Press Releases

Genesis Energy, L.P. Announces Changes in Ownership and Board of Directors

HOUSTON--(BUSINESS WIRE)-- Today, Genesis Energy, L.P. (NYSE: GEL) announced that certain members of the Davison family of Ruston, Louisiana have made a third substantial investment in the partnership. The Davison family led an investor group that acquired 2,165,002 Class A common units (or 2.7% of those outstanding) and 34,998 Class B common units (or 87.5% of those outstanding) in a private placement from the Quintana Capital Group--a Houston-based private equity fund--and certain of its affiliates and co-investors. That transaction, which closed on Friday, October 5, 2012, resulted in certain members of the Davison family, collectively, owning approximately 17.2% of the partnership’s outstanding Class A units and 76.9% of the partnership’s outstanding Class B units, which entitle the Davisons to elect at least a majority of the members of the board of directors of the partnership’s general partner. Messrs. James E. Davison, Sr. and James E. Davison, Jr. have been on our board since 2007. The Davison investor group also included three other continuing members of our board--Mrs. Sharilyn Gasaway and Messrs. Corbin J. Robertson, III and Grant E. Sims, who also is our Chief Executive Officer.

Chief Executive Officer Grant E. Sims said, “We continue to be honored and inspired by the Davison’s confidence in, and commitment to, us and our growth potential. They have a long and profitable history of investing in and building successful enterprises, including the partnership. Over the last five years, James and Jim have been an important part of a stabilizing force that has allowed us to focus on executing our strategy. We value their support and input.”

James E. Davison Sr., the leader of several energy businesses that today represent a large portion of the partnership’s core assets, stated, “We are excited to have the opportunity to make another substantial investment in the partnership. We have the highest level of confidence in the integrity, capability and ingenuity of the partnership’s management team. We believe that this management team can continue to foster an enabling culture that will allow the partnership to move quickly and profitably to the next level.”

Pursuant to the private placement referenced above and a contemporaneous underwritten offering, the Quintana private equity funds (along with their affiliates and co-investors) monetized substantially all of their remaining investment in the partnership. In connection with Quintana’s monetization of its remaining interest in the partnership, the following directors appointed by Quintana and its co-investors resigned from our board—Robert C. Sturdivant, William K. Robertson, Carl A. Thomason and S. James Nelson. The board subsequently designated Grant E. Sims as Chairman of the board and Kenneth M. Jastrow II as Lead Independent Director.

Mr. Sims stated, “The Quintana funds’ initial investment in Genesis was a transformational event. It re-energized our management team and eventually allowed us to align the interests of our common unitholders with the interests of the equity holders of our general partner, which alignment was fully realized when we consummated our IDR simplification at the end of 2010. I would like to thank the resigning directors for their time, patience and other contributions to the partnership as we evolved into a more viable participant in the midstream sector. And, I would like to express a special appreciation to Corbin Robertson, Jr., who leads the Quintana funds and related entities. His vision and willingness to invest in our management team facilitated our success. Today, we have the personnel, scale, financial condition and strategic footprint that should allow us to continue on our growth trajectory.”

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.

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, including statements regarding closing of the transaction. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.

Genesis Energy, L.P.
Bob Deere, (713) 860-2516
Chief Financial Officer

Source: Genesis Energy, L.P.