Embed Size (px)
Citation preview
Citi Midstream / Energy Infrastructure Conference
August 2019
1
Genesis Energy, L.P. NYSE: GEL
Common Unit Market Value ~$2.5 billion(a)
Convertible Preferred Equity ~$0.9 billion(a)
Enterprise Value ~$6.8 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 Contact
(713) 860-2500
Corporate Headquarters
919 Milam Street, Suite 2100
Houston, TX 77002
(a) As of August 9, 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) Refinery-centric
onshore terminals and pipelines and (4) Producer and marketer of sodium hydrosulfide (“NaHS”)
• 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 diverse set of 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 growth capital required
• Self-funding expected 2019 growth capital of <$50 million
Improving Financial Fundamentals & Guidance• Strong distribution coverage ratio(a) with excess cash flow used to repay credit facility or fund organic growth opportunities
• Expected EBITDA growth, along with potential repayments of credit facility balances, leads to natural deleveraging
• Committed to long-term leverage ratio of 4.00x(b)
Unitholder Alignment with Focus on Long-Term Value Creation• No incentive distribution rights
• Management and insiders own ~11% of outstanding common units(c)
• 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.
(b) As calculated under our senior secured credit facility.
(c) As of December 31, 2018.
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 natural
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
pipelines, terminals and related infrastructure
• 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 pipeline infrastructure
• Young, modern fleet of inland boats and heated barges, all asphalt capable, with
almost exclusive focus on intermediate refined products ("black oil")
• 330 kbbl ocean going tanker American Phoenix built in 2012 and under term
contract
• Nine ocean going barges / ATBs ranging in size from 65 - 135 kbbls each
Offshore Pipeline Transportation
Sodium Minerals & Sulfur Services
Marine Transportation
Market Leading Businesses / High Barriers to Entry
Genesis Total LTM
Segment Margin $726 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 segments as of June 30, 2019.
Onshore Facilities & Transportation
$293 MM
$248 MM
$134 MM
$51 MM
40% 34%
18% 7%
40% 34%
18% 7%
40% 34%
18% 7%
40% 34%
18% 7%
4
Offshore Pipeline Transportation
Sodium Minerals & Sulfur Services
Onshore Facilities & Transportation
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
• Stable domestic demand for soda ash complimented
by increasing exports
‒ Soda Ash demand: Glass manufacturing
(containers, windshields, and windows),
chemicals, detergents and lithium batteries
• NaHS demand: Copper mining and pulp & paper
industries
• Soda ash facilities and mines have been in
continuous operations since 1953 and have a
remaining reserve life of 100+ years(a)
• Sulfur services operates critical infrastructure inside
the fence at 10 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
• Certain assets underpinned by take-or-pay contracts
with ExxonMobil
• Expected volume growth from offshore volumes
delivered to integrated onshore assets
• Newly constructed pipeline and terminal assets in
Baton Rouge integrated with ExxonMobil's refinery
• Newly constructed pipeline and terminal assets at
Texas City and Raceland 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 heavy intermediate
refined products
• International Maritime Organization (“IMO”) 2020
sulfur spec driving demand for hot oil capable fleet
• Increasing spread between WTI & Brent crude oil
driving demand for Jones Act equipment
• Young, efficient 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
Marine Transportation
Note: Pictures from top to bottom: South Marsh Island 205 platform, soda ash operations, Raceland terminal tank farm, inland push boat.
(a) Based on current production rate in current seam.
5
Operating Leverage with Minimal Capital Required
Offshore Pipeline Transportation
Sodium Minerals & Sulfur Services
Onshore Facilities & Transportation
Marine Transportation
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 crude oil
volumes driving both near-term and long-term
margin contribution
• Existing connectivity and excess capacity to capture
incremental volumes
• Largely fixed operating costs with minimal to zero
increase in variable cost for any incremental
volumes
• Expected strength in soda ash pricing driven by
emerging middle class and increasing per capita
consumption of soda ash in Asia (ex. China) & Latin
America
• Largely fixed operating costs with minimal to zero
increase in variable cost for any incremental
volumes
• Sell every ton of soda ash we can safely produce
• Demand pull from connected refineries
• Pipeline capacity constraints out of Canada driving
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
• Largely fixed operating costs with minimal to zero
increase in variable cost for any incremental
volumes
• Improved market conditions could lead to increased
marine day rates and utilization
• Largely 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
• Remain on track to exit 2019 with
40-50 kbd of additional volumes,
inclusive of Buckskin
• Received first oil from LLOG’s
Buckskin project in late June 2019
‒ Est. peak production of 30 kbd
• Finalizing agreements for
incremental volumes approaching
300 kbd over the next 3 years,
including Atlantis 3 and Mad Dog 2
(both already connected)
• Experienced temporary throughput
disruptions in early Q3 2019 as a
result of production being shut in
associated with Hurricane Barry
• Sodium Minerals remains on track
for full year estimate 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; no China exposure
• Sulfur Services business continues
to perform as expected
• Expect to see similar aggregate
crude-by-rail volumes in Q3 2019 as
we experienced in Q2 2019 at our
Baton Rouge complex
‒ Anticipate Aug. and Sept.
