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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
 
 
 
 
 
Form 10-Q 
 
 
 
 
 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
OR
☐ 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.

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Large 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 of the Exchange Act). Yes ☐ No ý
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 6, 2020.


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GENESIS ENERGY, L.P.
TABLE OF CONTENTS
 

 
 
Page
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

2
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
GENESIS ENERGY, L.P.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except units)  
 
March 31, 2020
 
December 31, 2019
ASSETS
 
 
 
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
18,137

 
$
29,128

Restricted cash
23,372

 
27,277

Accounts receivable - trade, net
315,645

 
417,002

Inventories
70,161

 
65,137

Other
69,565

 
54,530

Total current assets
496,880

 
593,074

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

MINERAL LEASEHOLDS, net of accumulated depletion
554,862

 
555,825

NET INVESTMENT IN DIRECT FINANCING LEASES, net of unearned income
105,251

 
107,702

EQUITY INVESTEES
327,942

 
334,523

INTANGIBLE ASSETS, net of amortization
136,071

 
138,927

GOODWILL
301,959

 
301,959

RIGHT OF USE ASSETS, net
175,889

 
177,071

OTHER ASSETS, net of amortization
79,113

 
94,085

TOTAL ASSETS
$
6,434,458

 
$
6,597,641

LIABILITIES AND CAPITAL
 
 
 
CURRENT LIABILITIES:
 
 
 
Accounts payable - trade
$
151,868

 
$
218,737

Accrued liabilities
172,941

 
196,758

Total current liabilities
324,809

 
415,495

SENIOR SECURED CREDIT FACILITY
977,400

 
959,300

SENIOR UNSECURED NOTES, net of debt issuance costs
2,463,171

 
2,469,937

DEFERRED TAX LIABILITIES
12,125

 
12,640

OTHER LONG-TERM LIABILITIES
366,281

 
393,850

Total liabilities
4,143,786

 
4,251,222

 
 
 
 
MEZZANINE CAPITAL:
 
 
 
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, 2020 and December 31, 2019
1,382,126

 
1,443,320

Accumulated other comprehensive loss
(8,431
)
 
(8,431
)
Noncontrolling interests
(2,357
)
 
(3,718
)
Total partners' capital
1,371,338

 
1,431,171

TOTAL LIABILITIES, MEZZANINE CAPITAL AND PARTNERS’ CAPITAL
$
6,434,458

 
$
6,597,641

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

3
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GENESIS ENERGY, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit amounts)
 
 
Three Months Ended
March 31,
 
2020
 
2019
REVENUES:
 
 
 
Offshore pipeline transportation
$
78,429

 
$
78,317

Sodium minerals and sulfur services
243,390

 
275,486

Marine transportation
62,346

 
56,650

Onshore facilities and transportation
155,758

 
209,556

Total revenues
539,923

 
620,009

COSTS AND EXPENSES:
 
 
 
Onshore facilities and transportation product costs
111,952

 
168,105

Onshore facilities and transportation operating costs
18,248

 
19,652

Marine transportation operating costs
42,937

 
43,733

Sodium minerals and sulfur services operating costs
205,233

 
218,708

Offshore pipeline transportation operating costs
18,661

 
18,458

General and administrative
9,373

 
11,686

Depreciation, depletion and amortization
74,357

 
77,638

Total costs and expenses
480,761

 
557,980

OPERATING INCOME
59,162

 
62,029

Equity in earnings of equity investees
14,159

 
12,997

Interest expense
(54,965
)
 
(55,701
)
Other income (expense)
10,258

 
(2,976
)
Income before income taxes
28,614

 
16,349

Income tax benefit (expense)
365

 
(402
)
NET INCOME
28,979

 
15,947

Net loss attributable to noncontrolling interests
16

 
7

Net income attributable to redeemable noncontrolling interests
(4,086
)
 
—

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
)
NET INCOME (LOSS) PER COMMON UNIT (Note 11):
 
 
 
Basic and Diluted
$
0.05

 
$
(0.02
)
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS:
 
 
 
Basic and Diluted
122,579

 
122,579

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


4
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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.


5
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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.

6
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GENESIS ENERGY, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
 
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.

7
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 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 (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, 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
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.
We 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 the pandemic on our results for the three months ended March 31, 2020. See further discussion on COVID-19 in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
    

8
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GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2. Recent Accounting Developments
Recently Adopted
We have adopted guidance under ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"), as of January 1, 2020 . The standard 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 are required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. We performed an assessment at our adoption date, January 1, 2020, which consisted of reviewing current and 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 date and for the three months ended March 31, 2020.
During the first quarter of 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 early adopted the amendment and included the required summarized financial 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, 2020 and 2019, respectively:
 
Three Months Ended
March 31, 2020
 
Offshore Pipeline Transportation
 
Sodium Minerals & Sulfur Services
 
Marine Transportation
 
Onshore Facilities and Transportation
 
Consolidated
Fee-based revenues
$
78,429

 
$
—

 
$
62,346

 
$
40,990

 
$
181,765

Product Sales
—

 
215,366

 
—

 
114,768

 
330,134

Refinery Services
—

 
28,024

 
—

 
—

 
28,024

 
$
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



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.


9
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, 2019 and March 31, 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




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, 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.

The majority of our contracts qualify for one of these expedients or exemptions. For the remaining contract types that involve revenue recognition over a long-term period with long-term fixed consideration (adjusted for indexing as required), we determined our allocations of transaction price that relate to unsatisfied performance obligations. 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 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





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 Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term.
Our Right of Use Assets, net balance 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. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use. 



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GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 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. These revenues are recorded within its respective segment's revenues in the Unaudited Condensed Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
 
Three Months Ended
March 31,
 
2020
 
2019
M/T American Phoenix
$
6,643

 
$
6,660

Free State Pipeline
1,923

 
1,634


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, 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


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


11
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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



Inventories are valued at the lower of cost or net realizable value. The net realizable value of inventories was adjusted $3.5 million below cost as of March 31, 2020, with no such adjustment as of December 31, 2019.

12
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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



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



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



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, 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



13
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GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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


Certain of our unconsolidated affiliates have AROs recorded at March 31, 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, 2020 and December 31, 2019, the unamortized excess cost amounts totaled $347.0 million and $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



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




14
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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




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 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



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


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



15
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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


(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 $6.8 million and $7.6 million as of March 31, 2020 and December 31, 2019, respectively.
As of March 31, 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, 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, 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, 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.


16
Table of Contents
GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At March 31, 2020, we had $977.4 million borrowed under our $1.7 billion credit facility, with $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, 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 (the "Services Agreement").
Senior Unsecured Note Issuances, Redemption and Extinguishment
On January 16, 2020, we issued $750.0 million in aggregate principal amount of our 7.75% senior unsecured notes due February 15, 2028 (the “2028 Notes”). Interest payments are due February 1 and August 1 of each year with the initial interest payment due on August 1, 2020. That issuance generated net proceeds of $736.7 million net of issuance costs incurred. The net proceeds were used to purchase $527.9 million of our existing 6.75% senior unsecured notes due August 1, 2022 (the “2022 Notes”), including the related accrued interest and tender premium on those notes, and the remaining proceeds at the time were used to repay a portion of the borrowings outstanding under our revolving credit facility. On January 17, 2020 we called for redemption of the remaining $222.1 million of our 2022 Notes, and they were redeemed on February 16, 2020. We incurred a total loss of approximately $23.5 million relating to the extinguishment of our 2022 senior unsecured notes, inclusive of our transactions costs and the write-off of the related unamortized debt issuance costs and discount, which is recorded as "Other income (expense)" in our Unaudited Consolidated Statements of Operations for the three months ended March 31, 2020.

 

10. Partners’ Capital, Mezzanine Capital and Distributions
At March 31, 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 2019 and 2020:
Distribution For
 
Date Paid
 
Per Unit
Amount
 
Total
Amount
 
2019
 
 
 
 
 
 
 
1st Quarter
 
May 15, 2019
 
$
0.5500

 
$
67,419

 
2nd Quarter
 
August 14, 2019
 
$
0.5500

 
$
67,419

 
3rd Quarter
 
November 14, 2019
 
$
0.5500

 
$
67,419

 
4th Quarter
 
February 14, 2020
 
$
0.5500

 
$
67,419

 
2020
 
 
 
 
 
 
 
1st Quarter
 
May 15, 2020
(1) 
$
0.1500

 
$
18,387

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


17
Table of Contents
GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Class A Convertible Preferred Units
At March 31, 2020 we had 25,336,778 Class A Convertible Preferred Units (our "Class A Convertible Preferred Units") outstanding. Our Class 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 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 Class A Convertible Preferred Units.    
Accounting for the Class A Convertible Preferred Units
Our 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 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 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 Class A Convertible Preferred Units.
Initial and Subsequent Measurement
We initially recognized our 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 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 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.
Class A Convertible Preferred 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
 
 
 
 
 
 
1st 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 Class A Convertible Preferred Unit distributions that accumulated during the period. Net income attributable to Genesis Energy, L.P. was reduced by $18.7 million and $18.4 million for the three months ended March 31, 2020 and March 31, 2019.


18
Table of Contents
GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

We paid or will pay the following cash distributions to our Class A Convertible Preferred unitholders in 2019 and 2020:
Distribution For
 
Date Paid
 
Per Unit
Amount
 
Total
Amount
2019
 
 
 
 
 
 
1st Quarter
 
May 15, 2019
 
$
0.2458

 
$
6,138

2nd Quarter
 
August 14, 2019
 
$
0.7374

 
$
18,684

3rd Quarter
 
November 14, 2019
 
$
0.7374

 
$
18,684

4th Quarter
 
February 14, 2020
 
$
0.7374

 
$
18,684

2020
 
 
 
 
 
 
1st Quarter
 
May 15, 2020
(1) 
$
0.7374

 
$
18,684


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

19
Table of Contents
GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table shows the change in our redeemable noncontrolling interest balance from December 31, 2019 to March 31, 2020:
Balance as of December 31, 2019
 
$
125,133

PIK distributions
 
3,294

Redemption accretion
 
792

Balance as of March 31, 2020
 
$
129,219




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 Class A Convertible Preferred Units is calculated using the if-converted method. Under the if-converted method, 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, 2020, the effect of the assumed conversion of the 25,336,778 Class A Convertible Preferred Units was anti-dilutive and was not included in the computation of diluted earnings per unit.
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
)
 
 
 
 




20
Table of Contents
GENESIS ENERGY, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

12. Business Segment Information
We currently manage our businesses through four 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. 
Segment information for the periods presented below was as follows:
 
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

Capital expenditures (b)
$
458

 
$
22,706

 
$
775

 
$
9,228

 
$
33,167

Revenues:
 
 
 
 
 
 
 
 
 
External customers
$
78,317

 
$
277,349

 
$
211,025

 
$
53,318

 
620,009

Intersegment (c)
—

 
(1,863
)
 
(1,469
)
 
3,332

 
—

Total revenues of reportable segments
$
78,317

 
$
275,486

 
$
209,556

 
$
56,650

 
$
620,009


Total assets by reportable segment were as follows:
 
March 31,
2020
 
December 31,
2019
Offshore pipeline transportation
$
2,267,552

 
$
2,306,946

Sodium minerals and sulfur services
1,994,957

 
2,019,905

Onshore facilities and transportation
1,370,309

 
1,457,190

Marine transportation
761,482

 
772,383

Other assets
40,158

 
41,217

Total consolidated assets
$
6,434,458

 
$
6,597,641

 

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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 contributions to equity investees, if any.
(c)
Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
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


(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,
 
2020
 
2019
Revenues:
 
 
 
Revenues from services and fees to Poseidon(1)
$
3,147

 
$
3,165

Revenues from product sales to ANSAC
73,079

 
90,679

Costs and expenses:
 
 
 
Amounts paid to our CEO in connection with the use of his aircraft
$
165

 
$
165

Charges for services from Poseidon(1)
254

 
247

Charges for services from ANSAC
832

 
1,057

 
(1)
We own 64% interest in Poseidon

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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.

Poseidon
At March 31, 2020 and December 31, 2019 Poseidon owed us $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 $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.
ANSAC is considered a variable interest entity (VIE) because we experience certain risks and rewards from our relationship with it. 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



        

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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


Payments of interest and commitment fees were $33.7 million and $39.5 million for the three months ended March 31, 2020 and March 31, 2019, respectively. We capitalized interest of $0.5 million and $0.7 million during the three months ended March 31, 2020 and March 31, 2019, respectively.
At March 31, 2020 and March 31, 2019, we had incurred liabilities for fixed and intangible asset additions totaling $17.2 million and $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 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 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.

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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, 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


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.

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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, 2020 and December 31, 2019:
Fair Value of Derivative Assets and Liabilities
 
 
Unaudited Condensed Consolidated Balance Sheets Location
 
Fair Value
 
March 31,
2020
 
December 31,
2019
Asset Derivatives:
 
 
 
 
 
Commodity derivatives - futures and call options (undesignated hedges):
 
 
 
 
 
Gross amount of recognized assets
Current Assets - Other
 
$
1,303

 
$
207

Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other
 
(1,303
)
 
(207
)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

Natural Gas Swap (undesignated hedge)
Current Assets - Other
 
511

 
1,382

Commodity derivatives - futures and call options (designated hedges):
 
 
 
 
 
Gross amount of recognized assets
Current Assets - Other
 
$
298

 
$
4

Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other
 
(298
)
 
(4
)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

Liability Derivatives:
 
 
 
 
 
Preferred Distribution Rate Reset Election (2)
Other long-term liabilities
 
(18,970
)
 
(51,515
)
Natural Gas Swap (undesignated hedge)
Current Liabilities - Accrued Liabilities
 
(167
)
 
—

Commodity derivatives - futures and call options (undesignated hedges):
 
 
 
 
 
Gross amount of recognized liabilities
Current Assets - Other (1)
 
$
(3,601
)
 
$
(2,079
)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other (1)
 
3,446

 
1,064

Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
(155
)
 
$
(1,015
)
Commodity derivatives - futures and call options (designated hedges):
 
 
 
 
 
Gross amount of recognized liabilities
Current Assets - Other (1)
 
$
(8
)
 
$
(50
)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other (1)
 
8

 
50

Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

 (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

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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, 2020, we had a net broker receivable of approximately $1.9 million (consisting of initial margin of $1.0 million increased by $0.9 million of variation margin).  As of December 31, 2019, we had a net broker receivable of approximately $0.9 million (consisting of initial margin of $0.8 million increased by $0.1 million of variation margin).  At March 31, 2020 and December 31, 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 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 Class A Convertible Preferred Unit equal to the amount that would be payable per quarter if a 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 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 Income (Expense) in our Unaudited Condensed Consolidated Statement of Operations. At March 31, 2020, the fair value of this embedded derivative was a liability of $19.0 million. See Note 10 for additional information regarding our 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
)

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

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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, 2020 and December 31, 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
)


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
)



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, 2020.
The fair value of the embedded derivative feature is based on a valuation model that estimates the fair value of our Class A Convertible Preferred Units with and without a Rate Reset Election. This model contains inputs, including our common unit price 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. During the 2020 Quarter, we recorded an unrealized gain of $32.5 million in Other income (expense) on the Unaudited Condensed Consolidated Statements of Operations 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, 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 at December 31, 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.
    

