Genesis Energy, L.P. · NYSE:GEL
Genesis Energy, L.P — Barclays Midstream and Clean Infrastructure Corporate Access Days 2022
39 slides from Genesis Energy, L.P's conference presentation, March 2022
Slide 1: Barclays Midstream and Clean Infrastructure Corporate Access Days
Barclays Midstream and Clean Infrastructure Corporate Access Days March 2022
Slide 2: Disclosures & Company Information
Disclosures & Company Information Genesis Energy, L.P. NYSE: GEL Investor Relations Contact Common Unit Market Value ~$1.5 billion(a) InvestorRelations@genlp.com (713) 860-2500 Convertible Preferred Equity ~$0.9 billion(a) Corporate Headquarters Enterprise Value ~$5.3 billion(a) 919 Milam Street, Su
Slide 3: Genesis Energy Investment Overview
Genesis Energy Investment Overview • Genesis Energy, L.P. operates a diversified collection of high-quality infrastructure assets and world-class businesses with significant upside and operating leverage – Timing confirmed by producers for first production from BP’s Argos and Murphy’s Kings Quay fac
Slide 4: Key Investment Considerations
Key Investment Considerations Market Leading Businesses with High Barriers to Entry 1 • 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
Slide 5: Market Leading Businesses / High Barriers to Entry
Market Leading Businesses / High Barriers to Entry Genesis Total LTM Offshore Pipeline Transportation Segment Margin $618 MM(a) • Practically irreplaceable integrated asset footprint focused on transporting crude oil produced from the deepwater Central Gulf of Mexico to multiple onshore 29% markets
Slide 6: Diversified & Long-Life Infrastructure Assets
Diversified & Long-Life Infrastructure Assets Key Business Fundamentals Long-Life Infrastructure Assets Offshore Pipeline Transportation • Deepwater crude oil production growth • ~2,400 miles of pipelines and platforms focused on deepwater Gulf of Mexico • Continued new developments and competitive
Slide 7: Operating Leverage with Minimal Capital Required
Operating Leverage with Minimal Capital Required Growth Drivers Operating Leverage Offshore Pipeline Transportation • Anticipated increase in Gulf of Mexico crude oil volumes • Existing connectivity and excess capacity to driving both near-term and long-term margin contribution capture incremental v
Slide 8: Financial Guidance and Segment Outlook
Financial Guidance and Segment Outlook Offshore Pipeline Sodium Minerals & Onshore Facilities Marine Genesis Energy, L.P. Transportation Sulfur Services & Transportation Transportation • Expect segment • Tightening global • Future segment • Refinery utilization • Excited about margin to increase sup
Slide 9: Unitholder Alignment / Long-Term Value Creation
Unitholder Alignment / Long-Term Value Creation Unitholder Alignment Long-Term Value Creation • NO incentive distribution rights (“IDRs”) with non-economic • Management has a track record of acquiring and developing General Partner (no sponsor) world class infrastructure assets at attractive valuati
Slide 10: Actively Participating in Green Activities
Actively Participating in Green Activities Helping Facilitate the Energy Transition & Lower Emission Activities Sodium Minerals & Sulfur Services • Our soda ash business should increasingly participate in multiple renewable energy themes moving forward – Demand for soda ash driven by production of n
Slide 11: Business Segment Detail
Business Segment Detail
Slide 12: Offshore Pipeline Transportation Overview
Offshore Pipeline Transportation Overview World Class Footprint in Leading North American Basin Long-Term Value Creation Stability and Future Growth Historical CHOPS & Poseidon gross daily volumes • Beginning in 2010 with the acquisition of 50% interest in 1,000 Hurricane bridge volumes(b) $120 CHOP
Slide 13: Offshore Pipeline Transportation Asset Summary
Offshore Pipeline Transportation Asset Summary Leading Gulf of Mexico Midstream Service Provider • ~2,400 miles of pipelines and associated platforms primarily Deepwater to Shore Crude Oil Pipeline Solutions located in the Central Gulf of Mexico CHOPS Poseidon Eugene Island Odyssey • Leading indepen
Slide 14: Gulf of Mexico Crude Oil Production
