Attached files
| file | filename |
|---|---|
| 8-K - BLUE DOLPHIN ENERGY CO. - BLUE DOLPHIN ENERGY CO | bdco8k111912.htm |
 |
PRESS RELEASE
FOR IMMEDIATE RELEASE
November16, 2012
BLUE DOLPHIN REPORTS THIRD QUARTERFINANCIAL RESULTS AND
PROVIDES NIXON FACILITY OPERATIONAL UPDATE
Houston, November 16 / PR Newswire / -- Blue Dolphin Energy Company (“Blue Dolphin”)announced condensed consolidatedfinancial results for the three and nine months ended September 30, 2012.
Blue Dolphin’sprimary asset is a crude oil processing facility located in Nixon, Texas (the “Nixon Facility”), which began operations on a reduced basis in February 2012. The Nixon Facility operated for a total of 90 days for the three months ended September 30, 2012 and for a total of 238 days for the nine months ended September 30, 2012. During the three months ended September 30, 2012, average throughput increased to approximately 10,500 bpd, or 70% of operating capacity, compared to approximately 8,900 bpd, or 59% of operating capacity, during the three months ended June 30, 2012. Management anticipates that throughput levels at the Nixon Facility may approach operating capacity in the first half of 2013.The Nixon Facility had no operations during the three and nine months ended September 30, 2011.
For the three months ended September 30, 2012, Blue Dolphin reported a net loss of $762,761 on total revenue of $104,094,137. For the nine months ended September 30, 2012, Blue Dolphin reported a net loss of $10,130,493 on total revenue of $234,926,203. The net loss for the three months ended September 30, 2012 included:
|
·
|
An impairment and an allowance for doubtful accounts receivable totaling $4,180,159, which related to Blue Dolphin’s 7% undivided interest in the North Sumatra Basin – Langsa Field offshore Indonesia (the “Indonesian Interest”); and
|
|
·
|
an abandonment expense of $539,996 associated with plugging and abandonment costs for High Island A-7. The amount recognized reflects the amount incurred less the amount reserved for the abandonment retirement obligation liability, which was $141,643.We will record additional plugging and abandonment costs as information becomes available to substantiate actual and/or probable costs.
|
During the three months ended September 30, 2012, Blue Dolphin experienced negative cash flow from operations of $28,017, which was a substantial improvement compared to negative cash flow from operations of $3,017,262 during the three months ended June 30, 2012. The liquidity improvement quarter over quarter was primarily the result of higher product sales margins. Refining margins were relatively stable throughout the current quarter, allowing the Nixon Facility to generate positive operating income each month within the three months ended September 30, 2012 and an EBITDA of $5,064,868 for the three months ended September 30, 2012.
In November 2012, Blue Dolphin Exploration Company (“BDEX”), a wholly owned subsidiary of Blue Dolphin, entered into a Sale and Purchase Agreement (the “SPA”) with Blue Sky Langsa Limited (“Blue Sky”) whereby Blue Sky agreed to purchase the Indonesian Interest. Based on the SPA, which is effective October 31, 2012, Blue Sky will acquire the Indonesian Interest for: (i) $800,000 if transaction closing occurs in December 2012 or (ii) $1.0 million if transaction closing occurs in February 2013. As a result of the SPA, Blue Dolphin adjusted the value of the Indonesian Interest to $800,000, which resulted in an impairment charge of $3,858,427for the three months ended September 30, 2012. Blue Dolphin also recorded an allowance for doubtful accounts receivable of $321,732for the three months ended September 30, 2012. The allowance is associated with non-payment of accounts receivable for crude oil liftings revenue by Blue Sky related to the Indonesian Interest.
Blue Dolphin acquired Lazarus Energy, LLC (“LE”) from Lazarus Energy Holdings, LLC in a reverse acquisition effective February 15, 2012. 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.
