UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

ý ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2019~~2020

¨☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-12295

GENESIS ENERGY, L.P.

(Exact name of registrant as specified in its charter)



Delaware					76-0513049
(State or other jurisdiction of incorporation or organization)					(I.R.S. Employer Identification No.)

919 Milam, Suite 2100,
	Houston	,	TX		77002
(Address of principal executive offices)					(Zip code)
Registrant’s telephone number, including area code:				(713)	860-2500



Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common units	GEL	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large ~~accelerated filer~~ Accelerated Filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company ¨	☐
		Emerging growth company ¨	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule ~~12b-2)~~12b-2 of the Exchange Act). Yes ¨☐ No ý



~~Securities registered pursuant to Section 12(b) of the Act:~~
~~Title of Each Class~~	~~Trading Symbol(s)~~	~~Name of Each Exchange on Which Registered~~
~~Common units~~	~~GEL~~	~~NYSE~~

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. There were 122,539,221 Class A Common Units and 39,997 Class B Common Units outstanding as of May ~~3, 2019.~~6, 2020.

GENESIS ENERGY, L.P.

TABLE OF CONTENTS



		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Unaudited Condensed Consolidated Balance Sheets	3
	Unaudited Condensed Consolidated Statements of Operations	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income	5
	Unaudited Condensed Consolidated Statements of Partners’ Capital	6
	Unaudited Condensed Consolidated Statements of Cash Flows	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
	1. Organization and Basis of Presentation and Consolidation	8
	2. Recent Accounting Developments	8
	~~3. Revenue Recognition~~	9
	~~4. Lease Accounting~~ 3. Revenue Recognition	119
	4. Lease Accounting	10
	5. Inventories	12
	6. Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations	13
	~~6. Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations~~7. Equity Investees	14
	~~7. Equity Investees~~8. Intangible Assets	15
	~~8. Intangible Assets~~9. Debt	16
	~~9. Debt~~10. Partners' Capital, Mezzanine Capital and Distributions	17
	~~10. Partners' Capital, Mezzanine Capital and Distributions~~	18
	11. Net Income (Loss) Per Common Unit	19
	~~12. Business Segment Information~~	20
	12. Business Segment Information	21
	13. Transactions with Related Parties	22
	14. Supplemental Cash Flow Information	24
	15. Derivatives	24
	16. Fair-Value Measurements	27
	17. Commitments and Contingencies	29
	~~18. Condensed Consolidating Financial Information~~	29
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3630
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	5250
Item 4.	Controls and Procedures	5250
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	5351
Item 1A.	Risk Factors	5351
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5351
Item 3.	Defaults upon Senior Securities	5351
Item 4.	Mine Safety Disclosures	5351
Item 5.	Other Information	5351
Item 6.	Exhibits	5452
SIGNATURES		5554

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GENESIS ENERGY, L.P.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except units)


	March 31, 2019			December 31, 2018			March 31, 2020			December 31, 2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	11,204		$	10,300		$	18,137		$	29,128
Restricted cash							23,372			27,277
Accounts receivable - trade, net	307,390			323,462			315,645			417,002
Inventories	80,147			73,531			70,161			65,137
Other	41,329			35,986			69,565			54,530
Total current assets	440,070			443,279			496,880			593,074
FIXED ASSETS, at cost	5,471,477			5,440,858			5,567,710			5,540,596
Less: Accumulated depreciation	(1,093,199		)	(1,023,825		)	(1,311,219		)	(1,246,121		)
Net fixed assets	4,378,278			4,417,033			4,256,491			4,294,475
MINERAL LEASEHOLDS, net of accumulated depletion	559,161			560,481			554,862			555,825
NET INVESTMENT IN DIRECT FINANCING LEASES, net of unearned income	114,704			116,925			105,251			107,702
EQUITY INVESTEES	350,258			355,085			327,942			334,523
INTANGIBLE ASSETS, net of amortization	150,494			162,602			136,071			138,927
GOODWILL	301,959			301,959			301,959			301,959
RIGHT OF USE ASSETS, net	200,788			—			175,889			177,071
OTHER ASSETS, net of amortization	119,099			121,707			79,113			94,085
TOTAL ASSETS	$	6,614,811		$	6,479,071		$	6,434,458		$	6,597,641
LIABILITIES AND CAPITAL
CURRENT LIABILITIES:
Accounts payable - trade	$	144,629		$	127,327		$	151,868		$	218,737
Accrued liabilities	258,337			205,507			172,941			196,758
Total current liabilities	402,966			332,834			324,809			415,495
SENIOR SECURED CREDIT FACILITY	942,000			970,100			977,400			959,300
SENIOR UNSECURED NOTES, net of debt issuance costs	2,464,247			2,462,363			2,463,171			2,469,937
DEFERRED TAX LIABILITIES	12,828			12,576			12,125			12,640
OTHER LONG-TERM LIABILITIES	402,610			259,198			366,281			393,850
Total liabilities	4,224,651			4,037,071			4,143,786			4,251,222

MEZZANINE CAPITAL:
Class A Convertible Preferred Units, 24,972,598 and 24,438,022 issued and outstanding at March 31, 2019 and December 31, 2018, respectively	778,508			761,466
Class A Convertible Preferred Units, 25,336,778 issued and outstanding at March 31, 2020 and December 31, 2019							790,115			790,115
Redeemable noncontrolling interests, 130,000 preferred units issued and outstanding at March 31, 2020 and December 31, 2019, respectively							129,219			125,133

PARTNERS’ CAPITAL:
Common unitholders, 122,579,218 units issued and outstanding at March 31, 2019 and December 31, 2018	1,621,314			1,690,799
Accumulated other comprehensive income	939			939
Common unitholders, 122,579,218 units issued and outstanding at March 31, 2020 and December 31, 2019							1,382,126			1,443,320
Accumulated other comprehensive loss							(8,431		)	(8,431		)
Noncontrolling interests	(10,601		)	(11,204		)	(2,357		)	(3,718		)
Total partners' capital	1,611,652			1,680,534			1,371,338			1,431,171
TOTAL LIABILITIES, MEZZANINE CAPITAL AND PARTNERS’ CAPITAL	$	6,614,811		$	6,479,071		$	6,434,458		$	6,597,641

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

GENESIS ENERGY, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per unit amounts)


	Three Months Ended March 31,						Three Months Ended March 31,
	2019			2018			2020			2019
REVENUES:
Offshore pipeline transportation services	$	78,317		73,260
Offshore pipeline transportation							$	78,429		$	78,317
Sodium minerals and sulfur services	275,486			285,910			243,390			275,486
Marine transportation	56,650			48,929			62,346			56,650
Onshore facilities and transportation	209,556			317,709			155,758			209,556
Total revenues	620,009			725,808			539,923			620,009
COSTS AND EXPENSES:
Onshore facilities and transportation product costs	168,105			277,818			111,952			168,105
Onshore facilities and transportation operating costs	19,652			22,295			18,248			19,652
Marine transportation operating costs	43,733			37,847			42,937			43,733
Sodium minerals and sulfur services operating costs	218,708			223,498			205,233			218,708
Offshore pipeline transportation operating costs	18,458			18,340			18,661			18,458
General and administrative	11,686			11,674			9,373			11,686
Depreciation, depletion and amortization	77,638			75,255			74,357			77,638
Total costs and expenses	557,980			666,727			480,761			557,980
OPERATING INCOME	62,029			59,081			59,162			62,029
Equity in earnings of equity investees	12,997			10,572			14,159			12,997
Interest expense	(55,701		)	(56,136		)	(54,965		)	(55,701		)
Other expense	(2,976		)	(5,244		)
Other income (expense)							10,258			(2,976		)
Income before income taxes	16,349			8,273			28,614			16,349
Income tax expense	(402		)	(375		)
Income tax benefit (expense)							365			(402		)
NET INCOME	15,947			7,898			28,979			15,947
Net loss attributable to noncontrolling interests	7			136			16			7
Net income attributable to redeemable noncontrolling interests							(4,086		)	—
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.	$	15,954		$	8,034		$	24,909		$	15,954
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(18,415		)	(16,888		)	(18,684		)	(18,415		)
NET LOSS AVAILABLE TO COMMON UNITHOLDERS	$	(2,461	)	$	(8,854	)
NET LOSS PER COMMON UNIT (Note 11):
NET INCOME (LOSS) AVAILABLE TO COMMON UNITHOLDERS							$	6,225		$	(2,461	)
NET INCOME (LOSS) PER COMMON UNIT (Note 11):
Basic and Diluted	$	(0.02	)	$	(0.07	)	$	0.05		$	(0.02	)
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS:
Basic and Diluted	122,579			122,579			122,579			122,579

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

GENESIS ENERGY, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)



	Three Months Ended March 31,
	2020			2019
Net income	$	28,979		$	15,947
Other comprehensive income:
Change in benefit plan liability	—			—
Total Comprehensive income	28,979			15,947
Comprehensive loss attributable to noncontrolling interests	16			7
Comprehensive income attributable to redeemable noncontrolling interests	$	(4,086	)	$	—
Comprehensive income attributable to Genesis Energy, L.P.	$	24,909		$	15,954

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

GENESIS ENERGY, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(In thousands)



	Number of Common Units	Partners’ Capital			Noncontrolling Interest			Accumulated Other Comprehensive Loss			Total
Partners’ capital, January 1, 2020	122,579	$	1,443,320		$	(3,718	)	$	(8,431	)	$	1,431,171
Net income (loss)	—	24,909			(16		)	—			24,893
Cash distributions to partners	—	(67,419		)	—			—			(67,419		)
Cash contributions from noncontrolling interests	—	—			1,377			—			1,377
Distributions to Class A Convertible Preferred unitholders	—	(18,684		)	—			—			(18,684		)
Partners' capital, March 31, 2020	122,579	$	1,382,126		$	(2,357	)	$	(8,431	)	$	1,371,338
	Number of Common Units	Partners’ Capital			Noncontrolling Interest			Accumulated Other Comprehensive Income			Total
Partners’ capital, January 1, 2019	122,579	$	1,690,799		$	(11,204	)	$	939		$	1,680,534
Net income (loss)	—	15,954			(7		)	—			15,947
Cash distributions to partners	—	(67,419		)	—			—			(67,419		)
Cash contributions from noncontrolling interests	—	—			610			—			610
Distributions to Class A Convertible Preferred unitholders	—	(18,020		)	—			—			(18,020		)
Partners' capital, March 31, 2019	122,579	$	1,621,314		$	(10,601	)	$	939		$	1,611,652

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

GENESIS ENERGY, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF ~~COMPREHENSIVE INCOME~~CASH FLOWS

(In thousands)

Three Months Ended
March 31,
2019 2018
Net income $ 15,947
$ 7,898
Other comprehensive income:
Change in benefit plan liability —
—
Total Comprehensive income 15,947
7,898
Comprehensive loss attributable to noncontrolling interests 7
136
Comprehensive income attributable to Genesis Energy, L.P. $ 15,954
$ 8,034



	Three Months Ended March 31,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	28,979		$	15,947
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation, depletion and amortization	74,357			77,638
Amortization and write-off of debt issuance costs and discount	11,527			2,682
Amortization of unearned income and initial direct costs on direct financing leases	(2,929		)	(3,139		)
Payments received under direct financing leases	5,167			5,167
Equity in earnings of investments in equity investees	(14,159		)	(12,997		)
Cash distributions of earnings of equity investees	13,505			12,400
Non-cash effect of long-term incentive compensation plans	(5,027		)	1,565
Deferred and other tax liabilities	(515		)	252
Unrealized (gains) losses on derivative transactions	(31,118		)	5,666
Other, net	2,231			5,640
Net changes in components of operating assets and liabilities (Note 14)	7,534			3,200
Net cash provided by operating activities	89,552			114,021
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets	(38,001		)	(29,612		)
Cash distributions received from equity investees - return of investment	7,060			5,425
Proceeds from asset sales	61			358
Net cash used in investing activities	(30,880		)	(23,829		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility	393,500			187,500
Repayments on senior secured credit facility	(375,400		)	(215,600		)
Proceeds from issuance of senior unsecured notes due 2028	750,000			—
Repayment of senior unsecured notes due 2022	(750,000		)	—
Debt issuance costs	(13,295		)	—
Contributions from noncontrolling interests	1,377			610
Distributions to common unitholders	(67,419		)	(67,419		)
Distributions to preferred unitholders	(18,684		)	—
Other, net	6,353			5,621
Net cash used in financing activities	(73,568		)	(89,288		)
Net increase (decrease) in cash, restricted cash, and cash equivalents	(14,896		)	904
Cash, restricted cash and cash equivalents at beginning of period	56,405			10,300
Cash, restricted cash and cash equivalents at end of period	$	41,509		$	11,204

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

~~GENESIS ENERGY, L.P.~~

~~UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL~~

~~(In thousands)~~

Number of
Common Units
Partners’ Capital Noncontrolling Interest Accumulated Other Comprehensive Income Total
Partners’ capital, January 1, 2019 122,579
$ 1,690,799
$ (11,204 ) $ 939
$ 1,680,534
Net income —
15,954
(7 ) —
15,947
Cash distributions to partners —
(67,419 ) —
—
(67,419 )
Cash contributions from noncontrolling interests —
—
610
—
610
Distributions to Class A Convertible Preferred unitholders —
(18,020 ) —
—
(18,020 )
Partners' capital, March 31, 2019 $ 122,579
$ 1,621,314
$ (10,601 ) $ 939
$ 1,611,652

Number of
Common Units
Partners’ Capital Noncontrolling Interest Accumulated Other Comprehensive Loss Total
Partners’ capital, January 1, 2018 122,579
$ 2,022,597
$ (8,079 ) $ (604 ) $ 2,013,914
Net income —
8,034
(136 ) —
7,898
Cash distributions to partners —
(62,515 ) —
—
(62,515 )
Cash contributions from noncontrolling interests —
—
400
—
400
Distributions to Class A Convertible Preferred unitholders —
(16,526 ) $ —
$ —
(16,526 )
Partners' capital, March 31, 2018 122,579
$ 1,951,590
$ (7,815 ) $ (604 ) $ 1,943,171

~~The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.~~

~~GENESIS ENERGY, L.P.~~

~~UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS~~

~~(In thousands)~~

Three Months Ended
March 31,
2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 15,947
$ 7,898
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation, depletion and amortization 77,638
75,255
Amortization and write-off of debt issuance costs and discount 2,682
4,161
Amortization of unearned income and initial direct costs on direct financing leases (3,139 ) (3,330 )
Payments received under direct financing leases 5,167
5,167
Equity in earnings of investments in equity investees (12,997 ) (10,572 )
Cash distributions of earnings of equity investees 12,400
10,352
Non-cash effect of long-term incentive compensation plans 1,565
(136 )
Deferred and other tax liabilities 252
225
Unrealized loss on derivative transactions 5,666
2,642
Other, net 5,640
(1,552 )
Net changes in components of operating assets and liabilities (Note 14)
3,200
(3,782 )
Net cash provided by operating activities 114,021
86,328
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets (29,612 ) (66,051 )
Cash distributions received from equity investees - return of investment 5,425
9,277
Proceeds from asset sales 358
6
Net cash used in investing activities (23,829 ) (56,768 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility 187,500
333,800
Repayments on senior secured credit facility (215,600 ) (154,000 )
Repayment of senior unsecured notes —
(145,170 )
Debt issuance costs —
(159 )
Contributions from noncontrolling interests 610
400
Distributions to common unitholders (67,419 ) (62,515 )
Other, net 5,621
5,135
Net cash used in financing activities (89,288 ) (22,509 )
Net increase in cash and cash equivalents 904
7,051
Cash and cash equivalents at beginning of period 10,300
9,041
Cash and cash equivalents at end of period $ 11,204
$ 16,092

~~The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.~~

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Basis of Presentation and Consolidation

Organization

We are a growth-oriented master limited partnership formed in Delaware in 1996 and focused on the midstream segment of the crude oil and natural gas industry in the Gulf Coast region of the United States and the Gulf of Mexico. We provide an integrated suite of services to refiners, crude oil and natural gas producers, and industrial and commercial enterprises and have a diverse portfolio of assets, including pipelines, offshore hub and junction platforms, our soda ash business (our "Alkali Business"), refinery-related plants, storage tanks and terminals, railcars, rail unloading facilities, barges and other vessels, and trucks. We are owned 100% by our limited partners. Genesis Energy, LLC, our general partner, is a wholly-owned subsidiary. Our general partner has sole responsibility for conducting our business and managing our operations. We conduct our operations and own our operating assets through our subsidiaries and joint ventures.

We currently manage our businesses through the following ~~four~~4 divisions that constitute our reportable segments:

Offshore pipeline transportation and processing of crude oil and natural gas in the Gulf of Mexico;

Sodium minerals and sulfur services involving trona and trona-based exploring, mining, processing, producing, marketing and selling activities, as well as processing of high sulfur (or "sour") gas streams for refineries to remove the sulfur, and selling the related by-product, sodium hydrosulfide (or "NaHS", commonly pronounced "nash");


•	Onshore facilities and transportation, which include terminalling, blending, storing, marketing, and transporting crude oil, petroleum products, and CO₂; and

Marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America.

Basis of Presentation and Consolidation

The accompanying Unaudited Condensed Consolidated Financial Statements include Genesis Energy, L.P. and its subsidiaries, including our general partner, Genesis Energy, LLC.

Our results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the fiscal year. The Condensed Consolidated Financial Statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission ~~("SEC"~~(the "SEC"). Accordingly, they reflect all adjustments (which consist solely of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial results for interim periods. Certain information and notes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures are adequate to make the information presented not misleading when read in conjunction with the information contained in the periodic reports we file with the SEC pursuant to the Securities Exchange Act of 1934, including the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019 (our "Annual Report").

Except per unit amounts, or as noted within the context of each footnote disclosure, the dollar amounts presented in the tabular data within these footnote disclosures are stated in thousands of dollars.

COVID-19 Update

~~2. Recent Accounting Developments~~In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. Our operations, which fall within the energy, mining and transportation sectors, are considered critical and essential by the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency ("CISA") and we have continued to operate our assets during this pandemic.

~~Recently Adopted~~

We ~~have adopted guidance under ASC Topic 606, Revenue~~considered the impact of COVID-19 on the assumptions and estimates reflected in our financial statements. We noted, other than the impact of general macroeconomic conditions, there were no material adverse effects from ~~Contracts with Customers, and all related ASUs (collectively "ASC 606") as of January 1, 2018 utilizing~~ the ~~modified retrospective method of adoption. Our material equity method investment, Poseidon Oil Pipeline Company, LLC (“Poseidon”), adopted ASC 606~~pandemic on ~~January 1, 2019. The adoption did not have an impact to~~ our ~~investment balance or equity in earnings at~~results for the ~~transition date or at~~three months ended March 31, ~~2019. Refer to~~ ~~Note 3~~ ~~for~~2020. See further ~~details.~~discussion on COVID-19 in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

We have adopted guidance under ASC Topic 842, Lease Accounting ("ASC 842"), as of January 1, 2019 utilizing the modified retrospective method of adoption. Additionally, we elected to implement the practical expedients that pertain to easements, separation of lease components, and the package of practical expedients which among other things, allows us to carry over previous lease conclusions reached under ASC 840. As a result of adopting the new lease standard, we recorded an operating lease right of use asset of approximately $209 million with a corresponding lease liability as of the transition date. Refer to ~~Note 4~~ ~~for further details.~~

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2. Recent Accounting Developments

In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715). ASU 2017-07 requires employers to separate the service cost component from the other components of net benefit cost in the period. The new standard requires the other components of net benefit costs (excluding service costs), be reclassified to "Other expense" from "General and administrative." Recently Adopted

We have adopted ~~this standard~~guidance under ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"), as of January 1, ~~2018. This~~2020 . The standard ~~is applied retrospectively. The effect was not material to our financial statements for the three months ended March 31, 2019 and 2018.~~

~~Recently Issued~~

~~In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ("ASU 2016-13"). ASU 2016-13 changes~~changed the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans, and other instruments, entities ~~will be~~are required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. ~~The guidance also requires increased disclosures. ASU 2016-13 is effective for interim~~We performed an assessment at our adoption date, January 1, 2020, which consisted of reviewing current and ~~annual periods beginning after December 15, 2019. Early~~historical information pertaining to our trade accounts receivable and existing contract assets. Our assessment resulted in an immaterial impact to our consolidated financial statements as of the adoption ~~is permitted. The standard requires varying transition methods~~date and for the ~~different categories~~three months ended March 31, 2020.

During the first quarter of ~~amendments. We do not expect ASU 2016-13~~2020, the SEC amended the financial disclosure requirements for guarantors and issuers of guaranteed securities registered or being registered in Rule 3-10 of Regulation S-X to go in effect January 4, 2021. The amendment simplifies the disclosure requirements and permits the amended disclosures to be provided outside the footnotes in audited annual or unaudited interim consolidated financial statements in all filings. As permitted by the amendment, we have ~~a material impact on our~~early adopted the amendment and included the required summarized financial ~~statements.~~

information in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

3. Revenue Recognition

Revenue from Contracts with Customers

The following tables reflect the disaggregation of our revenues by major category for the three months ended March 31, ~~2019~~2020 and ~~March 31, 2018,~~2019, respectively:


	Three Months Ended March 31, 2019										Three Months Ended March 31, 2020
	Onshore Facilities & Transportation		Sodium Minerals & Sulfur Services		Offshore Pipeline Transportation		Marine Transportation		Consolidated		Offshore Pipeline Transportation		Sodium Minerals & Sulfur Services		Marine Transportation		Onshore Facilities and Transportation		Consolidated
Fee-based revenues	$	38,012	$	—	$	78,317	$	56,650	$	172,979	$	78,429	$	—	$	62,346	$	40,990	$	181,765
Product Sales	171,544		257,843		—		—		429,387		—		215,366		—		114,768		330,134
Refinery Services	—		17,643		—		—		17,643		—		28,024		—		—		28,024
	$	209,556	$	275,486	$	78,317	$	56,650	$	620,009	$	78,429	$	243,390	$	62,346	$	155,758	$	539,923



	Three Months Ended March 31, 2019
	Offshore Pipeline Transportation		Sodium Minerals & Sulfur Services		Marine Transportation		Onshore Facilities & Transportation		Consolidated
Fee-based revenues	$	78,317	$	—	$	56,650	$	38,012	$	172,979
Product Sales	—		257,843		—		171,544		429,387
Refinery Services	—		17,643		—		—		17,643
	$	78,317	$	275,486	$	56,650	$	209,556	$	620,009

Three Months Ended
March 31, 2018
Onshore Facilities & Transportation Sodium Minerals & Sulfur Services Offshore Pipeline Transportation Marine Transportation Consolidated
Fee-based revenues $ 30,338
$ —
$ 73,260
$ 48,929
$ 152,527
Product Sales 287,371
263,965
—
—
551,336
Refinery Services —
21,945
—
—
21,945
$ 317,709
$ 285,910
$ 73,260
$ 48,929
$ 725,808

The Company recognizes revenue upon the satisfaction of its performance obligations under its contracts. The timing of revenue recognition varies for our different revenue streams. In general, the timing includes recognition of revenue over time as services are being performed as well as recognition of revenue at a point in time, for delivery of products.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Contract Assets and Liabilities

The table below depicts our contract asset and liability balances at December 31, ~~2018~~2019 and March 31, ~~2019:~~2020:



	Contract Assets				Contract Liabilities
	Current		Non-Current		Current		Non-Current
Balance at December 31, 2019	$	21,912	$	54,232	$	2,896	$	23,170
Balance at March 31, 2020	33,672		37,277		2,983		22,376

Contract Assets Contract Liabilities
Current Non-Current Non-Current
Balance at December 31, 2018 $ —
$ 72,241
$ 26,271
Balance at March 31, 2019 3,456
73,584
27,684

During the three months ended March 31, 2019, there were no balances that were previously classified as contract liabilities at the beginning of the period that were recognized as revenues. Accounts receivable-trade, net does not include consideration received in kind from our refinery services process. We did not have any material contract modifications during the period that would affect our contract asset and liability balances.

