HOUSTON--(Business Wire)--
Genesis Energy, L.P. (AMEX:GEL) reported today net income for the
second quarter of 2008 of $7.3 million, or $0.17 per unit. This
compares to a loss in the 2007 period of $1.4 million, or $0.09 per
unit.
Net income for the first six months of 2008 was $9.0 million, or
$0.21 per unit. Net income was $0.2 million, or $0.02 per unit, for
the first six months of 2007.
Grant Sims, CEO said, "We are very pleased with the solid
performance reported by all of our business segments and the
contributions of our dedicated employees. For the second quarter of
2008, we generated total Available Cash before reserves, a non-GAAP
measure, of $26.2 million." Available Cash before reserves is a
non-GAAP measure that is defined and reconciled later in this press
release to its most directly comparable GAAP financial measure, net
cash provided by operating activities. Net cash provided by operating
activities was $5.3 million for the second quarter of 2008.
"The second quarter results reflect our continuing integration of
the assets and businesses we acquired in the third quarter of 2007
from the Davison family with Genesis' historic operations. On May 30,
2008, we completed two transactions representing an aggregate $250
million investment in two CO2 pipelines with Denbury Resources Inc.
(NYSE: DNR), the indirect owner of our general partner. We believe
those investments will significantly contribute in future periods to
our total fee based margins. In July, we completed the acquisition of
the inland marine transportation business of Grifco Transportation,
Ltd., through a 49% owned joint venture with certain members of the
Davison family, and closed a $75 million credit facility at the joint
venture level in an otherwise challenging market for new bank credits.
While we clearly believe the inland marine joint venture is an
outstanding stand-alone investment, we are confident those operations
should significantly enhance the utilization and stability of our
other assets and operations," Mr. Sims added.
"For meaningful comparative purposes, we focused on the change in
our performance from the first quarter of 2008 rather than the second
quarter of 2007 since the Davison businesses were not reported
therein. Segment margin for the second quarter of 2008 was $37.0
million; an increase of $9.7 million as compared to the first quarter
of 2008. The increase in segment margin resulted from increased
contribution from all segments of our business, with the drop down
transactions with Denbury adding $2.1 million to our pipeline
transportation segment margin, reflecting only one month of reported
financial results."
Mr. Sims concluded, "On August 14, 2008, we will pay a total
distribution of $13.3 million, comprised of $12.4 million or $0.315
per unit with respect to our limited partner units and $0.9 million to
our general partner including its incentive distribution, attributable
to the second quarter of 2008. This is the twelfth consecutive quarter
with an increase in the per unit distribution. Given the $26.2 million
of total Available Cash before reserves generated during the second
quarter, our total distribution coverage ratio is approximately 1.97
times."
Financial Results
Quarterly Comparison - 2008 Second Quarter to 2007 Second Quarter
Net income for the 2008 second quarter was $7.3 million or $0.17
per unit. For the 2007 second quarter, we sustained a loss of $1.4
million, or $0.09 per unit.
Segment margin is defined and reconciled later in this press
release to income before income taxes and minority interest. The
following table presents selected financial information by segment for
the three month reporting periods:
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*T
Pipeline Refinery Industrial Supply &
Transportation Services Gases Logistics Total
-------------- -------- ---------- --------- --------
Three Months
Ended June 30,
2008
----------------
Segment margin
excluding
depreciation
and
amortization
(a) $ 6,828 $17,616 $3,043 $ 9,492 $ 36,979
Capital
expenditures $ 77,246 $ 559 $ - $ - $ 77,805
Maintenance
capital
expenditures $ - $ 208 $ - $ - $ 208
Revenues:
External
customers $ 8,885 $55,727 $4,450 $569,477 $638,539
Intersegment 2,001 - - - 2,001
-------------- -------- ---------- --------- --------
Total revenues
of reportable
segments $ 10,886 $55,727 $4,450 $569,477 $640,540
============== ======== ========== ========= ========
Three Months
Ended June 30,
2007
----------------
Segment margin
excluding
depreciation
and
amortization
(a) $ 2,227 $ - $2,958 $ 1,427 $ 6,612
Capital
expenditures $ 337 $ - $ - $ 42 $ 379
Maintenance
capital
expenditures $ 337 $ - $ - $ 42 $ 379
Revenues:
External
customers $ 5,347 $ - $3,946 $190,735 $200,028
Intersegment 988 - - - 988
-------------- -------- ---------- --------- --------
Total revenues
of reportable
segments $ 6,335 $ - $3,946 $190,735 $201,016
============== ======== ========== ========= ========
*T
(a) Segment margin was calculated as revenues less cost of sales
and operating expenses. It includes our share of the operating income
of our investment in joint ventures. A reconciliation of segment
margin to income before income taxes is presented for periods in the
table at the end of this release.
