Blue Dolphin Reports First Quarter Financial Results and Provides Nixon Facility Operational Update
May 25 2012 - 3:31PM
Blue Dolphin Energy Company ("Blue Dolphin") (OTCQX:BDCO), which
acquired Lazarus Energy, LLC ("LE") from Lazarus Energy Holdings,
LLC ("LEH") in a reverse acquisition effective February 15, 2012,
announced condensed consolidated financial results for the three
month period ended March 31, 2012 (the "current quarter") of a net
loss of $1,969,894 on total revenue of $46,041,213.
LE's primary asset is a crude oil processing facility located
near Nixon, Texas (the "Nixon Facility"), which began operations on
a reduced basis in February 2012. For the current quarter, the
Nixon Facility operated for a total of 60 days, during which time
equipment was calibrated and the refining process was adjusted. The
Nixon Facility had no operations during the quarter ended March 31,
2011. Under reverse acquisition accounting, LE (the legal
subsidiary) has been treated as the accounting parent (acquirer)
and Blue Dolphin (the legal parent) has been treated as the
accounting subsidiary (acquiree). Accordingly, the financial
statements subsequent to the date of the transaction are presented
as the continuation of LE.
As part of the acquisition of LE, Blue Dolphin entered into a
Management Agreement with LEH effective February 15, 2012 (the
"Management Agreement") pursuant to which LEH manages and operates
the Nixon Facility and Blue Dolphin's other operations (the
"Services"). Pursuant to the Management Agreement, Blue Dolphin
incurred $1,065,606 in operating expenses (approximately $2.86 per
barrel) related to the Services provided by LEH for the current
quarter. LEH owns 80% of Blue Dolphin's issued and outstanding
common stock.
During the current quarter, throughput at the Nixon Facility
increased from an initial rate of approximately 7,500 barrels of
oil per day to approximately 10,000 barrels of oil per day.
Management anticipates that the Nixon Facility may approach its
operating capacity throughput of 15,000 barrels of oil per day on a
consistent basis during the second half of 2012. Management is
working to optimize the Nixon Facility's operations through:
(i) the reduction of crude oil and condensate acquisition
costs; (ii) the type, yield, quality and consistency of the
products produced and (iii) the ability to capture market
opportunities through logistics and fine-tuning of an evolving
market and customer base.
Blue Dolphin Energy Company (OTCQX:BDCO) is engaged in crude oil
and condensate processing, as well as the gathering and
transportation and the exploration and production of oil and
natural gas. For additional company information, visit Blue
Dolphin's corporate website at
http://www.blue-dolphin-energy.com.
Certain of the statements included in this press release, which
express a belief, expectation or intention, as well as those
regarding future financial performance or results, or which are not
historical facts, are "forward-looking" statements as that term is
defined in the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended. These
forward-looking statements are not guarantees of future performance
or events and such statements involve a number of risks,
uncertainties and assumptions, including but not limited to: key
supplier failure; loss of market share with or by a key customer;
failure to comply with forbearance agreements relating to long-term
indebtedness under which Blue Dolphin is in default; continued
declines in throughput volumes and production rates from Blue
Dolphin's U.S. Gulf of Mexico leasehold properties; and the factors
set forth under the heading "Risk Factors" in Part I, Item 1A of
Blue Dolphin's annual report on Form 10-K for the twelve month
period ended December 31, 2011. Should one or more of
these risks or uncertainties materialize or should the underlying
assumptions prove incorrect, actual results and outcomes may differ
materially from those indicated in the forward-looking
statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof. The Company undertakes no obligation
to republish revised forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events.
