EX-99.1 CHARTER 2 ex99_1.htm EXHIBIT 99.1 8K 2ND QT 2006 Exhibit 99.1 8k 2nd QT 2006




Exhibit 99.1
FOR IMMEDIATE RELEASE
                                                                                         Rick Abshire (713) 881-3609


ADAMS RESOURCES ANNOUNCES SECOND QUARTER EARNINGS

Houston (August 11, 2006) -- Adams Resources & Energy, Inc., (AMEX-AE), announced second quarter 2006 unaudited net earnings of $4,038,000 or $.96 per common share. Revenues for the quarter totaled $595,000,000. Current earnings compare to unaudited second quarter 2005 net earnings of $1,886,000 or $.44 per common share. For the six-months ended June 30, 2006, net earnings were $7,682,000 or $1.82 per common share. Net cash flow provided by operating activities totaled $13,477,000 for the six months ended June 30, 2006.

Chairman K. S. “Bud” Adams, Jr. attributed the earnings improvement to increased crude oil and natural gas prices. Average crude oil prices increased 35% to $67.88 per barrel while average natural gas prices rose 4% to $7.27 per mcf for the Company’s production. Rising prices also contributed approximately $1 million to pre-tax earnings as a result of liquidating crude oil inventories into a relatively higher priced market.

A summary of operating results is as follows:
 
   
Second Quarter
  
   
2006
  
2005
  
               
Operating Earnings
              
Marketing
  
$
3,706,000
  
$
2,165,000
  
Transportation
    
1,974,000
    
1,825,000
  
Oil and gas
    
2,140,000
    
1,193,000
  
General & administrative expenses
    
(2,004,000
)
  
(2,383,000
)
     
5,816,000
    
2,800,000
  
Interest, net
    
120,000
    
6,000
  
Income tax provision
    
(1,898,000
)
  
(957,000
)
Earnings from continuing operations
    
4,038,000
    
1,849,000
  
Earnings from discontinued operations
    
-
    
37,000
  
               
Net earnings
  
$
4,038,000
  
$
1,886,000
  





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, 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 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 OPERATIONS
  
(In thousands, except per share data) 
  
   
   
Six Months Ended
  
Three Months Ended
  
   
June 30,
  
June 30,
  
   
2006
  
2005
  
2006
  
2005
  
                           
Revenues
  
$
1,083,028
  
$
1,069,838
  
$
595,000
  
$
542,195
  
                           
Costs, expenses and other
    
(1,071,538
)
  
(1,062,559
)
  
(589,064
)
  
(539,389
)
Income tax provision
    
(3,808
)
  
(2,520
)
  
(1,898
)
  
(957
)
                           
Earnings from continuing operations
    
7,682
    
4,759
    
4,038
    
1,849
  
                           
Earnings from discontinued operation
    
-
    
(22
)
  
-
    
37
  
                           
Net earnings
  
$
7,682
  
$
4,737
  
$
4,038
  
$
1,886
  
                           
Earnings (loss) per share
                          
From continuing operations
  
$
1.82
  
$
1.13
  
$
.96
  
$
.43
  
From discontinued operation
    
-
    
(.01
)
  
-
    
.01
  
Basic and diluted net earnings per
                          
common share
  
$
1.82
  
$
1.12
  
$
.96
  
$
.44
  
                           
Dividends per common share
  
$
-
  
$
-
  
$
-
  
$
-
  





UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
  
(In thousands)
  
   
   
June 30,
  
December 31,
  
   
2006
  
2005
  
               
ASSETS
              
Cash
  
$
21,886
  
$
18,817
  
Other current assets
    
238,332
    
251,633
  
Total current assets
    
260,218
    
270,450
  
               
Net property & equipment
    
42,860
    
39,896
  
Other assets
    
2,909
    
2,316
  
   
$
305,987
  
$
312,662
  
               
LIABILITIES AND EQUITY
              
Total current liabilities
  
$
217,597
  
$
231,129
  
Long-term debt
    
9,500
    
11,475
  
Deferred taxes and other
    
5,552
    
4,402
  
Shareholders’ equity
    
73,338
    
65,656
  
   
$
305,987
  
$
312,662