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Genesis affiliates with Quintana

HOUSTON, Texas — Genesis Energy, L.P., announced it will become affiliated with Quintana Capital Group, an energy-focused private-equity firm headquartered in Houston, Texas.

An affiliate of Quintana has entered into a definitive agreement with Denbury Resources Inc., the largest independent oil and gas company operating in Mississippi, to acquire all of Denbury’s Class A membership interests in its general partner for cash. Immediately after the closing, Quintana and its co-investors will control the general partner, and members of the Davison family and our management team will be minority investors. Certain members of the Davison family currently own approximately 30 percent of Genesis outstanding common units and Denbury will continue to own approximately 10 percent ofthe outstanding common units.

Phil Rykhoek, CEO of Denbury, said, “We have been successful in partnering with Genesis management to build an increasingly integrated midstream service provider focused in the Gulf Coast region. Our investment in Genesis, which began with a $2.2-million purchase of the general partner in 2002, has grown to a much larger value today, and we plan to utilize the net proceeds of approximately $85 million from the sale of our Class A interests in the general partner to help finance our pending strategic acquisitions of Encore Acquisition Company and the Conroe Field. We are pleased to have attracted experienced energy investors to capitalize on Genesis’ existing footprint.”

The parties currently expect the transaction to close during the first quarter of 2010. Closing is subject to the satisfaction of customary conditions, including making regulatory filings and obtaining third-party consents.


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