X
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the Fiscal Year ended December 31, 2012
|
_____ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Commission File Number 1-7908
|
Delaware
|
74-1753147
|
17 South Briar Hollow Lane Ste 100
|
77027
|
Houston, Texas
|
|||
(State of Incorporation)
|
(I.R.S. Employer Identification No.)
|
(Address of Principal executive offices)
|
(Zip Code)
|
Title of each class
|
Name of each exchange on which registered
|
Common Stock, $.10 Par Value
|
NYSE MKT
|
Oil Wells
|
Gas Wells
|
Total Wells
|
||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||||||
Texas
|
155 | 9.53 | 190 | 12.83 | 345 | 22.36 | ||||||||||||||||||
Other
|
91 | 3.96 | 48 | 5.01 | 139 | 8.97 | ||||||||||||||||||
246 | 13.49 | 238 | 17.84 | 484 | 31.33 |
Developed Acreage
|
Undeveloped Acreage
|
|||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||
Texas
|
130,541 | 10,908 | 200,232 | 16,436 | ||||||||||||
Kansas
|
150 | 8 | 17,772 | 888 | ||||||||||||
Other
|
8,281 | 1,086 | 1,701 | 674 | ||||||||||||
138,972 | 12,002 | 219,705 | 17,998 |
2012
|
2011
|
2010
|
||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||||||
Exploratory wells drilled
|
||||||||||||||||||||||||
- Productive
|
- | - | - | - | - | - | ||||||||||||||||||
- Dry
|
- | - | 8 | .87 | 12 | .67 | ||||||||||||||||||
Development wells drilled
|
||||||||||||||||||||||||
- Productive
|
109 | 2.40 | 75 | 2.10 | 41 | 1.77 | ||||||||||||||||||
- Dry
|
- | - | 3 | .18 | - | - | ||||||||||||||||||
109 | 2.40 | 86 | 3.15 | 53 | 2.44 |
December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Crude oil (thousands of barrels)
|
307 | 292 | 267 | |||||||||
Natural gas (thousands of mcf)
|
8,837 | 9,661 | 7,794 | |||||||||
Standardized measure of discounted future
|
||||||||||||
net cash flows from oil and natural gas reserves
|
$ | 16,355 | $ | 20,931 | $ | 16,672 |
Years Ended
|
Crude Oil
|
Natural
|
||||||
December 31
,
|
(
barrels
)
|
Gas (mcf
)
|
||||||
2012
|
98,100 | 2,608,000 | ||||||
2011
|
61,500 | 1,895,000 | ||||||
2010
|
54,000 | 1,365,000 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Average oil and condensate
|
||||||||||||
sales price per barrel
|
$ | 84.39 | $ | 93.23 | $ | 77.09 | ||||||
Average natural gas
|
||||||||||||
sales price per mcf
|
$ | 2.94 | $ | 4.39 | $ | 5.02 | ||||||
Average production cost, per equivalent
|
||||||||||||
barrel, charged to expense
|
$ | 13.14 | $ | 16.79 | $ | 13.99 |
-
|
The Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended.
|
-
|
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (‟CERCLA” or ‟Superfund”), as amended.
|
-
|
The Clean Water Act of 1972, as amended.
|
-
|
Federal Oil Pollution Act of 1990, as amended.
|
-
|
The Clean Air Act of 1970, as amended.
|
-
|
The Toxic Substances Control Act of 1976, as amended.
|
-
|
The Emergency Planning and Community Right-to-Know Act.
|
-
|
The Occupational Safety and Health Act of 1970, as amended.
|
-
|
Texas Clean Air Act.
|
-
|
Texas Solid Waste Disposal Act.
|
-
|
Texas Water Code.
|
-
|
Texas Oil Spill Prevention and Response Act of 1991, as amended.
|
·
|
supply and demand for oil and gas and expectations regarding supply and demand;
|
·
|
political conditions in other oil-producing countries, including the possibility of insurgency or war in such areas;
|
·
|
economic conditions in the United States and worldwide;
|
·
|
governmental regulations and taxation;
|
·
|
impact of energy conservation efforts;
|
·
|
the price and availability of alternative fuel sources;
|
·
|
weather conditions;
|
·
|
availability of local, interstate and intrastate transportation systems; and
|
·
|
market uncertainty.
|
·
|
lack of acceptable prospective acreage;
|
·
|
inadequate capital resources;
|
·
|
weather;
|
·
|
title problems;
|
·
|
compliance with governmental regulations; and
|
·
|
mechanical difficulties.
|
Item 5.
|
MARKET FOR THE REGISTRANT’S COMMON STOCK, RELATED SECURITY HOLDER MATTERS, AND ISSUER REPURCHASE OF EQUITY SECURITIES
|
American Stock Exchange
|
||||||||
High
|
Low
|
|||||||
2012
|
||||||||
First Quarter
|
$ | 75.13 | $ | 29.20 | ||||
Second Quarter
|
74.73 | 27.85 | ||||||
Third Quarter
|
47.33 | 30.00 | ||||||
Fourth Quarter
|
36.20 | 28.10 | ||||||
2011
|
||||||||
First Quarter
|
$ | 31.30 | $ | 22.46 | ||||
Second Quarter
|
30.50 | 22.51 | ||||||
Third Quarter
|
29.07 | 18.73 | ||||||
Fourth Quarter
|
29.50 | 18.90 |
1.
|
$100.00 was invested on December 31, 2007 in the Company’s common stock, the S&P 500 Index, and the S&P 500 Integrated Oil and Gas Index.
|
2.
|
Dividends are reinvested on the ex-dividend dates.
|
12/07 | 12/08 | 12/09 | 12/10 | 12/11 | 12/12 | |||||||||||||||||||
Adams Resources & Energy, Inc.