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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.

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Table of Contents

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, 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”). Net Income Attributable to Genesis Energy, L.P. in the 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 unrealized loss of $3.0 million during the 2019 quarter recorded in other income (expense); (ii) lower general and administrative expenses of $2.3 million primarily due to the assumptions used to value our long term incentive compensation plans during the 2020 Quarter; and (iii) lower depreciation, depletion and amortization expense of $3.3 million. These increases were offset by: (i) the transaction costs and write-off of the unamortized issuance costs and discount associated with the extinguishment of our 2022 Notes of $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 associated with the tender and redemption of our 2022 Notes.
Available Cash before Reserves (as defined below in "Non-GAAP Financial Measures") to our common unitholders was $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 is inclusive of the $6.1 million cash distribution attributable to the 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 $169.3 million for the 2020 Quarter, a decrease of $4.3 million, or 2%, from the 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 2020, we declared our quarterly distribution to our common unitholders of $0.15 per unit related to the 2020 Quarter. With respect to our Class A Convertible Preferred Units, we declared a quarterly cash distribution of $0.7374 per 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, 2020 to unitholders of record at the close of business on May 1, 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

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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.



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Results of Operations
Revenues and Costs and Expenses
Our revenues for the 2020 Quarter decreased $80.1 million, or 13%, from the 2019 Quarter. In addition, our total costs and expenses as presented on the Unaudited Condensed Consolidated Statements of Operations decreased $77.2 million, or 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 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 between the 2020 Quarter and the 2019 Quarter is primarily attributable to: (i) decreases in crude oil and petroleum product prices and, to an extent, sales 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 15.8% to $46.17 per barrel in the 2020 Quarter, as compared to $54.85 per barrel in the 2019 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 continue at least for the 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 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 sulfur services business, which is one of the leading producers and marketers of NaHS in North and 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 98% of the volumes transported on our onshore crude pipelines, and refiners contract for 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

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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 2020 Quarter and the 2019 Quarter was as follows:
 
Three Months Ended March 31,
 
2020
 
2019
 
(in thousands)
Offshore pipeline transportation
$
85,246

 
$
76,390

Sodium minerals and sulfur services
36,941

 
58,639

Onshore facilities and transportation
28,099

 
25,603

Marine transportation
19,002

 
12,932

Total Segment Margin
$
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,
 
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
)
Non-cash provision for leased items no longer in use
130

 
190

Differences in timing of cash receipts for certain contractual arrangements (3)
(4,490
)
 
2,287

Loss on debt extinguishment (4)
(23,480
)
 
—

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

(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.

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(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 period and accretion on the 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,
 
2020
 
2019
 
(in thousands)
Offshore crude oil pipeline revenue, excluding non-cash revenues
$
69,581

 
$
64,194

Offshore natural gas pipeline revenue, excluding non-cash revenues
13,337

 
10,933

Offshore pipeline operating costs, excluding non-cash expenses
(17,732
)
 
(16,079
)
Distributions from equity investments (1)
20,060

 
17,342

Offshore pipeline transportation Segment Margin
$
85,246

 
$
76,390

 
 
 
 
Volumetric Data 100% basis:
 
 
 
Crude oil pipelines (average barrels/day unless otherwise noted):
 
 
 
CHOPS
242,182

 
241,754

Poseidon
279,181

 
253,469

Odyssey
149,440

 
151,877

GOPL (3)
7,249

 
8,337

Total crude oil offshore pipelines
678,052

 
655,437

 
 
 
 
Natural gas transportation volumes (MMBtus/d)
416,564

 
419,999

 
 
 
 
Volumetric Data net to our ownership interest (2):
 
 
 
Crude oil pipelines (average barrels/day unless otherwise noted):
 
 
 
CHOPS
242,182

 
241,754

Poseidon
178,676

 
162,220

Odyssey
43,338

 
44,044

GOPL (3)
7,249

 
8,337

Total crude oil offshore pipelines
471,445

 
456,355

 
 
 
 
Natural gas transportation volumes (MMBtus/d)
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 2020 and 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.


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Three Months Ended March 31, 2020 Compared with Three Months Ended March 31, 2019
Offshore pipeline transportation Segment Margin for the first three months of 2020 increased $8.9 million, or 12%, from the first three months of 2019, primarily due to higher volumes on our crude oil pipeline systems. These increased volumes are primarily the 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 SEKCO pipeline, and further downstream, our Poseidon oil pipeline system. Additionally, during the second half of 2019, we entered into agreements to move sixty thousand barrels per day on either CHOPS or Poseidon that are delivered to us by a third-party pipeline that has insufficient 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 see these increased volumes, outside of any unplanned downtime or our normal planned maintenance activities during the year, throughout 2020 as our newer projects continue to 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 both scheduled to come on-line during 2020.


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Sodium Minerals and Sulfur Services Segment
Operating results for our sodium minerals and sulfur services segment were as follows:
 
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, 2020 Compared with Three Months Ended March 31, 2019
Sodium minerals and sulfur services Segment Margin for the first three months of 2020 decreased $21.7 million, or 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 2020 Quarter due to lower demand from certain of our domestic mining and pulp and paper customers. Costs impacting the results of our sodium minerals and sulfur 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).
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 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 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

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•
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.

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Operating results from our onshore facilities and transportation segment were as follows:
 
Three Months Ended March 31,
 
2020
 
2019
 
(in thousands)
Gathering, marketing, and logistics revenue
$
135,307

 
$
191,531

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
2,238

 
2,028

Crude oil and petroleum products costs, excluding unrealized gains and losses from derivative transactions
(111,494
)
 
(167,378
)
Operating costs, excluding non-cash charges for long-term incentive compensation and other non-cash expenses
(18,493
)
 
(18,718
)
Other
680

 
1,045

Segment Margin
$
28,099

 
$
25,603

 
 
 
 
Volumetric Data (average barrels per day unless otherwise noted):
 
 
 
Onshore crude oil pipelines:
 
 
 
Texas
84,499

 
42,981

Jay
10,013

 
11,483

Mississippi
6,409

 
5,916

Louisiana (1)
162,736

 
95,824

Onshore crude oil pipelines total
263,657

 
156,204

 
 
 
 
CO2 pipeline (average Mcf/day):
 
 
 
Free State
134,834

 
105,991

 
 
 
 
Crude oil and petroleum products sales:
 
 
 
Total crude oil and petroleum products sales
26,118

 
33,752

Rail unload volumes
94,040

 
85,090

(1) Total daily volume for the three months ended March 31, 2020 include 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, 2019 includes 52,302 barrels per day of intermediate refined products associated with our Port of Baton Rouge Terminal pipelines.
Three Months Ended March 31, 2020 Compared with Three Months Ended March 31, 2019
Onshore facilities and transportation Segment Margin for the first three months of 2020 increased by $2.5 million, or 10%, 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 was negatively impacted by production curtailments imposed by the government of Alberta. These increases were partially offset by lower volumes at our Raceland rail facility during the 2020 Quarter. Due to the 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 will be below our minimum take-or-pay levels throughout the rest of 2020 and we would expect to recognize our minimum volume commitment in segment margin during the related periods.
 



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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,
 
2020
 
2019
Revenues (in thousands):
 
 
 
Inland freight revenues
$
27,572

 
$
25,126

Offshore freight revenues
21,091

 
18,300

Other rebill revenues (1)
13,683

 
13,224

Total segment revenues
$
62,346

 
$
56,650

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

 
$
43,718

 
 
 
 
Segment Margin (in thousands)
$
19,002

 
$
12,932

 
 
 
 
Fleet Utilization: (2)
 
 
 
Inland Barge Utilization
93.4
%
 
96.6
%
Offshore Barge Utilization
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, 2020 Compared with Three Months Ended March 31, 2019
Marine transportation Segment Margin for the first three months of 2020 increased $6.1 million, or 47%, from the first three months of 2019. During the 2020 Quarter, in 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 see increased day rates 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 have yet to fully recover from their cyclical lows.
Other Costs, Interest, and Income Taxes
General and administrative expenses
 
Three Months Ended March 31,
 
2020
 
2019
 
(in thousands)
General and administrative expenses not separately identified below:
 
 
 
Corporate
$
10,793

 
$
9,480

Segment
1,065

 
1,159

Long-term incentive compensation expense
(2,485
)
 
930

Third party costs related to business development activities and growth projects
—

 
117

Total general and administrative expenses
$
9,373

 
$
11,686

Total general and administrative expenses decreased by $2.3 million during the 2020 period primarily due to the effects of changes in assumptions used to value our long-term incentive compensation awards. This was partially offset by overall increases in corporate general and administrative expenses.

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Depreciation, depletion, and amortization expense
 
Three Months Ended March 31,
 
2020
 
2019
 
(in thousands)
Depreciation and depletion expense
$
70,205

 
$
72,991

Amortization expense
4,152

 
4,289

Amortization of CO2 volumetric production payments
—

 
358

Total depreciation, depletion and amortization expense
$
74,357

 
$
77,638

Three Months Ended March 31, 2020 Compared with Three Months Ended March 31, 2019
Total depreciation, depletion, and amortization expense decreased $3.3 million during the 2020 Quarter. This decrease is primarily due 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 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 new assets into service during 2019 and 2020.
Interest expense, net
 
Three Months Ended March 31,
 
2020
 
2019
 
(in thousands)
Interest expense, senior secured credit facility (including commitment fees)
$
10,745

 
$
14,158

Interest expense, senior unsecured notes
42,358

 
39,547

Amortization of debt issuance costs and discount
2,391

 
2,682

Capitalized interest
(529
)
 
(686
)
Net interest expense
$
54,965

 
$
55,701

Three Months Ended March 31, 2020 Compared with Three Months Ended March 31, 2019
Net interest expense decreased $0.7 million during the 2020 Quarter primarily due to a lower average outstanding balance and interest rate on our revolving credit facility during the period. The decline in our interest rate during the 2020 Quarter is due to the decrease in LIBOR rates during the period, which is one of the main drivers of interest expense on our credit facility. These decreases were partially offset by higher interest expense during the period on our senior unsecured notes. On January 16, 2020, we issued our $750 million 2028 Notes that accrue interest at 7.75% and we purchased and extinguished $527.9 million of our $750 million 2022 Notes that accrued interest at 6.75% on January 15, 2020 through our tender offer and 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, 2020, our balance sheet and liquidity position remained strong, including $721.5 million of remaining borrowing capacity under our $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.

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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, 2020, our long-term debt totaled approximately $3.4 billion, consisting of $977.4 million outstanding under our credit facility (including $7.7 million borrowed under the inventory sublimit tranche) and $2.5 billion of senior unsecured notes, comprising $400 million carrying amount due on May 15, 2023, $349 million carrying amount due on June 15, 2024, $550 million carrying amount due October 2025, $447 million carrying amount due May 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. 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, 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 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.

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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, 2020 and March 31, 2019.
Net cash flows provided by our operating activities for the three months ended March 31, 2020 were $89.6 million compared to $114.0 million for the three months ended March 31, 2019. This decrease is primarily attributable to transaction costs incurred during the 2020 Quarter associated with the tender and 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 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, 2020 and March 31, 2019 is as follows:
 
Three Months Ended March 31,
 
2020
 
2019
 
(in thousands)
Capital expenditures for fixed and intangible assets:
 
 
 
Maintenance capital expenditures:
 
 
 
Offshore pipeline transportation assets
$
768

 
$
433

Sodium minerals and sulfur services assets
4,575

 
8,048

Marine transportation assets
14,232

 
9,228

Onshore facilities and transportation assets
908

 
199

Information technology systems
75

 
141

Total maintenance capital expenditures
20,558

 
18,049

Growth capital expenditures:
 
 
 
Offshore pipeline transportation assets
259

 
25

Sodium minerals and sulfur services assets
10,400

 
14,658

Marine transportation assets
—

 
—

Onshore facilities and transportation assets
249

 
576

Information technology systems
1,178

 
—

Total growth capital expenditures
12,086

 
15,259

Total capital expenditures for fixed and intangible assets
32,644

 
33,308

Total capital expenditures
$
32,644

 
$
33,308


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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 2020.
Maintenance Capital Expenditures
Maintenance capital expenditures incurred during the 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 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, 2020, we will pay a distribution of $0.15 per common unit totaling $18.4 million with respect to the 2020 Quarter. Information on our recent distribution history is included in Note 10 to our Unaudited Condensed Consolidated Financial Statements.
With respect to our Class A Convertible Preferred Units, we declared a quarterly cash distribution of $0.7374 per 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, 2020 to unitholders of record at the close of business on May 1, 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.

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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.

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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,
 
2020
 
2019
 
(in thousands)
Net income attributable to Genesis Energy, L.P.
$
24,909

 
$
15,954

Income tax (benefit) expense
(365
)
 
402

Depreciation, depletion, amortization and accretion
75,978

 
79,937

Plus (minus) Select Items, net
4,806

 
12,016

Maintenance capital utilized (1)
(8,800
)
 
(6,125
)
Cash tax expense
(150
)
 
(150
)
Distributions to preferred unitholders
(18,684
)
 
(6,138
)
Redeemable noncontrolling interest redemption value adjustments (2)
4,086

 
—

Available Cash before Reserves
$
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 $18.0 million, respectively.
(2)
Includes PIK distributions attributable to the period and 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.


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Three Months Ended March 31,
 
 
2020
 
2019
 
 
(in thousands)
I.
Applicable to all Non-GAAP Measures
 
 
 
 
Differences in timing of cash receipts for certain contractual arrangements (1)
$
4,490

 
$
(2,287
)
 
Adjustment regarding direct financing leases (2)
2,238

 
2,028

 
Certain non-cash items:
 
 
 
 
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 (4)
23,480

 
—

 
Adjustment regarding equity investees (5)
6,406

 
4,828

 
Other
(2,259
)
 
2,161

 
             Sub-total Select Items, net (6)
3,353

 
10,595

II.
Applicable only to Available Cash before Reserves
 
 
 
 
Certain transaction costs (7)
—

 
117

 
Equity compensation adjustments
—

 
(137
)
 
Other
1,453

 
1,441

 
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.
(6) Represents all Select Items applicable to Segment Margin and Available Cash before Reserves.
(7) Represents transaction costs relating to certain merger, acquisition, transition, and financing transactions incurred in advance of acquisition.
(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

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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.

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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.
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, 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,

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international events, pandemics (including COVID-19), the actions of OPEC and other oil 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, processing 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 resulting from a suspension of drilling in the Gulf of Mexico or otherwise;
•
the effects of future laws and regulations;
•
planned capital expenditures and availability of capital resources to fund capital 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, 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;
•
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; and
•
a cyberattack involving our information systems and related infrastructure, or that of our business associates.

