AE Adams Resources and Energy Inc

HOUSTON, May 12 /PRNewswire-FirstCall/ -- Adams Resources & Energy, Inc. (AMEX:AE) announced first quarter 2006 unaudited net earnings of $3,644,000 or $.86 per common share on revenues of $488,028,000. This compares to unaudited first quarter 2005 net earnings of $2,851,000 or $.68 per common share. 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 $46.88 per barrel during the first quarter of 2005 to $61.20 for the 2006 first quarter. Natural gas prices followed the same trend for the comparative quarters increasing from an average of $6.64 per mcf in 2005 to $8.55 per mcf in 2006. 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 DATASOURCE: Adams Resources & Energy, Inc. CONTACT: Rick Abshire of Adams Resources & Energy, Inc., +1-713-881-3609

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