Transaction Price Allocations to Remaining Performance Obligations

We are required to disclose the amount of our transaction prices that are allocated to unsatisfied performance obligations as of March 31, ~~2019. However,~~2020. We are exempted from disclosing performance obligations with a duration of one year or less, revenue recognized related to performance obligations where the consideration corresponds directly with the value provided to customers, and contracts with variable consideration that is allocated wholly to an unsatisfied performance obligation or promise to transfer a good or service that is part of a series in accordance with ASC ~~606 does provide the following practical expedients and exemptions that we utilized:~~606.


1)	~~Performance obligations that are part of a contract with an expected duration of one year or less;~~


2)	~~Revenue recognized from the satisfaction of performance obligations where we have a right to consideration in an amount that corresponds directly with the value provided to customers; and~~


3)	Contracts that contain variable consideration, such as index-based pricing or variable volumes, that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that is part of a series.

~~We apply these practical expedients and exemptions to our revenue streams recognized over time.~~ The majority of our contracts qualify for one of these expedients or exemptions. ~~After considering these practical expedients and identifying~~For the remaining contract types that involve revenue recognition over a long-term period ~~and include~~with long-term fixed consideration (adjusted for indexing as required), we determined our allocations of transaction price that relate to unsatisfied performance obligations. ~~As it relates to~~For our tiered pricing offshore transportation contracts, we provide firm capacity for both fixed and variable consideration over a long term period. Therefore, we have allocated the remaining contract value ~~(as estimated and discussed above)~~ to future periods.

The following chart depicts how we expect to recognize revenues for future periods related to these contracts:



	Offshore Pipeline Transportation		Onshore Facilities and Transportation
Remainder of 2020	$	54,873	$	43,220
2021	58,623		20,269
2022	69,134		4,283
2023	58,540		—
2024	52,812		—
Thereafter	154,899		—
Total	$	448,881	$	67,772

Offshore Pipeline Transportation Onshore Facilities and Transportation
Remainder of 2019 $ 67,074
$ 48,393
2020 54,414
57,090
2021 37,806
20,139
2022 26,170
4,283
2023 15,518
—
Thereafter 123,665
—
Total $ 324,647
$ 129,905

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

4. Lease Accounting

Lessee Arrangements

We lease a variety of transportation equipment (including trucks, trailers, and railcars), terminals, land and facilities, and office space and equipment. Lease terms vary and can range from short term (under 12 months) to long term (greater than 12 months). A majority of our leases contain options to extend the life of the lease at our sole discretion. We considered these options when determining the lease terms used to derive our right of use asset and associated lease liability. Leases with a term of less than 12 months are not recorded on our ~~consolidated balance sheet and we recognize lease expense for these leases~~Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term.

Certain lease agreements include lease and non-lease components. We have elected to combine lease and non-lease components for all of our underlying assets for the purpose of deriving our right of use asset and lease liability. Additionally, certain lease payments are driven by variable factors, such as plant production or indexing rates. Variable costs are expensed as incurred and are not included in our determination for our lease liability and right of use asset.

As a lessee, we do not have any finance leases and none of our leases contain material residual value guarantees or material restrictive covenants. In addition, most of our leases do not provide an implicit rate, and as such, we determined our incremental borrowing rate based on the information available at January 1, 2019 in determining the present value of lease payments.

~~Our lease portfolio consists of operating leases within three major categories:~~

Leases Classification Financial Statement Caption March 31,
2019 January 1,
2019
Assets

Transportation Equipment Right of Use Assets, net 113,384
117,727
Office Space & Equipment Right of Use Assets, net 13,316
14,194
Facilities and Equipment Right of Use Assets, net 74,088
77,008
Total Right of Use Assets, net 200,788

208,929
Liabilities
Current Accrued liabilities 31,560
33,016
Non-Current Other long-term liabilities 163,649
171,348
Total Lease Liability $ 195,209

$ 204,364

Our Right of Use Assets, net balance ~~above~~ includes our unamortized initial direct costs associated with certain of our transportation equipment leases. Additionally, it includes our unamortized prepaid rents, our deferred rents, and our previously classified intangible asset associated with a favorable ~~lease (Note 8~~).lease. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use.

We recorded total operating lease costs of $13.2 million during the three months ended March 31, 2019. The total operating cost includes the amounts associated with our existing lease liabilities, along with both short term and variable lease costs incurred during the period which are not significant to the operating lease cost individually, or in the aggregate.

1110

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The maturities of our operating lease liabilities as of March 31, 2019 on an undiscounted cash flow basis reconciled to the present value recorded on our Unaudited Condensed Consolidated Balance Sheet:

Maturity of Lease Liabilities Transportation Equipment Office Space and Equipment Facilities and Equipment Operating Leases
Remainder of 2019 $ 20,898
$ 3,088
$ 8,408
$ 32,394
2020 24,621
4,049
9,383
38,053
2021 19,483
3,067
6,720
29,270
2022 17,880
2,362
5,410
25,652
2023 17,077
598
5,349
23,024
Thereafter 43,619
2,307
129,085
175,011
Total Lease Payments 143,578
15,471
164,355
323,404
Less: Interest (26,689 ) (2,117 ) (99,389 ) (128,195 )
Present value of operating lease liabilities $ 116,889
$ 13,354
$ 64,966
$ 195,209

~~The following table presents the weighted average remaining term and discount rate related to our right of use assets:~~



~~Lease Term and Discount Rate~~	~~March 31,~~ ~~2019~~
~~Weighted-average remaining lease term~~	~~12.1 years~~
~~Weighted-average discount rate~~	~~7.53%~~

~~The following table provides information regarding the cash paid and right of use assets obtained related to our operating leases:~~

Cash Flows Information March 31,
2019
Cash paid for amounts included in the measurement of lease liabilities $ 12,640
Leased assets obtained in exchange for new operating lease liabilities 197,812

Lessor Arrangements

We have the following contracts in which we act as a lessor. We also, from time to time, sublease certain of our transportation and facilities equipment to third parties.

Operating Leases

We act as a lessor in our revenue ~~contract~~contracts associated with the M/T American Phoenix, within the marine transportation segment, and on our Free State pipeline system, included in our onshore facilities and transportation segment. ~~The M/T American Phoenix ocean tanker is currently under charter along~~These revenues are recorded within its respective segment's revenues in the ~~Gulf Coast until 2020 with a large refining customer. We recorded~~Unaudited Condensed Consolidated Statements of Operations. Our lease ~~revenue~~revenues for these arrangements (inclusive of ~~$6.7 million~~fixed and ~~$6.3 million~~variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, ~~and 2018, respectively, which is recorded in marine transportation revenues on the Unaudited Condensed Consolidated Statements of Operations.~~

Additionally, we act as a lessor on our Free State pipeline system, which is included in the onshore and facilities transportation segment. The Free State pipeline is an 86 mile pipeline in Eastern Mississippi used to transport CO₂that is recovered in the area downstream to several delivery points in and around the Mississippi region. Our Free State pipeline is currently under lease through 2028 to an affiliate of an independent crude oil company. We receive fixed installments through the life of the lease as well as variable consideration that is determined by average daily volumes of throughput. We recorded total revenue of $1.6 million and $1.5 million for the three months ended March 31, 2019 and 2018, respectively, which is recorded in onshore facilities and transportation revenues on the Unaudited Condensed Consolidated Statements of Operations.

respectively:



	Three Months Ended March 31,
	2020		2019
M/T American Phoenix	$	6,643	$	6,660
Free State Pipeline	1,923		1,634

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

Direct Finance Lease

Our direct finance lease includes a lease of the Northeast Jackson Dome ("NEJD") Pipeline. Under the terms of the agreement, we are paid a quarterly payment, which commenced in August 2008. These payments are fixed at approximately $5.2 million per quarter during the lease term at an interest rate of 10.25%. At the end of the lease term in 2028, we will convey all of our interest in the NEJD Pipeline to the lessee for a nominal payment.

The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, ~~2019:~~2020:



	Operating Leases				Direct Financing Lease
Maturity of Lessor Receipts	Marine Transportation		Onshore Facilities and Transportation		Onshore Facilities and Transportation
Remainder of 2020	$	13,394	$	900	$	15,501
2021	—		1,200		20,668
2022	—		1,200		20,668
2023	—		1,200		20,668
2024	—		1,200		20,668
Thereafter	—		4,100		72,336
Total Lease Receipts	13,394		9,800		170,509
Less: Interest	—		—		(55,733		)
Total Net Lease Receipts	$	13,394	$	9,800	$	114,776

Operating Leases Direct Financing Lease
Maturity of Lessor Receipts Marine Transportation Onshore Facilities and Transportation Onshore Facilities and Transportation
Remainder of 2019 $ 20,350
$ 900
$ 15,501
2020 20,128
1,200
20,668
2021 —
1,200
20,668
2022 —
1,200
20,668
2023 —
1,200
20,668
Thereafter —
5,300
93,005
Total Lease Receipts 40,478
11,000
191,178
Less: Interest —
—
(67,843 )
Total Net Lease Receipts $ 40,478
$ 11,000
$ 123,335

The present value of our lease receivables for our direct finance lease includes a current portion of ~~$8.6~~$9.5 million, which is recorded in other current assets on the Unaudited Condensed Consolidated Balance Sheet as of March 31, ~~2019.~~2020.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

5. Inventories

The major components of inventories were as follows:



	March 31, 2020		December 31, 2019
Petroleum products	$	3,645	$	2,721
Crude oil	3,133		5,271
Caustic soda	5,821		5,965
NaHS	13,473		10,845
Raw materials - Alkali operations	5,999		6,238
Work-in-process - Alkali operations	8,399		8,579
Finished goods, net - Alkali operations	17,779		14,168
Materials and supplies, net - Alkali operations	11,912		11,350
Total	$	70,161	$	65,137

March 31,
2019 December 31,
2018
Petroleum products $ 4,585
$ 12,203
Crude oil 24,238
8,379
Caustic soda 8,040
10,372
NaHS 8,632
12,400
Raw materials - Alkali operations 6,401
5,952
Work-in-process - Alkali operations 6,343
2,322
Finished goods, net - Alkali operations 10,941
11,402
Materials and supplies, net - Alkali operations 10,967
10,490
Other —
11
Total $ 80,147
$ 73,531

Inventories are valued at the lower of cost or net realizable value. The net realizable value of inventories ~~were not recorded~~was adjusted $3.5 million below cost as of March 31, ~~2019 and were recorded below cost by $1.0 million~~2020, with 0 such adjustment as of December 31, ~~2018.~~2019.

1312

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

6. Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations

Fixed Assets

Fixed assets, net consisted of the following:



	March 31, 2020			December 31, 2019
Crude oil pipelines and natural gas pipelines and related assets	$	2,892,342		$	2,891,489
Alkali facilities, machinery, and equipment	594,263			591,547
Onshore facilities, machinery, and equipment	641,135			640,376
Transportation equipment	19,662			19,864
Marine vessels	994,730			979,171
Land, buildings and improvements	238,992			238,451
Office equipment, furniture and fixtures	22,659			22,645
Construction in progress	122,036			115,162
Other	41,891			41,891
Fixed assets, at cost	5,567,710			5,540,596
Less: Accumulated depreciation	(1,311,219		)	(1,246,121		)
Net fixed assets	$	4,256,491		$	4,294,475

March 31,
2019 December 31,
2018
Crude oil pipelines and natural gas pipelines and related assets $ 2,918,841
$ 2,918,285
Alkali facilities, machinery, and equipment 536,987
533,924
Onshore facilities, machinery, and equipment 639,623
639,023
Transportation equipment 19,415
20,102
Marine vessels 957,846
951,597
Land, buildings and improvements 222,249
222,242
Office equipment, furniture and fixtures 20,505
20,505
Construction in progress 114,856
94,025
Other 41,155
41,155
Fixed assets, at cost 5,471,477
5,440,858
Less: Accumulated depreciation (1,093,199 ) (1,023,825 )
Net fixed assets $ 4,378,278
$ 4,417,033

Mineral Leaseholds

Our Mineral Leaseholds, relating to our Alkali Business, consist of the following:



	March 31, 2020			December 31, 2019
Mineral leaseholds	$	566,019		$	566,019
Less: Accumulated depletion	(11,157		)	(10,194		)
Mineral leaseholds, net of accumulated depletion	$	554,862		$	555,825

March 31,
2019 December 31,
2018
Mineral leaseholds $ 566,019
$ 566,019
Less: Accumulated depletion (6,858 ) (5,538 )
Mineral leaseholds, net $ 559,161
$ 560,481

Our depreciation and depletion expense for the periods presented was as follows:



	Three Months Ended March 31,
	2020		2019
Depreciation expense	$	69,242	$	71,672
Depletion expense	963		1,319

Three Months Ended
March 31,
2019 2018
Depreciation expense $ 71,672
$ 68,428
Depletion expense 1,319
1,137

Asset Retirement Obligations

We record asset retirement obligations ("AROs") in connection with legal requirements to perform specified retirement activities under contractual arrangements and/or governmental regulations.

The following table presents information regarding our AROs since December 31, ~~2018~~2019:



ARO liability balance, December 31, 2019	$	175,081
Accretion expense	2,233
Changes in estimate	(800		)
Settlements	(6,986		)
ARO liability balance, March 31, 2020	$	169,528

ARO liability balance, December 31, 2018 $ 239,865
Accretion expense 2,220
Settlements (6,068 )
ARO liability balance, March 31, 2019 $ 236,017

1413

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Of the ARO balances disclosed above, ~~$86.5~~$13.8 million and ~~$67.5~~$26.6 million is included as current in "Accrued liabilities" on our Unaudited Condensed Consolidated Balance Sheet as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively. The remainder of the ARO liability as of March 31, ~~2019~~2020 and December 31, ~~2018~~2019 is included in "Other long-term liabilities" on our Unaudited Condensed Consolidated Balance Sheet.

With respect to our AROs, the following table presents our ~~forecast~~estimate of accretion expense for the periods indicated:



Remainder of	2020	$	7,029
	2021	$	9,402
	2022	$	9,412
	2023	$	10,075
	2024	$	10,786

Remainder of 2019 $ 7,660
2020 $ 10,997
2021 $ 9,313
2022 $ 9,892
2023 $ 10,586

Certain of our unconsolidated affiliates have AROs recorded at March 31, ~~2019~~2020 relating to contractual agreements and regulatory requirements. These amounts are immaterial to our Unaudited Condensed Consolidated Financial Statements.

7. Equity Investees

We account for our ownership in our joint ventures under the equity method of accounting. The price we pay to acquire an ownership interest in a company may exceed or be less than the underlying book value of the capital accounts we acquire. Such excess cost amounts are included within the carrying values of our equity investees. At March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, the unamortized excess cost amounts totaled ~~$362.5~~$347.0 million and ~~$366.4~~$350.9 million, respectively. We amortize the excess cost as a reduction in equity earnings.

The following table presents information included in our Unaudited Condensed Consolidated Financial Statements related to our equity investees.



	Three Months Ended March 31,
	2020			2019
Genesis’ share of operating earnings	$	18,032		$	16,870
Amortization of excess purchase price	(3,873		)	(3,873		)
Net equity in earnings	$	14,159		$	12,997
Distributions received	$	20,565		$	17,825

Three Months Ended
March 31,
2019 2018
Genesis’ share of operating earnings $ 16,870
$ 14,514
Amortization of excess purchase price (3,873 ) (3,942 )
Net equity in earnings $ 12,997
$ 10,572
Distributions received $ 17,825
$ 19,629

The following tables present the unaudited balance sheet and income statement information (on a 100% basis) for Poseidon Oil Pipeline Company, L.L.C. ("Poseidon") (which is our most significant equity investment):



	March 31, 2020			December 31, 2019
BALANCE SHEET DATA:
Assets
Current assets	$	20,112		$	30,307
Fixed assets, net	183,268			187,091
Other assets	2,014			2,113
Total assets	$	205,394		$	219,511
Liabilities and equity
Current liabilities	$	15,135		$	15,558
Other liabilities	236,659			245,976
Equity	(46,400		)	(42,023		)
Total liabilities and equity	$	205,394		$	219,511

March 31,
2019 December 31,
2018
BALANCE SHEET DATA:
Assets
Current assets $ 15,495
$ 18,911
Fixed assets, net 198,289
202,116
Other assets 2,184
886
Total assets $ 215,968
$ 221,913
Liabilities and equity
Current liabilities $ 17,217
$ 15,909
Other liabilities 237,778
242,881
Equity (39,027 ) (36,877 )
Total liabilities and equity $ 215,968
$ 221,913

1514

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



	Three Months Ended March 31,
	2020		2019
INCOME STATEMENT DATA:
Revenues	$	32,892	$	31,052
Operating income	$	23,606	$	22,305
Net income	$	21,583	$	19,850

Three Months Ended
March 31,
2019 2018
INCOME STATEMENT DATA:
Revenues $ 31,052
$ 28,944
Operating income $ 22,305
$ 20,347
Net income $ 19,850
$ 18,578

Poseidon's Revolving Credit Facility

Borrowings under Poseidon’s revolving credit facility, which was amended and restated in March 2019, are primarily used to fund spending on capital projects. The March 2019 credit facility is non-recourse to Poseidon’s owners and secured by substantially all of Poseidon's assets and has a ~~new~~ maturity date of March 2024. The March 2019 credit facility contains customary covenants such as restrictions on debt levels, liens, guarantees, mergers, sale of assets and distributions to owners. A breach of any of these covenants could result in acceleration of the maturity date of Poseidon’s debt. Poseidon was in compliance with the terms of its credit agreement for all periods presented in these Unaudited Condensed Consolidated Financial Statements.

8. Intangible Assets

The following table summarizes the components of our intangible assets at the dates indicated:



	March 31, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Carrying Value		Gross Carrying Amount		Accumulated Amortization		Carrying Value
Marine contract intangibles	$	27,800	$	24,392	$	3,408	$	27,800	$	23,033	$	4,767
Offshore pipeline contract intangibles	158,101		38,832		119,269		158,101		36,752		121,349
Other	35,551		22,157		13,394		34,291		21,480		12,811
Total	$	221,452	$	85,381	$	136,071	$	220,192	$	81,265	$	138,927

March 31, 2019 December 31, 2018

Gross
Carrying
Amount

Accumulated
Amortization

Carrying
Value

Gross
Carrying
Amount

Accumulated
Amortization

Carrying
Value
Intangibles associated with lease ⁽¹⁾
$ —
$ —
$ —
$ 13,260
$ 5,407
$ 7,853
Marine contract intangibles 27,800
18,953
8,847
27,800
17,593
10,207
Offshore pipeline contract intangibles 158,101
30,511
127,590
158,101
28,431
129,670
Other 31,707
17,650
14,057
31,747
16,875
14,872
Total $ 217,608
$ 67,114
$ 150,494
$ 230,908
$ 68,306
$ 162,602

(1) Intangible assets associated with a lease in our onshore facilities & transportation segment are now classified as part of our Right or Use Assets, net as part of our adoption of ASC 842 as of January 1, 2019 (~~Note 4~~).

Our amortization of intangible assets for the periods presented was as follows:



	Three Months Ended March 31,
	2020		2019
Amortization of intangible assets	$	4,116	$	4,289

Three Months Ended
March 31,
2019 2018
Amortization of intangible assets $ 4,289
$ 5,433

We estimate that our amortization expense for the next five years will be as follows:



Remainder of	2020	$	11,563
	2021	$	10,576
	2022	$	10,416
	2023	$	10,147
	2024	$	9,823

Remainder of 2019 $ 12,882
2020 $ 16,167
2021 $ 10,364
2022 $ 10,205
2023 $ 9,919

1615

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

9. Debt

Our obligations under debt arrangements consisted of the following:



	March 31, 2020						December 31, 2019
	Principal		Unamortized Discount and Debt Issuance Costs ⁽¹⁾		Net Value		Principal		Unamortized Discount and Debt Issuance Costs ⁽¹⁾		Net Value
Senior secured credit facility	$	977,400	$	—	$	977,400	$	959,300	$	—	$	959,300
6.750% senior unsecured notes due 2022	—		—		—		750,000		9,349		740,651
6.000% senior unsecured notes due 2023	400,000		3,290		396,710		400,000		3,557		396,443
5.625% senior unsecured notes due 2024	349,200		3,699		345,501		350,000		3,923		346,077
6.500% senior unsecured notes due 2025	550,000		6,715		543,285		550,000		7,020		542,980
6.250% senior unsecured notes due 2026	446,600		5,970		440,630		450,000		6,214		443,786
7.750% senior unsecured notes due 2028	750,000		12,955		737,045		—		—		—
Total long-term debt	$	3,473,200	$	32,629	$	3,440,571	$	3,459,300	$	30,063	$	3,429,237

March 31, 2019 December 31, 2018
Principal
Unamortized Discount and Debt Issuance Costs ⁽¹⁾
Net Value Principal
Unamortized Discount and Debt Issuance Costs ⁽¹⁾
Net Value
Senior secured credit facility $ 942,000
$ —
$ 942,000
$ 970,100
$ —
$ 970,100
6.750% senior unsecured notes 750,000
11,919
738,081
750,000
12,763
737,237
6.000% senior unsecured notes 400,000
4,357
395,643
400,000
4,624
395,376
5.625% senior unsecured notes 350,000
4,596
345,404
350,000
4,820
345,180
6.500% senior unsecured notes 550,000
7,936
542,064
550,000
8,241
541,759
6.250% senior unsecured notes 450,000
6,945
443,055
450,000
7,189
442,811
Total long-term debt $ 3,442,000
$ 35,753
$ 3,406,247
$ 3,470,100
$ 37,637
$ 3,432,463


(1)	Unamortized debt issuance costs associated with our senior secured credit facility (included in Other Long Term Assets on the Unaudited Condensed Consolidated Balance Sheet) were ~~$10.0~~$6.8 million and ~~$10.8~~$7.6 million as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively.

As of March 31, ~~2019~~2020, we were in compliance with the financial covenants contained in our credit agreement and senior unsecured notes indentures.

Senior Secured Credit Facility

The key terms for rates under our $1.7 billion senior secured credit facility, which are dependent on our leverage ratio (as defined in the credit agreement), are as follows:

•The interest rate on borrowings may be based on an alternate base rate or a Eurodollar rate, at our option. The alternate base rate is equal to the sum of (a) the greatest of (i) the prime rate as established by the administrative agent for the credit facility, (ii) the federal funds effective rate plus 0.5% of 1% and (iii) the LIBOR rate for a one-month maturity plus 1% and (b) the applicable margin. The Eurodollar rate is equal to the sum of (a) the LIBOR rate for the applicable interest period multiplied by the statutory reserve rate and (b) the applicable margin. The applicable margin varies from 1.50% to 3.00% on Eurodollar borrowings and from 0.50% to 2.00% on alternate base rate borrowings, depending on our leverage ratio. Our leverage ratio is recalculated quarterly and in connection with each material acquisition. At March 31, ~~2019,~~2020, the applicable margins on our borrowings were 1.75% for alternate base rate borrowings and 2.75% for Eurodollar rate borrowings.

•Letter of credit fee rates range from 1.50% to 3.00% based on our leverage ratio as computed under the credit facility. The rate can fluctuate quarterly. At March 31, ~~2019,~~2020, our letter of credit rate was 2.75%.

•We pay a commitment fee on the unused portion of the $1.7 billion maximum facility amount. The commitment fee rates on the unused committed amount will range from 0.25% to 0.50% per annum depending on our leverage ratio. At March 31, ~~2019,~~2020, our commitment fee rate on the unused committed amount was 0.50%.

