GENESIS ENERGY LP
For the period ended Mar 31, 2024. Filed May 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 2, 2024
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13. Business Segment Information
- Business Segment Information
We currently manage our businesses through four divisions that constitute our reportable segments:
Offshore pipeline transportation, which includes the transportation and processing of crude oil and natural gas in the Gulf of Mexico;
Soda and sulfur services involving trona and trona-based exploring, mining, processing, soda ash production, marketing, logistics 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”);
Marine transportation to provide waterborne transportation of petroleum products (primarily fuel oil, asphalt and other heavy refined products) and crude oil throughout North America; and
Onshore facilities and transportation, which includes terminaling, blending, storing, marketing, and transporting crude oil and petroleum products.
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, amortization and accretion) and segment general and administrative expenses, net of the effects of our noncontrolling interests, plus our equity in distributable cash generated by our equity investees and unrestricted subsidiaries. In addition, our Segment Margin definition excludes the non-cash effects of our long-term incentive compensation plan.
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 | Soda and Sulfur Services | Marine Transportation | Onshore Facilities and Transportation | Total | |
|---|---|---|---|---|---|
| Segment Margin(1) | $97,806 | $45,382 | $31,363 | $6,547 | $181,098 |
| Capital expenditures(2) | $63,626 | $18,600 | $12,310 | $6,521 | $101,057 |
| Revenues: | |||||
| External customers | $101,990 | $402,954 | $83,574 | $181,587 | $770,105 |
| Intersegment(3) | — | (2,006) | — | 2,006 | — |
| Total revenues of reportable segments | $101,990 | $400,948 | $83,574 | $183,593 | $770,105 |
| Segment Margin(1) | $97,938 | $66,107 | $25,694 | $5,390 | $195,129 |
| Capital expenditures(2) | $52,053 | $19,985 | $9,057 | $1,930 | $83,025 |
| Revenues: | |||||
| External customers | $91,395 | $446,906 | $83,226 | $169,085 | $790,612 |
| Intersegment(3) | — | (2,258) | — | 2,258 | — |
| Total revenues of reportable segments | $91,395 | $444,648 | $83,226 | $171,343 | $790,612 |
(1)A reconciliation of Net income (loss) attributable to Genesis Energy, L.P. to total Segment Margin for the periods is presented below.
(2)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.
(3)Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
Total assets by reportable segment were as follows:
| March 31, 2024 | December 31, 2023 | |
|---|---|---|
| Offshore pipeline transportation | $2,626,821 | $2,580,032 |
| Soda and sulfur services | 2,637,632 | 2,705,350 |
| Marine transportation | 640,032 | 645,020 |
| Onshore facilities and transportation | 963,604 | 1,019,113 |
| Other assets | 77,169 | 69,263 |
| Total consolidated assets | $6,945,258 | $7,018,778 |
Reconciliation of Net income (loss) attributable to Genesis Energy, L.P. to total Segment Margin:
| Three Months EndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net income (loss) attributable to Genesis Energy, L.P. | $11,353 | $(1,644) |
| Corporate general and administrative expenses | 16,049 | 15,764 |
| Depreciation, depletion, amortization and accretion | 76,543 | 75,935 |
| Interest expense, net | 68,734 | 60,854 |
| Adjustment to include distributable cash generated by equity investees not included in income and exclude equity in investees net income(1) | 6,808 | 6,281 |
| Unrealized losses (gains) on derivative transactions excluding fair value hedges, net of changes in inventory value | (5,081) | 27,132 |
| Other non-cash items | (2,189) | (2,461) |
| Loss on extinguishment of debt(2) | — | 1,809 |
| Differences in timing of cash receipts for certain contractual arrangements(3) | 8,072 | 10,575 |
| Income tax expense | 809 | 884 |
| Total Segment Margin | $181,098 | $195,129 |
(1)Includes distributions attributable to the quarter and received during or promptly following such quarter.
(2)The 2023 Quarter includes the transaction costs associated with the tender and redemption of our 2024 Notes, as well as the write-off of the unamortized issuance costs associated with these notes.
(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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.