X |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
______ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
74-1753147
|
17 South Briar Hollow Lane Suite 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
|
|
Permian Basin
|
178
|
3.15
|
55
|
1.09
|
233
|
4.24
|
Haynesville Shale
|
-
|
-
|
92
|
2.46
|
92
|
2.46
|
Other
|
95
|
2.20
|
50
|
4.60
|
145
|
6.80
|
273
|
5.35
|
197
|
8.15
|
470
|
13.50
|
2016
|
2015
|
2014
|
||||
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
|
Exploratory wells drilled
|
||||||
- Productive
|
-
|
-
|
-
|
-
|
-
|
-
|
- Dry
|
-
|
-
|
1
|
.10
|
4
|
.40
|
Development wells drilled
|
||||||
- Productive
|
7
|
.13
|
13
|
.16
|
46
|
.83
|
- Dry
|
-
|
-
|
-
|
-
|
3
|
.43
|
7
|
.13
|
14
|
.26
|
53
|
1.66
|
As of December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Crude oil (thousands of barrels)
|
187
|
226
|
318
|
|||||||||
Natural gas (thousands of mcf)
|
4,214
|
4,835
|
5,611
|
|||||||||
Future net cash flows before income taxes
|
$
|
5,479
|
$
|
8,413
|
$
|
41,396
|
||||||
Standardized measure of oil and gas reserves
|
$
|
2,260
|
$
|
3,527
|
$
|
15,744
|
2016
|
2015
|
2014
|
||||||||||
Assumed market price
|
||||||||||||
Crude oil per barrel
|
$
|
38.34
|
$
|
45.83
|
$
|
89.60
|
||||||
Natural gas per thousand cubic feet (mcf)
|
$
|
2.56
|
$
|
2.62
|
$
|
5.42
|
Years Ended
|
Crude Oil
|
Natural
|
Crude Oil Equivalent
|
December 31,
|
(barrels)
|
Gas (mcf)
|
Per day (barrels)
|
2016
|
76,700
|
662,000
|
511
|
2015
|
99,500
|
889,000
|
678
|
2014
|
127,300
|
1,133,000
|
865
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Average oil and condensate
|
||||||||||||
sales price per barrel
(1)
|
$
|
24.95
|
$
|
28.94
|
$
|
63.64
|
||||||
Average natural gas
|
||||||||||||
sales price per mcf
|
$
|
2.26
|
$
|
2.46
|
$
|
4.65
|
||||||
Average production cost, per equivalent
|
||||||||||||
barrel, charged to expense
|
$
|
18.70
|
$
|
24.64
|
$
|
21.42
|
-
|
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 favorable economics due to price volatility
|
·
|
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 STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
|
American Stock Exchange
|
||||||||
High
|
Low
|
|||||||
2016
|
||||||||
First Quarter
|
$
|
43.00
|
$
|
30.00
|
||||
Second Quarter
|
44.27
|
35.25
|
||||||
Third Quarter
|
39.47
|
29.64
|
||||||
Fourth Quarter
|
44.00
|
35.17
|
||||||
2015
|
||||||||
First Quarter
|
$
|
73.28
|
$
|
47.31
|
||||
Second Quarter
|
70.00
|
39.00
|
||||||
Third Quarter
|
48.60
|
38.88
|
||||||
Fourth Quarter
|
46.86
|
33.55
|
1.
|
$100.00 was invested on December 31, 2011 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.
|
|
12/11
|
12/12
|
12/13
|
12/14
|
12/15
|
12/16
|
Adams Resources & Energy, Inc.
|
100.00
|
122.77
|
242.41
|
179.43
|
140.52
|
148.54
|
S&P 500
|
100.00
|
116.00
|
153.58
|
174.60
|
177.01
|
198.18
|
S&P Integrated Oil & Gas
|
100.00
|
102.21
|
124.21
|
115.85
|
99.80
|
123.89
|
SELECTED FINANCIAL DATA
|
||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
(In thousands, except per share data)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Marketing
|
$
|
1,043,775
|
$
|
1,875,885
|
$
|
4,050,497
|
$
|
3,863,057
|
$
|
3,292,948
|
||||||||||
Transportation
|
52,355
|
63,331
|
68,968
|
68,783
|
67,183
|
|||||||||||||||
Oil and natural gas
|
3,410
|
5,063
|
13,361
|
14,129
|
15,954
|
|||||||||||||||
$
|
1,099,540
|
$
|
1,944,279
|
$
|
4,132,826
|
$
|
3,945,969
|
$
|
3,376,085
|
|||||||||||
Operating earnings (loss):
|
||||||||||||||||||||
Marketing
|
$
|
17,045
|
$
|
22,895
|
$
|
20,854
|
$
|
40,369
|
$
|
46,145
|
||||||||||
Transportation
|
(48
|
)
|
3,701
|
4,750
|
5,180
|
10,253
|
||||||||||||||
Oil and natural gas operations
|
(220
|
)
|
(6,934
|
)
|
(2,029
|
)
|
518
|
(1,136
|
)
|
|||||||||||
Oil and natural gas property impairments
|
(313
|
)
|
(12,082
|
)
|
(8,009
|
)
|
(2,631
|
)
|
(4,699
|
)
|
||||||||||
Oil and natural gas property sale
(1)
|
-
|
-
|
2,528
|
-
|
2,203
|
|||||||||||||||
General and administrative
|
(10,410
|
)
|
(9,939
|
)
|
(8,613
|
)
|
(9,060
|
)
|
(8,810
|
)
|
||||||||||
6,054
|
(2,359
|
)
|
9,481
|
34,376
|
43,956
|
|||||||||||||||
Other income (expense):
|
||||||||||||||||||||
Interest income
|
582
|
327
|
301
|
198
|
190
|
|||||||||||||||
Interest expense
|
(2
|
)
|
(13
|
)
|
(2
|
)
|
(24
|
)
|
(10
|
)
|
||||||||||
Earnings (loss) from continuing operations
|
||||||||||||||||||||
before income taxes and equity investment
|
6,634
|
(2,045
|
)
|
9,780
|
34,550
|
44,136
|
||||||||||||||
Income tax (provision) benefit
|
(2,691
|
)
|
770
|
(3,561
|
)
|
(12,429
|
)
|
(16,664
|
)
|
|||||||||||
Earnings (loss) before equity investment
|
||||||||||||||||||||
and discontinued operations
|
3,943
|
(1,275
|
)
|
6,219
|
22,121
|
27,472
|
||||||||||||||
Earnings (loss) from discontinued
|
||||||||||||||||||||
operations, net of taxes
|
-
|
-
|
304
|
(511
|
)
|
319
|
||||||||||||||
Earnings (loss) from equity
|
||||||||||||||||||||
investments, net of taxes
|
(1,430
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||
Net earnings (loss)
|
$
|
2,513
|
$
|
(1,275
|
)
|
$
|
6,523
|
$
|
21,610
|
$
|
27,791
|
|||||||||
Earnings (Loss) Per Share
|
||||||||||||||||||||
From continuing operations
|
$
|
.94
|
$
|
(.30
|
)
|
$
|
1.48
|
$
|
5.24
|
$
|
6.51
|
|||||||||
From discontinued operations
|
-
|
-
|
.07
|
(.12
|
)
|
.08
|
||||||||||||||
From equity investments
|
(.34
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||
Basic and diluted earnings per share
|
$
|
.60
|
$
|
(.30
|
)
|
$
|
1.55
|
$
|
5.12
|
$
|
6.59
|
|||||||||
Dividends per common share
|
.88
|
.88
|
$
|
.88
|
$
|
.66
|
$
|
.62
|
||||||||||||
Financial Position
|
||||||||||||||||||||
Cash
|
$
|
87,342
|
$
|
91,877
|
$
|
80,184
|
$
|
60,733
|
$
|
47,239
|
||||||||||
Net working capital
|
106,444
|
96,340
|
82,342
|
79,561
|
58,474
|
|||||||||||||||
Total assets
|
246,872
|
243,215
|
340,814
|
448,082
|
419,501
|
|||||||||||||||
Long-term debt
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Shareholders’ equity
|
151,312
|
152,510
|
157,497
|
154,685
|
135,858
|
|||||||||||||||
Dividends on common shares
|
3,711
|
3,712
|
3,711
|
2,783
|
2,615
|
(1)
|
In 2014 and 2012, certain oil and natural gas producing properties were sold for $4.1 million and $3.6 million, producing net gains of $2.5 million and $2.2 million, respectively.
