ADAMS RESOURCES & ENERGY, INC. INVESTOR PRESENTATION
MAY 2024
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team (including information published by third parties). When used in this presentation, words such as "anticipate," "project," "expect," "plan," "seek," "goal," "estimate," "forecast," "intend," "could," "should," "will," "believe," "may," "scheduled", "pending", "potential" and similar expressions and statements regarding our plans and objectives for future operations, are intended to identify forward-looking statements.
Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. You should not put undue reliance on any forward-looking statements, which speak only as of their dates. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expected, including insufficient cash from operations, adverse market conditions, governmental regulations, the possibility that tax or other costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors discussed in our latest filings with the Securities and Exchange Commission.
All forward-looking statements attributable to Adams Resources & Energy, Inc. or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained herein, in such filings and in our future periodic reports filed with the Securities and Exchange Commission. Except as required by law, we do not intend to update or revise our forward- looking statements, whether as a result of new information, future events or otherwise.
EXECUTIVES
Kevin Roycraft | Tracy Ohmart |
Chief Executive Officer & President/Director | Executive Vice President, |
Chief Financial Officer & Treasurer |
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ADAMS RESOURCES & ENERGY, INC.
HISTORICALLY PEER-LEADING BALANCE SHEET
CONSERVATIVE BALANCE SHEET
INFRASTRUCTURE TO SUPPORT GROWTH
DIVERSIFIED BUSINESS UNITS
LEVERAGED HIGHEST RETURN BASINS
STABLE DIVIDEND
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OVERVIEW & CURRENT OPERATIONS
Adams Resources & Energy, Inc. ("Adams" or "AE") is a transportation and logistics company serving the energy and chemical sectors.
Founded in 1947 by the late K.S. "Bud" Adams, Legendary owner of the Houston Oilers and Tennessee Titans. Publicly traded company since 1974 (NYSE AMERICAN: AE) with a conservative philosophy.
Current operations include:
ADAMS RESOURCES - OVERVIEW
Adams Resources & Energy, Inc. (AE) consistently pays a meaningful dividend and is well positioned for further diversification and strategic growth opportunities.
Adams has $16.750MM of long-term debt (does not include operating and finance leases), $2.5MM of short term debt and ~$36.6MM in unrestricted cash as of March 31, 2024.
Adams operates in four lines of business:
- Crude oil marketing, transportation and storage (GulfMark Energy, Inc.)
- Long haul trucking of chemicals and dry bulk materials (Service Transport Company)
- Pipeline transportation, terminalling and storage of crude oil (VEX Pipeline & GulfMark Terminals)
- Third party crude oil transportation logistics and off-spec hydrocarbon recycling and repurposing (Firebird Bulk Carriers & Phoenix Oil)
Three-year operating cash flow before working capital of ~$20MM - $31MM per year.
AE paid a dividend of $0.96 per share for 2020-2023, $0.94 per share for 2019 and $0.88 per share for 2014-2018.
AE anticipates paying a dividend of $0.96 per share in 2024.
EBITDA VS. OIL PRICE
$40,000 | $160.00 | |||||||
$35,000 | $140.00 | |||||||
$30,000 | $120.00 | |||||||
$25,000 | $100.00 | |||||||
$20,000 | $80.00 | |||||||
$15,000 | $60.00 | |||||||
$10,000 | $40.00 | |||||||
$5,000 | $20.00 | |||||||
$0 | $0.00 | |||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Q1 |
2024 |
EBITDA(2) (in 000's) | Price of Oil(1) |
- Prices based upon lowest monthly average price during year.
- EBITDA is defined as Earnings (Losses) before interest, income taxes, depreciation and amortization.
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CASH/DEBT POSITION AS OF MARCH 31, 2024
$36.6MM
$16.750MM
$2.5MM
LONG TERM DEBT | SHORT TERM DEBT | CASH |
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CASH POSITION
$120,000 | ||||||||||||
$100,000 | ||||||||||||
$80,000 | ||||||||||||
$60,000 | ||||||||||||
$40,000 | ||||||||||||
$20,000 | ||||||||||||
$0 | ||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Q1 2024 |
Cash | $45MM KSA Shares | $31MM Phoenix/Firebird | $19MM Vex/CTL Acquisition |
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ACQUISITIONS
2018 | 2019 | 2020 | 2020 | 2022 | 2022 |
May 2019
October 2018 | Service Transport | |
Company acquires | ||
GulfMark Energy | the assets of EH | |
Transport, adding | ||
acquires "Red River" | ||
39 tractors and 51 | ||
Trucking, expanding | ||
trailers to the STC | ||
its operating area | ||
fleet. In addition to | ||
into North Texas | ||
hauling chemical | ||
and South Central | ||
products, the | ||
Oklahoma. This | ||
acquisition of EH | ||
acquisition added | ||
also added new | ||
113 tractors and | ||
commodities and | ||
126 trailers to the | ||
customers hauling | ||
GulfMark fleet. | ||
LP gas and asphalt. | ||
$10.3MM | $6.4MM | |
June 2020
Service Transport Company acquires the assets of CTL Transportation, expanding the STC footprint into Florida, Georgia, Missouri, Illinois and Ohio, adding 163 tractors and 328 trailers to the STC fleet.
$9.2MM
October 2020
Gulfmark Energy acquires Victoria Express Pipeline, LLC (VEX) from EnLink Midstream Operating, L.P. This pipeline system connects DeWitt County to Victoria County, TX through 56 miles of 12" pipeline moving crude oil. This system also includes 350,000 barrels of above ground storage capacity along with two 8-bay truck offload stations and access to two docks at the Port of Victoria. The VEX system has
a current capacity to move 90,000 barrels per day.
$20.0MM
August 2022
GulfMark Asset Holdings acquires Phoenix Oil and Firebird Bulk Carriers. Firebird is a third-party interstate bulk carrier of crude oil and other petroleum products, with 123 tractors. Phoenix recycles and repurposes off-spec fuels, lubricants and other chemicals.
$39.7MM
October 2022
Adams Resources & Energy repurchases the Adams' common stock owned by KSA Industries and associated Adams' family members affiliated with KSA. The purchase price was approximately $70 million, representing 44.2% of the total shares outstanding. Following the transaction, the Company had 2,452,404 shares
of common stock outstanding.
$69.9MM
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Disclaimer
Adams Resources & Energy Inc. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 13:22:12 UTC.
