"The operations of Adams Resources & Energy, Inc. were originally founded by K. S. ""Bud"" Adams Jr. in 1947 as a private concern. The Company completed its initial public offering in 1974 and Mr. Adams continues to serve as Chairman and Chief Executive Officer. The Company and its subsidiaries presently have over 700 employees.
The Company's Ada Resources, Inc. subsidiary markets branded and unbranded refined petroleum products, such as motor fuels and lubricants. Begun in 1946 as a provider to the then booming branded service station market, Ada Resources, Inc. has evolved into a wholesale supplier of motor fuels and lubricants primarily to the marine, railroad and refinery industries. The company is continually seeking entry into new and more innovative markets. For example, we are now participating in petroleum product supply for the support of refinery / chemical plant turn-arounds. As we continue to look ahead, however, we have not forgotten the business base that brought us to where we are today. Ada Resources remains a viable and synergistic partner in the branded retail fuel industry. Integral to both the retail and industrial markets is the ability to supply fuel and lubricants from quality, high integrity sources. To that end, we continue to enjoy long-term contracts with a number of major branded suppliers, including ConocoPhillips, Citgo, and BP Castrol.
The Company's Adams Resources Marketing Ltd. subsidiary is a wholesale purchaser, distributor and marketer of natural gas. This operation focuses on the purchase of natural gas at the producer level and the Company distributes approximately 400 million cubic feet of natural gas per day to customers located in market regions from the Gulf Coast through the Northeast. Supply is concentrated among approximately 60 independent producers with the primary production area being the Gulf Coast of Texas and the offshore Gulf of Mexico region.
The Company's GulfMark Energy, Inc. subsidiary purchases crude oil and arranges sales and deliveries to refiners and other customers. Crude oil is acquired from independent producers primarily in Texas, Louisiana, and Michigan. GulfMark purchases approximately 65,000 barrels per day at the wellhead. In connection with its purchases of crude oil, the Company operates 75 tractor-trailer units and maintains over 50 pipeline inventory locations or injection points. GulfMark also has the ability to barge oil from nine oil storage facilities along the intercoastal waterway of Texas and Louisiana and maintains 200,000 barrels of storage capacity at certain dock facilities in order to access waterborne markets for its products.
The company's Service Transport subsidiary transports liquid chemicals on a ""for hire"" basis throughout the continental United States and Canada. With a fleet of 290 of the most advanced tractors available plus more than 450 trailer units, constant satellite communication capabilities and a comprehensive, integrated package of operations management software, Service Transport Company has emerged as a leading service provider to the bulk chemical industry.
The Company's Adams Resources Exploration Corporation subsidiary is actively engaged in the exploration and development of domestic oil and gas properties primarily along the Gulf Coast of Texas and Louisiana. In addition to its domestic oil and gas interests, the Company holds an undivided 40 percent interest in an offshore block in the United Kingdom sector of the Southern North Sea. The Company and its joint-interest partners are conducting seismic evaluations of the block and are hopeful that an exploration prospect will be identified and promoted to other investors for drilling of the first exploratory well."
