10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___  to  ___.

Commission file number: 1-07908

ADAMS RESOURCES & ENERGY, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	74-1753147
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

17 South Briar Hollow Lane, Suite 100

Houston, Texas 77027

(Address of Principal Executive Offices, including Zip Code)

(713) 881-3600

(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 Par Value	AE	NYSE American LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☑	Smaller reporting company	☑
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

A total of 4,251,015 shares of Common Stock were outstanding at May 1, 2021.

Table of Contents

ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page No.
PART I.  FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets	2
	Unaudited Condensed Consolidated Statements of Operations	3
	Unaudited Condensed Consolidated Statements of Cash Flows	4
	Unaudited Condensed Consolidated Statements of Shareholders’ Equity	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures		39

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	March 31,		December 31,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	58,985	$	39,293
Restricted cash	12,377		12,772
Accounts receivable, net of allowance for doubtful
accounts of $113 and $114, respectively	111,068		99,799
Accounts receivable – related party	13		—
Inventory	29,223		19,336
Derivative assets	576		61
Income tax receivable	11,638		13,288
Prepayments and other current assets	3,621		2,964
Total current assets	227,501		187,513
Property and equipment, net	90,643		94,134
Operating lease right-of-use assets, net	7,774		8,051
Intangible assets, net	3,902		4,106
Other assets	2,482		2,383
Total assets	$	332,302	$	296,187
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	122,155	$	85,991
Derivative liabilities	546		52
Current portion of finance lease obligations	4,494		4,112
Current portion of operating lease liabilities	2,172		2,050
Other current liabilities	19,888		22,343
Total current liabilities	149,255		114,548
Other long-term liabilities:
Asset retirement obligations	2,325		2,308
Finance lease obligations	12,202		11,507
Operating lease liabilities	5,603		6,000
Deferred taxes and other liabilities	11,900		12,732
Total liabilities	181,285		147,095
Commitments and contingencies (Note 14)
Shareholders’ equity:
Preferred stock – $1.00 par value, 960,000 shares
authorized, none outstanding	—		—
Common stock – $0.10 par value, 7,500,000 shares
authorized, 4,251,015 and 4,243,716 shares outstanding, respectively	423		423
Contributed capital	13,494		13,340
Retained earnings	137,100		135,329
Total shareholders’ equity	151,017		149,092
Total liabilities and shareholders’ equity	$	332,302	$	296,187

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended
	March 31,
	2021		2020
Revenues:
Marketing	$	304,023	$	337,221
Transportation	21,235		16,256
Pipeline and storage	233		—
Total revenues	325,491		353,477
Costs and expenses:
Marketing	295,207		352,865
Transportation	17,460		13,185
Pipeline and storage	544		—
General and administrative	3,376		2,894
Depreciation and amortization	5,053		4,473
Total costs and expenses	321,640		373,417
Operating earnings (losses)	3,851		(19,940)
Other income (expense):
Interest and other income	134		365
Interest expense	(220)		(150)
Total other (expense) income, net	(86)		215
Earnings (Losses) before income taxes	3,765		(19,725)
Income tax (provision) benefit	(957)		8,298
Net earnings (losses)	$	2,808	$	(11,427)
Earnings (Losses) per share:
Basic net earnings (losses) per common share	$	0.66	$	(2.70)
Diluted net earnings (losses) per common share	$	0.66	$	(2.69)
Dividends per common share	$	0.24	$	0.24

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Three Months Ended
	March 31,
	2021		2020
Operating activities:
Net earnings (losses)	$	2,808	$	(11,427)
Adjustments to reconcile net earnings (losses) to net cash
provided by (used in) operating activities:
Depreciation and amortization	5,053		4,473
Gains on sales of property	(83)		(140)
Provision for doubtful accounts	(1)		(24)
Stock-based compensation expense	185		134
Deferred income taxes	(829)		(2,689)
Net change in fair value contracts	(21)		(19)
Changes in assets and liabilities:
Accounts receivable	(11,268)		41,617
Accounts receivable/payable, affiliates	(13)		1
Inventories	(9,887)		16,386
Income tax receivable	1,650		(5,530)
Prepayments and other current assets	(657)		253
Accounts payable	36,127		(68,384)
Accrued liabilities	51		1,506
Other	(114)		(3)
Net cash provided by (used in) operating activities	23,001		(23,846)
Investing activities:
Property and equipment additions	(170)		(2,212)
Proceeds from property sales	1,005		502
Insurance and state collateral (deposits) refunds	—		1,128
Net cash provided by (used in) investing activities	835		(582)
Financing activities:
Principal repayments of finance lease obligations	(1,014)		(532)
Payment for financed portion of VEX acquisition	(2,500)		—
Payment of contingent consideration liability	—		(54)
Dividends paid on common stock	(1,025)		(1,016)
Net cash used in financing activities	(4,539)		(1,602)
Increase (Decrease) in cash and cash equivalents, including restricted cash	19,297		(26,030)
Cash and cash equivalents, including restricted cash, at beginning of period	52,065		122,255
Cash and cash equivalents, including restricted cash, at end of period	$	71,362	$	96,225

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands, except per share data)

