Adams Res & Ener Stock Price, News & Analysis

Adams Resources & Energy, Inc. (NYSE American: AE) is a company engaged in the marketing, transportation, logistics and repurposing of crude oil, refined products and dry bulk materials. According to the company’s public disclosures, Adams focuses on crude oil marketing, transportation, terminalling and storage, tank truck transportation of liquid chemicals and dry bulk, interstate bulk transportation logistics of crude oil, condensate, fuels, oils and other petroleum products, and recycling and repurposing of off-specification fuels, lubricants, crude oil and other chemicals.

Core business activities

Adams describes its operations across several related activities in the energy and chemicals value chain. Through its subsidiaries, the company is involved in:

• Crude oil marketing – purchasing and marketing crude oil, as described for its GulfMark Energy, Inc. subsidiary.
• Transportation – tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk, and interstate bulk transportation logistics of crude oil, condensate, fuels, oils and other petroleum products.
• Terminalling and storage – crude oil terminalling and storage, including operations associated with the Victoria Express Pipeline System.
• Logistics and repurposing – recycling and repurposing of off-specification fuels, lubricants, crude oil and other chemicals.

In its financial reporting, Adams presents revenues from marketing, transportation, pipeline and storage, and logistics and repurposing, reflecting these operational areas.

Subsidiaries and structure

Adams states that it conducts its activities through a group of specialized subsidiaries, including:

• GulfMark Energy, Inc. – crude oil marketing subsidiary.
• Service Transport Company – liquid chemicals, pressurized gases, asphalt and dry bulk transportation subsidiary.
• Victoria Express Pipeline, LLC – crude oil pipeline and storage segment, including the Victoria Express Pipeline System.
• GulfMark Terminals, LLC – crude oil terminalling operations.
• Phoenix Oil, Inc. – involved in recycling and repurposing of off-specification fuels, lubricants, crude oil and other chemicals.
• Firebird Bulk Carriers, Inc. – bulk transportation activities.

These subsidiaries are repeatedly referenced in the company’s earnings releases as the operating entities through which Adams executes its marketing, transportation, pipeline, storage, logistics and repurposing activities.

Industry and sector context

Based on the provided classification, Adams operates in the Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) industry within the Wholesale Trade sector. Its publicly reported activities span crude oil marketing and logistics, petroleum product transportation, and related services such as terminalling, storage and repurposing of off-specification materials.

Public company status and planned acquisition

Adams Resources & Energy, Inc. is listed on the NYSE American under the ticker symbol AE. In a Globe Newswire announcement dated November 12, 2024, the company disclosed that it entered into a definitive agreement to be acquired by an affiliate of Tres Energy LLC in an all-cash transaction. The company stated that, upon completion of this transaction, its shares will no longer trade on the NYSE American and Adams will become a private company. A subsequent release dated January 29, 2025 reported that Adams stockholders approved the pending acquisition at a special meeting, with the merger expected to close subject to customary closing conditions.

These disclosures indicate a planned transition from a publicly traded company to a privately held entity following the completion of the merger with an affiliate of Tres Energy LLC. The company’s communications describe this as a return to operating as a private company in partnership with the buyer.

Operational reporting and segments

In its quarterly financial releases for 2024, Adams reports revenue and operating results across four categories: marketing, transportation, pipeline and storage, and logistics and repurposing. The company also discusses operational metrics such as barrels per day of crude oil marketed by GulfMark Energy, miles traveled by the Service Transport fleet, throughput and terminalling volumes in the crude oil pipeline and storage segment, and crude oil inventory levels.

Adams highlights the use of non-GAAP financial measures such as EBITDA and Adjusted EBITDA in its communications. It provides reconciliations of these measures to net earnings (losses) and explains that management uses them as indicators of financial performance and for benchmarking against peer companies. The company notes that these non-GAAP measures should not be considered alternatives to net income or other GAAP performance measures.

Dividends and capital allocation

Throughout its 2024 quarterly releases, Adams states that its Board of Directors declared quarterly cash dividends of $0.24 per common share. The company also discusses capital expenditures for tractors, trailers, equipment and facility construction, and references an ongoing capital allocation strategy that includes funding operations and paying a quarterly dividend.

Planned transition to private ownership

In connection with the announced acquisition by an affiliate of Tres Energy LLC, Adams has communicated that, upon completion of the transaction, its shares will cease trading on the NYSE American and the company will operate as a private entity. The company’s statements describe this change as a way to restructure the business and pursue its objectives without the requirements associated with being a public company. Until the merger closes, Adams continues to report financial and operational results and to file or reference materials with the U.S. Securities and Exchange Commission as indicated in its transaction-related communications.

Frequently asked questions about Adams Resources & Energy, Inc. (AE)

• What does Adams Resources & Energy, Inc. do?
  

  According to the company’s public releases, Adams Resources & Energy, Inc. is engaged in crude oil marketing, transportation, terminalling and storage, tank truck transportation of liquid chemicals and dry bulk, interstate bulk transportation logistics of crude oil, condensate, fuels, oils and other petroleum products, and recycling and repurposing of off-specification fuels, lubricants, crude oil and other chemicals through its subsidiaries.

• Which subsidiaries operate under Adams Resources & Energy, Inc.?
  

  The company states that its activities are conducted through GulfMark Energy, Inc., Service Transport Company, Victoria Express Pipeline, LLC, GulfMark Terminals, LLC, Phoenix Oil, Inc. and Firebird Bulk Carriers, Inc.

• In which industry and sector does Adams operate?
  

  Based on the provided classification, Adams operates in the Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) industry within the Wholesale Trade sector.

• How does Adams describe its revenue categories?
  

  In its 2024 quarterly financial releases, Adams reports revenues in four categories: marketing, transportation, pipeline and storage, and logistics and repurposing.

• What non-GAAP financial measures does Adams report?
  

  The company reports EBITDA and Adjusted EBITDA as non-GAAP financial measures. It explains that EBITDA is defined as net earnings (or losses) before interest income or expense, income tax and depreciation and amortization expense, and that Adjusted EBITDA further adjusts for inventory liquidation gains and valuation losses. Reconciliations to net earnings (losses) are provided in its releases.

• Does Adams Resources & Energy, Inc. pay dividends?
  

  In its 2024 first, second and third quarter announcements, Adams states that its Board of Directors declared quarterly cash dividends of $0.24 per common share and that the company paid dividends consistent with these declarations.

• What is the announced transaction with an affiliate of Tres Energy LLC?
  

  On November 12, 2024, Adams announced that it entered into a definitive agreement to be acquired by an affiliate of Tres Energy LLC in an all-cash transaction. The company stated that, upon completion of the transaction, its shares will no longer trade on the NYSE American and Adams will become a private company.

• Have Adams stockholders approved the proposed acquisition?
  

  In a release dated January 29, 2025, Adams reported that its stockholders voted at a special meeting to approve the pending acquisition of the company by an affiliate of Tres Energy LLC, with the merger expected to close subject to customary closing conditions.

• What stock exchange does Adams Resources & Energy, Inc. trade on?
  

  The company identifies its common stock as trading on the NYSE American under the ticker symbol AE. In connection with the announced acquisition, Adams has stated that its shares will no longer trade on the NYSE American after completion of the transaction.

• Where can investors find more detailed financial information about Adams?
  

  The company’s earnings releases reference its consolidated financial statements, including statements of operations, balance sheets and cash flows, and note that additional information is available in reports filed with the U.S. Securities and Exchange Commission, as described in its transaction-related communications.