2019 mlp & energy infrastructure ... - genesis energy, lp

2019 MLP & Energy Infrastructure Conference

May 2019

1

Genesis Energy, L.P. NYSE: GEL

Common Unit Market Value ~$2.7 billion(a)

Convertible Preferred Equity ~$0.8 billion(a)

Enterprise Value ~$7.0 billion(a)

Annualized Common Unit Distribution $2.20 per unit

This presentation includes forward-looking statements within the meaning of Section 21A of the Securities Act of 1933, as amended, and

Section 21E of the Exchange Act of 1934 as amended. Except for the historical information contained herein, the matters discussed in this

presentation include forward-looking statements. These forward-looking statements are based on the Partnership’s current assumptions,

expectations and projections about future events, and historical performance is not necessarily indicative of future performance. Although

Genesis believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking

statements are inherently uncertain and necessarily involve risks that may affect Genesis’ business prospects and performance, causing

actual results to differ materially from those discussed during this presentation. Genesis’ actual current and future results may be impacted

by factors beyond its control. Important risk factors that could cause actual results to differ materially from Genesis’ expectations are

discussed in Genesis’ most recently filed reports with the Securities and Exchange Commission. Genesis undertakes no obligation to

publicly update any forward-looking statements, whether as a result of new information or future events.

This presentation may include non-GAAP financial measures. Please refer to the presentations of the most directly comparable GAAP

financial measures and the reconciliations of non-GAAP financial measures to GAAP financial measures included in the end of this

presentation.

Disclosures & Company Information

Forward-Looking Statements

Investor Relations Contacts

[email protected]

(713) 860-2500

Corporate Headquarters

919 Milam Street, Suite 2100

Houston, TX 77002

(a) As of May 10, 2019.

2

Key Investment Considerations

1

2

3

4

5

Market Leading Businesses with High Barriers to Entry• Genesis is a market leader in four critical businesses

– (1) Deepwater Gulf of Mexico ("GOM") pipeline transportation, (2) Producer & marketer of U.S. natural soda ash, (3) Producer and

marketer of sodium hydrosulfide (“NaHS”) and (4) Refinery-centric onshore terminals and pipelines

• High barriers to entry including significant fixed entry cost, existing integrated asset footprint and long-term dedicated contracts

Diversified Businesses with Long-Life Infrastructure Assets• Long-life infrastructure assets that have been in continuous operations for decades

• Long-term customer relationships fostered over decades of service

Significant Operating Leverage with Minimal Capital Required• Existing asset footprint has significant upside with expected volume growth in 2019 and beyond with little to zero capital required

• Self funding 2019 expected growth capital of <$50 million

Improving Financial Fundamentals & Guidance• Strong distribution coverage ratio(a) with excess cash flow to repay credit facility or fund organic growth opportunities

• Expected EBITDA growth, along with repayments of revolver balances, leads to natural deleveraging

• Committed to long-term leverage ratio of 4.00x(a)

Unitholder Alignment with Focus on Long-Term Value Creation• No incentive distribution rights

• Management and insiders own ~11% of outstanding common units

• Track record of acquiring and developing world class assets at attractive valuations

• Culture committed to health, safety and environmental stewardship

(a) As historically calculated and presented.

3

• Practically irreplaceable integrated asset footprint focused on transporting crude

oil produced from the deepwater Central Gulf of Mexico to multiple onshore

markets

• Contracts structured as life of lease dedications to individual platforms & pipelines

• Uniquely positioned with available capacity to capture volumes from incremental

deepwater production

• Global low-cost producer of natural soda ash

• World class facilities and reserves located in world’s largest economic trona

deposit

• Leading refinery sulfur removal business with consistent cash flow profile

• Integrated logistical footprint and customer relationships across soda ash, caustic

soda and NaHS markets

• Integrated suite of refinery-centric onshore crude oil and refined products

infrastructure, including pipelines, terminals, trucks and rail cars

• Leading 3rd party facilitator of feedstocks to ExxonMobil’s (“XOM”) Baton Rouge

Refinery

• Certain onshore pipeline and terminal assets integrated with Genesis' Gulf of

Mexico crude infrastructure

• Young, modern fleet of inland boats and heated barges, all asphalt capable, with

almost exclusive focus on intermediate refined products (black oil)

• Nine ocean going barges / ATBs ranging in size from 65 - 135 kbbls each

• 330 kbbl ocean going tanker American Phoenix built in 2012 and under term

contract

40% 36%

17% 7%

40% 36%

17% 7%

Offshore Pipeline Transportation

Sodium Minerals & Sulfur Services

Marine Transportation

Market Leading Businesses / High Barriers to Entry

Genesis LTM Segment Margin

$716 MM(a)

Note: Pictures from top to bottom: Ship Shoal 332B Platform, soda ash operations, Port of Baton Rouge terminal tank farm, inland push boat.

(a) Last twelve months total Segment Margin and per segment as of March 31, 2019.