Gulf of Mexico Crude Oil Production Continued Growth in the Deepwater Gulf of Mexico Crude Oil Production(a) • Deepwater Gulf of Mexico crude oil production increased by ~74% from 2013 – 2021E Non-Deepwater Deepwater (>1,000 ft.) Avg. Crude Price (WTI) 2,500 $120 • Production increase has been prima
Slide 15: Central Gulf of Mexico Overview
Central Gulf of Mexico Overview Robust Inventory of Future Growth Ram Powell Petronius Stonefly Horn Mountain Delta House Nearly Headless Nick Lobster Spruance Selected Recent Developments / Key FID Katmai Bullwinkle • Caicos Field Producer First Oil Droshky • Khaleesi / Mormont Baldpate Allegheny •
Slide 16: Gulf of Mexico - Active Federal Leases
Gulf of Mexico - Active Federal Leases Proximity to Existing Leases Creates Stability and Opportunity • Robust number of active Federal leases in the Gulf of Mexico – Since 2020, volumes were produced from ~20% of the active Federal leases in the Central Deepwater Gulf of Mexico (a) – Remaining ~80%
Slide 17: Gulf of Mexico – Lower Carbon Intensity
Gulf of Mexico – Lower Carbon Intensity Regulatory Oversight Helps Drive Lower Carbon Footprint Gulf of Mexico Plays Leading Role(a) Significant Regulatory Oversight(b) • Barrels produced from the Gulf of Mexico are the least • The leasing and operations activities in the GOM are subject emissions i
Slide 18: Central Gulf of Mexico Midstream Dynamics
Central Gulf of Mexico Midstream Dynamics Uniquely Positioned with Available Capacity to Capture Additional Volumes • Uniquely positioned with maximum optionality and available capacity to CHOPS / Poseidon Available Capacity to Shore(a)(b) provide a “highway to shore” for deepwater producers 1,000 8
Slide 19: Case Study: Poseidon Oil Pipeline
Case Study: Poseidon Oil Pipeline Irreplaceable Crude Oil Pipeline in the Central Gulf of Mexico • Poseidon Oil Pipeline is a high barrier to entry pipeline transporting Steady Volumes Through Commodity Cycles central Gulf of Mexico production to key markets in Louisiana 350 +14% $120 – Integrated o
Slide 20: Case Study: CHOPS Minority Interest Sale
Case Study: CHOPS Minority Interest Sale Critical Gulf of Mexico Infrastructure with Multiple Delivery Points in Texas • Cameron Highway Oil Pipeline System is a high barrier to entry Increasing Volumes Through Commodity Cycles pipeline transporting central Gulf of Mexico production to multiple key
Slide 21: Sodium Minerals Overview
Sodium Minerals Overview Largest North American Producer of Low Cost Natural Soda Ash • Market leading position with highly consistent cash flow profile Genesis has Largest Trona Lease Holding in U.S. and significant barriers to entry • ~3.5 million tons per year of natural soda ash production capac
Slide 22: Soda Ash Market Summary
Soda Ash Market Summary Supply / Demand Balance Expected to Remain Tight over Long-Term • No new significant global natural supply expected to be online until Historical U.S. Natural Soda Ash Pricing(a) 3Q 2023 $160 • U.S. demand is relatively stable $150 $142 $141 $141 $139 • Domestic natural soda
Slide 23: Soda Ash Demand Drivers
Soda Ash Demand Drivers Growing Global Demand (Ex. China) Driven by Emerging Middle Class & Green Initiatives • Soda ash demand is driven by a diversified set of global end 2021 Global End-Markets (%)(a)(b) Lithium markets Metals / Mining Carbonate 4% 1% • Over 75% of global demand from glass, chemi
Slide 24: Natural Soda Ash Cost Advantage
Natural Soda Ash Cost Advantage Low Cost Position Drives Stable Cash Flow Generation • Genesis is a low cost producer of natural soda ash – Synthetic production is roughly twice as expensive to produce when compared to U.S. natural soda ash production – Synthetic soda ash consumes substantially more
Slide 25: Natural vs. Synthetic Soda Ash
Natural vs. Synthetic Soda Ash Natural Soda Ash Combines Lower Energy Usage with a Lower Carbon Footprint • Approximately 70% of the world’s soda ash is produced synthetically through the Solvay process or the Hou process(a) – The Solvay process (or ammonia-soda process) uses sodium chloride brine,
Slide 26: Granger Facility Expansion
Granger Facility Expansion Project Overview Granger Pre-Expansion • Genesis plans to invest approximately $350 million to expand its Granger soda ash facilities by approximately 750k tons per year – Anticipated in service in 3Q 2023 – Designed as a near-replica of existing ELDM facility (operating s