49
Table of Contents

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 . 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. 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 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 2020 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

50
Table of Contents

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, 2019. There have been no material developments in legal proceedings since the filing of such Form 10-K.
Item 1A. Risk Factors
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 and filings with the 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, 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 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 included in Exhibit 95 to this Form 10-Q.

Item 5. Other Information
None.

51
Table of Contents

Item 6. Exhibits.
(a) Exhibits

52
Table of Contents

 
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
  
 
3.3
  
 
3.4
 
 
3.5
  
 
3.6
 
 
3.7
  
 
3.8
  
 
3.9
 
 
3.10
 
 
4.1
  
 
4.2
 
*
10.1
 
*
22.1
 
*
31.1
  
*
31.2
  
*
32
  
*
95
 
 
101.INS 
  
XBRL Instance 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.
 
101.CAL 
  
XBRL Calculation Linkbase Document.
 
101.LAB 
  
XBRL Label Linkbase Document.
 
101.PRE 
  
XBRL Presentation Linkbase Document.
 
101.DEF 
  
XBRL Definition Linkbase Document.
 
104
 
Cover Page Interactive Data File (formatted as Inline XBRL).
*
Filed herewith

53
Table of Contents

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


54
 Exhibit
Execution Version



TENTH AMENDMENT

TO
FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
dated as of
March 25, 2020
among
GENESIS ENERGY, L.P.,
as the 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 Documentation Agent,

and

The Lenders Party Hereto





1

TENTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
This TENTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 25, 2020 (this “Tenth Amendment”), is by and among GENESIS ENERGY, L.P., a Delaware limited partnership (the “Borrower”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the lenders party to the Credit Agreement referred to below (the “Lenders”), and the Lenders party hereto.
RECITALS
A.    The Borrower, the Lenders party thereto, the Administrative Agent and the other agents and Issuing Banks referred to therein are parties to that certain Fourth Amended and Restated Credit Agreement, dated as of June 30, 2014, as amended by that certain First Amendment to Fourth Amended and Restated Credit Agreement, dated as of August 25, 2014, that certain Second Amendment to Fourth Amended and Restated Credit Agreement and Joinder Agreement, dated as of July 17, 2015, that certain Third Amendment to Fourth Amended and Restated Credit Agreement, dated as of September 17, 2015, that certain Fourth Amendment to Fourth Amended and Restated Credit Agreement and Joinder Agreement, dated as of April 27, 2016, that certain Fifth Amendment to Fourth Amended and Restated Credit Agreement and Second Amendment to Fourth Amended and Restated Guarantee and Collateral Agreement, dated as of May 9, 2017, that certain Sixth Amendment to Fourth Amended and Restated Credit Agreement, dated as of July 28, 2017, that certain Seventh Amendment to Fourth Amended and Restated Credit Agreement, dated as of August 28, 2018, that certain Eighth Amendment to Fourth Amended and Restated Credit Agreement, dated as of October 11, 2018, and that certain Ninth Amendment to Fourth Amended and Restated Credit Agreement and Third Amendment to Fourth Amended and Restated Guarantee and Collateral Agreement, dated as of September 23, 2019 (as so amended, the “Credit Agreement”), pursuant to which the Lenders have made certain Loans and provided certain Committed Amounts (subject to the terms and conditions thereof) to the Borrower; and
B.     The Borrower wishes, and the Lenders signatory hereto and the Administrative Agent are willing, to amend the Credit Agreement as more fully described herein.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1.
Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement. Unless otherwise indicated, all article, schedule, exhibit and section references in this Tenth Amendment refer to articles, schedules, exhibits and sections of the Tenth Amendment.
SECTION 2.    Amendments to Credit Agreement. As of the Tenth Amendment Effective Date (as defined below), the Credit Agreement is amended as follows:

1

(a)    Section 1.01 of the Credit Agreement is hereby amended by adding the following             new definition in its proper alphabetical order:
“Tenth Amendment Effective Date” means the “Tenth Amendment Effective Date” as defined in that certain Tenth Amendment to Fourth Amended and Restated Credit Agreement, dated as of March 25, 2020, among the Borrower, the Administrative Agent and the Lenders party thereto.
(b)
Section 1.01 of the Credit Agreement is hereby amended by amending and restating the definition of “LIBOR Rate” as follows:
““LIBOR Rate” means,
(a)    for any interest rate calculation with respect to a Eurodollar Loan, the rate of interest per annum determined on the basis of the rate for deposits in dollars for a period equal to the applicable Interest Period which appears on Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period. If, for any reason, such rate does not appear on Reuters Screen LIBOR01 Page (or any applicable successor page), then “LIBOR Rate” shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in dollars would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period; or
(b)    for any interest rate calculation with respect to an ABR Loan, the rate of interest per annum determined on the basis of the rate for deposits in dollars for an Interest Period equal to one month (commencing on the date of determination of such interest rate) which appears on the Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day. If, for any reason, such rate does not appear on Reuters Screen LIBOR01 Page (or any applicable successor page) then “LIBOR Rate” for such ABR Loan shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in dollars would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination;
provided that, in the case of clauses (a) and (b), if the LIBOR Rate is determined to be less than 0% per annum, “LIBOR Rate” shall be deemed to be 0% per annum for purposes of this Agreement.”
(c)
Section 5.08 of the Credit Agreement is hereby amended and restated in its entirety as follows:

2

“Use of Proceeds and Letters of Credit. The proceeds of the Loans will be used only for working capital and general partnership purposes of the Borrower and the other Borrower Parties (including for distributions to holders of Equity Interests in the Borrower to the extent permitted by Section 6.08, to make Investments to the extent permitted by Section 6.04, to purchase, repurchase or acquire for value Indebtedness to the extent permitted by Section 6.17(a)(vii), and to make Acquisitions to the extent permitted by Section 6.05). The Letters of Credit shall be used for general business purposes in the ordinary course of business. Notwithstanding anything in this Section 5.08 to the contrary, no part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulation T, Regulation U and Regulation X.”
(d)
Section 6.04(c) of the Credit Agreement is hereby amended and restated in its entirety as follows:
“(c)    (i) loans or advances made by the Borrower to any Restricted Subsidiary and by any Restricted Subsidiary to the Borrower or to any other Restricted Subsidiary and (ii) purchases, repurchases or other acquisitions for value of Indebtedness to the extent permitted by Section 6.17(a)(vii);”
(e)
Section 6.14(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:
“Senior Secured Leverage Ratio. Prior to the Investment Grade Date, the Borrower will not permit its Consolidated Senior Secured Leverage Ratio to be in excess of 3.25 to 1.00 as at the last day of each Test Period, commencing with the Test Period ending March 31, 2020.”
(f)
Section 6.17 of the Credit Agreement is hereby amended and restated in its entirety as follows:

3

“Prepayments on Indebtedness or Disqualified Equity. Prior to the Investment Grade Date, it will not and will not permit any of its Restricted Subsidiaries to, directly or indirectly, make (or give any notice in respect of) any voluntary or optional payment or prepayment on or redemption or acquisition for value of, or any prepayment on or repurchase or redemption of as a result of any asset sale, change of control or similar event, any outstanding Indebtedness or Disqualified Equity, except (a) payments, prepayments, redemptions, purchases, repurchases, or acquisitions for value of (i) the Secured Obligations, (ii) immaterial Indebtedness in the ordinary course of business, (iii) Indebtedness or Disqualified Equity issued pursuant to and in accordance with Section 6.01(A)(j) with the net cash proceeds of, or in exchange for, other Indebtedness or Disqualified Equity issued pursuant to and in accordance with Section 6.01(A)(j), (iv) Indebtedness incurred pursuant to and in accordance with Section 6.01(A)(n), (v) Indebtedness or Disqualified Equity assumed or otherwise incurred pursuant to and in accordance with Section 6.01(A)(g) with the net cash proceeds of, or in exchange for, other Indebtedness or Disqualified Equity incurred pursuant to Section 6.01(A)(j), (vi) Indebtedness issued pursuant to and in accordance with Section 6.01(A)(b) with the net cash proceeds of, or in exchange for, other Indebtedness issued as extensions, renewals, replacements or refinancings thereof pursuant to and in accordance with Section 6.01(A)(b), respectively, and (vii) on and after the Tenth Amendment Effective Date, purchases, repurchases or other acquisitions for value of unsecured Indebtedness of the Borrower permitted by, or issued pursuant to and in accordance with, Section 6.01(A)(b) or Section 6.01(A)(j); provided that, in the case of this clause (vii), (A) such purchase, repurchase or other acquisition shall be made at less than par, (B) no Default has occurred and is continuing or would result therefrom, (C) the Borrower is, on a Pro Forma Basis, in compliance with Section 6.14, (D) immediately after giving effect to such purchase, repurchase or acquisition for value, the aggregate unused Committed Amount shall not be less than 15% of the total aggregate Committed Amounts at such time and (E) the aggregate price for all such purchases, repurchases or other acquisitions of Indebtedness pursuant to this clause (vii) shall not exceed $340,000,000, and (b) notices in respect of repurchases (but not the repurchases themselves) pursuant to “change of control” or “asset sale” provisions of Indebtedness or Disqualified Equity permitted by Section 6.01(A)(j).”
SECTION 3.    Conditions to Effectiveness. This Tenth Amendment shall not become effective until the date (the “Tenth Amendment Effective Date”) on which each of the following conditions is satisfied (or waived in accordance with Section 9.02 of the Credit Agreement):
(a)
The Administrative Agent shall have received from the Required Lenders and the Borrower executed counterparts (in such number as may be requested by the Administrative Agent) of this Tenth Amendment.
(b)
The Administrative Agent, the Arrangers and the Lenders shall have received all fees and other amounts due and payable on or prior to the Tenth Amendment Effective Date, including to the extent invoiced, reimbursement or payment of all out of pocket

4

expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.
(c)
After giving effect to the Tenth Amendment, (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower shall be in compliance on a Pro Forma Basis with Section 6.14 of the Credit Agreement.
(d)
The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may reasonably request.
The Administrative Agent shall notify the Borrower and the Lenders of the Tenth Amendment Effective Date, and such notice shall be conclusive and binding.
SECTION 4.
Miscellaneous.
(a)    Confirmation. The provisions of the Loan Documents, as amended by this Tenth Amendment, shall remain in full force and effect in accordance with their terms following the effectiveness of this Tenth Amendment. The execution, delivery and effectiveness of this Tenth Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor, except as expressly provided herein, constitute a waiver or amendment of any provision of any of the Loan Documents.
(b)    Ratification and Affirmation; Representations and Warranties. Each of the undersigned does hereby adopt, ratify, and confirm the Credit Agreement and the other Loan Documents, as amended hereby, and its obligations thereunder. The Borrower hereby (i) acknowledges, renews and extends its continued liability under each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein, (ii) confirms and ratifies all of its obligations under the Loan Documents to which it is a party, including its obligations and the Liens granted by it under the Security Documents to which it is a party, (iii) confirms that all references in such Security Documents to the “Credit Agreement” (or words of similar import) refer to the Credit Agreement as amended and supplemented hereby without impairing any such obligations or Liens in any respect and (iv) represents and warrants to the Lenders that: (A) as of the date hereof, after giving effect to the terms of this Tenth Amendment, all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (except that any such representations and warranties that are modified by materiality shall be true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date (except that any such representations and warranties that are modified by materiality shall be true and correct in all respects as of such specified earlier date); and (B) as of the date hereof, after giving effect to this Tenth Amendment, no Default has occurred and is continuing.

5

(c)    Loan Document. This Tenth Amendment and each agreement, instrument, certificate or document executed by the Borrower or any other Borrower Party or any of its or their respective officers in connection therewith are “Loan Documents” as defined and described in the Credit Agreement and all of the terms and provisions of the Loan Documents relating to other Loan Documents shall apply hereto and thereto.
(d)    Counterparts. This Tenth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Tenth Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
(e)    NO ORAL AGREEMENT. THIS TENTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.
(f)    GOVERNING LAW. THIS TENTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
(g)    THE PROVISIONS OF SECTION 9.09(B) AND (C) AND SECTION 9.10 OF THE CREDIT AGREEMENT SHALL APPLY, MUTATIS MUTANDIS, TO THIS TENTH AMENDMENT.
[Remainder of page intentionally left blank]


6


IN WITNESS WHEREOF, the parties hereto have caused this Tenth Amendment to be duly executed and delivered as of the date first written above.

BORROWER:

    
 
GENESIS ENERGY, L.P.,

 
By: GENESIS ENERGY, LLC, its general partner
By:
    /s/ Robert V. Deere    
Name: Robert V. Deere
Title: Chief Financial Officer



[Signature Page – Tenth Amendment to Fourth Amended and
Restated Credit Agreement]





WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent, Issuing Bank and a Lender
 
 
By:  /s/ Andrew Ostrov                 
Name: Andrew Ostrov
Title: Director


[Signature Page – Tenth Amendment to Fourth Amended and
Restated Credit Agreement]





BMO Harris Financing, Inc.,
as a Lender
 
 
By:  /s/ Kevin Utsey                 
Name: Kevin Utsey
Title: Managing Director



[Signature Page – Tenth Amendment to Fourth Amended and
Restated Credit Agreement]

ABN AMRO Capital USA LLC,
as a Lender
 
 
By:  /s/ David Montgomery                 
Name: David Montgomery
Title: Managing Director
 
By:  /s/ Darrell Holley              
Name: Darrell Holley
Title: Managing Director
 
 


[Schedule 4]


US-DOCS\109951668.10

BNP Paribas,
as a Lender
 
 
By:  /s/ Joseph Onischuk                 
Name: Joseph Onischuk
Title: Managing Director
 
By:  /s/ Nicholas Anberree              
Name: Nicholas Anberree
Title: Vice President
 
 


[Schedule 4]


US-DOCS\109951668.10

Sumitomo Mitsui Banking Corporation,
as a Lender
 
 
By:  /s/ Michael Maguire                 
Name: Michael Maguire
Title: Managing Director


[Schedule 4]


US-DOCS\109951668.10

BANK OF AMERICA, N.A.,
as a Lender
 
 
By:  /s/ Pace Doherty                 
Name: Pace Doherty
Title: Vice President


[Schedule 4]


US-DOCS\109951668.10

Royal Bank of Canada,
as a Lender
 
 
By:  /s/ Katy Berkemeyer                 
Name: Katy Berkemeyer
Title: Authorized Signatory


[Schedule 4]


US-DOCS\109951668.10

BBVA USA,
as a Lender
 
 
By:  /s/ Mark H. Wolf                 
Name: Mark H. Wolf
Title: Senior Vice President


[Schedule 4]


US-DOCS\109951668.10

REGIONS BANK,
as a Lender
 
 
By:  /s/ David C. Valentine                 
Name: David C. Valentine
Title: Managing Director


[Schedule 4]


US-DOCS\109951668.10

Cadence Bank, N.A.,
as a Lender
 
 
By:  /s/ David Anderson                 
Name: David Anderson
Title: Senior Vice President


[Schedule 4]


US-DOCS\109951668.10

Zions Bancorporation, N.A. dba Amegy Bank,
as a Lender
 
 
By:  /s/ Sam Trail                
Name: Sam Trail
Title: Senior Vice President


[Schedule 4]


US-DOCS\109951668.10

TRUSTMARK NATIONAL BANK,
as a Lender
 
 
By:  /s/ Jeff Deutsch               
Name: Jeff Deutsch
Title: Senior Vice President


[Schedule 4]


US-DOCS\109951668.10
Exhibit
Exhibit 22.1

LIST OF ISSUERS AND GUARANTOR SUBSIDIARIES

In addition to Genesis Energy, L.P. (incorporated in Delaware), as of March 31, 2020, the following subsidiaries of Genesis Energy, L.P. guarantee the senior unsecured notes issued by Genesis Energy, L.P. This includes the 6.000% senior unsecured notes due 2023, the 5.625% senior unsecured notes due 2024, the 6.500% senior unsecured notes due 2025, the 6.250% senior unsecured notes due 2026, and the 7.750% senior unsecured notes due 2028.
ENTITY
 
JURISDICTION OF ORGANIZATION
 
GENESIS ENERGY, L.P. SENIOR UNSECURED NOTES
GENESIS ENERGY, L.P.
 