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:significant dependent relationship with Genesis and its affiliates; 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
|
September 30, 2012
|
December 31, 2011
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS
|
||||||||
|
Cash and cash equivalents
|
$ | 139,273 | $ | 1,822 | ||||
|
Restricted cash
|
192,813 | 192,004 | ||||||
|
Accounts receivable, net
|
8,054,630 | - | ||||||
|
Employee advances
|
- | - | ||||||
|
Prepaid expenses and other current assets
|
174,146 | 58,713 | ||||||
|
Deposits
|
1,236,447 | 473,026 | ||||||
|
Inventory
|
4,901,895 | 4,533,961 | ||||||
|
Loan receivable, net of allowance for loan receivable
|
- | - | ||||||
|
Total current assets
|
14,699,204 | 5,259,526 | ||||||
|
Refinery assets
|
33,909,314 | - | ||||||
|
Pipelines
|
9,223,836 | - | ||||||
|
Oil and gas properties (full-cost method)
|
800,000 | - | ||||||
|
Onshore separation and handling facilities
|
325,435 | - | ||||||
|
Land
|
577,965 | 104,740 | ||||||
|
Other property and equipment
|
598,150 | 217,136 | ||||||
|
Construction in progress
|
607,550 | 32,048,496 | ||||||
|
Property and equipment, at cost:
|
46,042,250 | 32,370,372 | ||||||
|
Less: accumulated depletion, depreciation and amortization
|
1,224,803 | 62,443 | ||||||
|
Property, plant and equipment, net
|
44,817,447 | 32,307,929 | ||||||
|
Debt issue costs, net
|
540,784 | 566,133 | ||||||
|
Other assets
|
11,367 | 10,468 | ||||||
|
Trade name
|
303,346 | - | ||||||
|
Goodwill
|
1,445,720 | - | ||||||
|
TOTAL ASSETS
|
$ | 61,817,868 | $ | 38,144,056 | ||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES
|
||||||||
|
Accounts payable
|
$ | 14,161,594 | $ | 4,841,859 | ||||
|
Accounts payable, related party
|
1,281,936 | 908,139 | ||||||
|
Note payable
|
47,965 | 46,318 | ||||||
|
Asset retirement obligations, current portion
|
- | - | ||||||
|
Accrued expenses and other current liabilities
|
716,123 | 744,921 | ||||||
|
Interest payable, current portion
|
827,777 | 995,916 | ||||||
|
Long-term debt, current portion
|
1,816,903 | 1,839,501 | ||||||
|
Total current liabilities
|
18,852,298 | 9,376,654 | ||||||
|
Long-term liabilities:
|
||||||||
|
Asset retirement obligations
|
896,096 | - | ||||||
|
Deferred taxes
|
- | - | ||||||
|
Long-term debt, net of current portion
|
16,552,638 | 12,455,102 | ||||||
|
Long-term interest payable, net of current portion
|
806,356 | 650,214 | ||||||
|
Total long-term liabilities
|
18,255,090 | 13,105,316 | ||||||
|
TOTAL LIABILITIES
|
37,107,388 | 22,481,970 | ||||||
|
Commitments and contingencies
|
||||||||
|
STOCKHOLDERS' EQUITY
|
||||||||
|
Common stock ($0.01 par value, 20,000,000 shares authorized, 10,545,690 and 8,426,456
|
105,457 | 84,265 | ||||||
|
shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively)
|
||||||||
|
Additional paid-in capital
|
36,459,819 | 17,302,124 | ||||||
|
Members' equity
|
- | |||||||
|
Accumulated deficit
|
(11,854,796 | ) | (1,724,303 | ) | ||||
|
Total stockholders' equity
|
24,710,480 | 15,662,086 | ||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 61,817,868 | $ | 38,144,056 | ||||
See accompanying notes to condensed consolidated financial statements in Blue Dolphin’s
quarterly report on Form 10-Q for the three and nine months ended September 30, 2012.
