XML 27 R9.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Acquisitions and Divestitures Acquisitions and Divestitures (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2015
Acquisitions and Divestitures [Abstract] |
Acquisitions And Divestitures | Acquisitions and Divestitures Acquisitions Enterprise Offshore On July 24, 2015, we acquired the offshore pipeline and services business of Enterprise Products Partners, L.P. and its affiliates for approximately $1.5 billion, subject to certain adjustments. That business includes interests in offshore crude oil and natural gas pipelines and six offshore hub platforms, including a 36% interest in the Poseidon Oil Pipeline System, a 50% interest in the Southeast Keathley Canyon Oil Pipeline System, and a 50% interest in the Cameron Highway Oil Pipeline System. To finance that transaction, in July, we issued 10,350,000 common units in a public offering that generated proceeds of $437.2 million net of underwriter discounts and $750 million aggregate principal amount of 6.75% senior unsecured notes due 2022 that generated net proceeds of $728.6 million net of issuance discount and underwriting fees. The remainder of that transaction was financed with borrowings under our senior secured credit facility. We have reflected the financial results of the acquired business in our offshore pipeline transportation segment from the date of acquisition. The purchase price has been allocated to the assets acquired and liabilities assumed based on estimated preliminary fair values. Those preliminary fair values were developed by management with the assistance of a third-party valuation firm and are subject to change pending a final valuation report and final determination of working capital acquired and other purchase price adjustments. We expect to finalize the purchase price allocation for this transaction during 2016. We do not expect any material adjustments to these preliminary purchase price allocations as a result of the final valuation. The allocation of the purchase price, as presented on our Consolidated Balance Sheet, is summarized as follows:
Cash | $ | 1,270 |
Accounts receivable | 29,768 |
Inventories | 600 |
Other current assets | 10,432 |
Fixed assets | 1,225,685 |
Intangible assets | 79,050 |
Equity investees | 352,535 |
Other assets | 1,966 |
Accounts payable | (6,110 | )
Accrued liabilities | (18,662 | )
Other long-term liabilities | (161,412 | )
Noncontrolling interest | 6,447 |
Total purchase price | $ | 1,521,569 |
Fixed assets identified in connection with our valuation and preliminary purchase price allocation include crude oil pipelines, natural gas pipelines and related assets. We will depreciate these assets on a straight line basis over estimated useful lives ranging from 2 to 35 years depending on the nature of each asset. Intangible assets identified in connection with our valuation and preliminary purchase price allocation relate to customer contracts surrounding certain transportation agreements with producers in the Lucius production area in Southeast Keathley Canyon, which support our SEKCO pipeline. We will amortize these intangible assets on a straight line basis over an estimated useful life of 19 years. In connection with our valuation and preliminary purchase price allocation, we have identified asset retirement obligations ("AROs") relating to the crude oil pipelines, natural gas pipelines and related assets with a preliminary fair value of $158.2 million. Of these AROs, $9.8 million of retirement costs are estimated to be incurred within the next year and thus are included in accrued liabilities in the table above, as well as on our Consolidated Balance Sheet at December 31, 2015. The remainder of the AROs recorded as a result of our Enterprise acquisition are included within "Other long-term liabilities" in the table above, as well as on our Consolidated Balance Sheet. See further discussion of AROs assumed as a result of our Enterprise acquisition in Note 5. Noncontrolling interest as shown in the table above relates to the preliminary fair value assigned to the 20% ownership interest of our joint venture partner in Independence Hub, LLC, a consolidated subsidiary acquired as a result of the Enterprise acquisition in which we have an 80% ownership interest. Our Consolidated Financial Statements include the results of our acquired offshore pipeline transportation business since July 24, 2015, the effective closing date of the acquisition. The following table presents selected financial information included in our Consolidated Financial Statements for the periods presented:
| Year Ended December 31,
| 2015
Revenues | $ | 101,444 |
Net income | $ | 58,805 |
The table below presents selected unaudited pro forma financial information incorporating the historical results of our newly acquired offshore pipeline transportation assets. The pro forma financial information below has been prepared as if the acquisition had been completed on January 1, 2013 and is based upon assumptions deemed appropriate by us and may not be indicative of actual results. This pro forma information was prepared using historical financial data of the Enterprise offshore pipelines and services businesses and reflects certain estimates and assumptions made by our management. Our unaudited pro forma financial information is not necessarily indicative of what our consolidated financial results would have been had our Enterprise acquisition been completed on January 1, 2013.