volumes to ramp down as near-
term differentials not supportive
• Continue to monitor easing of
production curtailments by the
government of Alberta
‒ Further easing should drive
increased crude-by-rail volumes
• Legacy Onshore Facilities and
Transportation business continues
to perform as expected
• Continues to perform as expected
• 6th consecutive quarter of segment
margin improvement
• 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 calculated under our senior secured credit facility.
(b) As historically calculated and presented.
(c) 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.
Current Financial Guidance
2019E
Adjusted EBITDA(c)
4Q 2019E Annualized
Adjusted EBITDA(c)
2018A
Adjusted EBITDA
$663.6
$685.0
$715.0 $720.0
$760.0
2019E Adjusted EBITDA ($MM)(c)Key Metrics Guidance Notes
Long-Term Target
Leverage Ratio(a) 4.00x
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(b) 1.40x – 1.60x
Use excess cash flow to repay credit facility or fund
organic growth projects
2019E Adjusted EBITDA(c) $685 – $715 million Expect to be towards the lower end of range
4Q 2019E Adjusted EBITDA(c) $180 – $190 million Remain on track
2019E Expected Growth Capital <$50 million Self-funding expected 2019 growth capital
7
• Management has a track record of acquiring and developing
world class infrastructure assets at attractive valuations
• Use capital for the highest and best use for all stakeholders
• Common unit distribution of $0.55 per quarter or $2.20 per
year
• Culture committed to health, safety and environmental
stewardship
• Supporting business priorities and our investors through ESG
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(a)
• 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
Long-Term Value CreationUnitholder Alignment
(a) As of December 31, 2018.
Business Segment Detail
9
308 351 393 432 467 467 437
50
80
70
150
$0
$20
$40
$60
$80
$100
$120
0
100
200
300
400
500
600
700
800
900
1,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$ / b
blK
bd
Offshore Pipeline Transportation Overview
• Beginning in 2010 with the acquisition of CHOPS,
management has acquired an irreplaceable industry leading
portfolio of midstream infrastructure in the deepwater Gulf of
Mexico at attractive valuations
– Total capital spent to obtain footprint: ~$2.2 billion(a)
• Integrated footprint has performed throughout the most
recent crude oil cycle and is well positioned to capture
incremental volumes with little to no capital to Genesis
– Offshore Pipeline Transportation Segment Margin
• 2018A: $285.0 million
• 2Q 2019A Annualized: $306.1 million
Stability and Future GrowthLong-Term Value Creation
Timeline of Key Events
2014 2019 2020 2021
July 2014 - $197 mm
Genesis and Enterprise complete
construction of 50% / 50% owned
SEKCO Pipeline
2022
Oct. 2011 - $205.8 mm
Genesis Acquires Marathon's
Gulf of Mexico assets, including:
28% in Poseidon
23% in Eugene Island
29% in Odyssey
20112010
Oct. 2010 - $330 mm
Genesis Acquires
50% interest in
CHOPS from Valero
2015
July 2015 - $1.5 billion
Genesis Acquires Enterprise's
Gulf of Mexico assets, including:
50% in CHOPS
36% in Poseidon
50% in SEKCO
2020
Finalizing agreements for an
additional 80 kbd
(including Atlantis Phase 3,
which is contracted)
2019
Remain on track to
exit 2019 with 40-50 kbd of
additional volumes
2021
Finalizing agreements
for an additional 70 kbd
2022
Finalizing agreements for
an additional 150 kbd
(including Mad Dog 2,
which is contracted)
(a) Approximate total gross capital spent including both growth and maintenance capital expenditures, net of any divestitures.