Slide 27: Granger Facility Expansion Project Update
Granger Facility Expansion Project Update • The Granger expansion project remains on schedule to have first soda ash on the belt in the 3rd quarter of 2023 – Expansion will add an incremental ~750,000 tons per year • Pro forma Granger will be able to produce ~1.3 million tons per year • Granger expa
Slide 28: Sulfur Services Overview
Sulfur Services Overview Market Leader of NaHS Production and Leading Provider of Sulfur Removal Services • Produce sodium hydrosulfide (“NaHS”) through proprietary Sales by Industry(a) process reacting high hydrogen sulfide (“H2S”) gas with Caustic Soda (“NaOH”) • Sour “Gas Processing” units inside
Slide 29: Facilitating Lower Refinery Emissions
Facilitating Lower Refinery Emissions NaHS Technology Helping Reduce Host Refinery and End Customer Emissions • Proprietary technology used to facilitate the eco-friendly NaHS Production Process removal of sulfur entrained in crude oil and its finished refined High H2S products Gas Stream Chlor-Alka
Slide 30: Onshore Facilities & Transportation Overview
Onshore Facilities & Transportation Overview Integrated Asset Footprint with Exposure to Significant Refinery Demand Baton Rouge Complex Texas City Terminal Raceland Terminal Other Legacy Onshore Assets • Integral part of ExxonMobil’s Baton • Connection to Genesis owned • Connection to Genesis owned
Slide 31: Marine Transportation Overview
Marine Transportation Overview Improving Fundamentals & High Degree of Operating Leverage • Inland barges are all asphalt capable, heated barges primarily Genesis Marine Equipment utilized in black oil service American Inland Offshore Phoenix • American Phoenix currently under term contract with cre
Slide 32: Appendix & Reconciliations
Appendix & Reconciliations
Slide 33: Corporate Information
Corporate Information Debt and Preferred Equity Profile & Corporate Structure Balance Sheet Overview Corporate Structure(a) • Committed to long-term leverage ratio of 4.00x(b) Series A Class A Class B Convertible • No near-term maturities of unsecured notes until 2024 Common Units Common Units Prefe
Slide 34: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (“ESG”) Supporting Business Priorities & Our Investors Through 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 valu
Slide 35: Balance Sheet & Credit Profile
Balance Sheet & Credit Profile Leverage Ratio & Common Unit Distribution Coverage Ratio ($ in 000s) 12/31/2021 Senior secured credit facility $49,000 Senior Unsecured Notes 2,930,505 Less: Outstanding inventory financing sublimit borrowings (9,700) Less: Cash and cash equivalents (5,090) Adjusted De
Slide 36: Reconciliation: Segment Margin
Reconciliation Segment Margin ($ in 000s) 2021 2020 2019 2018 Net Loss Attributable to Genesis Energy, LP ($165,067) ($416,678) $95,999 ($6,075) Corporate general and administrative expenses 61,287 51,457 52,755 64,683 Depreciation, depletion, amortization and accretion 315,896 302,602 308,115 323,2
Slide 37: Reconciliation: Available Cash Before Reserves
Reconciliation Available Cash Before Reserves ($ in 000s) 2021 2020 2019 2018 2017 Net loss attributable to Genesis Energy, L.P. ($165,067) ($416,678) $95,999 ($6,075) $82,647 Interest expense 233,724 209,779 219,440 229,191 176,762 Income tax expense 1,670 1,327 655 1,498 (3,959) Loss on sale of as
Slide 38: Reconciliation: Adjusted Debt & Adjusted Consolidated EBITDA
Reconciliation Adjusted Debt & Adjusted Consolidated EBITDA ($ in 000s) Long-term debt 2021 2020 2019 2018 2017 Senior secured credit facility $49,000 $643,700 $959,300 $970,100 $1,099,200 Senior unsecured notes, net of debt issuance costs 2,930,505 2,750,016 2,469,937 2,462,363 2,598,918 Less: Outs
Slide 39: Reconciliation: Select Items
Reconciliation Select Items ($ in 000s) 2021 2020 2019 2018 2017 Applicable to all Non-GAAP Measures Differences in timing of cash receipts for certain contractual arrangements (a) $15,482 $40,848 ($8,478) ($6,629) ($17,540) Distributions from unrestricted subsidiaries not included in income (b) 70,
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