Niklas Bjorkman wrote: Firstly I agree with your conclusion. NewSQL takes the best of the traditional databases and NoSQL databases to combine the benefits of both worlds. I do not agree that NewSQL vendors focus on giving scale-out features to transactional data. The NewSQL market is focusing on giving true ACID support combined with extreme performance, stepping away from the traditional relational structures in databases. A lot of developers appreciate the ease of accessing data using SQL and I think we will see more and more databases supporting standard SQL.
As you said - NewSQL databases often maintain the...
In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
HOUSTON, Nov. 16, 2012 /PRNewswire/ -- Blue Dolphin Energy Company ("Blue Dolphin") announced condensed consolidated financial results for the three and nine months ended September 30, 2012.
Blue Dolphin's primary asset is a crude oil processing facility located in Nixon, Texas (the "Nixon Facility"), which began operations on a reduced basis in February 2012. The Nixon Facility operated for a total of 90 days for the three months ended September 30, 2012 and for a total of 238 days for the nine months ended September 30, 2012. During the three months ended September 30, 2012, average throughput increased to approximately 10,500 bpd, or 70% of operating capacity, compared to approximately 8,900 bpd, or 59% of operating capacity, during the three months ended June 30, 2012. Management anticipates that throughput levels at the Nixon Facility may approach operating capacity in the first half of 2013. The Nixon Facility had no operations during the three and nine months ended September 30, 2011.
For the three months ended September 30, 2012, Blue Dolphin reported a net loss of $762,761 on total revenue of $104,094,137. For the nine months ended September 30, 2012, Blue Dolphin reported a net loss of $10,130,493 on total revenue of $234,926,203. The net loss for the three months ended September 30, 2012 included:
An impairment and an allowance for doubtful accounts receivable totaling $4,180,159, which related to Blue Dolphin's 7% undivided interest in the North Sumatra Basin – Langsa Field offshore Indonesia (the "Indonesian Interest"); and
an abandonment expense of $539,996 associated with plugging and abandonment costs for High Island A-7. The amount recognized reflects the amount incurred less the amount reserved for the abandonment retirement obligation liability, which was $141,643. We will record additional plugging and abandonment costs as information becomes available to substantiate actual and/or probable costs.
During the three months ended September 30, 2012, Blue Dolphin experienced negative cash flow from operations of $28,017, which was a substantial improvement compared to negative cash flow from operations of $3,017,262 during the three months ended June 30, 2012. The liquidity improvement quarter over quarter was primarily the result of higher product sales margins. Refining margins were relatively stable throughout the current quarter, allowing the Nixon Facility to generate positive operating income each month within the three months ended September 30, 2012 and an EBITDA of $5,064,868 for the three months ended September 30, 2012.
In November 2012, Blue Dolphin Exploration Company ("BDEX"), a wholly owned subsidiary of Blue Dolphin, entered into a Sale and Purchase Agreement (the "SPA") with Blue Sky Langsa Limited ("Blue Sky") whereby Blue Sky agreed to purchase the Indonesian Interest. Based on the SPA, which is effective October 31, 2012, Blue Sky will acquire the Indonesian Interest for: (i) $800,000 if transaction closing occurs in December 2012 or (ii) $1.0 million if transaction closing occurs in February 2013. As a result of the SPA, Blue Dolphin adjusted the value of the Indonesian Interest to $800,000, which resulted in an impairment charge of $3,858,427 for the three months ended September 30, 2012. Blue Dolphin also recorded an allowance for doubtful accounts receivable of $321,732 for the three months ended September 30, 2012. The allowance is associated with non-payment of accounts receivable for crude oil liftings revenue by Blue Sky related to the Indonesian Interest.
Blue Dolphin acquired Lazarus Energy, LLC ("LE") from Lazarus Energy Holdings, LLC in a reverse acquisition effective February 15, 2012. Under reverse acquisition accounting, LE (the legal subsidiary) has been treated as the accounting parent (acquirer) and Blue Dolphin (the legal parent) has been treated as the accounting subsidiary (acquiree). Accordingly, the financial statements subsequent to the date of the transaction are presented as the continuation of LE.
Blue Dolphin Energy Company (OTCQX: BDCO) is engaged in crude oil and condensate processing, as well as the gathering and transportation and the exploration and production of oil and natural gas. For additional company information, visit Blue Dolphin's corporate website at http://www.blue-dolphin-energy.com.
Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to: significant dependent relationship with Genesis and its affiliates; key supplier failure; loss of market share with or by a key customer; failure to comply with forbearance agreements relating to long-term indebtedness under which Blue Dolphin is in default; continued declines in throughput volumes and production rates from Blue Dolphin's U.S. Gulf of Mexico leasehold properties; and the factors set forth under the heading "Risk Factors" in Part I, Item 1A of Blue Dolphin's annual report on Form 10-K for the twelve month period ended December 31, 2011. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
BLUE DOLPHIN ENERGY COMPANY & SUBSIDIARIES
Condensed Consolidated Balance Sheets
September 30, 2012
December 31, 2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 139,273
$ 1,822
Restricted cash
192,813
192,004
Accounts receivable, net
8,054,630
-
Prepaid expenses and other current assets
174,146
58,713
Deposits
1,236,447
473,026
Inventory
4,901,895
4,533,961
Total current assets
14,699,204
5,259,526
Property, plant and equipment, net
44,817,447
32,307,929
Debt issue costs, net
540,784
566,133
Other assets
11,367
10,468
Trade name
303,346
-
Goodwill
1,445,720
-
TOTAL ASSETS
$ 61,817,868
$ 38,144,056
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable
$ 14,161,594
$ 4,841,859
Accounts payable, related party
1,281,936
908,139
Note payable
47,965
46,318
Accrued expenses and other current liabilities
716,123
744,921
Interest payable, current portion
827,777
995,916
Long-term debt, current portion
1,816,903
1,839,501
Total current liabilities
18,852,298
9,376,654
Long-term liabilities:
Asset retirement obligations
896,096
-
Long-term debt, net of current portion
16,552,638
12,455,102
Long-term interest payable, net of current portion
806,356
650,214
Total long-term liabilities
18,255,090
13,105,316
TOTAL LIABILITIES
37,107,388
22,481,970
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock ($0.01 par value, 20,000,000 shares authorized, 10,545,690 and 8,426,456
105,457
84,265
shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively)
Additional paid-in capital
36,459,819
17,302,124
Accumulated deficit
(11,854,796)
(1,724,303)
Total stockholders' equity
24,710,480
15,662,086
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 61,817,868
$ 38,144,056
See accompanying notes to condensed consolidated financial statements in Blue Dolphin's quarterly report on Form 10-Q for the three and nine months ended September 30, 2012.
BLUE DOLPHIN ENERGY COMPANY & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2012
2011
2012
2011
REVENUE FROM OPERATIONS
Refined product sales
$ 103,738,982
$ -
$ 233,926,241
$ -
Pipeline operations
117,712
-
312,098
-
Oil and gas sales
237,443
-
687,864
-
Total revenue from operations
104,094,137
-
234,926,203
-
COST OF OPERATIONS
Cost of refined products sold
96,160,575
-
229,853,030
-
Refinery operating expenses
2,559,456
-
5,862,121
-
Pipeline operating expenses
107,534
-
344,654
-
Lease operating expenses
351,462
-
852,137
-
General and administrative expenses
442,132
213,221
1,702,439
504,161
Depletion, depreciation and amortization
497,382
4,306
1,295,738
12,920
Abandonment expense
539,996
-
539,996
-
Impairment of oil and gas properties
3,858,427
3,858,427
-
Bad debt expense
321,732
321,732
-
Accretion expense
39,276
-
104,736
-
Total cost of operations
104,877,972
217,527
244,735,010
517,081
Loss from operations
(783,835)
(217,527)
(9,808,807)
(517,081)
OTHER INCOME (EXPENSE)
Net tank rental revenue
81,365
87,036
256,684
783,490
Interest and other income
16,439
345
20,354
6,734
Interest expense
(74,227)
(11,622)
(583,077)
(35,994)
Total other income (expense)
23,577
75,759
(306,039)
754,230
Income (loss) before income taxes
(760,258)
(141,768)
(10,114,846)
237,149
Income tax expense
(2,503)
-
(15,647)
-
Net income (loss)
$ (762,761)
$ (141,768)
$ (10,130,493)
$ 237,149
Income (loss) per common share:
Basic
$ (0.07)
$ (0.02)
$ (0.99)
$ 0.03
Diluted
$ (0.07)
$ (0.02)
$ (0.99)
$ 0.03
Weighted average number of common shares outstanding:
Basic
10,545,690
8,426,456
10,191,980
8,426,456
Diluted
10,545,690
8,426,456
10,191,980
8,426,456
See accompanying notes to condensed consolidated financial statements in Blue Dolphin's quarterly report on Form 10-Q for the three and nine months ended September 30, 2012.
