Thomas Bachrach, CFA
Long/short equity, special situations, growth at reasonable price, value

Adams Resources: The Cash Rich, No Debt Oil & Gas Play

Adams Resources & Energy, Inc. (NYSEMKT:AE) was founded by the late Bud Adams, better known for his ownership of the Tennessee Titans.

(click to enlarge) (Source: AP)

Adams participates in the oil and gas industry via three business segments: Marketing, Transportation and Oil & Gas Production.

  • Marketing (GulfMark Energy, Inc.) - This segment purchases crude oil from third parties at field level and pipeline pooling points, primarily in Texas and Louisiana and to a lesser extent in Michigan and North Dakota. Crude oil is subsequently stored in tanks and third-party pipelines before being sold and delivered to refiners and other customers. Oil inventory is turned over approximately every three days.
  • Transportation (Service Transport Company ‟STC") - This
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