Blue Dolphin Energy Company (BDCO)

[56Chevy]

The Blue Dolphin refinery in Nixon, TX is what is known in the industry as a "teapot" refinery. In the world of refineries its a baby. Its very small (15,000 bbls @ day capacity) and is only technically capable of refining the most basic products such jet fuel and naptha.

Refineries operate on thin margins but for teapot refineries who are incapable of producing the more sophisticated high demand and profitable products the margins are ultra-thin.

BDCO's contract with GEL (previous exclusive crude supplier) was a disaster.

As I said they now have a contract with a new supplier and from all indications it's working well for both parties.

Regardless of this bull market the old contract had a chokehold on BDCOs' bottom line.

This refinery is in Valero’s backyard. They have acquired a lot of refineries, but not this one.

No way of knowng if an offer was made or if the Blue Dolphin refinery was even up for sale. ??