streams and support future growth [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting strong pricing in the soda ash segment and recovery in marine transportation as key drivers for future performance [46] - The outlook remains positive, with expectations for continued growth in volumes and financial performance from the Gulf of Mexico franchise [30][46] Other Important Information - The company has entered into agreements to provide gathering and transportation services for new deepwater upstream developments, with expected production handling capacity of approximately 160,000 barrels of oil per day [11][12] - The sale of the Independence Hub platform is expected to generate a gain of $32 million, which will positively impact financial results in the second quarter [20][48] Q&A Session Summary Question: Insights on business performance and outperformance areas - Management noted that the soda ash business significantly outperformed expectations in the first quarter, with continued strong pricing anticipated [55] Question: Details on offshore business cadence and new projects - Management confirmed that the offshore business is expected to normalize, with a projected run rate of approximately $80 million per quarter as new projects ramp up [58][60] Question: Cadence on capital expenditures for the sink pipeline - Management indicated that capital expenditures will be front-loaded, with take-or-pay arrangements beginning in late 2024 [67][68] Question: Drivers of tight soda ash market conditions - Management highlighted that the tight market is primarily driven by supply constraints, with reduced inventories and production issues affecting availability [70][71] Question: Expectations for marine segment performance - Management anticipates a potential step change in marine segment contributions due to high demand and utilization rates, with rates exceeding previous highs [74][75]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Genesis Energy, L.P. for the quarter ended March 31, 2022, including balance sheets, statements of operations, comprehensive income (loss), partners' capital, and cash flows, along with detailed notes explaining accounting policies, segment information, debt, equity, and other financial instruments [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | March 31, 2022 (unaudited) (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :--------------------------------------- | :------------------------------- | | **ASSETS** | | | | Cash and cash equivalents | $9,547 | $19,987 | | Accounts receivable - trade, net | $531,791 | $400,334 | | Total current assets | $669,599 | $542,484 | | Net fixed assets | $3,911,770 | $3,912,185 | | Total assets | $6,019,199 | $5,905,801 | | **LIABILITIES AND CAPITAL** | | | | Accounts payable - trade | $365,935 | $264,316 | | Total current liabilities | $597,205 | $496,939 | | Senior secured credit facility | $94,800 | $49,000 | | Senior unsecured notes, net | $2,932,003 | $2,930,505 | | Total liabilities | $4,076,093 | $3,925,666 | | Partners' capital | $885,749 | $930,452 | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total revenues | $631,947 | $521,219 | | Total costs and expenses | $580,276 | $493,198 | | Operating income | $51,671 | $28,021 | | Net income (loss) | $4,449 | $(29,435) | | Net loss attributable to Genesis Energy, L.P. | $(5,250) | $(34,224) | | Net loss per common unit (Basic and Diluted) | $(0.20) | $(0.43) | [Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net income (loss) | $4,449 | $(29,435) | | Other comprehensive income: Decrease in benefit plan liability | $122 | $122 | | Total Comprehensive income (loss) | $4,571 | $(29,313) | | Comprehensive loss attributable to Genesis Energy, L.P. | $(5,128) | $(34,102) | [Unaudited Condensed Consolidated Statements of Partners' Capital](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Partners%27%20Capital) | Metric | December 31, 2021 (in thousands) | March 31, 2022 (in thousands) | | :------------------------------------------ | :------------------------------- | :------------------------------ | | Partners' capital, beginning of period | $930,452 | $930,452 | | Net income (loss) | $(5,250) | $(3,374) | | Cash distributions to partners | $(18,387) | $(18,387) | | Distributions to Class A Convertible Preferred unitholders | $(18,684) | $(18,684) | | Partners' capital, end of period | $885,749 | $885,749 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by operating activities | $54,245 | $77,159 | | Net cash used in investing activities | $(75,514) | $(30,051) | | Net cash provided by (used in) financing activities | $10,829 | $(40,339) | | Net increase (decrease) in cash and cash equivalents and restricted cash | $(10,440) | $6,769 | | Cash and cash equivalents and restricted cash at end of period | $14,552 | $33,787 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Basis of Presentation and Consolidation](index=9&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation%20and%20Consolidation) - Genesis Energy, L.P. is a growth-oriented master limited partnership focused on the midstream crude oil and natural gas industry and natural soda ash production, primarily in the Gulf Coast, Wyoming, and Gulf of Mexico[23](index=23&type=chunk) - The company manages its businesses through four reportable segments: Offshore pipeline transportation, Sodium minerals and sulfur services, Onshore facilities and transportation, and Marine transportation[24](index=24&type=chunk)[27](index=27&type=chunk) [2. Recent Accounting Developments](index=9&type=section&id=2.%20Recent%20Accounting%20Developments) - The company is evaluating ASU 2020-04, Reference Rate Reform (Topic 848), regarding the discontinuation of LIBOR in 2023, and has not yet determined the impact on its financial statements related to its senior secured credit facility[27](index=27&type=chunk) [3. Revenue Recognition](index=10&type=section&id=3.%20Revenue%20Recognition) | Revenue Category | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :----------------- | :--------------------------------------------- | :--------------------------------------------- | | Fee-based revenues | $137,473 | $129,109 | | Product Sales | $467,575 | $369,601 | | Refinery Services | $26,899 | $22,509 | | Total revenues | $631,947 | $521,219 | - The majority of contracts qualify for expedients or exemptions from disclosing unsatisfied performance obligations, with remaining long-term contracts primarily in Offshore Pipeline Transportation and Onshore Facilities and Transportation[30](index=30&type=chunk)[31](index=31&type=chunk) [4. Lease Accounting](index=11&type=section&id=4.%20Lease%20Accounting) - The company leases transportation equipment, terminals, land, facilities, and office space, with lease terms varying from short to long term, and recognizes lease expense for short-term leases (under 12 months) on a straight-line basis[33](index=33&type=chunk) - As a lessor, the company generated **$4.1 million** in lease revenues from the M/T American Phoenix in Q1 2022, up from **$3.4 million** in Q1 2021[36](index=36&type=chunk) [5. Inventories](index=12&type=section&id=5.%20Inventories) | Inventory Component | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Petroleum products | $795 | $998 | | Crude oil | $8,962 | $11,834 | | Caustic soda | $6,654 | $5,690 | | NaHS | $18,308 | $17,040 | | Raw materials - Alkali operations | $7,760 | $7,599 | | Work-in-process - Alkali operations | $10,058 | $7,496 | | Finished goods, net - Alkali operations | $17,669 | $13,681 | | Materials and supplies, net - Alkali operations | $13,888 | $13,620 | | Total | $84,094 | $77,958 | - Inventories are valued at the lower of cost or net realizable value; no adjustment was made in Q1 2022, but a **$2.0 million** reduction was recorded in Q4 2021[38](index=38&type=chunk) [6. Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations](index=13&type=section&id=6.%20Fixed%20Assets%2C%20Mineral%20Leaseholds%2C%20and%20Asset%20Retirement%20Obligations) | Fixed Asset Category | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :------------------------------------ | :------------------------------ | :------------------------------- | | Crude oil and natural gas pipelines | $2,840,622 | $2,839,443 | | Alkali facilities, machinery & equipment | $675,940 | $670,880 | | Marine vessels | $1,018,919 | $1,018,284 | | Construction in progress | $400,840 | $350,137 | | Net fixed assets | $3,911,770 | $3,912,185 | | Mineral leaseholds, net | $547,985 | $549,005 | | Depreciation expense (Q1 2022 vs Q1 2021) | $65,750 vs $62,702 | | | Depletion expense (Q1 2022 vs Q1 2021) | $1,020 vs $912 | | | Asset Retirement Obligation (ARO) | Amount (in thousands) | | :-------------------------------- | :-------------------- | | ARO liability balance, Dec 31, 2021 | $220,906 | | Accretion expense | $3,447 | | Settlements | $(1,461) | | ARO liability balance, Mar 31, 2022 | $222,892 | [7. Equity Investees](index=14&type=section&id=7.%20Equity%20Investees) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Genesis' share of operating earnings | $16,010 | $24,533 | | Amortization of differences attributable to Genesis' carrying value of equity investments | $(3,566) | $(3,873) | | Net equity in earnings | $12,444 | $20,660 | | Distributions received | $19,018 | $29,516 | - Poseidon Oil Pipeline Company, L.L.C., **64% owned by Genesis**, is the most significant equity investment, with its revolving credit facility non-recourse to Genesis and secured by Poseidon's assets[49](index=49&type=chunk)[51](index=51&type=chunk) [8. Intangible Assets](index=15&type=section&id=8.%20Intangible%20Assets) | Intangible Asset Category | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------- | :------------------------------ | :------------------------------- | | Marine contract intangibles | $184 | $193 | | Offshore pipeline contract intangibles | $102,627 | $104,707 | | Other | $23,972 | $22,163 | | Total | $126,783 | $127,063 | | Amortization expense (Q1 2022 vs Q1 2021) | $2,588 vs $2,600 | | - Estimated amortization expense for the next five years is projected to be **$8.988 million** for the remainder of 2022, **$11.733 million** for 2023, **$11.368 million** for 2024, **$11.143 million** for 2025, and **$10.843 million** for 2026[52](index=52&type=chunk) [9. Debt](index=16&type=section&id=9.%20Debt) | Debt Instrument | March 31, 2022 (Net Value, in thousands) | December 31, 2021 (Net Value, in thousands) | | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Senior secured credit facility-Revolving Loan | $94,800 | $49,000 | | 5.625% senior unsecured notes due 2024 | $339,243 | $339,029 | | 6.500% senior unsecured notes due 2025 | $530,679 | $530,382 | | 6.250% senior unsecured notes due 2026 | $356,584 | $356,389 | | 8.000% senior unsecured notes due 2027 | $993,803 | $993,408 | | 7.750% senior unsecured notes due 2028 | $711,694 | $711,297 | | Total long-term debt | $3,026,803 | $2,979,505 | - The company's new credit agreement, entered April 8, 2021, provides a **$950 million** senior secured credit facility, maturing March 15, 2024, with a **$650 million** Revolving Loan and a **$300 million** Term Loan (repaid in full Nov 2021)[54](index=54&type=chunk) - As of March 31, 2022, **$94.8 million** was outstanding under the Revolving Loan, with **$553.7 million** available for borrowings, subject to covenants[56](index=56&type=chunk) [10. Partners' Capital, Mezzanine Capital and Distributions](index=17&type=section&id=10.%20Partners%27%20Capital%2C%20Mezzanine%20Capital%20and%20Distributions) - As of March 31, 2022, the company had **122,539,221 Class A common units**, **39,997 Class B common units**, and **25,336,778 Class A Convertible Preferred Units** outstanding[60](index=60&type=chunk) | Distribution For | Date Paid | Per Unit Amount | Total Amount (in thousands) | | :--------------- | :---------- | :-------------- | :-------------------------- | | **Common Unitholders** | | | | | 2021 4th Quarter | Feb 14, 2022 | $0.15 | $18,387 | | 2022 1st Quarter | May 13, 2022 | $0.15 | $18,387 | | **Class A Convertible Preferred Unitholders** | | | | | 2021 4th Quarter | Feb 14, 2022 | $0.7374 | $18,684 | | 2022 1st Quarter | May 13, 2022 | $0.7374 | $18,684 | - Redeemable noncontrolling interests, primarily from Alkali Holdings preferred units purchased by BXC for the Granger Optimization Project, totaled **$267.2 million** as of March 31, 2022[69](index=69&type=chunk)[70](index=70&type=chunk)[76](index=76&type=chunk) [11. Net Loss Per Common Unit](index=20&type=section&id=11.