•The accordion feature is $300.0 million, giving us the ability to expand the size of the facility to up to $2.0 billion for acquisitions or growth projects, subject to lender consent.

On March 25, 2020, we amended our credit agreement. This amendment, among other things, (i) sets the maximum Consolidated Senior Secured Leverage Ratio (as defined in the credit agreement) at 3.25 to 1.00 throughout the remaining term of the facility, and (ii) allows us to purchase certain of our outstanding senior unsecured notes, subject to certain customary conditions.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At March 31, ~~2019,~~2020, we had ~~$942.0~~$977.4 million borrowed under our $1.7 billion credit facility, with ~~$23.6~~$7.7 million of the borrowed amount designated as a loan under the inventory sublimit. Our credit agreement allows up to $100.0 million of the capacity to be used for letters of credit, of which $1.1 million was outstanding at March 31, ~~2019.~~2020. Due to the revolving nature of loans under our credit facility, additional borrowings and periodic repayments and re-borrowings may be made until the maturity date. The total amount available for borrowings under our credit facility at March 31, 2020 was $721.5 million, subject to compliance with covenants.

As a general rule, the assets and credit of our unrestricted subsidiaries are not available to satisfy the debts of Genesis Energy, L.P., Genesis Energy Finance Corporation or the Guarantor Subsidiaries (as defined below in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations), and the liabilities of our unrestricted subsidiaries do not constitute obligations of Genesis Energy, L.P., Genesis Energy Finance Corporation or the Guarantor Subsidiaries except, in the case of Genesis Alkali Holdings Company, LLC ("Alkali Holdings") and Genesis Energy, L.P., to the extent agreed to in the services agreement between Genesis Energy, L.P. and Alkali Holdings dated as of September 23, 2019 ~~was $756.9 million.~~(the "Services Agreement").

Senior Unsecured Note Issuances, Redemption and Extinguishment

On ~~December 11, 2017,~~January 16, 2020, we issued ~~$450~~$750.0 million in aggregate principal amount of ~~6.25%~~our 7.75% senior unsecured notes due ~~May~~February 15, ~~2026~~2028 (the ~~"2026 Notes"~~“2028 Notes”). Interest payments are due ~~May 15~~February 1 and ~~November 15~~August 1 of each year with the initial interest

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

payment due ~~May 15, 2018. Our 2026 Notes mature~~ on ~~May 15, 2026.~~August 1, 2020. That issuance generated net proceeds of ~~$441.8~~$736.7 million net of issuance costs incurred. WeThe net proceeds were used ~~$204.8~~to purchase $527.9 million of ~~the net proceeds to redeem the portion of the~~our existing 6.75% senior unsecured notes due ~~February 15, 2021~~August 1, 2022 (the ~~"2021 Notes"~~“2022 Notes”) ~~that were validly tendered~~, including the related accrued interest and tender premium on those notes, and the remaining ~~net~~ proceeds at the time were used to repay a portion of the borrowings outstanding under our revolving credit facility. On ~~February 15, 2018,~~January 17, 2020 we ~~redeemed our remaining 2021 Notes in full at a~~called for redemption ~~price of 101.438%~~ of the ~~principal amount, plus accrued~~remaining $222.1 million of our 2022 Notes, and ~~unpaid interest up to, but not including, the redemption date.~~ they were redeemed on February 16, 2020. We incurred a total loss of approximately ~~$3.3~~$23.5 million relating to the extinguishment of ~~those~~our 2022 senior unsecured notes, ~~(including~~inclusive of our transactions costs and the write-off of the related unamortized debt issuance ~~costs),~~costs and discount, which is recorded as "Other income (expense)" in our Unaudited Consolidated Statements of Operations for the three months ended March 31, ~~2018.~~2020.

10. Partners’ Capital, Mezzanine Capital and Distributions

At March 31, ~~2019~~2020, our outstanding common units consisted of 122,539,221 Class A units and 39,997 Class B units.

Distributions

We paid or will pay the following distributions to our common unitholders in ~~2018~~2019 and ~~2019~~2020:


Distribution For	Date Paid		Per Unit Amount		Total Amount		Date Paid		Per Unit Amount		Total Amount
2018
2019
1^st Quarter	May 15, 2018		$	0.5200	$	63,741	May 15, 2019		$	0.5500	$	67,419
2^nd Quarter	August 14, 2018		$	0.5300	$	64,967	August 14, 2019		$	0.5500	$	67,419
3^rd Quarter	November 14, 2018		$	0.5400	$	66,193	November 14, 2019		$	0.5500	$	67,419
4^th Quarter	February 14, 2019		$	0.5500	$	67,419	February 14, 2020		$	0.5500	$	67,419
2019
2020
1^st Quarter	May 15, 2019	⁽¹⁾	$	0.5500	$	67,419	May 15, 2020	⁽¹⁾	$	0.1500	$	18,387

(1) This distribution was declared on April ~~10, 2019~~8, 2020 and will be paid to unitholders of record as of May 1, ~~2019.~~2020.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Class A Convertible Preferred Units

~~On September 1, 2017,~~At March 31, 2020 we ~~sold $750 million of our~~had 25,336,778 Class A Convertible Preferred ~~units~~Units (our ~~"preferred units"~~"Class A Convertible Preferred Units") ~~in a private placement, comprised of 22,249,494 units for a cash purchase price per unit of $33.71 (subject to certain adjustments, the “Issue Price”) to two initial purchasers.~~outstanding. Our general partner executed an amendment to our partnership agreement in connection therewith, which, among other things, authorized and established the rights and preferences of our preferred units. Our preferred units are a new class of security that ranksClass A Convertible Preferred Units rank senior to all of our currently outstanding classes or series of limited partner interests with respect to distribution and/or liquidation rights. Holders of our ~~preferred units~~Class A Convertible Preferred Units vote on an as-converted basis with holders of our common units and have certain class voting rights, including with respect to any amendment to the partnership agreement that would adversely affect the rights, preferences or privileges, or otherwise modify the terms, of those ~~preferred units.~~ Class A Convertible Preferred Units.

Accounting for the Class A Convertible Preferred Units

Our ~~preferred units~~Class A Convertible Preferred Units are considered redeemable securities under GAAP due to the existence of redemption provisions upon a deemed liquidation event that is outside our control. Therefore, we present them as temporary equity in the mezzanine section of the Unaudited Consolidated Balance Sheet. Because our ~~preferred units~~Class A Convertible Preferred Units are not currently redeemable and we do not have plans or expect any events that constitute a change of control in our partnership agreement, we present our ~~preferred units~~Class A Convertible Preferred Units at their initial carrying amount. However, we would be required to adjust that carrying amount if it becomes probable that we would be required to redeem our ~~preferred units.~~Class A Convertible Preferred Units.

Initial and Subsequent Measurement

We initially recognized our ~~preferred units~~Class A Convertible Preferred Units at their issuance date fair value, net of issuance costs. We will not be required to adjust the carrying amount of our ~~preferred units~~Class A Convertible Preferred Units until it becomes probable that they would become redeemable. Once redemption becomes probable, we would adjust the carrying amount of our ~~preferred units~~Class A Convertible Preferred Units to the redemption value over a period of time comprising the date the feature first becomes probable and the date the units can first be redeemed. Our Class A Convertible Preferred Units contain a distribution Rate Reset Election (as defined in Note 15) option. This Rate Reset Election is bifurcated and accounted for separately as an embedded derivative and recorded at fair value at each reporting period. Refer to Note 15 and Note 16 for additional discussion.

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

Class A Convertible Preferred ~~unit~~Unit distributions are recognized on the date in which they are declared. Paid-in-kind ("PIK") distributions were declared and issued as follows:



Distribution For	Date Issued	Number of Units₍₁₎	Total Amount
2019
1^st Quarter	May 15, 2019	364,180	$	12,277

Distribution For Date Issued Number of Units Total Amount
2018
1^st Quarter
May 15, 2018 500,976
$ 16,888
2^nd Quarter
August 14, 2018 511,934
$ 17,527
3^rd Quarter
November 14, 2018 523,132
$ 17,635
4^th Quarter
February 14, 2019 534,576
$ 18,021
2019
1^st Quarter
May 15, 2019 364,180
$ 12,277
(1) Subsequent to the first quarter of 2019, all distributions have been and will be paid in cash.

Net Income Attributable to Genesis Energy, L.P. is reduced by ~~preferred unit~~Class A Convertible Preferred Unit distributions that accumulated during the period. ~~During 2019, net loss~~Net income attributable to ~~common unitholders~~Genesis Energy, L.P. was reduced by $18.7 million and $18.4 million ~~as a result~~for the three months ended March 31, 2020 and March 31, 2019.

Table of distributions that accumulated during the period. During this period, we declared a PIK of the portion of the quarterly distribution attributable to the first two months of the 2019 Quarter (as defined below), resulting in the issuance of 364,180 preferred units. For the portion of the quarterly distribution attributable to the final month of the 2019 Quarter, weContents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

We paid or will pay athe following cash distributions to our Class A Convertible Preferred unitholders in 2019 and 2020:



Distribution For	Date Paid		Per Unit Amount		Total Amount
2019
1^st Quarter	May 15, 2019		$	0.2458	$	6,138
2^nd Quarter	August 14, 2019		$	0.7374	$	18,684
3^rd Quarter	November 14, 2019		$	0.7374	$	18,684
4^th Quarter	February 14, 2020		$	0.7374	$	18,684
2020
1^st Quarter	May 15, 2020	⁽¹⁾	$	0.7374	$	18,684

(1) This distribution ~~of $0.2458 for each preferred unit. This total quarterly distribution to the preferred unitholders equates to a quarterly distribution of $0.7374 per preferred unit (or $2.9496~~was declared on ~~an annualized basis). These distributions~~April 8, 2020 and will be ~~payable on May 15, 2019~~paid to ~~preferred~~ unitholders of record ~~at the close~~as of ~~business on~~ May 1, ~~2019.~~2020.

Redeemable Noncontrolling Interests

On September 23, 2019, we, through a subsidiary, Alkali Holdings, entered into an amended and restated Limited Liability Company Agreement of Alkali Holdings (the "LLC Agreement") and a Securities Purchase Agreement (the "Securities Purchase Agreement") whereby certain investment fund entities affiliated with GSO Capital Partners LP (collectively "GSO") purchased $55,000,000 and committed to purchase up to approximately $350,000,000 of preferred units in Alkali Holdings, the entity that holds our trona and trona-based exploring, mining, processing, producing, marketing and selling business, including its Granger facility near Green River, Wyoming. Alkali Holdings will use the net proceeds from the Alkali Holdings preferred units to fund up to 100% of the anticipated cost of expansion of the Granger facility. As of March 31, 2020, we have received cash of $122.9 million for the $130 million of Alkali Holdings preferred units issued to date net of issuance costs, which was inclusive of our transaction related expenses and one-time commitment fee.

On April 14, 2020, we entered into an amendment to our agreements with GSO to, among other things, extend the construction timeline of the Granger expansion project by one year.

Accounting for Redeemable Noncontrolling Interests

Classification

The Alkali Holdings preferred units issued and outstanding are accounted for as a redeemable noncontrolling interest in the mezzanine section on our Unaudited Condensed Consolidated Balance Sheet due to the redemption features for a change of control.

Initial and Subsequent Measurement

We recorded the Alkali Holdings preferred units at their issuance date fair value, net of issuance costs. The fair value as of March 31, 2020 represents the carrying amount based on the issued and outstanding Alkali Holdings preferred units most probable redemption event on the six year anniversary of the closing, which is the predetermined internal rate of return measure accreted using the effective interest method to the redemption value as of the reporting date. Net Income Attributable to Genesis Energy, L.P. for the three months ended March 31, 2020 includes $4.1 million of adjustments, of which $3.3 million was allocated to the PIK distributions on the outstanding Alkali Holdings preferred units and $0.8 million was attributable to redemption accretion value adjustments. We elected to pay distributions for the period ended March 31, 2020 in-kind to our Alkali Holdings preferred unitholders. These PIK distributions increase the unitholders liquidation preference on each Alkali Holdings preferred unit.

As of the reporting date, there are no triggering, change of control, early redemption or monetization events that are probable that would require us to revalue the Alkali Holdings preferred units.

If the Alkali Holdings preferred units were redeemed on the reporting date of March 31, 2020, the redemption amount would be equal to $192.5 million, which would be the multiple of invested capital metric applied to the Alkali Holdings preferred units outstanding plus the make-whole amount on the undrawn minimum Alkali Holdings preferred units.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table shows the change in our ~~mezzanine and preferred units balances~~redeemable noncontrolling interest balance from December 31, ~~2018~~2019 to March 31, ~~2019:~~2020:



Balance as of December 31, 2019	$	125,133
PIK distributions	3,294
Redemption accretion	792
Balance as of March 31, 2020	$	129,219

Class A Convertible Preferred Units
Units $
Balance as of December 31, 2018 24,438,022
$ 761,466
Distributions paid-in-kind 534,576
18,021
Allocation of Distributions paid in-kind to Preferred Distribution Rate Reset Election (Note 16)
—
(979 )
Balance as of March 31, 2019 $ 24,972,598
$ 778,508

11. Net Income (Loss) Per Common Unit

Basic net income per common unit is computed by dividing net income, after considering income attributable to our preferred unitholders, by the weighted average number of common units outstanding.

The dilutive effect of our ~~preferred units~~Class A Convertible Preferred Units is calculated using the if-converted method. Under the if-converted method, ~~our preferred~~these units are assumed to be converted at the beginning of the period (beginning with their respective issuance date), and the resulting common units are included in the denominator of the diluted net income per common unit calculation for the period being presented. Distributions declared in the period and undeclared distributions that accumulated during the period are added back to the numerator for purposes of the if-converted calculation. For the three months ended March 31, ~~2019,~~2020, the effect of the assumed conversion of the ~~24,972,598 preferred units~~25,336,778 Class A Convertible Preferred Units was anti-dilutive and was not included in the computation of diluted earnings per unit.

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

The following table reconciles net income and weighted average units used in computing basic and diluted net income (loss) per common unit (in thousands, except per unit amounts):



	Three Months Ended March 31,
	2020			2019
Net Income Attributable to Genesis Energy L.P.	$	24,909		$	15,954
Less: Accumulated distributions attributable to Class A Convertible Preferred Units	(18,684		)	$	(18,415	)
Net Income (Loss) Available to Common Unitholders	$	6,225		$	(2,461	)

Weighted Average Outstanding Units	122,579			122,579

Basic and Diluted Net Income (Loss) per Common Unit	$	0.05		$	(0.02	)

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended
March 31,
2019 2018
Net Income Attributable to Genesis Energy L.P. $ 15,954
$ 8,034
Less: Accumulated distributions attributable to Class A Convertible Preferred Units (18,415 ) $ (16,888 )
Net Loss Available to Common Unitholders $ (2,461 ) $ (8,854 )

Weighted Average Outstanding Units 122,579
122,579

Basic and Diluted Net Loss per Common Unit $ (0.02 ) $ (0.07 )

12. Business Segment Information

We currently manage our businesses through ~~four~~4 divisions that constitute our reportable segments:

Offshore pipeline transportation – offshore transportation of crude oil and natural gas in the Gulf of Mexico;

Sodium minerals and sulfur services – trona and trona-based exploring, mining, processing, producing, marketing and selling activities, as well as processing high sulfur (or “sour”) gas streams for refineries to remove the sulfur, and selling the related by-product, NaHS;


•	Onshore facilities and transportation – terminalling, blending, storing, marketing and transporting crude oil, petroleum products (primarily fuel oil, asphalt, and other heavy refined products) and CO₂;and

Marine transportation – marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America.

Substantially all of our revenues are derived from, and substantially all of our assets are located in, the United States.

We define Segment Margin as revenues less product costs, operating expenses (excluding non-cash gains and charges, such as depreciation, depletion and amortization), and segment general and administrative expenses, plus our equity in distributable cash generated by our equity investees. In addition, our Segment Margin definition excludes the non-cash effects of our long-term incentive compensation plan and includes the non-income portion of payments received under direct financing leases.

Our chief operating decision maker (our Chief Executive Officer) evaluates segment performance based on a variety of measures including Segment Margin, segment volumes, where relevant, and capital investment.

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

Segment information for the periods presented below was as follows:


	Offshore Pipeline Transportation		Sodium Minerals & Sulfur Services			Onshore Facilities & Transportation			Marine Transportation		Total		Offshore Pipeline Transportation		Sodium Minerals & Sulfur Services			Onshore Facilities & Transportation			Marine Transportation		Total
Three Months Ended March 31, 2020
Segment Margin (a)													$	85,246	$	36,941		$	28,099		$	19,002	$	169,288
Capital expenditures (b)													$	1,027	$	14,975		$	1,157		$	14,232	$	31,391
Revenues:
External customers													$	78,429	$	245,535		$	156,799		$	59,160	539,923
Intersegment (c)													—		(2,145		)	(1,041		)	3,186		—
Total revenues of reportable segments													$	78,429	$	243,390		$	155,758		$	62,346	$	539,923
Three Months Ended March 31, 2019
Segment Margin (a)	$	76,390	$	58,639		$	25,603		$	12,932	$	173,564	$	76,390	$	58,639		$	25,603		$	12,932	$	173,564
Capital expenditures (b)	$	458	$	22,706		$	775		$	9,228	$	33,167	$	458	$	22,706		$	775		$	9,228	$	33,167
Revenues:
External customers	$	78,317	$	277,349		$	211,025		$	53,318	620,009		$	78,317	$	277,349		$	211,025		$	53,318	620,009
Intersegment (c)	—		(1,863		)	(1,469		)	3,332		—		—		(1,863		)	(1,469		)	3,332		—
Total revenues of reportable segments	$	78,317	$	275,486		$	209,556		$	56,650	$	620,009	$	78,317	$	275,486		$	209,556		$	56,650	$	620,009
Three Months Ended March 31, 2018
Segment Margin (a)	$	73,173	$	64,391		$	21,689		$	10,987	$	170,240
Capital expenditures (b)	$	654	$	9,699		$	23,289		$	10,865	$	44,507
Revenues:
External customers	$	73,260	$	287,403		$	320,215		$	44,930	725,808
Intersegment (c)	—		(1,493		)	(2,506		)	3,999		—
Total revenues of reportable segments	$	73,260	$	285,910		$	317,709		$	48,929	$	725,808

Total assets by reportable segment were as follows:


	March 31, 2019		December 31, 2018		March 31, 2020		December 31, 2019
Offshore pipeline transportation	$	2,355,360	$	2,359,013	$	2,267,552	$	2,306,946
Sodium minerals and sulfur services	1,951,478		1,844,845		1,994,957		2,019,905
Onshore facilities and transportation	1,469,582		1,431,910		1,370,309		1,457,190
Marine transportation	788,170		800,243		761,482		772,383
Other assets	50,221		43,060		40,158		41,217
Total consolidated assets	$	6,614,811	$	6,479,071	$	6,434,458	$	6,597,641

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(a)	A reconciliation of total Segment Margin to net income attributable to Genesis Energy, L.P. for the periods is presented below.


(b)	Capital expenditures include maintenance and growth capital expenditures, such as fixed asset additions (including enhancements to existing facilities and construction of growth projects) as well as ~~acquisitions of businesses and~~ contributions to equity investees, ~~related to same.~~if any.


(c)	Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

Reconciliation of total Segment Margin to net income attributable to Genesis Energy, L.P:



	Three Months Ended March 31,
	2020			2019
Total Segment Margin	$	169,288		$	173,564
Corporate general and administrative expenses	(6,492		)	(11,100		)
Depreciation, depletion, amortization and accretion	(75,978		)	(79,937		)
Interest expense	(54,965		)	(55,701		)
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income ⁽¹⁾	(6,406		)	(4,828		)
Other non-cash items⁽²⁾	33,261			(6,091		)
Cash payments from direct financing leases in excess of earnings	(2,238		)	(2,028		)
Loss on extinguishment of debt⁽³⁾	(23,480		)	—
Differences in timing of cash receipts for certain contractual arrangements ⁽⁴⁾	(4,490		)	2,287
Non-cash provision for leased items no longer in use	130			190
Redeemable noncontrolling interest redemption value adjustments ⁽⁵⁾	(4,086		)	—
Income tax benefit (expense)	365			(402		)
Net income attributable to Genesis Energy, L.P.	$	24,909		$	15,954

Three Months Ended
March 31,
2019 2018
Total Segment Margin $ 173,564
$ 170,240
Corporate general and administrative expenses (11,100 ) (10,460 )
Depreciation, depletion, amortization and accretion (79,937 ) (78,008 )
Interest expense (55,701 ) (56,136 )
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income ⁽¹⁾
(4,828 ) (9,057 )
Other non-cash items (6,091 ) (6,137 )
Cash payments from direct financing leases in excess of earnings (2,028 ) (1,839 )
Loss on extinguishment of debt —
(3,339 )
Differences in timing of cash receipts for certain contractual arrangements ⁽²⁾
2,287
3,331
Non-cash provision for leased items no longer in use 190
(186 )
Income tax expense (402 ) (375 )
Net income attributable to Genesis Energy, L.P. $ 15,954
$ 8,034


(1)	Includes distributions attributable to the quarter and received during or promptly following such quarter.


(2)	The 2020 Quarter includes a $32.5 million unrealized gain from the valuation of the embedded derivative associated with our Class A Convertible Preferred units and the 2019 Quarter includes a $3.0 million unrealized loss from the valuation of the embedded derivative. Refer to Note 16 for details.


(3)	Refer to Note 9 for details surrounding the extinguishment of our 2022 notes.


(4)	Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts.

(5) Includes PIK distributions attributable to the period and accretion on the redemption feature.

13. Transactions with Related Parties

The transactions with related parties were as follows:


	Three Months Ended March 31,				Three Months Ended March 31,
	2019		2018		2020		2019
Revenues:
Sales of CO₂ to Sandhill Group, LLC ⁽¹⁾	$	—	$	543
Revenues from services and fees to Poseidon⁽²⁾	3,165		3,200
Revenues from services and fees to Poseidon⁽¹⁾					$	3,147	$	3,165
Revenues from product sales to ANSAC	90,679		90,796		73,079		90,679
Costs and expenses:
Amounts paid to our CEO in connection with the use of his aircraft	$	165	$	165	$	165	$	165
Charges for services from Poseidon⁽²⁾	247		249
Charges for services from Poseidon⁽¹⁾					254		247
Charges for services from ANSAC	1,057		1,778		832		1,057


(1)	~~We owned a 50% interest in Sandhill Group, LLC which was sold during the third quarter of 2018.~~


~~(2)~~	We own 64% interest in Poseidon

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Our CEO, Mr. Sims, owns an aircraft which is used by us for business purposes in the course of operations. We pay Mr. Sims a fixed monthly fee and reimburse the aircraft management company for costs related to our usage of the aircraft, including fuel and the actual out-of-pocket costs. Based on current market rates for chartering of private aircraft under long-term, priority arrangements with industry recognized chartering companies, we believe that the terms of this arrangement are no worse than what we could have expected to obtain in an arms-length transaction.

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

Poseidon

At March 31, ~~2019~~2020 and December 31, ~~2018~~2019 Poseidon owed us ~~$3.2~~$1.7 million and $2.4 million, respectively, for services rendered.

We are the operator of Poseidon and provide management, administrative and pipeline operator services to Poseidon under an Operation and Management Agreement. Currently, that agreement renews automatically annually unless terminated by either party (as defined in the agreement). Our revenues for the three months ended March 31, 2020 and March 31, 2019 reflect $2.3 million and ~~2018 each reflect~~ $2.2 million, respectively of fees we earned through the provision of services under that agreement.

