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Adams Resources & Energy Inc. (NYSE American: AE) is a prominent company specializing in several key areas of the energy sector, including crude oil marketing, transportation, logistics, and repurposing of petroleum products. Headquartered in Humble, Texas, Adams Resources operates through four primary business segments: crude oil marketing, tank truck transportation, pipeline and storage, and logistics and repurposing.
The Crude Oil Marketing segment is a major revenue driver for the company, offering services that include the marketing of crude oil and related activities. The Transportation segment covers the tank truck transportation of liquid chemicals, pressurized gases, asphalt, and dry bulk materials. The Pipeline and Storage segment includes pipeline transportation, terminalling, and storage of crude oil, ensuring a seamless supply chain. Lastly, the Logistics and Repurposing segment focuses on interstate bulk transportation logistics of various petroleum products and the recycling of off-specification fuels, lubricants, and other chemicals.
Adams Resources has a range of subsidiaries, including GulfMark Energy, Inc., Service Transport Company, Victoria Express Pipeline, LLC, GulfMark Terminals, LLC, Firebird Bulk Carriers, Inc., and Phoenix Oil, Inc.. These subsidiaries help diversify the company's portfolio and enhance its ability to meet the energy needs of various industries.
Recent developments highlight the company's commitment to growth and innovation. For instance, Phoenix Oil, a subsidiary of Adams Resources, has acquired 11 acres at the Gulf Inland Logistics Park to expand its operations. This strategic move offers logistical advantages due to its proximity to the Port of Houston and major roadways, thereby boosting the company’s operational efficiency.
Financially, Adams Resources has demonstrated resilience and adaptability. As of the most recent quarterly reports, the company posted a net earnings increase and maintained a solid cash position. Liquidity has also improved, reaching $83.6 million by the end of the first quarter of 2024, reflecting strong operational cash flow management.
In addition to financial performance, Adams Resources continues to prioritize shareholder returns. The company has consistently paid quarterly dividends, showcasing its commitment to delivering long-term value to its investors.
Overall, Adams Resources & Energy Inc. stands as a robust player in the energy sector, leveraging its diversified operations to navigate market challenges and capitalize on growth opportunities.
Adams Resources & Energy announced the repurchase of 1,942,433 shares from KSA Industries for $70 million, approximately $36 per share, marking a 10% premium over the average share price. The buyback represents 44.2% of total shares outstanding, enhancing shareholder value and reducing dividend payments by $1.9 million annually. Additionally, the company secured an $85 million credit facility from Cadence Bank, providing operational flexibility and a new $25 million term loan. Total shares outstanding will be 2,452,404 after the transaction.
Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) announced its participation in Singular Research's 2022 Autumn Equinox Webinar on September 14, 2022, at 3:30 pm ET. The company will be represented by CEO Kevin Roycraft and CFO Tracy Ohmart. Interested parties can access the presentation via a live webcast by contacting Singular Research. A slide presentation will also be available on the company's Investor Relations page.
Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) announces the opening of its 20th terminal in Pittsburgh, PA, through its subsidiary, Service Transport Company. This facility enhances Service Transport's capacity in the Northeast U.S., driving potential revenue and profitability growth. Over four years, Service Transport expanded from six terminals in three Gulf Coast states to twenty locations in eleven Eastern states. This new terminal will facilitate local recruitment and operational efficiency.
Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) announced that its subsidiary, Victoria Express Pipeline, will construct a new pipeline connection to Max Midstream's Upper Gulf Coast Pipeline System. This initiative aims to enhance crude oil supply and delivery points for VEX customers, providing access to key markets. Construction is set to begin in September 2022, with completion expected by year-end and new volumes anticipated in early 2023. The connection is seen as a strategic move to improve operational efficiency and market reach.
Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) will present at the Midwest IDEAS Investor Conference on August 25, 2022, at 9:30 am CT in Chicago, IL. CEO Kevin Roycraft and CFO Tracy Ohmart will represent the company. The presentation will be available via webcast on the conference's website as well as on Adams' investor relations page. The IDEAS Conferences connect quality companies with investment professionals, emphasizing independent investor engagement.
On August 15, 2022, Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) announced the completion of the acquisition of Firebird Bulk Carriers, Inc. and Phoenix Oil, Inc. for approximately $33 million. This sum includes $32 million in cash and $0.5 million in stock. The acquisition is set to enhance GulfMark's service offerings and is projected to increase annual adjusted cash flow by over 30%. The company anticipates immediate earnings accretion and improved market impact.
Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) announced an amended senior secured revolving credit facility on August 12, 2022. The new agreement increases their credit from $40 million to $60 million and extends the maturity date to August 2025. The pricing remains largely unchanged, with a switch to a SOFR-based pricing grid. Currently, Adams has drawn $8.2 million in letters of credit against this facility. CFO Tracy Ohmart emphasized the added flexibility to support the company's growth strategy.
Adams Resources & Energy, Inc. (AE) reported Q2 2022 net earnings of $2.5 million ($0.56 per diluted share) on revenues of $992.1 million, down from $4.7 million ($1.10 per diluted share) on $486.7 million in Q2 2021. Net cash used in operations totaled $30.1 million, influenced by rising crude oil prices. The company declared a quarterly cash dividend of $0.24 per share, payable on September 23, 2022. Enhanced liquidity stood at $102 million, while capital investments for equipment totaled $1.1 million. The pipeline segment saw throughput increase to 13,281 bpd.
Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) announced participation in the virtual East Coast IDEAS Investor Conference on June 22-23, 2022. CEO Kevin Roycraft and CFO Tracy Ohmart will present, with the presentation available from 6:00 am ET on June 22. Attendees can access the presentation via the conference and company websites. The IDEAS Conferences aim to connect quality companies with investment professionals, emphasizing independent venues. Sponsors manage over $200 billion in assets, supporting regional investment communities.
Adams Resources & Energy (NYSE AMERICAN: AE) reported strong operational and financial results for Q1 2022, with net earnings of $6.1 million ($1.39 per diluted share) on revenues of $774.2 million, significantly up from $2.8 million ($0.66 per diluted share) on revenues of $325.5 million in Q1 2021. The company declared a quarterly cash dividend of $0.24 per share, payable on June 17, 2022. They also highlighted growth in cash and equivalents to $99.3 million and increased pipeline throughput. However, net cash from operations fell to $5.9 million, down from $23 million in the previous year.
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