Blue Dolphin Energy Company (BDCO)

[Enterprising Investor]

Blue Dolphin Reports First Quarter 2015 Results (5/15/15)

Houston, May 15, 2015 / Issuer Direct / -- Blue Dolphin Energy Company (“Blue Dolphin”)(OTCQX:BDCO), an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale, reported first quarter 2015 results.

Performance Highlights


- Total adjusted EBITDA increased $1.7 million, or nearly 25%, for the quarter ended March 31, 2015 compared to the quarter ended March 31, 2014; and

- Refinery operations adjusted EBITDA increased $1.8 million, or nearly 25%, for the first quarter of 2015 compared to the same period a year earlier.

Blue Dolphin reported total adjusted EBITDA of $8.7 million for the quarter ended March 31, 2015 compared to total adjusted EBITDA of $7.0 million for the prior year period. Blue Dolphin reported refinery operations adjusted EBITDA of $9.1 million for the quarter ended March 31, 2015 compared to refinery operations adjusted EBITDA of $7.3 million for the prior year period. (See “Non-GAAP Performance Measures” in this press release for the definition of adjusted EBITDA. A reconciliation of adjusted EBITDA to net income is also provided herein.) Blue Dolphin reported net income of $3.7 million, or income of $0.35 per share, for the quarter ended March 31, 2015 compared to net income of $6.2 million, or income of $0.59 per share, for the same quarter in 2014.

“Our refinery operations adjusted EBITDA improved significantly between the periods, driven by lower crude costs and improved refining margins despite relatively flat throughput and production volumes,” said Jonathan P. Carroll, Chairman, Chief Executive Officer and President of Blue Dolphin.

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Total cash flow from operations totaled $2.6 million for quarter ended March 31, 2015 compared to $5.2 million for the same quarter a year earlier, representing a decrease of $2.6 million. The decrease in total cash flow from operations was primarily due to payments of $1.8 million and $1.0 million in JMA Profit Share and accounts payable, related party. The Nixon Facility experienced no days for downtime in the quarter ended March 31, 2015 or 2014. The Nixon Facility processed 1,062,388 barrels (“bbls”), or 11,804 barrels per day (“bpd”), of crude oil and condensate in the first quarter 2015 compared to 1,092,007 bbls, or 12,133 bpd, of crude oil and condensate for first quarter 2014. The Nixon Facility produced 1,044,210 bbls, or 11,602 bpd, of refined petroleum products in the first quarter 2015 compared to 1,073,638 bbls, or 11,929 bpd, of refined petroleum products in the same period a year earlier. Total refinery throughput and total refinery production remained relatively stable between the periods.

The capacity utilization rate for refinery throughput for the first quarter 2015 was 78.7% compared to 80.9% for the first quarter 2014, reflecting a nominal decrease of approximately 2%. The capacity utilization rate for refinery production for the same periods was 77.3% and 79.5%, respectively, reflecting a nominal decrease of approximately 2%. The decrease in capacity utilization rates for refinery throughput and refinery production related to slight decreases in throughput and production volumes. Fuel and losses at the Nixon Facility were 18,178 bbls, or 202 bpd, compared to 18,369, or 204 bpd, for comparable periods. The nominal decrease in fuel and losses of 191 bbls, or 2 bpd, was the result of operational efficiency improvements.

Refinery operating income before the JMA Profit Share was $8.8 million for the quarter ended March 31, 2015 compared to $7.0 million for the same period a year earlier. Refinery operating income including the JMA Profit Share was $6.4 million for the quarter ended March 31, 2015 compared to $7.0 million for the comparable period a year earlier.

Non-GAAP Performance Measures

This press release and its accompanying financial schedules report adjusted EBITDA, EBITDA, and refinery operating income, which are financial performance measures defined as non-GAAP by the Securities and Exchange Commission (the “SEC”). These non-GAAP financial performance measures are used by management to assess Blue Dolphin’s operating results and the effectiveness of its business segments. Blue Dolphin’s financial performance measures may be different than non-GAAP financial performance measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles ("GAAP").

Below are the definitions of non-GAAP performance measures used by management in this press release:

- Adjusted earnings before interest, income taxes and depreciation (“EBITDA”) reflects EBITDA less the JMA Profit Share. The JMA Profit Share represents the GEL Profit Share plus the GEL Performance Fee for the period pursuant to the Joint Marketing Agreement. Refinery Operations Adjusted EBITDA reflects adjusted EBITDA for our refinery operations business segment. Total adjusted EBITDA reflects adjusted EBITDA for our refinery operations and pipeline transportation business segments, as well as corporate and other;

- EBITDA earnings are adjusted for: (i) interest income (expense), (ii) income taxes, and (iii) depreciation and amortization. We exclude from EBITDA other expenses or income not pertaining to the operations of our business segments. Refinery operations EBITDA reflects EBITDA for our refinery operations business segment. Total EBITDA reflects EBITDA for our refinery operations and pipeline transportation business segments, as well as corporate and other; and

- Refinery operating income reflects refined petroleum product sales less direct operating costs (including cost of refined petroleum products sold and refinery operating expenses) and the JMA profit share, which is an indirect operating expense.

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 15,000 bpd 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, which are considered non-core. For additional 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

http://www.sec.gov/Archives/edgar/data/793306/000135448815002556/bdco_ex991.htm