%20Net%20Loss%20Per%20Common%20Unit) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net loss attributable to Genesis Energy, L.P. | $(5,250) | $(34,224) | | Less: Accumulated distributions attributable to Class A Convertible Preferred Units | $(18,684) | $(18,684) | | Net loss attributable to common unitholders | $(23,934) | $(52,908) | | Weighted average outstanding units | 122,579 | 122,579 | | Basic and diluted net loss per common unit | $(0.20) | $(0.43) | - The assumed conversion of Class A Convertible Preferred Units was anti-dilutive for both periods and thus not included in diluted EPS calculation[79](index=79&type=chunk) [12. Business Segment Information](index=21&type=section&id=12.%20Business%20Segment%20Information) - The company manages its businesses through four reportable segments: Offshore pipeline transportation, Sodium minerals and sulfur services, Onshore facilities and transportation, and Marine transportation[81](index=81&type=chunk)[84](index=84&type=chunk) | Segment | Segment Margin (Q1 2022, in thousands) | Segment Margin (Q1 2021, in thousands) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | | Offshore pipeline transportation | $70,904 | $84,269 | | Sodium minerals and sulfur services | $67,375 | $43,720 | | Onshore facilities and transportation | $7,036 | $20,999 | | Marine transportation | $12,137 | $7,109 | | Total Segment Margin | $157,452 | $156,097 | | Segment | Total Assets (March 31, 2022, in thousands) | Total Assets (December 31, 2021, in thousands) | | :-------------------------------- | :------------------------------------------ | :--------------------------------------------- | | Offshore pipeline transportation | $2,101,728 | $2,103,140 | | Sodium minerals and sulfur services | $2,149,589 | $2,132,588 | | Onshore facilities and transportation | $1,014,005 | $923,064 | | Marine transportation | $698,209 | $703,030 | | Total consolidated assets | $6,019,199 | $5,905,801 | [13. Transactions with Related Parties](index=24&type=section&id=13.%20Transactions%20with%20Related%20Parties) | Transaction Type | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Revenues from services and fees to Poseidon | $3,238 | $3,786 | | Revenues from product sales to ANSAC | $88,182 | $67,955 | | Amounts paid to CEO for aircraft use | $165 | $165 | | Charges for services from Poseidon | $255 | $240 | | Charges for services from ANSAC | $845 | $178 | - The company provides management and administrative services to Poseidon (**64% owned**) and is a member of ANSAC, an organization for promoting U.S. natural soda ash sales outside the U.S[92](index=92&type=chunk)[93](index=93&type=chunk) [14. Supplemental Cash Flow Information](index=25&type=section&id=14.%20Supplemental%20Cash%20Flow%20Information) | Component of Operating Assets and Liabilities | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Accounts receivable (Increase) decrease | $(131,249) | $(99,504) | | Inventories (Increase) decrease | $(282) | $27,450 | | Accounts payable Increase (decrease) | $107,747 | $38,994 | | Accrued liabilities Increase (decrease) | $(15,513) | $22,561 | | Net changes in components of operating assets and liabilities | $(29,169) | $(5,062) | - Interest and commitment fees paid increased to **$69.8 million** in Q1 2022 from **$35.4 million** in Q1 2021, primarily due to the timing of interest payments on 2027 Notes[98](index=98&type=chunk) - Liabilities incurred for fixed and intangible asset additions not yet paid increased to **$45.0 million** in Q1 2022 from **$27.1 million** in Q1 2021, mainly due to the Granger Optimization Project (GOP) and offshore growth capital expenditures[99](index=99&type=chunk) [15. Derivatives](index=25&type=section&id=15.%20Derivatives) - The company uses exchange-traded futures, options, and swap contracts to hedge commodity price exposure (crude oil, fuel oil, natural gas, petroleum products), with most petroleum product derivatives not designated as accounting hedges[100](index=100&type=chunk) | Derivative Type | Three Months Ended March 31, 2022 (Gain/Loss, in thousands) | Three Months Ended March 31, 2021 (Gain/Loss, in thousands) | | :------------------------------------ | :-------------------------------------------------------- | :-------------------------------------------------------- | | Commodity derivatives (designated hedges) | $(1,170) | $(5,897) | | Commodity derivatives (undesignated hedges) | $6,048 | $(3,921) | | Natural Gas Swap | $(1,102) | $(67) | | Preferred Distribution Rate Reset Election | $(4,258) | $(18,438) | - The Preferred Distribution Rate Reset Election, an embedded derivative in Class A Convertible Preferred Units, resulted in an unrealized loss of **$4.3 million** in Q1 2022 and **$18.4 million** in Q1 2021, recorded in 'Other expense'[112](index=112&type=chunk)[120](index=120&type=chunk) [16. Fair-Value Measurements](index=28&type=section&id=16.%20Fair-Value%20Measurements) | Financial Instrument | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--------------------------------- | :------------------------------ | :------------------------------- | | Commodity derivatives (Assets) | $7,844 (Level 1: $7,544, Level 2: $300) | $2,226 (Level 1: $359, Level 2: $1,867) | | Commodity derivatives (Liabilities) | $(2,287) (Level 1: $(1,341), Level 2: $(946)) | $(3,197) (Level 1: $(2,589), Level 2: $(608)) | | Preferred Distribution Rate Reset Election (Liabilities) | $(87,468) (Level 3) | $(83,210) (Level 3) | - The fair value of the embedded derivative feature (Preferred Distribution Rate Reset Election) is based on a **Level 3 valuation model**, which includes management judgment on inputs like common unit price, dividend yield, discount yield, default probabilities, and equity volatility[120](index=120&type=chunk) - The fair value of senior unsecured notes was approximately **$3.0 billion** at both March 31, 2022, and December 31, 2021, classified as a **Level 2 fair value measurement**[122](index=122&type=chunk) [17. Commitments and Contingencies](index=29&type=section&id=17.%20Commitments%20and%20Contingencies) - The company is subject to environmental laws and regulations, and lawsuits in the normal course of business, but does not expect current matters to materially affect its financial position, results of operations, or cash flows[123](index=123&type=chunk)[124](index=124&type=chunk) [18. Subsequent Events](index=30&type=section&id=18.%20Subsequent%20Events) - On April 29, 2022, the company agreed to sell its Independence Hub platform for **$40 million** gross proceeds (**$8 million** attributable to noncontrolling interests), expecting to recognize a gain of approximately **$40 million** in Q2 2022[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three months ended March 31, 2022, compared to the same period in 2021, covering overall performance, segment-specific results, liquidity, capital resources, and non-GAAP financial measures, highlighting key drivers of change and future outlook [Overview](index=31&type=section&id=Overview) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net Loss Attributable to Genesis Energy, L.P. | $(5,250) | $(34,224) | | Cash flow from operating activities | $54,200 | $77,200 | | Available Cash before Reserves | $55,700 | $54,500 | | Segment Margin | $157,500 | $156,100 | - The improvement in Net Loss was primarily driven by increased operating income in the sodium minerals and sulfur services segment due to higher export pricing in the Alkali Business and a reduced unrealized loss from the Class A Convertible Preferred Units embedded derivative[129](index=129&type=chunk) - Cash flow from operating activities decreased due to changes in working capital, mainly higher interest payments in Q1 2022[130](index=130&type=chunk) [Covid-19, Ukraine War and Market Update](index=32&type=section&id=Covid-19%2C%20Ukraine%20War%20and%20Market%20Update) - The Covid-19 pandemic and the war in Ukraine have caused continued volatility in commodity prices, impacting oil, natural gas, petroleum products, and industrial products[135](index=135&type=chunk) - Management continues to monitor the market for potential impairment triggering events but believes core business fundamentals remain strong, with a focus on deleveraging the balance sheet[136](index=136&type=chunk)[137](index=137&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) [Revenues and Costs and Expenses](index=33&type=section&id=Revenues%20and%20Costs%20and%20Expenses) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total revenues | $631,947 | $521,219 | | Total costs and expenses | $580,276 | $493,198 | | Operating income | $51,671 | $28,021 | - Revenues increased by **$110.7 million (21%)** and total costs and expenses increased by **$87.1 million (18%)** in Q1 2022 compared to Q1 2021, leading to a **$23.7 million** increase in operating income[139](index=139&type=chunk) - The increase in operating income was primarily driven by higher export pricing in the Alkali Business within the sodium minerals and sulfur services segment[139](index=139&type=chunk) [Segment Margin](index=34&type=section&id=Segment%20Margin) | Segment | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Offshore pipeline transportation | $70,904 | $84,269 | | Sodium minerals and sulfur services | $67,375 | $43,720 | | Onshore facilities and transportation | $7,036 | $20,999 | | Marine transportation | $12,137 | $7,109 | | Total Segment Margin | $157,452 | $156,097 | - Total Segment Margin increased by **$1.4 million (1%)** in Q1 2022 compared to Q1 2021[132](index=132&type=chunk) [Offshore Pipeline Transportation Segment](index=36&type=section&id=Offshore%20Pipeline%20Transportation%20Segment) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Offshore crude oil pipeline revenue, net | $60,868 | $62,662 | | Offshore natural gas pipeline revenue | $9,069 | $10,397 | | Offshore pipeline transportation Segment Margin | $70,904 | $84,269 | | Crude oil pipelines (avg barrels/day, 100% basis) | 518,889 | 601,057 | | Natural gas transportation volumes (MMBtus/day, 100% basis) | 223,662 | 325,669 | - Segment Margin decreased by **$13.4 million (16%)** due to unplanned operational maintenance downtime, incremental producer downtime, and lower distributions from equity investments (specifically Poseidon)[150](index=150&type=chunk) - Future volumes are expected to increase from the King's Quay floating production system (first oil April 2022) and Argos floating production system (first oil expected Q3 2022)[152](index=152&type=chunk) [Sodium Minerals and Sulfur Services Segment](index=37&type=section&id=Sodium%20Minerals%20and%20Sulfur%20Services%20Segment) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | NaHS volumes (Dry short tons) | 32,169 | 28,802 | | Soda Ash volumes (short tons sold) | 744,788 | 762,820 | | Revenues associated with Alkali Business (in thousands) | $203,659 | $167,324 | | Segment Margin (in thousands) | $67,375 | $43,720 | | Average index price for NaOH per DST | $972 | $648 | - Segment Margin increased by **$23.7 million (54%)** due to higher export pricing in the Alkali Business and increased volumes and pricing in refinery services, driven by strong global demand and tight supply[155](index=155&type=chunk) - The company plans to restart its original Granger production facility (**500,000 tons/year**) in Q1 2023 and expects first production from the Granger Optimization Project (**750,000 tons/year**) in Q3 2023[155](index=155&type=chunk) [Onshore Facilities and Transportation Segment](index=38&type=section&id=Onshore%20Facilities%20and%20Transportation%20Segment) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Gathering, marketing, and logistics revenue | $213,644 | $178,562 | | Segment Margin | $7,036 | $20,999 | | Onshore crude oil pipelines total (avg barrels/day) | 113,373 | 110,059 | | Crude oil and petroleum products sales (avg barrels/day) | 23,887 | 31,462 | | Rail unload volumes (avg barrels/day) | 2,505 | 40,252 | - Segment Margin decreased by **$14.0 million (66%)** primarily due to **$17.5 million** in cash receipts from the previously owned NEJD pipeline in Q1 2021, which did not recur in Q1 2022[163](index=163&type=chunk) - The decrease was partially offset by higher volumes on the Texas pipeline, which benefited from the CHOPS pipeline being back in service[163](index=163&type=chunk) [Marine Transportation Segment](index=40&type=section&id=Marine%20Transportation%20Segment) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Inland freight revenues | $21,036 | $17,515 | | Offshore freight revenues | $18,938 | $14,526 | | Total segment revenues | $55,774 | $40,331 | | Segment Margin | $12,137 | $7,109 | | Inland Barge Utilization | 90.3% | 72.0% | | Offshore Barge Utilization | 96.6% | 95.7% | - Segment Margin increased by **$5.0 million (71%)** due to higher utilization and day rates in both inland and offshore businesses, including the M/T American Phoenix[167](index=167&type=chunk) - The company continues to enter into short-term contracts, believing current day rates have not fully recovered from cyclical