Onshore Facilities & Transportation

$288 MM

$255 MM

$124 MM

$49 MM

40% 36%

17% 7%

40% 36%

17% 7%

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Diversified & Long-Life Infrastructure Assets

• Deepwater crude oil production growth

• Continued new developments and competitive

subsea tieback economics

• No direct exposure to crude oil or natural gas

prices

• ~2,400 miles of pipelines and platforms focused on

deepwater Gulf of Mexico

• Major crude systems have been in operation for decades

across a range of crude oil prices from $10 to $140 per

barrel

‒ Poseidon 1996 and CHOPS 2005

• Properly maintained with useful lives of 50+ years

• Global GDP growth and growing middle class

in emerging markets driving soda ash

demand growth for end uses

• Soda Ash: Glass manufacturing (containers,

windshields, windows), chemicals, detergents

and lithium batteries

• NaHS: Copper mining, pulp & paper

• Soda ash facilities and mines have been in continuous

operations since 1953 and have a remaining reserve life of

100+ years

• Sulfur services operates critical infrastructure inside the

fence at 9 refinery locations and has 30+ years of operating

history

• Long-term customer relationships developed from a track

record of quality and reliability

• Demand pull from refineries

• Underpinned by take-or-pay contracts with

ExxonMobil

• Expected volume growth from offshore

volumes delivered to integrated assets

• Newly constructed assets in Baton Rouge, LA integrated

with ExxonMobil's refinery

• Newly constructed assets at Texas City, TX and Raceland,

LA integrated with Genesis' offshore footprint helping

transport medium sour Gulf of Mexico production further

downstream to Gulf Coast refineries

• Legacy assets underpinned by long-term contracts and

demand pull from refineries

• Demand for movements of intermediate

refined products

• International Maritime Organization (“IMO”)

2020 sulfur spec driving demand for hot oil

capable fleet

• Young average age of fleet with useful life of 30+ years

• Refinery utilization and limited refinery storage leading to

absolute need for constant movement / offtake of

intermediate products

Long-Life Infrastructure AssetsKey Business Fundamentals


Note: Pictures from top to bottom: South Marsh Island 205 platform, soda ash operations, Raceland terminal tank farm, inland push boat.

5

Operating Leverage with Minimal Capital Required





Note: Pictures from top to bottom: Garden Banks 72 platform, soda ash operations, Texas City terminal tank farm, bluewater boat and barge.

• Anticipated increase in Gulf of Mexico

volumes driving both near-term and long-term

margin contribution

• Existing connectivity and excess capacity to capture

incremental volumes

• Minimal to zero increase in variable cost for any

incremental volumes

• Expected strength in soda ash pricing• Largely fixed operating costs

• Currently ~100% capacity utilization

• Pipeline capacity constraints out of Canada

driving increased crude by rail volumes

• Increasing volumes out of Gulf of Mexico

delivered to integrated onshore asset footprint

• Excess capacity and connectivity to capture incremental

volumes

• Minimal to zero increase in variable cost for any

incremental volumes

• Improved market conditions could lead to

increased marine day rates

• Combination of young fleet and fixed operating costs

creates ability to benefit from any market upturn in day

rates and utilization

• Minimal to zero increase in variable cost or incremental

capital for any increased utilization

Operating LeverageGrowth Drivers

6

Improving Financial Fundamentals & Guidance

Current Business Segment Outlook

Offshore Pipeline

Transportation

Sodium Minerals &

Sulfur Services

Onshore Facilities &

Transportation

Marine

Transportation

• Expected continued volume growth

• Receiving volumes on Poseidon and

CHOPS from a 3rd party pipeline

with insufficient capacity to deliver all

of its committed volumes to shore

• Remain on track to exit 2019 with

40-50 kbd of additional volumes

• Finalizing agreements for

incremental volumes approaching:

‒ 80 kpd in 2020 (Inc. Atlantis 3)

‒ 70 kbd in 2021

‒ 150 kbd in 2022 (Inc. Mad Dog 2)

• Sodium Minerals remains on track

for full year guidance for 2019

‒ Expect international market

supply / demand balance to

remain tight

‒ International pricing likely to

strengthen with no appreciable

supply additions in coming years

• Both the U.S. (natural) and China

(synthetic) are net exporters of

soda ash

• Sulfur Services business continues

to perform as expected

• Current spreads between Canada

and the Gulf Coast indicate

tightening in take away capacity,

making rail movements economical

to our Scenic Station rail facility

• May & June volumes at our Scenic

Station rail facility expected to

exceed take-or-pay levels

• Expect to see continued volume

increases at our Scenic Station rail

facility in 2H 2019

• Legacy onshore facilities and

Transportation business continues

to perform as expected

• Continues to perform as expected

• Continued belief that we are at or

near the bottom of the cycle

• Beginning to see strengthening of

day rates and utilization

• Encouraged about IMO 2020 with

hot-oil capable fleet

(a) As historically calculated and presented.

(b) We are unable to provide a reconciliation of the forward-looking Adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable GAAP

financial measure without unreasonable efforts. The probable significance is that such comparable GAAP financial measure may be materially different.