							Total
	Common		Contributed		Retained		Shareholders’
	Stock		Capital		Earnings		Equity
Balance, January 1, 2021	$	423	$	13,340	$	135,329	$	149,092
Net earnings	—		—		2,808		2,808
Stock-based compensation expense	—		185		—		185
Cancellation of shares withheld to
cover taxes upon vesting	—		(31)		—		(31)
Dividends declared:
Common stock, $0.24/share	—		—		(1,019)		(1,019)
Awards under LTIP, $0.24/share	—		—		(18)		(18)
Balance, March 31, 2021	$	423	$	13,494	$	137,100	$	151,017

							Total
	Common		Contributed		Retained		Shareholders’
	Stock		Capital		Earnings		Equity
Balance, January 1, 2020	$	423	$	12,778	$	138,440	$	151,641
Net losses	—		—		(11,427)		(11,427)
Stock-based compensation expense	—		134		—		134
Dividends declared:
Common stock, $0.24/share	—		—		(1,016)		(1,016)
Awards under LTIP, $0.24/share	—		—		(6)		(6)
Balance, March 31, 2020	$	423	$	12,912	$	125,991	$	139,326

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Basis of Presentation

Organization

Adams Resources & Energy, Inc. is a publicly traded Delaware corporation organized in 1973, the common shares of which are listed on the NYSE American LLC under the ticker symbol “AE”. Through our subsidiaries, we are primarily engaged in crude oil marketing, transportation, terminalling and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico, and with fifteen terminals across the U.S. Unless the context requires otherwise, references to “we,” “us,” “our” or “Company” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries.  

We operate and report in three business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; and (iii) pipeline transportation, terminalling and storage of crude oil. See Note 7 for further information regarding our business segments.

Basis of Presentation

Our results of operations for the three months ended March 31, 2021 are not necessarily indicative of results expected for the full year of 2021. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals necessary for fair presentation.  The condensed consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the rules of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) filed with the SEC on March 5, 2021. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of our financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. While we believe the estimates and assumptions used in the preparation of these condensed consolidated financial statements are appropriate, actual results could differ from those estimates.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2. Summary of Significant Accounting Policies

Cash, Cash Equivalents and Restricted Cash

At March 31, 2021 and December 31, 2020, $5.1 million and $5.1 million, respectively, of the restricted cash balance represented amounts held in a segregated bank account by Wells Fargo as collateral for outstanding letters of credit. At March 31, 2021 and December 31, 2020, $1.5 million and $1.5 million, respectively, of the restricted cash balance related to the initial capitalization of our captive insurance company formed in late 2020 and $5.7 million and $6.1 million, respectively, represented the amount paid to our captive insurance company for insurance premiums.

The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported in the unaudited condensed consolidated balance sheets that totals to the amounts shown in the unaudited condensed consolidated statements of cash flows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Cash and cash equivalents	$	58,985	$	39,293
Restricted cash	12,377		12,772
Total cash, cash equivalents and restricted cash shown in the
unaudited condensed consolidated statements of cash flows	$	71,362	$	52,065

Common Shares Outstanding

The following table reconciles our outstanding common stock for the periods indicated:

	Common
	shares
Balance, January 1, 2021	4,243,716
Vesting of restricted stock unit awards	8,544
Shares withheld to cover taxes upon vesting of restricted stock unit awards	(1,245)
Balance, March 31, 2021	4,251,015

Earnings Per Share

Basic earnings (losses) per share is computed by dividing our net earnings (losses) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (losses) per share is computed by giving effect to all potential shares of common stock outstanding, including our stock related to unvested restricted stock unit awards. Unvested restricted stock unit awards granted under the Adams Resources & Energy, Inc. 2018 Long-Term Incentive Plan (“2018 LTIP”) are not considered to be participating securities as the holders of these shares do not have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares (see Note 11 for further discussion).

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

A reconciliation of the calculation of basic and diluted earnings (losses) per share was as follows for the periods indicated (in thousands, except per share data):

	Three Months Ended
	March 31,
	2021		2020
Earnings (losses) per share — numerator:
Net earnings (losses)	$	2,808	$	(11,427)
Denominator:
Basic weighted average number of shares outstanding	4,246		4,236
Basic earnings (losses) per share	$	0.66	$	(2.70)
Diluted earnings (losses) per share:
Diluted weighted average number of shares outstanding:
Common shares	4,246		4,236
Restricted stock unit awards	18		12
Performance share unit awards (1)	7		2
Total diluted shares	4,271		4,250
Diluted earnings (losses) per share	$	0.66	$	(2.69)

_______________

(1)The dilutive effect of performance share awards are included in the calculation of diluted earnings per share when the performance share award performance conditions have been achieved.

Fair Value Measurements

The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are recorded at fair value based on market quotations from actively traded liquid markets.

A three-tier hierarchy has been established that classifies fair value amounts recognized in the financial statements based on the observability of inputs used to estimate these fair values.  The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3).  At each balance sheet reporting date, we categorize our financial assets and liabilities using this hierarchy.

Fair value contracts consist of derivative financial instruments and are recorded as either an asset or liability measured at its fair value. Changes in fair value are recognized immediately in earnings unless the derivatives qualify for, and we elect, cash flow hedge accounting. We had no contracts designated for hedge accounting during any current reporting periods (see Note 10 for further information).

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Income Taxes

Income taxes are accounted for using the asset and liability method. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of these items and their respective tax basis.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted and signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating losses (“NOL”) incurred in tax years 2018, 2019 and 2020 to offset 100 percent of taxable income and be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.

