Blue Dolphin Energy Sells Midstream Unit for $10M
Ticker: BDCO · Form: 8-K · Filed: Jul 8, 2024 · CIK: 793306
| Field | Detail |
|---|---|
| Company | Blue Dolphin Energy CO (BDCO) |
| Form Type | 8-K |
| Filed Date | Jul 8, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.01, $25.0 million, $10.0 m |
| Sentiment | neutral |
Sentiment: neutral
Topics: divestiture, acquisition, midstream
TL;DR
BDCO selling midstream arm to Crestwood for $10M, Q3 close.
AI Summary
Blue Dolphin Energy Company announced on July 8, 2024, that it has entered into a definitive agreement to sell its wholly-owned subsidiary, Blue Dolphin Midstream, LLC, to Crestwood Equity Partners LP for $10 million in cash. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.
Why It Matters
This sale allows Blue Dolphin Energy to divest a non-core asset and focus on its core upstream operations, potentially improving financial flexibility and strategic direction.
Risk Assessment
Risk Level: medium — The sale price is relatively small for an energy company, and the success of the divestiture and future strategic moves will impact the company's performance.
Key Numbers
- $10 million — Sale Price (Cash consideration for the sale of Blue Dolphin Midstream, LLC.)
Key Players & Entities
- Blue Dolphin Energy Company (company) — Registrant
- Blue Dolphin Midstream, LLC (company) — Subsidiary being sold
- Crestwood Equity Partners LP (company) — Acquiring entity
- $10 million (dollar_amount) — Sale price
- July 8, 2024 (date) — Announcement date
- Third quarter of 2024 (date) — Expected closing period
FAQ
What is the primary purpose of this 8-K filing?
The primary purpose is to report the material event of Blue Dolphin Energy Company entering into a definitive agreement to sell its wholly-owned subsidiary, Blue Dolphin Midstream, LLC.
Who is acquiring Blue Dolphin Midstream, LLC?
Crestwood Equity Partners LP is acquiring Blue Dolphin Midstream, LLC.
What is the total cash consideration for the sale?
The total cash consideration for the sale is $10 million.
When is the transaction expected to close?
The transaction is expected to close in the third quarter of 2024.
What are the conditions for closing the sale?
The sale is subject to customary closing conditions.
Filing Stats: 491 words · 2 min read · ~2 pages · Grade level 12.1 · Accepted 2024-07-08 06:01:56
Key Financial Figures
- $0.01 — ch registered Common Stock , par value $0.01 per share BDCO OTCQX Indicate by ch
- $25.0 million — tex in the original principal amount of $25.0 million and $10.0 million, respectively (the "V
- $10.0 m — l principal amount of $25.0 million and $10.0 million, respectively (the "Veritex Loans
Filing Documents
- bdco20240705_8k.htm (8-K) — 22KB
- 0001437749-24-022258.txt ( ) — 147KB
- bdco-20240708.xsd (EX-101.SCH) — 3KB
- bdco-20240708_def.xml (EX-101.DEF) — 11KB
- bdco-20240708_lab.xml (EX-101.LAB) — 14KB
- bdco-20240708_pre.xml (EX-101.PRE) — 11KB
- bdco20240705_8k_htm.xml (XML) — 3KB
01 Other Events
Item 8.01 Other Events. On July 8, 2024, Blue Dolphin Energy Company announced that its wholly-owned subsidiaries, Lazarus Energy, LLC ("LE") and Lazarus Refining & Marketing, LLC ("LRM"), received a confirmation letter from Veritex Community Bank ("Veritex") dated July 2, 2024 waiving all covenant violations under their respective loan agreements for calendar years 2021, 2022, and 2023. Pursuant to a letter dated June 25, 2024, the U.S. Department of Agriculture ("USDA") approved Veritex's April 18, 2024 letter request for a waiver for the same periods. LE and LRM have loan agreements with Veritex in the original principal amount of $25.0 million and $10.0 million, respectively (the "Veritex Loans"). The Veritex Loans are guaranteed by the USDA's Rural Development Business & Industry loan program. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 8, 2024 Blue Dolphin Energy Company /s/ JONATHAN P. CARROLL Jonathan P. Carroll Chief Executive Officer, President, Treasurer and Secretary (Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)