Financial Guidance

2019E

Adjusted EBITDA

4Q 2019E Annualized

Adjusted EBITDA

2018A

Adjusted EBITDA

$663.6

$685.0

$715.0 $720.0

$760.0

2019E Adjusted EBITDAKey Metrics Guidance Notes

Long-Term Target

Leverage Ratio4.00x

Common Unit Distribution $0.55 per quarterTo remain flat for foreseeable future; intend to use

capital for highest and best use for all stakeholders

Target Common Unit

Distribution Coverage(a) 1.40x – 1.60x

Use excess Available Cash as equity and/or to pay

down debt

2019E Adjusted EBITDA(b) $685 – $715 million ~3% – 7% increase from 2018

4Q 2019E Adjusted EBITDA(b) $180 – $190 million

Assumes reasonable recovery in crude by rail

volumes and expected growth in offshore segment

2019E Expected Growth Capital <$50 million Self funding growth capital in 2019

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• Management track record of acquiring and developing world

class infrastructure assets at attractive valuations

• Use capital for the highest and best use for all stakeholders

• Preferred equity partners with affiliates of two leading global

investment firms KKR & Co. LP ("KKR”) and GSO Capital

Partners LP (“GSO”)

Unitholder Alignment / Long-Term Value Creation

• NO incentive distribution rights (“IDRs”) with non-economic

General Partner (no sponsor)

– One of the first MLPs to eliminate IDRs in 2010

• Management and insiders are fully aligned with public

common unitholders

– Own approximately 11% of the outstanding common units

• Long-term incentive compensation for management and

employees tied to:

– Increasing available cash flow per unit

– Achieving long-term leverage targets

– Achieving company safety performance goals

• Culture committed to health, safety and environmental

stewardship

Long-Term Value CreationUnitholder Alignment

8

Business Segment Detail

9

Offshore Pipeline Transportation Overview

CHOPS Poseidon Eugene Island Odyssey

Capacity ~500 kbd(a) ~350 kbd ~173 kbd(b) ~200 kbd

1Q 2019

Avg. Daily

Volume

~242 kbd ~253 kbd NA(c) ~152 kbd

Delivery Texas Louisiana Louisiana Louisiana

Mileage 380 358 184 120

Ownership 100% 64% 29% 29%

Oil Laterals Natural Gas Platforms

Overview

Provide field

transportation to

CHOPS /

Poseidon

Primarily services

associated gas

from oil laterals

Multipurpose

production

handling and

service facilities

Selected

Assets

Includes

Allegheny,

Constitution,

Marco Polo,

SEKCO, Shenzi

and others

Includes

Anaconda, Manta

Ray, Nautilus and

others

Includes

Deepwater

Gateway (Marco

Polo) and others

DeliveryGenesis owned

infrastructureVarious

Genesis owned

infrastructure

• ~2,400 miles of pipelines and associated platforms primarily

located in the Central Gulf of Mexico

• Leading independent midstream service provider uniquely

positioned to provide deepwater producers maximum

optionality with access to both Texas and Louisiana markets

– No priority / dependency on affiliated equity production

• Focused on providing producers a “highway to shore” via our

Poseidon Oil Pipeline ("Poseidon") and Cameron Highway Oil

Pipeline System (“CHOPS”)

– Laterals and other associated infrastructure serve as feeders to

Poseidon and CHOPS

• Provide transportation to shore for several of the most prolific

fields in the Gulf of Mexico

Deepwater to Shore Solutions

Integrated Infrastructure

Leading Gulf of Mexico Midstream Service Provider

(a) Includes capacity from pumps to be installed at Garden Banks 72.

(b) Represents gross system capacity. System operates as an undivided joint interest. Genesis net capacity of ~39 kbd including associated laterals.

(c) System operates as an undivided joint interest and total volume is not available. Genesis net volumes of ~8 kbd.

10

Gulf of Mexico Production

Gulf of Mexico Production(a)

• Deepwater Gulf of Mexico production has increased by ~59%

since 2013

• Production increase has been primarily driven by producers’

ability to leverage existing infrastructure, improved drilling

efficiency and lower costs

– Existing platforms provide installed production processing

capacity with existing pipeline connectivity to shore

– New discoveries within ~30 miles of existing production

facilities are often subsea "tied back" to existing infrastructure

• 29 new fields have started producing since 2015

– 20 of these fields are tiebacks to existing production facilities

• New developments and subsea tiebacks continue to drive

increasing deepwater production

Select Platform & Field Development History

Continued Growth in the Deepwater

Field, First Oil

Constitution, 2007

Ticonderoga, 2007

Caesar/Tonga, 2013

Constellation 2019

Field, First Oil

Lucius, 2014

Hadrian North, 2019

Buckskin, 2019

Field, First Oil

Marco Polo, 2004

K2, 2005

Field, First Oil

Shenzi, 2009

Field, First Oil

Son of Bluto, 2015

Marmalard, 2015

Otis, 2016

Blue Wing Olive,

2018

La Femme, 2018

Red Zinger, 2018

Nearly Headless

Nick, 2019(a) Source: BSSE and EIA’s March 2019 short term energy outlook forecast.

(b) Conference call quotes per Seeking Alpha.

(kb

d)

($ / b

bl)

Producing

Planned tiebacks

“The teams are now working to commission and safely bring Appomattox

on-stream later this year. And since we made the investment decision in

Appomattox, we have reduced costs of that project with 40% further

improving the competitiveness of that project…"

Select Producer Commentary(b)

“We continue to build on the many accomplishments that we have achieved

at LLOG in the deepwater Gulf of Mexico. We had a number of significant

achievements in 2018, including bringing on eight new wells, continued

exploration successes and being named operator in new projects."

“We are still dedicated to the deepwater. We think we have expertise in the

deepwater. We picked up a significant number of leases in the Gulf of

Mexico deepwater as well as offshore Mexico and Brazil as well. So we're

still invested in the deepwater.”

“Overall across the Gulf, we see six to seven projects that quite frankly we

didn't see just 18 months ago….And I think I would say from a development

cost per barrel perspective, we're continuing to drive it down. In our overall

portfolio, our cost per barrel are down by 20% over the last couple of years”

GEL Lateral

to CHOPS /

Poseidon

Constitution Delta House Lucius Marco Polo Shenzi

GEL Lateral

to CHOPS /

Poseidon

GEL Lateral

to CHOPS /

Poseidon

GEL Lateral

to CHOPS /

PoseidonOdyssey

5 additional prospects located

within 30 miles

1 additional

prospect located

within 30 miles

2 additional

prospects located

within 30 miles

$-

$20

$40

$60

$80

$100

$120

0

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016 2017 2018 2019E 2020E

Non-Deepwater Deepwater (>1,000 ft.) Avg. Crude Price (WTI)

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• Caesar / Tonga

• Calpurnia

• Genghis Khan

• Holstein

• K2

• Marco Polo

• Tahiti

Central Gulf of Mexico Overview

Note: Map not intended to be an exhaustive list of prospects.

Robust Inventory of Future Growth

Buckskin

• Caicos

• Khaleesi / Mormont

• Samurai

• Warrior

• Wildling

Atlantis / Atlantis Phase 3

Constellation

Mad Dog / Mad Dog 2

Katmai

Phobos

Moccasin

Hadrian North

Leon

Kaskida

North

Platte

Gila

Guadalupe

Tiber

Shenandoah

Yucatan

Coronado

Selected Recent Developments / Key FID

Field Producer First Oil

Stampede Hess 2018

Buckskin LLOG Est. 2019

Constellation Anadarko 2019

Hadrian North Anadarko 2019

Nearly Headless Nick LLOG Est. 2019

Stonefly LLOG Est. 2019

Atlantis Phase 3 BP Est. 2020

Mad Dog 2 BP Est. 2022

Lucius

JackSt. Malo

Julia

Big Foot

Bullwinkle

Lobster

Cardamom

Baldpate

Constitution

Ticonderoga

Heidelberg

Shenzi

AlleghenyDroshky

Front Runner

Delta House

Horn Mountain

Ram Powell

Petronius

Nearly Headless Nick

Stonefly

Connected to Genesis Footprint

12

Central Gulf of Mexico Midstream Dynamics

TX City, TX /

Port Arthur, TX

Houma, LA /

Raceland, LAFourchon, LAGibson, LA

CHOPS/

Poseidon

Platform

SS 332 A&B

Poseidon

Platform

SMI 205

Am

be

rja

ck

24

”

Am

be

rjack

Sh

enzi

Ma

rco

Po

lo

Co

nstitu

tion

Alle

gheny

Ca

esar

SE

KC

O

Green Canyon / Walker Ridge VolumesAlaminos Canyon / Garden Banks /

Keathley Canyon Volumes

Deepwater

Production

Integrated

Infrastructure

/ Laterals

Strategic

Junction

Platforms

Paths to

Shore

Delivery

Locations

EIP

S 2

0”

Au

ge

r 2

0”

CH

OP

S 3

0”

Po

se

ido

n 2

4”

CHOPS / Poseidon Available Capacity to Shore(a)

Central Gulf of Mexico Deepwater to Shore Solutions

• Uniquely positioned with maximum optionality and available capacity to

provide a “highway to shore” for deepwater producers

– Integrated system allows producer to choose transportation to either

Texas or Louisiana via CHOPS / Poseidon to take advantage of

premium pricing

– CHOPS is only system in the Central Gulf of Mexico with delivery

onshore to Texas

• Laterals and additional infrastructure well positioned to capture future

volumes

• CHOPS / Poseidon have ample capacity to service the continued

growth in Central Gulf production with a shore based solution

Uniquely Positioned with Available Capacity to Capture Additional Volumes

Direct connectivity to GEL Texas City and GEL Raceland facilities(a) Includes capacity from pumps to be installed at GB 72.