We have determined that the NOL carryback provision in the CARES Act would result in a cash benefit to us for the fiscal years 2018 and 2019. We carried back our NOL for fiscal year 2018 to 2013, and in June 2020, we received a cash refund of approximately $2.7 million. We have income tax receivables at March 31, 2021 of approximately $3.7 million for the benefit of carrying back the NOL for the fiscal year 2019 to 2014 and approximately $6.8 million for the benefit of carrying back the NOL for the fiscal year 2020 to 2015 and 2016. As we are carrying the losses back to years beginning before January 1, 2018, the receivables were recorded at the previous 35 percent federal tax rate rather than the current statutory rate of 21 percent.

Inventory

Inventory consists of crude oil held in storage tanks and at third-party pipelines as part of our crude oil marketing and pipeline and storage operations. Crude oil inventory is carried at the lower of cost or net realizable value. At the end of each reporting period, we assess the carrying value of our inventory and make adjustments necessary to reduce the carrying value to the applicable net realizable value. Any resulting adjustments are a component of marketing costs and expenses or pipeline and storage expenses on our consolidated statements of operations. During the three months ended March 31, 2020, we recorded a charge of $24.2 million related to the write-down of our crude oil inventory in our crude oil marketing segment due to declines in prices.

Property and Equipment

Property and equipment is recorded at cost. Expenditures for additions, improvements and other enhancements to property and equipment are capitalized, and minor replacements, maintenance and repairs that do not extend asset life or add value are charged to expense as incurred. When property and equipment assets are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in results of operations in operating costs and expenses for the respective period. Property and equipment, except for land, is depreciated using the straight-line method over the estimated average useful lives ranging from two to thirty-nine years.

We review our long-lived assets for impairment whenever there is evidence that the carrying value of these assets may not be recoverable. Any impairment recognized is permanent and may not be restored. Property and equipment is reviewed at the lowest level of identifiable cash flows. For property and equipment requiring impairment, the fair value is estimated based on an internal discounted cash flow model of future cash flows.

See Note 5 for additional information regarding our property and equipment.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Stock-Based Compensation

We measure all share-based payment awards, including the issuance of restricted stock unit awards and performance share unit awards to employees and board members, using a fair-value based method. The cost of services received from employees and non-employee board members in exchange for awards of equity instruments is recognized in the consolidated statements of operations based on the estimated fair value of those awards on the grant date and is amortized on a straight-line basis over the requisite service period. The fair value of restricted stock unit awards and performance share unit awards is based on the closing price of our common stock on the grant date. We account for forfeitures as they occur. See Note 11 for additional information regarding our 2018 LTIP.

Note 3. Revenue Recognition

Revenue Disaggregation

The following table disaggregates our revenue by segment and by major source for the periods indicated (in thousands):

	Reporting Segments
	Marketing		Transportation		Pipeline and storage		Total
Three Months Ended March 31, 2021
Revenues from contracts with customers	$	297,475	$	21,235	$	233	$	318,943
Other (1)	6,548		—		—		6,548
Total revenues	$	304,023	$	21,235	$	233	$	325,491
Timing of revenue recognition:
Goods transferred at a point in time	$	297,475	$	—	$	—	$	297,475
Services transferred over time	—		21,235		233		21,468
Total revenues from contracts with customers	$	297,475	$	21,235	$	233	$	318,943
Three Months Ended March 31, 2020
Revenues from contracts with customers	$	319,717	$	16,256	$	—	$	335,973
Other (1)	17,504		—		—		17,504
Total revenues	$	337,221	$	16,256	$	—	$	353,477
Timing of revenue recognition:
Goods transferred at a point in time	$	319,717	$	—	$	—	$	319,717
Services transferred over time	—		16,256		—		16,256
Total revenues from contracts with customers	$	319,717	$	16,256	$	—	$	335,973

_______________

(1)Other crude oil marketing revenues are recognized under ASC 815, Derivatives and Hedging, and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty.

Other Crude Oil Marketing Revenue

Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these contracts are marked-to-market and recorded on a net revenue basis in the accompanying consolidated financial statements.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying consolidated financial statements.

Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Revenue gross-up	$	134,866	$	157,439

Note 4. Prepayments and Other Current Assets

The components of prepayments and other current assets were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Insurance premiums	$	793	$	690
Vendor prepayment	1,690		1,085
Rents, licenses and other	1,138		1,189
Total prepayments and other current assets	$	3,621	$	2,964

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 5. Property and Equipment

The historical costs of our property and equipment and related accumulated depreciation and amortization balances were as follows at the dates indicated (in thousands):

	Estimated
	Useful Life	March 31,		December 31,
	in Years	2021		2020
Tractors and trailers	5 – 6	$	101,535	$	101,813
Field equipment	2 – 5	22,318		22,139
Finance lease ROU assets (1)	3 – 6	22,357		20,266
Pipeline and related facilities	20 – 25	21,275		21,265
Linefill and base gas (2)	N/A	3,333		3,333
Buildings	5 – 39	14,977		14,977
Office equipment	2 – 5	1,905		1,893
Land	N/A	1,790		1,790
Construction in progress	N/A	716		1,626
Total		190,206		189,102
Less accumulated depreciation and amortization		(99,563)		(94,968)
Property and equipment, net		$	90,643	$	94,134

_______________

(1)Our finance lease right-of-use (“ROU)” assets arise from leasing arrangements for the right to use various classes of underlying assets including tractors, trailers, a tank storage and throughput arrangement and office equipment (see Note 13 for further information). Accumulated amortization of the assets presented as “Finance lease ROU assets” was $6.2 million and $5.0 million at March 31, 2021 and December 31, 2020, respectively.