|
100.00 | 68.35 | 90.70 | 102.34 | 125.26 | 153.78 | ||||||||||||||||||
S&P 500
|
100.00 | 63.00 | 79.67 | 91.67 | 93.61 | 108.59 | ||||||||||||||||||
S&P Integrated Oil & Gas
|
100.00 | 78.21 | 77.20 | 91.75 | 105.30 | 107.63 |
Years Ended December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
(In thousands, except per share data)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Marketing
|
$ | 3,297,827 | $ | 2,967,427 | $ | 2,015,893 | $ | 1,784,832 | $ | 3,861,117 | ||||||||||
Transportation
|
67,183 | 63,501 | 56,867 | 44,895 | 67,747 | |||||||||||||||
Oil and natural gas
|
15,954 | 14,060 | 11,021 | 8,650 | 17,248 | |||||||||||||||
$ | 3,380,964 | $ | 3,044,988 | $ | 2,083,781 | $ | 1,838,377 | $ | 3,946,112 | |||||||||||
Operating earnings (loss):
|
||||||||||||||||||||
Marketing
|
$ | 47,166 | $ | 51,384 | $ | 16,603 | $ | 18,153 | $ | (2,298 | ) | |||||||||
Transportation
|
10,253 | 8,521 | 6,623 | 2,128 | 4,245 | |||||||||||||||
Oil and gas operations
|
(5,804 | ) | (16,794 | ) | (1,757 | ) | (3,625 | ) | (3,348 | ) | ||||||||||
Oil and gas property sale
|
2,203 | 2,923 | - | - | - | |||||||||||||||
General and administrative
|
(9,769 | ) | (9,713 | ) | (9,044 | ) | (9,589 | ) | (9,667 | ) | ||||||||||
44,049 | 36,321 | 12,425 | 7,067 | (11,068 | ) | |||||||||||||||
Other income (expense):
|
||||||||||||||||||||
Interest income
|
190 | 237 | 191 | 125 | 1,103 | |||||||||||||||
Interest expense
|
(10 | ) | (8 | ) | (36 | ) | (25 | ) | (187 | ) | ||||||||||
Earnings (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
44,229 | 36,550 | 12,580 | 7,167 | (10,152 | ) | ||||||||||||||
Income tax (provision) benefit
|
(16,697 | ) | (13,107 | ) | (4,028 | ) | (2,585 | ) | 4,844 | |||||||||||
Earnings (loss) from continuing
|
||||||||||||||||||||
Operations
|
27,532 | 23,443 | 8,552 | 4,582 | (5,308 | ) | ||||||||||||||
Earnings (loss) from discontinued
|
||||||||||||||||||||
operations, net of taxes
|
259 | (512 | ) | 79 | (433 | ) | (264 | ) | ||||||||||||
Net earnings (loss)
|
$ | 27,791 | $ | 22,931 | $ | 8,631 | $ | 4,149 | $ | (5,572 | ) | |||||||||
Earnings (Loss) Per Share
|
||||||||||||||||||||
From continuing operations
|
6.53 | 5.56 | 2.03 | 1.08 | (1.26 | ) | ||||||||||||||
From discontinued operations
|
.06 | (.12 | ) | .02 | (.10 | ) | (.06 | ) | ||||||||||||
Basic and diluted earnings (loss) per share
|
$ | 6.59 | $ | 5.44 | $ | 2.05 | $ | .98 | $ | (1.32 | ) | |||||||||
Dividends per common share
|
$ | .62 | $ | .57 | $ | .54 | $ | .50 | $ | .50 | ||||||||||
Financial Position
|
||||||||||||||||||||
Cash
|
$ | 47,239 | $ | 37,066 | $ | 29,032 | $ | 16,806 | $ | 18,208 | ||||||||||
Net working capital
|
58,474 | 48,871 | 39,978 | 38,372 | 41,559 | |||||||||||||||
Total assets
|
419,501 | 378,840 | 301,305 | 249,401 | 210,926 | |||||||||||||||
Long-term debt
|
- | - | - | - | - | |||||||||||||||
Shareholders’ equity
|
135,858 | 110,682 | 90,155 | 83,801 | 81,761 | |||||||||||||||
Dividends on common shares
|
2,615 | 2,404 | 2,277 | 2,109 | 2,109 |
-
|
In 2012 and 2011, certain oil and natural gas producing properties were sold for $3.6 million and $6.6 million producing net gains of $2.2 million and $2.9 million, respectively.
|
-
|
The 2012 and 2011 oil and gas operating losses primarily resulted from property impairments totaling $4.7 million and $14.8 million, respectively, recorded as a result of declining natural gas prices.
|
|
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
2012
|
2011
|
2010
|
||||||||||
Revenues
|
||||||||||||
Crude oil
|
$ | 3,292,948 | $ | 2,961,176 | $ | 2,005,301 | ||||||
Natural gas
|
4,879 | 6,251 | 10,592 | |||||||||
Total
|
$ | 3,297,827 | $ | 2,967,427 | $ | 2,015,893 | ||||||
Operating Earnings (loss)
|
||||||||||||
Crude oil
|
$ | 46,145 | $ | 49,237 | $ | 13,530 | ||||||
Natural gas
|
1,021 | 2,147 | 3,073 | |||||||||
Total
|
$ | 47,166 | $ | 51,384 | $ | 16,603 | ||||||
Depreciation
|
||||||||||||
Crude oil
|
$ | 5,945 | $ | 3,724 | $ | 2,320 | ||||||
Natural gas
|
31 | 3 | 44 | |||||||||
Total
|
$ | 5,976 | $ | 3,727 | $ | 2,364 | ||||||
Fleet diesel fuel costs
|
$ | 11,617 | $ | 9,982 | $ | 6,001 |
2012
|
2011
|
2010
|
||||||||||
Field Level Purchases per day
(1)
|
||||||||||||
Crude Oil – barrels
|
89,200 | 81,600 | 69,000 | |||||||||
Natural Gas – mmbtu’s
|
123,000 | 208,000 | 258,000 | |||||||||
Average Purchase Price
|
||||||||||||
Crude Oil – per barrel
|
$ | 99.66 | $ | 96.77 | $ | 77.20 | ||||||
Natural Gas – per mmbtu
|
$ | 2.58 | $ | 3.93 | $ | 4.28 |
|
(1)
Reflects the volume purchased from third parties at the oil and natural gas field level and pipeline pooling points.
|
-
|
Crude Oil – Field Level Operating Earnings (Non GAAP Measure)
|
2012
|
2011
|
2010
|
||||||||||
As reported segment operating earnings
|
$ | 46,145 | $ | 49,237 | $ | 13,530 | ||||||
Add (less) -
|
||||||||||||
Inventory liquidation (gains) losses
|
1,596 | (3,021 | ) | (2,272 | ) | |||||||
Derivative valuation (gains) losses
|
2,001 | 149 | (1,049 | ) | ||||||||
Field level operating earnings
(1)
|
$ | 49,742 | $ | 46,365 | $ | 10,209 |
(1)
|
Such designation is unique to the Company and is not comparable to any similar measures developed by industry participants.
|
-
|
Natural Gas Marketing
|
|
-
|
Transportation
|
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
|||||||||||||||||||
Revenues
|
$ | 67,183 | 6 | % | $ | 63,501 | 12 | % | $ | 56,867 | 27 | % | ||||||||||||
Operating earnings
|
$ | 10,253 | 20 | % | $ | 8,521 | 29 | % | $ | 6,623 | 211 | % | ||||||||||||
Depreciation
|
$ | 5,921 | 51 | % | $ | 3,912 | (9 | )% | $ | 4,288 | 8 | % |
(1)
|
Represents the percentage increase (decrease) from the prior year.
|
|
-
|
Oil and Gas
|
2012
|
2011
|
2010
|
||||||||||||||||||||||
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
|||||||||||||||||||
Revenues
|
$ | 15,954 | 13 | % | $ | 14,060 | 28 | % | $ | 11,021 | 27 | % | ||||||||||||
Operating earnings (loss)
(2)
|
(3,601 | ) | (74 | )% | (13,871 | ) | 689 | % | (1,757 | ) | 51 | % | ||||||||||||
Depreciation and depletion
|
8,817 | 7 | % | 8,246 | 77 | % | 4,662 | 28 | % | |||||||||||||||
Producing property impairments
|
4,699 | (34 | )% | 7,105 | 651 | % | 946 | (30 | )% |
(1)
|
Represents the percentage increase (decrease) from the prior year.
