Welcome to the 2020 Second Quarter Conference Call for Genesis Energy. Genesis has four business segments. The Offshore Pipeline Transportation segment is engaged in providing critical infrastructure to move oil produced from the long-lived, world-class reservoirs from the deepwater Gulf of Mexico to onshore refining centers. The Sodium Minerals and Sulfur Services segment includes trona and trona-based exploring, mining, processing, producing, marketing and selling activities, as well as the processing of sour gas streams to remove sulfur at refining operations. The Onshore Facilities and Transportation segment is engaged in the transportation, handling, blending, storage and supply of energy products, including crude oil and refined products. The Marine Transportation segment is engaged in the maritime transportation of primarily refined petroleum products. Genesis’ operations are primarily located in Wyoming, the Gulf Coast States and the Gulf of Mexico. During this conference call, management may be making forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The law provides safe harbor protection to encourage companies to provide forward-looking information. Genesis intends to avail itself of those safe harbor provisions and directs you to its most recently filed and future filings with the Securities Exchange Commission. We also encourage you to visit our website at genesisenergy.com where a copy of the press release we issued today is located. The press release also presents a reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures. At this time, I would like to introduce Grant Sims, CEO of Genesis Energy L.P. Mr. Sims will be joined by Bob Deere, Chief Financial Officer; and Ryan Sims, Senior Vice President, Finance and Corporate Development.

Good morning, everyone. Thanks, Karen. As we mentioned in our earnings release, over the course of the last few months, we have taken the proactive steps necessary to improve our financial flexibility and be a net payer of debt even in such a difficult operating environment. Let me repeat that. We expect to be a net payer of debt even in this generationally challenging environment. We reduced our quarterly distribution, which saved us approximately $200 million a year. We amended our agreements with GSO Capital Partners to allow us to delay the capital expenditures associated with our Granger optimization project by up to 12 months. We recently implemented cost-savings initiatives that are expected to generate approximately $38 million in annual savings beginning this quarter. We amended with the unanimous support of our 19 banks, our senior secured credit facility to be able to add back $13.5 million in one-time charges associated with our cost-savings initiatives as well as increasing our covenants through the first quarter of 2021. Early in the second quarter, we were also successful in purchasing approximately $96 million worth of our unsecured notes on the open market at a weighted average price of just under $0.79 on the dollar resulting in a gain as well as a net reduction of total debt of approximately $20 million. Now turning to our individual business segments, our Offshore Pipeline Transportation segment continued to perform in line with our expectations with the exception of the unexpected downtime associated with Tropical Storm Cristobal. During the quarter, we saw producers shut in volumes in May with some continuing into June, representing maybe 2% to 3% of total volumes for the quarter, as a response to the dramatic fall in commodity prices during late April and May. Virtually all of these volumes with the…

[Operator Instructions] And your first question comes from the line of Kyle May.

Good morning. I wanted to start off with the Sodium and Sulfur segment. Obviously you talked about the effects of COVID-19 on the business, but I'm wondering if you can provide any additional thoughts around the pace of recovery at this point and kind of the cadence of how you see volumes trending through the second half of the year.

As I gave in the prepared remarks I mean I think that domestically we are seeing sequential increases from July over June, June over May. At this point we're still obviously -- well we're still below 2019 levels. Our visibility while it's improving and our customers seem to be improving and it's -- on the export margin where the margin we compete with Chinese exports and the Asian economies outside of China. It's a good sign that Chinese inventories have declined over the last couple of weeks which everything else the same means that we're starting to see a little bit more balance between the demand and supply. So at this point, we anticipate that volumes will continue to recover, but by no means do we think that we're going to at this point exit '20 with anything close to what we were doing in 2019. I think that it's probably going to take realistically through '20 and into 2021 until we -- depending upon the pace of reopening the economies worldwide to get back to 2019 levels.

Okay got it. And I believe last quarter you discussed placing the existing Granger facility in hot hold mode and now that's going to cold stack. Can you walk us through the decision here and then how this will change your operations and expenses?

Basically it will - so yes what we did was initially we were very quick to react when we saw the demand destruction starting to come through the supply chain with our customers. We furloughed and if you will initially for -- what was anticipated to be a 90 to 120 day period the Granger facility. So in other words, we still pretty much had the -- had most of the expenses except for certain labor expenses resulting from furloughs associated with maintaining an in-ready mode. We made the decision during the quarter as May unfolded and accelerated into June that in order to facilitate a rebalance not only of our portfolio supply and demand, but to also accelerate the world balancing we made the decision to cold stack it which basically required a reduction in force, a more permanent reduction in force as we go forward as well as it saved us money from maintaining it in warm stack mode. So it was the best way, the most efficient way for us to do it to address the reality of what we perceive to be the market over the next couple of years. As we said, we can bring it back in three to six months if market conditions dictate, but right now our plan is to keep it in cold stack and bring it back on altogether as we make the expanded Granger project a reality and bring it all back up in 2023. We do not believe that the delay in the Granger optimization project or the expansion of Granger has been significantly impacted from a dollar point of view by delaying it a couple years. So in fact, there are some economies, especially during tie-ins with the existing operations and other interface points between existing Granger and the expanded Granger that we can do more efficiently and cheaper when the existing Granger is now in cold stack mode.

Got it. Okay. Thanks for that. I’ll turn it back.

Thank you.

[Operator Instructions] Your next question comes from the line of Shneur Gershuni.

Hi. Good morning everyone. Good to hear everyone is well. I guess to start off a little bit here, I kind of wanted to talk about your options here. I mean at the end of the day you're free cash flow positive given the actions that you've actually taken. At the same time when I look at where your public debt is trading, you're actually trading really well and not providing much of a discount at this point right now. So what are the options that you're going to do with the excess cash? Do you still buy bonds that are in the 90s? Do you look to maybe go after under parts of the capital structure or even possibly buy back some units? I'm just kind of wondering what your options are that you're thinking about in orders of priority.

Very good questions Shneur as usual. I don't think that we will actively participate in trying to buy in bonds in the 9s or in the 90s if you will. We will continue to -- we use the cash to pay down revolver debt. We have the ability under the existing agreement to once we go below five times on our calculated total funded debt covenant with our banks that we can actually -- we can go into the equity to the extent that that makes sense at that point in time. Obviously, we're not there at this point, but we will be in -- hopefully in early short order. So that will give us another opportunity to manage the capital structure and return money to the investors.

Okay. That makes sense. And then you just -- I don't want to beat the whole soda ash thing too much. I think it's been kind of straightforward, but I was just wondering are you sitting on a lot of inventory at this point right now? I understand that Granger has been cold stacked at this point right now, but is the market for soda ash pricing actually improving based on the trends that you just highlighted? And do you have inventory where we can see a working capital conversion to cash as you sell out? And how deep is that inventory of soda ash?

Yeah. We don't have a -- we've kind of -- within reason you would call us kind of a just-in-time supplier, so we don't have large amounts of inventory in our supply chain. That's not our business. We make it and push it through the -- as the first step in the supply chain. So, we don't anticipate any kind of gain, if you will, as prices improve from selling inventory made at a low price and selling it at a high price at this point.

Okay. That makes sense. And maybe one final question. As we sort of think about the guidance range or your updated guidance range that you put out today, what are the scenarios that get us to the high end and what are the scenarios that get us to the low end? I imagine shelter-in-place would get us to the low end, but what are specific trends within reason of trying to predict that gets it to your high end and low end?

I think it's really driven by the rapidity and the pace of the recovery in worldwide markets and whether or not we can primarily enter and that would translate into the pricing if you will for soda ash as well as volume recovery. So, that's really going to be the big driver as well as can we manage through a recon fracking with the Phoenix, which again is small around the edge and the overall aggregate segment margin. But, just a few negatives relative to a few positives has really been driven primarily by the volume recovery in soda ash in the second half of the year is really going to -- that's going to determine where we come in, in that range.

So the biggest drivers ultimately will be soda ash pricing and volume effectively. That's kind of the biggest swing one way or another?

That's correct.

Really appreciate the color today. Once again, glad to hear you all guys are well. Have a safe day.

Thanks, Shneur.

[Operator Instructions] And there are no further questions.

Okay. Well, thanks everyone for participating this morning. I think the second half is going to be better than the first half hopefully, but we will talk in 90 days, if not sooner. So thanks everyone.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.