HOUSTON, April 20, 2017 /PRNewswire/ -- Adams
Resources & Energy, Inc. (NYSE MKT: AE) (the "Company")
announced that it has concluded its review of strategic
alternatives related to the Company's exploration and production
subsidiary, Adams Resources Exploration Corporation ("AREC").
AREC plans to file a voluntary petition for reorganization under
Chapter 11 of the Bankruptcy Code in the
United States Bankruptcy Court for the District of
Delaware and plans to conduct a
sale process. AREC has retained Oil and Gas Asset
Clearinghouse, LLC to advise it with respect to the sale
process. AREC primarily holds non-operated working interest
in approximately 470 wells located in the Permian Basin,
Haynesville Shale and across the Gulf Coast.
Over the past few years, the Company has de-emphasized its
upstream operations. The Company does not expect this Chapter
11 filing by its subsidiary to have a material adverse impact on
any of its core businesses. The Company plans to direct its
attention to its core businesses or other business development
initiatives. The Company continues to have no debt and
held approximately $87 million in
cash at the end of the fiscal year ended December 31, 2016.
The Company expects to announce its first quarter 2017 earnings
during the week of May 8, 2017.
The information in this release includes certain forward-looking
statements that are based on assumptions that in the future may
prove not to have been accurate. A number of factors could cause
actual results or events to differ materially from those
anticipated. Such factors include, among others, (a) general
economic conditions, (b) fluctuations in hydrocarbon prices and
margins, (c) variations between commodity contract volumes and
actual delivery volumes, (d) unanticipated environmental
liabilities or regulatory changes, (e) counterparty credit default,
(f) inability to obtain bank and/or trade credit support, (g)
availability and cost of insurance, (h) changes in tax laws, (i)
the availability of capital, (j) changes in regulations, (k)
results of current items of litigation, (l) uninsured items of
litigation or losses, (m) uncertainty in reserve estimates and cash
flows, (n) ability to replace oil and gas reserves, (o) security
issues related to drivers and terminal facilities, (p) commodity
price volatility, (q) demand for chemical based trucking
operations, (r) successful completion of drilling activity, (s)
financial soundness of customers and suppliers, (t) adverse
world economic conditions, and (u) successful completion of the
sale process of AREC. The majority of these risks are
described in the Company's reports that are on file with the
Securities and Exchange Commission.
Josh C. Anders (281) 974-9442
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SOURCE Adams Resources & Energy, Inc.