(2)Linefill and base gas represents crude oil in the VEX pipeline and storage tanks we own, and the crude oil is recorded at historical cost.

Components of depreciation and amortization expense were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Depreciation and amortization, excluding amounts under finance leases	$	3,913	$	3,920
Amortization of property and equipment under finance leases	1,140		553
Total depreciation and amortization	$	5,053	$	4,473

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 6. Other Assets

Components of other assets were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Amounts associated with liability insurance program:
Insurance collateral deposits	$	714	$	714
Excess loss fund	617		617
Accumulated interest income	459		449
Other amounts:
State collateral deposits	42		31
Materials and supplies	460		488
Other	190		84
Total other assets	$	2,482	$	2,383

We have established certain deposits to support participation in our liability insurance program and remittance of state crude oil severance taxes and other state collateral deposits. Insurance collateral deposits are held by the insurance company to cover past or potential open claims based upon a percentage of the maximum assessment under our insurance policies. Insurance collateral deposits are invested at the discretion of our insurance carrier. Excess amounts in our loss fund represent premium payments in excess of claims incurred to date that we may be entitled to recover through settlement or commutation as claim periods are closed. Interest income is earned on the majority of amounts held by the insurance companies and will be paid to us upon settlement of policy years.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 7. Segment Reporting

We operate and report in three business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; and (iii) pipeline transportation, terminalling and storage of crude oil.

Financial information by reporting segment was as follows for the periods indicated (in thousands):

	Reporting Segments
	Marketing		Transportation		Pipeline and storage		Other		Total
Three Months Ended March 31, 2021
Segment revenues (1)	$	304,023	$	21,268	$	419	$	—	$	325,710
Less: Intersegment revenues (1)	—		(33)		(186)		—		(219)
Revenues	$	304,023	$	21,235	$	233	$	—	$	325,491
Segment operating earnings (losses) (2)	7,018		774		(565)		—		7,227
Depreciation and amortization	1,798		3,001		254		—		5,053
Property and equipment additions (3)(4)(5)	210		(58)		10		8		170
Three Months Ended March 31, 2020
Segment revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Less: Intersegment revenues	—		—		—		—		—
Revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Segment operating earnings (losses) (2)	(17,651)		605		—		—		(17,046)
Depreciation and amortization	2,007		2,466		—		—		4,473
Property and equipment additions (3) (4)	2,032		41		—		139		2,212

_______________

(1)Segment revenues include intersegment amounts that are eliminated in operating costs and expenses in our unaudited condensed consolidated statements of operations. Intersegment activities are conducted at posted tariff rates where applicable, or otherwise at rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed.

(2)Our crude oil marketing segment’s operating (losses) earnings included inventory liquidation gains of $6.9 million and inventory valuation losses of $24.2 million for the three months ended March 31, 2021 and 2020, respectively.

(3)Our segment property and equipment additions do not include assets acquired under finance leases during the three months ended March 31, 2021. See Note 13 for further information.

(4)During the three months ended March 31, 2021 and 2020, we had $8.0 thousand and $0.1 million, respectively, of property and equipment additions for computer equipment and leasehold improvements at our corporate headquarters, which were not attributed or allocated to any of our reporting segments.

(5)During the three months ended March 31, 2021, we received a refund of approximately $0.3 million for amounts previously spent in our transportation segment, which has been reflected as a reduction in property and equipment additions.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Segment operating earnings (losses) reflect revenues net of operating costs and depreciation and amortization expense and are reconciled to earnings (losses) before income taxes, as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Segment operating earnings (losses)	$	7,227	$	(17,046)
General and administrative	(3,376)		(2,894)
Operating earnings (losses)	3,851		(19,940)
Interest and other income	134		365
Interest expense	(220)		(150)
Earnings (losses) before income taxes	$	3,765	$	(19,725)

Identifiable assets by business segment were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Reporting segment:
Marketing	$	153,723	$	128,441
Transportation	65,572		72,247
Pipeline and storage	24,290		24,541
Cash and other (1)	88,717		70,958
Total assets	$	332,302	$	296,187

_______________

(1)Other identifiable assets are primarily corporate cash, corporate accounts receivable, properties and operating lease right-of-use assets not identified with any specific segment of our business.

Accounting policies for transactions between reportable segments are consistent with applicable accounting policies as disclosed herein.

Note 8. Transactions with Affiliates

We enter into certain transactions in the normal course of business with affiliated entities including direct cost reimbursement for shared phone and administrative services. In addition, we lease our corporate office space in a building operated by 17 South Briar Hollow Lane, LLC, an affiliate of KSA Industries, Inc., which is an affiliated entity.

Activities with affiliates were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Affiliate billings to us	$	12	$	17
Billings to affiliates	1		1
Rentals paid to affiliate	174		122

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 9. Other Current Liabilities

The components of other current liabilities were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Accrued purchase price for VEX acquisition	$	7,500	$	10,000
Accrual for payroll, benefits and bonuses	5,865		6,575
Accrued automobile and workers’ compensation claims	3,913		3,171
Accrued medical claims	1,033		915
Other	1,577		1,682
Total other current liabilities	$	19,888	$	22,343

Note 10. Derivative Instruments and Fair Value Measurements

Derivative Instruments

In the normal course of our operations, our crude oil marketing segment purchases and sells crude oil. We seek to profit by procuring the commodity as it is produced and then delivering the material to the end users or the intermediate use marketplace. As typical for the industry, these transactions are made pursuant to the terms of forward month commodity purchase and/or sale contracts. Some of these contracts meet the definition of a derivative instrument, and therefore, we account for these contracts at fair value, unless the normal purchase and sale exception is applicable. These types of underlying contracts are standard for the industry and are the governing document for our crude oil marketing segment. None of our derivative instruments have been designated as hedging instruments.