(b) Finalizing agreements.
Historical CHOPS & Poseidon gross daily volumes
Disclosed potential growth volumes(b)
Avg. Crude Price (WTI)
Acquired World Class Footprint in Leading North American Basin
10
211 207 210 260 263 254 235 253 265
30
$0
$20
$40
$60
$80
$100
$120
0
50
100
150
200
250
300
350
400
450
500
20
12
20
13
20
14
2015
20
16
20
17
20
18
1Q
201
9
2Q
201
9
Bu
ckskin
$ / b
blK
bd
Case Study: Poseidon Oil Pipeline
• Poseidon Oil Pipeline is a high barrier to entry pipeline transporting
central Gulf of Mexico production to key markets in Louisiana
– Integrated onshore with Genesis’ Raceland, LA Terminal for delivery
to refining markets downstream
• 367-mile system with capacity of ~350,000 barrels per day
• Pipeline has been in continuous operation for over 23 years with
first oil in 1996 and a total gross cost to construct and maintain of
$433.6 million as of 6/30/19
– Distributed $24.1 million to its owners in 2Q 2019 or $96.4 million on
an annualized basis
• Since 2012, volumes have increased ~25% while crude oil prices
have declined ~36%
• Near term growth includes the 100% dedicated Buckskin prospect
which began producing in June 2019(a)
– Once fully established, phase 1 production rate at Buckskin
anticipated to reach 30,000 barrels per day(a)
– Zero incremental capital cost to Poseidon and ~100% EBITDA
margin on all Buckskin production
– In addition, Buckskin is dedicated to the SEKCO lateral (100%
Genesis owned)
• Finalizing agreements for additional volumes in the 2020-2022 time
frame
• Substantially all contracts include “life of lease” dedications for any
field production for firm transportation to shore on Poseidon
– Some contracts also include take-or-pay commitments
Irreplaceable Crude Oil Pipeline in the Central Gulf of Mexico
World Class Customers Base
Stability and Future Growth
Historical Poseidon gross daily volumes
Disclosed growth volumes(a)
Avg. Crude Price (WTI)
(a) Per “The Buckskin Development” Oil & Gas Journal article dated June 2019.
11
Buckskin Development Overview
Meaningful EBITDA Contribution with No Capital Requirements
• Achieved first oil in June 2019; developing field with two phase I wells with target production rate of 30kbd(a)
• 100% of production for the life of the Buckskin field is 100% dedicated to flow on Genesis’ SEKCO and Poseidon pipelines
• Estimated 5 billion barrels of oil in place covering six lease blocks (~50 square miles)(a)
• Assuming a 6% recovery factor(a), the Buckskin field represents a ~300 million barrel transportation opportunity for Genesis with no capital
expenditures required and virtually ~100% EBITDA margin
• Project completed earlier than anticipated with a 60% reduction in cost from original development plan(a)
• Initial discovery in 2009 by Chevron and evaluated as a new standalone production facility
– Chevron elected to not move forward with a new production facility
• LLOG took over operatorship in 2017
– Created a phased development that reduced break-even price for produced oil from Buckskin by 30%(a) that included the use of the existing Lucius
infrastructure
Buckskin
(a) Per “The Buckskin Development” Oil & Gas Journal article dated June 2019.
12
CHOPS Poseidon Eugene Island Odyssey
Capacity ~500 kbd(a) ~350 kbd ~173 kbd(b) ~200 kbd
2Q 2019
Avg. Daily
Volume
~229 kbd ~265 kbd NA(c) ~150 kbd
Delivery Texas Louisiana Louisiana Louisiana
Mileage 380 358 184 120
Ownership 100% 64% 29% 29%
Oil Laterals Natural Gas Platforms
Overview
Provide field-level
transportation to
CHOPS /
Poseidon
Primarily services
associated gas
production from oil
laterals
Multi-purpose
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
Cameron Highway Oil Pipeline System (“CHOPS”) and
Poseidon Oil Pipeline ("Poseidon")
– Laterals and other associated infrastructure serve as feeders to
CHOPS and Poseidon
• Provide transportation to shore for several of the most prolific
fields in the Gulf of Mexico
Deepwater to Shore Crude Oil Pipeline Solutions
Integrated Infrastructure
Leading Gulf of Mexico Midstream Service Provider
(a) Includes capacity from pumps that could 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 ~12 kbd.