|
2016
|
2015
|
2014
|
||||||||||
Revenues
|
$
|
1,043,775
|
$
|
1,875,885
|
$
|
4,050,497
|
||||||
Operating earnings
|
$
|
17,045
|
$
|
22,895
|
$
|
20,854
|
||||||
Depreciation
|
$
|
9,997
|
$
|
11,097
|
$
|
9,626
|
||||||
Driver commissions
|
$
|
14,933
|
$
|
22,262
|
$
|
21,744
|
||||||
Insurance
|
$
|
7,442
|
$
|
8,732
|
$
|
7,446
|
||||||
Fuel
|
$
|
5,397
|
$
|
9,928
|
$
|
14,851
|
2016
|
2015
|
2014
|
||||||||||
Field Level Purchases per day
(1)
|
||||||||||||
Crude Oil – barrels
|
72,900
|
106,400
|
117,100
|
|||||||||
Average Purchase Price
|
||||||||||||
Crude Oil – per barrel
|
$
|
39.30
|
$
|
45.41
|
$
|
89.40
|
-
|
Field Level Operating Earnings (Non GAAP Measure)
|
2016
|
2015
|
2014
|
||||||||||
As reported segment operating earnings
|
$
|
17,045
|
$
|
22,895
|
$
|
20,854
|
||||||
Add (less) -
|
||||||||||||
Inventory liquidation (gains)
|
(8,243
|
)
|
-
|
-
|
||||||||
Inventory valuation losses
|
-
|
5,357
|
14,247
|
|||||||||
Derivative valuation (gains) losses
|
(243
|
)
|
188
|
(312
|
)
|
|||||||
Field level operating earnings
(1)
|
$
|
8,559
|
$
|
28,440
|
$
|
34,789
|
(1)
|
Such designation is unique to the Company and is not comparable to similar measures developed by industry participants. The Company utilizes such data to evaluate the profitability of its operations.
|
As of December 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Barrels
|
Price
|
Barrels
|
Price
|
|||||||||||||
Crude oil inventory
|
255,146
|
$
|
51.22
|
261,718
|
$
|
29.31
|
||||||||||
2016
|
2015
|
2014
|
||||||||||||||||||||||
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
|||||||||||||||||||
Revenues
|
$
|
52,355
|
(17.3
|
)%
|
$
|
63,331
|
(8.2
|
)%
|
$
|
68,968
|
.3
|
%
|
||||||||||||
Operating earnings (loss)
|
$
|
(48
|
)
|
(101.3
|
)%
|
$
|
3,701
|
(22.1
|
)%
|
$
|
4,750
|
(8.3
|
)%
|
|||||||||||
Depreciation
|
$
|
7,249
|
(4.0
|
)%
|
$
|
7,554
|
1.9
|
%
|
$
|
7,416
|
4.5
|
%
|
||||||||||||
Driver commissions
|
$
|
11,227
|
(15.4
|
)%
|
$
|
13,265
|
(1.2
|
)%
|
$
|
13,428
|
2.1
|
%
|
||||||||||||
Insurance
|
$
|
4,952
|
9.0
|
%
|
$
|
4,543
|
(18.5
|
)%
|
$
|
5,574
|
(6.1
|
)%
|
||||||||||||
Diesel fuel
|
$
|
5,688
|
(30.1
|
)%
|
$
|
8,134
|
(39.7
|
)%
|
$
|
13,487
|
(9.0
|
)%
|
||||||||||||
Maintenance Expense
|
$
|
5,410
|
(15.0
|
)%
|
$
|
6,365
|
3.6
|
%
|
$
|
6,143
|
12.4
|
%
|
||||||||||||
Mileage (000s)
|
22,611
|
(10.3
|
)%
|
25,205
|
(4.2
|
)%
|
26,314
|
(3.4
|
)%
|
(1) |
Represents the percentage increase (decrease) from the prior year.
|
2016
|
2015
|
2014
|
||||||||||
Total transportation revenue
|
$
|
52,355
|
$
|
63,331
|
$
|
68,968
|
||||||
Diesel fuel cost
|
(5,688
|
)
|
(8,134
|
)
|
(13,487
|
)
|
||||||
Revenues net of fuel
(1)
|
$
|
46,667
|
$
|
55,197
|
$
|
55,481
|
(1) |
Revenues net of fuel is a non-GAAP measure and utilized for internal analysis.
|
2016
|
2015
|
2014
|
|
New truck-tractors purchased
|
30 units
|
60 units
|
40 units
|
Truck-tractors retired
|
-
|
-
|
40 units
|
New trailers purchased
|
54 units
|
12 units
|
30 units
|
Trailers retired
|
50 units
|
-
|
-
|
- |
Oil and Gas
|
2016
|
2015
|
2014
|
||||||||||||||||||||||
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
Amount
|
Change
(1)
|
|||||||||||||||||||
Revenues
|
$
|
3,410
|
(32.6
|
)%
|
$
|
5,063
|
(62.1
|
)%
|
$
|
13,361
|
(5.4
|
)%
|
||||||||||||
Operating earnings (loss)
(2)
|
(533
|
)
|
(97.2
|
)%
|
(19,016
|
)
|
153.2
|
%
|
(7,510
|
)
|
255.4
|
%
|
||||||||||||
Depreciation and depletion
|
1,546
|
(69.5
|
)%
|
5,066
|
(33.1
|
)%
|
7,573
|
1.1
|
%
|
|||||||||||||||
Dry hole expense
|
-
|
(100.0
|
)%
|
817
|
(21.0
|
)%
|
1,034
|
343.8
|
%
|
|||||||||||||||
Prospect impairments
|
283
|
(83.9
|
)%
|
1,758
|
(56.1
|
)%
|
4,008
|
218.9
|
%
|
|||||||||||||||
Producing property impairments
|
30
|
(99.7
|
)%
|
10,324
|
158.0
|
%
|
4,001
|
191.4
|
%
|
(1)
|
Represents the percentage increase (decrease) from the prior year.
