Adams Resources & Energy Inc. (AE) News

HOUSTON, Aug. 11 /PRNewswire-FirstCall/ -- 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

     Rick Abshire  (713) 881-3609

SOURCE Adams Resources & Energy, Inc.