|
(2)
|
Includes gains from property sales of $2.2 million and $2.9 million in 2012 and 2011, respectively.
|
2012
|
2011
|
2010
|
|||||||||||||
Production Volumes
|
|||||||||||||||
- Crude oil
|
98,100 |
bbls
|
61,500 |
bbls
|
54,000 |
bbls
|
|||||||||
- Natural gas
|
2,608,000 |
mcf
|
1,895,000 |
Mcf
|
1,365,000 |
mcf
|
|||||||||
Average Price
|
|||||||||||||||
- Crude oil
(1)
|
$ | 84.39 |
bbls
|
$ | 93.23 |
bbls
|
$ | 77.09 |
bbls
|
||||||
- Natural gas
|
$ | 2.94 |
mcf
|
$ | 4.39 |
Mcf
|
$ | 5.02 |
mcf
|
(1)
|
Crude oil prices and volumes include the sale of associated natural gas liquids production.
|
2012
|
2011
|
2010
|
||||||||||
Dry hole expense
|
$ | 43 | $ | 1,212 | $ | 1,894 | ||||||
Prospect impairment
|
856 | 7,644 | 1,277 | |||||||||
Seismic and geological
|
252 | 310 | 62 | |||||||||
Total
|
$ | 1,151 | $ | 9,166 | $ | 3,233 |
2012
|
2011
|
2010
|
||||||||||
(Eq. Bbls.)
|
(Eq. Bbls.)
|
(Eq. Bbls.)
|
||||||||||
Proved reserves – beginning of year
|
1,907,000 | 1,566,000 | 1,450,000 | |||||||||
Estimated reserve additions
|
537,000 | 1,209,000 | 536,000 | |||||||||
Production volumes
|
(533,000 | ) | (377,000 | ) | (282,000 | ) | ||||||
Producing properties sold
|
(71,000 | ) | (385,000 | ) | - | |||||||
Revisions of previous estimates
|
(61,000 | ) | (106,000 | ) | (138,000 | ) | ||||||
Proved reserves - end of year
|
1,779,000 | 1,907,000 | 1,566,000 |
|
-
|
Oil and gas property sales
|
-
|
General and administrative, interest income and income tax
|
|
-
|
Outlook
|
-
|
Maintain marketing operating earnings at the $35 million level exclusive of inventory valuation gains or losses.
|
-
|
Maintain transportation operating earnings at the $7 million level.
|
-
|
Restore oil and gas operating earnings to the $2 million level.
|
2013
|
2014
|
2015
|
2016
|
2017
|
Thereafter
|
Total
|
||||||||||||||||||||||
Lease payments
|
$ | 3,404 | $ | 1,718 | $ | 1,450 | $ | 1,431 | $ | 1,210 | $ | 724 | $ | 9,937 |
January
|
Remaining
|
|||||||||||||||||||||||
2013
|
2013
|
2014
|
2015
|
Thereafter
|
Total
|
|||||||||||||||||||
Crude oil
|
$ | 256,953 | $ | 45 | $ | - | $ | - | $ | - | $ | 256,998 | ||||||||||||
Natural gas
|
8,862 | 301 | - | - | - | 9,163 | ||||||||||||||||||
$ | 265,815 | $ | 346 | $ | - | $ | - | $ | - | $ | 266,161 |
Page
|
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
28
|
FINANCIAL STATEMENTS:
|
|
Consolidated Balance Sheets as of December 31, 2012 and 2011
|
29
|
Consolidated Statements of Operations for the Years Ended
|
|
December 31, 2012, 2011 and 2010
|
30
|
Consolidated Statements of Shareholders’ Equity for the Years Ended
|
|
December 31, 2012, 2011 and 2010
|
31
|
Consolidated Statements of Cash Flows for the Years Ended
|
|
December 31, 2012, 2011 and 2010
|
32
|
Notes to Consolidated Financial Statements
|
33
|
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
REVENUES:
|
||||||||||||
Marketing
|
$ | 3,297,827 | $ | 2,967,427 | $ | 2,015,893 | ||||||
Transportation
|
67,183 | 63,501 | 56,867 | |||||||||
Oil and natural gas
|
15,954 | 14,060 | 11,021 | |||||||||
3,380,964 | 3,044,988 | 2,083,781 | ||||||||||
COSTS AND EXPENSES:
|
||||||||||||
Marketing
|
3,244,685 | 2,912,316 | 1,996,926 | |||||||||
Transportation
|
51,009 | 51,068 | 45,956 | |||||||||
Oil and natural gas operations
|
12,941 | 22,608 | 8,116 | |||||||||
Oil and natural gas property sale (gain)
|
(2,203 | ) | (2,923 | ) | - | |||||||
General and administrative
|
9,769 | 9,713 | 9,044 | |||||||||
Depreciation, depletion and amortization
|
20,714 | 15,885 | 11,314 | |||||||||
3,336,915 | 3,008,667 | 2,071,356 | ||||||||||
Operating Earnings
|
44,049 | 36,321 | 12,425 | |||||||||
Other Income (Expense):
|
||||||||||||
Interest income
|
190 | 237 | 191 | |||||||||
Interest expense
|
(10 | ) | (8 | ) | (36 | ) | ||||||
Earnings from continuing operations before income taxes
|
44,229 | 36,550 | 12,580 | |||||||||
Income Tax (Provision) Benefit:
|
||||||||||||
Current
|
(11,319 | ) | (5,523 | ) | (371 | ) | ||||||
Deferred
|
(5,378 | ) | (7,584 | ) | (3,657 | ) | ||||||
(16,697 | ) | (13,107 | ) | (4,028 | ) | |||||||
Earnings from continuing operations
|
27,532 | 23,443 | 8,552 | |||||||||
Earnings from discontinued operations net of tax
|
||||||||||||
(provision) benefit of ($139), $276 and $(42), respectively
|
259 | (512 | ) | 79 | ||||||||
Net Earnings
|
$ | 27,791 | $ | 22,931 | $ | 8,631 | ||||||
EARNINGS PER SHARE:
|
||||||||||||
From continuing operations
|
6.53 | 5.55 | 2.03 | |||||||||
From discontinued operations
|
.06 | (.11 | ) | .02 | ||||||||
Basic and diluted net earnings per share
|
$ | 6.59 | $ | 5.44 | $ | 2.05 |
Total
|
||||||||||||||||
Common
|
Contributed
|
Retained
|
Shareholders’
|
|||||||||||||
Stock
|
Capital
|
Earnings
|
Equity
|
|||||||||||||
BALANCE, January 1, 2010
|
$ | 422 | $ | 11,693 | $ | 71,686 | $ | 83,801 | ||||||||
Net earnings
|
- | - | 8,631 | 8,631 | ||||||||||||
Dividends paid on common stock
|
- | - | (2,277 | ) | (2,277 | ) | ||||||||||
BALANCE, December 31, 2010
|
$ | 422 | $ | 11,693 | $ | 78,040 | $ | 90,155 | ||||||||
Net earnings
|
- | - | 22,931 | 22,931 | ||||||||||||
Dividends paid on common stock
|
- | - | (2,404 | ) | (2,404 | ) | ||||||||||
BALANCE, December 31, 2011
|
$ | 422 | $ | 11,693 | $ | 98,567 | $ | 110,682 | ||||||||
Net earnings
|
- | - | 27,791 | 27,791 | ||||||||||||
Dividends paid on common stock
|
- | - | (2,615 | ) | (2,615 | ) | ||||||||||
BALANCE, December 31, 2012
