Blue Dolphin Energy Co. Q2 2024: Net Loss, $1M Restricted Cash

TL;DR

Blue Dolphin Energy Q2 loss $0.01/share, $1M restricted cash now required.

AI Summary

Blue Dolphin Energy Co. reported its Q2 2024 results, showing a net loss of $0.01 per share. The company's restricted cash, noncurrent, increased to $1.0 million as of June 30, 2024, due to a required balance in a payment reserve account with Veritex. This filing also mentions fees associated with an intercompany tolling agreement related to naphtha volumes and general administrative expenses within refinery operations.

Why It Matters

The increase in restricted cash highlights a specific financial commitment, while the mention of tolling fees and G&A expenses provides insight into operational costs for Blue Dolphin Energy.

Risk Assessment

Risk Level: medium — The company's financial performance and operational costs, including specific fees and reserve requirements, present moderate risks.

Key Numbers

• $0.01 — Net Loss Per Share (Reported for Q2 2024)
• $1.0 million — Restricted Cash, Noncurrent (Balance as of June 30, 2024, required by Veritex)
• $0.0 — Restricted Cash, Noncurrent (Balance as of December 31, 2023)

Key Players & Entities

• Blue Dolphin Energy Co. (company) — Filer
• Veritex (company) — Financial institution holding payment reserve
• $1.0 million (dollar_amount) — Restricted cash balance as of June 30, 2024
• $0.0 (dollar_amount) — Restricted cash balance as of December 31, 2023
• January 2, 2024 (date) — Date payment reserve account was replenished

FAQ

Key Financial Figures

• $0.01 — er of shares of common stock, par value $0.01 per share, outstanding as of August 14,
• $5.0 million — ing capital purposes up to a maximum of $5.0 million in the aggregate; initial term expires
• $4.0 million — LEH in the original principal amount of $4.0 million; original interest accrued at 16.00% an
• $0.003 million — ing August 31, 2024; rent approximately $0.003 million per month; management is currently expl
• $0.5 million — SBA in the original principal amount of $0.5 million; the note was modified in February 2022
• $1.5 million — 022 to increase the principal amount by $1.5 million to $2.0 million; additional principal u
• $2.0 million — the principal amount by $1.5 million to $2.0 million; additional principal used for working
• $0.01 million — monthly principal and interest payment $0.01 million; payments deferred first thirty (30) mo
• $0.7 million — rst in the original principal amount of $0.7 million; loan represents conversion of prior eq
• $0.0013 million — monthly principal and interest payment $0.0013 million; security includes first priority lien
• $8.0 million — nc. in the original principal amount of $8.0 million; debt held by John Kissick (the "Kissic
• $3.7 million — ded to increase the principal amount by $3.7 million; the additional principal was used to r
• $11.2 million — he Kissick Debt to satisfy in full LE's $11.2 million obligation to Kissick Noteholder under
• $0.50 — by barge; three-year term; tank rental $0.50 per bbl per month. LE Term Loan Due 20
• $25.0 million — ors in the original principal amount of $25.0 million; Jonathan Carroll required to provide p

Filing Documents

• bdco20240630_10q.htm (10-Q) — 2289KB
• ex_689369.htm (EX-31.1) — 13KB
• ex_689370.htm (EX-32.1) — 6KB
• pic01.jpg (GRAPHIC) — 3KB
• 0001437749-24-026879.txt ( ) — 10656KB
• bdco-20240630.xsd (EX-101.SCH) — 86KB
• bdco-20240630_cal.xml (EX-101.CAL) — 53KB
• bdco-20240630_def.xml (EX-101.DEF) — 545KB
• bdco-20240630_lab.xml (EX-101.LAB) — 392KB
• bdco-20240630_pre.xml (EX-101.PRE) — 582KB
• bdco20240630_10q_htm.xml (XML) — 2241KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 13 Consolidated Balance Sheets (Unaudited) 13 Consolidated Statements of Operations (Unaudited) 14 Consolidated Statements of Stockholders ' Equity (Unaudited) 15 Consolidated Statements of Cash Flows (Unaudited) 16

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 17 ITEM 2. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 40 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 57 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 57

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 58 ITEM 1A.

RISK FACTORS

RISK FACTORS 59 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 60 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 60 ITEM 4. MINE SAFETY DISCLOSURES 60 ITEM 5. OTHER INFORMATION 60 ITEM 6. EXHIBITS 61

SIGNATURES

SIGNATURES 62 Blue Dolphin Energy Company June 30, 2024 Page 2 Table of Contents Glossary of Terms Throughout this Quarterly Report on Form 10-Q, we have used the following terms: Affiliate . Refers, either individually or collectively, to certain related parties including Jonathan Carroll, Chairman and Chief Executive Officer of Blue Dolphin, and his affiliates (including Ingleside and Lazarus Capital) and/or LEH and its affiliates (including LMT and LTRI). Together, Jonathan Carroll and LEH owned 83% of the Common Stock as of the filing date of this report. Affiliate Revolving Credit Agreement . A credit agreement between LEH and its affiliates and Blue Dolphin and its subsidiaries effective April 1, 2024; extends credit to Blue Dolphin and its subsidiaries, at LEH's sole discretion, for working capital purposes up to a maximum of $5.0 million in the aggregate; initial term expires on April 30, 2025; automatically renews for one year periods unless sooner terminated by the parties; interest accrues at the WSJ Prime rate plus 2.00%, compounded annually, and paid quarterly. AMT . Alternative Minimum Tax. Amended and Restated Jet Fuel Sales Agreement . Product agreement for the sale of jet fuel by LE to LEH; effective April 1, 2023; one-year automatic renewals; currently renewed through March 31, 2025; LEH purchases all jet fuel produced by LE; LEH sells the jet fuel to the DLA under preferential pricing terms due to its HUBZone certification. ARO . Asset retirement obligations. ASU . Accounting Standards Update. AGO . Atmospheric gas oil (also known as atmospheric tower bottoms) is the heaviest product boiled by a crude distillation tower operating at atmospheric pressure. This fraction ordinarily sells as distillate fuel oil, either in pure form or blended with cracked stocks. Certain ethylene plants, called heavy oil crackers, can take AGO as feedstock. bbl . Barrel; a unit of volume equal to 42 U.S. gallons. BDEX . Blue Dolphin Exploration Comp

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View this 10-Q filing on SEC EDGAR