DELAWARE
 
CO-ISSUER
GENESIS ENERGY FINANCE CORPORATION
 
DELAWARE
 
CO-ISSUER
AP MARINE, LLC
 
DELAWARE
 
GUARANTOR
BR PORT SERVICES, LLC
 
DELAWARE
 
GUARANTOR
CAMERON HIGHWAY OIL PIPELINE COMPANY, LLC
 
DELAWARE
 
GUARANTOR
CAMERON HIGHWAY PIPELINE GP, L.L.C.
 
DELAWARE
 
GUARANTOR
CAMERON HIGHWAY PIPELINE I, L.P.
 
DELAWARE
 
GUARANTOR
CASPER EXPRESS PIPELINE, LLC
 
DELAWARE
 
GUARANTOR
DAVISON PETROLEUM SUPPLY, LLC
 
DELAWARE
 
GUARANTOR
DAVISON TRANSPORTATION SERVICES, INC.
 
DELAWARE
 
GUARANTOR
DAVISON TRANSPORTATION SERVICES, LLC
 
DELAWARE
 
GUARANTOR
DEEPWATER GATEWAY, L.L.C.
 
DELAWARE
 
GUARANTOR
FLEXTREND DEVELOPMENT COMPANY, L.L.C.
 
DELAWARE
 
GUARANTOR
GEL CHOPS GP, LLC
 
DELAWARE
 
GUARANTOR
GEL CHOPS I, L.P.
 
DELAWARE
 
GUARANTOR
GEL CHOPS II, L.P.
 
DELAWARE
 
GUARANTOR
GEL DEEPWATER, LLC
 
DELAWARE
 
GUARANTOR
GEL IHUB, LLC
 
DELAWARE
 
GUARANTOR
GEL LOUISIANA FUELS, LLC
 
DELAWARE
 
GUARANTOR
GEL ODYSSEY, LLC
 
DELAWARE
 
GUARANTOR
GEL OFFSHORE PIPELINE, LLC
 
DELAWARE
 
GUARANTOR
GEL OFFSHORE, LLC
 
DELAWARE
 
GUARANTOR
GEL PIPELINE OFFSHORE, LLC
 
DELAWARE
 
GUARANTOR
GEL POSEIDON, LLC
 
DELAWARE
 
GUARANTOR
GEL PALOMA, LLC
 
DELAWARE
 
GUARANTOR
GEL SEKCO, LLC
 
DELAWARE
 
GUARANTOR
GEL TEX MARKETING, LLC
 
DELAWARE
 
GUARANTOR
GEL TEXAS PIPELINE, LLC
 
DELAWARE
 
GUARANTOR
GEL WYOMING, LLC
 
DELAWARE
 
GUARANTOR
GENESIS BR, LLC
 
DELAWARE
 
GUARANTOR
GENESIS CHOPS I, LLC
 
DELAWARE
 
GUARANTOR
GENESIS CHOPS II, LLC
 
DELAWARE
 
GUARANTOR
GENESIS CRUDE OIL, L.P.
 
DELAWARE
 
GUARANTOR
GENESIS DAVISON, LLC
 
DELAWARE
 
GUARANTOR
GENESIS DEEPWATER HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
GENESIS ENERGY, LLC
 
DELAWARE
 
GUARANTOR
GENESIS FREE STATE HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
GENESIS GTM OFFSHORE OPERATING COMPANY, LLC
 
DELAWARE
 
GUARANTOR
GENESIS IHUB HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
GENESIS MARINE, LLC
 
DELAWARE
 
GUARANTOR
GENESIS NEJD HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
 
 
 
 
 


Exhibit 22.1

 
 
 
 
 
ENTITY
 
JURISDICTION OF ORGANIZATION
 
 
GENESIS ODYSSEY, LLC
 
DELAWARE
 
GUARANTOR
GENESIS OFFSHORE HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
GENESIS OFFSHORE, LLC
 
DELAWARE
 
GUARANTOR
GENESIS PIPELINE ALABAMA, LLC
 
ALABAMA
 
GUARANTOR
GENESIS PIPELINE TEXAS, L.P.
 
DELAWARE
 
GUARANTOR
GENESIS PIPELINE USA, L.P.
 
DELAWARE
 
GUARANTOR
GENESIS POSEIDON HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
GENESIS POSEIDON, LLC
 
DELAWARE
 
GUARANTOR
GENESIS RAIL SERVICES, LLC
 
DELAWARE
 
GUARANTOR
GENESIS SAILFISH HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
GENESIS SEKCO, LLC
 
DELAWARE
 
GUARANTOR
GENESIS SMR HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
GENESIS SYNGAS INVESTMENTS, L.P.
 
DELAWARE
 
GUARANTOR
GENESIS TEXAS CITY TERMINAL, LLC
 
DELAWARE
 
GUARANTOR
HIGH ISLAND OFFSHORE SYSTEM, L.L.C.
 
DELAWARE
 
GUARANTOR
MANTA RAY GATHERING COMPANY, L.L.C.
 
TEXAS
 
GUARANTOR
MATAGORDA OFFSHORE, LLC
 
TEXAS
 
GUARANTOR
MILAM SERVICES, INC.
 
DELAWARE
 
GUARANTOR
POSEIDON PIPELINE COMPANY, L.L.C.
 
DELAWARE
 
GUARANTOR
RED RIVER TERMINALS, L.L.C.
 
LOUISIANA
 
GUARANTOR
SAILFISH PIPELINE COMPANY, L.L.C.
 
DELAWARE
 
GUARANTOR
SEAHAWK SHORELINE SYSTEM, LLC
 
TEXAS
 
GUARANTOR
SOUTHEAST KEATHLEY CANYON PIPELINE COMPANY, LLC
 
DELAWARE
 
GUARANTOR
TDC SERVICES, LLC
 
DELAWARE
 
GUARANTOR
TDC, L.L.C.
 
LOUISIANA
 
GUARANTOR
TEXAS CITY CRUDE OIL TERMINAL, LLC
 
DELAWARE
 
GUARANTOR
THUNDER BASIN HOLDINGS, LLC
 
DELAWARE
 
GUARANTOR
 
 
 
 
 



Exhibit
Exhibit 31.1
CERTIFICATION
I, Grant E. Sims, certify that:
 
1.
I have reviewed this quarterly report on Form 10-Q of Genesis Energy, L.P.;

2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a.
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation, and

d.
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

a.
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date:
May 6, 2020
/s/ Grant E. Sims

 
 
Grant E. Sims
 
 
Chief Executive Officer


Exhibit
Exhibit 31.2
CERTIFICATION
I, Robert V. Deere, certify that:
 
1.
I have reviewed this quarterly report on Form 10-Q of Genesis Energy, L.P.;

2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation, and

d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors:

a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date:
May 6, 2020
/s/ Robert V. Deere

 
 
Robert V. Deere
 
 
Chief Financial Officer


Exhibit


Exhibit 32
CERTIFICATION BY CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Genesis Energy, L.P. (the “Partnership”) for the period ended March 31, 2020 (the “Report”) filed with the Securities and Exchange Commission on the date hereof, the undersigned, Grant E. Sims, Chief Executive Officer and Robert V. Deere, Chief Financial Officer of Genesis Energy, LLC, the general partner of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 
(1)
the Partnership’s Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and

 
(2)
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

May 6, 2020
/s/ Grant E. Sims

 
Grant E. Sims
 
Chief Executive Officer,
 
Genesis Energy, LLC


 
 
May 6, 2020
/s/ Robert V. Deere

 
Robert V. Deere
 
Chief Financial Officer,
 
Genesis Energy, LLC





Exhibit


Exhibit 95
MINE SAFETY DISCLOSURES

Section 1503 of the Dodd-Frank Act contains reporting requirements regarding coal or other mine safety. In conjunction with our acquisition of Tronox Limited’s (“Tronox”) (NYSE:TROX) trona and trona-based exploring, mining, processing, producing, marketing and selling business (the “Alkali Business”) on September 1, 2017, we acquired and now operate a mine at the Green River, Wyoming facility. Our mine is subject to regulation by the Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”), and is therefore subject to these reporting requirements. Presented in the table below is information regarding certain mining safety and health citations which MSHA has issued with respect to our operation as required by the Dodd-Frank Act. In evaluating this information, consideration should be given to the fact that citations and orders can be contested and appealed, and in that process, may be reduced in severity, penalty amount or sometimes dismissed (vacated) altogether.

The letters used as column headings in the table below correspond to the explanations provided underneath the table as to the information set forth in each column with respect to the numbers of violations, orders, citations or dollar amounts, as the case may be, during the first quarter 2020 unless otherwise indicated.

 
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(J)
(K)
(L)
Mine or Operating Name/
MSHA Identification Number
Section 104 S&S Citations
(#)
Section 104(b) Orders
(#)
Section 104(d)
Citations and Orders
(#)
Section 110(b)(2)
Violations
(#)
Section 107(a) Orders
(#)
Total Dollar Value of MSHA Assessment Proposed
($)
Total Number of Mining Related Fatalities
(#)
Received Notice of Pattern of Violations Under Section 104(e)
(yes/no)
Received Notice of Potential to Have Pattern Under Section 104(e)
(yes/no)
Legal Actions Pending as of Last Day of Period
(#)
Legal Actions Initiated During Period
(#)
Legal Actions Resolved During Period
(#)
Genesis-Alkali at Westvaco

MSHA I.D. No.:
48-00152
20
0
0
0
0
$26,980
0
No
No
2
0
0

(A)
The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety and health hazard under section 104 of the Mine Act for which the operator received a citation from MSHA.
(B)
The total number of orders issued under section 104(b) of the Mine Act.
(C)
The total number of citations and orders for unwarrantable failure of the operator to comply with mandatory health or safety standards under section 104(d) of the Mine Act.
(D)
The total number of flagrant violations under section 110(b)(2) of the Mine Act.
(E)
The total number of imminent danger orders issued under section 107(a) of the Mine Act.
(F)
The total dollar value of proposed assessments from the MSHA under the Mine Act. Only includes assessments proposed for citations issued in first quarter 2020.
(G)
The total number of mining related fatalities.




(H)
During the quarter ending March 31, 2020, the mine did not receive Notice of Pattern of Violations under Section 104(e)
(I)
During the quarter ending March 31, 2020, the mine did not receive Notice of a Potential to have a Pattern of Violations Under Section 104(e)
(J)
Includes all legal actions before the Federal Mine Safety and Review Commission, together with the Administrative Law Judges thereof, for our operations.
(K)
The total number of legal actions were initiated by us to contest citations, orders or proposed assessments issued by the federal Mine Safety and Health Administration during first quarter 2020.
(L)
Previously initiated legal action to contest citations, orders or proposed assessments issued by the federal Mine Safety and Health Administration, which if successful, could result in the reduction or dismissal of those citations, orders or assessments, resolved during the period.






v3.20.1
Business Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
We currently manage our businesses through four 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. 
Segment information for the periods presented below was as follows:
 
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

Capital expenditures (b)
$
458

 
$
22,706

 
$
775

 
$
9,228

 
$
33,167

Revenues:
 
 
 
 
 
 
 
 
 
External customers
$
78,317

 
$
277,349

 
$
211,025

 
$
53,318

 
620,009

Intersegment (c)
—

 
(1,863
)
 
(1,469
)
 
3,332

 
—

Total revenues of reportable segments
$
78,317

 
$
275,486

 
$
209,556

 
$
56,650

 
$
620,009


Total assets by reportable segment were as follows:
 
March 31,
2020
 
December 31,
2019
Offshore pipeline transportation
$
2,267,552

 
$
2,306,946

Sodium minerals and sulfur services
1,994,957

 
2,019,905

Onshore facilities and transportation
1,370,309

 
1,457,190

Marine transportation
761,482

 
772,383

Other assets
40,158

 
41,217

Total consolidated assets
$
6,434,458

 
$
6,597,641

 
(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 contributions to equity investees, if any.
(c)
Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
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


(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.
v3.20.1
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares
Mar. 31, 2020
Dec. 31, 2019
Common units issued (in units) 122,579,218 122,579,218
Common units outstanding (in units) 122,579,218 122,579,218
Class A Convertible Preferred Stock Units    
Number preferred units issued (in units) 25,336,778 25,336,778
Number of preferred units outstanding (in units) 25,336,778 25,336,778
Redeemable Noncontrolling Interest Preferred Units    
Number preferred units issued (in units) 130,000,000 130,000,000
Number of preferred units outstanding (in units) 130,000,000 130,000,000
v3.20.1
Lease Accounting
 3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Lease Accounting 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 Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term.
Our Right of Use Assets, net balance 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. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use. 


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 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. These revenues are recorded within its respective segment's revenues in the Unaudited Condensed Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
 
Three Months Ended
March 31,
 
2020
 
2019
M/T American Phoenix
$
6,643

 
$
6,660

Free State Pipeline
1,923

 
1,634


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, 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


The present value of our lease receivables for our direct finance lease includes a current portion of $9.5 million, which is recorded in other current assets on the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2020.
Lease Accounting 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 Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term.
Our Right of Use Assets, net balance 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. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use. 