lows[167](index=167&type=chunk) [Other Costs, Interest, and Income Taxes](index=40&type=section&id=Other%20Costs%2C%20Interest%2C%20and%20Income%20Taxes) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Total general and administrative expenses | $15,122 | $11,666 | | Total depreciation, depletion and amortization expense | $69,506 | $66,286 | | Net interest expense | $55,104 | $57,829 | - General and administrative expenses increased by **$3.5 million** due to higher corporate costs and long-term incentive compensation[169](index=169&type=chunk) - Net interest expense decreased by **$2.7 million** due to lower outstanding balance on the senior secured credit facility and higher capitalized interest, partially offset by increased interest on senior unsecured notes[173](index=173&type=chunk)[174](index=174&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) [General](index=42&type=section&id=General) - The company's new credit agreement (April 2021) provides a **$950 million** senior secured credit facility, with the Term Loan fully repaid in November 2021 from the sale of a **36% minority interest** in CHOPS[177](index=177&type=chunk) - As of March 31, 2022, the company had **$553.7 million** available borrowing capacity under its Revolving Loan, with no scheduled long-term debt maturities until 2024[179](index=179&type=chunk) - A **$40 million** sale of the Independence Hub platform in April 2022 (net **$32 million** to ownership) will provide additional borrowing capacity[179](index=179&type=chunk) [Capital Resources](index=42&type=section&id=Capital%20Resources) - Long-term debt totaled approximately **$3.0 billion** at March 31, 2022, consisting of **$94.8 million** under the senior secured credit facility and **$2.9 billion** in senior unsecured notes[182](index=182&type=chunk) - The Granger Optimization Project (GOP) completion is extended to H2 2023, with BXC committing up to **$351.8 million** in Alkali Holdings preferred units, of which **250,114 units** were outstanding as of March 31, 2022[183](index=183&type=chunk)[184](index=184&type=chunk) - The company has a universal shelf registration statement (2021 Shelf) on file with the SEC, allowing for unlimited equity and debt securities issuance until April 2024 to meet future liquidity needs[186](index=186&type=chunk) [Cash Flows from Operations](index=43&type=section&id=Cash%20Flows%20from%20Operations) - Net cash flows provided by operating activities decreased to **$54.2 million** in Q1 2022 from **$77.2 million** in Q1 2021, primarily due to changes in working capital and higher interest payments[193](index=193&type=chunk) - Operating cash flows are impacted by changes in inventory, timing of accounts payable and receivable, and margin funding for commodity derivatives[187](index=187&type=chunk)[191](index=191&type=chunk) [Capital Expenditures and Distributions Paid to Our Unitholders](index=44&type=section&id=Capital%20Expenditures%20and%20Distributions%20Paid%20to%20Our%20Unitholders) | Capital Expenditure Type | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Total maintenance capital expenditures | $21,917 | $26,153 | | Total growth capital expenditures | $51,921 | $9,882 | | Total capital expenditures for fixed and intangible assets | $73,838 | $36,035 | | Capital expenditures related to equity investees | $1,323 | $0 | | Total capital expenditures | $75,161 | $36,035 | [Growth Capital Expenditures](index=44&type=section&id=Growth%20Capital%20Expenditures) - The Granger Optimization Project (GOP) is anticipated to be completed in H2 2023, increasing production by approximately **750,000 tons per year**, with remaining capital expenditures now funded internally[196](index=196&type=chunk) - The company expects to spend approximately **$600 million gross ($500 million net)** over the next three years to expand the CHOPS pipeline and construct a new **105-mile SYNC pipeline** for deepwater developments[197](index=197&type=chunk)[198](index=198&type=chunk) - Growth capital expenditures will be funded by available borrowing capacity under the Revolving Loan and increasing cash flows from operations, driven by new offshore volumes and favorable Alkali Business pricing[199](index=199&type=chunk) [Maintenance Capital Expenditures](index=45&type=section&id=Maintenance%20Capital%20Expenditures) - Maintenance capital expenditures in Q1 2022 primarily related to marine transportation (barge and fleet upgrades) and the Alkali Business (equipment and facilities maintenance), as well as offshore transportation assets[200](index=200&type=chunk) [Distributions to Unitholders](index=45&type=section&id=Distributions%20to%20Unitholders) - The company declared a quarterly distribution of **$0.15 per common unit** and **$0.7374 per Class A Convertible Preferred Unit** for Q1 2022, payable May 13, 2022[202](index=202&type=chunk) [Guarantor Summarized Financial Information](index=45&type=section&id=Guarantor%20Summarized%20Financial%20Information) - The company's **$3.0 billion** senior unsecured notes are fully and unconditionally guaranteed by all **100% owned domestic Guarantor Subsidiaries**, which largely own assets outside the Alkali Business[203](index=203&type=chunk) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :------------------------------------ | :------------------------------ | :------------------------------- | | Current assets | $438,728 | $325,666 | | Fixed assets, net | $2,179,728 | $2,197,127 | | Non-current assets | $812,652 | $817,199 | | Current liabilities | $461,609 | $341,782 | | Non-current liabilities | $3,386,132 | $3,334,091 | | Class A Convertible Preferred Units | $790,115 | $790,115 | | Revenues (Q1 2022) | $405,096 | | | Operating income (Q1 2022) | $12,907 | | | Net loss (Q1 2022) | $(34,307) | | | Net loss attributable to common unitholders (Q1 2022) | $(52,991) | | [Non-GAAP Financial Measure Reconciliations](index=47&type=section&id=Non-GAAP%20Financial%20Measure%20Reconciliations) | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net loss attributable to Genesis Energy, L.P. | $(5,250) | $(34,224) | | Income tax expense | $304 | $222 | | Depreciation, depletion, amortization and accretion | $72,948 | $68,997 | | Plus (minus) Select Items, net | $12,211 | $46,495 | | Maintenance capital utilized | $(13,500) | $(12,800) | | Cash tax expense | $(125) | $(100) | | Distributions to preferred unitholders | $(18,684) | $(18,684) | | Redeemable noncontrolling interest redemption value adjustments | $7,823 | $4,791 | | Available Cash before Reserves | $55,727 | $54,500 | [Non-GAAP Financial Measures](index=48&type=section&id=Non-GAAP%20Financial%20Measures) [Segment Margin (Non-GAAP Definition)](index=48&type=section&id=Segment%20Margin%20%28Non-GAAP%20Definition%29) - Segment Margin is defined as revenues less product costs, operating expenses, and segment general and administrative expenses (net of noncontrolling interests), plus or minus applicable Select Items, excluding asset sale gains/losses[213](index=213&type=chunk) [Available Cash before Reserves (Non-GAAP Definition)](index=48&type=section&id=Available%20Cash%20before%20Reserves%20%28Non-GAAP%20Definition%29) - Available Cash before Reserves is a non-GAAP measure used to assess financial and operating performance, project viability, and ability to satisfy non-discretionary cash requirements and make discretionary payments[215](index=215&type=chunk)[220](index=220&type=chunk) [Maintenance Capital Requirements](index=49&type=section&id=Maintenance%20Capital%20Requirements) - Maintenance capital expenditures are capitalized costs necessary to maintain existing assets' service capability, which can be discretionary or non-discretionary[217](index=217&type=chunk) - The company's maintenance capital expenditures have become more discretionary and material since 2014, particularly for non-pipeline assets like marine vessels and trucks[219](index=219&type=chunk) [Maintenance Capital Utilized](index=50&type=section&id=Maintenance%20Capital%20Utilized) - Maintenance capital utilized is defined as the portion of previously incurred maintenance capital expenditures used during the quarter, allocated ratably over the useful lives of projects/components[221](index=221&type=chunk) - This measure serves as a proxy for non-discretionary maintenance capital expenditures and considers the relationship among maintenance capital expenditures, operating expenses, and depreciation[222](index=222&type=chunk) [Critical Accounting Estimates](index=50&type=section&id=Critical%20Accounting%20Estimates) - There have been no new or material changes to the critical accounting estimates discussed in the company's Annual Report[223](index=223&type=chunk) [Forward Looking Statements](index=50&type=section&id=Forward%20Looking%20Statements) - The report contains forward-looking statements regarding future activities, financial performance, and growth plans, which involve risks, uncertainties, and assumptions that could cause actual results to differ materially[224](index=224&type=chunk) - Key factors influencing future results include demand and price trends for commodities, execution of business strategies, throughput levels, regulatory changes, capital availability, and global economic conditions[225](index=225&type=chunk)[228](index=228&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there have been no material changes to the quantitative and qualitative disclosures about market risk previously provided in the company's Annual Report, with further details on derivative instruments and hedging activities available in Note 15 - No material changes have occurred in the quantitative and qualitative disclosures about market risk since the Annual Report[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of March 31, 2022, and states that there were no material changes to internal control over financial reporting during the quarter - The company's disclosure controls and procedures were evaluated and determined to be effective as of March 31, 2022[230](index=230&type=chunk) - No changes materially affected, or are reasonably likely to materially affect, internal control over financial reporting during Q1 2022[231](index=231&type=chunk) [PART II. OTHER INFORMATION](index=53&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) This section indicates that there have been no material developments in legal proceedings since the filing of the Annual Report on Form 10-K, and no environmental matters requiring disclosure under the **$1 million** threshold - No material developments in legal proceedings have occurred since the Annual Report filing[234](index=234&type=chunk) - No environmental matters requiring disclosure under the **$1 million** threshold were identified for the period[235](index=235&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) This section states that there has been no material change in the company's risk factors as previously disclosed in its Annual Report on Form 10-K - No material change in risk factors has occurred since the Annual Report on Form 10-K[236](index=236&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms that there were no sales of unregistered equity securities during the first quarter of 2022 - No sales of unregistered equity securities occurred during Q1 2022[237](index=237&type=chunk) [Item 3. Defaults upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section reports that there were no defaults upon senior securities during the period - No defaults upon senior securities occurred[238](index=238&type=chunk) [Item 4. Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section refers to Exhibit 95 for information regarding mine safety and other regulatory actions at the company's mines in Green River and Granger, Wyoming - Mine safety disclosures are provided in Exhibit 95[239](index=239&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report for the period - No other information to report[240](index=240&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, unit certificates, certifications by the CEO and CFO, mine safety disclosures, and XBRL interactive data files - The exhibits include various corporate documents, certifications (31.1, 31.2, 32), mine safety disclosures (95), and XBRL interactive data files (101.INS, 101.SCH, 101.CAL, 101.LAB, 101.PRE, 101.DEF, 104)[242](index=242&type=chunk) [SIGNATURES](index=55&type=section&id=SIGNATURES)

Genesis Energy, L.P. (NYSE:GEL) Q4 2021 Earnings Conference Call February 17, 2022 10:00 AM ET Company Participants Dwayne Morley – Vice President-Investor Relations Grant Sims – Chief Executive Officer Conference Call Participants Michael Blum – Wells Fargo Kyle May – Capital One Securities Karl Blunden – Goldman Sachs Operator Hello, and welcome to the Genesis Energy Fourth Quarter 2021 Earnings Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasur ...