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BLUE DOLPHIN ENERGY
COMPANY & SUBSIDIARIES |
Condensed Consolidated
Balance Sheets |
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March 31, 2012 |
December 31, 2011 |
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(Unaudited) |
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2012 |
2011 |
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
$1,109,821 |
$1,822 |
Restricted cash |
192,155 |
192,004 |
Accounts receivable |
16,447,101 |
— |
Prepaid expenses and other current
assets |
329,718 |
58,713 |
Deposits |
1,140,447 |
473,026 |
Inventory |
5,143,569 |
4,533,961 |
Total current assets |
24,362,811 |
5,259,526 |
Total property and equipment, net |
43,132,695 |
32,307,929 |
Debt issue costs |
557,684 |
566,133 |
Other assets |
17,076 |
10,468 |
Trade name |
184,368 |
— |
Goodwill |
8,667,401 |
— |
TOTAL ASSETS |
$76,922,035 |
$38,144,056 |
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LIABILITIES AND STOCKHOLDERS'
EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
$21,663,071 |
$4,841,859 |
Accounts payable, related party |
260,035 |
908,139 |
Note payable |
46,318 |
46,318 |
Asset retirement obligations, current
portion |
242,299 |
— |
Accrued expenses and other current
liabilities |
1,094,408 |
744,921 |
Interest payable, current portion |
1,004,515 |
995,916 |
Other long-term liabilities, current
portion |
1,841,852 |
1,839,501 |
Total current liabilities |
26,152,498 |
9,376,654 |
Asset retirement obligations, net of current
portion |
2,480,402 |
— |
Long term debt |
14,813,846 |
12,455,102 |
Long term interest payable, net of current
portion |
703,211 |
650,214 |
Total long-term liabilities |
17,997,459 |
13,105,316 |
Commitments and contingencies |
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STOCKHOLDERS' EQUITY |
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Common stock ($0.01 par value, 20,000,000
shares authorized, 10,533,070 and 2,098,390 shares issued and
outstanding at March 31, 2012 and December 31, 2011,
respectively) |
105,331 |
20,984 |
Additional paid-in capital |
36,360,944 |
17,365,405 |
Accumulated deficit |
(3,694,197) |
(1,724,303) |
Total stockholders' equity |
32,772,078 |
15,662,086 |
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$76,922,035 |
$38,144,056 |
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See accompanying notes to
condensed consolidated financial statements in Blue Dolphin's
quarterly report on Form 10-Q for the three months ended March 31,
2012. |
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BLUE DOLPHIN ENERGY
COMPANY & SUBSIDIARIES |
Condensed Consolidated
Statements of Operations (Unaudited) |
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Three Months Ended March 31, |
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2012 |
2011 |
REVENUE FROM OPERATIONS |
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Refined product sales |
$45,770,963 |
$ — |
Pipeline operations |
69,910 |
— |
Oil and gas sales |
200,340 |
— |
Total revenue from operations |
46,041,213 |
— |
COST OF OPERATIONS |
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Cost of refined products sold |
44,261,395 |
— |
Refinery operating expenses |
2,445,437 |
— |
Pipeline operating expenses |
109,618 |
— |
Lease operating expenses |
201,713 |
— |
Depletion, depreciation and
amortization |
275,107 |
4,308 |
General and administrative expenses |
525,587 |
113,828 |
Accretion expense |
23,775 |
— |
Total cost of operations |
47,842,632 |
118,136 |
Loss from operations |
(1,801,419) |
(118,136) |
OTHER INCOME (EXPENSE) |
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Net tank rental revenue |
93,955 |
342,745 |
Interest and other income |
1,650 |
6,094 |
Interest expense |
(233,517) |
(12,311) |
Total other income (expense) |
(137,912) |
336,528 |
Income (loss) before income taxes |
(1,939,331) |
218,392 |
Income tax expense |
(30,563) |
— |
Net income (loss) |
$(1,969,894) |
$218,392 |
Loss per common share: |
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Basic |
$(0.37) |
$218,392 |
Diluted |
$(0.37) |
$218,392 |
Weighted average number of common shares
outstanding: |
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Basic |
5,324,410 |
1 |
Diluted |
5,324,410 |
1 |
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See accompanying notes to
condensed consolidated financial statements in Blue Dolphin's
quarterly report on Form 10-Q for the three months ended March 31,
2012. |
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CONTACT: Jonathan P. Carroll
Chief Executive Officer and President
713-568-4725
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