A summary of operating results follows:
Third Quarter
2005 2004
Operating earnings
Marketing $5,914,000 $6,070,000
Transportation 1,231,000 1,609,000
Oil and gas 1,883,000 1,021,000
General and administrative (1,959,000) (2,120,000)
Interest, net 29,000 (5,000)
Income tax provision (2,102,000) (2,274,000)
Earnings from continuing operations 4,996,000 4,301,000
Earnings from discontinued
operations, net of tax 301,000 51,000
Net earnings $5,297,000 $4,352,000
Chairman K.S. 'Bud' Adams, Jr., attributed the earnings increase to higher
commodity prices for sales of the Company's production of crude oil and
natural gas. The Company also sold its interest in a crude oil gathering
pipeline located in the offshore Gulf of
The Company also announced its Board of Directors has declared an annual
cash dividend in the amount of
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 CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Nine Months Ended Three Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenues $1,864,455 $1,506,941 $794,617 $550,393
Costs, expenses and other 1,850,078 1,496,940 787,519 543,818
Income tax provision 4,622 3,443 2,102 2,274
Earnings from continuing
operations 9,755 6,558 4,996 4,301
Income (loss) from discontinued
operations, net of tax 279 (150) 301 51
Net earnings $10,034 $6,408 $5,297 $4,352
Earnings (loss) per share
From continuing operations $2.31 1.56 $1.19 1.02
From discontinued operations .07 (.04) .07 .01
Basic and diluted net earnings
per common share $2.38 $1.52 $1.26 $1.03
Dividends per common share $--- $--- $--- $---
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
September 30, December 31,
2005 2004
ASSETS
Cash $24,610 $19,942
Other current assets 251,778 189,397
Total current assets 276,388 209,339
Net property and equipment 31,415 29,076
Other assets 2,479 439
$310,282 $238,854
LIABILITIES
Total current liabilities $233,818 $173,550
Long-term debt 11,475 11,475
Deferred taxes and other 5,380 4,254
Shareholders' equity 59,609 49,575
$310,282 $238,854
Rick Abshire
(713) 881-3609
SOURCE Adams Resources & Energy, Inc.
