Blue Dolphin Energy Company (BDCO, Financial) filed Quarterly Report for the period ended 2009-09-30.
Blue Dolphin Energy Company is engaged in the exploration acquisition development and operation of oil and gas properties oil and gas transportation processing and marketing and the terminaling and storage of crude oil and refined products. The Company is a holding company that conducts substantially all of its operations through its subsidiaries. It's primary business activities are located offshore in the Gulf of Mexico and along the Texas Gulf Coast. Blue Dolphin Energy Company has a market cap of $4.6 million; its shares were traded at around $0.39 with and P/S ratio of 1.5.
Revenue from Pipeline Operations. Revenues from pipeline operations decreased by $118,922, or 21%, in the current quarter to $442,249 primarily as a result of decreases in gas volumes transported due to natural production declines. Revenues from the Blue Dolphin Pipeline System decreased to approximately $331,000 in the current quarter compared to approximately $468,000 in the previous quarter. Daily gas volumes transported on the Blue Dolphin Pipeline System averaged 13 MMcf of gas per day in the current quarter, down from 23 MMcf of gas per day in the previous quarter. Revenues on the GA 350 Pipeline increased to approximately $111,000 compared to approximately $93,000 in the previous quarter despite a decrease in average daily gas volumes transported of 18 MMcf of gas per day in the current quarter from 22 MMcf of gas per day in the previous quarter.
Revenue from Oil and Gas Sales. Revenues from oil and gas sales decreased by $77,839, or 65%, in the current quarter to $42,269 due to lower commodity prices and production from High Island Block 115 being shut-in. The sales mix by product was 66% gas and 34% condensate. Our average realized gas price per Mcf in the current quarter was $3.32 compared to $9.97 in the previous quarter. Our average realized condensate price per barrel was $86.75 in the current quarter compared to $140.34 in the previous quarter.
Revenue from Pipeline Operations. Revenues from pipeline operations decreased by $298,746, or 17%, in the current period to $1,505,644 primarily as a result of decreases in gas volumes transported due to natural production declines. Revenues from the Blue Dolphin Pipeline System decreased to approximately $1,219,000 in the current period compared to approximately $1,494,000 in the previous period. Daily gas volumes transported on the Blue Dolphin Pipeline System averaged 17 MMcf of gas per day in the current period, down from 23 MMcf of gas per day in the previous period. Revenues on the GA 350 Pipeline decreased to approximately $287,000 compared to approximately $310,000 in the previous period due to a decrease in average daily gas volumes transported of 20 MMcf of gas per day in the current period from 24 MMcf of gas per day in the previous period.
Revenue from Oil and Gas Sales. Revenues from oil and gas sales decreased by $436,901, or 80%, in the current period to $108,290 due to lower commodity prices and High Island Block 115 being shut-in as a result of changes in the production handling agreement. The sales mix by product was 84% gas and 16% condensate. Our average realized gas price per Mcf in the current period was $3.11 compared to $11.83 in the previous period. Our average realized condensate price per barrel was $72.81 in the current period compared to $118.40 in the previous period.
Impairment of Oil and Gas Properties. We recorded a full cost ceiling impairment of $203,110 for the current period. Under the full cost method of accounting, we are required on a quarterly basis to determine whether the book value of our oil and natural gas properties (excluding unevaluated properties) is less than or equal to the ceiling, based upon the expected after tax present value (discounted at 10%) of the future net cash flows from our proved reserves, calculated using prevailing oil and natural gas prices on the last day of the period, or a subsequent higher price under certain circumstances. Any excess of the net book value of our oil and natural gas properties over the ceiling must be recognized as a non-cash impairment expense. Our ceiling was calculated using prices of $47.19 per barrel of oil and $3.65 per MMbtu. Accordingly, at March 31, 2009, our costs exceeded our ceiling limitation, resulting in a write-down of our oil and natural gas properties.
