Financial Data and Key Metrics Changes - Genesis Energy raised its full-year guidance for adjusted EBITDA to a range of $700 million to $710 million for 2022, which includes approximately $41 million of nonrecurring benefits received in the second and third quarters [6] - The revised guidance suggests a normalized adjusted EBITDA of approximately $665 million, over 15% higher than the midpoint of the original guidance range of $565 million to $585 million [7] - The company expects to exit 2022 with a leverage ratio at or below 4.25x [7] Business Segment Data and Key Metrics Changes - The Offshore Pipeline Transportation segment exceeded expectations, with volumes from Murphy's King's Quay development ramping ahead of internal expectations, currently producing over 90,000 barrels of oil equivalent per day [9] - The Sodium Minerals and Sulfur Services segment benefits from strong soda ash prices, with expectations for fourth-quarter prices to be higher than third-quarter prices, driven by structural tightness in the market [13][14] - The Marine Transportation segment performed in line with expectations, with market conditions supporting activity levels near 100% for all classes of vessels [20] Market Data and Key Metrics Changes - Worldwide demand for soda ash outside of China is expected to grow by over 1 million tons per year through the end of the decade, driven by industrial production growth and increasing demand from green initiatives [13] - The structural tightness in the soda ash market is expected to continue, supporting elevated prices even amid potential economic slowdowns [8][15] Company Strategy and Development Direction - Genesis Energy aims to leverage increasing offshore volumes and strong soda ash prices to generate significant free cash flow and improve its credit profile [8][24] - The company is focused on expanding its soda ash production capacity, with the Granger facility expected to add approximately 700,000 tons of production in 2023 [15] - The management believes that the market undervalues its Sodium Minerals and Sulfur Services segment, advocating for a valuation more akin to specialty chemicals rather than generic bulk chemicals [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that market dynamics in each business segment will not be significantly impacted by potential economic slowdowns, supported by visible and growing volumes from the Gulf of Mexico [7][11] - The outlook for soda ash remains strong, with expectations for continued demand growth driven by green initiatives and recovery in the automotive sector [14][37] - Management highlighted the importance of the Gulf of Mexico for domestic oil production and the expected growth from new leasing opportunities [12] Other Important Information - The company has multiple avenues to address near-term maturities, with no significant unsecured maturities until mid-2024 [30][29] - Management emphasized the flexibility to manage capital structure and potential for creative financing solutions [23][44] Q&A Session Summary Question: Supply chain and shipping conditions for soda ash - Management indicated no disruptions in delivery mechanisms, with the majority of product transported via rail and favorable rates due to being the largest exporter from the U.S. [27][28] Question: Upcoming maturities and options to deal with them - Management confirmed no significant maturities until mid-2024 and expressed confidence in handling them without issues [30] Question: Tightness in the soda ash market and future supply additions - Management noted no near-term expansions of natural production in the U.S. and indicated that any new developments would take several years [34] Question: End markets for soda ash and potential growth - Management believes that growth in the automotive sector and green initiatives will offset any potential weakness in construction-related demand [37]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended September 30, 2022, reflect increased revenues, a return to net income, and growth in total assets, with stable operating cash flow Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | September 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Total current assets** | 726,430 | 542,484 | | **Net fixed assets** | 4,020,324 | 3,912,185 | | **TOTAL ASSETS** | **6,169,539** | **5,905,801** | | **Total current liabilities** | 645,317 | 496,939 | | **Total liabilities** | 4,411,349 | 3,925,666 | | **Total partners' capital** | 866,281 | 930,452 | | **TOTAL LIABILITIES, MEZZANINE CAPITAL AND PARTNERS' CAPITAL** | **6,169,539** | **5,905,801** | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Income Statement Item | Three Months Ended Sep 30, 2022 ($ thousands) | Three Months Ended Sep 30, 2021 ($ thousands) | Nine Months Ended Sep 30, 2022 ($ thousands) | Nine Months Ended Sep 30, 2021 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | 721,248 | 518,821 | 2,074,920 | 1,543,895 | | **OPERATING INCOME** | 75,095 | 34,494 | 223,351 | 88,052 | | **NET INCOME (LOSS)** | 8,573 | (13,827) | 82,537 | (79,042) | | **NET LOSS ATTRIBUTABLE TO COMMON UNITHOLDERS** | (15,299) | (39,583) | (22,570) | (152,857) | | **Basic and Diluted NET LOSS PER COMMON UNIT** | $(0.12) | $(0.32) | $(0.18) | $(1.25) | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Item | Nine Months Ended Sep 30, 2022 ($ thousands) | Nine Months Ended Sep 30, 2021 ($ thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 252,595 | 242,357 | | **Net cash used in investing activities** | (254,212) | (193,752) | | **Net cash provided by (used in) financing activities** | 1,110 | (60,127) | [Note 1. Organization and Basis of Presentation and Consolidation](index=9&type=section&id=Note%201.%20Organization%20and%20Basis%20of%20Presentation%20and%20Consolidation) - Genesis Energy, L.P. is a master limited partnership focused on midstream crude oil and natural gas services, as well as natural soda ash production, primarily operating in the U.S. Gulf Coast, Wyoming, and the Gulf of Mexico[19](index=19&type=chunk) - The company manages its business through four reportable segments: Offshore pipeline transportation, Sodium minerals and sulfur services, Onshore facilities and transportation, and Marine transportation[20](index=20&type=chunk)[23](index=23&type=chunk) [Note 9. Debt](index=16&type=section&id=Note%209.%20Debt) Debt Obligations Summary | Debt Instrument | Net Value (Sep 30, 2022, $ thousands) | Net Value (Dec 31, 2021, $ thousands) | | :--- | :--- | :--- | | Senior secured credit facility | 120,200 | 49,000 | | Senior unsecured notes | 2,854,874 | 2,930,505 | | Alkali senior secured notes | 402,254 | — | | **Total long-term debt** | **3,377,328** | **2,979,505** | - In May 2022, the company issued **$425 million** of **5.875%** senior secured notes due 2042 (Alkali senior secured notes), generating net proceeds of **$408 million**, with a portion used to redeem outstanding Alkali Holdings preferred units[54](index=54&type=chunk) - During 2022, the company repurchased some of its senior unsecured notes on the open market, resulting in a cancellation of debt income of **$8.6 million** for the nine months ended September 30, 2022[58](index=58&type=chunk) [Note 10. Partners' Capital, Mezzanine Capital and Distributions](index=18&type=section&id=Note%2010.%20Partners%27%20Capital%2C%20Mezzanine%20Capital%20and%20Distributions) - A quarterly cash distribution of **$0.15 per common unit** was declared for Q3 2022, consistent with prior quarters[62](index=62&type=chunk) - On May 17, 2022, the company fully redeemed all **251,750** outstanding Alkali Holdings preferred units for **$288.6 million** using proceeds from the new Alkali senior secured notes issuance[72](index=72&type=chunk) - Holders of the Class A Convertible Preferred Units elected a one-time rate reset, increasing the annual distribution rate from **8.75% to 11.24%**, effective for distributions declared for the quarter ending December 31, 2022[68](index=68&type=chunk) [Note 12. Business Segment Information](index=21&type=section&id=Note%2012.%20Business%20Segment%20Information) Segment Margin Performance (in thousands) | Segment | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Offshore pipeline transportation | $91,402 | $76,045 | | Sodium minerals & sulfur services | $80,067 | $39,649 | | Onshore facilities & transportation | $9,442 | $29,145 | | Marine transportation | $15,279 | $9,023 | | **Total Segment Margin** | **$196,190** | **$153,862** | Total Assets by Segment (in thousands) | Segment | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Offshore pipeline transportation | $2,214,924 | $2,103,140 | | Sodium minerals and sulfur services | $2,230,163 | $2,132,588 | | Onshore facilities and transportation | $974,464 | $923,064 | | Marine transportation | $692,303 | $703,030 | | **Total consolidated assets** | **$6,169,539** | **$5,905,801** | [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) Management reported significant financial improvement in Q3 2022, driven by increased Segment Margin and strategic debt issuance to enhance liquidity and fund growth projects [Overview](index=31&type=section&id=Overview) - Net Income Attributable to Genesis Energy, L.P. was **$3.4 million** in Q3 2022, a significant improvement from a Net Loss of **$20.9 million** in Q3 2021[125](index=125&type=chunk) - The improvement was primarily driven by a **$42.3 million (28%)** increase in Segment Margin, which reached **$196.2 million** for the quarter[126](index=126&type=chunk)[129](index=129&type=chunk) - Available Cash before Reserves increased by **92%** to **$92.6 million** for Q3 2022 compared to the prior-year quarter[128](index=128&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Segment Margin Contribution (in thousands) | Segment | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Offshore pipeline transportation | $91,402 | $76,045 | | Sodium minerals and sulfur services | $80,067 | $39,649 | | Onshore facilities and transportation | $9,442 | $29,145 | | Marine transportation | $15,279 | $9,023 | | **Total Segment Margin** | **$196,190** | **$153,862** | - The Offshore Pipeline segment's margin increased **20% YoY**, driven by new volumes from the King's Quay floating production system, which began operations in April 2022[147](index=147&type=chunk)[148](index=148&type=chunk) - The Sodium Minerals and Sulfur Services segment's margin more than doubled (**up 102% YoY**) due to higher export pricing and volumes for soda ash amid strong global demand and tight supply[152](index=152&type=chunk) - The Marine Transportation segment's margin grew **69% YoY**, benefiting from higher utilization (inland barge utilization at **100%**) and increased day rates[165](index=165&type=chunk)[163](index=163&type=chunk) - The