Chairman and Chief Executive Officer, K.S. 'Bud' Adams, Jr., attributed
the earnings improvement to increased production sales volumes as well as
increased prices within the Company's oil and gas exploration and production
operation. Relative to 2005, comparative first quarter of 2006 oil and gas
production volumes, on an equivalent barrel basis, improved by 46 percent due
to favorable results from the Company's recent drilling efforts. Crude oil
prices increased from an average of
A summary of operating results is as follows:
First Quarter
2006 2005
Operating Earnings
Marketing $3,637,000 $3,940,000
Transportation 1,171,000 1,169,000
Oil and gas 2,805,000 1,515,000
General & administrative expenses (2,116,000) (2,152,000)
Interest, net 57,000 1,000
Income tax provision (1,910,000) (1,563,000)
Earnings from continuing operations 3,644,000 2,910,000
Loss from discontinued operation, net of tax --- (59,000)
Net earnings $3,644,000 $2,851,000
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 EARNINGS
(In thousands)
March 31, March 31,
2006 2005
Revenues $488,028 $527,643
Costs, expenses and other (482,474) (523,170)
Income tax provision (1,910) (1,563)
Earnings from continuing operations 3,644 2,910
Loss from discontinued operation, net of tax --- (59)
Net earnings $3,644 $2,851
Earnings (loss) per share:
From continuing operations $.86 $.69
From discontinued operations --- (.01)
Basic and diluted net earnings
per common share $.86 $.68
Dividends per common share $--- $---
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, December 31,
2006 2005
ASSETS
Cash $24,811 $18,817
Other current assets 230,069 251,633
Total current assets 254,880 270,450
Net property & equipment 41,983 39,896
Other assets 2,300 2,316
$299,163 $312,662
LIABILITIES AND EQUITY
Total current liabilities $213,444 $231,129
Long-term debt 11,475 11,475
Deferred taxes and other 4,944 4,402
Shareholders' equity 69,300 65,656
$299,163 $312,662
SOURCE Adams Resources & Energy, Inc.
