Delaware
(State or Other Jurisdiction
of Incorporation)
|
0-15905
(Commission File Number)
|
73-1268729
(IRS Employer Identification No.)
|
Item 2.02
|
Results of Operations and Financial Condition.
|
(d)
|
Exhibits.
|
99.1
|
Blue Dolphin Energy Company Press Release Issued August 14, 2014.
|
Blue Dolphin Energy Company
|
|
/s/ JONATHAN P. CARROLL
|
|
Jonathan P. Carroll
Chairman of the Board, Chief Executive Officer,
President, Assistant Treasurer, and Secretary
(Principal Executive Officer)
|
99.1
|
Blue Dolphin Energy Company Press Release Issued August 14, 2014.
|
●
|
Total Earnings before Interest, Income Taxes and Depreciation (“EBITDA”) increased $6,592,449 to $2,096,895 for the Second Quarter 2014 from a negative EBITDA of $4,495,554 for the Second Quarter 2013; total EBITDA increased $13,758,645 to $9,108,776 for the Six Months 2014 from a negative EBITDA of $4,649,869 for the Six Months 2013;
|
●
|
Net Income increased $6,545,567 to $1,438,557 for the Second Quarter 2014 from a net loss of $5,107,010 for the Second Quarter 2013; net income increased $13,503,171 to $7,632,830 for the Six Months 2014 from a net loss of $5,870,341 for the Six Months 2013; and
|
●
|
Cash Flow from Operations increased $8,501,451 to $5,345,737 for the Six Months 2014 from a negative cash flow from operations of $3,155,714 for the Six Months 2013.
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About Blue Dolphin
|
Blue Dolphin Energy Company (OTCQX: BDCO) is an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale. Blue Dolphin’s primary business is refinery operations at the Nixon Facility, which includes the refining of crude oil and condensate into marketable finished and intermediate products, as well as petroleum storage and terminaling. Blue Dolphin also owns and operates pipeline assets and has leasehold interests in oil and gas properties. For additional information, visit Blue Dolphin's corporate website at http://www.blue-dolphin-energy.com.
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Blue Dolphin Energy Company & Subsidiaries
|
BLUE DOLPHIN ENERGY COMPANY & SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEET
|
||||||||
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 1,441,199 | $ | 434,717 | ||||
Restricted cash
|
1,004,497 | 327,388 | ||||||
Accounts receivable
|
8,136,853 | 13,487,106 | ||||||
Prepaid expenses and other current assets
|
299,979 | 333,683 | ||||||
Deposits
|
861,713 | 1,219,660 | ||||||
Inventory
|
7,501,537 | 4,686,399 | ||||||
Total current assets
|
19,245,778 | 20,488,953 | ||||||
Total property and equipment, net
|
36,237,745 | 36,388,666 | ||||||
Surety bonds
|
850,000 | - | ||||||
Debt issue costs, net
|
481,636 | 498,536 | ||||||
Trade name
|
303,346 | 303,346 | ||||||
TOTAL ASSETS
|
$ | 57,118,505 | $ | 57,679,501 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
$ | 16,829,706 | $ | 20,783,541 | ||||
Accounts payable, related party
|
2,263,719 | 3,659,340 | ||||||
Notes payable
|
1,949,401 | 11,884 | ||||||
Asset retirement obligations, current portion
|
64,981 | 107,388 | ||||||
Accrued expenses and other current liabilities
|
2,138,781 | 1,600,444 | ||||||
Interest payable, current portion
|
50,348 | 40,272 | ||||||
Long-term debt, current portion
|
427,176 | 2,215,918 | ||||||
Total current liabilities
|
23,724,112 | 28,418,787 | ||||||
Long-term liabilities:
|
||||||||
Asset retirement obligations, net of current portion
|
1,893,764 | 1,490,273 | ||||||
Deferred revenues and expenses
|
777,966 | - | ||||||
