Genesis Energy Lp News

Genesis Energy, L.P. announce plans to invest approximately US$150-million to construct a new crude oil, intermediates and refined products import / export terminal in Baton Rouge, Louisiana (the Baton Rouge Terminal). The Baton Rouge Terminal will be located on approximately 90 acres of land near the Port of Greater Baton Rouge (the Port) and will be connected to the Port’s existing deepwater docks on the Mississippi River. The docks are capable of berthing vessels ranging from barges to Aframax class vessels.

Ongoing infrastructure and newbuild activity not expected to let up. Modern, sophisticated and quality tonnage arrives at just the right time. Vessel builders are ramped up for strong demand from the Gulf of Mexico, where oil drilling is very soon expected to return to pre-Macondo levels. Utilization rates for offshore vessels are rising in the GoM, along with associated dayrates. Three Louisiana leaders--Edison Chouest Offshore in Cut Off, Hornbeck Offshore Services Inc. in Covington and Harvey Gulf International Marine in New Orleans--are engaged in aggressive newbuild programs.

Genesis Energy has completed the previously announced acquisition of all the assets of the downstream transportation business of Hornbeck Offshore Transportation, LLC. The purchase price was approximately $230 million plus customary adjustments. The acquired business is primarily comprised of nine barges and nine tug boats which transport crude oil and refined petroleum products, principally serving refineries and storage terminals along the Gulf Coast, Eastern Seaboard, Great Lakes and Caribbean. Hornbeck and Genesis say they have also entered into transition service agreements to facilitate a smooth transition of operations and uninterrupted services for both employees and customers.

Genesis Energy, L.P. has agreed to acquire for approximately US$230-million all the assets of the downstream transportation business of Hornbeck Offshore Transportation, LLC (“Hornbeck”). The business is primarily comprised of nine barges and nine tug boats which transport crude oil and refined petroleum products, principally serving refineries and storage terminals along the Gulf Coast, Eastern Seaboard, Great Lakes and Caribbean. At the closing of the transaction, Hornbeck and Genesis expect to enter into transition service agreements to facilitate a smooth transition of operations and uninterrupted services for both employees and customers.

Genesis Energy, L.P. has completed the previously announced acquisition of the black oil barge transportation business of Florida Marine Transporters, Inc. and its affiliates (FMT). The purchase price was $141 million plus customary adjustments. The acquired business is comprised of 30 barges (seven of which are being sub-leased under similar terms of an existing FMT lease) and 14 push/tow boats which transport heavy refined petroleum products, primarily serving refineries and storage terminals along the Gulf Coast, Intracoastal Canal and western river systems of the United States, including the Red, Ouachita and Mississippi Rivers.