Blue Dolphin Energy (BDCO) 8-K Blue Dolphin Reports Improved Third Quarter 2015 Results

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

November 23, 2015

BLUE DOLPHIN REPORTS IMPROVED THIRD QUARTER 2015 RESULTS

Houston, November 23, 2015 / MarketWired / -- Blue Dolphin Energy Company (“Blue Dolphin”)(OTCQX:BDCO), an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale, reported net income for the third quarter of 2015 of $1.3 million, or income of $0.12 per share, compared to $0.8 million, or income of $0.08 per share, for the same quarter in 2014.  Refinery operations adjusted earnings before interest, income taxes and depreciation (“EBITDA”), a non-GAAP financial measure, totaled $3.8 million for the third quarter of 2015 compared to $2.9 million for the third quarter of 2014.  Total adjusted EBITDA totaled $4.2 million compared to $2.5 million for same comparative periods.  Refinery operating income for the third quarter of 2015 totaled $2.1 million compared to $1.5 million for the third quarter of 2014.

Net income for the first nine months of 2015 was $5.1 million, or income of $0.49 per share, compared to net income of $8.4 million, or income of $0.81 per share, for the first nine months in 2014. Refinery operations adjusted EBITDA totaled $15.5 million for the first nine months of 2015 compared to $13.8 million for the first nine months of 2014.  Total adjusted EBITDA totaled $15.2 million compared to $12.9 million for the same comparative periods.  Refinery operating income for the first nine months of 2015 totaled $10.0 million compared to $10.7 million for the first nine months of 2014.

Refinery Operations

For the third quarter of 2015, the Nixon Facility processed 1,109,411 barrels (“bbls”), or 12,752 barrels per day (“bpd”), of crude oil and condensate compared to 849,402 bbls, or 10,890 bpd, of crude oil and condensate for the third quarter of 2014.  For the same comparative periods, the Nixon Facility produced 1,084,246 bbls, or 12,463 bpd, of refined petroleum products compared to 831,771 bbls, or 10,664 bpd.  The capacity utilization rate for refinery throughput for the third quarter of 2015 was 85.0% compared to 72.6% for the third quarter of 2014.  The capacity utilization rate for refinery production for the third quarter of 2015 was 83.1% compared to 71.1% for the third quarter of 2014.  Total refinery throughput, total refinery production, and capacity utilization rates increased as a result of: (i) less downtime in the third quarter of 2015 compared to the third quarter of 2014, (ii) debottlenecking efforts in the third quarter of 2015, and (iii) completion of refurbishment of key components of the naphtha stabilizer and depropanizer units late in the third quarter of 2015, all of which contributed to an increase in average refinery throughput for the Current Quarter.

Use of Non-GAAP Financial Measures

To supplement our actual results in accordance with generally accepted accounting principles (“GAAP”) for the applicable periods, Blue Dolphin also uses the non-GAAP financial measures noted above.  These non-GAAP financial measures are reconciled to GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of Blue Dolphin’s financial performance for the applicable periods and are indicators management believes are relevant and useful. These performance measures may differ from similar calculations used by other companies within the petroleum industry, thereby limiting their usefulness as a comparative measure.

Below are the definitions of non-GAAP performance measures used by management within this press release:

- EBITDA reflects earnings before: (i) interest income (expense), (ii) income taxes, and (iii) depreciation and amortization. Refinery operations EBITDA reflects EBITDA for our refinery operations business segment.  Total EBITDA reflects EBITDA for our refinery operations and pipeline transportation business segments, as well as corporate and other;

- Adjusted EBITDA reflects EBITDA plus the Joint Marketing Agreement Profit Share (the “JMA Profit Share”).  The JMA Profit Share represents the GEL TEX Marketing, LLC (“GEL”) Profit Share plus the GEL Performance Fee for the period pursuant to the Joint Marketing Agreement.  Refinery operations adjusted EBITDA reflects adjusted EBITDA for our refinery operations business segment.  Total adjusted EBITDA reflects adjusted EBITDA for our refinery operations and pipeline transportation business segments, as well as corporate and other; and

- Refinery operating incomereflects refined petroleum product sales less direct operating costs (including cost of refined products sold and refinery operating expenses) and the JMA Profit Share, which is an indirect operating expense.

Forward-Looking Statements

This press release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. For a discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q, and our other Securities and Exchange Commission (“SEC”) filings. These risks may cause our actual results, performance, or achievements to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof.  Blue Dolphin disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

About Blue Dolphin

Blue Dolphin Energy Company (OTCQX: BDCO) is an independent refiner and marketer of refined petroleum products in the Eagle Ford Shale.  Blue Dolphin’s primary business is refinery operations at the 15,000 bpd Nixon Facility, which includes the refining of crude oil and condensate into marketable finished and intermediate products, as well as petroleum storage and terminaling. Blue Dolphin also owns and operates pipeline assets and has leasehold interests in oil and gas properties. For additional information, visit Blue Dolphin's corporate website at http://www.blue-dolphin-energy.com.

Contact

Jonathan P. Carroll

Chief Executive Officer and President

713-568-4725

Blue Dolphin Energy Company & Subsidiaries

Financial and operational data presented in this press release is unaudited except as otherwise noted.  The consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows should be read in conjunction with Blue Dolphin's quarterly report on Form 10-Q for the quarterly period ended September 30, 2015.

Consolidated Balance Sheets

	September 30,			December 31,
	2015			2014
CURRENT ASSETS
Cash and cash equivalents	$	1,518,359		$	1,293,233
Restricted cash		5,834,197			1,008,514
Accounts receivable		7,833,519			8,340,303
Prepaid expenses and other current assets		1,045,893			771,458
Deposits		420,176			68,498
Inventory		5,620,827			3,200,651
Deferred tax assets, current portion, net		2,892,459			-
Total current assets		25,165,430			14,682,657
Total property and equipment, net		46,054,365			37,371,075
Restricted cash, noncurrent		11,277,441			-
Surety bonds		1,667,000			1,642,000
Debt issue costs, net		1,296,480			479,737
Trade name		303,346			303,346
Deferred tax assets, net		387,824			5,928,342
Total long-term assets		60,986,456			45,724,500
TOTAL ASSETS	$	86,151,886		$	60,407,157
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	16,459,787		$	12,370,179
Accounts payable, related party		-			1,174,168
Asset retirement obligations, current portion		38,644			85,846
Accrued expenses and other current liabilities		2,005,206			2,783,704
Interest payable, current portion		57,140			56,039
Long-term debt, current portion		1,631,539			1,245,476
Deferred tax liabilities, net		-			168,236
Total current liabilities		20,192,316			17,883,648
Long-term liabilities:
Asset retirement obligations, net of current portion		1,928,371			1,780,924
Deferred revenues and expenses		561,864			691,525
Long-term debt, net of current portion		28,948,021			10,808,803
Long-term interest payable, net of current portion		1,430,371			1,274,789
Total long-term liabilities		32,868,627			14,556,041
TOTAL LIABILITIES		53,060,943			32,439,689
Commitments and contingencies (Note 21)
STOCKHOLDERS' EQUITY
Common stock ($0.01 par value, 20,000,000 shares authorized;10,603,802 and
10,599,444 shares issued at September 30, 2015 and December 31, 2014, respectively)		106,038			105,995
Additional paid-in capital		36,738,737			36,718,781
Accumulated deficit		(2,953,832	)		(8,057,308	)
Treasury stock, 150,000 shares at cost		(800,000	)		(800,000	)
Total stockholders' equity		33,090,943			27,967,468
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	86,151,886		$	60,407,157

Consolidated Statements of Income

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
REVENUE FROM OPERATIONS
Refined petroleum product sales	$	54,924,070		$	87,846,757		$	174,830,292		$	310,938,981
Tank rental revenue		286,892			282,516			860,676			847,548
Pipeline operations		45,925			56,900			119,882			178,793
Total revenue from operations		55,256,887			88,186,173			175,810,850			311,965,322
COST OF OPERATIONS
Cost of refined products sold		48,415,627			82,781,856			151,604,774			289,819,720
Refinery operating expenses		2,953,528			2,496,514			8,420,650			8,092,738
Joint Marketing Agreement profit share		1,435,376			1,094,383			4,812,674			2,334,487
Pipeline operating expenses		63,099			50,100			170,582			139,542
Lease operating expenses		(1,143	)		7,041			20,271			21,037
General and administrative expenses		312,365			253,437			1,058,267			1,049,981
Depletion, depreciation and amortization		414,837			393,871			1,217,005			1,175,643
Accretion expense		52,720			53,731			158,655			158,264
Total cost of operations		53,646,409			87,130,933			167,462,878			302,791,412
Income from operations		1,610,478			1,055,240			8,347,972			9,173,910
OTHER INCOME (EXPENSE)
Easement, interest and other income		724,349			1,813			856,816			253,745
Interest expense		(382,191	)		(214,407	)		(1,322,562	)		(675,586	)
Loss on disposal of property and equipment		-			(4,400	)		-			(4,400	)
Total other income (expense)		342,158			(216,994	)		(465,746	)		(426,241	)
Income before income taxes		1,952,636			838,246			7,882,226			8,747,669
Income tax expense		(688,403	)		(22,199	)		(2,778,750	)		(298,792	)
Net income	$	1,264,233		$	816,047		$	5,103,476		$	8,448,877
Income per common share
Basic	$	0.12		$	0.08		$	0.49		$	0.81
Diluted	$	0.12		$	0.08		$	0.49		$	0.81
Weighted average number of common shares outstanding:
Basic		10,453,802			10,446,218			10,451,168			10,439,684
Diluted		10,453,802			10,446,218			10,451,168			10,439,684