At March 31, 2021, we had in place seven commodity purchase and sale contracts, of which five had a fair value associated with them as the contractual prices of crude oil were outside of the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately 740 barrels per day of crude oil during April 2021 through December 2021.

At December 31, 2020, we had in place six commodity purchase and sale contracts, of which three had a fair value associated with them as the contractual prices of crude oil were outside the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately 192 barrels per day of crude oil during January 2021 through December 2021.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheets were as follows at the dates indicated (in thousands):

	Balance Sheet Location and Amount
	Current		Other		Current		Other
	Assets		Assets		Liabilities		Liabilities
March 31, 2021
Asset derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	$	576	$	—	$	—	$	—
Liability derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	—		—		546		—
Less counterparty offsets	—		—		—		—
As reported fair value contracts	$	576	$	—	$	546	$	—
December 31, 2020
Asset derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	$	61	$	—	$	—	$	—
Liability derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	—		—		52		—
Less counterparty offsets	—		—		—		—
As reported fair value contracts	$	61	$	—	$	52	$	—

We only enter into commodity contracts with creditworthy counterparties and evaluate our exposure to significant counterparties on an ongoing basis. At March 31, 2021 and December 31, 2020, we were not holding nor have we posted any collateral to support our forward month fair value derivative activity. We are not subject to any credit-risk related trigger events. We have no other financial investment arrangements that would serve to offset our derivative contracts.

Forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated statements of operations were as follows for the periods indicated (in thousands):

	Gains (losses)
	Three Months Ended
	March 31,
	2021		2020
Revenues – marketing	$	20	$	19

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

The following tables set forth, by level with the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated (in thousands):

	Fair Value Measurements Using
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	and Liabilities		Inputs		Inputs		Counterparty
	(Level 1)		(Level 2)		(Level 3)		Offsets		Total
March 31, 2021
Derivatives:
Current assets	$	—	$	576	$	—	$	—	$	576
Current liabilities	—		(546)		—		—		(546)
Net value	$	—	$	30	$	—	$	—	$	30
December 31, 2020
Derivatives:
Current assets	$	—	$	61	$	—	$	—	$	61
Current liabilities	—		(52)		—		—		(52)
Net value	$	—	$	9	$	—	$	—	$	9

These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of these inputs requires judgments.

When determining fair value measurements, we make credit valuation adjustments to reflect both our own nonperformance risk and our counterparty’s nonperformance risk. When adjusting the fair value of derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements. Credit valuation adjustments utilize Level 3 inputs, such as credit scores to evaluate the likelihood of default by us or our counterparties. At March 31, 2021 and December 31, 2020, credit valuation adjustments were not significant to the overall valuation of our fair value contracts. As a result, applicable fair value assets and liabilities are included in their entirety in the fair value hierarchy.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 11. Stock-Based Compensation Plan

We have in place a long-term incentive plan in which any employee or non-employee director who provides services to us is eligible to participate. The 2018 LTIP, which is overseen by the Compensation Committee of our Board of Directors, provides for the grant of various types of equity awards, of which restricted stock unit awards and performance-based compensation awards have been granted. The maximum number of shares authorized for issuance under the 2018 LTIP is 150,000 shares, and the 2018 LTIP is effective until May 8, 2028. After giving effect to awards granted and forfeitures made under the 2018 LTIP, the achievement of performance factors through December 31, 2020, and assuming the potential achievement of the maximum amounts of the performance factors through March 31, 2021, a total of 37,761 shares were available for issuance.

Compensation expense recognized in connection with equity-based awards was as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Compensation expense	$	185	$	134

At March 31, 2021 and December 31, 2020, we had $62,900 and $50,800, respectively, of accrued dividend amounts for awards granted under the 2018 LTIP.

Restricted Stock Unit Awards

The following table presents restricted stock unit award activity for the periods indicated:

		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share (1)
Restricted stock unit awards at January 1, 2021	27,490	$	28.64
Granted (2)	26,369	$	29.70
Vested	(8,544)	$	24.83
Forfeited	—	$	—
Restricted stock unit awards at March 31, 2021	45,315	$	29.97

_______________

(1)Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2)The aggregate grant date fair value of restricted stock unit awards issued during 2021 was $0.8 million based on a grant date market price of our common shares ranging from $29.70 to $30.00 per share.

Unrecognized compensation cost associated with restricted stock unit awards was approximately $0.9 million at March 31, 2021. Due to the graded vesting provisions of these awards, we expect to recognize the remaining compensation cost for these awards over a weighted-average period of 1.7 years.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Performance Share Unit Awards

The following table presents performance share unit award activity for the periods indicated:

		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share (1)
Performance share unit awards at January 1, 2021	16,241	$	27.67
Granted (2)	12,205	$	29.70
Vested	—	$	—
Forfeited	—	$	—
Performance share unit awards at March 31, 2021	28,446	$	28.54

_______________

(1)Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2)The aggregate grant date fair value of performance share unit awards issued during 2021 was $0.4 million based on a grant date market price of our common shares of $29.70 per share and assuming a performance factor of 100 percent.