CHOPS/

Poseidon

Platform

GB 72

CHOPS 30”

Poseidon 16” Poseidon 20”

-

250

500

750

1,000

2Q18 3Q18 4Q18 1Q19

kb

d

CHOPS Poseidon Available Capacity

Genesis owned infrastructure

GC 19

13

Sodium Minerals Overview

• Market leading position with highly consistent cash flow profile

and significant barriers to entry

• ~4 million tons per year of natural soda ash production with an

estimated remaining reserve life of over 100 years(a)

• Reserves located in world’s largest trona deposit, accounting

for over 80% of the world's economically viable soda ash(b)

• Facilities have been in continuous operation since 1953

• Diverse range of industries and end-market demand including

glass, chemicals, soaps and detergents

– Essential component to glass manufacturing

Lowers energy usage

Increases workability of the molten glass

Westvaco

ELDM Mono I & II Sesqui Granger

Year Built 1996 Mono I: 1972 / Mono II: 1976 1953 Built: 1976

Feed Solution Dry Ore Dry Ore Solution

Products Dense Ash Dense Ash Light, Dense & Fine Ash, S-Carb Dense Ash

Approximate % Alkali Production 22% 39% 26% 13%

Soda Ash Production Facilities

(a) Based on 2018 production rate.

(b) USGS estimates based on 2018 data. Assumes Green River trona accounts for ~87% of US natural soda ash reserves based on 2009 USGS data.

Largest North American Producer of Low Cost Natural Soda Ash

Genesis has Largest Trona Lease Holding in U.S.

Genesis

14

1.0x

1.8x1.9x

2.3x

U.S. Natural EU Solvay China Solvay China Hou

Natural Soda Ash Cost Advantage

Natural vs. Synthetic Production(a)

2018 Global Production Capacity(a) Relative Production Cost(a)

Low Cost Position Drives Stable Cash Flow Generation

(a) Per IHS and Company estimates.

U.S. NaturalSolvay

ProcessChina HOU

Raw

MaterialsTrona Ore

Salt (brine),

Limestone,

Ammonia

Salt (brine),

Limestone,

Carbon Dioxide

Energy

Usage

4 - 6

MMBtu / ton

10 - 14

MMBtu / ton

10 - 14

MMBtu / ton

By-Products None

Calcium

Chloride

(waste product)

Ammonium

Chloride

(co-product)

U.S. Natural19%

Solvay Process45%

China Hou22%

Others14%

• Global low cost soda ash producer

– Average cost to produce natural soda ash is ~50% of the cost to

produce synthetic soda ash

– Synthetic soda ash consumes substantially more energy, incurs

additional costs associated with by-products and has a greater

carbon footprint

• Cost advantage allows Genesis to compete on global market

– Sold out 100% of production in each of the last 10 years

• Genesis has been the technological innovator since the first

natural soda ash plant was built in Wyoming. The “know how”

and size and scale of the world’s largest trona mine and soda

ash facility gives us unique advantages over competitors.

15

CAGR

'13-'17 '17-'21

1.5% 2.1%

5.6% 4.1%

0.9% 1.1%

2.8% 2.2%

2.9% 2.5%

3.2% 2.9%

2013 2017 2021

Latin America Asia (Ex-China)(b)MEA EuropeIndian Subcontinent Turkey

Note: MEA stands for Middle East and Africa. EMEA stands for Europe, Middle East and Africa.

(a) In millions of metric tons. Per IHS, Company estimates and USGS. Ex-China, Ex-US and Canada

(b) Includes Australia, Hong Kong, Indonesia, Japan, Malaysia, Myanmar, New Zealand, North Korea, Other Southeast Asia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam

Soda Ash Supply / Demand Outlook

• Turkey expansion (Kazan) ~2.5 million metric tons per year

fully absorbed by market as evidenced by continued rise in

export pricing

• No significant natural supply expected to be online for 3+

years

• U.S. demand is relatively stable

• Domestic soda ash competitively positioned vs. high cost

synthetic to supply export growth in freight advantaged

markets of Asia and Latin America

• Global demand (ex-China) expected to grow 800-900K MT per

year

– Driven by emerging middle class and increasing per capita

consumption in Asia and Latin America

• Both the U.S. (natural) and China (synthetic) are net exporters

of soda ash

Soda Ash Demand by Geography(a)

Global Supply Sources(a) 2018 Genesis Sale Volume by Geography

25.227.8

30.9

2013 - 2017 CAGR:

2.5%

2017 - 2021 CAGR:

2.6%

Supply / Demand Balance Expected to Remain Tight

High Cost Synthetic

74%

Low Cost Natural

Production26%

North America43%

Latin America24%

Asia-Pacific29%

EMEA4%

16

Sulfur Services Overview

• Market leading position with highly consistent cash flow profile

and significant barriers to entry to replicate both asset and

marketing footprint

• Consistent cash flow generation through all economic cycles

• Long-term relationships with both refineries and customers

spanning 30+ years

• Sour “Gas Processing” units inside the fence at 9 refineries

play integral role in sulfur removal for each refinery

– Run in parallel or in lieu of traditional sulfur removal units

– Reliable and trusted operator of owned assets inside refinery

fence

• Produce NaHS through proprietary process utilizing Caustic

Soda (“NaOH”) reacted with high H2S gas

• Take NaHS in kind as compensation for sulfur removal

services and sell NaHS primarily to large mining, pulp & paper

and other customers:

– ~80% of our cost of goods is NaOH

– ~75% of the Company’s sales contracts are indexed to caustic

soda prices (cost-plus)

– Remaining ~25% of contracts are adjustable (typically 30 days

advance notice)

Sulfur Removal Units

NaHS End Markets

Chemical

Tanning

Environmental

Refiners

Nat Gas

H2S

Nat Gas

NaHS Unit

"Gas Processing"

Trucks

Barges & Ships

Terminals

Rail Cars

Mining (54%) Pulp & Paper (31%) Others (15%)

NaHS

Refinery Operator Location

Relationship

History

Capacity

(DST)

Phillips 66 Westlake, LA 25 Years 110,000

Holly Refinery Tulsa, OK 5 Years 24,000

Holly Refinery Salt Lake City, UT 9 Years 21,000

Citgo Corpus Christi, TX 15 Years 20,000

Delek El Dorado, AR 35 Years 15,000

Chemtura El Dorado, AR 15 Years 10,000

Albemarle Magnolia, AR 35 Years 8,000

Ergon Refinery Vicksburg, MS 35 Years 6,000

Cross Oil Smackover, AR 25 Years 3,000

Ergon Refinery Newell, WV 35 Years 2,800

Production Process and Sales Overview

Market Leader of NaHS Production and Leading Provider of Sulfur Removal Services

17

Onshore Facilities & Transportation Overview

Baton Rouge Complex Texas City Terminal Raceland Terminal Other Legacy Onshore Assets

• Underpinned by minimum volume

commitment ("MVC") contracts with

ExxonMobil

• Integral part of ExxonMobil’s Baton

Rouge Refinery logistics and slate

• Rail unloading facility (Scenic

Station) capable of handling over 2

unit trains per day

• Connectivity to deepwater import /

export docks at Port of Baton Rouge

• Multiple fee “touch points” for

Genesis across the integrated

platform

• Underpinned by MVC contracts with

ExxonMobil

• Connection to Genesis owned

and operated CHOPS pipeline

• Destination point for various Gulf of

Mexico grades including HOOPS /

CHOPS

• Downstream pipeline delivery points

include ExxonMobil’s Baytown

Refinery (via Webster)

• Exploring potential export

connectivity

• Connection to Genesis owned

and operated Poseidon pipeline

• Rail unloading facility capable of

handling 2 unit trains per day

• Downstream pipeline delivery points

include St. James, LA via LOCAP &

ExxonMobil’s Baton Rouge Refinery

• Exploring potential connectivity to

pipelines for delivery downstream to

export facilities in Louisiana

• Crude oil pipelines in Mississippi,

Alabama & Florida

• 270 miles of CO2 pipelines;

underpinned by long-term contracts

• Crude and refined products storage

/ marketing

• ~200 trucks & ~300 trailers

• ~400 leased railcars

Integrated Asset Footprint with Exposure to Significant Refinery Demand

Texas City Terminal

Raceland Terminal

Scenic Station Terminal

Texas City

Terminal

CHOPS

GEL 18” Pipeline

to Webster

Raceland

Terminal

GEL Raceland

Pipeline

LOCAP to St. James

XOM Pipeline to

Baton Rouge

Houma

PoseidonGOMGOM

Gulf of Mexico Connectivity

Texas City, TX Raceland, LA

PoseidonCHOPS

18

Asset Snapshot: Baton Rouge Complex

• Integral part of day-to-day refinery logistics and feedstocks for

Exxon Mobil's Baton Rouge Refinery (4th largest U.S. Refinery

with 503 kbd of capacity)

• Scenic Station is the primary home for Imperial / ExxonMobil's

equity Canadian production (Kearl, Cold Lake) that moves via

rail

– Portion of volume is consumed at the refinery and remainder is

exported via Port Hudson / Baton Rouge Terminal (“BRT”)

• Baton Rouge Terminal activity driven by (i) steady supply of

vacuum gas oil (VGO) imports consumed by the Refinery, (ii)

distressed opportunistic crude imports consumed by the

refinery and (iii) rail exports from Scenic Station

Port

Hudson

Terminal

Scenic

Station

Terminal

Baton

Rouge

Terminal

Scenic

Station

Terminal

• Deliver barrels by pipeline to XOM Refinery / Port Hudson / BRT

• 440 kbbls total shell tank storage capacity

• Unload 100+ car unit trains from Alberta & other markets

• Connected to Canadian National (direct) & Canadian Pacific (via KCS)

Railroads

• Capable of receiving and unloading over 2 unit trains per day

Baton

Rouge

Terminal

• Receive barrels by pipeline from Scenic Station & load ships for export

• Receive barrels by ship & deliver barrels by pipeline to XOM Refinery

• 1,700 kbbls total shell tank storage capacity

• Connectivity to 2 deepwater docks (Port of Baton Rouge)