BLUE DOLPHIN ENERGY COMPANY & SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
REVENUE FROM OPERATIONS
|
||||||||||||||||
|
Refined product sales
|
$ | 103,738,982 | $ | - | $ | 233,926,241 | $ | - | ||||||||
|
Pipeline operations
|
117,712 | - | 312,098 | - | ||||||||||||
|
Oil and gas sales
|
237,443 | - | 687,864 | - | ||||||||||||
|
Services revenue
|
- | - | ||||||||||||||
|
Total revenue from operations
|
104,094,137 | - | 234,926,203 | - | ||||||||||||
|
COST OF OPERATIONS
|
||||||||||||||||
|
Cost of refined products sold
|
96,160,575 | - | 229,853,030 | - | ||||||||||||
|
Refinery operating expenses
|
2,559,456 | - | 5,862,121 | - | ||||||||||||
|
Pipeline operating expenses
|
107,534 | - | 344,654 | - | ||||||||||||
|
Lease operating expenses
|
351,462 | - | 852,137 | - | ||||||||||||
|
General and administrative expenses
|
442,132 | 213,221 | 1,702,439 | 504,161 | ||||||||||||
|
Depletion, depreciation and amortization
|
497,382 | 4,306 | 1,295,738 | 12,920 | ||||||||||||
|
Abandonment expense
|
539,996 | - | 539,996 | - | ||||||||||||
|
Impairment of oil and gas properties
|
3,858,427 | 3,858,427 | - | |||||||||||||
|
Bad debt expense
|
321,732 | 321,732 | - | |||||||||||||
|
Recovery of allowance for doubtful loan receivable
|
- | - | - | |||||||||||||
|
Accretion expense
|
39,276 | - | 104,736 | - | ||||||||||||
|
Gain on sale of property and equipment
|
- | - | ||||||||||||||
|
Total cost of operations
|
104,877,972 | 217,527 | 244,735,010 | 517,081 | ||||||||||||
|
Loss from operations
|
(783,835 | ) | (217,527 | ) | (9,808,807 | ) | (517,081 | ) | ||||||||
|
OTHER INCOME (EXPENSE)
|
||||||||||||||||
|
Net tank rental revenue
|
81,365 | 87,036 | 256,684 | 783,490 | ||||||||||||
|
Interest and other income
|
16,439 | 345 | 20,354 | 6,734 | ||||||||||||
|
Interest expense
|
(74,227 | ) | (11,622 | ) | (583,077 | ) | (35,994 | ) | ||||||||
|
Rental income, related party
|
- | - | - | - | ||||||||||||
|
Unrealized gain (loss) on derivatives
|
- | - | - | - | ||||||||||||
|
Forgiveness of debt income
|
- | - | ||||||||||||||
|
Total other income (expense)
|
23,577 | 75,759 | (306,039 | ) | 754,230 | |||||||||||
|
Income (loss) before income taxes
|
(760,258 | ) | (141,768 | ) | (10,114,846 | ) | 237,149 | |||||||||
|
Tax expense
|
||||||||||||||||
|
Current
|
(2,503 | ) | - | (2,503 | ) | - | ||||||||||
|
Deferred
|
- | - | - | - | ||||||||||||
|
Income tax expense
|
(2,503 | ) | - | (15,647 | ) | - | ||||||||||
|
Net income (loss)
|
$ | (762,761 | ) | $ | (141,768 | ) | $ | (10,130,493 | ) | $ | 237,149 | |||||
|
Income (loss) per common share:
|
||||||||||||||||
|
Basic
|
$ | (0.07 | ) | $ | (0.02 | ) | $ | (0.99 | ) | $ | 0.03 | |||||
|
Diluted
|
$ | (0.07 | ) | $ | (0.02 | ) | $ | (0.99 | ) | $ | 0.03 | |||||
|
Weighted average number of common shares outstanding:
|
||||||||||||||||
|
Basic
|
10,545,690 | 8,426,456 | 10,191,980 | 8,426,456 | ||||||||||||
|
Diluted
|
10,545,690 | 8,426,456 | 10,191,980 | 8,426,456 | ||||||||||||
See accompanying notes to condensed consolidated financial statements in Blue Dolphin’s
quarterly report on Form 10-Q for the three and ninemonths ended September 30, 2012.
