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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (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 $- $- UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) March 31, December 31, 2007 2006 ASSETS 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 LIABILITIES AND EQUITY 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.