• Import / export capabilities for both crude oil and intermediates

Port

Hudson

Terminal

• Receive barrels by barge / truck

• Pipeline delivery to XOM Refinery / other area refineries

• Receive barrels by pipeline from Scenic Station & loads barges

• 556 kbbls total shell tank storage capacity

• Origination of bi-directional 18 mile, 24” pipeline to Scenic Station / XOM

Refinery

XOM

Refinery

Terminaling Fee

Paid to GEL

Pipeline Fee

Paid to GEL

Integrated Crude & Intermediates Logistics Platform

Value Proposition – Multiple “Touch Points” for Genesis to Earn Fees

Port Hudson

Scenic Station

Baton Rouge

Terminal

XOM Refinery

Baton Rouge Complex

19

38

48

123

36

21

92

12

0

40

80

120

160

0 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35+

Marine Transportation Overview

959

823

572

372

272207

21

153

238

0

400

800

1200

0 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35 to 40 >40

>400 barges

30+ years old and

candidates for

retirement14 barges

30+ years old and

candidates for

retirement

(a) Per industry research.

(b) Tank barges with 195,000 barrels capacity or less as of December 31, 2018.

• Almost exclusive focus on intermediate refined products

(black oil)

• Operating costs largely fixed, high degree of operating

leverage

• Younger, more efficient fleet that is well positioned to benefit

from likely retirement of a significant amount of market

capacity

• Inland barges are all asphalt capable, heated barges primarily

utilized in hot oil service

• American Phoenix currently under term contract with

investment grade counter party through September of 2020

Bottom of the Cycle & High Degree of Operating Leverage

Offshore Barges by Age(b)Inland Tank Barges by Age(a)

Inland OffshoreAmerican

Phoenix

Total Fleet

Capacity~2.3 kbbl ~0.9 kbbl ~0.3 kbbl

Capacity

Range23-39 kbbl 65-135 kbbl 330 kbbl

Push/Tug

Boats33 9 -

Barges 82 9 -

Product

Tankers- - 1

Genesis Marine Equipment

20

Appendix & Reconciliations

21

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2019 2020 2021 2022 2023 2024 2025 2026

Senior Notes Revolving Credit Facility

• Committed to long-term leverage ratio of 4.00x

• No near-term maturities

• 2019 self funding expected growth capital of <$50 million

• $1.7 billion Senior Credit Facility

– Maturity: 2022

– Maximum Leverage Ratio: 5.50x

Debt Profile & Corporate Structure

Long-Term Debt Overview ($MM)

Genesis Energy, L.P.

(NYSE: GEL)

General Partner

Genesis Energy, LLC

NO IDRs

Sodium Minerals &

Sulfur Services

Series AConvertible

Preferred Units(24,972,598)

Class ACommon Units(122,539,221)

Class BCommon Units

(39,997)

Offshore Pipeline

Transportation

100%

Ownership

Marine

Transportation

Onshore Facilities

& Transportation

Corporate Structure(a)Balance Sheet overview

6.75%

Notes

6.00%

Notes5.625%

Notes

6.50%

Notes 6.25%

Notes

(a) As of March 31, 2019.

22

Balance Sheet & Credit Profile

(a) Includes adjustments for material projects, acquisitions, divestitures and other.

(b) Excludes debt used to finance short-term hedged inventory of $23.6 million as of 1Q 2019. Net of cash of $11.2 million as of 1Q 2019.

(c) Adjusted Consolidated EBITDA for the four-quarter period ending with the most recent quarter, as calculated under our senior secured credit facility.

($ in 000s) Reported LTM Bank EBITDA Pro Forma LTM

3/31/2019 Adjustment(a)

3/31/2019

Senior Secured(b) $907,196 $907,196

Senior Unsecured 2,464,247 2,464,247

Adjusted Debt $3,371,443 $3,371,443

Adjusted Consolidated EBITDA(c) $674,891 ($10,753) $664,138

Adjusted Debt / Adjusted Consolidated EBITDA 5.08x

1Q 2019

1Q 2019 Reported Available Cash Before Reserves $95,896

Less: Distributions (67,419)

Distribution Coverage ($) $28,477

Distribution Coverage 1.42x

23

Pro Forma Segment Margin Reconciliation

Pro Forma

($ in 000s) LTM

3/31/2019 2019 2018 2017 2016

Net Income Attributable to Genesis Energy, LP $1,845 $15,954 ($6,075) $82,647 $113,249

Corporate general and administrative expenses 65,323 11,100 64,683 60,029 40,905

Depreciation, depletion, amortization and accretion 325,137 79,937 323,208 262,021 230,563

Impairment expense 120,260 - 120,260 - -

Interest expense, net 228,756 55,701 229,191 176,762 139,947

Tax expense (benefit) 1,525 402 1,498 (3,959) 3,342

Gain on sale of assets (42,264) - (42,264) (40,311) -

Equity compensation adjustments 29 65 (112) (940) (317)

Provision for leased items no longer in use (852) (190) (476) 12,589 -

Other - - - 2,962 -

Plus (minus) Select Items, net 16,323 10,595 22,845 42,743 41,882

Segment Margin $716,082 $173,564 $712,758 $594,543 $569,571

Total Segment Margin (LTM) $716,082

Acquisitions and Material Projects EBITDA Adjustment (10,753)

Pro Forma Segment Margin $705,329

3 months ended

March 31,

24

Available Cash Before Reserves

(a) 2018 & LTM Available Cash before Reserves includes one-time gains on sale of assets of ~$42.3 million.