|
$ | 422 | $ | 11,693 | $ | 123,743 | $ | 135,858 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
CASH PROVIDED BY OPERATIONS:
|
||||||||||||
Net earnings
|
$ | 27,791 | $ | 22,931 | $ | 8,631 | ||||||
Adjustments to reconcile net earnings to net cash
|
||||||||||||
from operating activities-
|
||||||||||||
Depreciation, depletion and amortization
|
20,714 | 16,260 | 11,817 | |||||||||
Property sale (gains) losses
|
(6,298 | ) | (4,394 | ) | 94 | |||||||
Dry hole costs incurred
|
43 | 1,212 | 1,894 | |||||||||
Impairment of oil and natural gas properties
|
5,555 | 14,749 | 2,224 | |||||||||
Provision for doubtful accounts
|
(51 | ) | 1,141 | 29 | ||||||||
Deferred income taxes
|
5,378 | 7,308 | 3,699 | |||||||||
Net change in fair value contracts
|
1,377 | (97 | ) | (1,036 | ) | |||||||
Decrease (increase) in accounts receivable
|
(4,820 | ) | (45,487 | ) | (34,257 | ) | ||||||
Decrease (increase) in inventories
|
(9,579 | ) | (5,598 | ) | 669 | |||||||
Decrease (increase) in income tax receivable
|
(719 | ) | 1,836 | (145 | ) | |||||||
Decrease (increase) in prepayments
|
2,559 | (2,547 | ) | 2,700 | ||||||||
Increase (decrease) in accounts payable
|
10,474 | 47,662 | 40,521 | |||||||||
Increase (decrease) in accrued and other liabilities
|
1,227 | 1,378 | (406 | ) | ||||||||
Other changes, net
|
843 | (539 | ) | 494 | ||||||||
Net cash provided by operating activities
|
54,494 | 55,815 | 36,928 | |||||||||
INVESTING ACTIVITIES:
|
||||||||||||
Property and equipment additions
|
(51,012 | ) | (53,276 | ) | (22,421 | ) | ||||||
Insurance and state collateral (deposits) refunds
|
(582 | ) | (495 | ) | (151 | ) | ||||||
Proceeds from property sales
|
6,342 | 8,394 | 147 | |||||||||
Proceeds from the sale of discontinued operations
|
3,546 | - | - | |||||||||
Redemption of short-term investments
|
- | 11,098 | - | |||||||||
Investment in short-term investments
|
- | (11,098 | ) | - | ||||||||
Net cash (used in) investing activities
|
(41,706 | ) | (45,377 | ) | (22,425 | ) | ||||||
FINANCING ACTIVITIES:
|
||||||||||||
Dividend payments
|
(2,615 | ) | (2,404 | ) | (2,277 | ) | ||||||
Net cash (used in) financing activities
|
(2,615 | ) | (2,404 | ) | (2,277 | ) | ||||||
Increase (decrease) in cash and cash equivalents
|
10,173 | 8,034 | 12,226 | |||||||||
Cash and cash equivalents at beginning of year
|
37,066 | 29,032 | 16,806 | |||||||||
Cash and cash equivalents at end of year
|
$ | 47,239 | $ | 37,066 | $ | 29,032 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Cash collateral deposits for commodity purchases
|
$ | 5,000 | $ | 6,521 | ||||
Insurance premiums
|
1,872 | 2,033 | ||||||
Commodity imbalances and futures
|
353 | 1,452 | ||||||
Rents, license and other
|
867 | 645 | ||||||
$ | 8,092 | $ | 10,651 |
Producing Properties
Subject to Fair
Value Impairment
|
||||||||
2012
|
2011
|
|||||||
Net book value at January 1
|
$ | 11,073 | $ | 8,704 | ||||
Property additions
|
13,083 | 16,465 | ||||||
Depletion taken
|
(6,371 | ) | (6,633 | ) | ||||
Impairment valuation loss
|
(4,699 | ) | (7,105 | ) | ||||
Net book at December 31
|
$ | 13,086 | $ | 11,431 |
December 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
South Texas Project acreage
|
$ | 3,263 | $ | 2,212 | ||||
West Texas Project
|
180 | 288 | ||||||
Napoleonville Louisiana acreage
|
323 | 320 | ||||||
Other acreage areas
|
329 | 475 | ||||||
Total Non-producing Leasehold Costs
|
$ | 4,095 | $ | 3,295 |
Leasehold
|
||||
Costs
|
||||
Balance December 31, 2011
|
$ | 475 | ||
Property additions
|
810 | |||
Property sale
|
(100 | ) | ||
Impairments
|
(856 | ) | ||
Balance December 31, 2012
|
$ | 329 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Insurance collateral deposits
|
$ | 3,413 | $ | 3,331 | ||||
State collateral deposits
|
170 | 168 | ||||||
Materials and supplies
|
616 | 668 | ||||||
$ | 4,199 | $ | 4,167 |
Balance Sheet Location and Amount
|
||||||||||||||||
Current
|
Other
|
Current
|
Other
|
|||||||||||||
Assets
|
Assets
|
Liabilities
|
Liabilities
|
|||||||||||||
Asset Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
$ | 688 | $ | - | $ | - | $ | - | ||||||||
Liability Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
- | - | 682 | - | ||||||||||||
Less Counterparty Offsets
|
(270 | ) | - | (270 | ) | - | ||||||||||
As Reported Fair Value Contracts
|
$ | 418 | $ | - | $ | 412 | $ | - |
Balance Sheet Location and Amount
|
||||||||||||||||
Current
|
Other
|
Current
|
Other
|
|||||||||||||
Assets
|
Assets
|
Liabilities
|
Liabilities
|
|||||||||||||
Asset Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
$ | 3,500 | $ | - | $ | - | $ | - | ||||||||
Liability Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
- | - | 2,117 | - | ||||||||||||
Less Counterparty Offsets
|
(1,436 | ) | - | (1,436 | ) | - | ||||||||||
As Reported Fair Value Contracts
|
$ | 2,064 | $ | - | $ | 681 | $ | - |
Gain (Loss)
|
||||||||||||
Location
|
2012
|
2011
|
2010
|
|||||||||
Revenues – marketing
|
$ | (1,377 | ) | $ | 97 | $ | 1,036 |
|
Level 1 – quoted prices in active markets for identical assets or liabilities that may be accessed at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. For Level 1 valuation of marketable securities, the Company utilizes market quotations provided by its primary financial institution and for the valuations of derivative financial instruments, the Company utilizes the New York Mercantile Exchange ‟NYMEX” for such valuations.