Genesis Energy, L.P. (NYSE:GEL) Q3 2021 Earnings Conference Call November 4, 2021 10:00 AM ET Company Participants Dwayne Morley - Vice President, Investor Relations Grant Sims - Chief Executive Officer Conference Call Participants Shneur Gershuni - UBS Theresa Chen - Barclays Michael Blum - Wells Fargo Operator Greetings, welcome to the Genesis Energy LP 3Q 2021 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host ...

Genesis Energy, L.P. (NYSE:GEL) Q2 2021 Earnings Conference Call August 4, 2021 10:15 AM ET Company Participants Dwayne Morley - Vice President of Business Development & Investor Relations Grant Sims - Chief Executive Officer Conference Call Participants Kyle May - Capital One Securities Shneur Gershuni - UBS T.J. Schultz - RBC Capital Markets Operator Greetings. Welcome to the Genesis Energy 2Q 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer se ...

Financial Data and Key Metrics Changes - The first quarter of 2021 demonstrated financial results that were consistent with, if not slightly ahead of internal expectations, indicating resilience in market-leading businesses [8] - The company expects full-year adjusted consolidated EBITDA to be in the range of $630 million to $660 million, including approximately $30 million to $40 million of pro forma adjustments [40] - Free cash flow after all cash obligations is anticipated to be in the range of $80 million to $110 million for 2021 [41] Business Segment Data and Key Metrics Changes - The Offshore Pipeline Transportation segment achieved a more normalized earnings run rate during the first quarter, with an expected quarterly Segment Margin of around $80 million for the second quarter [11][12] - The Sodium Minerals and Sulfur Services segment is recovering as demand for soda ash increases, with a tightening global supply and demand dynamic [20][24] - The legacy refinery services business performed in line with expectations, benefiting from strong demand from copper mining customers [31] Market Data and Key Metrics Changes - Global soda ash demand is steadily increasing as economies reopen, with all-natural producers reportedly sold out globally for 2021 [20] - Exports out of China were down about 10% year-over-year in the first quarter of 2021 due to environmental restrictions affecting synthetic production [48] - The demand for copper is driven by renewable initiatives, with copper prices at near decade-high levels [32] Company Strategy and Development Direction - The company is focused on long-term success with a recovery in the soda ash business and significant free cash flow from contracted projects in the Gulf of Mexico [10] - The Granger soda ash expansion project is expected to come online by late 2023, positioning the company favorably in the market [29] - The company is exploring new standalone deepwater production hubs, with anticipated first oils starting in the late-2024 to 2025 timeframe [14][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving macroeconomic conditions providing significant operating leverage to the upside [8] - The company remains committed to achieving a long-term target leverage ratio of 4.0 times [42] - Management highlighted the importance of low carbon intensity barrels from the Gulf of Mexico in supporting future carbon-neutral initiatives [18][19] Other Important Information - The company successfully refinanced its senior secured credit facility, receiving $950 million in total commitments [36] - A tack-on offering of additional senior notes due 2027 was priced at a premium, generating net proceeds of approximately $256 million [37] - The company has maintained COVID-19 safety protocols with limited confirmed cases among employees [43] Q&A Session Summary Question: Impact of environmental restrictions on synthetic soda ash production in China - Management indicated that environmental discharges associated with synthetic production have led to some production being offline, with total exports from China down about 10% year-over-year [47][48] Question: Exposure to soda ash pricing and contract structure - Approximately half of the company's sales are fixed for 2021, with only 25% of total sales subject to price increases, primarily from exports to Asia [49][50] Question: Pricing recovery expectations for 2022 - Management noted that while the recovery timeline is uncertain, there is potential for prices to recover to 2019 levels by 2023, with incremental segment margin contributions expected from the Granger expansion [57][58] Question: Marine transportation segment performance - The marine transportation segment is expected to see improvements in utilization and pricing, particularly following the American Phoenix contract [59][61] Question: Acceleration of Granger expansion timeline - Management stated that the Granger expansion could potentially be accelerated if market conditions warrant, with increased demand from lithium producers and solar panel manufacturing [66][68] Question: Impact of crude liquidation on leverage and earnings - The liquidation of crude generated a leverage benefit but did not impact earnings for the first quarter, as cash proceeds were received post-quarter [70][71] Question: Future discussions on new deepwater hubs - Management confirmed ongoing discussions regarding new standalone deepwater production hubs, with potential incremental production of 200,000 to 220,000 barrels a day [75][76]

Cover Page Information [Registrant Information](index=1&type=section&id=Registrant%20Information) Genesis Energy, L.P. is a Delaware limited partnership engaged in midstream crude oil and natural gas, and natural soda ash production, filing all required reports as a large accelerated filer - Company name: **GENESIS ENERGY, L.P.**[2](index=2&type=chunk) - Jurisdiction of incorporation: Delaware[2](index=2&type=chunk) - Trading symbol: GEL (NYSE)[3](index=3&type=chunk) - Filing status: Large accelerated filer[4](index=4&type=chunk) [Filing Details](index=1&type=section&id=Filing%20Details) This report covers the quarter ended March 31, 2021, with all interactive data files submitted and Class A and B Common Units outstanding disclosed as of May 5, 2021 - Reporting period: Quarter ended March 31, 2021[2](index=2&type=chunk) - All interactive data files submitted: Yes[3](index=3&type=chunk) Outstanding Units (As of May 5, 2021) | Category | Quantity | | :--- | :--- | | Class A Common Units | 122,539,221 | | Class B Common Units | 39,997 | PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, partners' capital, and cash flows, with related notes, for the quarter ended March 31, 2021 [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets slightly increased, while net fixed assets and partners' capital decreased, with a notable rise in net trade receivables and a reduction in inventory Key Balance Sheet Data (in thousands of dollars) | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $18,449 | $21,282 | | Restricted cash | $15,338 | $5,736 | | Accounts receivable - trade, net | $473,929 | $392,465 | | Inventories | $72,427 | $99,877 | | Total current assets | $644,143 | $580,169 | | Net fixed assets | $3,825,124 | $3,851,334 | | Total assets | $5,949,613 | $5,933,619 | | Total current liabilities | $454,094 | $383,411 | | Senior secured credit facility | $699,000 | $643,700 | | Senior unsecured notes, net | $2,671,262 | $2,750,016 | | Total liabilities | $4,247,934 | $4,183,462 | | Total partners' capital | $747,909 | $818,848 | - Total assets increased from **$5,933,619 thousand** as of December 31, 2020, to **$5,949,613 thousand** as of March 31, 2021[10](index=10&type=chunk) - Total partners' capital decreased from **$818,848 thousand** as of December 31, 2020, to **$747,909 thousand** as of March 31, 2021[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2021, total revenue decreased, while total costs and expenses rose, leading to a significant decline in operating income and a shift from net income to net loss attributable to Genesis Energy, L.P Key Statements of Operations Data (in thousands of dollars, except per unit amounts) | Metric | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Total revenue | $521,219 | $539,923 | | Total costs and expenses | $493,198 | $480,761 | | Operating income | $28,021 | $59,162 | | Net income (loss) attributable to Genesis Energy, L.P. | $(34,224) | $24,909 | | Basic and diluted net income (loss) per common unit | $(0.43) | $0.05 | - Total revenue decreased **3.46%** year-over-year, from **$539,923 thousand** in Q1 2020 to **$521,219 thousand** in Q1 2021[12](index=12&type=chunk) - Operating income decreased **52.64%** year-over-year, from **$59,162 thousand** in Q1 2020 to **$28,021 thousand** in Q1 2021[12](index=12&type=chunk) - Net income (loss) attributable to Genesis Energy, L.P. shifted from a **$24,909 thousand** profit in Q1 2020 to a **($34,224) thousand** loss in Q1 2021[12](index=12&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the three months ended March 31, 2021, comprehensive income (loss) attributable to Genesis Energy, L.P. shifted from a profit to a loss, primarily driven by changes in net income (loss) Key Comprehensive Income Data (in thousands of dollars) | Metric | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Net income (loss) | $(29,435) | $28,979 | | Comprehensive income (loss) attributable to Genesis Energy, L.P. | $(34,102) | $24,909 | - Comprehensive income (loss) attributable to Genesis Energy, L.P. shifted from a **$24,909 thousand** profit in Q1 2020 to a **($34,102) thousand** loss in Q1 2021[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Partners' Capital](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Partners'%20Capital) As of March 31, 2021, total partners' capital decreased due to net loss and cash distributions to partners and Class A convertible preferred unitholders Changes in Partners' Capital (in thousands of dollars) | Metric | January 1, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Total partners' capital | $818,848 | $747,909 | | Net loss | — | $(34,224) | | Cash distributions to partners | — | $(18,387) | | Distributions to Class A convertible preferred unitholders | — | $(18,684) | - Total partners' capital decreased from **$818,848 thousand** as of January 1, 2021, to **$747,909 thousand** as of March 31, 2021[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2021, net cash flow from operating activities decreased year-over-year, but the ending balance of cash and cash equivalents increased, primarily due to reduced cash outflows from financing activities Key Cash Flow Data (in thousands of dollars) | Metric | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Net cash from operating activities | $77,159 | $89,552 | | Net cash from investing activities | $(30,051) | $(30,880) | | Net cash from financing activities | $(40,339) | $(73,568) | | Ending balance of cash, restricted cash, and cash equivalents | $33,787 | $41,509 | - Net cash from operating activities decreased **13.84%** year-over-year, from **$89,552 thousand** in Q1 2020 to **$77,159 thousand** in Q1 2021[21](index=21&type=chunk) - Net cash outflow from financing activities decreased **45.17%** year-over-year, from **($73,568) thousand** in Q1 2020 to **($40,339) thousand** in Q1 2021[21](index=21&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and supplementary information for the company's financial statements, covering organization, accounting policies, revenue recognition, leases, inventory, fixed assets, equity investments, debt, partners' capital, derivatives, and fair value measurements, along with COVID-19 impacts and subsequent events [1. Organization and Basis of Presentation and Consolidation](index=10&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation%20and%20Consolidation) The company is a limited partnership focused on midstream crude oil and natural gas and natural soda ash production, operating through four reportable segments primarily in the U.S. Gulf Coast, Wyoming, and Gulf of Mexico, while monitoring COVID-19 impacts - The company's operations are primarily located in the Gulf Coast, Wyoming, and Gulf of Mexico regions[22](index=22&type=chunk) - The company manages its business through four segments: Offshore Pipeline Transportation, Sodium Minerals and Sulfur Services, Onshore Facilities and Transportation, and Marine Transportation[27](index=27&type=chunk) - The company continuously monitors the impact of the COVID-19 pandemic on market conditions and assesses potential impairment of long-lived assets, intangible assets, and goodwill[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [2. Recent Accounting Developments](index=11&type=section&id=2.%20Recent%20Accounting%20Developments) The company early adopted SEC revisions to guarantor financial disclosure requirements, streamlining disclosures by incorporating summarized financial information into Management's Discussion and Analysis - The company early adopted SEC revisions to guarantor financial disclosure requirements, incorporating them into Management's Discussion and Analysis[29](index=29&type=chunk) [3. Revenue Recognition](index=11&type=section&id=3.