Onshore Facilities and Transportation segment's margin decreased **68% YoY**, primarily because the prior-year period included **$17.5 million** in cash receipts from a previously owned asset and a one-time billing[161](index=161&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2022, the company had **$525.3 million** of available borrowing capacity under its revolving credit facility[183](index=183&type=chunk) - In May 2022, the company issued **$425 million** of **5.875%** Alkali senior secured notes, using the proceeds to redeem higher-cost preferred units (with an implied **12-13%** rate) and repay borrowings, thereby lowering its cost of capital[182](index=182&type=chunk) - The company is funding significant growth projects, including the Granger soda ash expansion (GOP) and the new SYNC offshore pipeline, with expected net capital expenditures of approximately **$500 million** over the next three years[198](index=198&type=chunk)[199](index=199&type=chunk) [Non-GAAP Financial Measures](index=49&type=section&id=Non-GAAP%20Financial%20Measures) Available Cash before Reserves Reconciliation (in thousands) | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net income (loss) attributable to Genesis Energy, L.P. | $3,385 | $(20,899) | | Depreciation, depletion, amortization and accretion | $76,301 | $69,665 | | Plus (minus) Select Items, net | $45,583 | $24,309 | | Maintenance capital utilized | $(14,400) | $(13,500) | | Distributions to preferred unitholders | $(18,684) | $(18,684) | | **Available Cash before Reserves** | **$92,595** | **$48,209** | - The company uses non-GAAP measures like Available Cash before Reserves and Segment Margin to aid investors and management in assessing financial performance, operating performance, and the ability to make distributions[215](index=215&type=chunk)[222](index=222&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes to its market risk disclosures since its last Annual Report, with details on derivatives in Note 15 - There have been no material changes to the quantitative and qualitative disclosures about market risk since the company's Annual Report[238](index=238&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management identified a material weakness in internal control over financial reporting, with ongoing remediation efforts, concluding that disclosure controls are not yet effective, though financial statements are fairly presented - A material weakness in internal control over financial reporting was identified in Q2 2022, with remediation efforts implemented in Q3 2022, including additional review procedures and training[239](index=239&type=chunk) - Due to the ongoing monitoring of remediation, management assessed that disclosure controls and procedures were not effective as of the end of the quarter[240](index=240&type=chunk) - Despite the material weakness, management believes the consolidated financial statements fairly represent the company's financial condition and results of operations[240](index=240&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) No material developments in legal proceedings have occurred since the last Annual Report on Form 10-K - No material developments in legal proceedings have occurred since the filing of the Annual Report on Form 10-K for the year ended December 31, 2021[244](index=244&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its risk factors as previously disclosed in its Annual Report on Form 10-K - There has been no material change in the company's risk factors from those disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021[246](index=246&type=chunk) [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures for the Wyoming mines are provided in Exhibit 95 of the Form 10-Q - Mine safety disclosures for the Wyoming mines are included in Exhibit 95 to this Form 10-Q[249](index=249&type=chunk)

Wells Fargo Leveraged Finance Conference September 2022 Disclosures & Company Information | --- | --- | --- | |-------------------------------------|-------------------|-----------------------------------------------------| | Genesis Energy, L.P. | NYSE: GEL | Investor Relations Contact | | Common Unit Market Value | ~$1.4 billion (a) | InvestorRelations@genlp.com | | Convertible Preferred Equity | ~$0.9 billion (a) | (713) 860-2500 | | Enterprise Value | ~$5.1 billion (a) | Corporate Headquarters 919 Milam ...

Genesis Energy, L.P. (NYSE:GEL) Q2 2022 Results Conference Call July 28, 2022 10:00 AM ET Company Participants Dwayne Morley - VP, IR Grant Sims - CEO Bob Deere - CFO Ryan Sims - SVP, Finance & Corporate Development Conference Call Participants Karl Blunden - Goldman Sachs T.J. Schultz - RBC Operator Greetings, and welcome to the Genesis Energy LP Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference ov ...

EIC Investor Conference May 2022 Disclosures & Company Information | --- | --- | --- | |-------------------------------------|-------------------|-----------------------------------------------------| | Genesis Energy, L.P. | NYSE: GEL | Investor Relations Contact | | Common Unit Market Value | ~$1.3 billion (a) | InvestorRelations@genlp.com | | Convertible Preferred Equity | ~$0.9 billion (a) | (713) 860-2500 | | Enterprise Value | ~$5.1 billion (a) | Corporate Headquarters 919 Milam Street, Suite 2100 | | ...

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 ...