|
|
Level 2 – (a) quoted prices for similar assets or liabilities in active markets, (b) quoted prices for identical assets or liabilities but in markets that are not actively traded or in which little information is released to the public, (c) observable inputs other than quoted prices, and (d) inputs derived from observable market data. Source data for Level 2 inputs include information provided by the NYMEX, the Intercontinental Exchange ‟ICE”, published price data and indices, third party price survey data and broker provided forward price statistics.
|
|
Level 3 – Unobservable market data inputs for assets or liabilities.
|
Market Data Inputs
|
||||||||||||||||||||
Gross Level 1
|
Gross Level 2
|
Gross Level 3
|
Counterparty
|
|||||||||||||||||
Quoted Prices
|
Observable
|
Unobservable
|
Offsets
|
Total
|
||||||||||||||||
Derivatives
|
||||||||||||||||||||
- Current assets
|
$ | 299 | $ | 389 | $ | - | $ | (270 | ) | $ | 418 | |||||||||
- Current liabilities
|
- | (682 | ) | - | 270 | (412 | ) | |||||||||||||
Net Value
|
$ | 299 | $ | (293 | ) | $ | - | $ | - | $ | 6 |
Market Data Inputs
|
||||||||||||||||||||
Gross Level 1
|
Gross Level 2
|
Gross Level 3
|
Counterparty
|
|||||||||||||||||
Quoted Prices
|
Observable
|
Unobservable
|
Offsets
|
Total
|
||||||||||||||||
Derivatives
|
||||||||||||||||||||
- Current assets
|
$ | 1,455 | $ | 2,045 | $ | - | $ | (1,436 | ) | $ | 2,064 | |||||||||
- Current liabilities
|
(675 | ) | (1,442 | ) | - | 1,436 | (681 | ) | ||||||||||||
Net Value
|
$ | 780 | $ | 603 | $ | - | $ | - | $ | 1,383 |
Level 1
|
Level 2
|
|||||||||||
Quoted Prices
|
Observable
|
Total
|
||||||||||
Net Fair Value January 1,
|
$ | 780 | $ | 603 | $ | 1,383 | ||||||
- Net realized (gains) losses
|
(780 | ) | (603 | ) | (1,383 | ) | ||||||
- Net unrealized gains (losses)
|
299 | (293 | ) | 6 | ||||||||
Net Fair Value December 31,
|
$ | 299 | $ | (293 | ) | $ | 6 |
Level 1
|
Level 2
|
|||||||||||
Quoted Prices
|
Observable
|
Total
|
||||||||||
Net Fair Value January 1,
|
$ | (118 | ) | $ | 1,404 | $ | 1,286 | |||||
- Net realized (gains) losses
|
118 | (1,404 | ) | (1,286 | ) | |||||||
- Net unrealized gains (losses)
|
780 | 603 | 1,383 | |||||||||
Net Fair Value December 31,
|
$ | 780 | $ | 603 | $ | 1,383 |
2012
|
2011
|
|||||||
Balance on January 1,
|
$ | 1,568 | $ | 1,390 | ||||
-Liabilities incurred
|
358 | 164 | ||||||
-Accretion of discount
|
63 | 82 | ||||||
-Liabilities settled
|
(103 | ) | (68 | ) | ||||
-Revisions to estimates
|
- | - | ||||||
Balance on December 31,
|
$ | 1,886 | $ | 1,568 |
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
From continuing operations
|
$ | (16,697 | ) | $ | (13,107 | ) | $ | (4,028 | ) | |||
From discontinued operations
|
(139 | ) | 276 | (42 | ) | |||||||
$ | (16,836 | ) | $ | (12,831 | ) | $ | (4,070 | ) |
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Statutory federal income tax (provision) benefit
|
$ | (15,619 | ) | $ | (12,517 | ) | $ | (4,445 | ) | |||
State income tax (provision) benefit
|
(1,049 | ) | (707 | ) | (476 | ) | ||||||
Federal statutory depletion
|
36 | 393 | 534 | |||||||||
Foreign investment write-off
|
- | - | 201 | |||||||||
Other
|
(204 | ) | - | 116 | ||||||||
$ | (16,836 | ) | $ | (12,831 | ) | $ | (4,070 | ) |
Years Ended December 31,
|
||||||||
2012
|
2011
|
|||||||
Current deferred tax asset (liability)
|
||||||||
Allowance for doubtful accounts
|
$ | 581 | $ | 772 | ||||
Prepaid insurance
|
(815 | ) | (793 | ) | ||||
Fair value contracts
|
(6 | ) | (484 | ) | ||||
Net current deferred liability
|
(240 | ) | (505 | ) | ||||
Long-term deferred tax asset (liability)
|
||||||||
Property
|
(15,957 | ) | (10,579 | ) | ||||
Uniform capitalization
|
552 | 471 | ||||||
Other
|
(221 | ) | 160 | |||||
Net long-term deferred tax liability
|
(15,626 | ) | (9,948 | ) | ||||
Net deferred tax liability
|
$ | (15,866 | ) | $ | (10,453 | ) |
Earliest Open
|
|
Tax Year
|
|
Federal
|
2009
|
Texas
|
2008
|
Louisiana
|
2009
|
Michigan
|
2009
|
2012
|
2011
|
2010
|
||||||||||
Balance, beginning of year
|
$ | 357 | $ | 180 | $ | 347 | ||||||
Provisions for bad debts
|
- | 276 | 28 | |||||||||
Less: Write-offs and recoveries
|
(151 | ) | (99 | ) | (195 | ) | ||||||
Balance, end of year
|
$ | 206 | $ | 357 | $ | 180 |
2013
|
2014
|
2015
|
Thereafter
|
Total
|
||||||||||||||||
Equipment residual values
|
$ | 216 | $ | - | $ | - | $ | - | $ | 216 |
2013
|
2014
|
2015
|
2016
|
Thereafter
|
Total
|
|||||||||||||||||||
Lease payments
|
$ | 47 | $ | - | $ | - | - | - | 47 | |||||||||||||||
Equipment residual values
|
216 | - | - | - | - | 216 | ||||||||||||||||||
Commodity purchases
|
61,492 | - | - | - | - | 61,942 | ||||||||||||||||||
Letters of credit
|
21,996 | - | - | - | - | 21,996 | ||||||||||||||||||
$ | 84,201 | $ | - | $ | - | $ | - | $ | - | $ | 84,201 |
Segment Operating
|
Depreciation Depletion and
|
Property and Equipment
|
||||||||||||||
Revenues
|
Earnings (loss)
|
Amortization
|
Additions
|
|||||||||||||
Year ended December 31, 2012-
|
||||||||||||||||
Marketing
|
||||||||||||||||
- Crude oil
|
$ | 3,292,948 | $ | 46,145 | $ | 5,945 | $ | 12,391 | ||||||||