|
(2)
|
Includes gains from property sales of $2.5 million in 2014.
|
2016
|
2015
|
2014
|
|||||||||||||
Production Volumes
|
|||||||||||||||
- Crude oil
|
34,200
|
Bbls
|
50,000
|
Bbls
|
79,100
|
Bbls
|
|||||||||
- Natural gas
|
662,000
|
Mcf
|
889,000
|
Mcf
|
1,133,000
|
Mcf
|
|||||||||
- Natural gas liquids
|
42,500
|
Bbls
|
42,100
|
Bbls
|
45,900
|
Bbls
|
|||||||||
Average Price
|
|||||||||||||||
- Crude oil
|
$
|
38.07
|
Bbls
|
$
|
46.51
|
Bbl
|
$
|
88.42
|
Bbl
|
||||||
- Natural gas
|
$
|
2.26
|
Mcf
|
$
|
2.46
|
Mcf
|
$
|
4.65
|
Mcf
|
||||||
- Natural gas liquids
|
$
|
14.39
|
Bbls
|
$
|
12.70
|
Bbl
|
$
|
28.83
|
Bbl
|
As of
|
||||
December 31, 2016
|
||||
Future net income before taxes
|
||||
-
Estimate for the year 2017
|
$
|
937
|
||
-
Estimate for the year 2018
|
707
|
|||
-
Estimate for the year 2019
|
619
|
|||
-
Estimate for the year 2020
|
502
|
|||
-
Estimate for the year 2021
|
429
|
|||
Thereafter
|
2,285
|
|||
Total future net income before taxes
|
$
|
5,479
|
As of
|
||||
December 31, 2016
|
||||
Net capitalized cost of oil and gas properties
|
$
|
6,358
|
- |
Oil and gas property sales
|
- |
General and administrative expense and income tax
|
- |
Discontinued operations
|
2016
|
2015
|
2014
|
||||||||||
Net cash provided by operating activities
|
$
|
6,944
|
$
|
25,477
|
$
|
47,133
|
As of December 31,
|
||||||||
2016
|
2015
|
|||||||
Cash
|
$
|
87,342
|
$
|
91,877
|
||||
Working capital
|
$
|
106,444
|
$
|
96,340
|
As of December 31,
|
||||||||
2016
|
2015
|
|||||||
Early payments received
|
$
|
15,032
|
$
|
16,770
|
||||
Cash collateral received
|
$
|
-
|
$
|
840
|
||||
Prepayments to suppliers
|
$
|
-
|
$
|
167
|
||||
Early payments to suppliers
|
$
|
14,382
|
$
|
11,645
|
||||
Letters of credit outstanding
|
$
|
-
|
$
|
1,000
|
- |
Capital projects
|
2012
|
2013
|
2014
|
2015
|
2016
|
||||||||||||||||
Crude oil marketing
|
$
|
12,391
|
$
|
11,343
|
$
|
13,598
|
$
|
2,126
|
$
|
1,321
|
||||||||||
Truck transportation
|
15,538
|
3,165
|
8,994
|
6,579
|
6,868
|
|||||||||||||||
Oil and gas exploration
|
23,083
|
13,094
|
7,931
|
2,369
|
295
|
|||||||||||||||
Medical management
|
-
|
-
|
-
|
-
|
4,700
|
|||||||||||||||
$
|
51,012
|
$
|
27,602
|
$
|
30,523
|
$
|
11,074
|
$
|
13,184
|
Year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Rental expense
|
$
|
11,314
|
$
|
11,168
|
$
|
9,755
|
2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
Total
|
||||||||||||||||||||
$
|
4,768
|
$
|
2,018
|
$
|
365
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
7,155
|
January
|
Remaining
|
|||||||||||||||||||||
2017
|
2017
|
2018
|
2019
|
Thereafter
|
Total
|
|||||||||||||||||
$
|
89,408
|
$
|
330
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
89,738
|
2016
|
2015
|
2014
|
||||||||||
Insurance costs
|
$
|
13,330
|
$
|
15,570
|
$
|
14,800
|
-
|
Marketing—manage declining supply volumes and unit margins to maximize cash flow, while looking to expand into new regions.
|
-
|
Transportation—increase truck utilization, enhance diversification strategies and improve cost efficiencies.
|
-
|
Strategic business development – deploy a disciplined investment approach to growing existing core areas and funding new growth opportunities.
|
-
|
Oil and gas— continue to de-emphasize this business unit while preserving the resource value of our oil and gas properties.
|
Page
|
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
31
|
FINANCIAL STATEMENTS:
|
|
Consolidated Balance Sheets as of December 31, 2016 and 2015
|
32
|
Consolidated Statements of Operations for the Years Ended
|
|
December 31, 2016, 2015 and 2014
|
33
|
Consolidated Statements of Shareholders’ Equity for the Years Ended
|
|
December 31, 2016, 2015 and 2014
|
34
|
Consolidated Statements of Cash Flows for the Years Ended
|
|
December 31, 2016, 2015 and 2014
|
35
|
Notes to Consolidated Financial Statements
|
36
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
REVENUES:
|
||||||||||||
Marketing
|
$
|
1,043,775
|
$
|
1,875,885
|
$
|
4,050,497
|
||||||
Transportation
|
52,355
|
63,331
|
68,968
|
|||||||||
Oil and natural gas
|
3,410
|
5,063
|
13,361
|
|||||||||
1,099,540
|
1,944,279
|
4,132,826
|
||||||||||
COSTS AND EXPENSES:
|
||||||||||||
Marketing
|
1,016,733
|
1,841,893
|
4,020,017
|
|||||||||
Transportation
|
45,154
|
52,076
|
56,802
|
|||||||||
Oil and natural gas operations
|
2,084
|
6,931
|
7,817
|
|||||||||
Oil and natural gas property impairments
|
313
|
12,082
|
8,009
|
|||||||||
Oil and natural gas property sale (gain)
|
-
|
-
|
(2,528
|
)
|
||||||||
General and administrative
|
10,410
|
9,939
|
8,613
|
|||||||||
Depreciation, depletion and amortization
|
18,792
|
23,717
|
24,615
|
|||||||||
1,093,486
|
1,946,638
|
4,123,345
|
||||||||||
Operating (Loss) Earnings
|
6,054
|
(2,359
|
)
|
9,481
|
||||||||
Other Income (Expense):
|
||||||||||||
Interest income
|
582
|
327
|
301
|
|||||||||
Interest expense
|
(2
|
)
|
(13
|
)
|
(2
|
)
|
||||||
Earnings (loss) before income taxes
|
||||||||||||
and equity investments
|
6,634
|
(2,045
|
)
|
9,780
|
||||||||
Income Tax (Provision) Benefit:
|
||||||||||||
Current
|
(2,778
|
)
|
(4,073
|
)
|
(9,712
|
)
|
||||||
Deferred
|
87
|
4,843
|
6,151
|
|||||||||
(2,691
|
)
|
770
|
(3,561
|
)
|
||||||||
Earnings (loss) from continuing operations
|
3,943
|
(1,275
|
)
|
6,219
|
||||||||
Earnings (loss) from equity investments, net of tax benefit
|
||||||||||||
of $770, zero and zero, respectively
|
(1,430
|
)
|
-
|
-
|
||||||||
Earnings (loss) from discontinued operations net of tax
|
||||||||||||
(provision) benefit of zero, zero and $(163) respectively
|
-
|
-
|
304
|
|||||||||
Net Earnings (Loss)
|
$
|
2,513
|
$
|
(1,275
|
)
|
$
|
6,523
|
|||||
EARNINGS (LOSS) PER SHARE:
|
||||||||||||
From continuing operations
|
$
|
.94
|
$
|
(.30
|
)
|
$
|
1.48
|
|||||
From equity investments
|
(.34
|
)
|
-
|
-
|
||||||||
From discontinued operations
|
-
|
-
|
.07
|
|||||||||
Basic and diluted net earnings per share
|
$
|
.60
|
$
|
(.30
|
)
|
$
|
1.55
|
|||||
Dividends declared per common share
|
$
|
.88
|
$
|
.88
|
$
|
.88
|
Total
|
||||||||||||||||
Common
|
Contributed
|
Retained
|
Shareholders’
|
|||||||||||||
Stock
|
Capital
|
Earnings
|
Equity
|
|||||||||||||
BALANCE, January 1, 2014
|
$
|
422
|
$
|
11,693
|
$
|
142,570
|
$
|
154,685
|
||||||||
Net earnings
|
-
|
-
|
6,523
|
6,523
|
||||||||||||
Dividends paid on common stock
|
-
|
-
|
(3,711
|
)
|
(3,711
|
)
|
||||||||||
BALANCE, December 31, 2014
|
$
|
422
|
$
|
11,693
|
$
|
145,382
|
$
|
157,497
|
||||||||
Net earnings
|
-
|
-
|
(1,275
|
)
|
(1,275
|
)
|
||||||||||
Dividends paid on common stock
|
-
|
-
|
(3,712
|
)
|
(3,712
|
)
|
||||||||||
BALANCE, December 31, 2015
|
$
|
422
|
$
|
11,693
|
$
|
140,395
|
$
|
152,510
|
||||||||
Net earnings (loss)
|
-
|
-
|
2,513
|
2,513
|
||||||||||||
Dividends paid on common stock
|
-
|
-
|
(3,711
|
)
|
(3,711
|
)
|
||||||||||
BALANCE, December 31, 2016
|
$
|
422
|
$
|
11,693
|
$
|
139,197
|
$
|
151,312
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
CASH PROVIDED BY OPERATIONS:
|
||||||||||||
Net earnings (loss)
|
$
|
2,513
|
$
|
(1,275
|
)
|
$
|
6,523
|
|||||
Adjustments to reconcile net earnings to net cash
|
||||||||||||
from operating activities-
|
||||||||||||
Depreciation, depletion and amortization
|
18,792
|
23,717
|
24,615
|
|||||||||
Property sales (gains) oil and natural gas
|
-
|
-
|
(2,528
|
)
|
||||||||
Property sale (gains) other
|
(1,966
|
)
|
(535
|
)
|
(1,028
|
)
|
||||||
Dry hole costs incurred
|
-
|
817
|
1,034
|
|||||||||
Impairment of oil and natural gas properties
|
313
|
12,082
|
8,009
|
|||||||||
Provision for doubtful accounts
|
19
|
27
|
(73
|
)
|
||||||||
Deferred income taxes (includes equity investments)
|
(857
|
)
|
(4,843
|
)
|
(6,151
|
)
|
||||||
Net change in fair value contracts
|
(243
|
)
|
188
|
402
|
||||||||
Equity investment (earnings) losses
|
468
|
-
|
-
|
|||||||||
Impairment of equity investment
|
1,732
|
-
|
-
|
|||||||||
Decrease (increase) in accounts receivable
|
(15,368
|
)
|
72,594
|
99,749
|
||||||||
Decrease (increase) in inventories
|
(5,399
|
)
|
5,810
|
14,135
|
||||||||
Decrease (increase) in income tax receivable
|
(148
|
)
|
(1,617
|
)
|
1,127
|
|||||||
Decrease (increase) in prepayments
|
492
|
8,351
|
5,839
|
|||||||||
Increase (decrease) in accounts payable