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depletion, depreciation and amortization
1,287,173
12,920
Impairment of oil and gas properties
3,858,427
-
Unrealized loss (gain) on derivatives
(21,470)
-
Amortization of debt issue costs
25,349
25,349
Amortization of intangible assets
8,565
-
Accretion expense
104,736
-
Abandonment costs incurred
(141,099)
-
Common stock issued for services
119,000
-
Bad debt expense
321,732
-
Changes in operating assets and liabilities (net of effects of acquisition in 2012)
Restricted cash
(810)
34,067
Accounts receivable
(7,852,717)
(3,740)
Prepaid expenses and other current assets
119,529
(8,804)
Deposits
(763,421)
(68,407)
Inventory
(312,766)
8,366
Accounts payable, accrued expenses and other liabilities
8,057,321
290,245
Accounts payable, related party
2,275,665
125,682
Net cash provided by (used in) operating activities
(3,045,279)
652,827
INVESTING ACTIVITIES
Advance of loan receivable
-
-
Exploration and development costs
-
-
Capital expenditures
(2,568,449)
(1,067,558)
Cash acquired on acquisition
1,674,594
-
Net cash used in investing activities
(893,855)
(1,067,558)
FINANCING ACTIVITIES
Proceeds from issuance of debt
4,788,623
452,308
Payments on long term debt
(713,686)
(31,922)
Proceeds from notes payable
24,548
-
Payments on notes payable
(22,900)
(5,034)
-
-
Net cash provided by financing activities
4,076,585
415,352
Net increase (decrease) in cash and cash equivalents
137,451
621
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
1,822
733
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ 139,273
$ 1,354
Supplemental Information:
Non-cash investing and financing activities:
Financing of insurance premiums
$ 82,560
$ -
Related party payable converted to equity
$ 993,732
$ -
Issuance of stock for acquisition of Blue Dolphin at fair value, inclusive
of cash acquired of $1,674,594
$ 18,046,154
$ -
Accrued services payable converted to common stock
$ 20,000
$ -
See accompanying notes to condensed consolidated financial statements in Blue Dolphin's quarterly report on Form 10-Q for the three and nine months ended September 30, 2012.
Management uses earnings before interest expense, income taxes and depreciation ("EBITDA"), a non-GAAP financial measure, to assess the operating results and effectiveness of Blue Dolphin's business segments, which consist of its consolidated businesses and investments. Management believes EBITDA is useful to Blue Dolphin's investors because it allows them to evaluate Blue Dolphin's operating performance using the same performance measure analyzed internally by management. EBITDA is adjusted for: (i) items that do not impact Blue Dolphin's income or loss from continuing operations, such as the impact of accounting changes, (ii) income taxes and (iii) interest expense (or income). Management excludes interest expense (or income) and other expenses or income not pertaining to the operations of Blue Dolphin's segments from this measure so that investors may evaluate Blue Dolphin's current operating results without regard to Blue Dolphin's financing methods or capital structure. Management understands that EBITDA may not be comparable to measurements used by other companies. Additionally, EBITDA should be considered in conjunction with net income (loss) and other performance measures such as operating cash flows.
Blue Dolphin is engaged in three lines of business: (i) ownership of crude oil and condensate processing assets, (ii) pipeline transportation services to producers/shippers and (iii) oil and gas exploration and production. Blue Dolphin's primary operating asset is the Nixon Facility. Blue Dolphin also operates oil and natural gas pipelines in the Gulf of Mexico region and holds oil and natural gas leasehold interests in the U.S. Gulf of Mexico and Indonesia; however, these operations are considered non-core to Blue Dolphin's business.
Following is a reconciliation of EBITDA (by business segment) for the three months ended September 30, 2012, and at September 30, 2012.