%20Revenue%20Recognition) Revenue is recognized as performance obligations are satisfied, with timing varying by revenue stream, and detailed disclosures include revenue by major category and projected recognition for long-term contracts in future periods Revenue by Major Category (in thousands of dollars) | Revenue Category | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Fee-based revenue | $129,109 | $181,765 | | Product sales | $369,601 | $330,134 | | Refinery services | $22,509 | $28,024 | | **Total revenue** | **$521,219** | **$539,923** | Projected Revenue Recognition for Future Periods (in thousands of dollars) | Period | Offshore Pipeline Transportation | Onshore Facilities and Transportation | | :--- | :--- | :--- | | Remainder of 2021 | $48,198 | $14,369 | | 2022 | $75,623 | $4,703 | | 2023 | $63,982 | — | | 2024 | $56,326 | — | | 2025 | $60,311 | — | | Thereafter | $97,761 | — | | **Total** | **$402,201** | **$19,072** | [4. Lease Accounting](index=12&type=section&id=4.%20Lease%20Accounting) The company leases various transportation equipment, terminals, land, and facilities with terms ranging from short to long-term, and as a lessor, generated lease income from the M/T American Phoenix tanker and received payments from the sold NEJD pipeline direct financing lease Lease Revenue (in thousands of dollars) | Lease Item | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | M/T American Phoenix | $3,420 | $6,643 | | Free State Pipeline | — | $1,923 | - As of March 31, 2021, the company received **$17.5 million** from Denbury and has **$52.5 million** in receivables for the remaining payments on the previously held NEJD direct financing lease[40](index=40&type=chunk) [5. Inventories](index=13&type=section&id=5.%20Inventories) As of March 31, 2021, total inventory decreased to **$72.427 million** from December 31, 2020, primarily comprising petroleum products, crude oil, caustic soda, sodium hydrosulfide, and soda ash business raw materials, work-in-process, and finished goods Inventory Composition (in thousands of dollars) | Inventory Category | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Petroleum products | $2,584 | $5,840 | | Crude oil | $14,633 | $37,661 | | Caustic soda | $5,108 | $5,167 | | Sodium hydrosulfide | $7,736 | $9,101 | | Soda ash business raw materials | $6,492 | $7,120 | | Soda ash business work-in-process | $10,700 | $9,355 | | Soda ash business finished goods, net | $11,988 | $13,002 | | Soda ash business materials and supplies, net | $13,186 | $12,631 | | **Total** | **$72,427** | **$99,877** | - Total inventory decreased from **$99,877 thousand** as of December 31, 2020, to **$72,427 thousand** as of March 31, 2021[41](index=41&type=chunk) [6. Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations](index=14&type=section&id=6.%20Fixed%20Assets%2C%20Mineral%20Leaseholds%2C%20and%20Asset%20Retirement%20Obligations) As of March 31, 2021, net fixed assets and mineral leaseholds slightly decreased, while asset retirement obligations (AROs) increased, with amortization expenses expected to continue in the coming years Net Fixed Assets (in thousands of dollars) | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Fixed assets, at cost | $5,206,508 | $5,173,475 | | Less: Accumulated depreciation | $(1,381,384) | $(1,322,141) | | **Net fixed assets** | **$3,825,124** | **$3,851,334** | Net Mineral Leaseholds (in thousands of dollars) | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Mineral leaseholds | $566,019 | $566,019 | | Less: Accumulated depletion | $(14,356) | $(13,444) | | **Mineral leaseholds, net** | **$551,663** | **$552,575** | Changes in Asset Retirement Obligations (AROs) (in thousands of dollars) | Metric | Amount | | :--- | :--- | | AROs liability balance as of December 31, 2020 | $176,852 | | Amortization expense | $2,584 | | Changes in estimates | $797 | | Settlements | $(2,017) | | **AROs liability balance as of March 31, 2021** | **$178,216** | [7. Equity Investees](index=15&type=section&id=7.%20Equity%20Investees) The company accounts for joint venture investments using the equity method, with increased earnings and distributions from equity investees for the three months ended March 31, 2021, notably from Poseidon Oil Pipeline Company, L.L.C Equity Investee Information (in thousands of dollars) | Metric | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Genesis' share of operating earnings | $24,533 | $18,032 | | Amortization of excess purchase price | $(3,873) | $(3,873) | | Net equity earnings | $20,660 | $14,159 | | Distributions received | $29,516 | $20,565 | - Genesis' share of operating earnings increased **36.06%** year-over-year, from **$18,032 thousand** in Q1 2020 to **$24,533 thousand** in Q1 2021[51](index=51&type=chunk) - Distributions received increased **43.53%** year-over-year, from **$20,565 thousand** in Q1 2020 to **$29,516 thousand** in Q1 2021[51](index=51&type=chunk) [8. Intangible Assets](index=16&type=section&id=8.%20Intangible%20Assets) As of March 31, 2021, net intangible assets slightly decreased, primarily comprising offshore contract intangibles and other intangibles, with a year-over-year reduction in amortization expense Intangible Asset Composition (in thousands of dollars) | Category | Book Value as of March 31, 2021 | Book Value as of December 31, 2020 | | :--- | :--- | :--- | | Offshore contract intangibles | $220 | $229 | | Offshore pipeline contract intangibles | $110,948 | $113,028 | | Other | $16,680 | $15,485 | | **Total** | **$127,848** | **$128,742** | Intangible Asset Amortization Expense (in thousands of dollars) | Period | Amortization Expense | | :--- | :--- | | For the three months ended March 31, 2021 | $2,600 | | For the three months ended March 31, 2020 | $4,116 | - Intangible asset amortization expense decreased **36.96%** year-over-year, from **$4,116 thousand** in Q1 2020 to **$2,600 thousand** in Q1 2021[54](index=54&type=chunk) [9. Debt](index=17&type=section&id=9.%20Debt) As of March 31, 2021, total long-term debt was **$3.37 billion**, a decrease from December 31, 2020, with the company redeeming some 2023 senior unsecured notes in Q1 and planning to issue additional 2027 notes post-period to repay its revolving credit facility Debt Composition (in thousands of dollars) | Debt Type | Net Value as of March 31, 2021 | Net Value as of December 31, 2020 | | :--- | :--- | :--- | | Senior secured credit facility | $699,000 | $643,700 | | 6.000% Senior unsecured notes due 2023 | — | $80,355 | | 5.625% Senior unsecured notes due 2024 | $338,386 | $338,172 | | 6.500% Senior unsecured notes due 2025 | $529,491 | $529,195 | | 6.250% Senior unsecured notes due 2026 | $355,805 | $355,610 | | 8.000% Senior unsecured notes due 2027 | $737,476 | $736,978 | | 7.750% Senior unsecured notes due 2028 | $710,104 | $709,706 | | **Total long-term debt** | **$3,370,262** | **$3,393,716** | - As of March 31, 2021, the company had **$699 million** borrowed under its **$1.7 billion** senior secured credit facility, with **$999.7 million** available for borrowing[57](index=57&type=chunk) - On January 19, 2021, the company redeemed the remaining **$80.9 million** of its 2023 senior unsecured notes, incurring a loss of approximately **$1.6 million**[61](index=61&type=chunk) - On April 8, 2021, the company entered into a new credit agreement extending the term of its existing credit facility, and on April 22, 2021, issued an additional **$250 million** of 2027 notes[58](index=58&type=chunk)[62](index=62&type=chunk) [10. Partners' Capital, Mezzanine Capital and Distributions](index=18&type=section&id=10.%20Partners'%20Capital%2C%20Mezzanine%20Capital%20and%20Distributions) The company disclosed outstanding common and Class A convertible preferred units and distributions, with Class A preferred units classified as mezzanine capital and accounted for due to redemption features and an embedded interest rate reset option, while redeemable non-controlling interest increased from issuance and PIK distributions Common Unit Distributions (in thousands of dollars, except per unit amounts) | Distribution Quarter | Payment Date | Amount Per Unit | Total Amount | | :--- | :--- | :--- | :--- | | Q1 2020 | May 15, 2020 | $0.15 | $18,387 | | Q2 2020 | August 14, 2020 | $0.15 | $18,387 | | Q3 2020 | November 13, 2020 | $0.15 | $18,387 | | Q4 2020 | February 12, 2021 | $0.15 | $18,387 | | Q1 2021 | May 14, 2021 | $0.15 | $18,387 | Class A Convertible Preferred Unit Distributions (in thousands of dollars, except per unit amounts) | Distribution Quarter | Payment Date | Amount Per Unit | Total Amount | | :--- | :--- | :--- | :--- | | Q1 2020 | May 15, 2020 | $0.7374 | $18,684 | | Q2 2020 | August 14, 2020 | $0.7374 | $18,684 | | Q3 2020 | November 13, 2020 | $0.7374 | $18,684 | | Q4 2020 | February 12, 2021 | $0.7374 | $18,684 | | Q1 2021 | May 14, 2021 | $0.7374 | $18,684 | Changes in Redeemable Non-Controlling Interest (in thousands of dollars) | Metric | Amount | | :--- | :--- | | Balance as of December 31, 2020 | $141,194 | | Issuance of preferred units, net of issuance costs | $19,561 | | Payment-in-kind (PIK) distributions | $4,093 | | Accretion to redemption value | $698 | | Tax distributions | $(1,891) | | **Balance as of March 31, 2021** | **$163,655** | [11. Net Income (Loss) Per Common Unit](index=21&type=section&id=11.%20Net%20Income%20(Loss)%20Per%20Common%20Unit) For the three months ended March 31, 2021, basic and diluted net loss per common unit was **$0.43**, compared to net income of **$0.05** in the prior year period, primarily influenced by net loss attributable to Genesis Energy, L.P. and Class A convertible preferred unit distributions Net Income (Loss) Per Common Unit Calculation (in thousands of dollars, except per unit amounts) | Metric | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Net income (loss) attributable to Genesis Energy L.P. | $(34,224) | $24,909 | | Less: Cumulative distributions attributable to Class A convertible preferred units | $(18,684) | $(18,684) | | Net income (loss) attributable to common unitholders | $(52,908) | $6,225 | | Weighted-average common units outstanding | 122,579 | 122,579 | | **Basic and diluted net income (loss) per common unit** | **$(0.43)** | **$0.05** | - In Q1 2021, basic and diluted net loss per common unit was **$0.43**, compared to net income of **$0.05** in Q1 2020[78](index=78&type=chunk) - The assumed conversion of Class A convertible preferred units was anti-dilutive in Q1 2021 and thus excluded from diluted earnings per unit calculation[77](index=77&type=chunk) [12. Business Segment Information](index=22&type=section&id=12.%20Business%20Segment%20Information) The company manages its business through four reportable segments, using Segment Margin as a key performance indicator, with total segment margin decreasing year-over-year for the three months ended March 31, 2021, but with varied performance across segments - The company's business is divided into four segments: Offshore Pipeline Transportation, Sodium Minerals and Sulfur Services, Onshore Facilities and Transportation, and Marine Transportation[82](index=82&type=chunk) Segment Margin (in thousands of dollars) | Segment | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Offshore Pipeline Transportation | $84,269 | $85,246 | | Sodium Minerals and Sulfur Services | $43,720 | $36,941 | | Onshore Facilities and Transportation | $20,999 | $28,099 | | Marine Transportation | $7,109 | $19,002 | | **Total Segment Margin** | **$156,097** | **$169,288** | - Total segment margin decreased **7.79%** year-over-year, from **$169,288 thousand** in Q1 2020 to **$156,097 thousand** in Q1 2021[81](index=81&type=chunk) [13. Transactions with Related Parties](index=24&type=section&id=13.%20Transactions%20with%20Related%20Parties) The company engages in related party transactions with Poseidon and ANSAC, with service and fee revenue from Poseidon increasing and product sales revenue to ANSAC decreasing for the three months ended March 31, 2021 Related Party Transactions (in thousands of dollars) | Transaction Type | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Service and fee revenue from Poseidon | $3,786 | $3,147 | | Product sales revenue from ANSAC | $67,955 | $73,079 | | Aircraft usage fees paid to CEO | $165 | $165 | | Service fees from Poseidon | $240 | $254 | | Service fees from ANSAC | $178 | $832 | - Product sales revenue to ANSAC decreased **7.01%** year-over-year, from **$73,079 thousand** in Q1 2020 to **$67,955 thousand** in Q1 2021[86](index=86&type=chunk)[90](index=90&type=chunk) [14. Supplemental Cash Flow Information](index=25&type=section&id=14.%20Supplemental%20Cash%20Flow%20Information) For the three months ended March 31, 2021, net changes in operating assets and liabilities resulted in a cash outflow, contrasting with a cash inflow in the prior year period, while interest and commitment fee payments increased Net Changes in Operating Assets and Liabilities Components (in thousands of dollars) | Component | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Accounts receivable (increase/decrease) | $(99,504) | $101,405 | | Inventories (increase/decrease) | $27,450 | $(5,024) | | Accounts payable (increase/decrease) | $38,994 | $(62,365) | | Accrued liabilities (increase/decrease) | $22,561 | $(25,519) | | **Net changes in operating assets and liabilities components** | **$(5,062)** | **$7,534** | - Interest and commitment fees paid in Q1 2021 were **$35.4 million**, up from **$33.7 million** in Q1 2020[93](index=93&type=chunk) [15. Derivatives](index=25&type=section&id=15.