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 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. These revenues are recorded within its respective segment's revenues in the Unaudited Condensed Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
 
Three Months Ended
March 31,
 
2020
 
2019
M/T American Phoenix
$
6,643

 
$
6,660

Free State Pipeline
1,923

 
1,634


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, 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


The present value of our lease receivables for our direct finance lease includes a current portion of $9.5 million, which is recorded in other current assets on the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2020.
v3.20.1
Intangible Assets
 3 Months Ended
Mar. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets 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



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


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
v3.20.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 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 0
Repayment of senior unsecured notes due 2022 (750,000) 0
Debt issuance costs (13,295) 0
Contributions from noncontrolling interests 1,377 610
Distributions to common unitholders (67,419) (67,419)
Distributions to preferred unitholders (18,684) 0
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
v3.20.1
Transactions with Related Parties (Tables)
 3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Schedule Of Transactions with Related Parties
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


The transactions with related parties were as follows:
 
Three Months Ended
March 31,
 
2020
 
2019
Revenues:
 
 
 
Revenues from services and fees to Poseidon(1)
$
3,147

 
$
3,165

Revenues from product sales to ANSAC
73,079

 
90,679

Costs and expenses:
 
 
 
Amounts paid to our CEO in connection with the use of his aircraft
$
165

 
$
165

Charges for services from Poseidon(1)
254

 
247

Charges for services from ANSAC
832

 
1,057

 
(1)
We own 64% interest in Poseidon
v3.20.1
Debt (Tables)
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Obligations Under Debt Arrangements
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


(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 $6.8 million and $7.6 million as of March 31, 2020 and December 31, 2019, respectively.
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Narrative) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Asset Retirement Obligations Details [Line Items]    
Asset retirement obligation balance $ 169,528 $ 175,081
Accrued Liabilities    
Asset Retirement Obligations Details [Line Items]    
Asset retirement obligation balance $ 13,800 $ 26,600
v3.20.1
Equity Investees (Schedule of Balance Sheet Information for Equity Investees) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Assets    
Current assets $ 496,880 $ 593,074
Fixed assets, net 4,256,491 4,294,475
Total assets 6,434,458 6,597,641
LIABILITIES AND CAPITAL    
Current liabilities 324,809 415,495
Total liabilities and equity 6,434,458 6,597,641
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Poseidon    
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 CAPITAL    
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
v3.20.1
Transactions with Related Parties (Schedule of Transactions with Related Parties) (Details) - Affiliated Entity - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
CEO    
Related Party Transaction [Line Items]    
Costs and expenses $ 165 $ 165
Poseidon    
Related Party Transaction [Line Items]    
Revenues 3,147 3,165
Costs and expenses $ 254 247
Equity method investment, ownership percentage 64.00%  
ANSAC    
Related Party Transaction [Line Items]    
Revenues $ 73,079 90,679
Costs and expenses $ 832 $ 1,057
v3.20.1
Fair-Value Measurements (Reconciliation of Changes in Derivatives Classified as Level 3) (Details) - Level 3
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]  
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)
v3.20.1
Derivatives (Schedule of Fair Value of Derivative Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Derivatives, Fair Value [Line Items]    
Embedded Derivative, Fair Value, Liability $ (19,000)  
Preferred Distribution Rate Reset Election | Other long-term liabilities    
Derivatives, Fair Value [Line Items]    
Embedded Derivative, Fair Value, Liability (18,970) $ (51,515)
Not qualifying or not designated as hedges under accounting rules | Commodity Derivatives | Current Assets - Other    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Fair Value, Gross Asset 1,303 207
Derivative Asset, Fair Value, Gross Liability (1,303) (207)
Derivative Asset 0 0
Derivative Liability, Fair Value, Gross Liability (3,601) (2,079)
Derivative Liability, Fair Value, Gross Asset 3,446 1,064
Derivative Liability (155) (1,015)
Not qualifying or not designated as hedges under accounting rules | Swap | Current Assets - Other    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Fair Value, Gross Asset 511 1,382
Not qualifying or not designated as hedges under accounting rules | Swap | Current Liabilities - Accrued Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liability, Fair Value, Gross Liability (167) 0
Designated as hedges under accounting rules | Commodity Derivatives | Current Assets - Other    
Derivatives, Fair Value [Line Items]    
Derivative Asset, Fair Value, Gross Asset 298 4
Derivative Asset, Fair Value, Gross Liability (298) (4)
Derivative Asset 0 0
Derivative Liability, Fair Value, Gross Liability (8) (50)
Derivative Liability, Fair Value, Gross Asset 8 50
Derivative Liability $ 0 $ 0
v3.20.1
Business Segment Information (Narrative) (Details)
 3 Months Ended
Mar. 31, 2020
segment
Segment Reporting [Abstract]  
Number of reportable segments 4
v3.20.1
Supplemental Cash Flow Information (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Supplemental Cash Flow Elements [Abstract]    
Payments of interest and commitment fees $ 33.7 $ 39.5
Interest paid, capitalized 0.5 0.7
Incurred liabilities for fixed and intangible asset additions $ 17.2 $ 13.1
v3.20.1
Lease Accounting (Maturity of Lessor Receipts) (Details)
$ in Thousands
Mar. 31, 2020
USD ($)
Direct Financing Lease  
Total Net Lease Receipts $ 9,500
Marine Transportation  
Operating Leases  
Remainder of 2020 13,394
2021 0
2022 0
2023 0
2024 0
Thereafter 0
Total Lease Receipts 13,394
Onshore Facilities & Transportation  
Operating Leases  
Remainder of 2020 900
2021 1,200
2022 1,200
2023 1,200
2024 1,200
Thereafter 4,100
Total Lease Receipts 9,800
Direct Financing Lease  
Remainder of 2020 15,501
2021 20,668
2022 20,668
2023 20,668
2024 20,668
Thereafter 72,336
Total Lease Receipts 170,509
Less: Interest (55,733)
Total Net Lease Receipts $ 114,776
v3.20.1
Revenue Recognition (Contract Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Revenue Recognition [Abstract]    
Contract Assets, Current $ 33,672 $ 21,912
Contract Assets, Non-Current 37,277 54,232
Contract Liability, Current 2,983 2,896
Contract Liabilities, Non-Current $ 22,376 $ 23,170
v3.20.1
Net Income (Loss) Per Common Unit (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Earnings Per Share Reconciliation [Abstract]    
Net Income (loss) 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 (in shares) 122,579,000 122,579,000
Basic and Diluted Net Loss per Common Unit (in dollars per unit) $ 0.05 $ (0.02)
Class A Convertible Preferred Stock Units    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Antidilutive securities not included in computation of dilutive earnings (in shares) 25,336,778  
v3.20.1
Debt (Schedule of Obligations Under Debt Arrangements) (Details) - USD ($)
Mar. 31, 2020
Jan. 16, 2020
Dec. 31, 2019
Jul. 23, 2015
Debt Instrument [Line Items]        
Senior secured credit facility $ 977,400,000   $ 959,300,000  
Unamortized debt issuance expense and discounts (premiums) 32,629,000   30,063,000  
Senior unsecured notes, net of debt issuance costs 2,463,171,000   2,469,937,000  
Total long-term debt, principal 3,473,200,000   3,459,300,000  
Total long-term debt $ 3,440,571,000   $ 3,429,237,000  
6.750% senior unsecured notes due 2022        
Debt Instrument [Line Items]        
Senior unsecured notes, stated rate 6.75%   6.75% 6.75%
Principal $ 0   $ 750,000,000  
Unamortized debt issuance expense and discounts (premiums) 0   9,349,000  
Senior unsecured notes, net of debt issuance costs $ 0   $ 740,651,000  
6.000% senior unsecured notes due 2023        
Debt Instrument [Line Items]        
Senior unsecured notes, stated rate 6.00%   6.00%  
Principal $ 400,000,000   $ 400,000,000  
Unamortized debt issuance expense and discounts (premiums) 3,290,000   3,557,000  
Senior unsecured notes, net of debt issuance costs $ 396,710,000   $ 396,443,000  
5.625% senior unsecured notes due 2024        
Debt Instrument [Line Items]        
Senior unsecured notes, stated rate 5.625%   5.625%  
Principal $ 349,200,000   $ 350,000,000  
Unamortized debt issuance expense and discounts (premiums) 3,699,000   3,923,000  
Senior unsecured notes, net of debt issuance costs $ 345,501,000   $ 346,077,000  
6.500% senior unsecured notes due 2025        
Debt Instrument [Line Items]        
Senior unsecured notes, stated rate 6.50%   6.50%  
Principal $ 550,000,000   $ 550,000,000  
Unamortized debt issuance expense and discounts (premiums) 6,715,000   7,020,000  
Senior unsecured notes, net of debt issuance costs $ 543,285,000   $ 542,980,000  
6.250% senior unsecured notes due 2026        
Debt Instrument [Line Items]        
Senior unsecured notes, stated rate 6.25%   6.25%  
Principal $ 446,600,000   $ 450,000,000  
Unamortized debt issuance expense and discounts (premiums) 5,970,000   6,214,000  
Senior unsecured notes, net of debt issuance costs $ 440,630,000   $ 443,786,000  
7.75% senior unsecured notes        
Debt Instrument [Line Items]        
Senior unsecured notes, stated rate 7.75% 7.75% 7.75%  
Principal $ 750,000,000 $ 750,000,000.0 $ 0  
Unamortized debt issuance expense and discounts (premiums) 12,955,000   0  
Senior unsecured notes, net of debt issuance costs 737,045,000   0  
Senior Secured Credit Facility        
Debt Instrument [Line Items]        
Unamortized debt issuance expense and discounts (premiums) 6,800,000   7,600,000  
Line of Credit        
Debt Instrument [Line Items]        
Unamortized debt issuance expense and discounts (premiums) $ 0   $ 0  
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions (Distributions Paid-in-kind) (Details) - Class A Convertible Preferred Stock Units
$ in Thousands
May 15, 2019
USD ($)
shares
Temporary Equity [Line Items]  
Date Issued May 15, 2019
Number of Units (in units) | shares 364,180
Total Amount | $ $ 12,277
v3.20.1
Fair-Value Measurements
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair-Value Measurements 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
(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, 2020 and December 31, 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
)


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
)



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, 2020.
The fair value of the embedded derivative feature is based on a valuation model that estimates the fair value of our Class A Convertible Preferred Units with and without a Rate Reset Election. This model contains inputs, including our common unit price 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. During the 2020 Quarter, we recorded an unrealized gain of $32.5 million in Other income (expense) on the Unaudited Condensed Consolidated Statements of Operations 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, 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 at December 31, 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.
v3.20.1
Lease Accounting (Tables)
 3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Schedule of Lease Revenues for Operating Leases Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
 
Three Months Ended
March 31,
 
2020
 
2019
M/T American Phoenix
$
6,643

 
$
6,660

Free State Pipeline
1,923

 
1,634
Schedule of Fixed Operating Lease Payments to be Received by Lessor Arrangement
The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 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
Schedule of Fixed Direct Lease Payments to be Received by Lessor Arrangement
The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 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
v3.20.1
Inventories (Major Components of Inventories) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
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
v3.20.1
Revenue Recognition (Revenue Expected to be Recognized in Future Periods) (Details)
$ in Thousands
Mar. 31, 2020
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Offshore Pipeline Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 54,873
Revenue expected timing of satisfaction period 9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Onshore Facilities & Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 43,220
Revenue expected timing of satisfaction period 9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Offshore Pipeline Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 58,623
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Onshore Facilities & Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 20,269
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Offshore Pipeline Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 69,134
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Onshore Facilities & Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 4,283
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Offshore Pipeline Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 58,540
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Onshore Facilities & Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 0
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Offshore Pipeline Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 52,812
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Onshore Facilities & Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 0
Revenue expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Offshore Pipeline Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 154,899
Revenue expected timing of satisfaction period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Onshore Facilities & Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 0
Revenue expected timing of satisfaction period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Offshore Pipeline Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 448,881
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Onshore Facilities & Transportation  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized in future periods $ 67,772
v3.20.1
Intangible Assets (Schedule of Current and Future Amortization Expense) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Amortization of intangible assets $ 4,116 $ 4,289
Remainder of 2020 11,563  
2021 10,576  
2022 10,416  
2023 10,147  
2024 $ 9,823  
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Temporary Equity [Line Items]      
Common units outstanding (in units) 122,579,218   122,579,218
Preferred units, accumulated distributions $ 18,684 $ 18,415  
Common Class A | Partners’ Capital      
Temporary Equity [Line Items]      
Common units outstanding (in units) 122,539,221    
Common Class B | Partners’ Capital      
Temporary Equity [Line Items]      
Common units outstanding (in units) 39,997    
Class A Convertible Preferred Stock Units      
Temporary Equity [Line Items]      
Number of preferred units outstanding (in units) 25,336,778   25,336,778
Preferred units, accumulated distributions $ 18,700 $ 18,400  
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions (Changes in Redeemable Noncontrolling Interests) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
Redeemable Noncontrolling Interest, Equity [Roll Forward]  
Balance as of December 31, 2019 $ 125,133
PIK distributions 3,294
Redemption accretion 792
Balance as of March 31, 2020 $ 129,219
v3.20.1
Derivatives
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives 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 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 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.
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, 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


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.
The following tables reflect the estimated fair value gain (loss) position of our derivatives at March 31, 2020 and December 31, 2019:
Fair Value of Derivative Assets and Liabilities
 
 
Unaudited Condensed Consolidated Balance Sheets Location
 
Fair Value
 
March 31,
2020
 
December 31,
2019
Asset Derivatives:
 
 
 
 
 
Commodity derivatives - futures and call options (undesignated hedges):
 
 
 
 
 
Gross amount of recognized assets
Current Assets - Other
 
$
1,303

 
$
207

Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other
 
(1,303
)
 
(207
)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

Natural Gas Swap (undesignated hedge)
Current Assets - Other
 
511

 
1,382

Commodity derivatives - futures and call options (designated hedges):
 
 
 
 
 
Gross amount of recognized assets
Current Assets - Other
 
$
298

 
$
4

Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other
 
(298
)
 
(4
)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

Liability Derivatives:
 
 
 
 
 
Preferred Distribution Rate Reset Election (2)
Other long-term liabilities
 
(18,970
)
 
(51,515
)
Natural Gas Swap (undesignated hedge)
Current Liabilities - Accrued Liabilities
 
(167
)
 
—

Commodity derivatives - futures and call options (undesignated hedges):
 
 
 
 
 
Gross amount of recognized liabilities
Current Assets - Other (1)
 
$
(3,601
)
 
$
(2,079
)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other (1)
 
3,446

 
1,064

Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
(155
)
 
$
(1,015
)
Commodity derivatives - futures and call options (designated hedges):
 
 
 
 
 
Gross amount of recognized liabilities
Current Assets - Other (1)
 
$
(8
)
 
$
(50
)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other (1)
 
8

 
50

Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

 (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
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, 2020, we had a net broker receivable of approximately $1.9 million (consisting of initial margin of $1.0 million increased by $0.9 million of variation margin).  As of December 31, 2019, we had a net broker receivable of approximately $0.9 million (consisting of initial margin of $0.8 million increased by $0.1 million of variation margin).  At March 31, 2020 and December 31, 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 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 Class A Convertible Preferred Unit equal to the amount that would be payable per quarter if a 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 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 Income (Expense) in our Unaudited Condensed Consolidated Statement of Operations. At March 31, 2020, the fair value of this embedded derivative was a liability of $19.0 million. See Note 10 for additional information regarding our 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
)
v3.20.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2020
Revenue Recognition [Abstract]  
Schedule of Disaggregation of Revenue
The following tables reflect the disaggregation of our revenues by major category for the three months ended March 31, 2020 and 2019, respectively:
 