Three Months Ended September 30, 2012
Segment
Crude Oil
Oil and Gas
and Condensate
Pipeline
Exploration &
Corporate &
Processing
Transportation
Production
Other(1)
Total
Revenues
$ 103,738,982
$ 117,712
$ 237,443
$ -
$ 104,094,137
Operation cost(2)
98,755,479
211,114
5,253,900
160,097
104,380,590
Other non-interest income
81,365
-
-
-
81,365
EBITDA
$ 5,064,868
$ (93,402)
$ (5,016,457)
$ (160,097)
$ (205,088)
Depletion, depreciation and amortization
(497,382)
Other income (expense), net
(57,788)
Loss before income taxes
$ (760,258)
Capital expenditures
$ 494,312
$ -
$ -
$ -
$ 494,312
Identifiable assets(3)
$ 48,645,278
$ 11,350,264
$ 812,229
$ 1,010,097
$ 61,817,868
(1)
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
(2)
General and administrative costs are allocated based on revenue. In addition, the effect of the economic hedges on refined products, executed by Genesis Energy, LLC ("Genesis"), is included within operation cost of Blue Dolphin's Crude Oil and Condensate Processing group. Cost of refined products sold includes a realized loss of $325,654 and an unrealized gain of $148,453 for the three months ended September 30, 2012.
(3)
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
Following is a reconciliation of EBITDA (by business segment) for the three months ended September 30, 2011, and at September 30, 2011:
Three Months Ended September 30, 2011
Segment
Crude Oil
Oil and Gas
and Condensate
Pipeline
Exploration &
Corporate &
Processing
Transportation
Production
Other(1)
Total
Revenues
$ -
$ -
$ -
$ -
$ -
Operation cost(2)
213,221
-
-
-
213,221
Other non-interest income
87,036
-
-
-
87,036
EBITDA
$ (126,185)
$ -
$ -
$ -
$ (126,185)
Depletion, depreciation and amortization
(4,306)
Other income (expense), net
(11,277)
Loss before income taxes
$ (141,768)
Capital expenditures
$ 561,888
$ -
$ -
$ -
$ 561,888
Identifiable assets(3)
$ 30,837,718
$ -
$ -
$ -
$ 30,837,718
(1)
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
(2)
General and administrative costs are allocated based on revenue.
(3)
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
Following is a reconciliation of EBITDA (by business segment) for the nine months ended September 30, 2012, and at September 30, 2012:
Nine Months Ended September 30, 2012
Segment
Crude Oil
Oil and Gas
and Condensate
Pipeline
Exploration &
Corporate &
Processing
Transportation
Production
Other(1)
Total
Revenues
$ 233,926,241
$ 312,098
$ 687,864
$ -
$ 234,926,203
Operation cost(2)
235,987,724
648,334
6,146,698
656,516
243,439,272
Other non-interest income
256,684
-
-
-
256,684
EBITDA
$ (1,804,799)
$ (336,236)
$ (5,458,834)
$ (656,516)
$ (8,256,385)
Depletion, depreciation and amortization
(1,295,738)
Other income (expense), net
(562,723)
Loss before income taxes
$ (10,114,846)
Capital expenditures
$ 2,568,449
$ -
$ -
$ -
$ 2,568,449
Identifiable assets(3)
$ 48,645,278
$ 11,350,264
$ 812,229
$ 1,010,097
$ 61,817,868
(1)
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
(2)
General and administrative costs are allocated based on revenue. In addition, the effect of the economic hedges on refined products, executed by Genesis, is included within operation cost of Blue Dolphin's Crude Oil and Condensate Processing group. Cost of refined products sold includes a realized loss of $327,256 and an unrealized gain of $21,470 for the nine months ended September 30, 2012.
(3)
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
Following is a reconciliation of EBITDA (by business segment) for the nine months ended September 30, 2011, and at September 30, 2011:
Nine Months Ended September 30, 2011
Segment
Crude Oil
Oil and Gas
and Condensate
Pipeline
Exploration &
Corporate &
Processing
Transportation
Production
Other(1)
Total
Revenues
$ -
$ -
$ -
$ -
$ -
Operation cost(2)
504,161
-
-
-
504,161
Other non-interest income
783,490
-
-
-
783,490
EBITDA
$ 279,329
$ -
$ -
$ -
$ 279,329
Depletion, depreciation and amortization
(12,920)
Other income (expense), net
(29,260)
Income before income taxes
$ 237,149
Capital expenditures
$ 1,067,558
$ -
$ -
$ -
$ 1,067,558
Identifiable assets(3)
$ 30,837,718
$ -
$ -
$ -
$ 30,837,718
(1)
Includes unallocated general and administrative costs associated with corporate maintenance costs (such as director fees and legal expenses).
(2)
General and administrative costs are allocated based on revenue.
(3)
Identifiable assets contain related legal obligations of each segment including cash, accounts receivable and payable and recorded net assets.
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