| Year Ended December 31,
Pro forma consolidated financial operating results: | 2015 |  | 2014 |  | 2013
Revenues | $ | 2,421,989 |  |  | $ | 4,135,964 |  |  | $ | 4,372,827 |
Net Income Attributable to Genesis Energy L.P. | $ | 425,363 |  |  | $ | 132,682 |  |  | $ | 81,287 |
Basic and diluted earnings per unit: |  |  |  |  |
As reported net income per unit | $ | 4.09 |  |  | $ | 1.18 |  |  | $ | 1.00 |
Pro forma net income per unit | $ | 3.91 |  |  | $ | 1.32 |  |  | $ | 0.86 |
As relating to our Enterprise acquisition, we have incurred approximately $15 million in acquisition related costs through December 31, 2015. Such costs are included as "General and Administrative costs" on our Unaudited Condensed Consolidated Statement of Operations. M/T American Phoenix On November 13, 2014, we acquired the M/T American Phoenix from Mid Ocean Tanker Company for $157 million. The M/T American Phoenix is a modern double-hulled, Jones Act qualified tanker with 330,000 barrels of cargo capacity that was placed into service during 2012. The purchase price of $157 million was paid to Mid Ocean Tanker Company in cash, as funded with proceeds from available and committed liquidity under our revolving credit facility. We have reflected the financial results of the acquired business in our marine transportation segment from the date of acquisition. We have recorded the assets acquired in the Consolidated Financial Statements at their fair values. Those fair values were developed by management. The allocation of the purchase price, as presented on our Consolidated Balance Sheet, is summarized as follows:
Property and equipment | $ | 125,000 |
Intangible assets | 32,000 |
Total purchase price | $ | 157,000 |
Our Consolidated Financial Statements include the results of our acquired offshore marine transportation business since November 13, 2014, the effective closing date of the acquisition. The following table presents selected financial information included in our Consolidated Financial Statements for the periods presented:
| Year Ended December 31,
| 2014
Revenues | $ | 3,038 |
Net income | $ | 454 |
The table below presents selected unaudited pro forma financial information for us incorporating the historical results of the acquired M/T American Phoenix. The pro forma financial information below has been prepared as if the acquisition had been completed on January 1, 2013 and is based upon assumptions deemed appropriate by us and may not be indicative of actual results. Depreciation expense for the fixed assets acquired is calculated on a straight-line basis over an estimated useful life of approximately 30 years.
| Year Ended December 31,
| 2014 |  | 2013
Pro forma earnings data: |  |  |
Revenues from continuing operations | $ | 3,863,745 |  |  | $ | 4,153,443 |
Net income | $ | 111,132 |  |  | $ | 90,829 |
Offshore Marine Transportation Business In August 2013, we acquired substantially all of the assets of the downstream transportation business of Hornbeck Offshore Services, Inc. for $230.9 million, which we refer to as our offshore marine transportation business and assets. The total acquisition cost of $230.9 million was allocated to fixed assets on our Consolidated Balance Sheet. The acquired business was primarily comprised of nine barges and nine tug boats that transport crude oil and refined petroleum products, principally serving refineries and storage terminals along the Gulf Coast, Eastern Seaboard, Great Lakes and Caribbean. That acquisition was funded with proceeds from our revolving credit facility. We have reflected the financial results of the acquired business in our marine segment from the date of the acquisition. Our Consolidated Financial Statements include the results of our acquired offshore marine transportation business since August 28, 2013, the effective closing date of that acquisition. The following table presents selected financial information included in our Consolidated Financial Statements for the periods presented:
| Year Ended December 31,
| 2013
Revenues | $ | 30,424 |
Net income | $ | 7,348 |
The table below presents selected unaudited pro forma financial information for us incorporating the historical results of our offshore marine transportation business. The pro forma financial information below has been prepared as if the acquisition had been completed on January 1, 2013 and is based upon assumptions deemed appropriate by us and may not be indicative of actual results. Depreciation expense for the fixed assets acquired is calculated on a straight-line basis over an estimated useful life of approximately 25 years.
| Year Ended December 31,
| 2013
Pro forma earnings data: |
Revenues from continuing operations | $ | 4,177,715 |
Net Income | $ | 98,846 |
Divestitures On December 31, 2013 we sold our vehicle fuel procurement and delivery logistics management services business. We sold the business for $1 million and recorded a gain on the sale of approximately $0.9 million, included in Income (loss) from discontinued operations on the Consolidated Statements of Operations. That business, previously reported in our supply and logistics revenues and costs and expenses, was reclassified as discontinued operations in our Consolidated Statements of Operations for the year ended December 31, 2013. The summarized operating results of our discontinued operations are as follows:
| Year Ended December 31,
| 2013
Revenues | $ | 593,733 |
Cost and expenses | 592,505 |
Operating income | 1,228 |
Interest income | 2 |
Income before income taxes | 1,230 |
Gain on sale of discontinued operations | 875 |
Income from discontinued operations | $ | 2,105 |

X
- Definition The entire disclosure for all information related to significant acquisitions and divestitures. + References No definition available. + Details
Name: | gel_AcquisitionsAndDivestituresTextBlock
Namespace Prefix: | gel_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Acquisitions and Divestitures [Abstract] + References No definition available. + Details
Name: | gel_AcquisitionsandDivestituresAbstract
Namespace Prefix: | gel_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration