Lease Obligations

Office Lease.  We maintain our corporate headquarters in Houston, Texas.  In October 2024, BDSC signed a 24-month extension, the sixth amendment, to its operating lease at 801 Travis Street, Suite 2100, Houston, Texas 77002.  

An Affiliate, LEH, sub-leases a portion of the 801 Travis Street office space through August 2026. BDSC received sub-lease income from LEH totaling $0.02 million for both the three months ended June 30, 2026 and 2025, and $0.03 million for both six months ended June 30, 2026 and 2025. See “Note (3)” to our consolidated financial statements for additional disclosures related to the Affiliate sub-lease.

In January 2026, LEH entered into a new lease agreement for office space at 2301 Commerce Street, Suite 140, Houston Texas. LEH's lease commenced in July 2026. Blue Dolphin intends to sub-lease office space from LEH and change its corporate headquarters from 801 Travis Street to 2301 Commerce Street in connections with the natural termination of its existing operating lease.

Tank Leases

LE leases tanks from Ingleside under the Third Amended and Restated Master Services Agreement. Lease expense associated with the Third Amended and Restated Master Services Agreement totaled $0.3 million for both the three months ended June 30, 2026 and 2025, and $0.6 million for both the six months ended June 30, 2026 and 2025. 

Due to its one-year term, the lease is being treated as short term.  As a result, the lease was not recorded on our balance sheet. See “Note (3)” to our consolidated financial statements for additional disclosures related to the Third Amended and Restated Master Services Agreement. 

Lease expense associated with the Terminal Services Release was $0.1 and none for the three months ended June 30, 2026 and 2025 , and $0.1 million and none for the six months ended June 30, 2026 and 2025. See “Note (3)” to our consolidated financial statements for additional disclosures related to the Terminal Services Release.

The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet:

The following table presents information related to lease costs incurred for operating and finance leases:

The table below presents supplemental cash flow information related to leases as follows:

As of June 30, 2026, maturities of lease liabilities and future minimum annual lease commitments that are non-cancelable for the periods indicated was as follows: