Chairman and Chief Executive Officer, K.S. 'Bud' Adams, Jr., attributed
the earnings decline to reduced volumes and prices within the Company's oil
and gas exploration and production operation. In addition, exploration
expenses were increased by approximately
A summary of operating results is as follows:
First Quarter
2007 2006
Operating Earnings (Loss)
Marketing $3,223,000 $3,637,000
Transportation 726,000 1,171,000
Oil and gas (520,000) 2,805,000
General & administrative expenses (2,602,000) (2,116,000)
Interest, net 336,000 57,000
Income tax provision (251,000) (1,910,000)
Net earnings $912,000 $3,644,000
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, (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,
2007 2006
Revenues $486,366 $488,028
Costs, expenses and other (485,203) (482,474)
Income tax provision (251) (1,910)
Net earnings $912 $3,644
Basic and diluted net earnings
per common share $.22 $.86
Dividends per common share $- $-
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, December 31,
2007 2006
ASSETS
Cash $21,307 $20,668
Other current assets 217,860 221,122
Total current assets 239,167 241,790
Net property & equipment 44,398 43,316
Other assets 6,782 4,181
$290,347 $289,287
LIABILITIES AND EQUITY
Total current liabilities $204,508 $206,582
Long-term debt 3,000 3,000
Deferred taxes and other 7,559 5,337
Shareholders' equity 75,280 74,368
$290,347 $289,287
Rick Abshire (713) 881-3609
SOURCE Adams Resources & Energy, Inc.
