Blue Dolphin Energy Company (BDCO)

[jmjjw]

Does this article give any clues to a possible range of valuation costs for an ADU? Or is it completely not applicable?

https://www.reuters.com/article/us-valero-energy-topper-startup/valero-starting-up-new-crude-topping-unit-at-tx-refinery-idUSKBN0TX2DX20151214

Indeed, this is useful in the valuation process - as a proxy for replacement-cost-new, and using the press release data, you get a figure of $4,722/bbl of throughput.

The hidden information is related to standard vs. modular unit construction - which don't scale exactly relative to one another. A modular unit in the 10,000bbl range is generally about $3,000bbl in raw cost - this bumps around which other factors are included - it is best considered a "floor cost."

It is reasonable to project a range for Nixon against these figures, using a throughput of 15,000bbl, at the low end, Nixon's RCN is about $45M - at the higher end, about $71M.

RCN is used in decision-making for expansion/upgrade vs. a new unit.