Long-term debt, net of current portion
|
9,731,190 | 13,889,349 | ||||||
Long-term interest payable, net of current portion
|
1,169,931 | 1,767,381 | ||||||
Total long-term liabilities
|
13,572,851 | 17,147,003 | ||||||
TOTAL LIABILITIES
|
37,296,963 | 45,565,790 | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Common stock ($0.01 par value, 20,000,000 shares authorized;10,596,218 and 10,580,973
|
||||||||
shares issued at June 30, 2014 and December 31, 2013, respectively)
|
105,963 | 105,810 | ||||||
Additional paid-in capital
|
36,698,813 | 36,623,965 | ||||||
Accumulated deficit
|
(16,183,234 | ) | (23,816,064 | ) | ||||
Treasury stock, 150,000 shares at cost
|
(800,000 | ) | (800,000 | ) | ||||
Total stockholders' equity
|
19,821,542 | 12,113,711 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 57,118,505 | $ | 57,679,501 |
Blue Dolphin Energy Company & Subsidiaries
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
REVENUE FROM OPERATIONS
|
||||||||||||||||
Refined product sales
|
$ | 102,716,073 | $ | 104,312,768 | $ | 223,092,224 | $ | 213,484,275 | ||||||||
Pipeline operations
|
67,862 | 77,105 | 121,893 | 150,253 | ||||||||||||
Total revenue from operations
|
102,783,935 | 104,389,873 | 223,214,117 | 213,634,528 | ||||||||||||
COST OF OPERATIONS
|
||||||||||||||||
Cost of refined products sold
|
97,862,361 | 105,871,717 | 208,277,968 | 212,194,378 | ||||||||||||
Refinery operating expenses
|
2,641,205 | 2,724,644 | 5,596,224 | 5,469,853 | ||||||||||||
Pipeline operating expenses
|
61,713 | 36,408 | 89,442 | 81,779 | ||||||||||||
Lease operating expenses
|
6,820 | 14,390 | 13,996 | 41,291 | ||||||||||||
General and administrative expenses
|
427,060 | 461,539 | 796,544 | 946,103 | ||||||||||||
Depletion, depreciation and amortization
|
391,167 | 331,727 | 781,772 | 660,515 | ||||||||||||
Abandonment expense
|
- | 23,901 | - | 51,352 | ||||||||||||
Accretion expense
|
53,731 | 31,177 | 104,533 | 56,340 | ||||||||||||
Total cost of operations
|
101,444,057 | 109,495,503 | 215,660,479 | 219,501,611 | ||||||||||||
Income (loss) from operations
|
1,339,878 | (5,105,630 | ) | 7,553,638 | (5,867,083 | ) | ||||||||||
OTHER INCOME (EXPENSE)
|
||||||||||||||||
Tank rental and easement revenue
|
365,850 | 278,349 | 773,366 | 556,699 | ||||||||||||
Interest and other income
|
14,378 | 977 | 43,598 | 1,812 | ||||||||||||
Interest expense
|
(207,379 | ) | (280,706 | ) | (461,179 | ) | (561,769 | ) | ||||||||
Total other income (expense)
|
172,849 | (1,380 | ) | 355,785 | (3,258 | ) | ||||||||||
Income (loss) before income taxes
|
1,512,727 | (5,107,010 | ) | 7,909,423 | (5,870,341 | ) | ||||||||||
Income tax expense, current
|
(74,170 | ) | - | (276,593 | ) | - | ||||||||||
Net income (loss)
|
$ | 1,438,557 | $ | (5,107,010 | ) | $ | 7,632,830 | $ | (5,870,341 | ) | ||||||
Income (loss) per common share
|
||||||||||||||||
Basic
|
$ | 0.14 | $ | (0.49 | ) | $ | 0.73 | $ | (0.56 | ) | ||||||
Diluted
|
$ | 0.14 | $ | (0.49 | ) | $ | 0.73 | $ | (0.56 | ) | ||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
10,441,695 | 10,421,629 | 10,436,363 | 10,465,736 | ||||||||||||
Diluted
|
10,441,695 | 10,421,629 | 10,436,363 | 10,465,736 |
Blue Dolphin Energy Company & Subsidiaries
|
Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net income (loss)
|
$ | 7,632,830 | $ | (5,870,341 | ) | |||
Adjustments to reconcile net income (loss) to net cash
|
||||||||
provided by (used in) operating activities:
|
||||||||
Depletion, depreciation and amortization
|