Pipeline transportation segment margin increased by $4.6 million
between the second-quarter periods. Throughput increases on all three
of our crude oil pipeline systems, combined with higher tariff rates
contributed $0.5 million of the increased segment margin, with $1.4
million of the remainder primarily due to the effects of higher crude
oil market prices on volumetric gains. The CO2 pipelines acquired from
Denbury contributed $2.1 million to segment margin for the one month
since the acquisition. Decreased operating costs contributed to the
improved segment margin, although this decline was related to a
non-cash credit for our stock appreciation rights plan in 2008.
Our refinery services segment was acquired in the transaction with
the Davison family, therefore it is not included in the second quarter
of 2007.
Segment margin from industrial gases activities showed a slight
increase primarily related to volumes sold to our CO2 industrial
customers. Volumes sold increased 6.6%, and the average sales price of
CO2 increased 5.8%, primarily due to variations in the volumes sold
under contracts with different pricing terms.
Segment margin from supply and logistics activities reflects an
increase between the second quarters of 2008 and 2007 of $8.1 million,
with approximately $7.0 million of that amount due to the Davison
acquisition. Our historical crude oil related supply and logistics
operations showed an improvement of $1.1 million compared to the 2007
second quarter. Much of that improvement resulted from favorable
fluctuations in crude oil price differentials for grades of crude oil.
General and administrative expenses increased $3.6 million when
comparing the second quarter periods. Approximately $2.8 million of
that increase related to the administrative personnel and costs at the
Davison locations, with the remainder attributable to increased
professional service fees, headcount increases at our headquarters
office and bonus plan expense totaling a combined $3.2 million.
Offsetting some of these higher costs was a decrease in the expense
for our stock appreciation rights plan of $2.4 million between the
quarters due to the decrease in our unit price.
The $14.7 million increase in our depreciation and amortization
expenses between 2008 and 2007 second quarters is substantially all
attributable to our acquisition of the assets in the Davison
transaction.
Interest costs in the 2008 second quarter were $1.7 million higher
than in the prior year. This increase is due partly to the rise in our
average outstanding borrowings of $154.8 million, offset in part by a
reduction of 4.4% in our average interest rate. The increase in our
outstanding debt at June 30, 2008 is primarily a function of borrowing
$225 million to fund the acquisition of CO2 pipelines from Denbury.
Quarterly Comparison - 2008 Second Quarter to 2008 First Quarter
Genesis has owned the Davison businesses for three full quarters
as of June 30, 2008. As shown in the table below, segment margin
increased in all segments between the first and second quarters of
2008.
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Second First Six Months
Quarter Quarter Ended
2008 2008 June 30, 2008
-------------------------------------------
Segment Margin:
Pipeline Transportation $ 6,828 $ 4,643 $ 11,471
Refinery Services 17,616 13,588 31,204
Industrial Gases 3,043 2,776 5,819
Supply & Logistics 9,492 6,261 15,753
-------------------------------------------
Total Segment Margin $ 36,979 $ 27,268 $ 64,247
===========================================
*T
Pipeline transportation segment margin includes $2.1 million
related to the CO2 pipelines acquired from Denbury on May 30, 2008,
accounting for the majority of the increase in that segment's
contribution. Refinery services segment margin improved as a result of
a 12% increase in sodium hydrosulfide (NaHS) sales volumes and a 32%
increase in the contribution margin per unit from those sales. The
improvement in industrial gases segment between the first two quarters
of 2008 resulted from normal seasonal fluctuations in our CO2 sales to
industrial customers. Lastly, the supply and logistics segment
experienced significant improvement in segment margin due to increased
availability of products for blending and an improvement in the
availability of barges and their ability, given river levels, to
access our terminals to move product out of our facilities.
Operational difficulties at some of the refineries from whom we
purchase refined products resulted in reduced volumes being available
to us during the first quarter.
