BAML Global Energy & Power Leveraged Finance Conference June 2014
Genesis Energy, L.P. Partnership Overview Investment Highlights Master Limited Partnership (NYSE: GEL) Integrated asset portfolio creates opportunity across the crude oil production / refining value chain L.P. market capitalization…
Genesis Business Proposition Integrated asset & services portfolio creates opportunities with producers and refineries Asset / Services Integration CO2 Pipelines Producers Refinery Supply & Logistics Services Supply &…
Genesis Operational Footprint Pipeline Transportation Refinery Services Supply & Logistics 147 million (44%) 78 million (23%) 110 million (33%) Transportation & supply of crude oil and CO2, Refinery sulfur removal services and sales…
Limited Commodity Price Exposure Business Segment General Commodity Exposure Mitigant Tariff-based, fee income (except for PLA volumes) Pipeline Transportation No Direct Exposure Fixed lease payments from DNR for NEJD CO2 system…
Existing Businesses
Pipeline Transportation Onshore Stable cash flows through pipeline tariffs combined with future volume growth Provides a foothold for growth of crude oil supply and logistics segment Crude Oil Pipelines CO2 Pipelines TX System MS…
Pipeline Transportation Offshore Positioned to provide deepwater producers maximum optionality with access to both Texas & Louisiana markets Potential for meaningful volume growth with increased development drilling in dedicated,…
Pipeline Transportation Offshore Gulf of Mexico Development Provides our producer and refinery partners with an integrated midstream solution and maximum optionality Gulf of Mexico activity continues to increase from moratorium…
Refinery Services Refinery sulfur removal services and sales of by-products at 10 owned and/or operated facilities; 4 marketing agreements Owned & leased NaHS and NaOH terminals in Gulf Coast, Midwest, Montana, British Columbia, Utah…
Refinery Services Process Overview Sour Gas Processing units inside Nat Gas the fence at 10 refineries H2S NaHS Unit Gas Processing Produce NaHS through proprietary Nat Gas process utilizing large amounts of Refiners Caustic Soda…
Supply & Logistics Crude oil services and logistics, refined products services and logistics, marine transportation and rail services 135 trucks / 135 trailers in crude oil trucking fleet. Additional 150 trucks / 250 trailers in refined…
Genesis Marine Inland (Brown Water) Marine Growth: Took possession of 4 asphalt / crude capable barges in October / November 2013; received an additional 2 barges in May 2014 6 new build barges and 3 push-boats on order for delivery…
Business Objectives and Recent Developments
Business Objectives Identify and Exploit Profit Opportunities Across an Increasingly Integrated Asset Footprint Continue to Optimize Existing Asset Base and Create Synergies Evaluate Internal and 3rd Party Growth Opportunities…
Organic Capital Projects Opportunities focused on leveraging existing Genesis footprint and providing an integrated midstream solution to our producer and Capital Allocation by Segment refinery customers Project portfolio provides…
Pipeline Recent Development SEKCO Map On January 4, 2012, Genesis and Enterprise announced the formation of Southeast Keathley Eugene IslandEugene Island Canyon Pipeline Company (SEKCO), a 50/50 JV to construct a 149 mile pipeline to…
Pipeline / S&L Recent Development ExxonMobil Baton Rouge Project Genesis has entered into definitive agreements with ExxonMobil (XOM) in which Genesis improved existing assets and developed new infrastructure in Louisiana to connect…
Pipeline / S&L Recent Development Baton Rouge Terminal Project Overview Genesis has commenced steps to construct a new Pipeline from crude oil, intermediates and refined products import / Port Hudson export terminal in Baton Rouge,…
Supply & Logistics Recent Developments Rail Projects Wink Natchez Walnut Hill Genesis has completed Phase I construction Genesis has finalized construction on a crude Genesis has completed construction on a of a crude oil rail loading…
Pipeline / S&L Recent Development Raceland Rail Facility Map Raceland is being designed to handle the unloading of up to two unit trains per day (140 kbd) with two parallel Anchorage tracks capable of staging 118 cars each…
Pipeline / S&L Recent Development Wyoming Projects Map Genesis has completed construction of a unit train loading facility in the heart of the Powder River Basin (PRB) of the Niobrara shale play (Pronghorn) Site located in Converse…
Financial Summary
Financial Objectives Continue to deliver disciplined, low double-digit growth in distributions Grow our distribution coverage ratio, using excess Available Cash as equity and to pay down senior secured debt Target long-term…
Strong Balance Sheet and Credit Profile Material Project Reported LTM & Acquisitions New Senior Pro Forma LTM 3/31/2014 EBITDA Adjustment Notes Offering 3/31/2014 Senior Secured (a) 557,224 (342,000) 215,224 Senior Unsecured 700,000…
Relative Achievement of Financial Objectives Total Equity Return (8/8/2006 5/30/2014) (a) Distribution Growth (8/8/2006 5/30/2014) (a) 450 % 426% Non-Investment Grade 180 % 175% Non-Investment Grade 393% Investment Grade Investment…
Peer Comparison Analysis Current Unit Yield 10.0% 7.8% 7.6% 7.5% 8.0% 6.9% 6.6% 5.7% 5.6% 5.6% 5.5% Average: 6.0% 6.0% Average: 5.2% 4.7% 4.5% 4.5% 3.9% 3.8% 4.0% 3.0% 2.0% 0.0% MMLP APL NS RGP ETP HEP MW E BPL…
Appendix
Pro Forma Segment Margin Reconciliation ( in 000s) Pro Forma LTM 3 months Ended March 31, 3/31/2014 2014 2013 2013 2012 Segment Margin Excluding Depreciation and Amortization: Pipeline Transportation 111,775 28,092 25,196 108,879…
Available Cash Before Reserves ( in 000s) Pro Forma LTM 3 months Ended March 31, 3/31/2014 2014 2013 2013 2012 Net income 93,038 29,775 22,846 86,109 96,319 Depreciation and amortization 69,015 19,280 15,049 64,784 61,150 Cash received…
Pro Forma EBITDA Reconciliation ( in 000s) Pro Forma LTM 3 months Ended March 31, 3/31/2014 2014 2013 2013 2012 Income before income taxes from continuing operations 92,765 30,416 22,500 84,849 88,132 Depreciation and amortization 69,015…
Pro Forma Adjusted Debt Reconciliation ( in 000s) Pro Forma LTM 3/31/2014 2013 2012 Long-term debt 640,500 582,800 500,000 Senior Unsecured Notes 700,000 700,000 350,000 Adjustment for short-term hedged inventory (71,600) (80,800)…
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