%20Derivatives) The company uses commodity derivatives (futures, options, swaps) to hedge price risk, primarily for crude oil, fuel oil, and natural gas, and as of March 31, 2021, the embedded derivative for the Class A convertible preferred units' interest rate reset option had a fair value liability of **$70.8 million**, with an **$18.4 million** unrealized loss recognized this quarter - The company uses commodity derivatives (futures, options, and swaps) to hedge commodity price risk, primarily for crude oil, fuel oil, and natural gas[95](index=95&type=chunk)[99](index=99&type=chunk) - As of March 31, 2021, the fair value of the embedded derivative for the Class A convertible preferred units' interest rate reset option was a **$70.8 million** liability[107](index=107&type=chunk) Impact of Derivatives on Operating Results (in thousands of dollars) | Derivative Type | Gain (Loss) for the three months ended March 31, 2021 | Gain (Loss) for the three months ended March 31, 2020 | | :--- | :--- | :--- | | Commodity derivatives - futures and call options | $(9,818) | $(646) | | Natural gas swap liability | $(67) | $(432) | | Preferred unit distribution interest rate reset option | $(18,438) | $32,545 | - In Q1 2021, the company recognized an **$18.4 million** unrealized loss from the preferred unit distribution interest rate reset option, compared to an **$32.5 million** unrealized gain in Q1 2020[108](index=108&type=chunk) [16. Fair-Value Measurements](index=28&type=section&id=16.%20Fair-Value%20Measurements) The company categorizes financial assets and liabilities into three fair value levels based on input observability, with the Class A convertible preferred units' interest rate reset option classified as a Level 3 liability, increasing to **$70.81 million** as of March 31, 2021 - The company categorizes financial assets and liabilities into three fair value levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[109](index=109&type=chunk) Recurring Fair Value Measurements (in thousands of dollars) | Category | Fair Value as of March 31, 2021 | Fair Value as of December 31, 2020 | | :--- | :--- | :--- | | Commodity derivatives: Assets | $1,040 | $2,370 | | Commodity derivatives: Liabilities | $(1,397) | $(5,459) | | Preferred unit distribution interest rate reset option | $(70,810) | $(52,372) | - The preferred unit distribution interest rate reset option is classified as a Level 3 fair value measurement, with its fair value increasing from **($52,372) thousand** as of December 31, 2020, to **($70,810) thousand** as of March 31, 2021[112](index=112&type=chunk)[113](index=113&type=chunk) - In Q1 2021, due to a decrease in discount yield and proximity to the coupon rate reset date, the company recorded an **$18.4 million** unrealized loss[114](index=114&type=chunk) [17. Commitments and Contingencies](index=30&type=section&id=17.%20Commitments%20and%20Contingencies) The company is subject to various environmental laws, regulations, litigation, and governmental agency reviews, but these matters are not currently expected to have a material adverse effect on its financial condition, results of operations, or cash flows - The company is subject to various environmental laws and regulations, with policies and procedures to monitor compliance[117](index=117&type=chunk) - The company faces litigation and regulatory reviews in the normal course of business, which are not expected to have a material impact on its financial condition[118](index=118&type=chunk) [18. Subsequent Events](index=30&type=section&id=18.%20Subsequent%20Events) Subsequent to the reporting period, the company entered into a new **$950 million** senior secured credit agreement on April 8, 2021, and issued an additional **$250 million** of 2027 notes on April 22, 2021, to extend debt maturities and enhance liquidity - On April 8, 2021, the company entered into a new **$950 million** senior secured credit agreement, including a **$300 million** term loan and a **$650 million** revolving loan, maturing on March 15, 2024[119](index=119&type=chunk) - On April 22, 2021, the company issued an additional **$250 million** of 2027 notes, with net proceeds to be used for general partnership purposes, including repayment of the new revolving loan[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed analysis of the company's financial condition and operating results for the three months ended March 31, 2021, including discussions on net income, segment margin, cash flows, liquidity, capital resources, COVID-19 impacts, and future outlook [Overview](index=31&type=section&id=Overview) In Q1 2021, the company reported a **$34.2 million** net loss attributable to Genesis Energy, L.P., compared to a **$24.9 million** net income in the prior year, primarily due to decreased segment margin and an unrealized loss on preferred unit embedded derivatives, with available cash before reserves declining **33.2%** - In Q1 2021, net loss attributable to Genesis Energy, L.P. was **$34.2 million**, compared to net income of **$24.9 million** in Q1 2020[123](index=123&type=chunk) - The net loss was primarily driven by a **$13.2 million** decrease in segment margin and an **$18.4 million** unrealized loss on preferred unit embedded derivatives[123](index=123&type=chunk) - Cash flow from operating activities in Q1 2021 was **$77.2 million**, down from **$89.6 million** in Q1 2020[124](index=124&type=chunk) - Available cash before reserves for common unitholders was **$54.6 million**, a **33.2%** year-over-year decrease[125](index=125&type=chunk) [COVID-19 and Market Update](index=33&type=section&id=Covid-19%20and%20Market%20Update) The company's operations were deemed critical and continued during COVID-19, experiencing demand and volume impacts in 2020 but showing economic recovery in Q1 2021, while focusing on deleveraging and successfully refinancing and extending its senior secured credit facility - The company's operations are considered critical and essential, continuing throughout the COVID-19 pandemic[129](index=129&type=chunk) - Demand and volumes declined in 2020 due to COVID-19 and commodity price volatility, but economic recovery began in Q1 2021[132](index=132&type=chunk) - The company continues to focus on deleveraging, successfully refinancing and extending its senior secured credit facility, and issuing additional 2027 notes, ensuring no scheduled long-term debt maturities before 2024[134](index=134&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) In Q1 2021, total revenue decreased and total costs and expenses increased, leading to a significant reduction in operating income, with overall segment margin declining despite growth in the Sodium Minerals and Sulfur Services segment, and various cost and expense items showing different trends [Revenues and Costs and Expenses](index=34&type=section&id=Revenues%20and%20Costs%20and%20Expenses) In Q1 2021, total revenue decreased **3%** year-over-year, while total costs and expenses increased **3%**, resulting in a **$31.1 million** net reduction in operating income, despite a **25%** rise in crude oil prices, as the company mitigated direct commodity price risk through fee-based contracts and hedging - Total revenue decreased by **$18.7 million (3%)** year-over-year in Q1 2021, while total costs and expenses increased by **$12.4 million (3%)**[135](index=135&type=chunk) - Operating income decreased by **$31.1 million** net[135](index=135&type=chunk) - The average closing price for West Texas Intermediate crude oil (NYMEX) increased **25%** to **$57.84 per barrel** in Q1 2021[138](index=138&type=chunk) - The company limits direct commodity price risk through fee-based contracts, back-to-back purchase and sale arrangements, and hedging[139](index=139&type=chunk) [Segment Margin](index=35&type=section&id=Segment%20Margin) Total segment margin decreased **8%** to **$156.1 million** in Q1 2021, with declines in Offshore Pipeline Transportation and Marine Transportation, but growth in Sodium Minerals and Sulfur Services, and a decrease in Onshore Facilities and Transportation Segment Margin Comparison (in thousands of dollars) | Segment | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Offshore Pipeline Transportation | $84,269 | $85,246 | | Sodium Minerals and Sulfur Services | $43,720 | $36,941 | | Onshore Facilities and Transportation | $20,999 | $28,099 | | Marine Transportation | $7,109 | $19,002 | | **Total Segment Margin** | **$156,097** | **$169,288** | - Total segment margin decreased by **$13.2 million (8%)** year-over-year[143](index=143&type=chunk) [Offshore Pipeline Transportation Segment](index=37&type=section&id=Offshore%20Pipeline%20Transportation%20Segment) In Q1 2021, offshore pipeline transportation segment margin decreased by **$1 million (1%)** year-over-year, primarily due to lower overall crude oil and natural gas pipeline system volumes, particularly the CHOPS pipeline shutdown from hurricane damage, partially offset by increased distributions from equity investments (Poseidon, SEKCO) - Offshore Pipeline Transportation segment margin decreased by **$1 million (1%)** year-over-year[152](index=152&type=chunk) - Volume decline was primarily due to the CHOPS pipeline being out of service until February 3, 2021[152](index=152&type=chunk) - Average daily volumes for the Poseidon crude oil pipeline increased from **279,181 barrels per day** in Q1 2020 to **339,409 barrels per day** in Q1 2021[150](index=150&type=chunk) [Sodium Minerals and Sulfur Services Segment](index=38&type=section&id=Sodium%20Minerals%20and%20Sulfur%20Services%20Segment) In Q1 2021, sodium minerals and sulfur services segment margin increased by **$6.8 million (18%)** year-over-year, driven by improved Westvaco facility productivity and cost efficiencies, despite lower domestic pricing and volumes, with the Granger facility expected to resume operations after expansion completion in late 2023 - Sodium Minerals and Sulfur Services segment margin increased by **$6.8 million (18%)** year-over-year[155](index=155&type=chunk) - The increase was primarily due to improved Westvaco facility productivity and cost efficiencies, offsetting lower domestic pricing and volumes[155](index=155&type=chunk) - Soda ash sales volumes decreased from **822,247 short tons** in Q1 2020 to **762,820 short tons** in Q1 2021[153](index=153&type=chunk) - The Granger facility is expected to resume operations after its expansion is completed in late 2023[155](index=155&type=chunk) [Onshore Facilities and Transportation Segment](index=39&type=section&id=Onshore%20Facilities%20and%20Transportation%20Segment) In Q1 2021, onshore facilities and transportation segment margin decreased by **$7.1 million (25%)** year-over-year, primarily due to reduced volumes in onshore pipelines and rail logistics assets and the divestiture of the Free State pipeline, partially offset by **$12.3 million** in cash proceeds from the NEJD pipeline - Onshore Facilities and Transportation segment margin decreased by **$7.1 million (25%)** year-over-year[164](index=164&type=chunk) - The decrease was primarily due to reduced volumes in Louisiana rail unloading and pipeline assets, and the divestiture of the Free State pipeline[164](index=164&type=chunk) - Approximately **$12.3 million** in cash was received from Denbury for the previously owned NEJD pipeline[164](index=164&type=chunk) - Total onshore crude oil pipeline volumes decreased from **263,657 barrels per day** in Q1 2020 to **167,368 barrels per day** in Q1 2021[162](index=162&type=chunk) [Marine Transportation Segment](index=41&type=section&id=Marine%20Transportation%20Segment) In Q1 2021, marine transportation segment margin decreased by **$11.9 million (63%)** year-over-year, primarily due to lower inland business utilization and day rates, and reduced rates for offshore barge operations, including the M/T American Phoenix tanker, with utilization and spot rates expected to remain under pressure - Marine Transportation segment margin decreased by **$11.9 million (63%)** year-over-year[168](index=168&type=chunk) - The decrease was primarily due to lower inland business utilization and day rates, and reduced rates for offshore barge operations[168](index=168&type=chunk) - Inland barge utilization decreased from **93.4%** in Q1 2020 to **72.0%** in Q1 2021[166](index=166&type=chunk) - Offshore barge utilization decreased from **99.4%** in Q1 2020 to **95.7%** in Q1 2021[166](index=166&type=chunk) [Other Costs, Interest, and Income Taxes](index=41&type=section&id=Other%20Costs%2C%20Interest%2C%20and%20Income%20Taxes) This section details changes in general and administrative expenses, depreciation, depletion, and amortization expense, net interest expense, and income tax expense for Q1 2021 compared to Q1 2020 [General and administrative expenses](index=41&type=section&id=General%20and%20administrative%20expenses) In Q1 2021, total general and administrative expenses increased by **$2.3 million** year-over-year, primarily due to higher long-term incentive compensation expense, partially offset by lower corporate general and administrative expenses General and Administrative Expenses (in thousands of dollars) | Expense Category | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Corporate general and administrative expenses | $9,421 | $10,793 | | Long-term incentive compensation expense | $1,080 | $(2,485) | | **Total general and administrative expenses** | **$11,666** | **$9,373** | - Total general and administrative expenses increased by **$2.3 million** year-over-year[170](index=170&type=chunk) [Depreciation, depletion, and amortization expense](index=42&type=section&id=Depreciation%2C%20depletion%2C%20and%20amortization%20expense) In Q1 2021, total depreciation, depletion, and amortization expense decreased by **$8.1 million** year-over-year, mainly due to the impairment of rail logistics assets in Q2 2020 and the full amortization of the M/T American Phoenix contract intangible asset Depreciation, Depletion, and Amortization Expense (in thousands of dollars) | Expense Category | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Depreciation and depletion expense | $63,614 | $70,205 | | Amortization expense | $2,672 | $4,152 | | **Total depreciation, depletion, and amortization expense** | **$66,286** | **$74,357** | - Total depreciation, depletion, and amortization expense decreased by **$8.1 million** year-over-year[172](index=172&type=chunk) [Interest expense, net](index=42&type=section&id=Interest%20expense%2C%20net) In Q1 2021, net interest expense increased by **$2.9 million** year-over-year, primarily due to higher interest expense on senior unsecured notes, partially offset by reduced interest expense on the senior secured credit facility Net Interest Expense (in thousands of dollars) | Expense Category | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Senior secured credit facility interest expense | $7,431 | $10,745 | | Senior unsecured notes interest expense | $48,335 | $42,358 | | **Net interest expense** | **$57,829** | **$54,965** | - Net interest expense increased by **$2.9 million** year-over-year[174](index=174&type=chunk) - Interest expense on senior unsecured notes increased, primarily due to the issuance of 2028 and 2027 notes[174](index=174&type=chunk) - Interest expense on the senior secured credit facility decreased, primarily due to lower outstanding balances and LIBOR rates[175](index=175&type=chunk) [Income tax expense](index=42&type=section&id=Income%20tax%20expense) The company's income tax expense is primarily related to the operations of its wholly-owned corporate subsidiaries and influenced by state and foreign income taxes, fluctuating as a percentage of pre-tax income or loss across periods - Income tax expense is primarily related to the operations of wholly-owned corporate subsidiaries[176](index=176&type=chunk) - The amount of income tax expense fluctuates as a percentage of pre-tax income or loss across periods[176](index=176&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2021, the company maintained a strong balance sheet and liquidity with **$999.7 million** available under its revolving credit facility, and subsequently refinanced and extended its senior secured credit facility and issued additional 2027 notes to ensure no scheduled long-term debt maturities before 2024 [General](index=43&type=section&id=General) As of March 31, 2021, the company had **$999.7 million** in remaining borrowing capacity, with primary liquidity sources including operating cash flow, credit facility borrowings, and equity/senior unsecured note issuances, and subsequently refinanced its senior secured credit facility to ensure no scheduled long-term debt maturities before 2024 - As of March 31, 2021, the company had **$999.7 million** in remaining borrowing capacity under its **$1.7 billion** senior secured revolving credit facility[177](index=177&type=chunk) - Primary cash needs include working capital, operating expenses, debt service, capital growth and maintenance projects, acquisitions, and quarterly cash distributions to preferred and common unitholders[182](index=182&type=chunk) - Subsequent to the period, the company entered into a new **$950 million** senior secured credit agreement and issued an additional **$250 million** of 2027 notes, ensuring no scheduled long-term debt maturities before 2024[178](index=178&type=chunk)[179](index=179&type=chunk) [Capital Resources](index=43&type=section&id=Capital%20Resources) As of March 31, 2021, total long-term debt was approximately **$3.3703 billion**, a **$23.5 million** decrease from December 31, 2020, with the company continuing to focus on deleveraging and funding the Granger optimization project through an agreement with GSO - As of March 31, 2021, total long-term debt was approximately **$3.3703 billion**, a **$23.5 million** decrease from December 31, 2020[181](index=181&type=chunk) - The estimated cost of the Granger Optimization Project (GOP) will be 100% funded by GSO's purchase of up to approximately **$350 million** in preferred units, with completion expected in late 2023[182](index=182&type=chunk) [Shelf Registration Statement](index=44&type=section&id=Shelf%20Registration%20Statement) The company filed a new universal shelf registration statement (2021 Shelf) with the SEC, allowing for future issuance of an unlimited amount of equity and debt securities to meet future liquidity needs, including acquisitions and refinancing, with the statement expiring in April 2024 - The company filed a new universal shelf registration statement (2021 Shelf) allowing for the issuance of an unlimited amount of equity and debt securities[184](index=184&type=chunk) - This statement aims to meet future liquidity needs, including acquiring assets and businesses and refinancing[183](index=183&type=chunk) - The 2021 Shelf registration statement will expire in April 2024[184](index=184&type=chunk) [Cash Flows from Operations](index=44&type=section&id=Cash%20Flows%20from%20Operations) In Q1 2021, net cash flow from operating activities was **$77.2 million**, down from **$89.6 million** in Q1 2020, primarily affected by decreased segment margin and changes in working capital items - Net cash flow from operating activities in Q1 2021 was **$77.2 million**, down from **$89.6 million** in Q1 2020[190](index=190&type=chunk) - Cash flows are affected by changes in working capital items, primarily inventory, accounts receivable, and accounts payable[185](index=185&type=chunk) [Capital Expenditures, Distributions and Certain Cash Requirements](index=44&type=section&id=Capital%20Expenditures%2C%20Distributions%20and%20Certain%20Cash%20Requirements) The company primarily uses operating cash flow for operating expenses, working capital, debt service, acquisitions, organic growth projects, maintenance capital expenditures, and distributions to unitholders, with total capital expenditures increasing in Q1 2021, notably in maintenance capital - The company primarily uses cash generated from operating activities for operating expenses, working capital, debt service, acquisitions, organic growth projects, maintenance capital expenditures, and distributions to unitholders[191](index=191&type=chunk) - The company plans to use most excess cash flow to reduce outstanding balances under its revolving credit facility and opportunistically repurchase outstanding senior unsecured notes[191](index=191&type=chunk) [Capital Expenditures](index=45&type=section&id=Capital%20Expenditures) In Q1 2021, total capital expenditures for fixed assets and intangible assets were **$36.035 million**, an increase from Q1 2020, with a significant rise in maintenance capital expenditures Capital Expenditures for Fixed Assets and Intangible Assets (in thousands of dollars) | Category | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Total maintenance capital expenditures | $26,153 | $20,558 | | Total growth capital expenditures | $9,882 | $12,086 | | **Total capital expenditures for fixed assets and intangible assets** | **$36,035** | **$32,644** | - Total capital expenditures increased from **$32,644 thousand** in Q1 2020 to **$36,035 thousand** in Q1 2021[192](index=192&type=chunk) [Growth Capital Expenditures](index=45&type=section&id=Growth%20Capital%20Expenditures) In Q1 2021, total growth capital expenditures were **$9.882 million**, a decrease from the prior year period, with the Granger Optimization Project being the primary growth capital expenditure, funded by GSO's preferred unit investment and expected to be completed by late 2023 - Total growth capital expenditures in Q1 2021 were **$9.882 million**, down from **$12.086 million** in Q1 2020[192](index=192&type=chunk) - The Granger Optimization Project is the company's primary growth capital expenditure, funded by GSO's preferred unit investment, and is expected to be completed by late 2023[193](index=193&type=chunk) [Maintenance Capital Expenditures](index=45&type=section&id=Maintenance%20Capital%20Expenditures) In Q1 2021, total maintenance capital expenditures were **$26.153 million**, an increase from the prior year period, primarily focused on the soda ash business, offshore transportation segment, and marine transportation segment for equipment maintenance, upgrades, and pipeline repairs - Total maintenance capital expenditures in Q1 2021 were **$26.153 million**, up from **$20.558 million** in Q1 2020[192](index=192&type=chunk) - These expenditures primarily occurred in the soda ash business, offshore transportation segment, and marine transportation segment for equipment maintenance, upgrades, and pipeline repairs[195](index=195&type=chunk) [Distributions to Unitholders](index=45&type=section&id=Distributions%20to%20Unitholders) The company will pay a distribution of **$0.15 per common unit**, totaling **$18.4 million**, on May 14, 2021, and a quarterly cash distribution of **$0.7374 per unit** to Class A convertible preferred unitholders - The company will pay a distribution of **$0.15 per common unit**, totaling **$18.4 million**, to common unitholders on May 14, 2021[196](index=196&type=chunk) - A quarterly cash distribution of **$0.7374 per unit** will be paid to Class A convertible preferred unitholders[197](index=197&type=chunk) [Guarantor Summarized Financial Information](index=46&type=section&id=Guarantor%20Summarized%20Financial%20Information) The company's **$2.7 billion** senior unsecured notes are unconditionally guaranteed by all wholly-owned domestic subsidiaries (guarantor subsidiaries), excluding certain entities like soda ash business subsidiaries, with this section providing consolidated summarized financial information for Genesis Energy, L.P. and the guarantor subsidiaries - The company's **$2.7 billion** senior unsecured notes are unconditionally and jointly and severally guaranteed by all wholly-owned domestic subsidiaries (guarantor subsidiaries)[198](index=198&type=chunk) - Guarantor subsidiaries exclude entities such as soda ash business subsidiaries, Genesis Free State Pipeline, LLC, and Genesis NEJD Pipeline, LLC[198](index=198&type=chunk) Genesis Energy, L.P. and Guarantor Subsidiaries Summarized Balance Sheet (in thousands of dollars) | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Current assets | $383,742 | $313,328 | | Fixed assets, net | $3,096,330 | $3,115,492 | | Non-current assets | $843,824 | $861,230 | | Current liabilities | $354,508 | $266,688 | | Non-current liabilities | $3,706,448 | $3,710,044 | | Class A convertible preferred units | $790,115 | $790,115 | Genesis Energy, L.P. and Guarantor Subsidiaries Summarized Statements of Operations (in thousands of dollars) | Metric | For the three months ended March 31, 2021 | | :--- | :--- | | Revenue | $351,527 | | Operating costs | $335,149 | | Operating income (loss) | $16,379 | | Loss before income taxes | $(40,856) | | Net loss | $(41,077) | | Net loss attributable to common unitholders | $(115,813) | [Non-GAAP Financial Measure Reconciliations](index=47&type=section&id=Non-GAAP%20Financial%20Measure%20Reconciliations) This section provides a reconciliation of the non-GAAP financial measure 'Available Cash before Reserves' to the most directly comparable GAAP financial measure, showing that available cash before reserves decreased from **$81.78 million** in Q1 2020 to **$54.597 million** in Q1 2021 Available Cash before Reserves Reconciliation (in thousands of dollars) | Metric | For the three months ended March 31, 2021 | For the three months ended March 31, 2020 | | :--- | :--- | :--- | | Net income (loss) attributable to Genesis Energy, L.P. | $(34,224) | $24,909 | | Income tax expense (benefit) | $222 | $(365) | | Depreciation, depletion, amortization, and accretion | $68,997 | $75,978 | | Add (subtract) specific items, net | $46,495 | $4,806 | | Maintenance capital utilized | $(12,850) | $(8,800) | | Cash taxes | $(150) | $(150) | | Distributions to preferred unitholders | $(18,684) | $(18,684) | | Redeemable non-controlling interest accretion to redemption value | $4,791 | $4,086 | | **Available Cash before Reserves** | **$54,597** | **$81,780** | - Available cash before reserves decreased from **$81.78 