(b) Distribution Coverage Ratio calculation excludes one-time gains on sale of assets of ~$42.3 million.

Pro Forma

LTM

($ in 000s) 3/31/2019 2019 2018 2017 2016

Net income attributable to Genesis Energy, L.P. $1,845 $15,954 ($6,075) $82,647 $113,249

Interest expense, net 228,756 55,701 229,191 176,762 139,947

Income tax expense (benefit) 1,525 402 1,498 (3,959) 3,342

Impairment expense 120,260 - 120,260 - -

Depreciation, depletion, amortization, and accretion 325,137 79,937 323,208 262,021 230,563

EBITDA $677,523 $151,994 $668,082 $517,471 $487,101

Plus (minus) Select Items, net 40,368 12,016 47,949 59,295 45,128

Adjusted EBITDA, net $717,891 $164,010 $716,031 $576,766 $532,229

Maintenance capital utilized (21,780) (6,125) (19,955) (13,020) (7,696)

Interest expense, net (228,756) (55,701) (229,191) (176,762) (139,947)

Cash tax expense (835) (150) (835) (100) (1,200)

Cash distribution to preferred unitholders (6,138) (6,138) - - -

Other (6) - - 2,148 855

Available Cash before Reserves(a)$460,376 $95,896 $466,050 $389,032 $384,241

Less: One-time Gain on Sale of Assets (42,264) (42,264)

Adjusted Available Cash before Reserves $418,112 423,786$

Distributions $265,998 $67,419 $262,320 $300,625 $321,717

Distribution Coverage Ratio(b) 1.57x 1.42x 1.62x 1.29x 1.19x

3 months ended

March 31,

25

Adjusted Debt Reconciliation

(a) As calculated under our senior secured credit facility.

($ in 000s) Pro Forma

LTM

Long-term debt 3/31/2019 2018 2017 2016

Senior secured credit facility $942,000 $970,100 $1,099,200 $1,278,200

Senior Unsecured Notes 2,464,247 2,462,363 2,598,918 1,813,169

Adjustment for short-term hedged inventory (23,600) (17,800) (29,000) (74,500)

Cash and cash equivalents (11,204) (10,300) (9,041) (7,029)

Pro Forma Adjusted Debt $3,371,443 $3,404,363 $3,660,077 $3,009,840

Consolidated EBITDA(a)

$674,891 $670,957 $561,961 $532,231

Acquisitions and Material Projects EBITDA Adjustment (10,753) (7,351) 123,815 44,008

Pro Forma EBITDA $664,138 $663,606 $685,776 $576,239

Pro Forma Adjusted Debt / Pro Forma EBITDA 5.08x 5.13x 5.34x 5.22x

26

Select Items Reconciliation

(a) 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.

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

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

(d) Represents all Select Items applicable to Segment Margin, Adjusted EBITDA and Available Cash before Reserves.

(e) Represents transaction costs relating to certain merger, acquisition, transition and financing transactions incurred in acquisition activities.

(f) Represents Select Items applicable to Adjusted EBITDA and Available Cash before Reserves.

Pro Forma

($ in 000s) LTM

3/31/2019 2019 2018 2017 2016

Applicable to all Non-GAAP Measures

Differences in timing of cash receipts for certain contractual arrangements (a) ($5,585) ($2,287) ($6,629) ($17,540) ($13,253)

Adjustment regarding direct financing leases (b) 7,822 2,028 7,633 6,921 6,277

Revaluation of certain liabilities and assets - - - - 6,044

Unrealized (gain) loss on derivative transactions excluding fair value hedges,

net of changes in inventory value (8,771) 3,865 (10,455) 9,942 1,790

Loss on debt extinguishment - - 3,339 6,242 -

Adjustment regarding equity investees(c) 23,859 4,828 28,088 31,852 39,276

Other (1,002) 2,161 869 5,326 1,748

Sub-total Select Items, net (Segment Margin)(d) $16,323 $10,595 $22,845 $42,743 $41,882

Applicable only to Adjusted EBITDA and Available Cash before Reserves

Certain transaction costs(e) 7,533 117 9,103 16,833 1,945

Equity compensation adjustments (188) (137) (207) (1,227) (763)

Other 16,700 1,441 16,208 946 2,064

Total Select Items, net(f)$40,368 $12,016 $47,949 $59,295 $45,128

3 months ended

March 31,

2019 mlp & energy infrastructure ... - genesis energy, lp

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