BLUE DOLPHIN ENERGY COMPANY & SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
Nine Months Ended September 30,
|
||||||||
|
2012
|
2011
|
|||||||
|
OPERATING ACTIVITIES
|
||||||||
|
Net income (loss)
|
$ | (10,130,493 | ) | $ | 237,149 | |||
|
Adjustments to reconcile net income (loss) to net cash
|
||||||||
|
provided by (used in) operating activities:
|
||||||||
|
Depletion, depreciation and amortization
|
1,287,173 | 12,920 | ||||||
|
Impairment of oil and gas properties
|
3,858,427 | - | ||||||
|
Unrealized loss (gain) on derivatives
|
(21,470 | ) | - | |||||
|
Deferred taxes
|
- | - | ||||||
|
Amortization of debt issue costs
|
25,349 | 25,349 | ||||||
|
Amortization of intangible assets
|
8,565 | - | ||||||
|
Accretion expense
|
104,736 | - | ||||||
|
Abandonment costs incurred
|
(141,099 | ) | - | |||||
|
Stock-based compensation
|
- | - | ||||||
|
Common stock issued for services
|
119,000 | - | ||||||
|
Bad debt expense
|
321,732 | - | ||||||
|
Changes in operating assets and liabilities (net of effects of acquisition in 2012)
|
||||||||
|
Restricted cash
|
(810 | ) | 34,067 | |||||
|
Accounts receivable
|
(7,852,717 | ) | (3,740 | ) | ||||
|
Prepaid expenses and other current assets
|
119,529 | (8,804 | ) | |||||
|
Deposits
|
(763,421 | ) | (68,407 | ) | ||||
|
Inventory
|
(312,766 | ) | 8,366 | |||||
|
Accounts payable, accrued expenses and other liabilities
|
8,057,321 | 290,245 | ||||||
|
Accounts payable, related party
|
2,275,665 | 125,682 | ||||||
|
Net cash provided by (used in) operating activities
|
(3,045,279 | ) | 652,827 | |||||
|
INVESTING ACTIVITIES
|
||||||||
|
Advance of loan receivable
|
- | - | ||||||
|
Exploration and development costs
|
- | - | ||||||
|
Capital expenditures
|
(2,568,449 | ) | (1,067,558 | ) | ||||
|
Cash acquired on acquisition
|
1,674,594 | - | ||||||
|
Net cash used in investing activities
|
(893,855 | ) | (1,067,558 | ) | ||||
|
FINANCING ACTIVITIES
|
||||||||
|
Proceeds from issuance of debt
|
4,788,623 | 452,308 | ||||||
|
Payments on long term debt
|
(713,686 | ) | (31,922 | ) | ||||
|
Proceeds from notes payable
|
24,548 | - | ||||||
|
Payments on notes payable
|
(22,900 | ) | (5,034 | ) | ||||
| - | - | |||||||
|
Net cash provided by financing activities
|
4,076,585 | 415,352 | ||||||
|
Net increase (decrease) in cash and cash equivalents
|
137,451 | 621 | ||||||
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
1,822 | 733 | ||||||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | 139,273 | $ | 1,354 | ||||
|
Supplemental Information:
|
||||||||
|
Non-cash investing and financing activities:
|
||||||||
|
Financing of insurance premiums
|
$ | 82,560 | $ | - | ||||
|
Related party payable converted to equity
|
$ | 993,732 | $ | - | ||||
|
Issuance of stock for acquisition of Blue Dolphin at fair value, inclusive
|
||||||||
|
of cash acquired of $1,674,594
|
$ | 18,046,154 | $ | - | ||||
|
Accrued services payable converted to common stock
|
$ | 20,000 | $ | - | ||||
See accompanying notes to condensed consolidated financial statements in Blue Dolphin’s
quarterly report on Form 10-Q for the three and nine months ended September 30, 2012.
Management uses earnings before interest expense, income taxes and depreciation (“EBITDA”), a non-GAAP financial measure, to assess the operating results and effectiveness of Blue Dolphin’s business segments, which consist of its consolidated businesses and investments. Management believes EBITDA is useful to Blue Dolphin’s investors because it allows them to evaluate Blue Dolphin’s operating performance using the same performance measure analyzed internally by management. EBITDA is adjusted for: (i) items that do not impact Blue Dolphin’s income or loss from continuing operations, such as the impact of accounting changes, (ii) income taxes and (iii) interest expense (or income). Management excludes interest expense (or income) and other expenses or income not pertaining to the operations of Blue Dolphin’s segments from this measure so that investors may evaluate Blue Dolphin’s current operating results without regard to Blue Dolphin’s financing methods or capital structure. Management understands that EBITDA may not be comparable to measurements used by other companies. Additionally, EBITDA should be considered in conjunction with net income (loss) and other performance measures such as operating cash flows.