Offshore Pipeline Transportation Asset Summary
13
Gulf of Mexico Crude Oil Production
Gulf of Mexico Crude Oil Production(a)
• Deepwater Gulf of Mexico crude oil production has increased by
~59% since 2013 and total Gulf of Mexico production is forecasted
to add an additional ~351 kbd by 2020(a)
• Production increase has been primarily driven by producers’ ability
to leverage existing infrastructure, improved drilling efficiency and
lower service costs
– New discoveries within ~30 miles of existing platforms are often “tied
back” given existing pipeline connectivity to shore
– Projects such as LLOG’s Buckskin (2019) and BP’s Mad Dog 2
(2022) have each experienced ~60% reduction in overall project
costs from their original development plans
• 31 new fields have started producing since 2015
– 21 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(c)
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 August 2019 short term energy outlook forecast.
(b) Conference call quotes per Seeking Alpha. CVX comments per 2018 OTC conference.
(c) Platform capacity numbers are design capacity. Actual volumes, in some cases, have been higher.
(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."
"At Chevron, we see deep water as a material part of our overall upstream
portfolio, and as such we have put together the size, the scale and the
organizational capability needed to be successful in the Gulf of Mexico"
“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
(70 kbd)
Delta House
(100 kbd)
Lucius
(80 kbd)
Marco Polo
(120 kbd)
Shenzi
(100 kbd)
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
1,258 1,399
1,515 1,604
1,680 1,759
1,890
2,110
$-
$20
$40
$60
$80
$100
$120
-
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)
14
• 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 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
15
181 225 202 242 229
226 224 252 253 265
850 850 850 850 850
-
250
500
750
1,000
2Q18 3Q18 4Q18 1Q19 2Q19
kb
d
CHOPS Poseidon Available Capacity
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 Crude Oil Pipeline Solutions
• Uniquely positioned with maximum optionality and available capacity to
provide a “highway to shore” for deepwater producers
– CHOPS / Poseidon have ample capacity to service the continued
growth in Central Gulf production with a shore based solution
– 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 existing infrastructure well positioned to capture future
volumes
Uniquely Positioned with Available Capacity to Capture Additional Volumes
Directly connected to GEL Texas City, TX and GEL Raceland, LA terminals(a) Includes capacity from pumps that could be installed at Garden Banks 72.
CHOPS/
Poseidon
Platform
GB 72
CHOPS 30”
Poseidon 16” Poseidon 20”
Genesis owned & operated infrastructure
GC 19
3rd Party owned & operated infrastructure
16
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) in current
seam
• 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 1976
Feed Solution Dry Ore Dry Ore Solution
Products Dense Ash Dense Ash Light, Dense & Fine Ash, S-Carb Dense Ash
Approximate % Genesis 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
17
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
our competitors
18
CAGR
'13-'17 '17-'21
1.5% 2.1%
5.6% 4.1%
1.4% 2.4%
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 global natural supply expected to be online for
3+ years
• U.S. demand is relatively stable
• Domestic soda ash competitively positioned vs. global 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(a)
– 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 Sales Volume by Geography
25.227.8
30.9
2013 - 2017 CAGR:
2.6%
2017 - 2021 CAGR:
2.7%
Supply / Demand Balance Expected to Remain Tight
High Cost Synthetic
74%
Low Cost Natural
Production26%
North America43%
Latin America24%
Asia-Pacific29%
EMEA4%
19
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 10 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 our sales contracts are indexed to caustic soda prices
(cost-plus)
– Remaining ~25% of our 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
Annual
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
20
Onshore Facilities & Transportation Overview
Baton Rouge Complex Texas City Terminal Raceland Terminal Other Legacy Onshore Assets
• Underpinned by take-or-pay (“ToP”)
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 ToP contracts with
ExxonMobil
• Connection to Genesis owned
and operated CHOPS pipeline
• Destination point for various Gulf of
Mexico grades including CHOPS /
HOOPS
• Current 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
via ExxonMobil’s North Line
• 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
21
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 both internationally and domestically via Baton Rouge
Terminal (“BRT”) or Port Hudson Terminal
• 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 & load barges
• 556 kbbls total shell tank storage capacity
• Origination of 18 mile, 24” pipeline to Scenic Station, XOM refinery and
Baton Rouge Terminal
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
Terminal
Scenic Station
Terminal
Baton Rouge
Terminal
XOM Refinery
Baton Rouge Complex
22
959
823
572
372
272207
21
153
238
0
200
400
600
800
1,000
1,200
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
# o
f B
arg
es
Years
3848
123
36
21
92
12
0
20
40
60
80
100
120
140
160
0 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35+
# o
f B
arg
es
Years
Marine Transportation Overview
>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.
