Adams Resources Announces First Quarter Earnings

HOUSTON, May 15 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc. (AMEX:AE) announced first quarter 2007 unaudited net earnings of $912,000 or $.22 per common share on revenues of $486,366,000. This compares to unaudited first quarter 2006 net earnings of $3,644,000 or $.86 per common share.

Chairman and Chief Executive Officer, K.S. "Bud" Adams, Jr., attributed the earnings decline to reduced volumes and prices within the Company's oil and gas exploration and production operation. In addition, exploration expenses were increased by approximately $1.4 million in 2007 as the Company incurred additional dry hole costs and seismic expense.

    A summary of operating results is as follows:

                                                        First Quarter
                                                     2007           2006
    Operating Earnings (Loss)
      Marketing                                   $3,223,000     $3,637,000
      Transportation                                 726,000      1,171,000
      Oil and gas                                   (520,000)     2,805,000
    General & administrative expenses             (2,602,000)    (2,116,000)
    Interest, net                                    336,000         57,000
    Income tax provision                            (251,000)    (1,910,000)

    Net earnings                                    $912,000     $3,644,000

The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. A number of factors could cause actual results or events to differ materially from those anticipated. Such factors include, among others, (a) general economic conditions, (b) fluctuations in hydrocarbon prices and margins, (c) variations between crude oil and natural gas contract volumes and actual delivery volumes, (d) unanticipated environmental liabilities or regulatory changes, (e) counterparty credit default, (f) inability to obtain bank and/or trade credit support, (g) availability and cost of insurance, (h) changes in tax laws, (i) the availability of capital (j) changes in regulations, (k) results of current items of litigation, (l) uninsured items of litigation or losses, (m) uncertainty in reserve estimates and cash flows, (n) ability to replace oil and gas reserves, (o) security issues related to drivers and terminal facilities, (p) commodity price volatility and (q) successful completion of drilling activity. These and other risks are described in the Company's reports that are on file with the Securities and Exchange Commission.

                                (In thousands)

                                                    March 31,      March 31,
                                                      2007           2006

    Revenues                                        $486,366       $488,028

    Costs, expenses and other                       (485,203)      (482,474)
    Income tax provision                                (251)        (1,910)

    Net earnings                                        $912         $3,644

    Basic and diluted net earnings
      per common share                                  $.22           $.86

    Dividends per common share                            $-             $-

                                (In thousands)
                                                    March 31,     December 31,
                                                      2007           2006

      Cash                                           $21,307        $20,668
      Other current assets                           217,860        221,122
        Total current assets                         239,167        241,790

    Net property & equipment                          44,398         43,316
    Other assets                                       6,782          4,181
                                                    $290,347       $289,287

      Total current liabilities                     $204,508       $206,582
      Long-term debt                                   3,000          3,000
      Deferred taxes and other                         7,559          5,337
      Shareholders' equity                            75,280         74,368
                                                    $290,347       $289,287

    Rick Abshire (713) 881-3609

Source: Adams Resources & Energy, Inc.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here