Welcome to the 2020 Third Quarter Conference Call for Genesis Energy. Genesis has four business segments. The offshore pipeline transportation segment is engaged in providing the 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 product. 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, and thanks for joining. As we mentioned in our earnings release, during the third quarter, we were successful in paying down approximately $70 million in debt in spite of continuing, but improving macro challenges from the worldwide COVID-19 pandemic, as well as the most disruptive hurricane season since 2005. We are continuing to realize the benefits of the actions we took earlier this year to maintain and improve our financial flexibility and are encouraged about what these actions will bear for the remainder of 2020 and in the years ahead. We have clear and defined opportunities to realize improving financial results in future periods as the upstream community gets back to normalized operations in the Gulf of Mexico and the demand for some of our goods and services continue, it's returned to pre-pandemic levels, and which will more than likely grow from there. Now turning to our individual business segments. Our offshore pipeline transportation segment was negatively impacted from hurricanes Marco and Laura combining for basically two weeks of complete temporary cessation of production in the Central Gulf of Mexico during the quarter. As we have previously discussed, a platform that our CHOPS pipeline goes up and over, encourage some limited structural issues, which has required investigation and analyses. We continue to discuss with the Bureau of Safety and Environmental Enforcement to determine how best to return to normal, safe and responsible operations on CHOPS as soon as practicable. To date, we have been successful in routing all affected volumes through our Poseidon pipeline system and are close to revenue neutral, although the financial impact from Poseidon is on a one-month lag due to it being effectively a joint venture. So far in the fourth quarter, we experienced almost 15 days of disruptions and the production flowing…

Thank you. And I'll be conducting a question-and-answer session. [Operator Instructions] One moment, please, while we poll for questions. Our first question today is coming from Theresa Chen from Barclays, your line is now live.

Good morning. Thank you for that thorough review Grant. I wanted to follow-up on the soda ash side to begin with and ask how much rationalization permanent versus temporary have you observed currently versus [indiscernible] capacity including Granger.

In total, we've seen worldwide including about 650,000 tons of annual capacity in China shutdown permanently is of our understanding and approximately 4,000 – I mean 400,000-ton shutdown permanently in Europe. So a million tons of permanent reduction in a worldwide 55 million-ton a year business. And then obviously the temporary cessation and another 0.5 million or so from our shutting down Granger in addition to several large facilities were temporarily affected in the third quarter in China due to the flooding in Central China. But it's our belief that they are back up and running on right at this point.

Got it. And in terms of the incremental demand from battery alone, the six to seven million tons, what underlies this estimate and how visible do you think it is? Is it completely based on electrification of the fleet or other factors, are there which is for infrastructure investments that need to be met before that number can have more legs and drive demand for soda ash directly?

I mean, it's pulled from public pronouncements and projections that are provided by other public companies. But including kind of on the end use side, companies such as Tesla, as well as those that are on the production side of companies such as Albemarle, which is the largest – the world's largest producer of lithium phosphorus. So in any event – I mean, sorry, lithium carbonate. So in any event, it's kind of, those are – the data points that we use to back up the forecast that we gave today.

Okay. And in terms of the offshore segment, can you remind us as far as returning CHOPS to normal operations, what exactly needs to be done at this point either on your end or on [indiscernible]end?

We are currently in discussions with [indiscernible] about what to do and how to do it relative to the limited structural issues developed at the GB 72 platform. So as those discussions progress, we're prepared to move quickly to be able to restore normal service. So at this point we don't have a resolution with [indiscernible], although we hope to have one and a clear path forward shortly.

Understood. And lastly, I really appreciate all the color you provided on the offshore visibility in terms of inventory and opportunity on the production side. If we do see a federal lease ban put in place and potentially a permitting slowdown, do you think this affects the inventory pathway much?

Not on the identified at this point, because, I think, it's – by and large, it's already permitted and other things. And concerning a lease ban it's leased far. And I'm not a lawyer and I'll probably get in trouble for practicing law, but I'm not sure that the leasing program, the Gulf of Mexico is covered under the Outer Continental Shelf Lands Act, or OCSLA, as we call it. And that requires the Department of Interior by law, by legislation to maintain an active leasing program of federal waters there. [indiscernible] (0:25:29): So they are the ones that have more of the fight to develop the resources which are known and have been discovered to date.

Thank you very much.

Thanks very much. Your next question today is coming from Shneur Gershuni from UBS. Your line is now live.

Hi, good morning, everyone. Maybe just to follow-up on that last question if I recall there was an attempt to put an executive order for exactly Theresa’s question back under the Obama Administration. If I recall correctly, what's in that push, that Congress would actually have to change the law rather than using executive order. And is that kind of the summary of what – how you just responded to the question?