• Inland barges are all asphalt capable, heated barges primarily
utilized in black oil service
• American Phoenix currently under term contract with
investment grade counter party through September of 2020
• Business operates with largely fixed costs and a high degree
of operating leverage
• Potential increased demand driven by IMO 2020 and widening
spread between WTI & Brent crude oil
• Younger, more efficient fleet that is well positioned to benefit
from likely retirement of a significant amount of market
capacity
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
Appendix & Reconciliations
24
$-
$300
$600
$900
$1,200
$1,500
$1,800
2019 2020 2021 2022 2023 2024 2025 2026
Senior Notes Outstanding Under Senior Secured Credit Facility
• Committed to long-term leverage ratio of 4.00x(a)
• No near-term maturities
• Self-funding expected 2019 growth capital of <$50 million
• $1.7 billion senior secured credit facility
– Liquidity(b): ~$732 million
– Maturity: August 2022
– Maximum Leverage Ratio: 5.50x
Corporate Information
Genesis Energy, L.P.
(NYSE: GEL)
General Partner
Genesis Energy, LLC
NO IDRs
Series AConvertible
Preferred Units(25,336,778)
Class ACommon Units(122,539,221)
Class BCommon Units
(39,997)
100%
Ownership
Operating
Subsidiaries
Corporate Structure(b)Balance Sheet Overview
$750
$400$350
$550
$450
(a) As calculated under our senior secured credit facility.
(b) As of June 30, 2019.
(c) Outstanding amount under senior secured credit facility net of $9.6 million of cash and cash equivalents.
• Preferred Units Outstanding: 25,336,778(b)
• Issuance Price: $33.71 per unit
• Current Amount Outstanding: ~$854 million(b)
• Annual Distribution Rate: 8.75%
• Current Holders: KKR Global Infrastructure & GSO Capital
Partners
Preferred Equity OverviewLong-Term Debt Overview ($MM)(c)
Debt and Preferred Equity Profile & Corporate Structure
$957
5.625%
Notes
6.50%
Notes
6.25%
Notes
6.00%
Notes
6.75%
Notes
25
Environmental, Social & Governance (“ESG”)
• Genesis is committed to operating its business in a responsible and sustainable manner
– Understanding, monitoring, engaging and improving ESG metrics is central to our long-term strategy and value creation
• Increasingly aware of our impact on the environment, our communities and our workforce
– Managing our air emissions
– Understanding the impact to our local communities
– Reviewing the diversity of our workforce
• Board and management engagement throughout the development and implementation of a formal ESG program
• Long history of environmental stewardship combined with safe and reliable operations
Supporting Business Priorities & Our Investors Through ESG
Future InitiativesCurrent Activities
• Collect and organize data in 2019
• Retained third party firm to help Genesis evaluate its ESG
program and strategy
– Dedicated personnel to support ESG initiatives
– Conducting self-assessment and gap analysis; reinforce path
forward
• Understand our impact today and how it might look 5-10+
years from now
– Benchmarking against our peers on a variety of metrics
• Further integrate formal ESG initiatives in to everyday
operations
• Incentivize employees for continuous improvement
• Engage with ESG rating firms
• Enhance disclosures
26
Balance Sheet & Credit Profile
(a) We define Adjusted Debt as the amounts outstanding under our senior secured credit facility and senior unsecured notes (including any unamortized premiums or discounts) less the amount outstanding under our inventory financing
sublimit, less cash and cash equivalents on hand at the end of the period.
(b) Consolidated EBITDA for the four-quarter period ending with the most recent quarter, as calculated under our senior secured credit facility.
(c) This amount reflects the adjustment we are permitted to make under our senior secured credit facility for purposes of calculating compliance with our leverage ratio. It includes a pro rata portion of projected future annual EBITDA from
material projects (i.e. organic growth) and includes Adjusted EBITDA(using historical amounts and other permitted amounts) since the beginning of the calculation period attributable to each acquisition completed during such
calculation period, regardless of the date on which such acquisition was actually completed. This adjustment may not be indicative of future results.