Unrecognized compensation cost associated with performance share unit awards was approximately $0.6 million at March 31, 2021. We expect to recognize the remaining compensation cost for these awards over a weighted-average period of 2.5 years.

Note 12. Supplemental Cash Flow Information

Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash paid for interest	$	220	$	150
Cash paid for federal and state income taxes	2		21
Non-cash transactions:
Change in accounts payable related to property and equipment additions	(44)		1,129
Property and equipment acquired under finance leases	2,091		—

See Note 13 for information related to other non-cash transactions related to leases.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 13. Leases

The following table provides the components of lease expense for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Finance lease cost:
Amortization of ROU assets	$	1,140	$	553
Interest on lease liabilities	110		74
Operating lease cost	623		679
Short-term lease cost	3,212		2,503
Variable lease cost	1		—
Total lease expense	$	5,086	$	3,809

The following table provides supplemental cash flow and other information related to leases for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	622	$	678
Operating cash flows from finance leases	109		105
Financing cash flows from finance leases	1,014		532
ROU assets obtained in exchange for new lease liabilities:
Finance leases	2,091		—
Operating leases	264		81

______________

(1)Amounts are included in Other operating activities on the unaudited condensed consolidated statements of cash flows.

The following table provides the lease terms and discount rates for the periods indicated:

	Three Months Ended
	March 31,
	2021	2020
Weighted-average remaining lease term (years):
Finance leases	4.10	2.78
Operating leases	4.32	4.58
Weighted-average discount rate:
Finance leases	2.8%	4.9%
Operating leases	4.2%	5.0%

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table provides supplemental balance sheet information related to leases at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Assets
Finance lease ROU assets (1)	$	16,202	$	15,251
Operating lease ROU assets	7,774		8,051
Liabilities
Current
Finance lease liabilities	4,494		4,112
Operating lease liabilities	2,172		2,050
Noncurrent
Finance lease liabilities	12,202		11,507
Operating lease liabilities	5,603		6,000

______________

(1)Amounts are included in Property and equipment, net on the unaudited condensed consolidated balance sheets.

The following table provides maturities of undiscounted lease liabilities at March 31, 2021 (in thousands):

	Finance		Operating
	Lease		Lease
Remainder of 2021	$	3,657	$	1,845
2022	3,942		2,128
2023	3,145		1,839
2024	2,350		1,702
2025	3,773		222
Thereafter	802		674
Total lease payments	17,669		8,410
Less: Interest	(973)		(635)
Present value of lease liabilities	16,696		7,775
Less: Current portion of lease obligation	(4,494)		(2,172)
Total long-term lease obligation	$	12,202	$	5,603

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table provides maturities of undiscounted lease liabilities at December 31, 2020 (in thousands):

	Finance		Operating
	Lease		Lease
2021	$	4,496	$	2,343
2022	3,562		2,002
2023	2,764		1,821
2024	1,969		1,700
2025	2,992		222
Thereafter	802		675
Total lease payments	16,585		8,763
Less: Interest	(966)		(713)
Present value of lease liabilities	15,619		8,050
Less: Current portion of lease obligation	(4,112)		(2,050)
Total long-term lease obligation	$	11,507	$	6,000

Note 14. Commitments and Contingencies

Insurance

We have accrued liabilities for estimated workers’ compensation and other casualty claims incurred based upon claim reserves plus an estimate for loss development and incurred but not reported claims. We self-insure a significant portion of expected losses relating to workers’ compensation, general liability and automobile liability, with a self-insured retention of $1.0 million. Insurance is purchased over our retention to reduce our exposure to catastrophic events. We also share 20 percent of the risk of loss, capped at $1.0 million for any claims in excess of $5.0 million. Estimates are recorded for potential and incurred outstanding liabilities for workers’ compensation, auto and general liability claims and claims that are incurred but not reported. Estimates are based on adjusters’ estimates, historical experience and statistical methods commonly used within the insurance industry that we believe are reliable. We have also engaged a third-party actuary to perform a review of our accrued liability for these claims as well as potential funded losses in our captive insurance company. Insurance estimates include certain assumptions and management judgments regarding the frequency and severity of claims, claim development and settlement practices and the selection of estimated loss among estimates derived using different methods. Unanticipated changes in these factors may produce materially different amounts of expense that would be reported under these programs.

On October 1, 2020, we elected to utilize a wholly owned insurance captive to insure the self-insured retention for our workers’ compensation, general liability and automobile liability insurance programs. All accrued liabilities associated with periods from October 1, 2017 through current were transferred to the captive.

We maintain excess property and casualty reinsurance programs with third-party insurers in an effort to limit the financial impact of significant events covered under these programs. Our operating subsidiaries pay premiums to both the excess and reinsurance carriers and our captive for the estimated losses based on an external actuarial analysis. These premiums held by our wholly owned captive are currently held in a restricted account, resulting in a transfer of risk from our operating subsidiaries to the captive.

We also maintain a self-insurance program for managing employee medical claims in excess of employee deductibles. As claims are paid, the liability is relieved. We also maintain third party insurance stop-loss coverage for individual medical claims exceeding a certain minimum threshold. In addition, we maintain $1.4 million of umbrella insurance coverage for annual aggregate medical claims exceeding approximately $7.5 million.

