Genesis Energy, L.P. Reports Third Quarter 2012 Results

Distributions

We have increased our quarterly distribution rate for twenty-nine consecutive quarters. During that period, twenty-four of those quarterly increases have been 10% or greater year-over-year. Over the last four quarters, we have increased the distribution rate on our common units by a total of $0.045 per unit, or 10.5%. Distributions paid over the last four quarters, and the distribution to be paid on November 14, 2012 for the third quarter of 2012, are as follows:

Distribution For		Date Paid		Per Unit Amount
2012
3rd Quarter		November 14, 2012		$	0.4725
2nd Quarter		August 14, 2012		$	0.4600
1st Quarter		May 15, 2012		$	0.4500
2011
4th Quarter		February 14, 2012		$	0.4400
3rd Quarter		November 14, 2011		$	0.4275

Earnings Conference Call

We will broadcast our Earnings Conference Call on Tuesday, November 6, 2012, at 8:00 a.m. Central time. This call can be accessed at www.genesisenergy.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' operations include pipeline transportation, refinery services and supply and logistics. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations. The Supply and Logistics Division is engaged in the transportation, storage and supply and marketing of energy products, including crude oil, refined products, and certain industrial gases. Genesis' operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico.

GENESIS ENERGY, L.P. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(in thousands, except per unit amounts)
		Three Months EndedSeptember 30,								Nine Months EndedSeptember 30,
		2012				2011				2012				2011
REVENUES		$	942,334			$	830,200			$	2,797,945			$	2,282,788
COSTS AND EXPENSES:
Costs of sales		888,003				777,957				2,639,047				2,146,954
General and administrative expenses		10,375				8,905				29,934				25,339
Depreciation and amortization		14,838				14,706				45,447				43,100
OPERATING INCOME		29,118				28,632				83,517				67,395
Equity in earnings (losses) of equity investees		3,432				(412		)		7,971				3,377
Interest expense		(9,873		)		(8,960		)		(30,697		)		(26,670		)
INCOME BEFORE INCOME TAXES		22,677				19,260				60,791				44,102
Income tax benefit (expense)		8,517				(172		)		8,591				(626		)
NET INCOME		$	31,194			$	19,088			$	69,382			$	43,476
NET INCOME PER COMMON UNIT:
Basic and Diluted		$	0.39			$	0.27			$	0.90			$	0.65
WEIGHTED AVERAGE OUTSTANDING COMMON UNITS:
Basic and Diluted		79,901				70,447				77,410				66,580

GENESIS ENERGY, L.P. OPERATING DATA - UNAUDITED
		Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
		2012			2011			2012			2011
Pipeline Transportation Segment
Onshore crude oil pipelines (barrels/day):
Jay		22,841			17,720			19,931			16,499
Texas		52,767			44,149			50,327			46,020
Mississippi		17,942			20,884			18,377			20,883
Onshore crude oil pipelines total		93,550			82,753			88,635			83,402
Offshore crude oil pipelines (barrels/day):
CHOPS (1)		91,377			90,312			78,817			123,034
Poseidon (1) (2)		215,474			—			206,596			—
Odyssey (1) (2)		31,869			—			35,994			—
GOPL (2)		8,300			—			16,979			—
Offshore crude oil pipelines total		347,020			90,312			338,386			123,034
CO 2 pipeline (Mcf/day)
Free State		188,165			192,041			177,527			166,302
Refinery Services Segment
NaHS (dry short tons sold)		34,372			33,396			107,321			106,709
NaOH (caustic soda dry short tons sold)		21,152			23,440			56,740			74,289
Supply and Logistics Segment
Crude oil and petroleum products sales (barrels/day)		100,095			77,179			91,444			71,770

(1)	Volumes for our equity method investees are presented on a 100% basis.
(2)	Acquired in January 2012.

GENESIS ENERGY, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
(in thousands, except number of units)
		September 30,2012				December 31,2011
ASSETS
Cash and cash equivalents		$	15,461			$	10,817
Accounts receivable - trade, net		318,892				237,989
Inventories		67,298				101,124
Other current assets		25,616				26,174
Total current assets		427,267				376,104
Fixed assets, net		535,951				416,925
Investment in direct financing leases, net		158,698				162,460
Equity investees		547,925				326,947
Intangible assets, net		79,140				93,356
Goodwill		325,046				325,046
Other assets, net		33,128				30,006
Total assets		$	2,107,155			$	1,730,844
LIABILITIES AND PARTNERS’ CAPITAL
Accounts payable - trade		$	254,688			$	199,357
Accrued liabilities		63,691				50,071
Total current liabilities		318,379				249,428
Senior secured credit facility		483,000				409,300
Senior unsecured notes		350,924				250,000
Deferred tax liabilities		11,598				12,549
Other long-term liabilities		15,321				16,929
Partners' capital:
Common unitholders		927,933				792,638
Total liabilities and partners' capital		$	2,107,155			$	1,730,844
Units Data:
Total common units outstanding		81,202,752				71,965,062

GENESIS ENERGY, L.P. RECONCILIATION OF SEGMENT MARGIN TO INCOME BEFORE INCOME TAXES - UNAUDITED
(in thousands)
		Three Months EndedSeptember 30,
		2012				2011
Segment margin		$	65,929			$	52,931
Corporate general and administrative expenses		(9,431		)		(8,194		)
Non-cash items included in general and administrative costs		377				(219		)
Cash expenditures not included in Adjusted EBITDA		228				1,008
Cash expenditures not included in net income		(481		)		(327		)
Adjusted EBITDA		56,622				45,199
Depreciation and amortization		(14,838		)		(14,706		)
Interest expense, net		(9,873		)		(8,960		)
Cash expenditures not included in Adjusted EBITDA or net income		253				(681		)
Adjustment to exclude distributions from equity investees and include equity in investees net income		(5,613		)		(3,702		)
Non-cash compensation charges		(2,001		)		930
Other non-cash items		(1,873		)		1,180
Income before income taxes		$	22,677			$	19,260

GENESIS ENERGY, L.P. ADJUSTED DEBT-TO-PRO FORMA EBITDA RATIO - UNAUDITED
(in thousands)
		September 30, 2012
Senior secured credit facility		$	483,000
Senior unsecured notes (excluding unamortized premium of $924)		350,000
Less: Outstanding inventory financing sublimit borrowings		(48,600		)
Less: Cash and cash equivalents		(15,461		)
Adjusted Debt (1)		$	768,939
		Pro Forma LTM (2)
Adjusted EBITDA (as reported)		September 30, 2012
4 th Quarter 2011		$	45,279
1 st Quarter 2012		51,124
2 nd Quarter 2012		54,259
3 rd Quarter 2012		56,622
LTM Adjusted EBITDA		207,284
Acquisitions and material projects EBITDA adjustment (3)		19,995
Pro Forma EBITDA		$	227,279
Adjusted Debt-to-Pro Forma EBITDA		3.38x

(1) We define Adjusted Debt as the amounts outstanding under our senior secured credit facility and senior unsecured notes (excluding 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.

(2) Last twelve months ("LTM"). The most comparable GAAP measure to Adjusted EBITDA, income before income taxes, was $5.9 million for the fourth quarter of 2011, $19.6 million for the first quarter of 2012, $18.5 million for the second quarter of 2012, and $22.7 million for the third quarter of 2012. Reconciliations of Adjusted EBITDA to income before income taxes for all periods presented are available on our website at www.genesisenergy.com.

(3) This amount reflects the adjustment we are permitted to make under our credit agreement for purposes of calculating compliance with our leverage ratio. It includes a pro rata portion of projected future annual EBITDA from material projects and includes Adjusted EBITDA (using historical amounts) since the beginning of such 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.

This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Actual results may vary materially. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission and other filings, including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q for additional information and risk factors that may affect these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement.

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