781,772 | 660,515 | ||||||
Unrealized loss on derivatives
|
(44,400 | ) | (215,300 | ) | ||||
Amortization of debt issue costs
|
16,900 | 16,900 | ||||||
Amortization of intangible assets
|
- | 9,463 | ||||||
Accretion expense
|
104,533 | 56,340 | ||||||
Abandonment costs incurred
|
- | 51,352 | ||||||
Common stock issued for services
|
75,001 | 50,000 | ||||||
Changes in operating assets and liabilities
|
||||||||
Restricted cash
|
(677,109 | ) | 62,226 | |||||
Accounts receivable
|
5,350,253 | 6,416,559 | ||||||
Prepaid expenses and other current assets
|
33,704 | (36,072 | ) | |||||
Deposits and other assets
|
(492,053 | ) | (4,213 | ) | ||||
Inventory
|
(2,815,138 | ) | (1,033,422 | ) | ||||
Accounts payable, accrued expenses and other liabilities
|
(3,224,935 | ) | (4,233,122 | ) | ||||
Accounts payable, related party
|
(1,395,621 | ) | 913,401 | |||||
Net cash provided by operating activities
|
5,345,737 | (3,155,714 | ) | |||||
INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(329,871 | ) | (887,970 | ) | ||||
Proceeds from sale of assets
|
- | 201,000 | ||||||
Net cash used in investing activities
|
(329,871 | ) | (686,970 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from issuance of debt
|
- | 3,705,191 | ||||||
Payments on long-term debt
|
(5,946,901 | ) | (60,876 | ) | ||||
Proceeds from notes payable
|
2,000,000 | 15,032 | ||||||
Payments on notes payable
|
(62,483 | ) | (56,740 | ) | ||||
Net cash used in financing activities
|
(4,009,384 | ) | 3,602,607 | |||||
Net decrease in cash and cash equivalents
|
1,006,482 | (240,077 | ) | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
434,717 | 420,896 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | 1,441,199 | $ | 180,819 | ||||
Supplemental Information:
|
||||||||
Non-cash operating activities
|
||||||||
Reduction in accounts receivable in exchange for treasury stock received
|
||||||||
Surety bond funded by seller of pipeline interest
|
$ | 850,000 | $ | - | ||||
Non-cash investing and financing activities:
|
||||||||
New asset retirement obligations
|
$ | 300,980 | $ | - | ||||
Accrued services payable converted to common stock
|
$ | - | $ | 50,000 | ||||
Interest paid
|
$ | 1,048,553 | $ | 521,837 | ||||
Blue Dolphin Energy Company & Subsidiaries
|
Three Months Ended June 30, 2014
|
||||||||||||||||
Segment
|
||||||||||||||||
Refinery
|
Pipeline
|
Corporate &
|
||||||||||||||
Operations
|
Transportation
|
Other
|
Total
|
|||||||||||||
Revenues
|
`
|
$ | 67,862 | $ | - | $ | 67,862 | |||||||||
Operation cost(1)(2)(3)
|
(100,566,876 | ) | (122,263 | ) | (363,751 | ) | (101,052,890 | ) | ||||||||
Other non-interest income
|
282,517 | 83,333 | - | 365,850 | ||||||||||||
EBITDA
|
$ | (100,284,359 | ) | $ | 28,932 | $ | (363,751 | ) | $ | (100,619,178 | ) | |||||
Depletion, depreciation and amortization
|
(391,167 | ) | ||||||||||||||
Other income (expense), net
|
(193,001 | ) | ||||||||||||||
Income before income taxes
|
$ | (101,203,346 | ) | |||||||||||||
Capital expenditures
|
$ | 270,693 | $ | - | $ | - | $ | 270,693 | ||||||||
Identifiable assets(4)
|
$ | 53,458,327 | $ | 3,132,068 | $ | 528,110 | $ | 57,118,505 |
(1)
|
“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
|
(2)
|
“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory. Cost of refined products sold within operation cost includes a realized loss of $398,639 and an unrealized gain of $171,500.
|
(3)
|
“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
|
(4)
|
Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.
