Adams Resources Announces Fourth Quarter 2007 Earnings

HOUSTON, March 28 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc., (AMEX:AE), announced unaudited fourth quarter 2007 net earnings of $2,003,000 or $.47 per common share on revenues totaling $879,813,000. This compares to unaudited fourth quarter 2006 net earnings of $1,124,000 or $.27 per share on revenues of $538,577,000. Net earnings for 2007 totaled $17,056,000 or $4.04 per share on revenues totaling $2,636,222,000.



    A summary of operating results follows:

                                                  Fourth Quarter
                                                2007          2006
    Operating earnings (loss)
      Marketing                             $6,618,000    $3,742,000
      Transportation                           809,000       701,000
      Oil and gas                           (2,272,000)     (751,000)
    General & administrative expenses       (3,483,000)   (2,306,000)
    Interest earnings, net                     416,000       431,000
    Income tax provision                       (85,000)     (693,000)

    Net earnings                            $2,003,000    $1,124,000


Chairman, K. S. "Bud" Adams, Jr., attributed the earnings increase to the Company's marketing segment where a 76 percent increase in operating earnings was realized, in part, due to increased crude oil prices. The Company also announced that during 2007, it participated in the drilling of 30 wells of which 21 wells were successful with eight dry holes and one well converted to salt water disposal service. Oil and gas reserve additions for 2007 replaced 92 percent of production on an equivalent barrel basis.

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 and demand for chemical based trucking services, (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, and (i) the availability of capital, (j) changes in regulations, (k) results of current and future 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 STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)

                                 Year Ended              Three Months Ended
                                 December 31,               December 31,
                              2007          2006          2007        2006

    Revenues              $2,636,222     $2,246,603     $879,813    $538,577

    Costs, expenses
     and other            (2,610,708)    (2,230,830)    (877,725)   (536,760)
    Income tax
     (provision)              (8,458)        (5,290)         (85)       (693)

    Net earnings             $17,056        $10,483       $2,003      $1,124

    Basic and diluted
     net earnings per
     common share              $4.04          $2.49         $.47        $.27

    Dividends per
     common share               $.47           $.42         $.47        $.42



               UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)

                                    December 31,            December 31,
                                       2007                    2006
    ASSETS
     Cash                            $23,697                 $20,668
     Other current assets            288,196                 221,122
       Total current assets          311,893                 241,790

     Net property & equipment         39,698                  43,316
     Other assets                      5,484                   4,181
                                    $357,075                $289,287
    LIABILITIES AND EQUITY
     Total current liabilities      $261,321                $206,582
     Long-term debt                        -                   3,000
     Deferred taxes and other          6,312                   5,337
     Shareholders' equity             89,442                  74,368
                                    $357,075                $289,287



      Rick Abshire
      (713) 881-3609

Source: Adams Resources & Energy, Inc.

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