(d) Adjusted Consolidated EBITDA for the four-quarter period ending with the most recent quarter, as calculated under our senior secured credit facility.
Leverage Ratio & Common Unit Distribution Coverage Ratio
($ in 000s) 6/30/2019
Senior secured credit facility $967,000
Senior Unsecured Notes 2,466,137
Less: Adjustment for short-term hedged inventory (30,300)
Less: Cash and cash equivalents (9,579)
Adjusted Debt(a) $3,393,258
Pro Forma LTM
6/30/2019
Consolidated EBITDA(b) $689,428
Bank EBITDA Adjustments(c) (5,242)
Adjusted Consolidated EBITDA(d) $684,186
Adjusted Debt / Adjusted Consolidated EBITDA 4.96x
2Q 2019
2Q 2019 Reported Available Cash Before Reserves $93,468
2Q 2019 Common Unit Distributions 67,419
Common Unit Distribution Coverage Ratio 1.39x
27
Reconciliation
Segment Margin
(a) We define Segment Margin as revenues less product costs, operating expenses, and segment general and administrative expenses, after eliminating gain or loss on sale of assets, plus or minus applicable Select Items.(b) This amount reflects the adjustment we are permitted to make under our senior secured credit facility for purposes of calculating compliance with our leverage ratio. It includes a pro rata portion of projected future annual EBITDA from
material projects (i.e. organic growth) and includes Adjusted EBITDA(using historical amounts and other permitted amounts) since the beginning of the calculation period attributable to each acquisition completed during such
calculation period, regardless of the date on which such acquisition was actually completed. This adjustment may not be indicative of future results.
($ in 000s)
LTM YTD
6/30/2019 2019 2019 2018 2017 2016
Net Income Attributable to Genesis Energy, LP $30,968 $40,120 $56,074 ($6,075) $82,647 $113,249
Corporate general and administrative expenses 65,359 13,502 24,602 64,683 60,029 40,905
Depreciation, depletion, amortization and accretion 311,379 66,104 146,041 323,208 262,021 230,563
Impairment expense 120,260 - - 120,260 - -
Interest expense, net 226,354 55,507 111,208 229,191 176,762 139,947
Tax expense (benefit) 1,412 143 545 1,498 (3,959) 3,342
Gain on sale of assets (42,264) - - (42,264) (40,311) -
Equity compensation adjustments (21) - 65 (112) (940) (317)
Provision for leased items no longer in use (987) (182) (372) (476) 12,589 -
Other - - - - 2,962 -
Plus (minus) Select Items, net 13,880 8,918 19,513 22,845 42,743 41,882
Total Segment Margin(a)$726,340 $184,112 $357,676 $712,758 $594,543 $569,571
Bank EBITDA Adjustments(b) (5,242)
Total Adjusted Segment Margin(a)$721,098
3 months ended
June 30,
28
Reconciliation
(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 ~$42.3 million.
Available Cash Before Reserves
($ in 000s)
LTM YTD
6/30/2019 2019 2019 2018 2017 2016
Net income attributable to Genesis Energy, L.P. $30,968 $40,120 $56,074 ($6,075) $82,647 $113,249
Interest expense, net 226,354 55,507 111,208 229,191 176,762 139,947
Income tax expense (benefit) 1,412 143 545 1,498 (3,959) 3,342
Impairment expense 120,260 - - 120,260 - -
Depreciation, depletion, amortization, and accretion 311,379 66,104 146,041 323,208 262,021 230,563
EBITDA $690,373 $161,874 $313,868 $668,082 $517,471 $487,101
Plus (minus) Select Items, net 37,896 12,270 24,286 47,949 59,295 45,128
Adjusted EBITDA, net $728,269 $174,144 $338,154 $716,031 $576,766 $532,229
Maintenance capital utilized (23,505) (6,425) (12,550) (19,955) (13,020) (7,696)
Interest expense, net (226,354) (55,507) (111,208) (229,191) (176,762) (139,947)
Cash tax expense (745) (60) (210) (835) (100) (1,200)
Cash distribution to preferred unitholders (24,822) (18,684) (24,822) - - -
Other 1 - - - 2,148 855
Available Cash before Reserves(a)$452,844 $93,468 $189,364 $466,050 $389,032 $384,241
Less: One-time Gain on Sale of Assets (42,264) (42,264)
Adjusted Available Cash before Reserves $410,580 $423,786
Common Unit Distributions $268,450 $67,419 $134,838 $262,320 $300,625 $321,717
Common Unit Distribution Coverage Ratio(b) 1.53x 1.39x 1.40x 1.62x 1.29x 1.19x
3 months ended
June 30,
29
Reconciliation
Adjusted Debt & Adjusted Consolidated EBITDA
(a) We define Adjusted Debt as the amounts outstanding under our senior secured credit facility and senior unsecured notes (including any unamortized premiums or discounts) less the amount outstanding under our inventory financing
sublimit, less cash and cash equivalents on hand at the end of the period.
(b) Consolidated EBITDA for the four-quarter period ending with the most recent quarter, as calculated under our senior secured credit facility.
(c) This amount reflects the adjustment we are permitted to make under our senior secured credit facility for purposes of calculating compliance with our leverage ratio. It includes a pro rata portion of projected future annual EBITDA from
material projects (i.e. organic growth) and includes Adjusted EBITDA(using historical amounts and other permitted amounts) since the beginning of the calculation period attributable to each acquisition completed during such
calculation period, regardless of the date on which such acquisition was actually completed. This adjustment may not be indicative of future results.
(d) Adjusted Consolidated EBITDA for the four-quarter period ending with the most recent quarter, as calculated under our senior secured credit facility.
($ in 000s)
LTM
Long-term debt 6/30/2019 2018 2017 2016
Senior secured credit facility $967,000 $970,100 $1,099,200 $1,278,200
Senior Unsecured Notes 2,466,137 2,462,363 2,598,918 1,813,169
Less: Adjustment for short-term hedged inventory (30,300) (17,800) (29,000) (74,500)
Less: Cash and cash equivalents (9,579) (10,300) (9,041) (7,029)
Adjusted Debt(a)
$3,393,258 $3,404,363 $3,660,077 $3,009,840
Consolidated EBITDA(b)
$689,428 $670,957 $561,961 $532,231
Bank EBITDA Adjustments(c)
(5,242) (7,351) 123,815 44,008
Adjusted Consolidated EBITDA(d)
$684,186 $663,606 $685,776 $576,239
Adjusted Debt / Adjusted Consolidated EBITDA 4.96x 5.13x 5.34x 5.22x
30
Reconciliation
(a) Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. For purposes of our Non-GAAP measures, we add those amounts
in the period of payment and deduct them in the period in which GAAP recognizes them.
(b) Represents the net effect of adding cash receipts from direct financing leases and deducting expenses relating to direct financing leases.
(c) Represents the net effect of adding distributions from equity investees and deducting earnings of equity investees net to us.
(d) Represents all Select Items applicable to Segment Margin, Adjusted EBITDA and Available Cash before Reserves.
(e) Represents transaction costs relating to certain merger, acquisition, transition and financing transactions incurred in acquisition activities.
(f) Represents Select Items applicable to Adjusted EBITDA and Available Cash before Reserves.
Select Items
($ in 000s)
LTM YTD
6/30/2019 2019 2019 2018 2017
Applicable to all Non-GAAP Measures
Differences in timing of cash receipts for certain contractual arrangements (a) ($14,285) ($9,848) ($12,135) ($6,629) ($17,540)
Adjustment regarding direct financing leases (b) 8,017 2,079 4,107 7,633 6,921
Revaluation of certain liabilities and assets - - - - -
Unrealized (gain) loss on derivative transactions excluding fair value hedges,
net of changes in inventory value (347) 9,065 12,930 (10,455) 9,942
Loss on debt extinguishment - - - 3,339 6,242
Adjustment regarding equity investees(c) 19,497 5,675 10,503 28,088 31,852
Other 998 1,947 4,108 869 5,326
Sub-total Select Items, net (Segment Margin)(d) $13,880 $8,918 $19,513 $22,845 $42,743
Applicable only to Adjusted EBITDA and Available Cash before Reserves
Certain transaction costs(e) 4,978 341 458 9,103 16,833
Equity compensation adjustments (249) 0 (137) (207) (1,227)
Other 19,287 3,011 4,452 16,208 946
Total Select Items, net(f)$37,896 $12,270 $24,286 $47,949 $59,295
3 months ended
June 30,