Blue Dolphin is engaged in three lines of business: (i) ownership of crude oil and condensate processing assets, (ii) pipeline transportation services to producers/shippers and (iii) oil and gas exploration and production. Blue Dolphin’s primary operating asset is the Nixon Facility. Blue Dolphin also operates oil and natural gas pipelines in the Gulf of Mexico region and holds oil and natural gas leasehold interests in the U.S. Gulf of Mexico and Indonesia; however, these operations are considered non-core to Blue Dolphin’s business.
Following is a reconciliation of EBITDA (by business segment) for the three months ended September 30, 2012, and at September 30, 2012.
|
Three Months Ended September 30, 2012
|
||||||||||||||||||||
|
Segment
|
||||||||||||||||||||
|
Crude Oil
|
Oil and Gas
|
|||||||||||||||||||
|
and Condensate
|
Pipeline
|
Exploration &
|
Corporate &
|
|||||||||||||||||
|
Processing
|
Transportation
|
Production
|
Other(1)
|
Total
|
||||||||||||||||
|
Revenues
|
$ | 103,738,982 | $ | 117,712 | $ | 237,443 | $ | - | $ | 104,094,137 | ||||||||||
|
Operation cost(2)
|
98,755,479 | 211,114 | 5,253,900 | 160,097 | 104,380,590 | |||||||||||||||
|
Depletion, depreciation
|
||||||||||||||||||||
|
and amortization
|
||||||||||||||||||||
|
Other non-interest income
|
81,365 | - | - | - | 81,365 | |||||||||||||||
|
EBITDA
|
$ | 5,064,868 | $ | (93,402 | ) | $ | (5,016,457 | ) | $ | (160,097 | ) | $ | (205,088 | ) | ||||||
|
Depletion, depreciation and amortization
|
(497,382 | ) | ||||||||||||||||||
|
Other income (expense), net
|
(57,788 | ) | ||||||||||||||||||
|
Loss before income taxes
|
$ | (760,258 | ) | |||||||||||||||||
|
Capital expenditures
|
$ | 494,312 | $ | - | $ | - | $ | - | $ | 494,312 | ||||||||||
|
Identifiable assets(3)
|
$ | 48,645,278 | $ | 11,350,264 | $ | 812,229 | $ | 1,010,097 | $ | 61,817,868 | ||||||||||
__________________
|
(1)
|
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
|
|
(2)
|
General and administrative costs are allocated based on revenue. In addition, the effect of the economic hedges on refined products, executed by Genesis Energy, LLC (“Genesis”), is included within operation cost of Blue Dolphin’s Crude Oil and Condensate Processing group. Cost of refined products sold includes a realized loss of $325,654 and an unrealized gain of $148,453 for the three months ended September 30, 2012.
|
|
(3)
|
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
|
Following is a reconciliation of EBITDA (by business segment) for the three months ended September 30, 2011, and at September 30, 2011:
|
Three Months Ended September 30, 2011
|
||||||||||||||||||||
|
Segment
|
||||||||||||||||||||
|
Crude Oil
|
Oil and Gas
|
|||||||||||||||||||
|
and Condensate
|
Pipeline
|
Exploration &
|
Corporate &
|
|||||||||||||||||
|
Processing
|
Transportation
|
Production
|
Other(1)
|
Total
|
||||||||||||||||
|
Revenues
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
|
Operation cost(2)
|
213,221 | - | - | - | 213,221 | |||||||||||||||
|
Depletion, depreciation
|
||||||||||||||||||||
|
and amortization
|
||||||||||||||||||||
|
Other non-interest income
|
87,036 | - | - | - | 87,036 | |||||||||||||||
|
EBITDA
|
$ | (126,185 | ) | $ | - | $ | - | $ | - | $ | (126,185 | ) | ||||||||
|
Depletion, depreciation and amortization
|
(4,306 | ) | ||||||||||||||||||
|
Other income (expense), net
|
(11,277 | ) | ||||||||||||||||||
|
Loss before income taxes
|
$ | (141,768 | ) | |||||||||||||||||
|
Capital expenditures
|
$ | 561,888 | $ | - | $ | - | $ | - | $ | 561,888 | ||||||||||
|
Identifiable assets(3)
|
$ | 30,837,718 | $ | - | $ | - | $ | - | $ | 30,837,718 | ||||||||||
_____________________
|
(1)
|
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
|
|
(2)
|
General and administrative costs are allocated based on revenue.