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ADAMS RESOURCES & ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Our accruals for automobile, workers’ compensation and medical claims were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Pre-funded premiums for losses incurred but not reported	$	55	$	55
Accrued automobile and workers’ compensation claims	3,913		3,171
Accrued medical claims	1,033		915

Litigation

From time to time as incidental to our operations, we may become involved in various lawsuits and/or disputes. Primarily as an operator of an extensive trucking fleet, we are a party to motor vehicle accidents, worker compensation claims and other items of general liability as would be typical for the industry. We are presently unaware of any claims against us that are either outside the scope of insurance coverage or that may exceed the level of insurance coverage and could potentially represent a material adverse effect on our financial position, results of operations or cash flows.

Note 15. Subsequent Event

On May 4, 2021, we entered into a Credit Agreement (“Credit Agreement”) with Wells Fargo Bank, National Association, as Agent and Issuing Lender, under which we may borrow an aggregate of up to $40.0 million under a revolving credit facility (the “Revolving Credit Facility”), which will mature on May 4, 2024, subject to our compliance with certain financial covenants.

For each borrowing under the Revolving Credit Facility, we can elect whether the loans bear interest at (i) the Base Rate plus Applicable Margin; or (ii) the LIBOR Rate plus Applicable Margin. Base Rate is the highest of (a) the Prime Rate, (b) the Federal Funds Rate, plus 0.50% and (c) LIBOR for an interest period of three months plus 1.00%. The Applicable Margin to be added to a Base Rate borrowing is 0.75%. The LIBOR Rate is (x) LIBOR (which shall not be less than 1.00%) divided by (y) 1.00 minus the Eurodollar Reserve Percentage. The Applicable Margin to be added to a LIBOR borrowing is 1.75%. A commitment fee of 0.25% per annum will accrue on the daily average unused amount of the commitments under the Revolving Credit Facility.

Under the Credit Agreement, we are required to maintain compliance with certain financial covenants, as described in the Credit Agreement, commencing with the quarter ending June 30, 2021. Our obligations under the Credit Agreement are secured by a pledge of substantially all of our personal property and substantially all of the personal property of certain of our other direct and indirect subsidiaries.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and accompanying Notes included in this quarterly report on Form 10-Q and the Audited Consolidated Financial Statements and related Notes, together with our discussion and analysis of financial position and results of operations, included in our annual report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”), as filed on March 5, 2021 with the U.S. Securities and Exchange Commission (“SEC”).  Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”).

Cautionary Statement Regarding Forward-Looking Information

This quarterly report on Form 10-Q contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and information that are based on our beliefs, as well as assumptions made by us and information currently available to us. When used in this document, words such as “anticipate,” “project,” “expect,” “plan,” “seek,” “goal,” “estimate,” “forecast,” “intend,” “could,” “should,” “would,” “will,” “believe,” “may,” “potential” and similar expressions and statements regarding our plans and objectives for future operations are intended to identify forward-looking statements. Although we believe that our expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that such expectations will prove to be correct.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions as described in more detail under Part I, Item 1A of our 2020 Form 10-K.  If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected.  You should not put undue reliance on any forward-looking statements.  The forward-looking statements in this quarterly report speak only as of the date hereof.  Except as required by federal and state securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or any other reason.

Overview of Business

Adams Resources & Energy, Inc., a Delaware corporation organized in 1973, and its subsidiaries are primarily engaged in crude oil marketing, transportation, terminalling and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico, and with fifteen terminals across the U.S. Unless the context requires otherwise, references to “we,” “us,” “our” or the “Company” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries.  

We operate and report in three business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; and (iii) pipeline transportation, terminalling and storage of crude oil. See Note 7 in the Notes to Unaudited Condensed Consolidated Financial Statements for further information regarding our business segments.

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Recent Developments and Outlook

COVID-19 Update

The global COVID-19 outbreak, associated countermeasures implemented by governments around the world, as well as increased business uncertainty, changes in consumer behavior related to the slowdown of the economy and the disruption of historical supply and demand patterns during 2020 resulted in a decline in our crude oil marketing operations and significantly decreased demand for our transportation services through global shutdowns and supply chain and operational disruptions at times during 2020. We took a variety of actions in 2020 to help mitigate the financial impact, including executing temporary cost saving measures and reducing our capital spending. As economic conditions improve, we are beginning to resume normal capital spending activities, but may implement additional cost saving measures in the future, if needed.

Our primary focus continues to be the safety of our employees and operations while providing uninterrupted service to our customers. We will continue to maintain the safety protocols we established, including encouraging our employees to seek vaccination when eligible. We are actively monitoring the global situation and its effect on our financial condition, liquidity, operations, customers, industry and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, we cannot estimate the length or gravity of the impacts of these events at this time. While we consider the overall effects of the pandemic to be temporary, if the pandemic and its economic effects continue, it may have a material adverse effect on our results of future operations, financial position and liquidity in 2021.

We plan to continue to operate our remaining business segments with internally generated cash flows during the remainder of 2021, but intend to remain flexible as the focus will be on increasing efficiencies and on business development opportunities. During the remainder of 2021, we plan to integrate our newly acquired terminals and leverage back haul opportunities with the continued efforts to diversify service offerings, and we plan to grow in new or existing areas with our crude oil marketing segment.