Year-to-Date Comparison
Segment margin for the six months ended June 30, 2008 increased
$50.6 million when compared to the same period in 2007. As illustrated
in the table below, approximately $31.2 million of this increase is
attributable to the refinery services segment acquired in the Davison
transaction that was completed in July 2007. Approximately $10.6
million of the increase in segment margin in the supply and logistics
segment is attributable to the operations acquired from the Davison
family. Of the remaining $8.8 million increase in total segment
margin, $6.4 million is attributable to pipeline transportation, $0.2
million to industrial gases and the remaining $2.2 million to the
supply and logistics operations that existed before the Davison
acquisition.
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Pipeline Refinery Industrial Supply &
Transportation Services Gases (a) Logistics Total
-------------- -------- ---------- --------- ----------
Six Months
Ended June
30, 2008
--------------
Segment margin
excluding
depreciation
and
amortization
(a) $ 11,471 $ 31,204 $ 5,819 $ 15,753 $ 64,247
Capital
expenditures $ 78,524 $ 1,710 $ 2,210 $ 4,603 $ 87,047
Maintenance
capital
expenditures $ 165 $ 489 $ - $ 330 $ 984
Net fixed and
other long-
term assets $ 286,593 $449,637 $46,387 $143,980 $ 926,597
Revenues:
External
customers $ 15,673 $ 99,639 $ 8,320 $999,595 $1,123,227
Intersegment 3,498 - - - 3,498
-------------- -------- ---------- --------- ----------
Total revenues
of reportable
segments $ 19,171 $ 99,639 $ 8,320 $999,595 $1,126,725
============== ======== ========== ========= ==========
Six Months
Ended June
30, 2007
--------------
Segment margin
excluding
depreciation
and
amortization
(a) $ 5,095 $ - $ 5,572 $ 3,026 $ 13,693
Capital
expenditures $ 559 $ - $ - $ 135 $ 694
Maintenance
capital
expenditures $ 559 $ - $ - $ 135 $ 694
Net fixed and
other long-
term assets $ 38,964 $ - $48,970 $ 8,309 $ 96,243
Revenues:
External
customers $ 11,007 $ - $ 7,443 $364,014 $ 382,464
Intersegment 2,116 - - - 2,116
-------------- -------- ---------- --------- ----------
Total revenues
of reportable
segments $ 13,123 - $ 7,443 $364,014 $ 384,580
============== ======== ========== ========= ==========
*T
(a) Segment margin was calculated as revenues less cost of sales
and operating expenses. It includes our share of the operating income
of our investment in joint ventures. A reconciliation of segment
margin to income before income taxes is presented for periods in the
table at the end of this release.
Pipeline segment margin increased $6.4 million, with $2.1 million
attributable to the CO2 pipelines acquired from Denbury, $3.3 million
to increased volumes and tariffs on the crude oil pipelines and the
effects of higher crude oil prices on pipeline loss allowance volumes,
and $0.8 million to a reduction in pipeline operating costs. Volumes
increased on all three crude oil pipeline systems. Annual tariff
increases on the Mississippi and Jay pipeline systems also increased
revenues.
The supply and logistics operations that existed before the
Davison transaction experienced favorable variations in crude oil
price differentials as well as volumetric gains. Costs of operating
our truck fleet, primarily fuel costs, reduced the effects of these
favorable variations.
General and administrative costs, depreciation and amortization
and interest costs all increased between the six-month periods as a
function of the growth in our operations. Additionally, we borrowed
$225 million under our existing credit facility to fund the CO2
pipeline acquisitions.
We have increased our distribution in the last twelve consecutive
quarters, with the most recent increase of $0.015 per unit for the
distribution to be paid for the second quarter of 2008.
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Per Unit
Distribution For Date Paid Amount
---------------------- ---------------- --------------
Second quarter 2008 August 2008 $0.315
First quarter 2008 May 2008 $0.300
Fourth quarter 2007 February 2008 $0.285
Third quarter 2007 November 2007 $0.270
Second quarter 2007 August 2007 $0.230
First quarter 2007 May 2007 $0.220
*T
The second quarter 2008 distribution will be paid August 14, 2008
to unitholders of record on August 7, 2008. We generated Available
Cash before reserves (a non-GAAP measure) of $26.2 million during the
second quarter of 2008. Net cash flows provided by operating
activities were $5.3 million for the second quarter period. (Please
see the accompanying schedules for a reconciliation of Available Cash
before reserves, a non-GAAP measure, to net cash flow provided by
operations, the GAAP measure.)