ANSAC

We (through a subsidiary of our Alkali Business) are a member of the American Natural Soda Ash Corp. ("ANSAC"), an organization whose purpose is promoting and increasing the use and sale of natural soda ash and other refined or processed sodium products produced in the U.S. and consumed in specified countries outside of the U.S. Members sell products to ANSAC to satisfy ANSAC’s sales commitments to its customers. ANSAC passes its costs through to its members using a pro rata calculation based on sales. Those costs include sales and marketing, employees, office supplies, professional fees, travel, rent, and certain other costs. Those transactions do not necessarily represent arm's length transactions and may not represent all costs we would otherwise incur if we operated our Alkali Business on a stand-alone basis. We also benefit from favorable shipping rates for our direct exports when using ANSAC to arrange for ocean transport. Net sales to ANSAC were $90.7 million and $90.8 million, during the three months ended March 31, 2019 and 2018, respectively. The costs charged to us by ANSAC, included in operating costs, were $1.1 million and $1.8 million, respectively during the three months ended March 31, 2019 and 2018.

~~Receivables from and payables to ANSAC as of March 31, 2019 and December 31, 2018 are as follows:~~

March 31, December 31,
2019 2018
Receivables:
ANSAC $ 66,194
$ 60,594
Payables:
ANSAC $ 1,067
$ 815

ANSAC is considered a variable interest entity (VIE) because we experience certain risks and rewards from our relationship with it. ~~Because~~As we do not exercise control over ANSAC and are not considered its primary beneficiary, we do not consolidate ANSAC. The ANSAC membership agreement provides that in the event an ANSAC member exits or the ANSAC cooperative is dissolved, the exiting members are obligated for their respective portion of the residual net assets or deficit of the cooperative. As of March 31, 2020, such amount is not estimable.

Net Sales to ANSAC were $73.1 million during the three months ended March 31, 2020 and were $90.7 million during the three months ended March 31, 2019. The costs charged to us by ANSAC, included in operating costs, were $0.8 million during the three months ended March 31, 2020 and were $1.1 million during the three months ended March 31, 2019.

Receivables from and payables to ANSAC as of March 31, 2020 and December 31, 2019 are as follows:



	March 31,		December 31,
	2020		2019
Receivables:
ANSAC	$	66,256	$	68,075
Payables:
ANSAC	$	832	$	2,103

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

14. Supplemental Cash Flow Information

The following table provides information regarding the net changes in components of operating assets and liabilities.



	Three Months Ended March 31,
	2020			2019
(Increase) decrease in:
Accounts receivable	$	101,405		$	18,170
Inventories	(5,024		)	(6,616		)
Deferred charges	2,783			(4,092		)
Other current assets	(3,746		)	(5,067		)
Increase (decrease) in:
Accounts payable	(62,365		)	5,226
Accrued liabilities	(25,519		)	(4,421		)
Net changes in components of operating assets and liabilities	$	7,534		$	3,200

Three Months Ended
March 31,
2019 2018
(Increase) decrease in:
Accounts receivable $ 18,170
$ 27,368
Inventories (6,616 ) (4,469 )
Deferred charges (4,092 ) (4,161 )
Other current assets (5,067 ) (7,694 )
(Decrease) increase in:
Accounts payable 5,226
94
Accrued liabilities (4,421 ) (14,920 )
Net changes in components of operating assets and liabilities $ 3,200
$ (3,782 )

Payments of interest and commitment fees were ~~$39.5~~$33.7 million and ~~$43.0~~$39.5 million for the three months ended March 31, ~~2019~~2020 and March 31, ~~2018,~~2019, respectively. We capitalized interest of ~~$0.7~~$0.5 million and ~~$1.4~~$0.7 million during the three months ended March 31, ~~2019~~2020 and March 31, ~~2018,~~2019, respectively.

At March 31, ~~2019~~2020 and March 31, ~~2018,~~2019, we had incurred liabilities for fixed and intangible asset additions totaling ~~$13.1~~$17.2 million and ~~$20.6~~$13.1 million, respectively, that had not been paid at the end of the quarter, and, therefore, were not included in the caption “Payments to acquire fixed and intangible assets” under Cash Flows from Investing Activities in the Unaudited Condensed Consolidated Statements of Cash Flows.

15. Derivatives

Commodity Derivatives

We have exposure to commodity price changes related to our inventory and purchase commitments. We utilize derivative instruments (primarily futures and options contracts traded on the NYMEX) to hedge our exposure to commodity prices, primarily of crude oil, fuel oil and petroleum products. Our decision as to whether to designate derivative instruments as fair value hedges for accounting purposes relates to our expectations of the length of time we expect to have the commodity price exposure and our expectations as to whether the derivative contract will qualify as highly effective under accounting guidance in limiting our exposure to commodity price risk. Most of the petroleum products, including fuel oil that we supply, cannot be hedged with a high degree of effectiveness with derivative contracts available on the NYMEX; therefore, we do not designate derivative contracts utilized to limit our price risk related to these products as hedges for accounting purposes. Typically we utilize crude oil and other petroleum products futures and option contracts to limit our exposure to the effect of fluctuations in petroleum products prices on the future sale of our inventory or commitments to purchase petroleum products, and we recognize any changes in fair value of the derivative contracts as increases or decreases in our cost of sales. The recognition of changes in fair value of the derivative contracts not designated as hedges for accounting purposes can occur in reporting periods that do not coincide with the recognition of gain or loss on the actual transaction being hedged. Therefore we will, on occasion, report gains or losses in one period that will be partially offset by gains or losses in a future period when the hedged transaction is completed.

We have designated certain crude oil futures contracts as hedges of crude oil inventory due to our expectation that these contracts will be highly effective in hedging our exposure to fluctuations in crude oil prices during the period that we expect to hold that inventory. We account for these derivative instruments as fair value hedges under the accounting guidance. Changes in the fair value of these derivative instruments designated as fair value hedges are used to offset related changes in the fair value of the hedged crude oil inventory. Any hedge ineffectiveness in these fair value hedges and any amounts excluded from effectiveness testing are recorded as a gain or loss in the Unaudited Condensed Consolidated Statements of Operations.

In accordance with NYMEX requirements, we fund the margin associated with our ~~loss positions on~~ commodity derivative contracts traded on the NYMEX. The amount of the margin is adjusted daily based on the fair value of the commodity contracts. The margin requirements are intended to mitigate a party's exposure to market volatility and the associated contracting party risk. We offset fair value amounts recorded for our NYMEX derivative contracts against margin funding as required by the NYMEX in Current Assets - Other in our Unaudited Condensed Consolidated Balance Sheets.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Additionally, we enter into swap arrangements. Our Alkali Business relies on natural gas to generate heat and electricity for operations. We use a combination of commodity price swap contracts and future purchase contracts to manage our exposure to fluctuations in natural gas prices. The swap contracts fix the basis differential between NYMEX Henry Hub and NW Rocky Mountain posted prices. We do not designate these contracts as hedges for accounting purposes. We recognize any changes in fair value of the derivative contracts as increases or decreases in our cost of sales.

At March 31, ~~2019~~2020, we entered into the following outstanding derivative commodity contracts to economically hedge inventory or fixed price purchase commitments.



	Sell (Short) Contracts		Buy (Long) Contracts
Designated as hedges under accounting rules:
Crude oil futures:
Contract volumes (1,000 bbls)	19		—
Weighted average contract price per bbl	$	37.01	$	—

Not qualifying or not designated as hedges under accounting rules:
Crude oil futures:
Contract volumes (1,000 bbls)	248		217
Weighted average contract price per bbl	$	28.54	$	27.89
Natural gas swaps:
Contract volumes (10,000 MMBTU)	503		—
Weighted average price differential per MMBTU	$	0.37	$	—
Natural gas futures:
Contract volumes (10,000 MMBTU)	90		545
Weighted average contract price per MMBTU	$	1.72	$	2.43
Crude oil options:
Contract volumes (1,000 bbls)	55		10
Weighted average premium received/paid	$	3.71	$	9.52

Sell (Short)
Contracts

Buy (Long)
Contracts
Designated as hedges under accounting rules:
Crude oil futures:
Contract volumes (1,000 bbls) 56
—
Weighted average contract price per bbl $ 57.25
$ —

Not qualifying or not designated as hedges under accounting rules:
Crude oil futures:
Contract volumes (1,000 bbls) 336
133
Weighted average contract price per bbl $ 57.90
$ 59.24
Natural gas futures:
Contract volumes (10,000 MMBTU) 136
606
Weighted average contract price per MMBTU $ 2.74
$ 2.80
NYM RBOB Gas futures:
Contract volumes (42,000 gallons) 4
4
Weighted average contract price per gallon $ 1.80
$ 1.81
Fuel oil futures:
Contract volumes (1,000 bbls) 184
100
Weighted average contract price per bbl $ 63.14
$ 62.97
Crude oil options:
Contract volumes (1,000 bbls) 35
10
Weighted average premium received/paid $ 1.21
$ 0.25

Financial Statement Impacts

Unrealized gains are subtracted from net income and unrealized losses are added to net income in determining cash flows from operating activities. To the extent that we have fair value hedges outstanding, the offsetting change recorded in the fair value of inventory is also eliminated from net income in determining cash flows from operating activities. Changes in margin deposits necessary to fund unrealized losses also affect cash flows from operating activities.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables reflect the estimated fair value gain (loss) position of our derivatives at March 31, ~~2019~~2020 and December 31, ~~2018~~2019:

Fair Value of Derivative Assets and Liabilities


	Unaudited Condensed Consolidated Balance Sheets Location	Fair Value						Unaudited Condensed Consolidated Balance Sheets Location	Fair Value
	Unaudited Condensed Consolidated Balance Sheets Location	March 31, 2019			December 31, 2018			Unaudited Condensed Consolidated Balance Sheets Location	March 31, 2020			December 31, 2019
Asset Derivatives:
Commodity derivatives - futures and call options (undesignated hedges):
Gross amount of recognized assets	Current Assets - Other	$	667		$	3,431		Current Assets - Other	$	1,303		$	207
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets	Current Assets - Other	(667		)	(1,361		)	Current Assets - Other	(1,303		)	(207		)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives		$	—		$	2,070			$	—		$	—
Natural Gas Swap (undesignated hedge)	Current Assets - Other	1,163			1,274			Current Assets - Other	511			1,382
Commodity derivatives - futures and call options (designated hedges):
Gross amount of recognized assets	Current Assets - Other	$	2		$	469		Current Assets - Other	$	298		$	4
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets	Current Assets - Other	(2		)	(44		)	Current Assets - Other	(298		)	(4		)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives		$	—		$	425			$	—		$	—
Liability Derivatives:
Preferred Distribution Rate Reset Election ⁽²⁾	Other long-term liabilities	(44,795		)	(40,840		)	Other long-term liabilities	(18,970		)	(51,515		)
Natural Gas Swap (undesignated hedge)	Current Liabilities - Accrued Liabilities	(77		)	(125		)	Current Liabilities - Accrued Liabilities	(167		)	—
Commodity derivatives - futures and call options (undesignated hedges):
Gross amount of recognized liabilities	Current Assets - Other ⁽¹⁾	$	(1,243	)	$	(1,361	)	Current Assets - Other ⁽¹⁾	$	(3,601	)	$	(2,079	)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets	Current Assets - Other ⁽¹⁾	667			1,361			Current Assets - Other ⁽¹⁾	3,446			1,064
Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives		$	(576	)	$	—			$	(155	)	$	(1,015	)
Commodity derivatives - futures and call options (designated hedges):
Gross amount of recognized liabilities	Current Assets - Other ⁽¹⁾	$	(164	)	$	(44	)	Current Assets - Other ⁽¹⁾	$	(8	)	$	(50	)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets	Current Assets - Other ⁽¹⁾	2			44			Current Assets - Other ⁽¹⁾	8			50
Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives		$	(162	)	$	—			$	—		$	—


(1)	These derivative liabilities have been funded with margin deposits recorded in our Unaudited Condensed Consolidated Balance Sheets under Current Assets - Other.

(2) Refer to Note 10 and Note 16 for additional discussion surrounding the Preferred Distribution Rate Reset Election derivative.

Our accounting policy is to offset derivative assets and liabilities executed with the same counterparty when a master netting arrangement exists. Accordingly, we also offset derivative assets and liabilities with amounts associated with cash margin. Our exchange-traded derivatives are transacted through brokerage accounts and are subject to margin requirements as

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

established by the respective exchange. On a daily basis, our account equity (consisting of the sum of our cash balance and the fair value of our open derivatives) is compared to our initial margin requirement resulting in the payment or return of variation margin. As of March 31, ~~2019~~2020, we had a net broker receivable of approximately ~~$1.6~~$1.9 million (consisting of initial margin of ~~$1.8~~$1.0 million ~~decreased~~increased by ~~$0.2~~$0.9 million of variation margin). As of December 31, ~~2018~~2019, we had a net broker receivable of approximately $~~2.2~~0.9 million (consisting of initial margin of $~~3.1~~0.8 million ~~decreased~~ increased by $~~0.9~~0.1 million of variation margin). At March 31, ~~2019~~2020 and December 31, ~~2018~~2019, none of our outstanding derivatives contained credit-risk related contingent features that would result in a material adverse impact to us upon any change in our credit ratings.

Preferred Distribution Rate Reset Election

A derivative feature embedded in a contract that does not meet the definition of a derivative in its entirety must be bifurcated and accounted for separately if the economic characteristics and risks of the embedded derivative are not clearly and closely related to those of the host contract. For a period of 30 days following (i) September 1, 2022 and (ii) each subsequent anniversary thereof, the holders of our ~~preferred units~~Class A Convertible Preferred Units may make a one-time election to reset the quarterly distribution amount (a "Rate Reset Election") to a cash amount per ~~preferred unit~~Class A Convertible Preferred Unit equal to the amount that would be payable per quarter if a ~~preferred unit~~Class A Convertible Preferred Unit accrued interest on the Issue Price at an annualized rate equal to three-month LIBOR plus 750 basis points; provided, however, that such reset rate shall be equal to 10.75% if (i) such alternative rate is higher than the LIBOR-based rate and (ii) the then market price for our common units is then less than 110% of the Issue Price. The Rate Reset Election of our ~~preferred units~~Class A Convertible Preferred Units represents an embedded derivative that must be bifurcated from the related host contract and recorded at fair value on our Unaudited Condensed Consolidated Balance Sheet. Corresponding changes in fair value are recognized in Other ~~Expense~~Income (Expense) in our Unaudited Condensed Consolidated Statement of Operations. At March 31, ~~2019,~~2020, the fair value of this embedded derivative was a liability of ~~$44.8~~$19.0 million. See Note 10 for additional information regarding our ~~preferred units~~Class A Convertible Preferred Units and the Rate Reset Election.

Effect on Operating Results



		Amount of Gain (Loss) Recognized in Income
	Unaudited Condensed Consolidated Statements of Operations Location	Three Months Ended March 31,
		2020			2019
Commodity derivatives - futures and call options:
Contracts designated as hedges under accounting guidance	Onshore facilities and transportation product costs	$	729		$	(742	)
Contracts not considered hedges under accounting guidance	Onshore facilities and transportation product costs, sodium minerals and sulfur services operating costs	(1,375		)	(6,692		)
Total commodity derivatives		$	(646	)	$	(7,434	)

Natural Gas Swap Liability	Sodium minerals and sulfur services operating costs	$	(432	)	$	1,519

Preferred Distribution Rate Reset Election	Other income (expense)	$	32,545		$	(2,976	)

Amount of Gain (Loss) Recognized in Income
Unaudited Condensed Consolidated Statements of Operations Location Three Months Ended
March 31,
2019 2018
Commodity derivatives - futures and call options:
Contracts designated as hedges under accounting guidance Onshore facilities and transportation product costs $ (742 ) $ (1,366 )
Contracts not considered hedges under accounting guidance Onshore facilities and transportation product costs, sodium minerals and sulfur services operating costs (6,692 ) (332 )
Total commodity derivatives $ (7,434 ) $ (1,698 )

Natural Gas Swap Liability Sodium minerals and sulfur services operating costs $ 1,519
$ (275 )

Preferred Distribution Rate Reset Election Other expense $ (2,976 ) $ (1,906 )

16. Fair-Value Measurements

We classify financial assets and liabilities into the following three levels based on the inputs used to measure fair value:


(1)	Level 1 fair values are based on observable inputs such as quoted prices in active markets for identical assets and liabilities;


(2)	Level 2 fair values are based on pricing inputs other than quoted prices in active markets for identical assets and liabilities and are either directly or indirectly observable as of the measurement date; and

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(3)	Level 3 fair values are based on unobservable inputs in which little or no market data exists.

As required by fair value accounting guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Our assessment of the significance of a particular input to the fair value requires judgment and may affect the placement of assets and liabilities within the fair value hierarchy levels.

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, ~~2019~~2020 and December 31, ~~2018.~~2019.



	Fair Value at									Fair Value at
	March 31, 2020									December 31, 2019
Recurring Fair Value Measures	Level 1			Level 2			Level 3			Level 1			Level 2		Level 3
Commodity derivatives:
Assets	$	1,601		$	511		$	—		$	211		$	1,382	$	—
Liabilities	$	(3,609	)	$	(167	)	$	—		$	(2,129	)	$	—	$	—
Preferred Distribution Rate Reset Election	$	—		$	—		$	(18,970	)	$	—		$	—	$	(51,515	)

Fair Value at Fair Value at
March 31, 2019 December 31, 2018
Recurring Fair Value Measures Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Commodity derivatives:
Assets $ 669
$ 1,163
$ —
$ 3,900
$ 1,274
$ —
Liabilities $ (1,407 ) $ (77 ) $ —
$ (1,405 ) $ (125 ) $ —
Preferred Distribution Rate Reset Election $ —
$ —
$ (44,795 ) $ —
$ —
$ (40,840 )

Rollforward of Level 3 Fair Value Measurements

The following table provides a reconciliation of changes in fair value at the beginning and ending balances for our derivatives classified as level 3:



	Three Months Ended March 31,
	2020
Balance as of December 31, 2019	$	(51,515	)
Unrealized gain for the period included in earnings	32,545
Balance as of March 31, 2020	$	(18,970	)

Three months ended March 31,
2019
Balance as of December 31, 2018 $ (40,840 )
Net loss for the period included in earnings (2,976 )
Allocation of Distributions Paid-in-kind (979 )
Balance as of March 31, 2019 $ (44,795 )

Our commodity derivatives include exchange-traded futures and exchange-traded options contracts. The fair value of these exchange-traded derivative contracts is based on unadjusted quoted prices in active markets and is, therefore, included in Level 1 of the fair value hierarchy. The fair value of the swaps contracts was determined using market price quotations and a pricing model. The swap contracts were considered a level 2 input in the fair value hierarchy at March 31, ~~2019.~~2020.

The fair value of the embedded derivative feature is based on a valuation model that estimates the fair value of our ~~preferred units~~Class A Convertible Preferred Units with and without a Rate Reset Election. This model contains inputs, including our common unit price ~~a ten year history of~~relative to the issuance price, the current dividend yield, credit spread, default probabilities, equity volatility and timing estimates which involve management judgment. Our equity volatility rate used to value our embedded derivative feature was 50% at March 31, 2020. A significant increase or decrease in the value of these inputs could result in a material change in fair value to this embedded derivative feature. ~~We report~~During the 2020 Quarter, we recorded an unrealized ~~gains and losses associated with this embedded derivative~~gain of $32.5 million in ~~our~~Other income (expense) on the Unaudited Condensed Consolidated Statements of Operations ~~as Other income (expense), net.~~due to the significant changes in the energy industry credit markets and our common unit price during the period.

See Note 15 for additional information on our derivative instruments.

Other Fair Value Measurements

We believe the debt outstanding under our credit facility approximates fair value as the stated rate of interest approximates current market rates of interest for similar instruments with comparable maturities. At March 31, ~~2019~~2020 our senior unsecured notes had a carrying value of $2.5 billion and fair value of $1.8 billion compared to a carrying value and fair value of $2.5 billion ~~compared to $2.5 billion and $2.3 billion, respectively,~~ at December 31, ~~2018.~~2019. The fair value of the senior unsecured notes is determined based on trade information in the financial markets of our public debt and is considered a Level 2 fair value measurement.

Table of Contents

GENESIS ENERGY, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

17. Commitments and Contingencies

We are subject to various environmental laws and regulations. Policies and procedures are in place to aid in monitoring compliance and detecting and addressing releases of crude oil from our pipelines or other facilities and from our mining operations relating to our Alkali Business; however, no assurance can be made that such environmental releases may not substantially affect our business.

We are subject to lawsuits in the normal course of business and examination by tax and other regulatory authorities. We do not expect such matters presently pending to have a material effect on our financial position, results of operations, or cash flows.

~~18. Condensed Consolidating Financial Information~~

~~The following is condensed consolidating financial information for Genesis Energy, L.P., the guarantor subsidiaries and the non-guarantor subsidiaries.~~

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~Unaudited Condensed Consolidating Balance Sheet~~

~~March 31, 2019~~

Genesis
Energy, L.P.
(Parent and
Co-Issuer)

Genesis
Energy Finance
Corporation
(Co-Issuer)

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries
Eliminations
Genesis
Energy, L.P.
Consolidated
ASSETS
Current assets:
Cash and cash equivalents $ 6
$ —
$ 8,757
$ 2,441
$ —
$ 11,204
Other current assets 25
—
416,882
12,135
(176 ) 428,866
Total current assets 31
—
425,639
14,576
(176 ) 440,070
Fixed assets, at cost —
—
5,393,893
77,584
—
5,471,477
Less: Accumulated depreciation —
—
(1,063,357 ) (29,842 ) —
(1,093,199 )
Net fixed assets —
—
4,330,536
47,742
—
4,378,278
Mineral Leaseholds, net of accumulated depletion —
—
559,161
—
—
559,161
Goodwill —
—
301,959
—
—
301,959
Other assets, net 9,978
—
429,612
115,503
(170,796 ) 384,297
Advances to affiliates 3,238,092
—
—
104,796
(3,342,888 ) —
Equity investees —
—
350,258
—
—
350,258
Investments in subsidiaries 2,656,379
—
62,191
—
(2,718,570 ) —
Right of Use Assets, net $ —
$ —
$ 200,788
$ —
$ —
200,788
Total assets $ 5,904,480
$ —
$ 6,660,144
$ 282,617
$ (6,232,430 ) $ 6,614,811
LIABILITIES AND CAPITAL
Current liabilities $ 53,616
$ —
$ 302,557
$ 47,029
$ (236 ) $ 402,966
Senior secured credit facility 942,000
—
—
—
—
942,000
Senior unsecured notes, net of debt issuance costs 2,464,247
—
—
—
—
2,464,247
Deferred tax liabilities —
—
12,828
—
—
12,828
Advances from affiliates —
—
3,342,790
—
(3,342,790 ) —
Other liabilities 44,795
—
352,381
176,092
(170,658 ) 402,610
Total liabilities 3,504,658
—
4,010,556
223,121
(3,513,684 ) 4,224,651
Mezzanine Capital:
Class A Convertible Preferred Units 778,508
—
—
—
—
778,508
Partners’ capital, common units 1,621,314
—
2,648,649
70,097
(2,718,746 ) 1,621,314
Accumulated other comprehensive income⁽¹⁾
—
—
939
—
—
939
Noncontrolling interests —
—
—
(10,601 ) —
(10,601 )
Total liabilities, mezzanine capital and partners’ capital $ 5,904,480
$ —
$ 6,660,144
$ 282,617
$ (6,232,430 ) $ 6,614,811

⁽¹⁾~~The entire balance and activity within Accumulated Other Comprehensive Income is related to our pension held within our Guarantor Subsidiaries.~~

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~Unaudited Condensed Consolidating Balance Sheet~~

~~Year Ended December 31, 2018~~

Genesis
Energy, L.P.
(Parent and
Co-Issuer)

Genesis
Energy Finance
Corporation
(Co-Issuer)

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries
Eliminations
Genesis
Energy, L.P.
Consolidated
ASSETS
Current assets:
Cash and cash equivalents $ 6
$ —
$ 8,968
$ 1,326
$ —
$ 10,300
Other current assets 50
—
419,809
13,285
(165 ) 432,979
Total current assets 56
—
428,777
14,611
(165 ) 443,279
Fixed assets, at cost —
—
5,363,274
77,584
—
5,440,858
Less: Accumulated depreciation —
—
(994,609 ) (29,216 ) —
(1,023,825 )
Net fixed assets —
—
4,368,665
48,368
—
4,417,033
Mineral Leaseholds, net of accumulated depletion —
—
560,481
—
—
560,481
Goodwill —
—
301,959
—
—
301,959
Other assets, net 10,776
—
440,312
117,766
(167,620 ) 401,234
Advances to affiliates 3,305,568
—
—
103,061
(3,408,629 ) —
Equity investees and other investments —
—
355,085
—
—
355,085
Investments in subsidiaries 2,648,510
—
60,532
—
(2,709,042 ) —
Total assets $ 5,964,910
$ —
$ 6,515,811
$ 283,806
$ (6,285,456 ) $ 6,479,071
LIABILITIES AND CAPITAL
Current liabilities $ 39,342
$ —
$ 266,252
$ 27,350
$ (110 ) $ 332,834
Senior secured credit facilities 970,100
—
—
—
—
970,100
Senior unsecured notes, net of debt issuance costs 2,462,363
—
—
—
—
2,462,363
Deferred tax liabilities —
—
12,576
—
—
12,576
Advances from affiliates —
—
3,408,659
—
(3,408,659 ) —
Other liabilities 40,840
—
188,181
197,658
(167,481 ) 259,198
Total liabilities 3,512,645
—
3,875,668
225,008
(3,576,250 ) 4,037,071
Mezzanine Capital:
Class A Convertible Preferred Units 761,466
—
—
—
—
761,466
Partners’ capital, common units 1,690,799
—
2,639,204
70,002
(2,709,206 ) 1,690,799
Accumulated other comprehensive loss⁽¹⁾
—
—
939
—
—
939
Noncontrolling interests —
—
—
(11,204 ) —
(11,204 )
Total liabilities, mezzanine capital and partners’ capital $ 5,964,910
$ —
$ 6,515,811
$ 283,806
$ (6,285,456 ) $ 6,479,071

⁽¹⁾~~The entire balance and activity within Accumulated Other Comprehensive Loss is related to our pension plan held within our Guarantor Subsidiaries.~~

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~Unaudited Condensed Consolidating Statement of Operations~~

~~Three Months Ended March 31, 2019~~

Genesis
Energy, L.P.
(Parent and
Co-Issuer)

Genesis
Energy Finance
Corporation
(Co-Issuer)

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries
Eliminations
Genesis
Energy, L.P.
Consolidated
REVENUES:
Offshore pipeline transportation services $ —
$ —
$ 78,317
$ —
$ —
$ 78,317
Sodium minerals and sulfur services —
—
275,177
2,109
(1,800 ) 275,486
Marine transportation —
—
56,650
—
—
56,650
Onshore facilities and transportation —
—
204,806
4,750
—
209,556
Total revenues —
—
614,950
6,859
(1,800 ) 620,009
COSTS AND EXPENSES:
Onshore facilities and transportation costs —
—
187,397
360
—
187,757
Marine transportation costs —
—
43,733
—
—
43,733
Sodium minerals and sulfur services
operating costs
—
—
218,218
2,290
(1,800 ) 218,708
Offshore pipeline transportation operating costs —
—
18,421
37
—
18,458
General and administrative —
—
11,686
—
—
11,686
Depreciation, depletion and amortization —
—
77,013
625
—
77,638
Total costs and expenses —
—
556,468
3,312
(1,800 ) 557,980
OPERATING INCOME —
—
58,482
3,547
—
62,029
Equity in earnings of subsidiaries 75,287
—
417
—
(75,704 ) —
Equity in earnings of equity investees —
—
12,997
—
—
12,997
Interest (expense) income, net (56,357 ) —
3,831
(3,175 ) —
(55,701 )
Other expense (2,976 ) —
—
—
—
(2,976 )
Income before income taxes 15,954
—
75,727
372
(75,704 ) 16,349
Income tax expense —
—
(402 ) —
—
(402 )
NET INCOME 15,954
—
75,325
372
(75,704 ) 15,947
Net loss attributable to noncontrolling interest —
—
—
7
—
7
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 15,954
$ —
$ 75,325
$ 379
$ (75,704 ) $ 15,954
Less: Accumulated distributions attributable to Class A Convertible Preferred Units (18,415 ) —
—
—
—
$ (18,415 )
NET LOSS AVAILABLE TO COMMON UNIT HOLDERS $ (2,461 ) $ —
$ 75,325
$ 379
$ (75,704 ) $ (2,461 )

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~Unaudited Condensed Consolidating Statement of Operations~~

~~Three Months Ended March 31, 2018~~

Genesis
Energy, L.P.
(Parent and
Co-Issuer)

Genesis
Energy Finance
Corporation
(Co-Issuer)

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries
Eliminations
Genesis
Energy, L.P.
Consolidated
REVENUES:
Offshore pipeline transportation services $ —
$ —
$ 73,260

$ —
$ 73,260
Sodium minerals and sulfur services —
—
285,097
3,066
(2,253 ) 285,910
Marine transportation —
—
48,929
—
—
48,929
Onshore facilities and transportation —
—
312,874
4,835
—
317,709
Total revenues —
—
720,160
7,901
(2,253 ) 725,808
COSTS AND EXPENSES:
Onshore facilities and transportation costs —
—
299,841
272
—
300,113
Marine transportation costs —
—
37,847
—
—
37,847
Sodium minerals and sulfur services operating costs —
—
223,247
2,504
(2,253 ) 223,498
Offshore pipeline transportation operating costs —
—
17,662
678
—
18,340
General and administrative —
—
11,674
—
—
11,674
Depreciation, depletion and amortization —
—
74,630
625
—
75,255
Total costs and expenses —
—
664,901
4,079
(2,253 ) 666,727
OPERATING INCOME —
—
55,259
3,822
—
59,081
Equity in earnings of subsidiaries 69,592
—
632
—
(70,224 ) —
Equity in earnings of equity investees —
—
10,572
—
—
10,572
Interest (expense) income, net (56,314 ) —
3,544
(3,366 ) —
(56,136 )
Other expense (5,244 ) —
—
—
—
(5,244 )
Income before income taxes 8,034
—
70,007
456
(70,224 ) 8,273
Income tax expense —
—
(377 ) 2
—
(375 )
NET INCOME 8,034
—
69,630
458
(70,224 ) 7,898
Net loss attributable to noncontrolling interest —
—
—
136
—
136
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ 8,034
$ —
$ 69,630
$ 594
$ (70,224 ) $ 8,034
Less: Accumulated distributions attributable to Class A Convertible Preferred Units (16,888 ) —
—
—
—
(16,888 )
NET INCOME (LOSS) AVAILABLE TO COMMON UNIT HOLDERS $ (8,854 ) $ —
$ 69,630
$ 594
$ (70,224 ) $ (8,854 )

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~Unaudited Condensed Consolidating Statement of Cash Flows~~

~~Three Months Ended March 31, 2019~~

Genesis
Energy, L.P.
(Parent and
Co-Issuer)

Genesis
Energy Finance
Corporation
(Co-Issuer)

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries
Eliminations
Genesis
Energy, L.P.
Consolidated
Net cash provided by operating activities $ 28,043
$ —
$ 149,165
$ (918 ) $ (62,269 ) $ 114,021
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets —
—
(29,612 ) —
—
(29,612 )
Cash distributions received from equity investees - return of investment —
—
5,425
—
—
5,425
Intercompany transfers 67,476
—
—
—
(67,476 ) —
Repayments on loan to non-guarantor subsidiary —
—
1,992
—
(1,992 ) —
Proceeds from asset sales —
—
358
—
—
358
Net cash used in investing activities 67,476
—
(21,837 ) —
(69,468 ) (23,829 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility 187,500
—
—
—
—
187,500
Repayments on senior secured credit facility (215,600 ) —
—
—
—
(215,600 )
Intercompany transfers —
—
(65,741 ) (1,735 ) 67,476
—
Distributions to common unitholders (67,419 ) —
(67,419 ) —
67,419
(67,419 )
Contributions from noncontrolling interest —
—
—
610
—
610
Other, net —
—
5,621
3,158
(3,158 ) 5,621
Net cash used in financing activities (95,519 ) —
(127,539 ) 2,033
131,737
(89,288 )
Net increase (decrease) in cash and cash equivalents —
—
(211 ) 1,115
—
904
Cash and cash equivalents at beginning of period 6
—
8,968
1,326
—
10,300
Cash and cash equivalents at end of period $ 6
$ —
$ 8,757
$ 2,441
$ —
$ 11,204

~~Table of Contents~~

~~GENESIS ENERGY, L.P.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~Unaudited Condensed Consolidating Statement of Cash Flows~~

~~Three Months Ended March 31, 2018~~

Genesis
Energy, L.P.
(Parent and
Co-Issuer)

Genesis
Energy Finance
Corporation
(Co-Issuer)

Guarantor
Subsidiaries

Non-Guarantor
Subsidiaries
Eliminations
Genesis
Energy, L.P.
Consolidated
Net cash provided by operating activities $ 18,637
$ —
$ 124,180
$ 874
$ (57,363 ) $ 86,328
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to acquire fixed and intangible assets —
—
(66,051 ) —
—
(66,051 )
Cash distributions received from equity investees - return of investment —
—
9,277
—
—
9,277
Intercompany transfers 9,407
—
—
—
(9,407 ) —
Repayments on loan to non-guarantor subsidiary —
—
1,801
—
(1,801 ) —
Proceeds from asset sales —
—
6
—
—
6
Net cash used in investing activities 9,407
—
(54,967 ) —
(11,208 ) (56,768 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior secured credit facility 333,800
—
—
—
—
333,800
Repayments on senior secured credit facility (154,000 ) —
—
—
—
(154,000 )
Repayment of senior unsecured notes (145,170 ) —
—
—
—
(145,170 )
Debt issuance costs (159 ) —
—
—
—
(159 )
Intercompany transfers —
—
(5,496 ) (3,911 ) 9,407
—
Distributions to common unitholders (62,515 ) —
(62,515 ) —
62,515
(62,515 )
Contributions from noncontrolling interest —
—
—
400
—
400
Other, net —
—
5,135
3,351
(3,351 ) 5,135
Net cash provided by financing activities (28,044 ) —
(62,876 ) (160 ) 68,571
(22,509 )
Net increase in cash and cash equivalents —
—
6,337
714
—
7,051
Cash and cash equivalents at beginning of period 6
—
8,340
695
—
9,041
Cash and cash equivalents at end of period $ 6
$ —
$ 14,677
$ 1,409
$ —
$ 16,092

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and accompanying notes included in this Quarterly Report on Form 10-Q. The following information and such Unaudited Condensed Consolidated Financial Statements should also be read in conjunction with the audited financial statements and related notes, together with our discussion and analysis of financial position and results of operations, included in our Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019.

Included in Management’s Discussion and Analysis of Financial Condition and Results of Operations are the following sections:

Overview

Results of Operations

Liquidity and Capital Resources

Guarantor Summarized Financial Information

Non-GAAP Financial Measures

Commitments and Off-Balance Sheet Arrangements

Forward Looking Statements

Overview

We reported Net Income Attributable to Genesis Energy, L.P. of $24.9 million during the three months ended March 31, 2020 (“2020 Quarter”) compared to Net Income Attributable to Genesis Energy, L.P. of $16.0 million during the three months ended March 31, 2019 (“2019 ~~Quarter”) compared to Net Income Attributable to Genesis Energy, L.P. of $8.0 million during the three months ended March 31, 2018 (“2018~~ Quarter”). Net Income Attributable to Genesis Energy, L.P. in the ~~2019~~2020 Quarter benefited from:

(i) an unrealized gain from the valuation of the embedded derivative associated with our Class A Convertible Preferred Units of $32.5 million compared to an ~~increase~~unrealized loss of $3.0 million during the 2019 quarter recorded in ~~segment margin~~other income (expense); (ii) lower general and administrative expenses of ~~$3.3~~$2.3 million primarily due to the assumptions used to value our long term incentive compensation plans during the 2020 Quarter; and ~~an increase in equity in earnings of equity investees of $2.4 million, which was offset by higher~~(iii) lower depreciation, depletion and amortization expense of ~~$2.4~~$3.3 million. ~~Additionally,~~These increases were offset by: (i) the ~~2018 Quarter was negatively impacted by a loss on debt extinguishment~~transaction costs and write-off of the unamortized issuance costs and discount associated with the ~~redemption~~extinguishment of our ~~2021 senior unsecured notes~~2022 Notes of ~~$3.3 million.~~$23.5 million during the 2020 Quarter included in Other income (expense); (ii) lower segment margin during the 2020 Quarter of $4.3 million; and (iii) $4.1 million of our Net Income during the 2020 Quarter being attributed to our redeemable noncontrolling interests.

Cash flow from operating activities was $89.6 million for the 2020 Quarter compared to $114.0 million for the 2019 Quarter. This decrease is primarily attributable to transaction costs incurred during the 2020 Quarter ~~compared to $86.3 million for~~associated with the ~~2018 Quarter.~~tender and redemption of our 2022 Notes.

Available Cash before Reserves (as defined below in "Non-GAAP Financial Measures") to our common unitholders was ~~$95.9~~$81.8 million for the 2020 Quarter, a decrease of $14.1 million, or 14.7%, from the 2019 Quarter. Available Cash before Reserves for the 2020 Quarter is inclusive of the $18.7 million declared cash distribution to our Class A Convertible Preferred Unitholders that is attributable to the 2020 Quarter and will be paid on May 15, 2020. Available Cash before Reserves for the 2019 Quarter ~~a decrease~~is inclusive of ~~$5.7~~the $6.1 million ~~or 5.6%, from~~cash distribution attributable to the ~~2018 Quarter.~~period that was paid on May 15, 2019. See “Non-GAAP Financial Measures” below for additional information on Available Cash before Reserves and Segment Margin.

Segment Margin (as defined below in "Non-GAAP Financial Measures") was ~~$173.6~~$169.3 million for the ~~2019~~2020 Quarter, ~~an increase~~a decrease of ~~$3.3~~$4.3 million, or 2%, from the ~~2018~~2019 Quarter. A more detailed discussion of our segment results and other costs is included below in "Results of Operations".

See “Non-GAAP Financial Measures” below for additional information on Available Cash before Reserves and Segment Margin.

Distribution

In April ~~2019,~~2020, we declared our quarterly distribution to our common unitholders of ~~$0.55~~$0.15 per unit related to the ~~2019~~2020 Quarter.

With respect to our Class A Convertible Preferred Units, ~~(our "preferred units"),~~ we declared a ~~payment-in-kind or PIK of the portion of the~~ quarterly distribution attributable to the first two months of the 2019 Quarter, resulting in the issuance of 364,180 preferred units. For the portion of the quarterly distribution attributable to the final month of the 2019 Quarter, we will pay a cash ~~distribution of $0.2458 for each preferred unit. This total quarterly distribution to the preferred unitholders equates to a quarterly~~ distribution of $0.7374 per ~~preferred unit~~Class A Convertible Preferred Unit (or $2.9496 on an annualized basis). for each Class A Convertible Preferred Unit held of record. These distributions will be payable on May 15, ~~2019~~2020 to unitholders ~~holders~~ of record at the close of business on May 1, ~~2019.~~2020.

COVID-19 and Market Update

In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. Our operations, which fall within the energy, mining and

transportation sectors, are considered critical and essential by the Department of Homeland Security's CISA and we have continued to operate our assets during this pandemic.

We have designated an internal management team to provide resources, updates, and support to our entire workforce during this pandemic, while maintaining a focus to ensure the safety and well-being of our employees, the families of our employees, and the communities in which our businesses operate. We will continue to act in the best interests of our employees, stakeholders, customers, partners, and suppliers and make any necessary changes as required by federal, state, or local authorities as we actively monitor the situation.

COVID-19 has caused commodity prices to decline due to, among other things, reduced industrial activity and travel restrictions that are expected to continue in the near future. Additionally, actions taken by OPEC and other oil exporting nations beginning in early March 2020 have caused additional significant declines and volatility in the price of oil and gas. These low and volatile commodity prices are expected to continue at least for the near-term and possibly longer, reflecting fears of a global recession and potential further global economic damage from COVID-19, including factory shutdowns, travel bans, closings of schools and stores, and cancellations of conventions and similar events, resulting in, among other things, reduced fuel demand, lower manufacturing activity, and high inventories of oil, natural gas, and petroleum products, which could further negatively impact oil, natural gas, and petroleum products and industrial products.

We noted, other than the impact of general macroeconomic conditions, there were no material adverse effects from the pandemic on our results for the three months ended March 31, 2020. Although the potential future limitations and impact of COVID-19 are unknown at this time, and although we tend to experience less demand for certain of our services and products when commodity prices decrease significantly over extended periods of time (and we expect a similar impact on demand when global restrictions are in place limiting the economy and industrial product use), we believe the fundamentals of our underlying businesses continue to remain strong and, given the current industry environment and capital market behavior, we have continued our focus on de-leveraging our balance sheet, which includes the reduction of our distribution to common unitholders. Finally, given the current operating environment, we are prudently looking at several initiatives to identify and implement cost reductions across our various business segments. During April 2020, we also amended our agreements with GSO associated with the expansion of our Granger soda ash facility to, among other things, extend the construction timeline of the project by as much as one year.

Results of Operations

Revenues and Costs and Expenses

Our revenues for the ~~2019~~2020 Quarter decreased ~~$105.8~~$80.1 million, or ~~18%~~13%, from the ~~2018~~2019 Quarter. In addition, our total costs and expenses as presented on the Unaudited Condensed Consolidated Statements of Operations decreased ~~$108.7~~$77.2 million, or ~~22%~~14%, between the two periods.

A substantial portion of our revenues and costs are derived from the purchase and sale of crude oil and petroleum products in our ~~legacy~~crude oil marketing business, which is included in the onshore facilities and transportation segment, and revenues and costs associated with our Alkali Business, which is included in the sodium minerals and sulfur services segment. The decrease in our revenues and costs ~~in this segment~~ between the ~~2019~~2020 Quarter and the ~~2018~~2019 Quarter is primarily attributable toto: (i) decreases in crude oil and petroleum product prices and, to an extent, sales ~~volumes. The~~volumes; and (ii) negative impacts of contractual export pricing and soda ash volumes in our Alkali Business.

As it relates to our crude oil marketing business, the average closing prices for West Texas Intermediate crude oil on the New York Mercantile Exchange ("NYMEX") decreased ~~12.7%~~15.8% to $46.17 per barrel in the 2020 Quarter, as compared to $54.85 per barrel in the 2019 ~~Quarter, as compared~~Quarter. Additionally, impacts from COVID-19 along with actions taken by OPEC and other oil exporting nations beginning in early March 2020 have caused additional significant price declines and volatility in oil and gas prices. These low and volatile commodity prices are expected to ~~$62.86 per barrel in~~continue at least for the ~~2018 Quarter.~~near term and possibly longer. We would expect changes in crude oil prices to continue to proportionately affect our revenues and costs attributable to our purchase and sale of crude oil and petroleum products, producing minimal direct impact on Segment Margin, Net Income, and Available Cash before Reserves. We have limited our direct commodity price exposure related to crude oil and petroleum products through the broad use of fee-based service contracts, back-to-back purchase and sale arrangements, and hedges. As a result, changes in the price of crude oil would proportionately impact both our revenues and our costs, with a disproportionately smaller net impact on our Segment Margin. However, we do have some indirect exposure to certain changes in prices for oil, natural gas, and petroleum products, particularly if they are significant and extended. We tend to experience more demand for certain of our services when commodity prices increase significantly over extended periods of time, and we tend to experience less demand for certain of our services when commodity prices decrease significantly over extended periods of time. For additional information regarding certain of our indirect exposure to commodity prices, see our segment-by-segment analysis below and the section of our Annual Report entitled " Risks Related to Our Business."

As it relates to our Alkali Business, our revenues are derived from the extraction of trona, as well as the activities surrounding the processing and sale of natural soda ash and other alkali specialty products, including sodium sesquicarbonate (S-Carb) and sodium bicarbonate (Bicarb), and are a function of our selling prices and volume sold. We sell our products to an industry-diverse and worldwide customer base. Our selling prices are contracted at various times throughout the year and for different durations. Typically, our selling prices for volumes sold internationally and through ANSAC are contracted for the current year (in most cases, annually) in the prior December and January of the current year, and our volumes priced and sold domestically are contracted at various times and can be of varying durations, often multi-year terms. Our sales volumes can fluctuate from period to period and are dependent upon many factors, of which the main drivers are the global market, customer demand and economic growth. Positive or negative changes to our revenue, through fluctuations in sales volumes or selling prices, can have a direct impact to Segment Margin, Net Income and Available Cash before Reserves as these fluctuations have a lesser impact to operating costs due to the fact that a portion of our costs are fixed in nature. Our costs, of which some are variable in nature and others are fixed in nature, relate primarily to the processing and producing of soda ash (and other alkali specialty products) and marketing and selling activities. In addition, costs include activities associated with mining and extracting trona ore, including energy costs and employee compensation. In our Alkali Business, during the 2020 Quarter as noted above, we had negative effects to our revenues (with a lesser impact to costs) due to lower export pricing and lower sales volumes of soda ash during the 2020 Quarter due to lower economic and market demand. For additional information, see our segment-by-segment analysis below.

In addition to our ~~legacy~~crude oil marketing business and Alkali Business discussed above, we continue to operate in our other core businesses including: (i) our offshore Gulf of Mexico crude oil and natural gas pipeline transportation and handling operations, focusing on integrated and large independent energy companies who make intensive capital investments (often in excess of billions of dollars) to develop numerous large reservoir, long-lived crude oil and natural gas properties; (ii) our ~~sodium minerals and~~ sulfur services ~~businesses, which includes our Alkali Business,~~business, which is one of the leading producers and marketers of ~~natural soda ash worldwide,~~NaHS in North and ~~our legacy sulfur removal business;~~South America; and (iii) our onshore-based refinery-centric operations located primarily in the Gulf Coast region of the U.S., which focus on providing a suite of services primarily to refiners. Refiners are the shippers of approximately ~~80%~~98% of the volumes transported on our onshore crude pipelines, and refiners contract for ~~over~~approximately 80% of the use of our inland barges, which are used primarily to transport intermediate refined products (not crude oil) between refining complexes. The shippers on our offshore pipelines are mostly integrated and large independent energy companies whose production is ideally suited for the vast majority of refineries along the Gulf Coast, unlike the lighter crude oil and condensates produced from numerous onshore shale plays. Their large-reservoir properties and the related pipelines and other infrastructure needed to develop them are capital intensive and yet, we

believe, economically viable, in most cases, even in relatively low commodity price environments. Given these facts, we do not expect changes in commodity prices to impact our Net Income, Available Cash before Reserves or Segment Margin derived from our offshore Gulf of Mexico crude oil and natural gas pipeline transportation and handling operations in the same manner in which they impact our revenues and costs derived from the purchase and sale of crude oil and petroleum products.

Additionally, changes in certain of our operating costs between the respective quarters, such as those associated with our sodium minerals and sulfur services, offshore pipeline and marine transportation segments, are not correlated with crude oil prices. We discuss certain of those costs in further detail below in our segment-by-segment analysis.

Segment Margin

The contribution of each of our segments to total Segment Margin in the ~~2019~~2020 Quarter and the ~~2018~~2019 Quarter was as follows:


	Three Months Ended March 31,				Three Months Ended March 31,
	2019		2018		2020		2019
	(in thousands)				(in thousands)
Offshore pipeline transportation	$	76,390	$	73,173	$	85,246	$	76,390
Sodium minerals and sulfur services	58,639		64,391		36,941		58,639
Onshore facilities and transportation	25,603		21,689		28,099		25,603
Marine transportation	12,932		10,987		19,002		12,932
Total Segment Margin	$	173,564	$	170,240	$	169,288	$	173,564

We define Segment Margin as revenues less product costs, operating expenses, and segment general and administrative expenses, after eliminating gain or loss on sale of assets, plus or minus applicable Select Items. Although we do not necessarily consider all of our Select Items to be non-recurring, infrequent or unusual, we believe that an understanding of these Select Items is important to the evaluation of our core operating results. See "Non-GAAP Financial Measures" for further discussion surrounding total Segment Margin.

A reconciliation of total Segment Margin to Net Income Attributable to Genesis Energy, L.P. for the periods presented is as follows:


	Three Months Ended March 31,						Three Months Ended March 31,
	2019			2018			2020			2019
Total Segment Margin	$	173,564		$	170,240		$	169,288		$	173,564
Corporate general and administrative expenses	(11,100		)	(10,460		)	(6,492		)	(11,100		)
Depreciation, depletion, amortization and accretion	(79,937		)	(78,008		)	(75,978		)	(79,937		)
Interest expense	(55,701		)	(56,136		)	(54,965		)	(55,701		)
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income ₍₁₎	(4,828		)	(9,057		)	(6,406		)	(4,828		)
Other non-cash items(2)	(6,091		)	(6,137		)	33,261			(6,091		)
Cash payments from direct financing leases in excess of earnings	(2,028		)	(1,839		)	(2,238		)	(2,028		)
Non-cash provision for leased items no longer in use	190			(186		)	130			190
Differences in timing of cash receipts for certain contractual arrangements ₍₂₎₍₃₎	2,287			3,331			(4,490		)	2,287
Loss on debt extinguishment(4)	—			(3,339		)	(23,480		)	—
Income tax expense	(402		)	(375		)
Redeemable noncontrolling interest redemption value adjustments ⁽⁵⁾							(4,086		)	—
Income tax benefit (expense)							365			(402		)
Net Income Attributable to Genesis Energy, L.P.	$	15,954		$	8,034		$	24,909		$	15,954


(1)	Includes distributions attributable to the quarter and received during or promptly following such quarter.


(2)	The 2020 Quarter includes a $32.5 million unrealized gain from the valuation of the embedded derivative associated with our Class A Convertible Preferred units and the 2019 Quarter includes a $3.0 million unrealized loss from the valuation of the embedded derivative.


(3)	Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts.

~~(1)~~


(4)	Includes our transaction costs associated with the tender of $527.9 million and redemption of $222.1 million of our 2022 Notes in the first quarter of 2020, along with the write-off of our unamortized issuance costs and discount associated with these notes.

(5) Includes PIK distributions attributable to the ~~quarter and received during or promptly following such quarter.~~

~~(2) Includes the difference in timing of cash receipts from customers during the~~ period and accretion on the ~~revenue we recognize in accordance with GAAP on our related contracts.~~redemption feature.

Offshore Pipeline Transportation Segment

Operating results and volumetric data for our offshore pipeline transportation segment are presented below:


	Three Months Ended March 31,						Three Months Ended March 31,
	2019			2018			2020			2019
	(in thousands)						(in thousands)
Offshore crude oil pipeline revenue, excluding non-cash revenues	$	64,194		$	57,133		$	69,581		$	64,194
Offshore natural gas pipeline revenue, excluding non-cash revenues	10,933			12,660			13,337			10,933
Offshore pipeline operating costs, excluding non-cash expenses	(16,079		)	(15,623		)	(17,732		)	(16,079		)
Distributions from equity investments ⁽¹⁾	17,342			19,003			20,060			17,342
Offshore pipeline transportation Segment Margin	$	76,390		$	73,173		$	85,246		$	76,390

Volumetric Data 100% basis:
Crude oil pipelines (average barrels/day unless otherwise noted):
CHOPS	241,754			199,721			242,182			241,754
Poseidon	253,469			238,693			279,181			253,469
Odyssey	151,877			109,365			149,440			151,877
GOPL ⁽²⁾	8,337			9,756
GOPL ⁽³⁾							7,249			8,337
Total crude oil offshore pipelines	655,437			557,535			678,052			655,437

Natural gas transportation volumes (MMBtus/d)	419,999			464,757			416,564			419,999

Volumetric Data net to our ownership interest ⁽²⁾:
Crude oil pipelines (average barrels/day unless otherwise noted):
CHOPS	241,754			199,721			242,182			241,754
Poseidon	162,220			152,764			178,676			162,220
Odyssey	44,044			31,716			43,338			44,044
GOPL ⁽³⁾	8,337			9,756			7,249			8,337
Total crude oil offshore pipelines	456,355			393,957			471,445			456,355

Natural gas transportation volumes (MMBtus/d)	160,957			180,568			147,067			160,957


(1)	Offshore pipeline transportation Segment Margin includes distributions received from our offshore pipeline joint ventures accounted for under the equity method of accounting in ~~2019~~2020 and ~~2018,~~2019, respectively.


(2)	Volumes are the product of our effective ownership interest through the year, including changes in ownership interest, multiplied by the relevant throughput over the given year.


(3)	One of our wholly-owned subsidiaries (GEL Offshore Pipeline, LLC, or "GOPL") owns our undivided interest in the Eugene Island pipeline system.

Three Months Ended March 31, ~~2019~~2020 Compared with Three Months Ended March 31, ~~2018~~2019

Offshore pipeline transportation Segment Margin for the ~~2019 Quarter~~first three months of 2020 increased ~~$3.2~~$8.9 million, or 4%12%, from the ~~2018 Quarter,~~first three months of 2019, primarily due to higher volumes on our crude oil pipeline systems. These increased volumes ~~more than offset~~are primarily the ~~approximately $3.9 million in pipeline capacity reservation fees, related~~result of first oil flow from the Buckskin and Hadrian North production fields during the second quarter of 2019, both of which are fully dedicated to our ~~interest in~~SEKCO pipeline, and further downstream, our Poseidon ~~Oil Pipeline, LLC ("Poseidon"), that we received~~oil pipeline system. Additionally, during the ~~2018 Quarter. These minimum bill payments ended during June 2018. During the~~second half of 2019, ~~Quarter,~~ we ~~began receiving volumes~~entered into agreements to move sixty thousand barrels per day on ~~our~~either CHOPS ~~and~~or Poseidon ~~pipeline systems, due~~that are delivered to ~~deliveries from~~us by a ~~third party~~third-party pipeline that has insufficient ~~capacity~~capacity. These agreements contain ship-or-pay provisions, have terms as long as five years and required no additional capital on our part.

We expect to ~~directly deliver all~~see these increased volumes, outside of ~~its committed volume~~any unplanned downtime or our normal planned maintenance activities during the year, throughout 2020 as our newer projects continue to ~~shore.~~ramp. Additionally, we expect additional volumes throughout 2020 from the recently announced production dedication from Katmai and our previously contracted Atlantis Phase III development, which are ~~still anticipating several new dedicated tie-backs~~both scheduled to come on-line ~~in the second half of the year representing up to an additional 40-50 thousand barrels per day, or kbd, of throughput exiting 2019.~~during 2020.

Sodium Minerals and Sulfur Services Segment

Operating results for our sodium minerals and sulfur services segment were as follows:

Three Months Ended
March 31,
2019 2018
Volumes sold:
NaHS volumes (Dry short tons "DST") 35,743
37,214
Soda Ash volumes (short tons sold) 870,529
917,000
NaOH (caustic soda) volumes (dry short tons sold) 20,802
30,260
Total 927,074
984,474

Revenues (in thousands):
NaHS revenues, excluding non-cash revenues $ 42,948
$ 43,356
NaOH (caustic soda) revenues 11,813
15,867
Revenues associated with Alkali Business 203,330
204,883
Other revenues 1,616
1,352
Total external segment revenues, excluding non-cash revenues $ 259,707
$ 265,458

Segment Margin (in thousands) $ 58,639
$ 64,391

Average index price for NaOH per DST⁽¹⁾
$ 717
$ 748



	Three Months Ended March 31,
	2020		2019
Volumes sold:
NaHS volumes (Dry short tons "DST")	30,082		35,743
Soda Ash volumes (short tons sold)	822,247		870,529
NaOH (caustic soda) volumes (dry short tons sold)	16,303		20,802

Revenues (in thousands):
NaHS revenues, excluding non-cash revenues	$	33,191	$	42,948
NaOH (caustic soda) revenues	7,441		11,813
Revenues associated with Alkali Business	176,236		203,330
Other revenues	643		1,616
Total external segment revenues, excluding non-cash revenues⁽¹⁾	$	217,511	$	259,707

Segment Margin (in thousands)	$	36,941	$	58,639

Average index price for NaOH per DST⁽²⁾	$	648	$	717

(1) Totals are for external revenues and costs prior to intercompany elimination upon consolidation.

(2) Source: IHS Chemical.

Three Months Ended March 31, ~~2019~~2020 Compared with Three Months Ended March 31, ~~2018~~2019

Sodium minerals and sulfur services Segment Margin for the ~~2019 Quarter~~first three months of 2020 decreased ~~$5.8~~$21.7 million, or ~~9%.~~37% from the first three months of 2019. This decrease is primarily due to lower volumes and pricing in our Alkali Business and lower NaHS volumes in our refinery services business. During the 2020 Quarter, we experienced lower export pricing due to supply and demand imbalances that existed at the time of our re-contracting phase in December 2019 and January 2020, which is expected to continue, to some extent, for the rest of 2020 and until we re-contract such pricing at the end of the year for 2021 volumes. This was coupled with lower domestic sales of soda ash during the 2020 Quarter. We expect to see lower soda ash sales volumes in the next few quarters as a result of COVID-19 and until restrictions are lifted globally. In our refinery services business, we experienced a decline in NaHS volumes during the ~~2019~~2020 Quarter ~~which was~~ due to ~~the timing~~lower demand from certain of ~~certain maintenance activities~~our domestic mining and ~~temporary electrical equipment failures at our plant sites that drove lower production volumes. Overall, the contributions from our Alkali Business have continued to exceed our expectations~~pulp and ~~we expect continued strong performance throughout the remainder of 2019.~~paper customers. Costs impacting the results of our ~~Alkali Business, many of which are similar in nature to costs related to our~~sodium minerals and sulfur ~~removal business,~~services segment include costs associated with processing and producing soda ash (and other alkali specialty products), NaHS and marketing and selling activities. In addition, costs include activities associated with mining and extracting trona ore (including energy costs and employee compensation). Additionally, our refinery services business continues to perform as expected. NaHS volumes slightly decreased during the 2019 Quarter due to lower demand from certain of our international mining customers, primarily located in South America, and our domestic pulp and paper customers.

Onshore Facilities and Transportation Segment

Our onshore facilities and transportation segment utilizes an integrated set of pipelines and terminals, as well as trucks, railcars, and barges to facilitate the movement of crude oil and refined products on behalf of producers, refiners and other customers. This segment includes crude oil and refined products pipelines, terminals, rail facilities and ~~CO2~~CO₂ pipelines operating primarily within the United States Gulf Coast crude oil market. In addition, we utilize our railcar and trucking fleets that support the purchase and sale of gathered and bulk purchased crude oil, as well as purchased and sold refined products. Through these assets we offer our customers a full suite of services, including the following:

facilitating the transportation of crude oil from producers to refineries and from owned and third party terminals to refiners via pipelines;

~~transporting CO2~~


•	transporting CO₂ from natural and anthropogenic sources to crude oil fields owned by our customers;

shipping crude oil and refined products to and from producers and refiners via trucks, pipelines, and railcars;

Unloading railcars at our crude-by-rail terminals;

storing and blending of crude oil and intermediate and finished refined products;

purchasing/selling and/or transporting crude oil from the wellhead to markets for ultimate use in refining; and

purchasing products from refiners, transporting those products to one of our terminals and blending those products to a quality that meets the requirements of our customers and selling those products (primarily fuel oil, asphalt and other heavy refined products) to wholesale markets.

We also use our terminal facilities to take advantage of contango market conditions, to gather and market crude oil, and to capitalize on regional opportunities which arise from time to time for both crude oil and petroleum products. When we purchase and store crude oil during periods of contango, we attempt to limit direct commodity price risk by simultaneously entering into a contract to sell the inventory in a future period, either with a counterparty or in the crude oil futures market. In April 2020, crude oil price markets were in contango, so we anticipate that opportunities will exist to profit from this strategy for at least the next quarter.

Despite crude oil being considered a somewhat homogeneous commodity, many refiners are very particular about the quality of crude oil feedstock they process. Many U.S. refineries have distinct configurations and product slates that require crude oil with specific characteristics, such as gravity, sulfur content and metals content. The refineries evaluate the costs to obtain, transport and process their preferred feedstocks. That particularity provides us with opportunities to help the refineries in our areas of operation identify crude oil sources and transport crude oil meeting their requirements. The imbalances and inefficiencies relative to meeting the refiners’ requirements may also provide opportunities for us to utilize our purchasing and logistical skills and assets to meet their demands. The pricing in the majority of our crude oil purchase contracts contains a market price component and a deduction to cover the cost of transportation and to provide us with a margin. Contracts sometimes contain a grade differential which considers the chemical composition of the crude oil and its appeal to different customers. Typically, the pricing in a contract to sell crude oil will consist of the market price components and the grade differentials. The margin on individual transactions is then dependent on our ability to manage our transportation costs and to capitalize on grade differentials.

In our refined products marketing operations, we supply primarily fuel oil, asphalt and other heavy refined products to wholesale markets and some end-users such as paper mills and utilities. We also provide a service to refineries by purchasing “heavier” petroleum products that are the residual fuels from gasoline production, transporting them to one of our terminals and blending them to a quality that meets the requirements of our customers.

Operating results from our onshore facilities and transportation segment were as follows:


	Three Months Ended March 31,						Three Months Ended March 31,
	2019			2018			2020			2019
	(in thousands)						(in thousands)
Gathering, marketing, and logistics revenue	$	191,531		$	299,461		$	135,307		$	191,531
Crude oil and CO2 pipeline tariffs and revenues from direct financing leases of CO2 pipelines	17,095			18,448
Crude oil and CO₂ pipeline tariffs and revenues from direct financing leases of CO₂ pipelines							19,861			17,095
Payments received under direct financing leases not included in income	2,028			1,839			2,238			2,028
Crude oil and petroleum products costs, excluding unrealized gains and losses from derivative transactions	(167,378		)	(277,892		)	(111,494		)	(167,378		)
Operating costs, excluding non-cash charges for long-term incentive compensation and other non-cash expenses	(18,718		)	(21,583		)	(18,493		)	(18,718		)
Other	1,045			1,416			680			1,045
Segment Margin	$	25,603		$	21,689		$	28,099		$	25,603

Volumetric Data (average barrels per day unless otherwise noted):
Onshore crude oil pipelines:
Texas	42,981			29,526			84,499			42,981
Jay	11,483			16,911			10,013			11,483
Mississippi	5,916			7,613			6,409			5,916
Louisiana ⁽¹⁾	95,824			115,188			162,736			95,824
Wyoming ⁽²⁾	—			31,189
Onshore crude oil pipelines total	156,204			200,427			263,657			156,204

CO₂ pipeline (average Mcf/day):
Free State	105,991			96,709			134,834			105,991

Crude oil and petroleum products sales:
Total crude oil and petroleum products sales	33,752			52,376			26,118			33,752
Rail unload volumes	85,090			52,681			94,040			85,090

(1) Total daily volume for the three months ended March 31, ~~2019~~2020 include ~~52,302~~44,322 barrels per day of intermediate refined products associated with our Port of Baton Rouge Terminal pipelines. Total daily volume for the three months ended March 31, ~~2018~~2019 includes ~~40,330~~52,302 barrels per day of intermediate refined products associated with our Port of Baton Rouge Terminal pipelines.

~~(2)~~ ~~Our Powder River Basin midstream assets were divested during the fourth quarter of 2018.~~

Three Months Ended March 31, ~~2019~~2020 Compared with Three Months Ended March 31, ~~2018~~2019

Onshore facilities and transportation Segment Margin for ~~our onshore facilities and transportation segment~~the first three months of 2020 increased by ~~$3.9~~$2.5 million, or ~~18%~~10%, ~~between~~from the first three months of 2019. This increase is primarily due to increased volumes on our Texas and Louisiana crude oil pipeline systems, and slightly increased overall volumes at our rail unload facilities. During the 2020 Quarter, we were able to recognize incremental margin on the increased volumes on our Texas system as our main customer utilized all of its prepaid transportation credits during 2019. Additionally, our pipeline, rail and terminal assets in the Baton Rouge corridor had significantly higher volumes during the 2020 Quarter as the 2019 Quarter ~~and the 2018 Quarter. The 2019 Quarter~~ was ~~positively~~negatively impacted by ~~overall increased rail unload~~production curtailments imposed by the government of Alberta. These increases were partially offset by lower volumes at our Raceland rail facility ~~relative~~during the 2020 Quarter. Due to the ~~2018 Quarter. The total volumes~~significant decline in crude oil prices and the collapse in the differential of Western Canadian Select (WCS) to the Gulf Coast, which has made crude-by-rail to the Gulf Coast uneconomic, we are currently anticipating volume throughput at our Baton Rouge facilities ~~including rail, terminal~~will be below our minimum take-or-pay levels throughout the rest of 2020 and ~~pipeline volumes, slightly declined overall due to the previously mentioned production curtailments in Alberta. However,~~ we ~~were able~~would expect to recognize our minimum ~~take or pay obligation~~volume commitment in segment margin during the 2019 Quarter. We expect that our main customer will utilize pre-paid transportation credits from the 2019 Quarter for any over performance in the second quarter with any continued over performance not being reflected in our results until the second half of 2019. This was offset partially by the margin recognized during the 2018 Quarter associated with our previously owned Powder River midstream assets that were divested in the fourth quarter of 2018.related periods.

Marine Transportation Segment

Within our marine transportation segment, we own a fleet of 91 barges (82 inland and 9 offshore) with a combined transportation capacity of 3.2 million barrels, 42 push/tow boats (33 inland and 9 offshore), and a 330,000 barrel ocean going tanker, the M/T American Phoenix. Operating results for our marine transportation segment were as follows:


	Three Months Ended March 31,						Three Months Ended March 31,
	2019			2018			2020			2019
Revenues (in thousands):
Inland freight revenues	$	25,126		$	21,557		$	27,572		$	25,126
Offshore freight revenues	18,300			16,503			21,091			18,300
Other rebill revenues ⁽¹⁾	13,224			10,869			13,683			13,224
Total segment revenues	$	56,650		$	48,929		$	62,346		$	56,650

Operating costs, excluding non-cash charges for long-term incentive compensation and other non-cash expenses	$	43,718		$	37,942		$	43,344		$	43,718

Segment Margin (in thousands)	$	12,932		$	10,987		$	19,002		$	12,932

Fleet Utilization: ⁽²⁾
Inland Barge Utilization	96.6		%	92.2		%	93.4		%	96.6		%
Offshore Barge Utilization	96.3		%	94.7		%	99.4		%	96.3		%

(1)Under certain of our marine contracts, we "rebill" our customers for a portion of our operating costs.

(2) Utilization rates are based on a 365 day year, as adjusted for planned downtime and dry-docking.

Three Months Ended March 31, ~~2019~~2020 Compared with Three Months Ended March 31, ~~2018~~2019

Marine transportation Segment Margin for the ~~2019 Quarter~~first three months of 2020 increased ~~$1.9~~$6.1 million, or ~~18%~~47%, from the ~~2018 Quarter. The increase~~first three months of 2019. During the 2020 Quarter, in ~~Segment Margin is primarily attributable~~our offshore barge operation, we benefited from the continual improving rates in the spot and short term markets along with reported utilization level of 99.4%. In our inland business, we continued to ~~higher overall utilization and improved~~see increased day rates ~~in both our spot and shorter term contracts. While we have seen a slight uptick in day rates, we~~throughout the period which more than offset the slightly lower utilization reported. We have continued to enter into short term contracts (less than a year) in both the inland and offshore markets because we believe the day rates currently being offered by the market ~~are still near~~have yet to fully recover from their cyclical lows. ~~These increases were partially offset by an increase in operating costs during the 2019 Quarter due to an increase in our dry-docking costs.~~

Other Costs, Interest, and Income Taxes

General and administrative expenses


	Three Months Ended March 31,				Three Months Ended March 31,
	2019		2018		2020			2019
	(in thousands)				(in thousands)
General and administrative expenses not separately identified below:
Corporate	$	9,480	$	8,674	$	10,793		$	9,480
Segment	1,159		1,137		1,065			1,159
Long-term incentive compensation expense	930		176		(2,485		)	930
Third party costs related to business development activities and growth projects	117		1,687		—			117
Total general and administrative expenses	$	11,686	$	11,674	$	9,373		$	11,686

Total general and administrative expenses ~~increased slightly between~~decreased by $2.3 million during the ~~three month periods. This increase is~~2020 period primarily ~~attributable~~due to the effects of changes in assumptions used to value our ~~long term~~long-term incentive compensation ~~awards during 2019 and higher~~awards. This was partially offset by overall increases in corporate general and administrative ~~costs. These increases were offset by lower third party transaction costs during the 2019 Quarter, as the 2018 Quarter included the effects of the acquisition and integration of our Alkali Business.~~expenses.

Depreciation, depletion, and amortization expense


	Three Months Ended March 31,				Three Months Ended March 31,
	2019		2018		2020		2019
	(in thousands)				(in thousands)
Depreciation and depletion expense	$	72,991	$	69,565	$	70,205	$	72,991
Amortization of intangible assets	4,289		5,433
Amortization expense					4,152		4,289
Amortization of CO2 volumetric production payments	358		257		—		358
Total depreciation, depletion and amortization expense	$	77,638	$	75,255	$	74,357	$	77,638

Three Months Ended March 31, 2020 Compared with Three Months Ended March 31, 2019

Total depreciation, depletion, and amortization expense ~~increased $2.4~~decreased $3.3 million ~~between~~during the ~~three month periods~~2020 Quarter. This decrease is primarily asdue to the 2019 Quarter including an increase in depreciation charges associated with one of our non-core gas offshore assets in which the abandonment timing was accelerated, and a ~~result of~~slight decrease in amortization expense. This was partially offset by an overall increase in our depreciable asset base due to our continued growth and maintenance capital expenditures and placing ~~additional~~new assets into service ~~that were completed~~ during ~~the~~ 2019 ~~Quarter.~~and 2020.

Interest expense, net


	Three Months Ended March 31,						Three Months Ended March 31,
	2019			2018			2020			2019
	(in thousands)						(in thousands)
Interest expense, senior secured credit facility (including commitment fees)	$	14,158		$	14,094		$	10,745		$	14,158
Interest expense, senior unsecured notes	39,547			40,534			42,358			39,547
Amortization of debt issuance costs and discount	2,682			2,910			2,391			2,682
Capitalized interest	(686		)	(1,402		)	(529		)	(686		)
Net interest expense	$	55,701		$	56,136		$	54,965		$	55,701

Three Months Ended March 31, 2020 Compared with Three Months Ended March 31, 2019

Net interest expense decreased ~~$0.4~~$0.7 million ~~between~~during the ~~three month periods~~2020 Quarter primarily due to ~~the lack of interest expense during the 2019 Quarter related to our previously held 2021 notes, which we redeemed during the first quarter of 2018. Additionally, we had~~ a lower average outstanding balance and interest rate on our revolving credit facility during the ~~2019~~period. The decline in our interest rate during the 2020 Quarter is due to the decrease in LIBOR rates during the period, which ~~was~~is one of the main drivers of interest expense on our credit facility. These decreases were partially offset by ~~an increase in LIBOR rates relative to~~higher interest expense during the ~~2018 Quarter. In addition, capitalized~~period on our senior unsecured notes. On January 16, 2020, we issued our $750 million 2028 Notes that accrue interest ~~decreased as a result of certain~~at 7.75% and we purchased and extinguished $527.9 million of our ~~large organic growth projects being completed~~$750 million 2022 Notes that accrued interest at 6.75% on January 15, 2020 through our tender offer and ~~placed into service during 2018.~~we redeemed the remaining $222.1 million of our 2022 Notes on February 16, 2020.

