HOUSTON—Jonathan Carroll, CEO and President of Blue Dolphin Energy Co. (OTC:BDCO), recently acquired additional shares of the company's common stock, according to a Form 4 filing with the Securities and Exchange Commission. The transactions, which took place on November 19 and November 21, 2024, involved the purchase of 17,500 shares at prices ranging from $3.23 to $3.50 per share.
These acquisitions amount to a total investment of $58,625. Following these transactions, Carroll directly owns 4,042,279 shares of Blue Dolphin Energy, while also holding an indirect interest in 8,426,456 shares through Lazarus Energy Holdings, LLC.
The transactions highlight Carroll's continued investment in Blue Dolphin Energy, a company engaged in the crude petroleum and natural gas sector.
In other recent news, Blue Dolphin Energy Company has made significant strides in its financial and leadership structure. The crude petroleum and natural gas firm announced the appointment of Bryce D. Klug as the principal financial and accounting officer, Treasurer, and Assistant Secretary. Klug brings extensive experience from the oil and gas sector, and his appointment is part of an operational agreement with Lazarus Energy Holdings, which continues to manage Blue Dolphin's assets and operations.
Additionally, Blue Dolphin's subsidiaries, Lazarus Energy, and Lazarus Refining & Marketing, have secured waivers for all covenant violations related to their loan agreements for fiscal years 2021, 2022, and 2023. These waivers, granted by Veritex (NASDAQ:VBTX) Community Bank and the U.S. Department of Agriculture, waive the subsidiaries from meeting specific financial or operational metrics outlined in their loan agreements.
In other developments, Blue Dolphin has signed a new lease extension for its Houston office. The lease agreement extends the office lease for 24 months, and the rent was reduced to $29.00 per square foot for the first year and will increase back to $30.00 per square foot for the second year. The total rental area has been increased to accommodate growth in personnel.
Lastly, at its Annual Meeting of Stockholders, Blue Dolphin shareholders elected five director nominees and ratified UHY LLP as the company's independent public accounting firm for the fiscal year ending December 31, 2024. These recent developments reflect Blue Dolphin's continued efforts to strengthen its financial and operational structure.
InvestingPro Insights
Jonathan Carroll's recent share purchases come at a time when Blue Dolphin Energy Co. (OTC:BDCO) is facing some financial challenges, according to data from InvestingPro. The company's stock has taken a significant hit, with a 44.79% decline over the past six months. This downturn aligns with the CEO's decision to increase his stake, potentially signaling his confidence in the company's long-term prospects despite current headwinds.
InvestingPro data reveals that BDCO's revenue for the last twelve months as of Q3 2023 stood at $350.75 million, with a concerning revenue growth decline of 12.43% over the same period. The company's profitability metrics show a mixed picture, with a gross profit margin of 4.62% and an operating income margin of 2.47%, indicating slim profit margins in a challenging market environment.
Two relevant InvestingPro Tips for investors to consider are:
1. BDCO operates with a significant debt burden, which could impact its financial flexibility and future growth prospects.
2. The company is quickly burning through cash, a factor that may explain the recent stock price decline and could be a concern for potential investors.
These insights provide context to Carroll's share purchases and highlight the complex financial situation BDCO is navigating. For a more comprehensive analysis, InvestingPro offers 8 additional tips that could further illuminate BDCO's financial health and market position.
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