Three Months Ended
March 31, 2020
 
Offshore Pipeline Transportation
 
Sodium Minerals & Sulfur Services
 
Marine Transportation
 
Onshore Facilities and Transportation
 
Consolidated
Fee-based revenues
$
78,429

 
$
—

 
$
62,346

 
$
40,990

 
$
181,765

Product Sales
—

 
215,366

 
—

 
114,768

 
330,134

Refinery Services
—

 
28,024

 
—

 
—

 
28,024

 
$
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
Schedule of Contract Asset and Liabilities Balances Activity
The table below depicts our contract asset and liability balances at December 31, 2019 and March 31, 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
Schedule of Revenue Expected to be Recognized in 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
v3.20.1
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
CURRENT ASSETS:    
Cash and cash equivalents $ 18,137 $ 29,128
Restricted cash 23,372 27,277
Accounts receivable - trade, net 315,645 417,002
Inventories 70,161 65,137
Other 69,565 54,530
Total current assets 496,880 593,074
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
MINERAL LEASEHOLDS, net of accumulated depletion 554,862 555,825
NET INVESTMENT IN DIRECT FINANCING LEASES, net of unearned income 105,251 107,702
EQUITY INVESTEES 327,942 334,523
INTANGIBLE ASSETS, net of amortization 136,071 138,927
GOODWILL 301,959 301,959
RIGHT OF USE ASSETS, net 175,889 177,071
OTHER ASSETS, net of amortization 79,113 94,085
TOTAL ASSETS 6,434,458 6,597,641
CURRENT LIABILITIES:    
Accounts payable - trade 151,868 218,737
Accrued liabilities 172,941 196,758
Total current liabilities 324,809 415,495
SENIOR SECURED CREDIT FACILITY 977,400 959,300
SENIOR UNSECURED NOTES, net of debt issuance costs 2,463,171 2,469,937
DEFERRED TAX LIABILITIES 12,125 12,640
OTHER LONG-TERM LIABILITIES 366,281 393,850
Total liabilities 4,143,786 4,251,222
MEZZANINE CAPITAL:    
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, 2020 and December 31, 2019 1,382,126 1,443,320
Accumulated other comprehensive loss (8,431) (8,431)
Noncontrolling interests (2,357) (3,718)
Total partners' capital 1,371,338 1,431,171
TOTAL LIABILITIES, MEZZANINE CAPITAL AND PARTNERS’ CAPITAL $ 6,434,458 $ 6,597,641
v3.20.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2020
Revenue Recognition [Abstract]  
Revenue Recognition 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, 2020 and 2019, respectively:
 
Three Months Ended
March 31, 2020
 
Offshore Pipeline Transportation
 
Sodium Minerals & Sulfur Services
 
Marine Transportation
 
Onshore Facilities and Transportation
 
Consolidated
Fee-based revenues
$
78,429

 
$
—

 
$
62,346

 
$
40,990

 
$
181,765

Product Sales
—

 
215,366

 
—

 
114,768

 
330,134

Refinery Services
—

 
28,024

 
—

 
—

 
28,024

 
$
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



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.

Contract Assets and Liabilities
The table below depicts our contract asset and liability balances at December 31, 2019 and March 31, 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




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, 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.

The majority of our contracts qualify for one of these expedients or exemptions. For the remaining contract types that involve revenue recognition over a long-term period with long-term fixed consideration (adjusted for indexing as required), we determined our allocations of transaction price that relate to unsatisfied performance obligations. 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 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
v3.20.1
Equity Investees
 3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Equity Investees 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, 2020 and December 31, 2019, the unamortized excess cost amounts totaled $347.0 million and $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



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



 
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




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 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.
v3.20.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL - USD ($)
shares in Thousands, $ in Thousands
Total
Partners’ Capital
Partners’ Capital
Common Units
Noncontrolling Interest
Accumulated Other Comprehensive Loss
Partners' capital, beginning balance (units) at Dec. 31, 2018     122,579    
Partners' capital, beginning balance at Dec. 31, 2018 $ 1,680,534 $ 1,690,799   $ (11,204) $ 939
Increase (Decrease) in Partners' Capital [Roll Forward]          
Net income (loss) 15,947 15,954   (7)  
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, ending balance (units) at Mar. 31, 2019     122,579    
Partners' capital, ending balance at Mar. 31, 2019 1,611,652 1,621,314   (10,601) 939
Partners' capital, beginning balance (units) at Dec. 31, 2019     122,579    
Partners' capital, beginning balance at Dec. 31, 2019 1,431,171 1,443,320   (3,718) (8,431)
Increase (Decrease) in Partners' Capital [Roll Forward]          
Net income (loss) 24,893 24,909   (16)  
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, ending balance (units) at Mar. 31, 2020     122,579    
Partners' capital, ending balance at Mar. 31, 2020 $ 1,371,338 $ 1,382,126   $ (2,357) $ (8,431)
v3.20.1
Net Income (Loss) Per Common Unit
 3 Months Ended
Mar. 31, 2020
Net Income per Common Unit [Abstract]  
Net Income (Loss) Per Common Unit 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 Class A Convertible Preferred Units is calculated using the if-converted method. Under the if-converted method, 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, 2020, the effect of the assumed conversion of the 25,336,778 Class A Convertible Preferred Units was anti-dilutive and was not included in the computation of diluted earnings per unit.
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
)
 
 
 
 
v3.20.1
Supplemental Cash Flow Information (Tables)
 3 Months Ended
Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]  
Net Changes In Components of Operating Assets and Liabilities
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
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions (Tables)
 3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Schedule of Paid Distributions
We paid or will pay the following cash distributions to our Class A Convertible Preferred unitholders in 2019 and 2020:
Distribution For
 
Date Paid
 
Per Unit
Amount
 
Total
Amount
2019
 
 
 
 
 
 
1st Quarter
 
May 15, 2019
 
$
0.2458

 
$
6,138

2nd Quarter
 
August 14, 2019
 
$
0.7374

 
$
18,684

3rd Quarter
 
November 14, 2019
 
$
0.7374

 
$
18,684

4th Quarter
 
February 14, 2020
 
$
0.7374

 
$
18,684

2020
 
 
 
 
 
 
1st Quarter
 
May 15, 2020
(1) 
$
0.7374

 
$
18,684


(1) This distribution was declared on April 8, 2020 and will be paid to unitholders of record as of May 1, 2020.
We paid or will pay the following distributions to our common unitholders in 2019 and 2020:
Distribution For
 
Date Paid
 
Per Unit
Amount
 
Total
Amount
 
2019
 
 
 
 
 
 
 
1st Quarter
 
May 15, 2019
 
$
0.5500

 
$
67,419

 
2nd Quarter
 
August 14, 2019
 
$
0.5500

 
$
67,419

 
3rd Quarter
 
November 14, 2019
 
$
0.5500

 
$
67,419

 
4th Quarter
 
February 14, 2020
 
$
0.5500

 
$
67,419

 
2020
 
 
 
 
 
 
 
1st Quarter
 
May 15, 2020
(1) 
$
0.1500

 
$
18,387

 
(1) This distribution was declared on April 8, 2020 and will be paid to unitholders of record as of May 1, 2020.
Schedule of Paid-in-Kind Distributions
Class A Convertible Preferred 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
 
 
 
 
 
 
1st 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.
Schedule of Changes in Redeemable Noncontrolling Interest he following table shows the change in our redeemable noncontrolling interest balance from December 31, 2019 to March 31, 2020:
Balance as of December 31, 2019
 