- Natural gas
|
4,879 | 1,021 | 31 | - | ||||||||||||
Marketing Total
|
3,297,827 | 47,166 | 5,976 | 12,391 | ||||||||||||
Transportation
|
67,183 | 10,253 | 5,921 | 15,538 | ||||||||||||
Oil and gas
|
15,954 | (3,601 | ) (1) | 8,817 | 23,083 | |||||||||||
$ | 3,380,964 | $ | 53,818 | $ | 20,714 | $ | 51,012 | |||||||||
Year ended December 31, 2011-
|
||||||||||||||||
Marketing
|
||||||||||||||||
- Crude oil
|
$ | 2,961,176 | $ | 49,237 | $ | 3,724 | $ | 13,554 | ||||||||
- Natural gas
|
6,251 | 2,147 | 3 | 64 | ||||||||||||
Marketing Total
|
2,967,427 | 51,384 | 3,727 | 13,618 | ||||||||||||
Transportation
|
63,501 | 8,521 | 3,912 | 14,118 | ||||||||||||
Oil and gas
|
14,060 | (13,871 | ) (1) | 8,246 | 24,580 | |||||||||||
$ | 3,044,988 | $ | 46,034 | $ | 15,885 | $ | 52,316 | |||||||||
Year ended December 31, 2010-
|
||||||||||||||||
Marketing
|
||||||||||||||||
- Crude oil
|
$ | 2,005,301 | $ | 13,530 | $ | 2,320 | $ | 6,051 | ||||||||
- Natural gas
|
10,592 | 3,073 | 44 | 115 | ||||||||||||
Marketing Total
|
2,015,893 | 16,603 | 2,364 | 6,166 | ||||||||||||
Transportation
|
56,867 | 6,623 | 4,288 | 4,410 | ||||||||||||
Oil and gas
|
11,021 | (1,757 | ) | 4,662 | 11,699 | |||||||||||
$ | 2,083,781 | $ | 21,469 | $ | 11,314 | $ | 22,275 |
|
__________________________________
|
(1)
|
Oil and gas
segment operating earnings include gains on property sales totaling $2,203,000 and $2,923,000 during 2012 and 2011, respectively.
|
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Segment operating earnings
|
$ | 53,818 | $ | 46,034 | $ | 21,469 | ||||||
- General and administrative expenses
|
(9,769 | ) | (9,713 | ) | (9,044 | ) | ||||||
Operating earnings
|
44,049 | 36,321 | 12,425 | |||||||||
- Interest income
|
190 | 237 | 191 | |||||||||
- Interest expense
|
(10 | ) | (8 | ) | (36 | ) | ||||||
Earnings from continuing operations before
|
||||||||||||
income taxes and discontinued operations
|
$ | 44,229 | $ | 36,550 | $ | 12,580 |
Earnings from
|
|
|||||||||||||||||||||||||||||
Continuing Operations
|
Net Earnings
|
Dividends
|
||||||||||||||||||||||||||||
Revenues
|
Amount
|
Per Share
|
Amount
|
Per Share
|
Amount
|
Per Share
|
||||||||||||||||||||||||
2012 - | ||||||||||||||||||||||||||||||
March 31
|
$ | 877,489 | $ | 6,050 | $ | 1.43 | $ | 6,575 | $ | 1.56 | $ | - | $ | - | ||||||||||||||||
June 30
|
831,474 | 5,497 | 1.31 | 5,386 | 1.28 | - | - | |||||||||||||||||||||||
September 30
|
795,525 | 8,337 | 1.98 | 8,263 | 1.96 | - | - | |||||||||||||||||||||||
December 31
|
876,476 | 7,648 | 1.81 | 7,567 | 1.79 | 2,615 | .62 | |||||||||||||||||||||||
Total
|
$ | 3,380,964 | $ | 27,532 | $ | 6.53 | $ | 27,791 | $ | 6.59 | $ | 2,615 | $ | .62 | ||||||||||||||||
2011 - | ||||||||||||||||||||||||||||||
March 31
|
$ | 663,846 | $ | 5,778 | $ | 1.37 | $ | 5,583 | $ | 1.32 | $ | - | $ | - | ||||||||||||||||
June 30
|
777,538 | 3,355 | .79 | 3,589 | .85 | - | - | |||||||||||||||||||||||
September 30
|
755,995 | 9,266 | 2.20 | 9,026 | 2.14 | - | - | |||||||||||||||||||||||
December 31
|
847,609 | 5,044 | 1.19 | 4,733 | 1.13 | 2,404 | .57 | |||||||||||||||||||||||
Total
|
$ | 3,044,988 | $ | 23,443 | $ | 5.55 | $ | 22,931 | $ | 5.44 | $ | 2,404 | $ | .57 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Property acquisition costs
|
||||||||||||
Unproved
|
$ | 1,965 | $ | 3,591 | $ | 2,295 | ||||||
Proved
|
- | - | - | |||||||||
Exploration costs
|
||||||||||||
Expensed
|
1,151 | 9,166 | 3,233 | |||||||||
Capitalized
|
- | - | - | |||||||||
Development costs
|
20,219 | 12,133 | 6,233 | |||||||||
Total costs incurred
|
$ | 23,335 | $ | 24,890 | $ | 11,761 |
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Unproved oil and gas properties
|
$ | 8,349 | $ | 7,291 | ||||
Proved oil and gas properties
|
82,083 | 74,376 | ||||||
90,432 | 81,667 | |||||||
Accumulated depreciation, depletion
|
||||||||
and amortization
|
(57,833 | ) | (55,061 | ) | ||||
Net capitalized cost
|
$ | 32,599 | $ | 26,606 |
Years Ended December 31,
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Natural
|
Natural
|
Natural
|
||||||||||||||||||||||
Gas
|
Oil
|
Gas
|
Oil
|
Gas
|
Oil
|
|||||||||||||||||||
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls
.)
|
|||||||||||||||||||
Total proved reserves-
|
||||||||||||||||||||||||
Beginning of year
|
9,661 | 292 | 7,794 | 267 | 7,248 | 242 | ||||||||||||||||||
Revisions of previous estimates
|
(507 | ) | 29 | (520 | ) | (24 | ) | (832 | ) | - | ||||||||||||||
Oil and gas reserves sold
|
(104 | ) | (54 | ) | (2,148 | ) | (26 | ) | - | - | ||||||||||||||
Extensions, discoveries and
|
||||||||||||||||||||||||
other reserve additions
|
2,395 | 138 | 6,430 | 137 | 2,743 | 79 | ||||||||||||||||||
Production
|
(2,608 | ) | (98 | ) | (1,895 | ) | (62 | ) | (1,365 | ) | (54 | ) | ||||||||||||
End of year
|
8,837 | 307 | 9,661 | 292 | 7,794 | 267 |
Years Ended December 31,
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Natural
|
Natural
|
Natural
|
||||||||||||||||||||||
Gas
|
Oil
|
Gas
|
Oil
|
Gas
|
Oil
|
|||||||||||||||||||
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls
.)