|
6,984
|
(87,404
|
)
|
(104,887
|
)
|
|||||||
Increase (decrease) in accrued and other liabilities
|
52
|
(166
|
)
|
448
|
||||||||
Other changes, net
|
(440
|
)
|
(2,269
|
)
|
(81
|
)
|
||||||
Net cash provided by operating activities
|
6,944
|
25,477
|
47,133
|
|||||||||
INVESTING ACTIVITIES:
|
||||||||||||
Property and equipment additions
|
(8,484
|
)
|
(11,074
|
)
|
(30,523
|
)
|
||||||
Insurance and state collateral (deposits) refunds
|
1,710
|
283
|
(493
|
)
|
||||||||
Investments
|
(4,700
|
)
|
-
|
-
|
||||||||
Proceeds from property sales
|
3,706
|
719
|
7,045
|
|||||||||
Net cash (used in) investing activities
|
(7,768
|
)
|
(10,072
|
)
|
(23,971
|
)
|
||||||
FINANCING ACTIVITIES:
|
||||||||||||
Dividend payments
|
(3,711
|
)
|
(3,712
|
)
|
(3,711
|
)
|
||||||
Net cash (used in) financing activities
|
(3,711
|
)
|
(3,712
|
)
|
(3,711
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
(4,535
|
)
|
11,693
|
19,451
|
||||||||
Cash and cash equivalents at beginning of year
|
91,877
|
80,184
|
60,733
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
87,342
|
$
|
91,877
|
$
|
80,184
|
December 31,
|
||||||||
2016
|
2015
|
|||||||
Cash collateral deposits for commodity purchases
|
$
|
-
|
$
|
167
|
||||
Insurance premiums
|
1,403
|
1,609
|
||||||
Rents, license and other
|
694
|
813
|
||||||
$
|
2,097
|
$
|
2,589
|
2016
|
2015
|
2014
|
||||||||||
Producing property impairments
|
$
|
30
|
$
|
10,324
|
$
|
4,001
|
||||||
Non-producing property impairments
|
$
|
283
|
$
|
1,758
|
$
|
4,008
|
||||||
$
|
313
|
$
|
12,082
|
$
|
8,009
|
Producing Properties
|
||||||||
Subject to Fair
|
||||||||
Value Impairment
|
||||||||
2016
|
2015
|
|||||||
Net book value at January 1
|
$
|
70
|
$
|
18,744
|
||||
Property additions
|
2
|
2,117
|
||||||
Depletion taken
|
(15
|
)
|
(4,454
|
)
|
||||
Impairment valuation loss
|
(30
|
)
|
(10,324
|
)
|
||||
Net book value at December 31
|
$
|
27
|
$
|
6,083
|
December 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Napoleonville Louisiana acreage
|
$
|
-
|
$
|
49
|
||||
South Texas project acreage
|
-
|
-
|
||||||
Wyoming and other acreage
|
-
|
182
|
||||||
Total Non-producing Leasehold Costs
|
$
|
-
|
$
|
231
|
Leasehold Costs
|
||||||||
2016
|
2015
|
|||||||
Net book value January 1
|
$
|
231
|
$
|
959
|
||||
Leasehold additions
|
52
|
106
|
||||||
Advanced royalty payment
|
-
|
529
|
||||||
In-process wells suspended
|
-
|
395
|
||||||
Property sales
|
-
|
-
|
||||||
Impairments valuation loss
|
(283
|
)
|
(1,758
|
)
|
||||
Net book value December 31
|
$
|
-
|
$
|
231
|
2016
|
2015
|
2014
|
||||||||||
Sales of used trucks and equipment
|
$
|
1,966
|
$
|
535
|
$
|
1,028
|
As of December 31,
|
||||||||
2016
|
2015
|
|||||||
Insurance collateral deposits
|
$
|
5,032
|
$
|
6,531
|
||||
State collateral deposits
|
143
|
140
|
||||||
Materials and supplies
|
354
|
292
|
||||||
$
|
5,529
|
$
|
6,963
|
2016
|
2015
|
2014
|
||||||||||
Revenue gross-up
|
$
|
314,270
|
$
|
480,111
|
$
|
1,272,034
|
As of December 31,
|
||||||||
2016
|
2015
|
|||||||
Stand-by letters of credit
|
$
|
-
|
$
|
1,000
|
2016
|
2015
|
2014
|
||||||||||
Interest paid
|
$
|
2
|
$
|
13
|
$
|
2
|
||||||
Federal and state tax paid
|
$
|
2,589
|
$
|
6,197
|
$
|
8,169
|
||||||
State tax refund
|
$
|
-
|
$
|
-
|
$
|
18
|
As of December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Property and equipment additions
|
$
|
679
|
$
|
1,707
|
$
|
1,137
|
Balance Sheet Location and Amount
|
||||||||||||||||
Current
|
Other
|
Current
|
Other
|
|||||||||||||
Assets
|
Assets
|
Liabilities
|
Liabilities
|
|||||||||||||
Asset Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
$
|
378
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Liability Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
-
|
-
|
330
|
-
|
||||||||||||
Less Counterparty Offsets
|
(266
|
)
|
-
|
(266
|
)
|
-
|
||||||||||
As Reported Fair Value Contracts
|
$
|
112
|
$
|
-
|
$
|
64
|
$
|
-
|
Balance Sheet Location and Amount
|
||||||||||||||||
Current
|
Other
|
Current
|
Other
|
|||||||||||||
Assets
|
Assets
|
Liabilities
|
Liabilities
|
|||||||||||||
Asset Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Liability Derivatives
|
||||||||||||||||
- Fair Value Commodity
|
||||||||||||||||
Contracts at Gross Valuation
|
-
|
-
|
195
|
-
|
||||||||||||
Less Counterparty Offsets
|
-
|
-
|
-
|
-
|
||||||||||||
As Reported Fair Value Contracts
|
$
|
-
|
$
|
-
|
$
|
195
|
$
|
-
|
Gain (Loss)
|
||||||||||||
Location
|
2016
|
2015
|
2014
|
|||||||||
Revenues – marketing
|
$
|
243
|
$
|
(188
|
)
|
$
|
312
|
Market Data Inputs
|
||||||||||||||||||||
Gross Level 1
|
Gross Level 2
|
Gross Level 3
|
Counterparty
|
|||||||||||||||||
Quoted Prices
|
Observable
|
Unobservable
|
Offsets
|
Total
|
||||||||||||||||
Derivatives
(fair value contracts)
|
||||||||||||||||||||
- Current assets
|
$
|
-
|
$
|
378
|
$
|
-
|
$
|
(266
|
)
|
$
|
112
|
|||||||||
- Current liabilities