$
125,133

PIK distributions
 
3,294

Redemption accretion
 
792

Balance as of March 31, 2020
 
$
129,219
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Asset Retirement Obligation Rollforward) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
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
v3.20.1
Equity Investees (Consolidated Financial Statements Related to Equity Investees) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]    
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
v3.20.1
Derivatives (Schedule of Outstanding Derivatives Entered Into to Hedge Inventory or Fixed Price Purchase Commitments) (Details)
bbl in Thousands, MMBTU in Thousands
 3 Months Ended
Mar. 31, 2020
MMBTU
$ / MMBTU
$ / units
$ / bbl
bbl
Designated as hedges under accounting rules | Sell (Short) Contracts | Future | Crude Oil  
Derivative [Line Items]  
Contract volumes (bbls/gal) | bbl 19
Weighted average contract price 37.01
Designated as hedges under accounting rules | Buy (Long) Contracts | Future | Crude Oil  
Derivative [Line Items]  
Contract volumes (bbls/gal) | bbl 0
Weighted average contract price 0
Not qualifying or not designated as hedges under accounting rules | Sell (Short) Contracts | Future | Crude Oil  
Derivative [Line Items]  
Contract volumes (bbls/gal) | bbl 248
Weighted average contract price 28.54
Not qualifying or not designated as hedges under accounting rules | Sell (Short) Contracts | Future | Natural Gas  
Derivative [Line Items]  
Contract volume (MMBTU) | MMBTU 90
Weighted average contract price | $ / MMBTU 1.72
Not qualifying or not designated as hedges under accounting rules | Sell (Short) Contracts | Swap | Natural Gas  
Derivative [Line Items]  
Contract volume (MMBTU) | MMBTU 503
Weighted average contract price 0.37
Not qualifying or not designated as hedges under accounting rules | Sell (Short) Contracts | Options | Crude Oil  
Derivative [Line Items]  
Contract volumes (bbls/gal) | bbl 55
Weighted average premium received/paid 3.71
Not qualifying or not designated as hedges under accounting rules | Buy (Long) Contracts | Future | Crude Oil  
Derivative [Line Items]  
Contract volumes (bbls/gal) | bbl 217
Weighted average contract price 27.89
Not qualifying or not designated as hedges under accounting rules | Buy (Long) Contracts | Future | Natural Gas  
Derivative [Line Items]  
Contract volume (MMBTU) | MMBTU 545
Weighted average contract price | $ / MMBTU 2.43
Not qualifying or not designated as hedges under accounting rules | Buy (Long) Contracts | Swap | Natural Gas  
Derivative [Line Items]  
Contract volume (MMBTU) | MMBTU 0
Weighted average contract price | $ / units 0
Not qualifying or not designated as hedges under accounting rules | Buy (Long) Contracts | Options | Crude Oil  
Derivative [Line Items]  
Contract volumes (bbls/gal) | bbl 10
Weighted average premium received/paid 9.52
v3.20.1
Transactions with Related Parties (Narrative) (Details) - Affiliated Entity - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Poseidon      
Related Party Transaction [Line Items]      
Due from related parties $ 1,700   $ 2,400
Related party transaction, revenues 3,147 $ 3,165  
Related party transaction, costs and expenses 254 247  
Poseidon | Asset Management Arrangement      
Related Party Transaction [Line Items]      
Related party transaction, revenues 2,300 2,200  
ANSAC      
Related Party Transaction [Line Items]      
Due from related parties 66,256   $ 68,075
Related party transaction, revenues 73,079 90,679  
Related party transaction, costs and expenses $ 832 $ 1,057  
v3.20.1
Fair-Value Measurements (Narrative) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Unrealized gain from valuation of derivatives $ 31,118 $ (5,666)  
Senior unsecured notes, net of debt issuance costs 2,463,171   $ 2,469,937
Fair value of senior unsecured notes 1,800,000   $ 2,500,000
Embedded Derivative Financial Instruments      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Unrealized gain from valuation of derivatives $ 32,500 $ 3,000  
Equity Volatility      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Embedded derivative liability, measurement input 0.50    
v3.20.1
Derivatives (Narrative) (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]      
Net broker receivable $ 1.9 $ 0.9  
Initial margin 1.0 0.8  
Increase in margin deposits outstanding 0.9 $ 0.1  
Derivatives, Fair Value [Line Items]      
Embedded derivative liability $ 19.0    
Forecast | Class A Convertible Preferred Stock Units      
Derivatives, Fair Value [Line Items]      
Stock reset rate percentage     10.75%
Percentage below issue price per share     110.00%
LIBOR | Forecast | Class A Convertible Preferred Stock Units      
Derivatives, Fair Value [Line Items]      
Basis spread on variable rate over stock price     7.50
v3.20.1
Business Segment Information (Schedule of Segment Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Segment Reporting Information [Line Items]    
Segment margin $ 169,288 $ 173,564
Total revenues 539,923 620,009
Offshore Pipeline Transportation    
Segment Reporting Information [Line Items]    
Total revenues 78,429 78,317
Sodium Minerals & Sulfur Services    
Segment Reporting Information [Line Items]    
Total revenues 243,390 275,486
Onshore Facilities & Transportation    
Segment Reporting Information [Line Items]    
Total revenues 155,758 209,556
Marine Transportation    
Segment Reporting Information [Line Items]    
Total revenues 62,346 56,650
Operating Segments    
Segment Reporting Information [Line Items]    
Segment margin 169,288 173,564
Capital expenditures 31,391 33,167
Total revenues 539,923 620,009
Operating Segments | Offshore Pipeline Transportation    
Segment Reporting Information [Line Items]    
Segment margin 85,246 76,390
Capital expenditures 1,027 458
Total revenues 78,429 78,317
Operating Segments | Sodium Minerals & Sulfur Services    
Segment Reporting Information [Line Items]    
Segment margin 36,941 58,639
Capital expenditures 14,975 22,706
Total revenues 245,535 277,349
Operating Segments | Onshore Facilities & Transportation    
Segment Reporting Information [Line Items]    
Segment margin 28,099 25,603
Capital expenditures 1,157 775
Total revenues 156,799 211,025
Operating Segments | Marine Transportation    
Segment Reporting Information [Line Items]    
Segment margin 19,002 12,932
Capital expenditures 14,232 9,228
Total revenues 59,160 53,318
Intersegment    
Segment Reporting Information [Line Items]    
Total revenues 0 0
Intersegment | Offshore Pipeline Transportation    
Segment Reporting Information [Line Items]    
Total revenues 0 0
Intersegment | Sodium Minerals & Sulfur Services    
Segment Reporting Information [Line Items]    
Total revenues (2,145) (1,863)
Intersegment | Onshore Facilities & Transportation    
Segment Reporting Information [Line Items]    
Total revenues (1,041) (1,469)
Intersegment | Marine Transportation    
Segment Reporting Information [Line Items]    
Total revenues $ 3,186 $ 3,332
v3.20.1
Debt (Narrative) (Details)
 3 Months Ended
Mar. 25, 2020
Feb. 16, 2020
USD ($)
Jan. 16, 2020
USD ($)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Jul. 23, 2015
Debt Instrument [Line Items]              
Loss on extinguishment of debt       $ 23,480,000 $ 0    
Minimum              
Debt Instrument [Line Items]              
Letter of credit, fee percentage       1.50%      
Maximum              
Debt Instrument [Line Items]              
Letter of credit, fee percentage       3.00%      
Amended Facility | Accordion Feature              
Debt Instrument [Line Items]              
Line of credit facility aggregate maximum borrowing capacity       $ 2,000,000,000.0      
Senior Secured Credit Facility              
Debt Instrument [Line Items]              
Line of credit, unused capacity commitment fee percentage       0.50%      
Credit facility, amount outstanding       $ 977,400,000      
Total amount available for borrowings under credit facility       721,500,000      
Senior Secured Credit Facility | Petroleum Products              
Debt Instrument [Line Items]              
Credit facility, amount outstanding       $ 7,700,000      
Senior Secured Credit Facility | Minimum              
Debt Instrument [Line Items]              
Line of credit, unused capacity commitment fee percentage       0.25%      
Debt instrument covenant, requirement senior secured leverage ratio 1.00            
Senior Secured Credit Facility | Maximum              
Debt Instrument [Line Items]              
Line of credit, unused capacity commitment fee percentage       0.50%      
Debt instrument covenant, requirement senior secured leverage ratio 3.25            
Senior Secured Credit Facility | Letters Of Credit              
Debt Instrument [Line Items]              
Letter of credit, fee percentage       2.75%      
Letters of credit, outstanding amount       $ 1,100,000      
Senior Secured Credit Facility | Letters Of Credit | Maximum              
Debt Instrument [Line Items]              
Letters of credit, outstanding amount       100,000,000.0      
Senior Secured Credit Facility | Amended Facility              
Debt Instrument [Line Items]              
Credit facility, maximum borrowing capacity       1,700,000,000      
Senior Secured Credit Facility | Amended Facility | Accordion Feature              
Debt Instrument [Line Items]              
Credit facility, maximum borrowing capacity       $ 300,000,000.0      
Federal Funds Effective Rate              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate       0.50%      
Federal Funds Effective Rate | Maximum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate       1.00%      
LIBOR Rate | Maximum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate       1.00%      
Eurodollar Rate              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate       2.75%      
Eurodollar Rate | Minimum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate       1.50%      
Eurodollar Rate | Maximum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate       3.00%      
Alternate Base Rate | Minimum              
Debt Instrument [Line Items]              
Letter of credit, fee percentage       0.50%      
Alternate Base Rate | Maximum              
Debt Instrument [Line Items]              
Letter of credit, fee percentage       2.00%      
Applicable Margin              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate       1.75%      
2028 Notes              
Debt Instrument [Line Items]              
Debt issued     $ 750,000,000.0 $ 750,000,000   $ 0  
Senior unsecured notes, stated rate     7.75% 7.75%   7.75%  
Proceeds from issuance of debt     $ 736,700,000        
2022 Notes              
Debt Instrument [Line Items]              
Debt issued       $ 0   $ 750,000,000  
Senior unsecured notes, stated rate       6.75%   6.75% 6.75%
Proceeds used to repay unsecured debt principal   $ 222,100,000 $ 527,900,000        
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions (Preferred Cash Distributions Paid) (Details) - Preferred Unitholders - Class A Convertible Preferred Stock Units - USD ($)
$ / shares in Units, $ in Thousands
May 15, 2020
Feb. 14, 2020
Nov. 14, 2019
Aug. 14, 2019
May 15, 2019
Temporary Equity [Line Items]          
Date Paid   Feb. 14, 2020 Nov. 14, 2019 Aug. 14, 2019 May 15, 2019
Per Unit Amount (in dollars per unit)   $ 0.7374 $ 0.7374 $ 0.7374 $ 0.2458
Total Amount   $ 18,684 $ 18,684 $ 18,684 $ 6,138
Forecast | Subsequent Event          
Temporary Equity [Line Items]          
Date Paid May 15, 2020        
Per Unit Amount (in dollars per unit) $ 0.7374        
Total Amount $ 18,684        
v3.20.1
Lease Accounting (Narrative) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
Lessor, Lease, Description [Line Items]  
Fixed quarterly payments to be received under finance lease arrangement $ 5,200
Interest rate under finance lessor arrangement 10.25%
Fair value of direct finance lease, current $ 9,500
Onshore Facilities & Transportation  
Lessor, Lease, Description [Line Items]  
Fair value of direct finance lease, current $ 114,776
v3.20.1
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Disaggregation of Revenue [Line Items]    
Total revenues $ 539,923 $ 620,009
Fee-based revenues    
Disaggregation of Revenue [Line Items]    
Total revenues 181,765 172,979
Product Sales    
Disaggregation of Revenue [Line Items]    
Total revenues 330,134 429,387
Refinery Services    
Disaggregation of Revenue [Line Items]    
Total revenues 28,024 17,643
Offshore Pipeline Transportation    
Disaggregation of Revenue [Line Items]    
Total revenues 78,429 78,317
Offshore Pipeline Transportation | Fee-based revenues    
Disaggregation of Revenue [Line Items]    
Total revenues 78,429 78,317
Offshore Pipeline Transportation | Product Sales    
Disaggregation of Revenue [Line Items]    
Total revenues 0 0
Offshore Pipeline Transportation | Refinery Services    
Disaggregation of Revenue [Line Items]    
Total revenues 0 0
Sodium Minerals & Sulfur Services    
Disaggregation of Revenue [Line Items]    
Total revenues 243,390 275,486
Sodium Minerals & Sulfur Services | Fee-based revenues    
Disaggregation of Revenue [Line Items]    
Total revenues 0 0
Sodium Minerals & Sulfur Services | Product Sales    
Disaggregation of Revenue [Line Items]    
Total revenues 215,366 257,843
Sodium Minerals & Sulfur Services | Refinery Services    
Disaggregation of Revenue [Line Items]    
Total revenues 28,024 17,643
Marine Transportation    
Disaggregation of Revenue [Line Items]    
Total revenues 62,346 56,650
Marine Transportation | Fee-based revenues    
Disaggregation of Revenue [Line Items]    
Total revenues 62,346 56,650
Marine Transportation | Product Sales    
Disaggregation of Revenue [Line Items]    
Total revenues 0 0
Marine Transportation | Refinery Services    
Disaggregation of Revenue [Line Items]    
Total revenues 0 0
Onshore Facilities & Transportation    
Disaggregation of Revenue [Line Items]    
Total revenues 155,758 209,556
Onshore Facilities & Transportation | Fee-based revenues    
Disaggregation of Revenue [Line Items]    
Total revenues 40,990 38,012
Onshore Facilities & Transportation | Product Sales    
Disaggregation of Revenue [Line Items]    
Total revenues 114,768 171,544
Onshore Facilities & Transportation | Refinery Services    
Disaggregation of Revenue [Line Items]    
Total revenues $ 0 $ 0
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Fixed Assets, Net) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]    
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
Crude oil pipelines and natural gas pipelines and related assets    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 2,892,342 2,891,489
Onshore facilities, machinery, and equipment    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 641,135 640,376
Onshore facilities, machinery, and equipment | Alkali Business    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 594,263 591,547
Transportation equipment    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 19,662 19,864
Marine vessels    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 994,730 979,171
Land, buildings and improvements    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 238,992 238,451
Office equipment, furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 22,659 22,645
Construction in progress    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost 122,036 115,162
Other    
Property, Plant and Equipment [Line Items]    
Fixed assets, at cost $ 41,891 $ 41,891
v3.20.1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2020
Inventory Disclosure [Abstract]  
Schedule of Major Components of 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
v3.20.1
Transactions with Related Parties
 3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Transactions with Related Parties Transactions with Related Parties
The transactions with related parties were as follows:
 
Three Months Ended
March 31,
 
2020
 
2019
Revenues:
 
 
 
Revenues from services and fees to Poseidon(1)
$
3,147

 
$
3,165

Revenues from product sales to ANSAC
73,079

 
90,679

Costs and expenses:
 
 
 
Amounts paid to our CEO in connection with the use of his aircraft
$
165

 
$
165

Charges for services from Poseidon(1)
254

 
247

Charges for services from ANSAC
832

 
1,057

 
(1)
We own 64% interest in Poseidon

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.

Poseidon
At March 31, 2020 and December 31, 2019 Poseidon owed us $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 $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.
ANSAC is considered a variable interest entity (VIE) because we experience certain risks and rewards from our relationship with it. 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
v3.20.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies 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.
v3.20.1
Business Segment Information (Tables)
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Segment information for the periods presented below was as follows:
 
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

Capital expenditures (b)
$
458

 
$
22,706

 
$
775

 
$
9,228

 
$
33,167

Revenues:
 
 
 
 
 
 
 
 
 
External customers
$
78,317

 
$
277,349

 
$
211,025

 
$
53,318

 
620,009

Intersegment (c)
—

 
(1,863
)
 
(1,469
)
 
3,332

 
—

Total revenues of reportable segments
$
78,317

 
$
275,486

 
$
209,556

 
$
56,650

 
$
620,009


Total assets by reportable segment were as follows:
 
March 31,
2020
 
December 31,
2019
Offshore pipeline transportation
$
2,267,552

 
$
2,306,946

Sodium minerals and sulfur services
1,994,957

 
2,019,905

Onshore facilities and transportation
1,370,309

 
1,457,190

Marine transportation
761,482

 
772,383

Other assets
40,158

 
41,217

Total consolidated assets
$
6,434,458

 
$
6,597,641

 
(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 contributions to equity investees, if any.
(c)
Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated
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


(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.
v3.20.1
Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Components of 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
Schedule of Amortization Expense
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
Schedule of Expected Amortization Expense
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
v3.20.1
Fair-Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of 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, 2020 and December 31, 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
)
Schedule of Reconciliation of Changes in Fair Value of Derivatives Classified as Level 3
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
)
v3.20.1
Inventories
 3 Months Ended
Mar. 31, 2020
Inventory Disclosure [Abstract]  
Inventories 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



Inventories are valued at the lower of cost or net realizable value. The net realizable value of inventories was adjusted $3.5 million below cost as of March 31, 2020, with no such adjustment as of December 31, 2019.
v3.20.1
Debt
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Debt 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


(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 $6.8 million and $7.6 million as of March 31, 2020 and December 31, 2019, respectively.
As of March 31, 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, 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, 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, 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.

At March 31, 2020, we had $977.4 million borrowed under our $1.7 billion credit facility, with $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, 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 (the "Services Agreement").
Senior Unsecured Note Issuances, Redemption and Extinguishment
On January 16, 2020, we issued $750.0 million in aggregate principal amount of our 7.75% senior unsecured notes due February 15, 2028 (the “2028 Notes”). Interest payments are due February 1 and August 1 of each year with the initial interest payment due on August 1, 2020. That issuance generated net proceeds of $736.7 million net of issuance costs incurred. The net proceeds were used to purchase $527.9 million of our existing 6.75% senior unsecured notes due August 1, 2022 (the “2022 Notes”), including the related accrued interest and tender premium on those notes, and the remaining proceeds at the time were used to repay a portion of the borrowings outstanding under our revolving credit facility. On January 17, 2020 we called for redemption of the remaining $222.1 million of our 2022 Notes, and they were redeemed on February 16, 2020. We incurred a total loss of approximately $23.5 million relating to the extinguishment of our 2022 senior unsecured notes, inclusive of our transactions costs and the write-off of the related unamortized debt issuance costs and discount, which is recorded as "Other income (expense)" in our Unaudited Consolidated Statements of Operations for the three months ended March 31, 2020.
v3.20.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
REVENUES:    
Total revenues $ 539,923 $ 620,009
COSTS AND EXPENSES:    
General and administrative 9,373 11,686
Depreciation, depletion and amortization 74,357 77,638
Total costs and expenses 480,761 557,980
OPERATING INCOME 59,162 62,029
Equity in earnings of equity investees 14,159 12,997
Interest expense (54,965) (55,701)
Other expense 10,258 (2,976)
Income before income taxes 28,614 16,349
Income tax benefit (expense) 365 (402)
NET INCOME 28,979 15,947
Net loss attributable to noncontrolling interests 16 7
Net income attributable to redeemable noncontrolling interests (4,086) 0
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)
NET INCOME (LOSS) PER COMMON UNIT (Note 11):    
Basic and Diluted (in dollars shares) $ 0.05 $ (0.02)
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS:    
Basic and Diluted (in shares) 122,579 122,579
Offshore pipeline transportation    
REVENUES:    
Total revenues $ 78,429 $ 78,317
COSTS AND EXPENSES:    
Cost of products and services sold 18,661 18,458
Sodium minerals and sulfur services    
REVENUES:    
Total revenues 243,390 275,486
COSTS AND EXPENSES:    
Cost of products and services sold 205,233 218,708
Marine transportation    
REVENUES:    
Total revenues 62,346 56,650
COSTS AND EXPENSES:    
Cost of products and services sold 42,937 43,733
Onshore facilities and transportation    
REVENUES:    
Total revenues 155,758 209,556
Onshore facilities and transportation | Onshore facilities and transportation product costs    
COSTS AND EXPENSES:    
Cost of products and services sold 111,952 168,105
Onshore facilities and transportation | Onshore facilities and transportation operating costs    
COSTS AND EXPENSES:    
Cost of products and services sold $ 18,248 $ 19,652
v3.20.1
Organization and Basis of Presentation and Consolidation
 3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Basis of Presentation and Consolidation 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 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 (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, 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
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.
We 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 the pandemic on our results for the three months ended March 31, 2020. See further discussion on COVID-19 in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
v3.20.1
Supplemental Cash Flow Information (Net Changes in Components of Operating Assets and Liabilities) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 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
v3.20.1
Fair-Value Measurements (Placement of Assets and Liabilities Within the Fair Value Hierarchy Levels) (Details) - Recurring Fair Value Measures - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Level 1 | Commodity Derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets Fair Value $ 1,601 $ 211
Liabilities Fair Value (3,609) (2,129)
Level 1 | Preferred Distribution Rate Reset Election    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities Fair Value 0 0
Level 2 | Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets Fair Value 511 1,382
Liabilities Fair Value (167) 0
Level 2 | Preferred Distribution Rate Reset Election    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities Fair Value 0 0
Level 3 | Commodity Derivatives    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets Fair Value 0 0
Liabilities Fair Value 0 0
Level 3 | Preferred Distribution Rate Reset Election    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities Fair Value $ (18,970) $ (51,515)
v3.20.1
Business Segment Information (Reconciliation of Segment Margin to (Loss) Income from Continuing Operations) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Segment Reporting [Abstract]    
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) 0
Differences in timing of cash receipts for certain contractual arrangements (4,490) 2,287
Non-cash provision for leased items no longer in use 130 190
Redeemable noncontrolling interest redemption value adjustments (4,086) 0
Income tax benefit (expense) 365 (402)
NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P. 24,909 15,954
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Unrealized gain from valuation of derivatives 31,118 (5,666)
Embedded Derivative Financial Instruments    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Unrealized gain from valuation of derivatives $ 32,500 $ 3,000
v3.20.1
Equity Investees (Schedule of Operations for Equity Investees) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
INCOME STATEMENT DATA:    
Revenues $ 539,923 $ 620,009
Operating income 59,162 62,029
Net income 24,909 15,954
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Poseidon    
INCOME STATEMENT DATA:    
Revenues 32,892 31,052
Operating income 23,606 22,305
Net income $ 21,583 $ 19,850
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Mineral Leaseholds) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Fixed Assets And Asset Retirement Obligations [Abstract]    
Mineral leaseholds $ 566,019 $ 566,019
Less: Accumulated depletion (11,157) (10,194)
Mineral leaseholds, net of accumulated depletion $ 554,862 $ 555,825
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Forecast of Accretion Expense) (Details)
$ in Thousands
Mar. 31, 2020
USD ($)
Fixed Assets And Asset Retirement Obligations [Abstract]  
Remainder of 2020 $ 7,029
2021 9,402
2022 9,412
2023 10,075
2024 $ 10,786
v3.20.1
Derivatives (Tables)
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding Derivatives Entered Into to Hedge Inventory or Fixed Price Purchase Commitments
At March 31, 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
Schedule of Fair Value of Derivative Assets and Liabilities
The following tables reflect the estimated fair value gain (loss) position of our derivatives at March 31, 2020 and December 31, 2019:
Fair Value of Derivative Assets and Liabilities
 
