Adams Resources & Energy, Inc. ('AE”), a Delaware corporation organized
in 1973, and its subsidiaries (collectively, the Company”), are primarily
engaged in the business of crude oil marketing, tank truck transportation of
liquid chemicals and dry bulk, and oil and gas exploration and production. The
Company’s headquarters are located in 27,932 square feet of office space
located at 17 South Briar Hollow Lane Suite 100, Houston, Texas 77027 and the
telephone number of that address is (713) 881-3600.
Marketing Segment Subsidiary
Gulfmark Energy, Inc. ('Gulfmark”), a subsidiary of AE, purchases crude
oil and arranges sales and deliveries to refiners and other customers. Activity
is concentrated primarily onshore in Texas, Oklahoma, North Dakota, Michigan
and Louisiana. Gulfmark operates 156 tractor-trailer rigs and maintains over
120 pipeline inventory locations or injection stations. Gulfmark has the ability
to barge oil from four oil storage facilities along the intercoastal waterway
of Texas and Louisiana and maintains 425,000 barrels of storage capacity at
the dock facilities in order to access waterborne markets for its products.
During 2016, Gulfmark purchased approximately 72,900 barrels per day of crude
oil at the field (wellhead) level. Gulfmark delivers physical supplies to refiner
customers or enters into commodity exchange transactions from time to time to
protect from a decline in inventory valuation. During 2016, Gulfmark had sales
to four customers that comprised 18.2 percent, 16.5 percent, 15.9 percent and
10.6 percent, respectively, of total Company wide revenues. Management believes
alternative market outlets for its commodity sales are readily available and
a loss of any of these customers would not have a material adverse effect on
the Company’s operations.
Operating results for the marketing segment are sensitive to a number of factors.
Such factors include commodity location, grades of product, individual customer
demand for grades or location of product, localized market price structures,
availability of transportation facilities, actual delivery volumes that vary
from expected quantities, and the timing and costs to deliver the commodity
to the customer.
Transportation Segment Subsidiary
Service Transport Company ('STC”), a subsidiary of AE, transports liquid
chemicals and to a lesser extent dry bulk on a 'for hire” basis throughout
the continental United States and Canada. Transportation service is provided
to over 400 customers under multiple load contracts in addition to loads covered
under STC’s standard price list. STC operates 308 truck tractors of which
259 are Company owned with 49 independent owner-operator units. The Company
also owns and operates 558 tank trailers. In addition, STC operates truck terminals
in Houston, Corpus Christi, and Nederland, Texas as well as Baton Rouge (St.
Gabriel), Louisiana, St. Rose, Louisiana and Mobile (Saraland), Alabama. Transportation
operations are headquartered at a terminal facility situated on 26.5 Company-owned
acres in Houston, Texas. This property includes maintenance facilities, an office
building, tank wash rack facilities and a water treatment system. The St. Gabriel,
Louisiana terminal is situated on 11.5 Company-owned acres and includes an office
building, maintenance bays and tank cleaning facilities. Pursuant to regulatory
requirements, STC holds a Hazardous Materials Certificate of Registration issued
by the United States Department of Transportation ('DOT”).
STC is a recognized certified partner with the American Chemistry Council’s
Responsible Care Management System; the scope of this RCMS certification covers
the carriage of bulk liquids throughout STC’s area of operations as well
as the tank trailer cleaning facilities and equipment maintenance. STC’s
quality management process is one of its major assets. The practice of using
statistical process control covering safety, on-time performance and customer
satisfaction aids continuous improvement in all areas of quality service. The
American Chemistry Responsible Care Partners© serve the chemical industry
and implement and monitor the seven Codes of Management Practices. The seven
codes address compliance and continuing improvement in (1) Community Awareness
and Emergency Response, (2) Pollution Prevention, (3) Process Safety, (4) Distribution,
(5) Employee Health and Safety, (6) Product Stewardship, and (7) Security.
Oil and Gas Segment Subsidiary
Adams Resources Exploration Corporation ('AREC”), a subsidiary of AE,
is in the exploration and development of domestic oil and natural gas properties
primarily in the Permian Basin of West Texas and the Haynesville Shale. AREC’s
offices are maintained in Houston and the Company holds an interest in 470 producing
wells of which 6 are Company operated. The Company is currently considering
strategic alternatives related to the oil and gas exploration and development
subsidiary.
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