|
-
|
(330
|
)
|
-
|
266
|
(64
|
)
|
|||||||||||||
Net Value
|
$
|
-
|
$
|
48
|
$
|
-
|
$
|
-
|
$
|
48
|
Market Data Inputs
|
||||||||||||||||||||
Gross Level 1
|
Gross Level 2
|
Gross Level 3
|
Counterparty
|
|||||||||||||||||
Quoted Prices
|
Observable
|
Unobservable
|
Offsets
|
Total
|
||||||||||||||||
Derivatives
(fair value contracts)
|
||||||||||||||||||||
- Current assets
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
- Current liabilities
|
-
|
(195
|
)
|
-
|
-
|
(195
|
)
|
|||||||||||||
Net Value
|
$
|
-
|
$
|
(195
|
)
|
$
|
-
|
$
|
-
|
$
|
(195
|
)
|
Level 1
|
Level 2
|
|||||||||||
Quoted Prices
|
Observable
|
Total
|
||||||||||
Net Fair Value January 1
|
$
|
-
|
$
|
(195
|
)
|
$
|
(195
|
)
|
||||
- Net realized (gains) losses
|
-
|
195
|
195
|
|||||||||
- Net unrealized gains (losses)
|
-
|
48
|
48
|
|||||||||
Net Fair Value December 31
|
$
|
-
|
$
|
48
|
$
|
48
|
Level 1
|
Level 2
|
|||||||||||
Quoted Prices
|
Observable
|
Total
|
||||||||||
Net Fair Value January 1
|
$
|
-
|
$
|
(7
|
)
|
$
|
(7
|
)
|
||||
- Net realized (gains) losses
|
-
|
7
|
7
|
|||||||||
- Net unrealized gains (losses)
|
-
|
(195
|
)
|
(195
|
)
|
|||||||
Net Fair Value December 31
|
$
|
-
|
$
|
(195
|
)
|
$
|
(195
|
)
|
2016
|
2015
|
|||||||
Balance on January 1
|
$
|
2,469
|
$
|
2,464
|
||||
-Liabilities incurred
|
162
|
39
|
||||||
-Accretion of discount
|
92
|
93
|
||||||
-Liabilities settled
|
(394
|
)
|
(127
|
)
|
||||
Balance on December 31
|
$
|
2,329
|
$
|
2,469
|
Years ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Current:
|
||||||||||||
Federal
|
$
|
(2,103
|
)
|
$
|
(3,883
|
)
|
$
|
(8,626
|
)
|
|||
State
|
(675
|
)
|
(190
|
)
|
(1,249
|
)
|
||||||
(2,778
|
)
|
(4,073
|
)
|
(9,875
|
)
|
|||||||
Deferred:
|
||||||||||||
Federal
|
777
|
5,011
|
5,878
|
|||||||||
State
|
80
|
(168
|
)
|
273
|
||||||||
857
|
4,843
|
6,151
|
||||||||||
$
|
(1,921
|
)
|
$
|
770
|
$
|
(3,724
|
)
|
Years ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
From continuing operations
|
$
|
(2,691
|
)
|
$
|
770
|
$
|
(3,561
|
)
|
||||
From discontinued operations
|
-
|
-
|
(163
|
)
|
||||||||
From equity investments
|
770
|
-
|
-
|
|||||||||
$
|
(1,921
|
)
|
$
|
770
|
$
|
(3,724
|
)
|
Years ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Statutory federal income tax (provision) benefit
|
$
|
(1,552
|
)
|
$
|
716
|
$
|
(3,587
|
)
|
||||
State income tax (provision) benefit
|
(387
|
)
|
(233
|
)
|
(634
|
)
|
||||||
Federal statutory depletion
|
62
|
144
|
549
|
|||||||||
Other
|
(44
|
)
|
143
|
(52
|
)
|
|||||||
$
|
(1,921
|
)
|
$
|
770
|
$
|
(3,724
|
)
|
Years Ended December 31,
|
||||||||
2016
|
2015
|
|||||||
Long-term deferred tax asset (liability)
|
||||||||
Prepaid and other insurance
|
$
|
(1,058
|
)
|
$
|
(1,243
|
)
|
||
Property
|
(7,341
|
)
|
(7,408
|
)
|
||||
Equity method investment
|
606
|
-
|
||||||
Uniform capitalization
|
729
|
704
|
||||||
Other
|
(93
|
)
|
(51
|
)
|
||||
Net long-term deferred tax liability
|
(7,157
|
)
|
(7,998
|
)
|
||||
Net deferred tax liability
|
$
|
(7,157
|
)
|
$
|
(7,998
|
)
|
Earliest Open
|
|
Tax Year
|
|
Federal
|
2013
|
Texas
|
2012
|
Louisiana
|
2013
|
Michigan
|
2012
|
2016
|
2015
|
2014
|
||||||||||
Balance, beginning of year
|
$
|
206
|
$
|
179
|
$
|
252
|
||||||
Provisions for bad debts
|
100
|
116
|
50
|
|||||||||
Less: Write-offs and recoveries
|
(81
|
)
|
(89
|
)
|
(123
|
)
|
||||||
Balance, end of year
|
$
|
225
|
$
|
206
|
$
|
179
|
2016
|
2015
|
2014
|
||||||||||
Contributory expenses
|
$
|
757
|
$
|
768
|
$
|
691
|
2016
|
2015
|
2014
|
||||||||||
Overhead recoveries
|
$
|
32
|
$
|
97
|
$
|
151
|
||||||
Affiliate billings to Company
|
$
|
65
|
$
|
68
|
$
|
65
|
||||||
Company billings to affiliate
|
$
|
5
|
$
|
35
|
$
|
42
|
||||||
Rentals paid to affiliate
|
$
|
628
|
$
|
618
|
$
|
607
|
||||||
Fee paid to Bencap
|
$
|
583
|
$
|
-
|
$
|
-
|
Years ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Rental expense
|
$
|
11,314
|
$
|
11,168
|
$
|
9,755
|
2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
Total
|
||||||||||||||||||||
$
|
4,768
|
$
|
2,018
|
$
|
365
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
7,155
|
As of December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Estimated expenses and liabilities
|
$
|
2,657
|
$
|
2,086
|
$
|
2,585
|
As of December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Accrued medical claims
|
$
|
1,411
|
$
|
1,107
|
$
|
1,057
|
2017
|
2018
|
2019
|
2020
|
Thereafter
|
Total
|
|||||||||||||||||||
Commodity purchases
|
$
|
24,210
|
-
|
-
|
-
|
-
|
$
|
24,210
|
||||||||||||||||
Letters of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
$
|
24,210
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
24,210
|
Segment
Operating
|
Depreciation Depletion and
|
Property and Equipment
|
||||||||||||||
Revenues
|
Earnings (loss)
|
Amortization
|
Additions
|
|||||||||||||
Year ended December 31, 2016-
|
||||||||||||||||
Marketing
|
$
|