|
Three Months Ended June 30, 2013
|
||||||||||||||||
Segment
|
||||||||||||||||
Refinery
|
Pipeline
|
Corporate &
|
||||||||||||||
Operations
|
Transportation
|
Other
|
Total
|
|||||||||||||
Revenues
|
$ | 104,312,768 | $ | 77,105 | $ | - | $ | 104,389,873 | ||||||||
Operation cost(1)(2)(3)
|
(108,600,407 | ) | (164,461 | ) | (398,908 | ) | (109,163,776 | ) | ||||||||
Other non-interest income
|
278,349 | - | - | 278,349 | ||||||||||||
EBITDA
|
$ | (4,009,290 | ) | $ | (87,356 | ) | $ | (398,908 | ) | $ | (4,495,554 | ) | ||||
Depletion, depreciation and amortization
|
(331,727 | ) | ||||||||||||||
Other income (expense), net
|
(279,729 | ) | ||||||||||||||
Income before income taxes
|
$ | (5,107,010 | ) | |||||||||||||
Capital expenditures
|
$ | 357,744 | $ | - | $ | - | $ | 357,744 | ||||||||
Identifiable assets(4)
|
$ | 47,519,385 | $ | 1,639,318 | $ | 778,160 | $ | 49,936,863 |
(1)
|
“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
|
(2)
|
“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory. Cost of refined products sold within operation cost includes a realized loss of $212,001 and an unrealized gain of $267,350.
|
(3)
|
“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
|
(4)
|
Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.
|
Six Months Ended June 30, 2014
|
||||||||||||||||
Segment
|
||||||||||||||||
Refinery
|
Pipeline
|
Corporate &
|
||||||||||||||
Operations
|
Transportation
|
Other
|
Total
|
|||||||||||||
Revenues
|
$ | 223,092,224 | $ | 121,893 | $ | - | $ | 223,214,117 | ||||||||
Operation cost(1)(2)(3)
|
(213,935,454 | ) | (244,773 | ) | (698,480 | ) | (214,878,707 | ) | ||||||||
Other non-interest income
|
565,033 | 208,333 | - | 773,366 | ||||||||||||
EBITDA
|
$ | 9,721,803 | $ | 85,453 | $ | (698,480 | ) | $ | 9,108,776 | |||||||
Depletion, depreciation and amortization
|
(781,772 | ) | ||||||||||||||
Other income (expense), net
|
(417,581 | ) | ||||||||||||||
Income before income taxes
|
$ | 7,909,423 | ||||||||||||||
Capital expenditures
|
$ | 329,871 | $ | - | $ | - | $ | 329,871 | ||||||||
Identifiable assets(4)
|
$ | 53,458,327 | $ | 3,132,068 | $ | 528,110 | $ | 57,118,505 |
(1)
|
“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
|
(2)
|
“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory. Cost of refined products sold within operation cost includes a realized loss of $453,109 and an unrealized gain of $44,400.
|
(3)
|
“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
|
(4)
|
Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.
|
Six Months Ended June 30, 2013
|
||||||||||||||||
Segment
|
||||||||||||||||
Refinery
|
Pipeline
|
Corporate &
|
||||||||||||||
Operations
|
Transportation
|
Other
|
Total
|
|||||||||||||
Revenues
|
$ | 213,484,275 | $ | 150,253 | $ | - | $ | 213,634,528 | ||||||||
Operation cost(1)(2)(3)
|
(217,664,084 | ) | (318,960 | ) | (858,052 | ) | (218,841,096 | ) | ||||||||
Other non-interest income
|
556,699 | - | - | 556,699 | ||||||||||||
EBITDA
|
$ | (3,623,110 | ) | $ | (168,707 | ) | $ | (858,052 | ) | $ | (4,649,869 | ) | ||||
Depletion, depreciation and amortization
|
(660,515 | ) | ||||||||||||||
Other income (expense), net
|
(559,957 | ) | ||||||||||||||
Loss before income taxes
|
$ | (5,870,341 | ) | |||||||||||||
Capital expenditures
|
$ | 887,970 | $ | - | $ | - | $ | 887,970 | ||||||||
Identifiable assets(4)
|
$ | 47,519,385 | $ | 1,639,318 | $ | 778,160 | $ | 49,936,863 |
(1)
|
“Refinery Operations” and “Pipeline Transportation” include an allocation of general and administrative expenses based on respective revenue.
|
(2)
|
“Refinery Operations” includes the effect of economic hedges on our refined petroleum products and crude oil inventory. Cost of refined products sold within operation cost includes a realized loss of $248,441 and an unrealized gain of $215,300.
|
(3)
|
“Corporate and Other” includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees and legal expense.
|
(4)
|
Identifiable assets contain related legal obligations of each business segment including cash, accounts receivable and recorded net assets.
|