Income tax expense

A portion of our operations are owned by wholly-owned corporate subsidiaries that are taxable as corporations. As a result, a substantial portion of the income tax expense we record relates to the operations of those corporations, and will vary from period to period as a percentage of our income before taxes based on the percentage of our income or loss that is derived from those corporations. The balance of the income tax expense we record relates to state taxes imposed on our operations that are treated as income taxes under generally accepted accounting principles and foreign income taxes.

Liquidity and Capital Resources

General

As of March 31, ~~2019~~2020, our balance sheet and liquidity position remained strong, including ~~$756.9~~$721.5 million of remaining borrowing capacity under our ~~$1.7~~$1.7 billion senior secured revolving credit facility. We anticipate that our future internally-generated funds and the funds available under our credit facility will allow us to meet our ordinary course capital needs. Our primary sources of liquidity have been cash flows from operations, borrowing availability under our credit facility and the proceeds from issuances of equity and senior unsecured notes.

Our primary cash requirements consist of:

working capital, primarily inventories and trade receivables and payables;

routine operating expenses;

capital growth and maintenance projects;

acquisitions of assets or businesses;

payments related to servicing and reducing outstanding debt; and

quarterly cash distributions to our preferred and common unitholders.

Capital Resources

Our ability to satisfy future capital needs will depend on our ability to raise substantial amounts of additional capital from time to time — including through equity and debt offerings (public and private), borrowings under our credit facility and other financing transactions—and to implement our growth strategy successfully. No assurance can be made that we will be able to raise necessary funds on satisfactory terms or implement our growth strategy successfully.

At March 31, ~~2019,~~2020, our long-term debt totaled approximately ~~3.4~~$3.4 billion, consisting of ~~$0.9 billion~~$977.4 million outstanding under our credit facility (including ~~$23.6~~$7.7 million borrowed under the inventory sublimit tranche) and $2.5 billion of senior unsecured notes, comprising ~~$750 million carrying amount due August 1, 2022,~~ $400 million carrying amount due on May 15, 2023, ~~$350~~$349 million carrying amount due on June 15, 2024, $550 million carrying amount due October 2025, ~~and $450~~$447 million carrying amount due May ~~2026.~~2026, and $750 million carrying amount due February 15, 2028.

On September 23, 2019, we announced the expansion of our existing Granger facility (the "Granger Optimization Project" or "GOP"). We entered into agreements with GSO for the purchase of up to approximately $350 million of preferred units of Alkali Holdings. The proceeds received from GSO will fund up to 100% of the anticipated cost of the GOP. On April 14, 2020, we entered into an amendment to our agreements with GSO to, among other things, extend the construction timeline of the Granger expansion project by one year. The extended completion date of the project is mid to late 2023. The Alkali Holdings preferred unitholders will receive PIK distributions in lieu of cash distributions during the new anticipated construction period. As of March 31, 2020 we had issued $130 million of Alkali Holdings preferred units to be used to fund the construction. The expansion is expected to increase our production at the Granger facilities by approximately 750,000 tons per year.

Equity Distribution Program and Shelf Registration Statements

We expect to issue additional equity and debt securities in the future to assist us in meeting our future liquidity requirements, particularly those related to opportunistically acquiring assets and businesses and constructing new facilities and refinancing outstanding debt.

In 2016, we implemented an equity distribution program that will allow us to consummate “at the market” offerings of common units from time to time through brokered transactions, which should help mitigate certain adverse consequences of underwritten offerings, including the downward pressure on the market price of our common units and the expensive fees and other costs associated with such public offerings. We entered into an equity distribution agreement with a group of banks who will act as sales agents or principals for up to $400.0 million of our common units, if and when we should elect to issue additional common units from time to time, although there are limits to the amount of our “at the market” offerings the market can absorb from time to time.transactions. In connection with implementing our equity distribution program, we filed a universal shelf registration statement (our "EDP Shelf") with the SEC. Our EDP Shelf allows us to issue up to $1.0 billion of equity and debt securities, whether pursuant to our equity distribution program or otherwise. Our EDP Shelf will expire in October 2020. As of March 31, ~~2019,~~2020, we had issued no units under this program.

We have another universal shelf registration statement (our "2018 Shelf") on file with the SEC. Our 2018 Shelf allows us to issue an unlimited amount of equity and debt securities in connection with certain types of public offerings. However, the receptiveness of the capital markets to an offering of equity and/or debt securities cannot be assured and may be negatively impacted by, among other things, our long-term business prospects and other factors beyond our control, including market conditions. Our 2018 Shelf will expire in April 2021. We expect to file a replacement universal shelf registration statement before our 2018 Shelf expires.

Cash Flows from Operations

We generally utilize the cash flows we generate from our operations to fund our distributions and working capital needs. Excess funds that are generated are used to repay borrowings under our credit facility and/or to fund a portion of our capital ~~expenditures.~~expenditures and asset retirement obligations (if any). Our operating cash flows can be impacted by changes in items of working capital, primarily variances in the carrying amount of inventory and the timing of payment of accounts payable and accrued liabilities related to capital expenditures.

We typically sell our purchased crude oil in the same month in which we acquire it, so we do not need to rely on borrowings under our credit facility to pay for such crude oil purchases, other than inventory. During such periods, our accounts receivable and accounts payable generally move in tandem, as we make payments and receive payments for the purchase and sale of crude oil.

In our petroleum products onshore facilities and transportation activities, we purchase products and typically either move those products to one of our storage facilities for further blending or sell those products within days of our purchase. The

cash requirements for these activities can result in short term increases and decreases in our borrowings under our credit facility.

In our Alkali Business, we typically extract trona from our mining facilities, process it into soda ash and other alkali products, and deliver and sell the alkali products to our customers all within a relatively short time frame. If we do experience any differences in timing of extraction, processing and sales of our trona or alkali products, it could impact the cash requirements for these activities in the short term.

The storage of our inventory of crude oil and petroleum products can have a material impact on our cash flows from operating activities. In the month we pay for the stored crude oil or petroleum products, we borrow under our credit facility (or use cash on hand) to pay for the crude oil or petroleum products, utilizing a portion of our operating cash flows. Conversely, cash flow from operating activities increases during the period in which we collect the cash from the sale of the stored crude oil or petroleum products. Additionally, we may be required to deposit margin funds with the NYMEX when commodity prices increase as the value of the derivatives utilized to hedge the price risk in our inventory fluctuates. These deposits also impact our operating cash flows as we borrow under our credit facility or use cash on hand to fund the deposits.

See Note 14 in our Unaudited Condensed Consolidated Financial Statements for information regarding changes in components of operating assets and liabilities for the three months ended March 31, ~~2019~~2020 and March 31, ~~2018.~~2019.

Net cash flows provided by our operating activities for the three months ended March 31, ~~2019~~2020 were ~~$114.0~~$89.6 million compared to ~~$86.3~~$114.0 million for the three months ended March 31, ~~2018.~~2019. This ~~increase in operating cash flow~~decrease is primarily ~~due~~attributable to ~~positive working capital effects~~transaction costs incurred during the 2020 Quarter associated with the tender and ~~an increase in overall segment margin between the 2018 Quarter and the 2019 Quarter.~~redemption of our 2022 Notes.

Capital Expenditures, Distributions and Certain Cash Requirements

We use cash primarily for our operating expenses, working capital needs, debt service, acquisition activities, organic growth projects, maintenance capital expenditures and distributions we pay to our preferred and common unitholders. We finance maintenance capital expenditures and smaller organic growth projects and distributions primarily with cash generated by our operations. We have historically funded material growth capital projects (including acquisitions and organic growth projects) with borrowings under our credit facility, equity issuances and/or issuances of senior unsecured notes. We currently plan to allocate a substantial portion of our excess cash flow to reduce the balance outstanding under our revolving credit ~~facility.~~facility and to opportunistically repurchase our outstanding senior unsecured notes.

Capital Expenditures

A summary of our expenditures for fixed assets, business and other asset acquisitions for the three months ended March 31, ~~2019~~2020 and March 31, ~~2018~~2019 is as follows:


	Three Months Ended March 31,				Three Months Ended March 31,
	2019		2018		2020		2019
	(in thousands)				(in thousands)
Capital expenditures for fixed and intangible assets:
Maintenance capital expenditures:
Offshore pipeline transportation assets	$	433	$	308	$	768	$	433
Sodium minerals and sulfur services assets	8,048		7,410		4,575		8,048
Marine transportation assets	9,228		1,762		14,232		9,228
Onshore facilities and transportation assets	199		435		908		199
Information technology systems	141		62		75		141
Total maintenance capital expenditures	18,049		9,977		20,558		18,049
Growth capital expenditures:
Offshore pipeline transportation assets	25		346		259		25
Sodium minerals and sulfur services assets	14,658		2,289		10,400		14,658
Marine transportation assets	—		9,103		—		—
Onshore facilities and transportation assets	576		22,854		249		576
Information technology systems	—		2,364		1,178		—
Total growth capital expenditures	15,259		36,956		12,086		15,259
Total capital expenditures for fixed and intangible assets	33,308		46,933		32,644		33,308
Total capital expenditures					$	32,644	$	33,308

Expenditures for capital assets to grow the partnership distribution will depend on our access to debt and equity capital. We will look for opportunities to acquire assets from other parties that meet our criteria for stable cash flows. We continue to pursue a long-term growth strategy that may require significant capital.

Growth Capital Expenditures

On September 23, 2019, we announced the Granger Optimization Project. We entered into agreements with GSO for the purchase of up to approximately $350 million of preferred units of Alkali Holdings. The proceeds received from GSO will fund up to 100% of the anticipated cost of the GOP. On April 14, 2020, we entered into an amendment to our agreements with GSO to, among other things, extend the construction timeline of the Granger expansion project by one year. The extended completion date of the project is mid to late 2023. The Alkali Holdings preferred unitholders will receive PIK distributions in lieu of cash distributions during the new anticipated construction period. As of March 31, 2020 we had issued $130 million of Alkali Holdings preferred units to be used to fund the construction. The expansion is expected to increase our production at the Granger facilities by approximately 750,000 tons per year.

Except for the Granger Optimization Project, we do not anticipate spending material growth capital expenditures on any individual projects during ~~the remainder of 2019.~~2020.

Maintenance Capital Expenditures

Maintenance capital expenditures incurred during the ~~2019~~2020 Quarter primarily relate to expenditures in our Alkali Business and in our marine transportation segment. Our Alkali Business, which is included in our sodium minerals and sulfur services segment, incurs expenditures to maintain its equipment and ~~replace its plant equipment~~facilities due to the nature of its operations. Our marine transportation segment incurs expenditures as we frequently replace and upgrade certain equipment associated with our barge and vessel fleet during our planned and unplanned drydocks. See further discussion under "Available Cash before Reserves" for how such maintenance capital utilization is reflected in our calculation of Available Cash before Reserves.

Distributions to Unitholders

On May 15, ~~2019,~~2020, we will pay a distribution of ~~0.55~~$0.15 per common unit totaling ~~$67.4~~$18.4 million with respect to the ~~2019~~2020 Quarter. Information on our recent distribution history is included in Note 10 to our Unaudited Condensed Consolidated Financial Statements.

With respect to our ~~preferred units,~~Class A Convertible Preferred Units, we ~~have~~ declared a ~~PIK of the portion of the~~ quarterly distribution attributable to the first two months of the 2019 Quarter, resulting in the issuance of 364,180 preferred units. For the portion of the quarterly distribution attributable to the final month of the 2019 Quarter, we will pay a cash distribution of ~~$.2458 for each preferred unit, approximating $6.1 million. This total quarterly distribution to the preferred unitholders equates to a quarterly distribution of $.7374~~$0.7374 per ~~preferred unit~~Class A Convertible Preferred Unit (or $2.9496 on an annualized basis). for each Class A Convertible Preferred Unit held of record. These distributions will be payable on May 15, ~~2019~~2020 to unitholders ~~holders~~ of record at the close of business on May 1, ~~2019.~~2020.

Guarantor Summarized Financial Information

Our $2.5 billion aggregate principal amount of senior unsecured notes co-issued by Genesis Energy, L.P. and Genesis Energy Finance Corporation are fully and unconditionally guaranteed jointly and severally by all of Genesis Energy, L.P.’s current and future 100% owned domestic subsidiaries (the "Guarantor Subsidiaries), except the subsidiaries that hold our Alkali Business (collectively, the "Alkali Subsidiaries"), Genesis Free State Pipeline, LLC, Genesis NEJD Pipeline, LLC, and certain other subsidiaries. Genesis NEJD Pipeline, LLC is 100% owned by Genesis Energy, L.P., the parent company. The remaining non-guarantor subsidiaries are owned by Genesis Crude Oil, L.P., a Guarantor Subsidiary. The Guarantor Subsidiaries largely own the assets that we use to operate our business other than our Alkali Business. As a general rule, the assets and credit of our unrestricted subsidiaries are not available to satisfy the debts of Genesis Energy, L.P., Genesis Energy Finance Corporation or the Guarantor Subsidiaries, and the liabilities of our unrestricted subsidiaries do not constitute obligations of Genesis Energy, L.P., Genesis Energy Finance Corporation or the Guarantor Subsidiaries except, in the case of Alkali Holdings and Genesis Energy, L.P., to the extent agreed to in the Services Agreement. Genesis Energy Finance Corporation has no independent assets or operations. See Note 9 for additional information regarding our consolidated debt obligations.

The guarantees are senior unsecured obligations of each Guarantor Subsidiary and rank equally in right of payment with other existing and future senior indebtedness of such Guarantor Subsidiary, and senior in right of payment to all existing and future subordinated indebtedness of such Guarantor Subsidiary. The guarantee of our senior unsecured notes by each Guarantor Subsidiary is subject to certain automatic customary releases, including in connection with the sale, disposition or transfer of all of the capital stock, or of all or substantially all of the assets, of such Guarantor Subsidiary to one or more persons that are not us or a restricted subsidiary, the exercise of legal defeasance or covenant defeasance options, the satisfaction and discharge of the indentures governing our senior unsecured notes, the designation of such Guarantor Subsidiary as a non-guarantor restricted subsidiary or as an unrestricted subsidiary in accordance with the indentures governing our senior unsecured notes, the release of such Guarantor Subsidiary from its guarantee under our senior secured credit facility, or liquidation or dissolution of such Guarantor Subsidiary (collectively, the “Releases”). The obligations of each Guarantor Subsidiary under its note guarantee are limited as necessary to prevent such note guarantee from constituting a fraudulent conveyance under applicable law. We are not restricted from making investments in the Guarantor Subsidiaries and there are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions to Genesis Energy, L.P.

The rights of holders of our senior unsecured notes against the Guarantor Subsidiaries may be limited under the U.S. Bankruptcy Code or state fraudulent transfer or conveyance law.

The following is the summarized financial information for Genesis Energy, L.P. and the Guarantor Subsidiaries on a combined basis after elimination of intercompany transactions, which includes related receivable and payable balances, and the investment in and equity earnings from the Non-Guarantor Subsidiaries.



Balance Sheets	Genesis Energy, L.P. and Guarantor Subsidiaries
	March 31, 2020		December 31, 2019
ASSETS:
Current assets	$	251,305	$	323,492
Fixed assets, net	3,504,222		3,538,450
Non-current assets	923,194		951,276

LIABILITIES AND CAPITAL:⁽¹⁾
Current liabilities	230,092		292,941
Non-current liabilities	3,721,378		3,738,816
Class A Convertible Preferred Units	790,115		790,115



Statements of Operations	Genesis Energy, L.P. and Guarantor Subsidiaries
	Three Months Ended March 31, 2020			Twelve Months Ended December 31. 2019
Revenues	$	357,658		$	1,617,170
Operating costs	305,712			1,454,040
Operating income	51,946			163,130
Income before income taxes	24,907			566
Net income (loss) ⁽¹⁾	25,273			(122		)
Less: Accumulated distributions to Class A Convertible Preferred Units	(18,684		)	(74,467		)
Net income (loss) available to common unitholders	6,589			(74,589		)

(1) There are no noncontrolling interests held at the Issuer or Guarantor Subsidiaries for either period presented.

Excluded from non-current assets in the table above are $79.6 million and $76.2 million of net intercompany receivables due to Genesis Energy, L.P. and the Guarantor Subsidiaries from the Non-Guarantor Subsidiaries as of March 31, 2020 and December 31, 2019, respectively.

Non-GAAP Financial Measure Reconciliations

For definitions and discussion of our Non-GAAP financial measures refer to the "Non-GAAP Financial Measures" as later discussed and defined.

Available Cash before Reserves for the periods presented below was as follows:


	Three Months Ended March 31,						Three Months Ended March 31,
	2019			2018			2020			2019
	(in thousands)						(in thousands)
Net income attributable to Genesis Energy, L.P.	$	15,954		$	8,034		$	24,909		$	15,954
Income Tax Expense	402			375
Income tax (benefit) expense							(365		)	402
Depreciation, depletion, amortization and accretion	79,937			78,008			75,978			79,937
Plus (minus) Select Items, net	12,016			19,597			4,806			12,016
Maintenance capital utilized ⁽¹⁾	(6,125		)	(4,300		)	(8,800		)	(6,125		)
Cash tax expense	(150		)	(150		)	(150		)	(150		)
Cash distributions to preferred unitholders	(6,138		)	—
Other	—			6
Distributions to preferred unitholders							(18,684		)	(6,138		)
Redeemable noncontrolling interest redemption value adjustments ⁽²⁾							4,086			—
Available Cash before Reserves	95,896			101,570			$	81,780		$	95,896


(1)	For a description of the term "maintenance capital utilized", please see the definition of the term "Available Cash before Reserves" discussed below. Maintenance capital expenditures in the 2020 Quarter and 2019 Quarter were $20.6 million and ~~2018 Quarter were~~ $18.0 million, respectively.


(2)	Includes PIK distributions attributable to the period and ~~$10.0 million, respectively. This increase principally is a result of expenditures associated with our Alkali and Marine businesses.~~accretion on the redemption feature.

We define Available Cash before Reserves (“Available Cash before Reserves”) as net income before interest, taxes, depreciation, depletion, and amortization (including impairment, write-offs, accretion and similar items) after eliminating other non-cash revenues, expenses, gains, losses and charges (including any loss on asset dispositions), plus or minus certain other select items that we view as not indicative of our core operating results (collectively, “Select Items”), as adjusted for certain items, the most

significant of which in the relevant reporting periods have been the sum of maintenance capital utilized, net interest expense, cash tax expense, and cash distributions to our preferred unitholders. Although, we do not necessarily consider all of our Select Items to be non-recurring, infrequent or unusual, we believe that an understanding of these Select Items is important to the evaluation of our core operating results. The most significant Select Items in the relevant reporting periods are set forth below.


		Three Months Ended March 31,					Three Months Ended March 31,
		2019		2018			2020			2019
		(in thousands)					(in thousands)
I.	Applicable to all Non-GAAP Measures					Applicable to all Non-GAAP Measures
	Differences in timing of cash receipts for certain contractual arrangements¹	(2,287	)	(3,331	)	Differences in timing of cash receipts for certain contractual arrangements ⁽¹⁾	$	4,490		$	(2,287	)
	Adjustment regarding direct financing leases²	2,028		1,839		Adjustment regarding direct financing leases ⁽²⁾	2,238			2,028
	Certain non-cash items:					Certain non-cash items:
	Unrealized loss on derivative transactions excluding fair value hedges, net of changes in inventory value	3,865		2,181		Unrealized (gains) losses on derivative transactions excluding fair value hedges, net of changes in inventory value⁽³⁾	(31,002		)	3,865
	Loss on debt extinguishment	—		3,339		Loss on debt extinguishment ⁽⁴⁾	23,480			—
	Adjustment regarding equity investees³	4,828		9,057		Adjustment regarding equity investees ⁽⁵⁾	6,406			4,828
	Other	2,161		4,032		Other	(2,259		)	2,161
	Sub-total Select Items, net⁴	10,595		17,117		Sub-total Select Items, net ⁽⁶⁾	3,353			10,595
II.	Applicable only to Available Cash before Reserves					Applicable only to Available Cash before Reserves
	Certain transaction costs⁵	117		1,687		Certain transaction costs ⁽⁷⁾	—			117
	Equity compensation adjustments	(137	)	(156	)	Equity compensation adjustments	—			(137		)
	Other	1,441		949		Other	1,453			1,441
	Total Select Items, net⁶	12,016		19,597		Total Select Items, net⁽⁸⁾	$	4,806		$	12,016

(1) Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. For purposes of our Non-GAAP measures, we add those amounts in the period of payment and deduct them in the period in which GAAP recognizes them.

(2) Represents the net effect of adding cash receipts from direct financing leases and deducting expenses relating to direct financing leases.

(3) The 2020 Quarter includes a $32.5 million unrealized gain from the valuation of the embedded derivative associated with our Class A Convertible Preferred Units and the 2019 Quarter includes a $3.0 million unrealized loss from the valuation of the embedded derivative.

(4) Includes our transaction costs associated with the tender of $527.9 million and redemption of $222.1 million of our 2022 Notes in the first quarter of 2020, along with the write-off of our unamortized issuance costs and discount associated with these notes.

(5) Represents the net effect of adding distributions from equity investees and deducting earnings of equity investees net to us.

~~(4)~~(6) Represents all Select Items applicable to Segment Margin and Available Cash before Reserves.

~~(5)~~(7) Represents transaction costs relating to certain merger, acquisition, transition, and financing transactions incurred in advance of acquisition.

~~(6)~~(8) Represents Select Items applicable to Available Cash before Reserves.

Non-GAAP Financial Measures

General

To help evaluate our business, we use the non-generally accepted accounting principle (“non-GAAP”) financial measure of Available Cash before Reserves. We also present total Segment Margin as if it were a non-GAAP measure. Our non-GAAP measures may not be comparable to similarly titled measures of other companies because such measures may include or exclude other specified items. The schedules above provide reconciliations of Available Cash before Reserves to its most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the United States of America (GAAP). A reconciliation of total Segment Margin to net income is also included in our segment disclosure in Note 12 to our Unaudited Condensed Consolidated Financial Statements. Our non-GAAP financial measures should not be considered (i) as alternatives to GAAP measures of liquidity or financial performance or (ii) as being singularly important in any particular context; they should be considered in a broad context with other quantitative and qualitative information. Our Available Cash before Reserves and total Segment Margin measures are just two of the relevant data points considered from time to time.

When evaluating our performance and making decisions regarding our future direction and actions (including making discretionary payments, such as quarterly distributions) our board of directors and management team has access to a wide range of historical and forecasted qualitative and quantitative information, such as our financial statements; operational information; various non-GAAP measures; internal forecasts; credit metrics; analyst opinions; performance, liquidity and similar measures; income; cash flow; and expectations for us, and certain information regarding some of our peers. Additionally, our board of directors and management team analyze, and place different weight on, various factors from time to time. We believe that

investors benefit from having access to the same financial measures being utilized by management, lenders, analysts and other market participants. We attempt to provide adequate information to allow each individual investor and other external user to reach her/his own conclusions regarding our actions without providing so much information as to overwhelm or confuse such investor or other external user. Our non-GAAP financial measures should not be considered as an alternative to GAAP

measures such as net income, operating income, cash flow from operating activities or any other GAAP measure of liquidity or financial performance.