Available Cash
Several adjustments to net income are required to calculate
Available Cash before reserves. The calculation of Available Cash
before reserves for the quarter ended June 30, 2008 is as follows (in
thousands):
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*T
Three Months Ended
June 30, 2008
--------------------
Net income $ 7,328
Depreciation and amortization 16,721
Cash received from direct financing leases not
included in income 397
Cash effects of sales of certain assets 181
Effects of available cash generated by
investments in joint ventures not included in
income 643
Cash effects of stock appreciation rights plan (113)
Loss on asset disposals 76
Deferred tax expense 700
Other non-cash items 460
Maintenance capital expenditures (208)
--------------------
Available Cash before reserves $ 26,185
====================
*T
Earnings Conference Call
We will broadcast our Earnings Conference Call on Wednesday,
August 6, 2008, at 10:00 a.m. Central time. This call can be accessed
at www.genesisenergylp.com. Choose the Investor Relations button.
Listeners should go to this website at least fifteen minutes before
this event to download and install any necessary audio software. For
those unable to attend the live broadcast, a replay will be available
beginning approximately one hour after the event and remain available
on our website for 30 days. There is no charge to access the event.
Genesis Energy, L.P. is a diversified midstream energy master
limited partnership headquartered in Houston, Texas. Genesis engages
in four business segments. The Pipeline Transportation Division is
engaged in the pipeline transportation of crude oil, carbon dioxide
and, to a lesser extent, natural gas. The Refinery Services Division
primarily processes sour gas streams to remove sulfur at refining
operations, principally located in Texas, Louisiana, and Arkansas. The
Supply and Logistics Division is engaged in the transportation,
storage and supply of energy products, including crude oil and refined
products. The Industrial Gases Division produces and supplies
industrial gases, such as carbon dioxide and syngas. Genesis'
operations are primarily located in Texas, Louisiana, Arkansas,
Mississippi, Alabama, and Florida.
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Although we believe that our
expectations are based upon reasonable assumptions, we can give no
assurance that our goals will be achieved. Important factors that
could cause actual results to differ materially from those in the
forward looking statements herein include the timing and extent of
changes in commodity prices for oil, ability to obtain adequate credit
facilities, managing operating costs, completion of capital projects
on schedule and within budget, consummation of accretive acquisitions,
capital spending, environmental risks, government regulation, our
ability to meet our stated business goals and other risks noted from
time to time in our Securities and Exchange Commission filings. Actual
results may vary materially. We undertake no obligation to publicly
update or revise any forward-looking statement.
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*T
Genesis Energy, L.P.
Summary Consolidated Statements of Operations - Unaudited
(in thousands except per unit amounts and volumes)
Three Months Three Months
Ended Ended
June 30, June 30,
2008 2007
------------ ------------
Revenues $ 640,540 $ 201,016
Cost of sales 603,545 194,697
General and administrative expenses 9,166 5,600
Depreciation and amortization expense 16,721 2,046
Net loss (gain) on disposal of surplus
assets 76 (8)
------------ ------------
OPERATING INCOME (LOSS) 11,032 (1,319)
Equity in (losses) earnings of joint
ventures (16) 293
Interest expense, net (2,039) (321)
------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES 8,977 (1,347)
Income tax expense (1,648) (25)
Minority Interest (1) -
------------ ------------
NET INCOME (LOSS) $ 7,328 $ (1,372)
============ ============
NET INCOME (LOSS) PER COMMON UNIT - BASIC
AND DILUTED $ 0.17 $ (0.09)
============ ============
Volume data:
Crude oil pipeline barrels per day (total) 67,434 57,127
Mississippi Pipeline System barrels per day 24,873 20,496
Jay Pipeline System barrels per day 11,828 11,602
Texas Pipeline System barrels per day 30,733 25,029
CO2 sales Mcf per day 79,968 75,039
Units Data:
Common units held by general partner and
its affiliates 4,028,096 1,019,441
Common units held by Davison family 12,619,069 -
Common units held by others 22,805,140 12,765,000
------------ ------------
Total common units outstanding 39,452,305 13,784,441
============ ============
*T
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Genesis Energy, L.P.
Summary Consolidated Statements of Operations - Unaudited
(in thousands except per unit amounts and volumes)
Six Months Six Months
Ended Ended
June 30, June 30,
2008 2007
------------ ------------
Revenues $ 1,126,725 $ 384,580
Cost of sales 1,062,640 371,441
General and administrative expenses 17,690 8,928
Depreciation and amortization expense 33,510 3,974
Net loss (gain) on disposal of surplus
assets 94 (24)
------------ ------------
OPERATING INCOME 12,791 261
Equity in earnings of joint ventures 162 554
Interest expense, net (3,708) (547)
------------ ------------
INCOME BEFORE INCOME TAXES 9,245 268
Income tax expense (271) (55)
Minority Interest (1) -
------------ ------------
NET INCOME $ 8,973 $ 213
============ ============
NET INCOME PER COMMON UNIT - BASIC AND
DILUTED $ 0.21 $ 0.02
============ ============
Volume data:
Crude oil pipeline barrels per day (total) 66,733 57,627
Mississippi Pipeline System barrels per day 23,864 19,983
Jay Pipeline System barrels per day 13,222 12,230
Texas Pipeline System barrels per day 29,647 25,414
CO2 sales Mcf per day 76,515 71,120
Units Data:
Common units held by general partner and its
affiliates 4,028,096 1,019,441
Common units held by Davison family 12,619,069 -
Common units held by others 22,805,140 12,765,000
------------ ------------
Total common units outstanding 39,452,305 13,784,441
============ ============
*T
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Genesis Energy, L.P.
Consolidated Balance Sheets - Unaudited
(in thousands)
June 30, December 31,
2008 2007
------------ -------------
ASSETS
Cash $ 9,187 $ 11,851
Accounts receivable 235,229 180,099
Inventories 18,783 15,988
Net Investment in direct financing leases,
net of unearned income 3,639 609
Other current assets 5,807 5,693
------------ -------------
Total current assets 272,645 214,240
Net property 174,442 102,000
Net Investment in direct financing leases,
net of unearned income 180,567 4,764
CO2 contracts 26,700 28,916
Joint ventures and other investments 19,687 18,448
Net intangible assets 187,828 211,050
Goodwill 325,045 320,708
Other assets 12,328 8,397
------------ -------------
Total Assets $ 1,199,242 $ 908,523
============ =============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 197,451 $ 157,261
Accrued liabilities 23,332 17,537
------------ -------------
Total current liabilities 220,783 174,798
Long-term debt 319,000 80,000
Deferred tax liabilities 14,817 20,087
Other liabilities 1,290 1,264
Minority interest 574 570
Partners' capital 642,778 631,804
------------ -------------
Total Liabilities and Partners' Capital $ 1,199,242 $ 908,523
============ =============
*T
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*T
Genesis Energy, L.P.
Summary Consolidated Statements of Cash Flows - Unaudited
(in thousands)
Six Months Six Months
Ended Ended
June 30, June 30,
2008 2007
----------- -----------
Net income $ 8,973 $ 213
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 33,510 3,974
Amortization of credit facility issuance
costs 535 273
Amortization of unearned income and initial
direct costs on direct financing leases (1,772) (315)
Deferred and other tax liabilities (926) -
Payments received under direct financing
leases 594 594
Equity in earnings of joint ventures (162) (554)
Distributions from joint ventures - return
on investment 815 833
Loss (gain) on asset disposals 94 (24)
Non-cash effects of unit-based compensation
plans (619) 3,340
Other non-cash items (112) (992)
Changes to components of working capital (18,234) (4,287)
----------- -----------
Net cash provided by operating activities 22,696 3,055
----------- -----------
Payments to acquire fixed assets (9,543) (718)
CO2 pipeline transactions and related costs (228,833) -
Distributions from joint ventures - return of
investment 438 361
Investments in joint ventures and other
investments (2,210) -
Proceeds from disposal of assets 426 195
Prepayment on purchase of Port Hudson assets - (8,100)
Other, net (1,272) (1,711)
----------- -----------
Net cash used in investing activities (240,994) (9,973)
----------- -----------
Bank borrowings 344,100 77,900
Bank repayments (105,100) (63,100)
Other, net (367) (319)
General partner contributions 510 -
Distributions to common unitholders (22,378) (5,927)
Distribution to general partner and minority
interest owner (1,131) (122)
----------- -----------
Net cash provided by financing activities 215,634 8,432
----------- -----------
Net (decrease) increase in cash and cash
equivalents (2,664) 1,514
Cash and cash equivalents at beginning of
period 11,851 2,318
----------- -----------
Cash and cash equivalents at end of period $ 9,187 $ 3,832
=========== ===========
*T
-0-
*T
Genesis Energy, L.P.