1,043,775
|
$
|
17,045
|
$
|
9,997
|
$
|
1,321
|
||||||||
Transportation
|
52,355
|
(48
|
)
|
7,249
|
6,868
|
|||||||||||
Oil and gas
|
3,410
|
(533
|
)
(2)
|
1,546
|
295
|
|||||||||||
$
|
1,099,540
|
$
|
16,464
|
$
|
18,792
|
$
|
8,484
|
|||||||||
Year ended December 31, 2015-
|
||||||||||||||||
Marketing
|
$
|
1,875,885
|
$
|
22,895
|
(1)
|
$
|
11,097
|
$
|
2,126
|
|||||||
Transportation
|
63,331
|
3,701
|
7,554
|
6,579
|
||||||||||||
Oil and gas
|
5,063
|
(19,016
|
)
(2)
|
5,066
|
2,369
|
|||||||||||
$
|
1,944,279
|
$
|
7,580
|
$
|
23,717
|
$
|
11,074
|
|||||||||
Year ended December 31, 2014-
|
||||||||||||||||
Marketing
|
$
|
4,050,497
|
$
|
20,854
|
(1)
|
$
|
9,626
|
$
|
13,598
|
|||||||
Transportation
|
68,968
|
4,750
|
7,416
|
8,994
|
||||||||||||
Oil and gas
|
13,361
|
(7,510
|
)
(2)
|
7,573
|
7,931
|
|||||||||||
$
|
4,132,826
|
$
|
18,094
|
$
|
24,615
|
$
|
30,523
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Segment operating earnings
|
$
|
16,464
|
$
|
7,580
|
$
|
18,094
|
||||||
- General and administrative expenses
|
(10,410
|
)
|
(9,939
|
)
|
(8,613
|
)
|
||||||
Operating earnings (loss)
|
6,054
|
(2,359
|
)
|
9,481
|
||||||||
- Interest income
|
582
|
327
|
301
|
|||||||||
- Interest expense
|
(2
|
)
|
(13
|
)
|
(2
|
)
|
||||||
Earnings (loss) from continuing operations before
|
||||||||||||
income taxes and discontinued operations
|
$
|
6,634
|
$
|
(2,045
|
)
|
$
|
9,780
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Marketing
|
$
|
107,257
|
$
|
96,723
|
$
|
189,332
|
||||||
Transportation
|
32,120
|
35,010
|
37,643
|
|||||||||
Oil and gas
|
7,279
|
8,930
|
25,888
|
|||||||||
Cash and other
|
100,216
|
102,552
|
87,951
|
|||||||||
$
|
246,872
|
$
|
243,215
|
$
|
340,814
|
Earnings (Loss) from
|
||||||||||||||||||||||||||||
Continuing Operations
|
Net Earnings (Loss)
|
Dividends
|
||||||||||||||||||||||||||
Revenues
|
Amount
|
Per Share
|
Amount
|
Per Share
|
Amount
|
Per Share
|
||||||||||||||||||||||
2016
|
||||||||||||||||||||||||||||
March 31
|
$
|
250,531
|
$
|
1,554
|
$
|
.37
|
$
|
1,430
|
$
|
.34
|
$
|
928
|
$
|
.22
|
||||||||||||||
June 30
|
293,163
|
3,540
|
.84
|
3,404
|
.81
|
928
|
.22
|
|||||||||||||||||||||
September 30
|
256,877
|
(983
|
)
|
(.23
|
)
|
(2,153
|
)
|
(.51
|
)
|
928
|
.22
|
|||||||||||||||||
December 31
|
298,969
|
(168
|
)
|
(.04
|
)
|
(168
|
)
|
(.04
|
)
|
927
|
.22
|
|||||||||||||||||
Total
|
$
|
1,099,540
|
$
|
3,943
|
$
|
.94
|
$
|
2,513
|
$
|
.60
|
$
|
3,711
|
$
|
.88
|
||||||||||||||
2015
|
||||||||||||||||||||||||||||
March 31
|
$
|
555,573
|
$
|
3,097
|
$
|
.73
|
$
|
3,097
|
$
|
.73
|
$
|
928
|
$
|
.22
|
||||||||||||||
June 30
|
600,558
|
4,340
|
1.03
|
4,340
|
1.03
|
928
|
.22
|
|||||||||||||||||||||
September 30
|
439,893
|
(308
|
)
|
(.07
|
)
|
(308
|
)
|
(.07
|
)
|
928
|
.22
|
|||||||||||||||||
December 31
|
348,255
|
(8,404
|
)
|
(1.99
|
)
|
(8,404
|
)
|
(1.99
|
)
|
928
|
.22
|
|||||||||||||||||
Total
|
$
|
1,944,279
|
$
|
(1,275
|
)
|
$
|
(.30
|
)
|
$
|
(1,275
|
)
|
$
|
(.30
|
)
|
$
|
3,712
|
$
|
.88
|
For the year Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Property acquisition costs
|
||||||||||||
Unproved
|
$
|
32
|
$
|
348
|
$
|
1,144
|
||||||
Proved
|
-
|
-
|
-
|
|||||||||
Exploration costs
|
||||||||||||
Expensed
|
291
|
1,667
|
5,054
|
|||||||||
Capitalized
|
-
|
-
|
-
|
|||||||||
Development costs
|
-
|
370
|
1,745
|
|||||||||
Total costs incurred
|
$
|
323
|
$
|
2,385
|
$
|
7,943
|
As of December 31,
|
||||||||
2016
|
2015
|
|||||||
Unproved oil and gas properties
|
$
|
-
|
$
|
231
|
||||
Proved oil and gas properties
|
62,784
|
76,886
|
||||||
62,784
|
77,117
|
|||||||
Accumulated depreciation, depletion
|
||||||||
and amortization
|
(56,426
|
)
|
(69,116
|
)
|
||||
Net capitalized cost
|
$
|
6,358
|
$
|
8,001
|
Years Ended December 31,
|
||||||||||||||||||||||||
2016
|
2015
|
2014
|
||||||||||||||||||||||
Natural
|
Natural
|
Natural
|
||||||||||||||||||||||
Gas
|
Oil
|
Gas
|
Oil
|
Gas
|
Oil
|
|||||||||||||||||||
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls
.)
|
|||||||||||||||||||
Total proved reserves-
|
||||||||||||||||||||||||
Beginning of year
|
4,835
|
226
|
5,611
|
318
|
6,286
|
368
|
||||||||||||||||||
Revisions of previous estimates
|
65
|
24
|
27
|
(2
|
)
|
724
|
6
|
|||||||||||||||||
Oil and gas reserves sold
|
(175
|
)
|
(4
|
)
|
-
|
(3
|
)
|
(558
|
)
|
(11
|
)
|
|||||||||||||
Extensions, discoveries and
|
||||||||||||||||||||||||
other reserve additions
|
151
|
18
|
86
|
13
|
292
|
82
|
||||||||||||||||||
Production
|
(662
|
)
|
(77
|
)
|
(889
|
)
|
(100
|
)
|
(1,133
|
)
|
(127
|
)
|
||||||||||||
End of year
|
4,214
|
187
|
4,835
|
226
|
5,611
|
318
|
Years Ended December 31,
|
||||||||||||||||||||||||
2016
|
2015
|
2014
|
||||||||||||||||||||||
Natural
|
Natural
|
Natural
|
||||||||||||||||||||||
Gas
|
Oil
|
Gas
|
Oil
|
Gas
|
Oil
|
|||||||||||||||||||
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls.
)
|
(
Mcf’s
)
|
(
Bbls
.)