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Blue Dolphin Energy Company is engaged in the exploration acquisition development and operation of oil and gas properties oil and gas transportation processing and marketing and the terminaling and storage of crude oil and refined products. The Company is a holding company that conducts substantially all of its operations through its subsidiaries. It's primary business activities are located offshore in the Gulf of Mexico and along the Texas Gulf Coast. Blue Dolphin Energy Company has a market cap of $4.6 million; its shares were traded at around $0.39 with and P/S ratio of 1.5.
Highlight of Business Operations:
For the three months ended September 30, 2009 (the current quarter), we reported a net loss of $321,386 compared to a net loss of $442,737 for the three months ended September 30, 2008 (the previous quarter). For the nine months ended September 30, 2009 (the current period), we reported a net loss of $2,071,644 compared to a net loss of $1,143,590 for the nine months ended September 30, 2008 (the previous period).Revenue from Pipeline Operations. Revenues from pipeline operations decreased by $118,922, or 21%, in the current quarter to $442,249 primarily as a result of decreases in gas volumes transported due to natural production declines. Revenues from the Blue Dolphin Pipeline System decreased to approximately $331,000 in the current quarter compared to approximately $468,000 in the previous quarter. Daily gas volumes transported on the Blue Dolphin Pipeline System averaged 13 MMcf of gas per day in the current quarter, down from 23 MMcf of gas per day in the previous quarter. Revenues on the GA 350 Pipeline increased to approximately $111,000 compared to approximately $93,000 in the previous quarter despite a decrease in average daily gas volumes transported of 18 MMcf of gas per day in the current quarter from 22 MMcf of gas per day in the previous quarter.
Revenue from Oil and Gas Sales. Revenues from oil and gas sales decreased by $77,839, or 65%, in the current quarter to $42,269 due to lower commodity prices and production from High Island Block 115 being shut-in. The sales mix by product was 66% gas and 34% condensate. Our average realized gas price per Mcf in the current quarter was $3.32 compared to $9.97 in the previous quarter. Our average realized condensate price per barrel was $86.75 in the current quarter compared to $140.34 in the previous quarter.
Revenue from Pipeline Operations. Revenues from pipeline operations decreased by $298,746, or 17%, in the current period to $1,505,644 primarily as a result of decreases in gas volumes transported due to natural production declines. Revenues from the Blue Dolphin Pipeline System decreased to approximately $1,219,000 in the current period compared to approximately $1,494,000 in the previous period. Daily gas volumes transported on the Blue Dolphin Pipeline System averaged 17 MMcf of gas per day in the current period, down from 23 MMcf of gas per day in the previous period. Revenues on the GA 350 Pipeline decreased to approximately $287,000 compared to approximately $310,000 in the previous period due to a decrease in average daily gas volumes transported of 20 MMcf of gas per day in the current period from 24 MMcf of gas per day in the previous period.
Revenue from Oil and Gas Sales. Revenues from oil and gas sales decreased by $436,901, or 80%, in the current period to $108,290 due to lower commodity prices and High Island Block 115 being shut-in as a result of changes in the production handling agreement. The sales mix by product was 84% gas and 16% condensate. Our average realized gas price per Mcf in the current period was $3.11 compared to $11.83 in the previous period. Our average realized condensate price per barrel was $72.81 in the current period compared to $118.40 in the previous period.
Impairment of Oil and Gas Properties. We recorded a full cost ceiling impairment of $203,110 for the current period. Under the full cost method of accounting, we are required on a quarterly basis to determine whether the book value of our oil and natural gas properties (excluding unevaluated properties) is less than or equal to the ceiling, based upon the expected after tax present value (discounted at 10%) of the future net cash flows from our proved reserves, calculated using prevailing oil and natural gas prices on the last day of the period, or a subsequent higher price under certain circumstances. Any excess of the net book value of our oil and natural gas properties over the ceiling must be recognized as a non-cash impairment expense. Our ceiling was calculated using prices of $47.19 per barrel of oil and $3.65 per MMbtu. Accordingly, at March 31, 2009, our costs exceeded our ceiling limitation, resulting in a write-down of our oil and natural gas properties.
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