million** in Q1 2020 to **$54.597 million** in Q1 2021[204](index=204&type=chunk) [Non-GAAP Financial Measures](index=48&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the company's use of non-GAAP financial measures, such as 'Available Cash before Reserves' and 'Segment Margin,' to assess business performance and make decisions, providing additional perspectives for management, lenders, analysts, and other market participants, which should be evaluated in conjunction with GAAP measures [General](index=48&type=section&id=General) The company uses non-GAAP financial measures like 'Available Cash before Reserves' and 'Segment Margin' to evaluate business performance and make decisions, aiming to provide the same financial information used by management, lenders, analysts, and other market participants, but these should not replace GAAP measures - The company uses non-GAAP financial measures "Available Cash before Reserves" and "Segment Margin" to evaluate its business[212](index=212&type=chunk) - These non-GAAP measures should not be considered substitutes for GAAP liquidity or financial performance measures[214](index=214&type=chunk) [Segment Margin](index=49&type=section&id=Segment%20Margin) Segment Margin is the metric used by the company's chief operating decision maker to assess segment performance, defined as revenue less cost of products, operating expenses, and segment general and administrative expenses, adjusted for specific items, aiding in the evaluation of core operating performance - Segment Margin is the metric used by the company's chief operating decision maker to assess segment performance[215](index=215&type=chunk) - It is defined as revenue less cost of products, operating expenses, and segment general and administrative expenses, adjusted for specific items[215](index=215&type=chunk) [Available Cash before Reserves](index=49&type=section&id=Available%20Cash%20before%20Reserves) Available Cash before Reserves is a quantitative standard for evaluating the company's financial performance, operating results, project feasibility, ability to meet non-discretionary cash needs, and make discretionary payments, with a modified disclosure format using 'Maintenance Capital Utilized' as a proxy for non-discretionary maintenance capital expenditures [Purposes, Uses and Definition](index=49&type=section&id=Purposes%2C%20Uses%20and%20Definition) Available Cash before Reserves is a widely used quantitative standard in the investment community to evaluate asset financial performance, operating results, project feasibility, ability to meet non-discretionary cash needs, and make discretionary payments such as distributions and growth capital expenditures - Available Cash before Reserves is used to evaluate the financial performance and operating results of assets[217](index=217&type=chunk) - It is used to evaluate the feasibility of potential projects, including cash and total capital returns compared to other midstream energy companies[217](index=217&type=chunk) - It is used to evaluate the ability of assets to generate cash to meet non-discretionary cash needs, such as interest payments and certain maintenance capital requirements[217](index=217&type=chunk) - It is used to evaluate the ability to make discretionary payments, such as common and preferred unit distributions, growth capital expenditures, certain maintenance capital expenditures, and early debt repayment[217](index=217&type=chunk) [Disclosure Format Relating to Maintenance Capital](index=49&type=section&id=Disclosure%20Format%20Relating%20to%20Maintenance%20Capital) The company adopted a modified disclosure format using 'Maintenance Capital Utilized' as a proxy for non-discretionary maintenance capital expenditures to address significant variations in the nature, timing, and amount of maintenance capital expenditures, providing clearer information to users - The company uses a modified disclosure format because maintenance capital expenditures vary significantly in nature, timing, and amount[218](index=218&type=chunk) - "Maintenance Capital Utilized" serves as a proxy for non-discretionary maintenance capital expenditures, considering the relationship between maintenance capital expenditures, operating expenses, and depreciation[218](index=218&type=chunk)[222](index=222&type=chunk) [Maintenance Capital Requirements](index=49&type=section&id=Maintenance%20Capital%20Requirements) Maintenance capital expenditures are capitalized costs required to maintain the service capability of existing assets, categorized as non-discretionary (mandatory) and discretionary (non-mandatory), with discretionary maintenance capital expenditures increasing as the business expands, requiring more detailed review and analysis - Maintenance capital expenditures are capitalized costs required to maintain the service capability of existing assets, including replacing worn or obsolete system components or equipment[219](index=219&type=chunk) - Maintenance capital expenditures can be categorized as non-discretionary (mandatory) and discretionary (non-mandatory)[219](index=219&type=chunk)[221](index=221&type=chunk) - As non-pipeline businesses expand, discretionary maintenance capital expenditures increase, requiring more detailed review and analysis[222](index=222&type=chunk) [Maintenance Capital Utilized](index=50&type=section&id=Maintenance%20Capital%20Utilized) Maintenance Capital Utilized is the company's quarterly maintenance capital requirement metric used to calculate Available Cash before Reserves, defined as the portion of previously incurred maintenance capital expenditures utilized in the relevant quarter, allocated proportionally over the useful life of the project/component - Maintenance Capital Utilized is the company's quarterly maintenance capital requirement metric used to calculate Available Cash before Reserves[223](index=223&type=chunk) - It is defined as the portion of previously incurred maintenance capital expenditures utilized in the relevant quarter, allocated proportionally over the useful life of the project/component[223](index=223&type=chunk) [Commitments and Off-Balance Sheet Arrangements](index=50&type=section&id=Commitments%20and%20Off-Balance%20Sheet%20Arrangements) The company has not experienced significant changes in commitments and contingent liabilities and has no other off-balance sheet arrangements, special purpose entities, or debt or equity triggers based on unit or commodity prices, beyond the contractual obligations and commercial commitments disclosed in its annual report [Contractual Obligations and Commercial Commitments](index=50&type=section&id=Contractual%20Obligations%20and%20Commercial%20Commitments) There have been no significant changes in the company's contractual obligations and commercial commitments since the annual report disclosure - There have been no significant changes in the company's contractual obligations and commercial commitments since the annual report disclosure[225](index=225&type=chunk) [Off-Balance Sheet Arrangements](index=50&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has no off-balance sheet arrangements, special purpose entities, or financing partnerships, nor any debt or equity triggers based on unit or commodity prices - The company has no off-balance sheet arrangements, special purpose entities, or financing partnerships[226](index=226&type=chunk) - The company has no debt or equity triggers based on unit or commodity prices[226](index=226&type=chunk) [Forward Looking Statements](index=50&type=section&id=Forward%20Looking%20Statements) This report contains forward-looking statements regarding the company's expected future activities, events, or developments, including business growth plans, capital expenditures, competitive advantages, and financial performance, which involve risks, uncertainties, and assumptions, and actual results may differ materially from expectations - This report contains forward-looking statements regarding the company's expected future activities, events, or developments[227](index=227&type=chunk) - Forward-looking statements involve risks, uncertainties, and assumptions, and actual results may differ materially from expectations[227](index=227&type=chunk) - Risk factors include fluctuations in commodity demand and prices, ability to execute business strategies, service interruptions, changes in laws and regulations, availability of capital resources, natural disasters, and cyberattacks[229](index=229&type=chunk)[231](index=231&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the market risk disclosures in the company's annual report, noting no material changes since its filing, and directs to Note 15 of the financial statements for additional discussion on derivative instruments and hedging activities - There have been no material changes in the quantitative and qualitative disclosures about market risk since the annual report filing[232](index=232&type=chunk) - Additional discussion regarding derivative instruments and hedging activities can be found in Note 15 to the financial statements[232](index=232&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) The company has evaluated and confirmed the effectiveness of its disclosure controls and procedures and internal controls, ensuring timely recording, processing, summarization, and reporting of required information in this quarterly report, with no significant changes to internal controls this quarter - The company has evaluated and confirmed the effectiveness of its disclosure controls and procedures and internal controls[233](index=233&type=chunk) - There were no material changes to internal controls this quarter[234](index=234&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) There have been no material developments in legal proceedings since the filing of the annual report on December 31, 2020 - There have been no material developments in legal proceedings since the filing of the annual report on December 31, 2020[237](index=237&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's annual report on December 31, 2020 - There have been no material changes to the risk factors disclosed in the company's annual report on December 31, 2020[238](index=238&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the first quarter of 2021 - There were no unregistered sales of equity securities in Q1 2021[239](index=239&type=chunk) [Item 3. Defaults upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) There were no defaults upon senior securities during this quarter - There were no defaults upon senior securities this quarter[240](index=240&type=chunk) [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety and other regulatory actions for the company's Green River and Granger mines in Wyoming is included in Exhibit 95 of this Form 10-Q - Mine safety disclosure information is included in Exhibit 95 of Form 10-Q[241](index=241&type=chunk) [Item 5. Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No other information required disclosure this quarter - No other information required disclosure this quarter[242](index=242&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with Form 10-Q, including articles of incorporation, credit agreements, certification documents, and mine safety disclosures - Exhibits include articles of incorporation, credit agreements, CEO and CFO certifications, and mine safety disclosures[244](index=244&type=chunk) SIGNATURES [Signature](index=56&type=section&id=Signature) This report was formally signed by Robert V. Deere, Chief Financial Officer of Genesis Energy, LLC, the general partner of Genesis Energy, L.P., on May 5, 2021 - Signatory: Robert V. Deere, Chief Financial Officer[246](index=246&type=chunk) - Date of signature: May 5, 2021[246](index=246&type=chunk)

Genesis Energy, L.P. (NYSE:GEL) Q4 2020 Earnings Conference Call February 18, 2021 9:30 AM ET Corporate Participants Karen Pape - Senior Vice President, Controller Grant Sims - Chief Executive Officer Conference Call Participants Shneur Gershuni - UBS Theresa Chen - Barclays Kyle May - Capital One Securities Operator Greetings and welcome to the Genesis Energy Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this c ...

2020 Wells Fargo Virtual Midstream and Utility Symposium December 2020 Disclosures & Company Information | --- | --- | --- | |-------------------------------------|-------------------|-----------------------------------------------------| | Genesis Energy, L.P. | NYSE: GEL | Investor Relations Contact | | Common Unit Market Value | ~$0.9 billion (a) | InvestorRelations@genlp.com | | Convertible Preferred Equity | ~$0.9 billion (a) | (713) 860-2500 | | Enterprise Value | ~$5.2 billion (a) | Corporate Headqua ...

Genesis Energy, L.P. (NYSE:GEL) Q3 2020 Earnings Conference Call November 5, 2020 9:30 AM ET Company Participants Grant Sims – Chief Executive Officer Bob Deere – Chief Financial Officer Ryan Sims – Senior Vice President, Finance and Corporate Development Conference Call Participants Theresa Chen – Barclays Shneur Gershuni – UBS T. J. Schultz – RBC Capital Markets Operator Welcome to the 2020 Third Quarter Conference Call for Genesis Energy. Genesis has four business segments. The offshore pipeline transpor ...