Attached files
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| 8-K - BLUE DOLPHIN ENERGY COMPANY - BLUE DOLPHIN ENERGY CO | bdco8k052512.htm |
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BLUE DOLPHIN ENERGY COMPANY
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PRESS RELEASE
FOR IMMEDIATE RELEASE
May 25, 2012
BLUE DOLPHIN REPORTS FIRST QUARTERFINANCIAL RESULTS AND
PROVIDES NIXON FACILITY OPERATIONAL UPDATE
Houston, May 25 / PR Newswire / -- Blue Dolphin Energy Company (“Blue Dolphin”), which acquired Lazarus Energy, LLC (“LE”) from Lazarus Energy Holdings, LLC (“LEH”) in a reverse acquisition effective February 15, 2012, announced condensed consolidatedfinancial results for the three month period ended March 31, 2012 (the “current quarter”) ofa 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.
Contact:
Jonathan P. Carroll
Chief Executive Officer and President
713-568-4725
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.
# # #
BLUE DOLPHIN ENERGY COMPANY & SUBSIDIARIES
Condensed Consolidated Balance Sheets
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March 31, 2012
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December 31, 2011
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(Unaudited)
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2012
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2011
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ASSETS
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CURRENT ASSETS
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Cash and cash equivalents
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$ | 1,109,821 | $ | 1,822 | ||||
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Restricted cash
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192,155 | 192,004 | ||||||
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Accounts receivable
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16,447,101 | — | ||||||
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Prepaid expenses and other current assets
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329,718 | 58,713 | ||||||
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Deposits
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1,140,447 | 473,026 | ||||||
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Inventory
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5,143,569 | 4,533,961 | ||||||
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Total current assets
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24,362,811 | 5,259,526 | ||||||
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Total property and equipment, net
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43,132,695 | 32,307,929 | ||||||
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Debt issue costs
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557,684 | 566,133 | ||||||
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Other assets
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17,076 | 10,468 | ||||||
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Trade name
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184,368 | — | ||||||
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Goodwill
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8,667,401 | — | ||||||
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TOTAL ASSETS
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$ | 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
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$ | 21,663,071 | $ | 4,841,859 | ||||
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Accounts payable, related party
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260,035 | 908,139 | ||||||
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Note payable
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46,318 | 46,318 | ||||||
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Asset retirement obligations, current portion
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242,299 | — | ||||||
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Accrued expenses and other current liabilities
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1,094,408 | 744,921 | ||||||
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Interest payable, current portion
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1,004,515 | 995,916 | ||||||
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Other long-term liabilities, current portion
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1,841,852 | 1,839,501 | ||||||
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Total current liabilities
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26,152,498 | 9,376,654 | ||||||
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Asset retirement obligations, net of current portion
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2,480,402 | — | ||||||
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Long term debt
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14,813,846 | 12,455,102 | ||||||
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Long term interest payable, net of current portion
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703,211 | 650,214 | ||||||
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Total long-term liabilities
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17,997,459 | 13,105,316 | ||||||
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Commitments and contingencies
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STOCKHOLDERS’ EQUITY
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Common stock ($0.01 par value, 20,000,000 shares authorized, 10,533,070 and 2,098,390
shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively)
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105,331 | 20,984 | ||||||
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Additional paid-in capital
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36,360,944 | 17,365,405 | ||||||
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Accumulated deficit
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(3,694,197 | ) | (1,724,303 | ) | ||||
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Total stockholders’ equity
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32,772,078 | 15,662,086 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 76,922,035 | $ | 38,144,056 | ||||
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.
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
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2011
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REVENUE FROM OPERATIONS
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Refined product sales
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$ | 45,770,963 | $ | — | ||||
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Pipeline operations
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69,910 | — | ||||||
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Oil and gas sales
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200,340 | — | ||||||
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Total revenue from operations
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46,041,213 | — | ||||||
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COST OF OPERATIONS
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Cost of refined products sold
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44,261,395 | — | ||||||
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Refinery operating expenses
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2,445,437 | — | ||||||
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Pipeline operating expenses
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109,618 | — | ||||||
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Lease operating expenses
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201,713 | — | ||||||
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Depletion, depreciation and amortization
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275,107 | 4,308 | ||||||
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General and administrative expenses
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525,587 | 113,828 | ||||||
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Accretion expense
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23,775 | — | ||||||
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Total cost of operations
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47,842,632 | 118,136 | ||||||
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Loss from operations
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(1,801,419 | ) | (118,136 | ) | ||||
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OTHER INCOME (EXPENSE)
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Net tank rental revenue
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93,955 | 342,745 | ||||||
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Interest and other income
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1,650 | 6,094 | ||||||
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Interest expense
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(233,517 | ) | (12,311 | ) | ||||
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Total other income (expense)
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(137,912 | ) | 336,528 | |||||
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Income (loss) before income taxes
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(1,939,331 | ) | 218,392 | |||||
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Income tax expense
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(30,563 | ) | — | |||||
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Net income (loss)
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$ | (1,969,894 | ) | $ | 218,392 | |||
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Loss per common share:
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Basic
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$ | (0.37 | ) | $ | 218,392 | |||
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Diluted
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$ | (0.37 | ) | $ | 218,392 | |||
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Weighted average number of common shares outstanding:
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Basic
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5,324,410 | 1 | ||||||
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Diluted
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5,324,410 | 1 | ||||||
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.