Reconciliations
----------------------------------------------------------------------
SEGMENT MARGIN EXCLUDING DEPRECIATION AND AMORTIZATION
RECONCILIATION TO INCOME BEFORE INCOME TAXES AND MINORITY INTEREST
Three Months Three Months
Ended Ended
June 30, 2008 June 30, 2007
------------- -------------
(in thousands)
Segment margin excluding depreciation and
amortization $ 36,979 $ 6,612
General and administrative expenses (9,166) (5,600)
Depreciation and amortization (16,721) (2,046)
Net (loss) gain on disposal of surplus
assets (76) 8
Interest expense, net (2,039) (321)
------------- -------------
Income before income taxes and minority
interest $ 8,977 $ (1,347)
============= =============
Six Months Six Months
Ended Ended
June 30, 2008 June 30, 2007
------------- -------------
(in thousands)
Segment margin excluding depreciation and
amortization $ 64,247 $ 13,693
General and administrative expenses (17,690) (8,928)
Depreciation and amortization (33,510) (3,974)
Net (loss) gain on disposal of surplus
assets (94) 24
Interest expense, net (3,708) (547)
------------- -------------
Income before income taxes and minority
interest $ 9,245 $ 268
============= =============
*T
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GAAP to Non-GAAP Financial Measure Reconciliation
----------------------------------------------------------------------
AVAILABLE CASH BEFORE RESERVES RECONCILIATION TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
Three Months Ended
June 30, 2008
-------------------
(in thousands)
Net cash flows from operating activities (GAAP
measure) $ 5,313
Adjustments to reconcile net cash flow provided by
operating activities to Available Cash before
reserves:
Maintenance capital expenditures (208)
Proceeds from asset sales 181
Amortization of credit facility issuance costs (267)
Effects of available cash generated by
investments in joint ventures not included in
cash flows from operating activities 329
Available cash from NEJD pipeline not yet
received and included in cash flows from
operating activities 1,722
Net effect of changes in operating accounts not
included in calculation of Available Cash 19,115
-------------------
Available Cash before reserves (Non-GAAP measure) $ 26,185
===================
*T
This press release and the accompanying schedules include a
non-generally accepted accounting principle ("non-GAAP") financial
measures of available cash. The accompanying schedule provides a
reconciliation of this non-GAAP financial measure to its most directly
comparable financial measure calculated in accordance with generally
accepted accounting principles in the United States of America
("GAAP"). Our non-GAAP financial measure should not be considered as
an alternative to GAAP measures of liquidity or financial performance.
We believe that investors benefit from having access to the same
financial measures being utilized by management, lenders, analysts and
other market participants.
Available Cash. Available Cash before reserves is a liquidity
measure used by management to compare cash flows generated by us to
the cash distribution paid to our limited partners and general
partner. This is an important financial measure to the public
unitholders since it is an indicator of our ability to provide a cash
return on their investment. Specifically, this financial measure aids
investors in determining whether or not we are generating cash flows
at a level that can support a quarterly cash distribution to the
partners. Lastly, Available Cash before reserves (also referred to as
distributable cash flow) is a quantitative standard used throughout
the investment community with respect to publicly-traded partnerships.
We define available cash as net income or loss plus: (1)
depreciation and amortization expense; (2) cash proceeds from the sale
of certain assets; (3) the addition of losses or subtraction of gains
relating to the sale of assets; (4) payments under direct financing
leases in excess of the amount recognized as income; (5) the addition
of losses or subtraction of gains on derivative financial instruments;
(6) available cash generated by equity method investments; (7) the
subtraction of maintenance capital expenditures incurred to replace or
enhance partially or fully depreciated assets so as to sustain the
existing operating capacity or efficiency of our assets and extend
their useful lives; and (8) the addition of losses or subtraction of
gains relating to other non-cash amounts affecting net income for the
period.
Genesis Energy, L.P.
Ross A. Benavides, 713-860-2528
Chief Financial Officer
Copyright Business Wire 2008
