Blue Dolphin Energy Company (BDCO)

[RealDutch]

Let me just say a couple of things about VTNR.

There is some talk that perhaps they overhedged and this resulted in a big loss for Q2. I don't think that's the case as they hedged (only) 50% of production. They just got the timing wrong in Q2/April.

Two, they decided to give guidance now "in line with industry standards" which excludes earnings and revenues due to volatile pricing.
BS. That is what I said after they gave guidance in Q1. They should have seen this coming earlier but they decided to pump the pps anyway back then.

These are 2 serious management issues we are dealing with.

Also, they decided not to hedge for Q4 / going forward. So they clearly have a wobbly strategy on this.

On the bright side, due to prices coming down in Q3 so far, as things are now, they will book a gain of $23M gain from hedging. So Q3 could be a surprise to the upside. The market doesn't like surprises though!

All of this combined (especially with the poor management decisions) makes it really hard to say how much value there is (remaining) in this stock. They are newbies in the refining space, I guess. And they clearly made some serious mistakes.