Elimination of Genesis Energy, L.P.’s Incentive Distribution Rights and General Partner Interest

Energy
Elimination of Genesis Energy, L.P.’s Incentive Distribution Rights and General Partner Interest

Summary

Baird served as exclusive financial advisor to the Board of Directors of Genesis Energy, L.P.

About

Genesis Energy, L.P. (“Genesis” or the “Partnership”) (NYSE: GEL) recently announced that it has permanently eliminated its incentive distribution rights (“IDR’s”) and converted its two percent general partner interest into a non-economic interest. In exchange for the IDR’s and the two percent economic interest, the Partnership issued 20 million common units and 7 million “Waiver” units to the stakeholders of GEL’s general partner, less approximately 145,000 common and 50,000 Waiver units that have been reserved for a new deferred equity compensation plan for employees. The IDR restructuring transaction was unanimously approved by the Board of Directors of Genesis’ general partner and is effective as of December 28, 2010.

Genesis 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 and carbon dioxide. 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 and marketing 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, Florida and the Gulf of Mexico.

For additional information about this transaction, please contact:

Frank Murphy (314) 445-6532
Curtis Goot (314) 445-6540
Kjell Lundal (314) 445-6533
Energy
Elimination of Genesis Energy, L.P.’s Incentive Distribution Rights and General Partner Interest
Date
October 2010
Company
Genesis Energy, L.P.
Transaction
M&A
Sectors
Energy
Target Location
North America

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