Adams Resources Announces Second Quarter Earnings

HOUSTON, Aug. 13 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc. (Amex: AE) announced second quarter 2008 unaudited net earnings of $4,825,000 or $1.15 per common share. Revenues for the quarter totaled $1,280,352,000. Current earnings compare to unaudited second quarter 2007 net earnings of $11,286,000 or $2.67 per common share. For the six months ended June 30, 2008, net earnings were $7,036,000 or $1.67 per common share.

Chairman and Chief Executive Officer, K.S. "Bud" Adams, Jr., attributed the comparative current year earnings decline to the non-recurrence of a $7.2 million second quarter 2007 after-tax gain from the sale of certain producing oil and gas properties. The comparative effect of last year's gain was partially offset by $2.5 million in current period after-tax inventory liquidation gains, as the company sold crude oil inventories into a rising market.

    A summary of operating results is as follows:

                                                        Second Quarter
                                                     2008            2007
    Operating Earnings (Expense)
      Marketing                                $  7,172,000     $  5,216,000
      Transportation                              1,371,000        2,433,000
      Oil and gas                                 1,093,000       12,528,000
      General &administrative expenses           (2,503,000)      (2,582,000)
                                                  7,133,000       17,595,000
    Interest, net                                   175,000          424,000
    Income tax provision                         (2,483,000)      (6,733,000)

    Net earnings                               $  4,825,000     $ 11,286,000

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 commodity 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 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 (q) demand for chemical based trucking operations and (r) 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.

     Rick Abshire (713) 881-3609

                    (In thousands, except per share data)

                              Six Months Ended          Three Months Ended
                                   June 30,                   June 30,
                              2008         2007          2008         2007

    Revenues              $ 2,246,340  $ 1,056,114   $ 1,280,352  $  569,748

    Costs, expenses
     and other             (2,235,680)  (1,036,932)   (1,273,044)   (551,729)
    Income tax provision       (3,624)      (6,984)       (2,483)     (6,733)

    Net earnings               $7,036      $12,198        $4,825     $11,286

    Earnings per share
      Basic and diluted
       net earnings per
       common share       $      1.67  $      2.89   $      1.15  $     2.67

    Dividends per
     common share         $         -  $         -   $         -  $        -

                                (In thousands)

                                                      June 30,    December 31,
                                                        2008          2007
      Cash                                             $22,676       $23,697
      Other current assets                             425,192       288,196
        Total current assets                           447,868       311,893

    Net property & equipment                            41,645        39,698
    Other assets                                         7,733         5,484
                                                      $497,246      $357,075

      Total current liabilities                       $392,336      $261,321
      Deferred taxes and other                           8,432         6,312
      Shareholders' equity                              96,478        89,442
                                                      $497,246      $357,075

SOURCE Adams Resources & Energy, Inc.

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