|
|||||||||||||||||||
Proved developed reserves
|
8,708 | 306 | 9,433 | 277 | 7,134 | 240 | ||||||||||||||||||
Proved undeveloped reserves
|
129 | 1 | 228 | 15 | 660 | 27 | ||||||||||||||||||
Total proved reserves
|
8,837 | 307 | 9,661 | 292 | 7,794 | 267 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Future gross revenues
|
$ | 59,793 | $ | 73,626 | $ | 61,311 | ||||||
Future costs -
|
||||||||||||
Lease operating expenses
|
(16,357 | ) | (19,788 | ) | (17,288 | ) | ||||||
Development costs
|
(299 | ) | (2,198 | ) | (1,596 | ) | ||||||
Future net cash flows before income taxes
|
43,137 | 51,640 | 42,427 | |||||||||
Discount at 10% per annum
|
(17,976 | ) | (19,439 | ) | (16,777 | ) | ||||||
Discounted future net cash flows
|
||||||||||||
before income taxes
|
25,161 | 32,201 | 25,650 | |||||||||
Future income taxes, net of discount at
|
||||||||||||
10% per annum
|
(8,806 | ) | (11,270 | ) | (8,978 | ) | ||||||
Standardized measure of discounted
|
||||||||||||
future net cash flows
|
$ | 16,355 | $ | 20,931 | $ | 16,672 |
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Future net cash flows before income taxes
|
$ | 43,137 | $ | 51,640 | $ | 42,427 | ||||||
Future income taxes
|
(15,098 | ) | (18,074 | ) | (14,849 | ) | ||||||
Future net cash flows
|
28,039 | 33,566 | 27,578 | |||||||||
Discount at 10% per annum
|
(11,684 | ) | (12,635 | ) | (10,906 | ) | ||||||
Standardized measure of discounted
|
||||||||||||
future net cash flows
|
$ | 16,355 | $ | 20,931 | $ | 16,672 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Beginning of year
|
$ | 20,931 | $ | 16,672 | $ | 9,305 | ||||||
Sale of oil and gas reserves
|
(3,802 | ) | (7,429 | ) | - | |||||||
Net change in prices and production costs
|
(5,313 | ) | 791 | 9,435 | ||||||||
New field discoveries and extensions, net of future
|
||||||||||||
production costs
|
9,513 | 18,769 | 9,068 | |||||||||
Sales of oil and gas produced, net of production costs
|
(8,953 | ) | (7,723 | ) | (7,084 | ) | ||||||
Net change due to revisions in quantity estimates
|
(940 | ) | (1,739 | ) | (1,369 | ) | ||||||
Accretion of discount
|
1,944 | 1,678 | 1,072 | |||||||||
Production rate changes and other
|
511 | 2,204 | 213 | |||||||||
Net change in income taxes
|
2,464 | (2,292 | ) | (3,968 | ) | |||||||
End of year
|
$ | 16,355 | $ | 20,931 | $ | 16,672 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Revenues
|
$ | 15,954 | $ | 14,060 | $ | 11,021 | ||||||
Costs and expenses -
|
||||||||||||
Production
|
(7,091 | ) | (6,337 | ) | (3,937 | ) | ||||||
Producing property impairment
|
(4,699 | ) | (7,105 | ) | (946 | ) | ||||||
Exploration
|
(1,151 | ) | (9,166 | ) | (3,233 | ) | ||||||
Oil and natural gas property sale gain
|
2,203 | 2,923 | - | |||||||||
Depreciation, depletion and amortization
|
(8,817 | ) | (8,246 | ) | (4,662 | ) | ||||||
Operating income (loss) before income taxes
|
(3,601 | ) | (13,871 | ) | (1,757 | ) | ||||||
Income tax (expense) benefit
|
1,060 | 4,854 | 615 | |||||||||
Operating income (loss)
|
$ | (2,541 | ) | $ | (9,017 | ) | $ | (1,142 | ) |
Item 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
Item 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
Item 11.
|
EXECUTIVE COMPENSATION
|
Item 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Item 13.
|
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
Item 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
Item 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
2.
|
All financial schedules have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.
|
3.
|
Exhibits required to be filed
|
3(a)
|
-
|
Certificate of Incorporation of the Company, as amended. (Incorporated by reference to Exhibit 3(a) filed with the Annual Report on Form 10-K (-File No. 1-7908) of the Company for the fiscal year ended December 31, 1987).
|
3(b)*
|
-
|
Bylaws of the Company, as amended.
|
3(c)
|
-
|
Adams Resources & Energy, Inc. and Subsidiaries’ Code of Ethics (Incorporated by reference to Exhibit 3(d) of the Annual Report on Form 10-K (-File No. 1-7908) of the Company for the fiscal year ended December 31, 2002).
|
4(a)
|
-
|
Specimen common stock Certificate (Incorporated by reference to Exhibit 4(a) of the Annual Report on Form 10-K of the Company (-File No. 1-7908) for the fiscal year ended December 31, 1991).
|
4(b)
|
-
|
Credit and Security Agreement between Gulfmark Energy, Inc., Adams Resources Marketing, Ltd., and Wells Fargo Bank, National Association dated August 27, 2009 (Incorporated by reference to Exhibit 4(b) of the Quarterly Report on Form 10-Q for the period ended September 30, 2009).
|
10.1(a)+
|
- Employment agreement of Frank T. Webster, President, dated May 12, 2004 by and between Adams Resources & Energy, Inc. and Frank T. Webster (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2004).
|
10.1(b)+
|
- Tenth Amendment to Employment Agreement of Frank T. Webster, President, by and between Adams Resources & Energy, Inc. and Frank T. Webster effective September 22, 2012 (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on September 24, 2012).
|
10.1(c)+
|
- Change in Control/Severance agreement by and between Adams Resources & Energy, Inc. and Richard B. Abshire effective July 25, 2008 (Incorporated by reference to Exhibit 10.1 to the Company’s current report on Form 8-K filed on July 25, 2008).
|
10.1(d)+
|
- First Amendment to Change in Control/Severance agreement by and between Adams Resources & Energy, Inc. and Richard B. Abshire effective December 6, 2011 (Incorporated by reference to Exhibit 10.2 to the Company’s current report on Form 8-K filed on December 7, 2011).
|
10.1(e)+
|
- Amendment to Change in Control/Severance agreement by and between Adams Resources & Energy, Inc. and Sharon Davis effective December 6, 2011 (Incorporated by reference to Exhibit 10.3 to the Company’s current report on Form 8-K filed on December 7, 2011).
|
10.1(f)+
|
- Amendment to Employment Agreement of Frank T. Webster, President, dated December 6, 2010 by and between Adams Resources & Energy, Inc. and Frank T. Webster (Incorporated by reference to Exhibit 10.1(b) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010).