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
	2015			2014
OPERATING ACTIVITIES
Net income	$	5,103,476		$	8,448,877
Adjustments to reconcile net income to net cash
provided by operating activities:
Depletion, depreciation and amortization		1,217,005			1,175,643
Unrealized loss on derivatives		362,750			26,150
Deferred taxes		2,479,823			-
Amortization of debt issue costs		517,652			25,350
Accretion expense		158,655			158,264
Common stock issued for services		19,999			75,001
Loss on disposal of assets		-			4,400
Changes in operating assets and liabilities
Accounts receivable		506,784			2,058,624
Prepaid expenses and other current assets		(274,435	)		152,655
Deposits and other assets		(1,711,073	)		(490,838	)
Inventory		(2,420,176	)		(2,879,729	)
Accounts payable, accrued expenses and other liabilities		2,916,973			(5,144	)
Accounts payable, related party		(1,174,168	)		(1,857,964	)
Net cash provided by operating activities		7,703,265			6,891,289
INVESTING ACTIVITIES
Capital expenditures		(9,900,295	)		(1,145,720	)
Change in restricted cash for investing activities		(13,021,438	)		-
Net cash used in investing activities		(22,921,733	)		(1,145,720	)
FINANCING ACTIVITIES
Proceeds from issuance of debt		25,000,000			-
Payments on long-term debt		(9,474,720	)		(6,103,131	)
Proceeds from notes payable		3,000,000			2,000,000
Payments on notes payable		-			(216,182	)
Change in restricted cash for financing activities		(3,081,686	)		(678,498	)
Net cash provided by (used in) financing activities		15,443,594			(4,997,811	)
Net increase in cash and cash equivalents		225,126			747,758
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		1,293,233			434,717
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,518,359		$	1,182,475
Supplemental Information:
Non-cash operating activities
Surety bond funded by seller of pipeline interest	$	-		$	850,000
Non-cash investing and financing activities:
New asset retirement obligations	$	-		$	300,980
Financing of capital expenditures via capital lease	$	-		$	536,635
Interest paid	$	959,665		$	1,211,773
Income taxes paid	$	139,500		$	231,552

Reconciliation of Adjusted EBITDA and EBITDA to Net Income

	Three Months Ended September 30, 2015												Three Months Ended September 30, 2014
	Segment												Segment
	Refinery			Pipeline			Corporate &						Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total			Operations			Transportation			Other			Total
Revenue from operations	$	55,210,962		$	45,925		$	-		$	55,256,887		$	88,129,273		$	56,900		$	-		$	88,186,173
Less: cost of operations(1)		(51,444,705	)		(114,675	)		(236,816	)		(51,796,196	)		(85,261,533	)		(110,872	)		(274,674	)		(85,647,079	)
Other non-interest income(2)		-			62,500			660,000			722,500			-			-			-			-
Adjusted EBITDA		3,766,257			(6,250	)		423,184			4,183,191			2,867,740			(53,972	)		(274,674	)		2,539,094
Less:  JMA Profit Share(3)		(1,435,376	)		-			-			(1,435,376	)		(1,094,383	)		-			-			(1,094,383	)
EBITDA	$	2,330,881		$	(6,250	)	$	423,184		$	2,747,815		$	1,773,357		$	(53,972	)	$	(274,674	)	$	1,444,711
Depletion, depreciation and amortization											(414,837	)											(393,871	)
Interest expense, net											(380,342	)											(212,594	)
Income before income taxes											1,952,636												838,246
Income tax expense											(688,403	)											(22,199	)
Net income										$	1,264,233											$	816,047

	Nine Months Ended September 30, 2015												Nine Months Ended September 30, 2014
	Segment												Segment
	Refinery			Pipeline			Corporate &						Refinery			Pipeline			Corporate &
	Operations			Transportation			Other			Total			Operations			Transportation			Other			Total
Revenue from operations	$	175,690,968		$	119,882		$	-		$	175,810,850		$	311,786,529		$	178,793		$	-		$	311,965,322
Less: cost of operations(1)		(160,208,576	)		(296,291	)		(928,331	)		(161,433,198	)		(297,956,882	)		(355,645	)		(973,154	)		(299,285,681	)
Other non-interest income(2)		-			187,500			660,000			847,500			-			208,333			-			208,333
Adjusted EBITDA		15,482,392			11,091			(268,331	)		15,225,152			13,829,647			31,481			(973,154	)		12,887,974
Less:  JMA Profit Share(3)		(4,812,674	)		-			-			(4,812,674	)		(2,334,487	)		-			-			(2,334,487	)
EBITDA	$	10,669,718		$	11,091		$	(268,331	)	$	10,412,478		$	11,495,160		$	31,481		$	(973,154	)	$	10,553,487
Depletion, depreciation and amortization											(1,217,005	)											(1,175,643	)
Interest expense, net											(1,313,247	)											(630,175	)
Income before income taxes											7,882,226												8,747,669
Income tax expense											(2,778,750	)											(298,792	)
Net income										$	5,103,476											$	8,448,877

(1)	Operation cost within the Refinery Operations and Pipeline Transportation segments includes related general, administrative, and accretion expenses.  Operation cost within Corporate and Other includes general and administrative expenses associated with corporate maintenance costs, such as accounting fees, director fees, and legal expense.
(2)	Other non-interest income reflects FLNG Land II, Inc., a Delaware corporation (“FLNG”), easement revenue and recognition of a one-time gain of $660,000 related to settlement proceeds from a nearly two decades-old case involving Jack J. Grynberg and several defendants in the oil and gas industry, including Blue Dolphin Pipe Line Company (the “Grynberg Matter”).  See “Part 1, Item 1. Financial Statements - Note (21) Commitments and Contingencies – FLNG Master Easement Agreement and Grynberg Settlement Agreement” of Blue Dolphin’s Form 10-Q for the quarterly period ended September 30, 2015 as filed with the SEC for further discussion related to FLNG and the Grynberg Matter.
(3)	The JMA Profit Share represents the GEL Profit Share plus the GEL Performance Fee for the period pursuant to the Joint Marketing Agreement.  See “Part 1, Item 1. Financial Statements - Note (21) Commitments and Contingencies” and “Part 1, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Relationship with Genesis” of Blue Dolphin’s Form 10-Q for the quarterly period ended September 30, 2015 as filed with the SEC for further discussion related to the Joint Marketing Agreement.

Reconciliation of Refinery Operating Income to Refined Petroleum Product Sales,

Cost of Refined Petroleum Products Sold, Refinery Operating Expenses and JMA Profit Share

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Total refined petroleum product sales	$	54,924,070		$	87,846,757		$	174,830,292		$	310,938,981
Less:  Cost of refined petroleum products sold		(48,415,627	)		(82,781,856	)		(151,604,774	)		(289,819,720	)
Less:  Refinery operating expenses		(2,953,528	)		(2,496,514	)		(8,420,650	)		(8,092,738	)
Refinery operating income before JMA Profit Share		3,554,915			2,568,387			14,804,868			13,026,523
Less:  JMA Profit Share		(1,435,376	)		(1,094,383	)		(4,812,674	)		(2,334,487	)
Refinery operating income	$	2,119,539		$	1,474,004		$	9,992,194		$	10,692,036
Total refined petroleum product sales (bbls)		1,035,275			823,399			2,958,865			2,818,270

For a reconciliation of refined petroleum product sales to total revenue from operations for our consolidated operations, refer to the consolidated statements of income contained within this press release.

Refinery Throughput and Production Data

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Operating Days		87			78			257			252
Downtime		5			14			16			21
Total refinery throughput
bbls		1,109,411			849,402			3,086,749			2,909,669
bpd		12,752			10,890			12,011			11,546
Total refinery production
bbls		1,084,246			831,771			3,024,579			2,855,054
bpd		12,463			10,664			11,769			11,330
Capacity utilization rate
refinery throughput		85.0	%		72.6	%		80.1	%		77.0	%
refinery production		83.1	%		71.1	%		78.5	%		75.5	%

Note: The difference between total refinery throughput (volume processed as input) and total refinery production (volume processed as output) represents refinery fuel and energy use.