 
Unaudited Condensed Consolidated Balance Sheets Location
 
Fair Value
 
March 31,
2020
 
December 31,
2019
Asset Derivatives:
 
 
 
 
 
Commodity derivatives - futures and call options (undesignated hedges):
 
 
 
 
 
Gross amount of recognized assets
Current Assets - Other
 
$
1,303

 
$
207

Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other
 
(1,303
)
 
(207
)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

Natural Gas Swap (undesignated hedge)
Current Assets - Other
 
511

 
1,382

Commodity derivatives - futures and call options (designated hedges):
 
 
 
 
 
Gross amount of recognized assets
Current Assets - Other
 
$
298

 
$
4

Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other
 
(298
)
 
(4
)
Net amount of assets presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

Liability Derivatives:
 
 
 
 
 
Preferred Distribution Rate Reset Election (2)
Other long-term liabilities
 
(18,970
)
 
(51,515
)
Natural Gas Swap (undesignated hedge)
Current Liabilities - Accrued Liabilities
 
(167
)
 
—

Commodity derivatives - futures and call options (undesignated hedges):
 
 
 
 
 
Gross amount of recognized liabilities
Current Assets - Other (1)
 
$
(3,601
)
 
$
(2,079
)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other (1)
 
3,446

 
1,064

Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
(155
)
 
$
(1,015
)
Commodity derivatives - futures and call options (designated hedges):
 
 
 
 
 
Gross amount of recognized liabilities
Current Assets - Other (1)
 
$
(8
)
 
$
(50
)
Gross amount offset in the Unaudited Condensed Consolidated Balance Sheets
Current Assets - Other (1)
 
8

 
50

Net amount of liabilities presented in the Unaudited Condensed Consolidated Balance Sheets related to commodity derivatives
 
 
$
—

 
$
—

 (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.
Schedule of Effect on Operating Results
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
)
v3.20.1
Net Income (Loss) Per Common Unit (Tables)
 3 Months Ended
Mar. 31, 2020
Net Income per Common Unit [Abstract]  
Schedule of Computation of Earnings Per Share, Basic and Diluted
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
)
 
 
 
 
v3.20.1
Equity Investees (Tables)
 3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Consolidated Financial Statements Related to Equity Investees
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
Schedule of Balance Sheet Information for Equity Investees
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
Schedule of Operations for Equity Investees
 
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
v3.20.1
Recent Accounting Developments
 3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Recent Accounting Developments Recent Accounting Developments
Recently Adopted
We have adopted guidance under ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"), as of January 1, 2020 . The standard 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 are required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. We performed an assessment at our adoption date, January 1, 2020, which consisted of reviewing current and 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 date and for the three months ended March 31, 2020.
During the first quarter of 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 early adopted the amendment and included the required summarized financial information in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
v3.20.1
Cover page - shares
 3 Months Ended
Mar. 31, 2020
May 06, 2020
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity File Number 1-12295  
Entity Registrant Name GENESIS ENERGY LP  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 76-0513049  
Entity Address, Address Line One 919 Milam, Suite 2100,  
Entity Address, City or Town Houston  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 77002  
City Area Code (713)  
Local Phone Number 860-2500  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Title of 12(b) Security Common units  
Trading Symbol GEL  
Security Exchange Name NYSE  
Entity Central Index Key 0001022321  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Class A Common Units    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   122,539,221
Class B Common Units    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   39,997
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations
 3 Months Ended
Mar. 31, 2020
Fixed Assets And Asset Retirement Obligations [Abstract]  
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations 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



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



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



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, 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


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


Certain of our unconsolidated affiliates have AROs recorded at March 31, 2020 relating to contractual agreements and regulatory requirements. These amounts are immaterial to our Unaudited Condensed Consolidated Financial Statements.
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions
 3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Partners' Capital, Mezzanine Capital and Distributions Partners’ Capital, Mezzanine Capital and Distributions
At March 31, 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 2019 and 2020:
Distribution For
 
Date Paid
 
Per Unit
Amount
 
Total
Amount
 
2019
 
 
 
 
 
 
 
1st Quarter
 
May 15, 2019
 
$
0.5500

 
$
67,419

 
2nd Quarter
 
August 14, 2019
 
$
0.5500

 
$
67,419

 
3rd Quarter
 
November 14, 2019
 
$
0.5500

 
$
67,419

 
4th Quarter
 
February 14, 2020
 
$
0.5500

 
$
67,419

 
2020
 
 
 
 
 
 
 
1st Quarter
 
May 15, 2020
(1) 
$
0.1500

 
$
18,387

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


Class A Convertible Preferred Units
At March 31, 2020 we had 25,336,778 Class A Convertible Preferred Units (our "Class A Convertible Preferred Units") outstanding. Our Class 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 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 Class A Convertible Preferred Units.    
Accounting for the Class A Convertible Preferred Units
Our 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 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 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 Class A Convertible Preferred Units.
Initial and Subsequent Measurement
We initially recognized our 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 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 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.
Class A Convertible Preferred 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
 
 
 
 
 
 
1st 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 Class A Convertible Preferred Unit distributions that accumulated during the period. Net income attributable to Genesis Energy, L.P. was reduced by $18.7 million and $18.4 million for the three months ended March 31, 2020 and March 31, 2019.

We paid or will pay the following cash distributions to our Class A Convertible Preferred unitholders in 2019 and 2020:
Distribution For
 
Date Paid
 
Per Unit
Amount
 
Total
Amount
2019
 
 
 
 
 
 
1st Quarter
 
May 15, 2019
 
$
0.2458

 
$
6,138

2nd Quarter
 
August 14, 2019
 
$
0.7374

 
$
18,684

3rd Quarter
 
November 14, 2019
 
$
0.7374

 
$
18,684

4th Quarter
 
February 14, 2020
 
$
0.7374

 
$
18,684

2020
 
 
 
 
 
 
1st Quarter
 
May 15, 2020
(1) 
$
0.7374

 
$
18,684


(1) This distribution was declared on April 8, 2020 and will be paid to unitholders of record as of May 1, 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.
The following table shows the change in our redeemable noncontrolling interest balance from December 31, 2019 to March 31, 2020:
Balance as of December 31, 2019
 
$
125,133

PIK distributions
 
3,294

Redemption accretion
 
792

Balance as of March 31, 2020
 
$
129,219
v3.20.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 28,979 $ 15,947
Other comprehensive income:    
Change in benefit plan liability 0 0
Total Comprehensive income 28,979 15,947
Comprehensive loss attributable to noncontrolling interests 16 7
Comprehensive income attributable to redeemable noncontrolling interests (4,086) 0
Comprehensive income attributable to Genesis Energy, L.P. $ 24,909 $ 15,954
v3.20.1
Transactions with Related Parties (ANSAC) (Details) - ANSAC - Affiliated Entity - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]    
Receivables $ 66,256 $ 68,075
Payables $ 832 $ 2,103
v3.20.1
Derivatives (Schedule of Effect on Operating Results) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Commodity derivatives - futures and call options | Cost of Goods and Services Sold    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in Income $ (646) $ (7,434)
Preferred Distribution Rate Reset Election | Other income (expense)    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in Income 32,545 (2,976)
Contracts designated as hedges under accounting guidance | Commodity derivatives - futures and call options | Cost of Goods and Services Sold | Onshore facilities and transportation product costs    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in Income 729 (742)
Contracts not considered hedges under accounting guidance | Commodity derivatives - futures and call options | Cost of Goods and Services Sold | Onshore facilities and transportation product costs, sodium minerals and sulfur services operating costs    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in Income (1,375) (6,692)
Contracts not considered hedges under accounting guidance | Natural Gas Swap Liability | Cost of Goods and Services Sold | Sodium minerals and sulfur services operating costs    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in Income $ (432) $ 1,519
v3.20.1
Business Segment Information (Schedule of Total Assets by Reportable Segment) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]    
Total consolidated assets $ 6,434,458 $ 6,597,641
Other assets    
Segment Reporting Information [Line Items]    
Total consolidated assets 40,158 41,217
Offshore pipeline transportation | Operating Segments    
Segment Reporting Information [Line Items]    
Total consolidated assets 2,267,552 2,306,946
Sodium Minerals & Sulfur Services | Operating Segments    
Segment Reporting Information [Line Items]    
Total consolidated assets 1,994,957 2,019,905
Onshore Facilities & Transportation | Operating Segments    
Segment Reporting Information [Line Items]    
Total consolidated assets 1,370,309 1,457,190
Marine transportation | Operating Segments    
Segment Reporting Information [Line Items]    
Total consolidated assets $ 761,482 $ 772,383
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Depreciation and Depletion Expense) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Fixed Assets And Asset Retirement Obligations [Abstract]    
Depreciation expense $ 69,242 $ 71,672
Depletion expense $ 963 $ 1,319
v3.20.1
Equity Investees (Narrative) (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]    
Unamortized excess cost amount $ 347.0 $ 350.9
v3.20.1
Intangible Assets (Schedule of Components of Intangible Assets) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 221,452 $ 220,192
Accumulated Amortization 85,381 81,265
Carrying Value 136,071 138,927
Contract intangibles | Marine Transportation    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 27,800 27,800
Accumulated Amortization 24,392 23,033
Carrying Value 3,408 4,767
Contract intangibles | Offshore pipeline transportation    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 158,101 158,101
Accumulated Amortization 38,832 36,752
Carrying Value 119,269 121,349
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 35,551 34,291
Accumulated Amortization 22,157 21,480
Carrying Value $ 13,394 $ 12,811
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions (Common Cash Distributions Paid) (Details) - Common Unitholders - USD ($)
$ / shares in Units, $ in Thousands
May 15, 2020
Feb. 14, 2020
Nov. 14, 2019
Aug. 14, 2019
May 15, 2019
Partners Capital And Distributions [Line Items]          
Date Paid   Feb. 14, 2020 Nov. 14, 2019 Aug. 14, 2019 May 15, 2019
Per Unit Amount (in dollars per unit)   $ 0.5500 $ 0.5500 $ 0.5500 $ 0.5500
Total Amount   $ 67,419 $ 67,419 $ 67,419 $ 67,419
Forecast | Subsequent Event          
Partners Capital And Distributions [Line Items]          
Date Paid May 15, 2020        
Per Unit Amount (in dollars per unit) $ 0.1500        
Total Amount $ 18,387        
v3.20.1
Partners' Capital, Mezzanine Capital and Distributions (Redeemable Noncontrolling Interest - Narrative) (Details) - USD ($)
 3 Months Ended
Sep. 23, 2019
Mar. 31, 2020
Mar. 31, 2019
Redeemable Noncontrolling Interest [Line Items]      
Proceeds from redeemable noncontrolling interest   $ 122,900,000  
Redeemable noncontrolling interest redemption value adjustments   (4,086,000) $ 0
Redemption accretion of redeemable preferred noncontrolling interest   792,000  
Subsidiary | Alkali Holdings      
Redeemable Noncontrolling Interest [Line Items]      
Issuance of redeemable noncontrolling interest $ 55,000,000 130,000,000  
Facility expansion costs percentage 100.00%    
Period for occurrence of triggering events 6 years    
Redeemable noncontrolling interest redemption value adjustments   4,100,000  
Redeemable noncontrolling interest paid in-kind   3,300,000  
Redemption accretion of redeemable preferred noncontrolling interest   800,000  
Redemption value of redeemable preferred noncontrolling interest   $ 192,500,000  
Subsidiary | Alkali Holdings | Maximum      
Redeemable Noncontrolling Interest [Line Items]      
Redeemable noncontrolling interest preferred commitment $ 350,000,000    
v3.20.1
Inventories (Narrative) (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
Inventory write-down $ 3,500,000 $ 0
v3.20.1
Lease Accounting (Operating Lease Income- Lessors) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Marine Transportation    
Lessor, Lease, Description [Line Items]    
Operating lease income $ 6,643 $ 6,660
Onshore Facilities & Transportation    
Lessor, Lease, Description [Line Items]    
Operating lease income $ 1,923 $ 1,634
v3.20.1
Organization and Basis of Presentation and Consolidation (Details)
 3 Months Ended
Mar. 31, 2020
segment
Other Ownership Interests [Line Items]  
Number of reportable segments 4
Genesis Energy, LLC  
Other Ownership Interests [Line Items]  
Limited Partners' ownership percentage 100.00%
v3.20.1
Supplemental Cash Flow Information
 3 Months Ended
Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information 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


Payments of interest and commitment fees were $33.7 million and $39.5 million for the three months ended March 31, 2020 and March 31, 2019, respectively. We capitalized interest of $0.5 million and $0.7 million during the three months ended March 31, 2020 and March 31, 2019, respectively.
At March 31, 2020 and March 31, 2019, we had incurred liabilities for fixed and intangible asset additions totaling $17.2 million and $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.
v3.20.1
Recent Accounting Developments (Policies)
 3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Recently Accounting Developments Recent Accounting Developments
Recently Adopted
We have adopted guidance under ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"), as of January 1, 2020 . The standard 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 are required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. We performed an assessment at our adoption date, January 1, 2020, which consisted of reviewing current and 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 date and for the three months ended March 31, 2020.
During the first quarter of 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 early adopted the amendment and included the required summarized financial information in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
v3.20.1
Fixed Assets, Mineral Leaseholds, and Asset Retirement Obligations (Tables)
 3 Months Ended
Mar. 31, 2020
Fixed Assets And Asset Retirement Obligations [Abstract]  
Schedule of 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
Schedule of 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
Schedule of Depreciation and Depletion Expense
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
Schedule of Change in Asset Retirement Obligation
The following table presents information regarding our AROs since December 31, 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
Schedule of Forecast of Accretion Expense of Asset Retirement Obligations
With respect to our AROs, the following table presents our 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