EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Ross A. Benavides
Chief Financial Officer
(713) 860-2528
GENESIS ENERGY, L.P. UNITHOLDERS APPROVE PROPOSED
RESTRUCTURING AND GENESIS ENERGY, L.L.C. DECLARES
SPECIAL DISTRIBUTION
December 7, 2000 - Genesis Energy, L.P. (NYSE:GEL)
announced that the proposal presented at its Special Meeting of
Unitholders held today was approved. As a result of this
approval, our subsidiary operating partnership agreement has
been amended to:
? reduce the minimum quarterly distribution on the common
units from the previous $0.50 to the current $0.20 per
unit;
? reduce correspondingly the respective per unit dollar
distribution thresholds that must be achieved before the
general partner is entitled to incentive compensation
payments from the current threshold levels of $0.55,
$0.635 and $0.825 per unit to the new levels of $0.25,
$0.28 and $0.33 per unit;
? eliminate all of the outstanding subordinated limited
partner units in our operating partnership and, as a
result, provide that the common units will no longer
accrue arrearages if the minimum quarterly distribution
is not paid in full in any quarter; and
? eliminate, without payment of any consideration, all of
the outstanding additional partnership interests, or
APIs, issued to Salomon in exchange for its distribution
support and, as a result, eliminate our obligation to
redeem the APIs issued to Salomon in exchange for the
distribution support if quarterly cash available for
distributions exceeds specified levels.
Additionally, as a result of the approval of the proposal:
? Salomon has contributed to the operating partnership in
cash the remaining distribution support of $3.8 million.
After payment of $1.4 million of transaction costs
associated with the restructuring, we will pay a special
distribution of the remaining cash of $2.4 million, or
$0.28 per Common Unit, on December 28, 2000, to Common
Unitholders of record on December 18, 2000.
? Salomon has extended the expiration date of its $300
million credit support obligation to the subsidiary
operating partnership from March 31, 2001, to December
31, 2001, under the current terms and conditions.
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 Genesis believes that its expectations are based upon
reasonable assumptions, it can give no assurance that its goals
will be achieved. Important factors that could cause actual
results to differ materially from those in the forward looking
statements herein include the timing and extent of changes in
commodity prices for oil, ability to obtain adequate credit
facilities, environmental risks, government regulation, the
ability of the Partnership to meet its stated business goals and
other risks noted from time to time in the Partnership's
Securities and Exchange Commission filings.
Genesis Energy, L.P., operates crude oil common carrier
pipelines and is an independent gatherer and marketer of crude
oil in North America, with operations concentrated in Texas,
Louisiana, Alabama, Florida, Mississippi, New Mexico, Kansas and
Oklahoma.
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