That that is correct. Post April, 2010, the very unfortunate Macondo incident, the Obama Administration attempted to limit activities going on in Gulf of Mexico and the upstream community took it to court. And immediately had determined that that is a congressional action is required to do what they were trying to do. So I think that that's still our view in terms of a permanent ban or whatever on policing activity and other extraction activities for the resources underlying the federal waters in Gulf of Mexico.

Okay. That was my understanding also. Okay, perfect. Just to pivot to a few questions here you announced a couple of new projects in the Gulf. You also mentioned the contract with LLOG. If I recall typically you don't really need much capital for these types of new additions. Is that the case here as well, too, that it's just incremental EBITDA without any or minimal CapEx spend?

Yes, this is Ryan. I mean, it's out in the public domain, but it's going into the – it's a subsea tieback development back to intervene as the operator of the Lobster platform, which has one export crude oil pipeline off of it, which is besides it.

Okay. And maybe to pivot to your commentary on the call with respect to soda ash, you sort of indicated that you expect to be conservative around setting expectations, and I respect that. I'm just trying to understand, like we see the strength in the soda ash market right now. I would have thought that would bode well for the upcoming negotiation season, but at the same time, I get it that it represents, I think, two thirds of your soda ash production. So is that why you are conservative that some of the strengths might come after the contracting cycle or flow through? Just trying to understand where the puts and takes are in terms of the conservatism and why – what we're seeing in the spot market won't necessarily materialize in the upcoming negotiations?

I think that again, a lot of it has to do with our conservatism, a lot of it has to do with the nature of the contracting processes, where most domestic prices are subject to caps and collars. And so there's not a lot of volatility from one year to the next. But there is attempts to market share grabs from time to time, given the limited member of players on the supply side and domestically, and then annual contracts in Latin America predominantly, and then shorter term contracts quarterly or so out in Asia, outside of China. So a lot of market dynamics. Tomorrow in terms of placing volumes and to borrow a line from Warren Buffett, it's hard to be a lot smarter than your dumbest competitor. So we're being conservative of how we think that 2021 is setting up. But the fundamentals for sure are driving. Where supplying demand is balancing people are working through the inventories. And I think pertains very well for as we move through 2021 and certainly into 2022 and beyond.

Great. I appreciate that. Maybe one last question if I may. You sort of talk about being able to hit full capacity – and I assume that obviously it presents operating leverage from a margin perspective. On a constant pricing basis, how much would your margins expand in a soda ash business just by being able to one flat out rather than partially running since you were this year?

I don't have a specific number off the top of our head. We will do a little bit of investigation and try to work that in prior for future discussions. But I don't have that off the top of my head.

Not a problem. Totally appreciate it. Thank you for the color today and have yourself a safe day.

Thank you. You too.

Thank you. [Operator Instructions] Our next question is coming from T. J. Schultz from RBC Capital Markets. Your line is now live

Great, thanks. On the rail volumes into Scenic Station and the MBCs, when would you expect to get through the credits where the increased activity would impact cash flow? And then you talked about dapple, if you could just quantify the benefit to our capacity to handle more trains if on potential dapple disruptions. Thanks.

Yes, I think at the current level as we said, they're using kind of prepaid credits. But if they kind of stay on this path and typically because of ambient operating conditions the pipeline capacities out of Canada are effected in the winter operating months. So if they go up a little bit maybe in the first or second quarter of next year, we could see an incremental contribution. And then obviously we have the capability of handling multiple trains a day, we're nowhere near that. But it is somewhat encouraging and there's perhaps the fundamentals that could drive some margin in 2021.

Okay. And then on asset sales, how engaged are you on additional, potential asset sales? And what assets do you consider core versus non-core?

That's a loaded question. I think that, as I said, we just evaluate everything and we're not going to comment one way or the other on any active discussions and/or what we might consider. But I do think that there's the potential to do some other stuff with – and to accelerate the de-leveraging. But we'll take advantage of that if the market conditions are right. And we think that that's a value for anything that we have.

Okay, great. Thanks, Grant.

Thanks T. J.

Thank you. We reached the end of our question-and-answer session, I'd like to turn the floor back over for any further or closing comments.

Well, again, I appreciate everybody. I know that it's a pretty hectic schedule this morning with all the other reporting that's going on. So we appreciate everybody carving out 30 minutes to spend with us. And we'll talk to you soon. Thank you.

Thank you. That does conclude today's teleconference. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.