Segment Margin

Our chief operating decision maker (our Chief Executive Officer) evaluates segment performance based on a variety of measures including Segment Margin, segment volumes where relevant and capital investment. We define Segment Margin as revenues less product costs, operating expenses, and segment general and administrative expenses, after eliminating gain or loss on sale of assets, plus or minus applicable Select Items. Although, we do not necessarily consider all of our Select Items to be non-recurring, infrequent or unusual, we believe that an understanding of these Select Items is important to the evaluation of our core operating results.

A reconciliation of total Segment Margin to net income is included in our segment disclosure in Note 12 to our Unaudited Condensed Consolidated Financial Statements, as well as previously in this Item 2.

Available Cash before Reserves

Purposes, Uses and Definition

Available Cash before Reserves, often referred to by others as distributable cash flow, is a quantitative standard used throughout the investment community with respect to publicly traded partnerships and is commonly used as a supplemental financial measure by management and by external users of financial statements such as investors, commercial banks, research analysts and rating agencies, to aid in assessing, among other things:


(1)	the financial performance of our assets;


(2)	our operating performance;


(3)	the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry;


(4)	the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and


(5)	our ability to make certain discretionary payments, such as distributions on our preferred and common units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness.

Disclosure Format Relating to Maintenance Capital

We use a modified format relating to maintenance capital requirements because our maintenance capital expenditures vary materially in nature (discretionary vs. non-discretionary), timing and amount from time to time. We believe that, without such modified disclosure, such changes in our maintenance capital expenditures could be confusing and potentially misleading to users of our financial information, particularly in the context of the nature and purposes of our Available Cash before Reserves measure. Our modified disclosure format provides those users with information in the form of our maintenance capital utilized measure (which we deduct to arrive at Available Cash before Reserves). Our maintenance capital utilized measure constitutes a proxy for non-discretionary maintenance capital expenditures and it takes into consideration the relationship among maintenance capital expenditures, operating expenses and depreciation from period to period.

Maintenance Capital Requirements

Maintenance Capital Expenditures

Maintenance capital expenditures are capitalized costs that are necessary to maintain the service capability of our existing assets, including the replacement of any system component or equipment which is worn out or obsolete. Maintenance capital expenditures can be discretionary or non-discretionary, depending on the facts and circumstances.

Initially, substantially all of our maintenance capital expenditures were (a) related to our pipeline assets and similar infrastructure, (b) non-discretionary in nature and (c) immaterial in amount as compared to our Available Cash before Reserves measure. Those historical expenditures were non-discretionary (or mandatory) in nature because we had very little (if any) discretion as to whether or when we incurred them. We had to incur them in order to continue to operate the related pipelines in a safe and reliable manner and consistently with past practices. If we had not made those expenditures, we would not have been able to continue to operate all or portions of those pipelines, which would not have been economically feasible. An

example of a non-discretionary (or mandatory) maintenance capital expenditure would be replacing a segment of an old pipeline because one can no longer operate that pipeline safely, legally and/or economically in the absence of such replacement.

As we exist today, a substantial amount of our maintenance capital expenditures from time to time will be (a) related to our assets other than pipelines, such as our marine vessels, trucks and similar assets, (b) discretionary in nature and (c) potentially material in amount as compared to our Available Cash before Reserves measure. Those expenditures will be discretionary (or non-mandatory) in nature because we will have significant discretion as to whether or when we incur them.

We will not be forced to incur them in order to continue to operate the related assets in a safe and reliable manner. If we chose not make those expenditures, we would be able to continue to operate those assets economically, although in lieu of maintenance capital expenditures, we would incur increased operating expenses, including maintenance expenses. An example of a discretionary (or non-mandatory) maintenance capital expenditure would be replacing an older marine vessel with a new marine vessel with substantially similar specifications, even though one could continue to economically operate the older vessel in spite of its increasing maintenance and other operating expenses.

In summary, as we continue to expand certain non-pipeline portions of our business, we are experiencing changes in the nature (discretionary vs. non-discretionary), timing and amount of our maintenance capital expenditures that merit a more detailed review and analysis than was required historically. Management’s recently increasing ability to determine if and when to incur certain maintenance capital expenditures is relevant to the manner in which we analyze aspects of our business relating to discretionary and non-discretionary expenditures. We believe it would be inappropriate to derive our Available Cash before Reserves measure by deducting discretionary maintenance capital expenditures, which we believe are similar in nature in this context to certain other discretionary expenditures, such as growth capital expenditures, distributions/dividends and equity buybacks. Unfortunately, not all maintenance capital expenditures are clearly discretionary or non-discretionary in nature. Therefore, we developed a measure, maintenance capital utilized, that we believe is more useful in the determination of Available Cash before Reserves. Our maintenance capital utilized measure, which is described in more detail below, constitutes a proxy for non-discretionary maintenance capital expenditures and it takes into consideration the relationship among maintenance capital expenditures, operating expenses and depreciation from period to period.

Maintenance Capital Utilized

We believe our maintenance capital utilized measure is the most useful quarterly maintenance capital requirements measure to use to derive our Available Cash before Reserves measure. We define our maintenance capital utilized measure as that portion of the amount of previously incurred maintenance capital expenditures that we utilize during the relevant quarter, which would be equal to the sum of the maintenance capital expenditures we have incurred for each project/component in prior quarters allocated ratably over the useful lives of those projects/components.

Because we did not initially use our maintenance capital utilized measure, our future maintenance capital utilized calculations will reflect the utilization of solely those maintenance capital expenditures incurred since December 31, 2013.

Commitments and Off-Balance Sheet Arrangements

Contractual Obligations and Commercial Commitments

There have been no material changes to the commitments and obligations reflected in our Annual ~~Report on Form 10-K for the year ended~~ ~~December 31, 2018~~.

Report.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements, special purpose entities, or financing partnerships, other than as disclosed under “Contractual Obligations and Commercial Commitments” in our Annual Report, ~~on Form 10-K for the year ended~~ ~~December 31, 2018~~, nor do we have any debt or equity triggers based upon our unit or commodity prices.

Forward Looking Statements

The statements in this Quarterly Report on Form 10-Q that are not historical information may be “forward looking statements” as defined under federal law. All statements, other than historical facts, included in this document that address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as plans for growth of the business, future capital expenditures, competitive strengths, goals, references to future goals or intentions, estimated or projected future financial performance, our expectations regarding the potential impact of the COVID-19 pandemic, and other such references are forward-looking statements, and historical performance is not necessarily indicative of future performance. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. They use words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “could,” “plan,” “position,” “projection,” “strategy,” “should” or “will,” or the negative of those terms or other variations of them or by comparable terminology. In particular, statements, expressed or implied, concerning future actions, conditions or events or future operating results or the

ability to generate sales, income or cash flow are forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results are beyond our ability or the ability of our affiliates to control or predict. Specific factors that could cause actual results to differ from those in the forward-looking statements include, among others:


•	demand for, the supply of, our assumptions about, changes in forecast data for, and price trends related to crude oil, liquid petroleum, natural gas, NaHS, soda ash, caustic soda and CO2, all of which may be affected by economic activity, capital expenditures by energy producers, weather, alternative energy sources,

international events, pandemics (including COVID-19), the ~~supply~~actions of ~~our assumptions about, changes in forecast data for,~~OPEC and ~~price trends related to crude~~other oil ~~liquid petroleum, natural gas, NaHS, soda ash, caustic soda and CO~~2~~, all of which may be affected by economic activity, capital expenditures by energy producers, weather, alternative energy sources, international events,~~exporting nations, conservation and technological advances;

our ability to successfully execute our business and financial strategies;

the realized benefits of the preferred equity investment in Alkali Holdings by GSO or our ability to comply with the GOP agreements and maintain control over and ownership of the Alkali Business;

throughput levels and rates;

changes in, or challenges to, our tariff rates;

our ability to successfully identify and close strategic acquisitions on acceptable terms (including obtaining third-party consents and waivers of preferential rights), develop or construct infrastructure assets, make cost saving changes in operations and integrate acquired assets or businesses into our existing operations;

service interruptions in our pipeline transportation systems, ~~and~~ processing ~~operations;~~operations, or mining facilities;

shutdowns or cutbacks at refineries, petrochemical plants, utilities, individual plants, or other businesses for which we transport crude oil, petroleum, natural gas or other products or to whom we sell soda ash, petroleum, or other products;

risks inherent in marine transportation and vessel operation, including accidents and discharge of pollutants;

changes in laws and regulations to which we are subject, including tax withholding issues, regulations regarding qualifying income, accounting pronouncements, and safety, environmental and employment laws and regulations;

the effects of production declines ~~and~~ resulting from a suspension of drilling in the Gulf of Mexico or otherwise;

the effects of future laws and ~~government regulation;~~regulations;

planned capital expenditures and availability of capital resources to fund capital ~~expenditures;~~expenditures, and our ability to access the credit and capital markets to obtain financing on terms we deem acceptable;

our inability to borrow or otherwise access funds needed for operations, expansions or capital expenditures as a result of our credit agreement and the indentures governing our notes, which contain various affirmative and negative covenants;

loss of key personnel;

cash from operations that we generate could decrease or fail to meet expectations, either of which could reduce our ability to pay quarterly cash distributions at the current level or to increase quarterly cash distributions in the future;

an increase in the competition that our operations encounter;

cost and availability of insurance;

hazards and operating risks that may not be covered fully by insurance;

our financial and commodity hedging arrangements, which may reduce our earnings, profitability and cash flow;

changes in global economic conditions, including capital and credit markets conditions, inflation and interest rates;

the impact of natural disasters, pandemics (including COVID-19), epidemics, accidents or ~~terrorism;~~terrorism, and actions taken by governmental authorities and other third parties in response thereto, on our business financial condition and results of operations;

changes in the financial condition of customers or counterparties;

adverse rulings, judgments, or settlements in litigation or other legal or tax matters;

the treatment of us as a corporation for federal income tax purposes or if we become subject to entity-level taxation for state tax purposes; ~~and~~

the potential that our internal controls may not be adequate, weaknesses may be discovered or remediation of any identified weaknesses may not be successful and the impact these could have on our unit ~~price.~~price; and

a cyberattack involving our information systems and related infrastructure, or that of our business associates.

You should not put undue reliance on any forward-looking statements. When considering forward-looking statements, please review the risk factors described under “Risk Factors” discussed in Item 1A of our Annual Report ~~on Form 10-K for the year ended~~ ~~December 31, 2018~~. These risks may also be specifically described in our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K (or any amendments to those reports) and other documents that we may file from time to time with the SEC. New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. Except as required by applicable securities laws, we do not intend to update these forward-looking statements and information.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The following should be read in conjunction with Quantitative and Qualitative Disclosures About Market Risk included under Item 7A in our Annual ~~Report on Form 10-K for the year ended~~ ~~December 31, 2018~~.Report. There have been no material changes that would affect the quantitative and qualitative disclosures provided therein. Also, see Note 15 to our Unaudited Condensed Consolidated Financial Statements for additional discussion related to derivative instruments and hedging activities.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures and internal controls designed to ensure that information required to be disclosed in our filings under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the ~~Securities and Exchange Commission’s~~SEC's rules and forms. Our chief executive officer and chief financial officer, with the participation of our management, have evaluated our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q and have determined that such disclosure controls and procedures are effective in ensuring that material information required to be disclosed in this Quarterly Report on Form 10-Q is accumulated and communicated to them and our management to allow timely decisions regarding required disclosures.

There were no changes during the first quarter of ~~2019~~2020 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information with respect to this item has been incorporated by reference from our Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019. There have been no material developments in legal proceedings since the filing of such Form 10-K.

Item 1A. Risk Factors

~~There~~Except as described below, there has been no material change in our risk factors as previously disclosed in our Annual Report.

As part of the filing of this Form 10-Q, we intend to revise, clarify and supplement our risk factors, including those contained in the Annual Report. The risk factor below should be considered together with the other risk factors described in the Annual Report ~~on Form 10-K for~~and filings with the ~~fiscal year ended December 31, 2018.~~SEC under the Securities Exchange Act of 1934, as amended, after the Annual Report.

For additional information about our risk factors, see Item 1A of our Annual Report, ~~on Form 10-K for the year ended December 31, 2018,~~ as well as any risk factors contained in other filings with the SEC, including Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Form 8-K/A and other documents that we may file from time to time with the SEC.

The widespread outbreak of an illness, pandemic (like COVID-19) or any other public health crisis may have material adverse effects on our business, financial position, results of operations and/or cash flows.

In December 2019, a novel strain of coronavirus (SARS-Cov-2), which causes COVID-19, was reported to have surfaced in China. The spread of this virus has caused business disruption, including disruption to the oil and natural gas and industrial industries. In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic, and the U.S. economy began to experience pronounced effects. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, reduced global demand for oil and gas, petroleum products and industrial products, and created significant volatility and disruption of financial and commodity markets. The extent of the impact of the COVID-19 pandemic on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, is uncertain and depends on various factors, including the demand for oil and natural gas, petroleum products and industrial products (including the impact that reductions in travel, manufacturing and consumer product demand have had and will have on the demand for commodities), the availability of personnel, equipment and services critical to our ability to operate our assets and the impact of potential governmental restrictions on travel, transportation and operations. There is uncertainty around the extent and duration of the disruption. The degree to which the COVID-19 pandemic or any other public health crisis adversely impacts our results will depend on future developments, which are highly uncertain and cannot be predicted. These developments include, but are not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, its impact on the economy and market conditions, and how quickly and to what extent normal economic and operating conditions can resume. These potential impacts, while uncertain, could adversely affect our operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

There were no sales of unregistered equity securities during the ~~2019~~2020 Quarter.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Information regarding mine safety and other regulatory action at our mines in Green River and Granger, Wyoming is ~~including~~included in Exhibit 95 to this Form 10-Q.

Item 5. Other Information

None.

Item 6. Exhibits.

(a) Exhibits



	3.1	Certificate of Limited Partnership of Genesis Energy, L.P. (incorporated by reference to Exhibit 3.1 to Amendment No. 2 of the Registration Statement on Form S-1, File No. 333-11545).
	3.2	Amendment to the Certificate of Limited Partnership of Genesis Energy, L.P. (incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, File No. 001-12295).
	3.3	Fifth Amended and Restated Agreement of Limited Partnership of Genesis Energy, L.P. (incorporated by reference to Exhibit 5.1 to the Company's Current Report on Form 8-K dated January 3, 2011, File No. 001-12295).
	3.4	First Amendment to Fifth Amended and Restated Agreement of Limited Partnership of Genesis Energy, L.P., dated September 1, 2017 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated September 7, 2017, File No. 001-12295).
	3.5	Second Amendment to Fifth Amended and Restated Agreement of Limited Partnership of Genesis Energy, L.P., dated December 31, 2017 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated January 4, 2018, File No. 001-12295).
	3.6	Certificate of Conversion of Genesis Energy, Inc. a Delaware corporation, into Genesis Energy, LLC, a Delaware limited liability company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated January 7, 2009, File No. 001-12295).
	3.7	Certificate of Formation of Genesis Energy, LLC (formerly Genesis Energy, Inc.) (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K dated January 7, 2009, File No. 001-12295).
	3.8	Second Amended and Restated Limited Liability Company Agreement of Genesis Energy, LLC dated December 28, 2010 (incorporated by reference to Exhibit 5.2 to the Company's Current Report on Form 8-K dated January 3, 2011, File No. 001-12295).
	3.9	Certificate of Incorporation of Genesis Energy Finance Corporation, dated as of November 26, 2006 (incorporated by reference to Exhibit 3.7 to Registration Statement on Form S-4 filed on September 26, 2011, File No. 333-177012).
	3.10	Bylaws of Genesis Energy Finance Corporation (incorporated by reference to Exhibit 3.8 to Registration Statement on Form S-4 filed on September 26, 2011, File No. 333-177012).
	4.1	Form of Unit Certificate of Genesis Energy, L.P. (incorporated by reference to Exhibit 4.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-12295).
*	4.2	~~Thirteenth~~Fourteenth Supplemental Indenture for ~~6.000%~~7.750% Senior Notes ~~due 2023, 6.75% Senior Notes due 2022, 6.50% Senior Notes due 2025, and 6.250% Senior Notes due 2026,~~Due 2028, dated as of ~~March 22, 2019,~~January 16, 2020, among Genesis Energy, L.P., Genesis Energy Finance Corporation, the Guarantors named therein and U.S. Bank National ~~Association,~~Associations, as trustee (incorporated by reference to Exhibit 4.2 to the Company’s Current report on Form 8-K dated January 16, 2020, File No. 001-12295).
*	~~4.3~~10.1	~~Fifteenth Supplemental Indenture for 5.625% Senior Notes due 2024,~~Tenth Amendment to Fourth Amended and Restated Credit Agreement, dated as of March ~~22, 2019,~~25, 2020, among Genesis Energy, L.P., ~~Genesis Energy Finance Corporation,~~as the ~~Guarantors named therein~~borrower, Wells Fargo Bank, National Association, as administrative agent and issuing bank, Bank of America, N.A. and Bank of Montreal, as co-syndication agents, U.S. Bank National Association, as ~~trustee~~documentation agent, and the lenders party thereto.
*	22.1	List of Issuers and Guarantor Subsidiaries.
*	31.1	Certification by Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
*	31.2	Certification by Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
*	32	Certification by Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934.
*	95	Mine Safety ~~Disclosures~~Disclosures.
*	101.INS	XBRL Instance ~~Document~~Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
*	101.SCH	XBRL Schema ~~Document~~Document.
*	101.CAL	XBRL Calculation Linkbase ~~Document~~Document.
*	101.LAB	XBRL Label Linkbase ~~Document~~Document.
*	101.PRE	XBRL Presentation Linkbase ~~Document~~Document.
*	101.DEF	XBRL Definition Linkbase ~~Document~~Document.
	104	Cover Page Interactive Data File (formatted as Inline XBRL).



*	Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		GENESIS ENERGY, L.P. (A Delaware Limited Partnership)

	By:	GENESIS ENERGY, LLC, as General Partner



Date:	May ~~3, 2019~~6, 2020	By:	/s/ ROBERT V. DEERE
			Robert V. Deere
			Chief Financial Officer
			(Duly Authorized Officer)

5554



	Three Months Ended March 31, 2018
	Onshore Facilities & Transportation		Sodium Minerals & Sulfur Services		Offshore Pipeline Transportation		Marine Transportation		Consolidated
Fee-based revenues	$	30,338	$	—	$	73,260	$	48,929	$	152,527
Product Sales	287,371		263,965		—		—		551,336
Refinery Services	—		21,945		—		—		21,945
	$	317,709	$	285,910	$	73,260	$	48,929	$	725,808



	Offshore Pipeline Transportation		Onshore Facilities and Transportation
Remainder of 2019	$	67,074	$	48,393
2020	54,414		57,090
2021	37,806		20,139
2022	26,170		4,283
2023	15,518		—
Thereafter	123,665		—
Total	$	324,647	$	129,905



Leases	Classification	Financial Statement Caption	March 31, 2019		January 1, 2019
Assets
	Transportation Equipment	Right of Use Assets, net	113,384		117,727
	Office Space & Equipment	Right of Use Assets, net	13,316		14,194
	Facilities and Equipment	Right of Use Assets, net	74,088		77,008
Total Right of Use Assets, net			200,788		208,929
Liabilities
Current		Accrued liabilities	31,560		33,016
Non-Current		Other long-term liabilities	163,649		171,348
Total Lease Liability			$	195,209	$	204,364



Maturity of Lease Liabilities	Transportation Equipment			Office Space and Equipment			Facilities and Equipment			Operating Leases
Remainder of 2019	$	20,898		$	3,088		$	8,408		$	32,394
2020	24,621			4,049			9,383			38,053
2021	19,483			3,067			6,720			29,270
2022	17,880			2,362			5,410			25,652
2023	17,077			598			5,349			23,024
Thereafter	43,619			2,307			129,085			175,011
Total Lease Payments	143,578			15,471			164,355			323,404
Less: Interest	(26,689		)	(2,117		)	(99,389		)	(128,195		)
Present value of operating lease liabilities	$	116,889		$	13,354		$	64,966		$	195,209



Cash Flows Information	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	12,640
Leased assets obtained in exchange for new operating lease liabilities	197,812



ARO liability balance, December 31, 2018	$	239,865
Accretion expense	2,220
Settlements	(6,068		)
ARO liability balance, March 31, 2019	$	236,017



Remainder of	2019	$	7,660
	2020	$	10,997
	2021	$	9,313
	2022	$	9,892
	2023	$	10,586



Remainder of	2019	$	12,882
	2020	$	16,167
	2021	$	10,364
	2022	$	10,205
	2023	$	9,919



Distribution For	Date Issued	Number of Units	Total Amount
2018
1^st Quarter	May 15, 2018	500,976	$	16,888
2^nd Quarter	August 14, 2018	511,934	$	17,527
3^rd Quarter	November 14, 2018	523,132	$	17,635
4^th Quarter	February 14, 2019	534,576	$	18,021
2019
1^st Quarter	May 15, 2019	364,180	$	12,277



	Class A Convertible Preferred Units
	Units		$
Balance as of December 31, 2018	24,438,022		$	761,466
Distributions paid-in-kind	534,576		18,021
Allocation of Distributions paid in-kind to Preferred Distribution Rate Reset Election (Note 16)	—		(979		)
Balance as of March 31, 2019	$	24,972,598	$	778,508



	Genesis Energy, L.P. (Parent and Co-Issuer)		Genesis Energy Finance Corporation (Co-Issuer)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Genesis Energy, L.P. Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	6	$	—	$	8,757		$	2,441		$	—		$	11,204
Other current assets	25		—		416,882			12,135			(176		)	428,866
Total current assets	31		—		425,639			14,576			(176		)	440,070
Fixed assets, at cost	—		—		5,393,893			77,584			—			5,471,477
Less: Accumulated depreciation	—		—		(1,063,357		)	(29,842		)	—			(1,093,199		)
Net fixed assets	—		—		4,330,536			47,742			—			4,378,278
Mineral Leaseholds, net of accumulated depletion	—		—		559,161			—			—			559,161
Goodwill	—		—		301,959			—			—			301,959
Other assets, net	9,978		—		429,612			115,503			(170,796		)	384,297
Advances to affiliates	3,238,092		—		—			104,796			(3,342,888		)	—
Equity investees	—		—		350,258			—			—			350,258
Investments in subsidiaries	2,656,379		—		62,191			—			(2,718,570		)	—
Right of Use Assets, net	$	—	$	—	$	200,788		$	—		$	—		200,788
Total assets	$	5,904,480	$	—	$	6,660,144		$	282,617		$	(6,232,430	)	$	6,614,811
LIABILITIES AND CAPITAL
Current liabilities	$	53,616	$	—	$	302,557		$	47,029		$	(236	)	$	402,966
Senior secured credit facility	942,000		—		—			—			—			942,000
Senior unsecured notes, net of debt issuance costs	2,464,247		—		—			—			—			2,464,247
Deferred tax liabilities	—		—		12,828			—			—			12,828
Advances from affiliates	—		—		3,342,790			—			(3,342,790		)	—
Other liabilities	44,795		—		352,381			176,092			(170,658		)	402,610
Total liabilities	3,504,658		—		4,010,556			223,121			(3,513,684		)	4,224,651
Mezzanine Capital:
Class A Convertible Preferred Units	778,508		—		—			—			—			778,508
Partners’ capital, common units	1,621,314		—		2,648,649			70,097			(2,718,746		)	1,621,314
Accumulated other comprehensive income⁽¹⁾	—		—		939			—			—			939
Noncontrolling interests	—		—		—			(10,601		)	—			(10,601		)
Total liabilities, mezzanine capital and partners’ capital	$	5,904,480	$	—	$	6,660,144		$	282,617		$	(6,232,430	)	$	6,614,811