|
|||||||||||||||||||
Proved developed reserves
|
4,214
|
187
|
4,813
|
223
|
5,482
|
299
|
||||||||||||||||||
Proved undeveloped reserves
|
-
|
-
|
22
|
3
|
129
|
19
|
||||||||||||||||||
Total proved reserves
|
4,214
|
187
|
4,835
|
226
|
5,611
|
318
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Future gross revenues
|
$
|
17,938
|
$
|
23,040
|
$
|
58,885
|
||||||
Future costs -
|
||||||||||||
Lease operating expenses
|
(12,421
|
)
|
(14,524
|
)
|
(16,421
|
)
|
||||||
Development costs
|
(38
|
)
|
(103
|
)
|
(1,068
|
)
|
||||||
Future net cash flows before income taxes
|
5,479
|
8,413
|
41,396
|
|||||||||
Discount at 10% per annum
|
(2,002
|
)
|
(2,987
|
)
|
(17,175
|
)
|
||||||
Discounted future net cash flows
|
||||||||||||
before income taxes
|
3,477
|
5,426
|
24,221
|
|||||||||
Future income taxes, net of discount at
|
||||||||||||
10% per annum
|
(1,217
|
)
|
(1,899
|
)
|
(8,477
|
)
|
||||||
Standardized measure of discounted
|
||||||||||||
future net cash flows
|
$
|
2,260
|
$
|
3,527
|
$
|
15,744
|
Years ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Market price
|
||||||||||||
Crude oil per barrel
|
$
|
38.34
|
$
|
45.83
|
$
|
89.60
|
||||||
Natural gas per thousand cubic feet (mcf)
|
$
|
2.56
|
$
|
2.62
|
$
|
5.42
|
Years ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Future net cash flows before income taxes
|
$
|
5,479
|
$
|
8,413
|
$
|
41,396
|
||||||
Future income taxes
|
(1,918
|
)
|
(2,945
|
)
|
(14,489
|
)
|
||||||
Future net cash flows
|
3,561
|
5,468
|
26,907
|
|||||||||
Discount at 10% per annum
|
(1,301
|
)
|
(1,941
|
)
|
(11,163
|
)
|
||||||
Standardized measure of discounted
|
||||||||||||
future net cash flows
|
$
|
2,260
|
$
|
3,527
|
$
|
15,744
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Beginning of year
|
$
|
3,527
|
$
|
15,744
|
$
|
17,836
|
||||||
Sale of oil and gas reserves
|
(350
|
)
|
(54
|
)
|
(981
|
)
|
||||||
Net change in prices and production costs
|
(1,391
|
)
|
(17,622
|
)
|
(72
|
)
|
||||||
New field discoveries and extensions, net of future
|
||||||||||||
production costs
|
275
|
292
|
4,456
|
|||||||||
Sales of oil and gas produced, net of production costs
|
87
|
1,038
|
(6,590
|
)
|
||||||||
Net change due to revisions in quantity estimates
|
181
|
38
|
2,460
|
|||||||||
Accretion of discount
|
194
|
1,116
|
1,773
|
|||||||||
Production rate changes and other
|
(945
|
)
|
(3,603
|
)
|
(4,265
|
)
|
||||||
Net change in income taxes
|
682
|
6,578
|
1,127
|
|||||||||
End of year
|
$
|
2,260
|
$
|
3,527
|
$
|
15,744
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Revenues
|
$
|
3,410
|
$
|
5,063
|
$
|
13,361
|
||||||
Costs and expenses -
|
||||||||||||
Production
|
(3,337
|
)
|
(7,022
|
)
|
(6,771
|
)
|
||||||
Producing property impairment
|
(30
|
)
|
(10,324
|
)
|
(4,001
|
)
|
||||||
Exploration
|
-
|
(1,667
|
)
|
(5,054
|
)
|
|||||||
Oil and natural gas property sale gain
|
-
|
-
|
2,528
|
|||||||||
Depreciation, depletion and amortization
|
(1,546
|
)
|
(5,066
|
)
|
(7,573
|
)
|
||||||
Operating income (loss) before income taxes
|
(1,503
|
)
|
(19,016
|
)
|
(7,510
|
)
|
||||||
Income tax benefit
|
526
|
6,656
|
2,628
|
|||||||||
Operating income (loss)
|
$
|
(977
|
)
|
$
|
(12,360
|
)
|
$
|
(4,882
|
)
|
|||
Item 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
·
|
We are performing a review to ensure that no personnel signs off as the reviewer and subsequently posts the journal entry to the general ledger.
|
·
|
We are considering repositioning the personnel in the financial close group to allow for more segregation of duties within the group.
|
·
|
We are addressing the control gap relating to the segregation of duties by requiring review of the manual journal entry to occur after the journal entry is independently posted. Review after posting restricts the ability to edit the journal entry.
|
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 TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
Item 14. |
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
Item 15. |
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
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. (Incorporated by reference to Exhibit 3(b) filed with the Annual Report on Form 10-K for the year ended December 31, 2012 (-File No. 1-7908). |
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 | - | Form of Indemnification Agreement for directors and executive officers. (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on May 15, 2015). |
10.2 | - | Retirement Agreement, dated February 26, 2015, by and between Adams Resources & Energy, Inc. and Frank T. ‟Chip” Webster (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on February 26, 2015). |
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 |
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
|
101.DEF*
|
-
XBRL Definition Linkbase Document
|
ADAMS RESOURCES & ENERGY, INC.
|
|
(Registrant)
|
|
By
/s/ Josh C. Anders
|
By
/s/ Thomas S. Smith
|
Josh C. Anders
|
Thomas S. Smith
|
Executive Vice President and Chief Financial Officer
|
Chief Executive Officer
|
(Principal Financial Officer and Principal Accounting Officer)
|
(Principal Executive Officer)
|
By
/s/ Thomas S. Smith
Thomas S. Smith, Director
|
By
/s/ Townes G. Pressler
Townes G. Pressler, Director
|
(Chairman)
|
|
By /s/ Murray E. Brasseux
|
By
/s/ E. C. Reinauer, Jr.
|
Murray E. Brasseux, Director
|
E. C. Reinauer, Jr., Director
|
By
/s/ Larry E. Bell
|
By
/s/ Michelle A. Earley
|
Larry E. Bell, Director
|
Michelle A. Earley, Director
|
By
/s/ Richard C. Jenner
|
By
/s/ W. R. Scofield
|
Richard C. Jenner, Director
|
W. R. Scofield, Director
|
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
|
101.DEF*
|
-
XBRL Definition Linkbase Document
|
Subsidiary
|
Place of Incorporation
|
Adams Resources Exploration Corporation
|
Delaware
|
Service Transport Company
|
Texas
|
Bayou City Pipelines, Inc.
|
Texas
|
Ada Crude Oil Company
|
Texas
|
Ada Mining Corporation
|
Texas
|
Classic Coal Corporation
|
Delaware
|
Gulfmark Energy, Inc.
|
Texas
|
Adams Resources Medical Management, Inc.
|
Texas
|
Ada Resources, Inc.
|
Texas
|
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:
|
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:
|
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) or 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) 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.
|
\s\ Fred W. Ziehe
|
Fred W. Ziehe, P.E.
|
TBPE License No. 63630
|
Advising Senior Vice President
|
As of December 31, 2016
|
Proved
|
||||||||||||
Developed
|
Total
|
|||||||||||
Producing
|
Non-Producing
|
Proved
|
||||||||||
Net Remaining Reserves
|
||||||||||||
Oil/Condensate – MBbls
|
169.0
|
17.7
|
186.7
|
|||||||||
Gas – MMCF
|
4,147.0
|
67.0
|
4,214.0
|
|||||||||
MBOE
|
860.2
|
28.8
|
889.0
|
|||||||||
Income Data ($M)
|
||||||||||||
Future Gross Revenue
|
$
|
16,044.8
|
$
|
814.3
|
$
|
16,859.1
|
||||||
Deductions
|
11,036.3
|
344.1
|
11,380.4
|
|||||||||
Future Net Income (FNI)
|
$
|
5,008.5
|
$
|
470.2
|
$
|
5,478.7
|
||||||
Discounted FNI @ 10%
|
$
|
3,173.5
|
$
|
303.9
|
$
|
3,477.4
|
Discounted Future Net Income ($M)
|
||||||
As of December 31, 2016
|
||||||
Discount Rate
|
Total
|
|||||
Percent
|
Proved
|
|||||
5.0
|
$
|
4,215.7
|
||||
15.0
|
$
|
2,991.4
|
||||
20.0
|
$
|
2,645.0
|
||||
25.0
|
$
|
2,384.2
|
Geographic Area
|
Product
|
Price
Reference
|
Average
Benchmark Prices
|
Average
Realized Prices
|
Total U.S. Domestic
|
Oil/Condensate
|
WTI Cushing
|
$42.75/Bbl
|
$38.34/Bbl
|
Gas
|
Henry Hub
|
$2.49/MMBTU
|
$2.56/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.
|