Company Summary: Blue Dolphin Energy Company

Business Overview

• Founded: 1986 as a Delaware corporation
• Industry: Independent downstream energy company operating in the Gulf Coast region of the U.S.
• Main Operations:
  • Refinery Operations (Downstream):
    • A light sweet-crude distillation refinery
    • Capacity: 15,000 barrels per day (bpd)
    • Assets: Crude distillation tower, petroleum storage tanks, loading/unloading facilities, land (56 acres)
  • Tolling & Terminaling Services (Midstream):
    • Storage tanks and logistics facilities for crude, condensate, and refined products
    • Assets: Petroleum storage tanks, loading/unloading infrastructure
  • Inactive Assets:
    • Pipeline assets and offshore oil/gas leasehold interests (fully impaired, no revenue)

Corporate and Organizational Details

• Headquarters: Houston, Texas (801 Travis Street, Suite 2100)
• Employees: Approximately 112 employees supported by affiliates
• Ticker Symbol: OTCQX under “BDCO”
• Ownership:
  • Control: Jonathan Carroll (CEO) and affiliates hold 83.7% voting power
  • Key affiliates involved:
    • LEH: Significant customer and operator of properties
    • Lazarus Capital & Lazarus Energy (LE): Operate and manage all properties
  • Other subsidiaries:
    • Blue Dolphin Exploration Company (BDEX), Blue Dolphin Petroleum Company (BDPC), Blue Dolphin Pipe Line Company (BDPL), Blue Dolphin Services Co. (BDSC)

Financial Highlights (as of December 31, 2024)

• Revenue (2024): ~$317.5 million
• Net Income (2024): Loss of $8.6 million (compared to net income of $31.0 million in 2023)
• Operating Profitability:
  • Gross Profit (2024): $3.9 million
  • EBITDA (2024): $(1.5) million
  • Refining EBITDA (2024): $2.3 million (down from $38.6 million in 2023)
• Sales Volume:
  • Refining: 3.69 million barrels (2024), down from 4.13 million barrels in 2023
  • Main products include jet fuel, naphtha, HOL, and AGO

Customers

• Number of significant customers: 3
  • Leading Customer: LEH (an affiliate), purchasing approximately 30-31% of revenue annually
  • Account receivable from LEH: ~$5.2 million (2024) and ~$4.2 million (2023)
• Customer Base: Distributors, wholesalers, refineries mainly in the Lower Texas Triangle (Houston – San Antonio – Dallas/Fort Worth area)
• Product Sales Breakdown (2024):
  • Jet Fuel: 36.4%
  • Naphtha: 24.8%
  • AGO: 26.4%
  • HOL (Hydrotreated Oil Bottoms & Light Distillates): 12.5%
  • LPG Mix: 0.1%

Employees

• Total Employees: Approximately 112 (managed/support staff from affiliates)
• Workforce Nature: No collective bargaining agreements; focus on attracting skilled personnel

Revenue and Income

• Total Revenue (2024): ~$317.5 million
• Net Loss (2024): $8.6 million
• Prior Year (2023) Net Income: $31.0 million
• Main Factors Influencing Results:
  • Less favorable refining margins
  • Lower sales volumes
  • Inventory impairments
  • Increased operational and administrative expenses

Strategic Focus

• Maintain safe operations and improve health, safety, and environmental systems
• Optimize existing assets and manage turnarounds
• Increase operational efficiencies (e.g., software upgrades)
• Explore renewable energy opportunities, though subject to regulatory and market uncertainties
• Engage with lenders for debt restructuring to improve liquidity

Key Assets

• Refinery in Nixon, Texas: Central asset with a 15,000 bpd crude distillation tower
• Storage Tanks: 1.25 million barrels of capacity
• Involved in offshore pipelines and leases: Fully impaired, no revenue but ongoing decommissioning obligations

Additional Details

• Market: Primarily domestic U.S. in Gulf Coast (PADD 3), with some exports (e.g., to Mexico)
• Product Focus: Jet fuel, naphtha, hydrocarbon bottoms, AGO
• Operational Risks: Downtime, supply chain dependencies, regulatory compliance, environmental liabilities, and regional economic conditions

Summary:
Blue Dolphin Energy Company is a Gulf Coast-focused independent energy company that operates a 15,000 bpd crude oil refinery and offers crude, condensate, and refined product storage and logistics services. It has approximately 112 employees supported primarily by affiliates and controls a small but significant share of the local refining and petrochemical market. In 2024, the company reported revenues of around $317.5 million but incurred a net loss of $8.6 million, largely due to unfavorable margins and lower sales volumes. The company’s operations are heavily influenced by refining margins, crude oil prices, regional demand, and regulatory conditions, with a principal customer being an affiliate, LEH.