|
10.1(g)+
|
- Non-Employee Director Change in Control Agreement by and between Adams Resources & Energy, Inc. and E. C. Reinauer, Jr., dated effective December 6, 2011 (Incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K filed on December 7, 2011).
|
10.1(h)+
|
- Non-Employee Director Change in Control Agreement by and between Adams Resources & Energy, Inc. and Townes G. Pressler, dated effective December 6, 2011 (Incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K filed on December 7, 2011).
|
10.1(i)+
|
- Non-Employee Director Change in Control Agreement by and between Adams Resources & Energy, Inc. and Larry E. Bell, dated effective December 6, 2011 (Incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K filed on December 7, 2011).
|
10.1(j)+
|
- Standard form Indemnification Agreement between Adams Resources & Energy, Inc. and Officers or Directors (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly - Report on Form 10-Q for the period ended September 30, 2011).
|
21*
|
-
|
Subsidiaries of the Registrant
|
23.1*
|
-
|
Consent of Ryder Scott Company
|
31.1*
|
-
|
Adams Resources & Energy, Inc. Certification Pursuant to 17 CFR 13a-14 (a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2*
|
-
|
Adams Resources & Energy, Inc. Certification Pursuant to 17 CFR 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1*
|
-
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2*
|
-
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
99.1*
|
-
|
Ryder Scott Company Report
|
|
______________________________
|
|
* - Filed herewith
|
ADAMS RESOURCES & ENERGY, INC.
|
|
(Registrant)
|
|
By
/s/Richard B. Abshire
|
By
/s/ Frank T. Webster
|
Richard B. Abshire,
|
Frank T. Webster
|
Vice President and Chief Financial Officer
|
Chief Executive Officer
|
(Principal Financial Officer and Principal Accounting Officer)
|
(PPrincipal Executive Officer)
|
By
/s/ Frank T. Webster
|
By
/s/ E. C. Reinauer, Jr.
|
Frank T. Webster, Director
|
E. C. Reinauer, Jr., Director
|
By
/s/ Larry E. Bell
|
By
/s/ Townes G. Pressler
|
Larry E. Bell, Director
|
Townes G. Pressler, Director
|
By
/s/ K. S. Adams, Jr.
|
|
K. S. Adams, Jr., Director
|
|
(Chairman)
|
|
99.1*
|
- Ryder Scott Company Report
|
101.INS*
|
- XBRL Instance Document
|
101.SCH*
|
- XBRL Schema Document
|
101.CAL*
|
- XBRL Calculation Linkbase Document
|
101.LAB*
|
- XBRL Label Linkbase Document
|
101.PRE*
|
- XBRL Presentation Linkbase Document
|
|
______________________________
|
|
* - Filed herewith
|
|
THE CHAIRMAN OF THE BOARD AND THE CHIEF EXECUTIVE OFFICER
|
Section 6
.
|
Either the chairman of the board, or the president, as the board of directors may designate shall be the chief executive officer of the corporation. The chairman of the board shall preside at all meetings of the stockholders and the board of directors. The chief executive officer shall have general and active management of the business of the corporation, shall see that all orders and resolutions of the board of directors are carried into effect, and shall execute bonds, mortgages and other contracts requiring a seal under the seal of the corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the board of directors, to some other officer or agent of the corporation.
|
Subsidiary
|
Place of Incorporation
|
Adams Resources Exploration Corporation
|
Delaware
|
Kirbyville Marketing Co., Inc.
|
Texas
|
Service Transport Company
|
Texas
|
Bayou City Pipelines, Inc.
|
Texas
|
Ada Crude Oil Company
|
Texas
|
Ada Mining Corporation
|
Texas
|
Classic Coal Corporation
|
Delaware
|
Plastics Universal Corporation
|
Kentucky
|
CJC Leasing, Inc.
|
Kentucky
|
Buckley Mining Corporation
|
Kentucky
|
Gulfmark Energy, Inc.
|
Texas
|
Ada Resources, Inc.
|
Texas
|
Adams Resources Marketing, Ltd.
|
Texas
|
Adams Resources Marketing GP, Inc.
|
Texas
|
Adams Resources Marketing II, Inc.
|
Nevada
|
Gulfmark Energy Marketing, Inc.
|
Nevada
|
1.
|
I have reviewed this annual report on Form 10-K of Adams Resources & Energy, Inc. (the ‟registrant”);
|
2.
|
Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in exchange act rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
|
(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this annual report on Form 10-K of Adams Resources & Energy, Inc. (the ‟registrant”);
|
2.
|
Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in exchange act rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
|
(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) evaluated the effectiveness of the registrant’s disclosure and procedures controls and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) of 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Fred W. Ziehe, P.E.
|
TBPE License No. 63630
|
Managing Senior Vice President
|
As of December 31, 2012
|
Proved
|
||||||||||||||||
Developed
|
Total
|
|||||||||||||||
Producing
|
Non-Producing
|
Undeveloped
|
Proved
|
|||||||||||||
Net Remaining Reserves
|
||||||||||||||||
Oil/Condensate – Mbls
|
270.0 | 36.0 | 0.6 | 306.6 | ||||||||||||
Gas – MMCF
|
8,062.0 | 646.0 | 129.0 | 8,837.0 | ||||||||||||
MBOE
|
1,613.7 | 143.6 | 22.1 | 1,779.4 | ||||||||||||
Income Data – M$
|
||||||||||||||||
Future Gross Revenue
|
$ | 49,344.5 | $ | 6,683.0 | $ | 408.4 | $ | 56,435.9 | ||||||||
Deductions
|
12,555.0 | 604.5 | 139.2 | 13,298.7 | ||||||||||||
Future Net Income (FNI)
|
$ | 36,789.5 | $ | 6,078.5 | $ | 269.2 | $ | 43,137.2 | ||||||||
Discounted FNI @ 10%
|
$ | 23,020.2 | $ | 1,969.9 | $ | 171.5 | $ | 25,161.6 |
Discounted Future Net Income –M$
|
||||
As of December 31, 2012
|
||||
Discount Rate
|
Total
|
|||
Percent
|
Proved
|
|||
5.0
|
$31,029.2
|
|||
15.0
|
$21,591.6
|
|||
20.0
|
$19,147.1
|
|||
25.0
|
$17,348.9
|
Geographic Area
|
Product
|
Price
Reference
|
Average
Benchmark Prices
|
Average
Realized Prices
|
Total U.S. Domestic
|
Oil/Condensate
|
Various
1
|
$89.160 / Bbl
|
$ 93.85 / Bbl
|
Gas
|
Various
2
|
$ 2.643 / MMBTU
|
$ 3.51 / MCF
|
(1)
|
completion intervals which are open at the time of the estimate, but which have not started producing;
|
(2)
|
wells which were shut-in for market conditions or pipeline connections; or
|
(3)
|
wells not capable of production for mechanical reasons.
|
(i)
|
Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
|