|
|
(3)
|
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
|
Following is a reconciliation of EBITDA (by business segment) for the nine months ended September 30, 2012, and at September 30, 2012:
|
Nine Months Ended September 30, 2012
|
||||||||||||||||||||
|
Segment
|
||||||||||||||||||||
|
Crude Oil
|
Oil and Gas
|
|||||||||||||||||||
|
and Condensate
|
Pipeline
|
Exploration &
|
Corporate &
|
|||||||||||||||||
|
Processing
|
Transportation
|
Production
|
Other(1)
|
Total
|
||||||||||||||||
|
Revenues
|
$ | 233,926,241 | $ | 312,098 | $ | 687,864 | $ | - | $ | 234,926,203 | ||||||||||
|
Operation cost(2)
|
235,987,724 | 648,334 | 6,146,698 | 656,516 | 243,439,272 | |||||||||||||||
|
Depletion, depreciation
|
||||||||||||||||||||
|
and amortization
|
- | - | - | - | - | |||||||||||||||
|
Other non-interest income
|
256,684 | - | - | - | 256,684 | |||||||||||||||
|
EBITDA
|
$ | (1,804,799 | ) | $ | (336,236 | ) | $ | (5,458,834 | ) | $ | (656,516 | ) | $ | (8,256,385 | ) | |||||
|
Depletion, depreciation and amortization
|
(1,295,738 | ) | ||||||||||||||||||
|
Other income (expense), net
|
(562,723 | ) | ||||||||||||||||||
|
Loss before income taxes
|
$ | (10,114,846 | ) | |||||||||||||||||
|
Capital expenditures
|
$ | 2,568,449 | $ | - | $ | - | $ | - | $ | 2,568,449 | ||||||||||
|
Identifiable assets(3)
|
$ | 48,645,278 | $ | 11,350,264 | $ | 812,229 | $ | 1,010,097 | $ | 61,817,868 | ||||||||||
|
(1)
|
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
|
|
(2)
|
General and administrative costs are allocated based on revenue. In addition, the effect of the economic hedges on refined products, executed by Genesis, is included within operation cost of Blue Dolphin’s Crude Oil and Condensate Processing group. Cost of refined products sold includes a realized loss of $327,256 and an unrealized gain of $21,470 for the nine months ended September 30, 2012.
|
|
(3)
|
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
|
Following is a reconciliation of EBITDA (by business segment) for the nine months ended September 30, 2011, and at September 30, 2011:
|
Nine Months Ended September 30, 2011
|
||||||||||||||||||||
|
Segment
|
||||||||||||||||||||
|
Crude Oil
|
Oil and Gas
|
|||||||||||||||||||
|
and Condensate
|
Pipeline
|
Exploration &
|
Corporate &
|
|||||||||||||||||
|
Processing
|
Transportation
|
Production
|
Other(1)
|
Total
|
||||||||||||||||
|
Revenues
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
|
Operation cost(2)
|
504,161 | - | - | - | 504,161 | |||||||||||||||
|
Depletion, depreciation
|
||||||||||||||||||||
|
and amortization
|
- | - | - | - | - | |||||||||||||||
|
Other non-interest income
|
783,490 | - | - | - | 783,490 | |||||||||||||||
|
EBITDA
|
$ | 279,329 | $ | - | $ | - | $ | - | $ | 279,329 | ||||||||||
|
Depletion, depreciation and amortization
|
(12,920 | ) | ||||||||||||||||||
|
Other income (expense), net
|
(29,260 | ) | ||||||||||||||||||
|
Income before income taxes
|
$ | 237,149 | ||||||||||||||||||
|
Capital expenditures
|
$ | 1,067,558 | $ | - | $ | - | $ | - | $ | 1,067,558 | ||||||||||
|
Identifiable assets(3)
|
$ | 30,837,718 | $ | - | $ | - | $ | - | $ | 30,837,718 | ||||||||||
|
(1)
|
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
|
|
(2)
|
General and administrative costs are allocated based on revenue.
|
|
(3)
|
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
|