Credit Agreement

On May 4, 2021, we entered into a Credit Agreement (“Credit Agreement”) with Wells Fargo Bank, National Association, as Agent and Issuing Lender, under which we may borrow an aggregate of up to $40.0 million under a revolving credit facility (the “Revolving Credit Facility”), which will mature on May 4, 2024, subject to our compliance with certain financial covenants. See Note 15 in the Notes to Unaudited Condensed Consolidated Financial Statements for further information.

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Results of Operations

Crude Oil Marketing

Our crude oil marketing segment revenues, operating earnings (losses) and selected costs were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020		Change (1)
Revenues	$	304,023	$	337,221	(10	%)
Operating earnings (losses) (2)	7,018		(17,651)		(140	%)
Depreciation and amortization	1,798		2,007		(10	%)
Driver compensation	4,390		5,293		(17	%)
Insurance	1,977		2,474		(20	%)
Fuel	1,741		2,034		(14	%)

_______________

(1)Represents the percentage increase (decrease) from the prior year period.

(2)Operating earnings (losses) included inventory liquidation gains of $6.9 million and inventory valuation losses of $24.2 million for the three months ended March 31, 2021 and 2020, respectively.

Volume and price information were as follows for the periods indicated:

	Three Months Ended
	March 31,
	2021		2020
Field level purchase volumes – per day (1)
Crude oil – barrels	82,889		109,253
Average purchase price
Crude oil – per barrel	$	54.91	$	44.87

_______________

(1)Reflects the volume purchased from third parties at the field level of operations.

Crude oil marketing revenues decreased by $33.2 million during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020, primarily as a result of lower overall crude oil volumes, which decreased revenues by approximately $101.2 million, partially offset by an increase in the market price of crude oil, which increased revenues by approximately $68.0 million. The average crude oil price received was $44.87 during the three months ended March 31, 2020, which increased to $54.91 during the three months ended March 31, 2021. The 2020 period was impacted by a lower market price of crude oil due to the effects of the COVID-19 outbreak and the delay of OPEC to agree on crude oil production levels, both of which resulted in market disruptions that decreased the demand for and price of crude oil during the three months ended March 31, 2020. The 2021 period was impacted by increased demand for crude oil, but with less supply as production has not yet increased to previous levels, thus increasing the market price of crude oil. Volumes decreased during the 2021 period as compared to the prior year period as a result of increased competition for supply from shippers and marketers to fill obligations to pipelines with the lower crude oil production available.

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Our crude oil marketing operating earnings increased by $24.7 million during the three months ended March 31, 2021 as compared to the same period in 2020, primarily due to inventory valuation changes (as shown in the table below) and lower insurance, fuel and driver compensation costs and higher crude oil prices, partially offset by lower crude oil volumes.

Driver compensation decreased by $0.9 million during the three months ended March 31, 2021 as compared to the same period in 2020, primarily as a result of a decrease in the number of drivers required for volumes transported in the 2021 period as compared to the 2020 period.

Insurance costs decreased by $0.5 million during the three months ended March 31, 2021 as compared to the same period in 2020, primarily due to a lower driver count and lower miles driven in the 2021 period. Fuel costs decreased by $0.3 million during the three months ended March 31, 2021 as compared to the same period in 2020, consistent with a lower driver count and lower miles driven in the current period.

Depreciation and amortization expense decreased by $0.2 million during the three months ended March 31, 2021 as compared to the same period in 2020, primarily due to the timing of purchases and retirements of tractors and other field equipment during 2020 and 2021.

Field Level Operating Earnings (Non-GAAP Financial Measure). Inventory valuations and forward commodity contract (derivatives or mark-to-market) valuations are two significant factors affecting comparative crude oil marketing segment operating earnings (losses). As a purchaser and shipper of crude oil, we hold inventory in storage tanks and third-party pipelines. During periods of increasing crude oil prices, we recognize inventory liquidation gains while during periods of falling prices, we recognize inventory liquidation and valuation losses.

Crude oil marketing operating earnings (losses) can be affected by the valuations of our forward month commodity contracts (derivative instruments). These non-cash valuations are calculated and recorded at each period end based on the underlying data existing as of such date. We generally enter into these derivative contracts as part of a pricing strategy based on crude oil purchases at the wellhead (field level). The valuation of derivative instruments at period end requires the recognition of non-cash “mark-to-market” gains and losses.

The impact of inventory liquidations and valuations and derivative valuations on our crude oil marketing segment operating earnings (losses) is summarized in the following reconciliation of our non-GAAP financial measure for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
As reported segment operating earnings (losses) (1)	$	7,018	$	(17,651)
Add (subtract):
Inventory liquidation gains	(6,943)		—
Inventory valuation losses	—		24,215
Derivative valuation (gains) losses	(20)		(19)
Field level operating earnings (2)	$	55	$	6,545

_______________

(1)Our crude oil marketing segment’s operating earnings (losses) included inventory liquidation gains of $6.9 million and inventory valuation losses of $24.2 million for the three months ended March 31, 2021 and 2020, respectively.

(2)The use of field level operating earnings is unique to us, not a substitute for a GAAP measure and may not be comparable to any similar measures developed by industry participants. We utilize this data to evaluate the profitability of our operations.

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Field level operating earnings and field level purchase volumes depict our day-to-day operation of acquiring crude oil at the wellhead, transporting the product and delivering the product to market sales point. Field level operating earnings decreased during the three months ended March 31, 2021 as compared to the same period in 2020 primarily due to lower revenues resulting from lower crude oil volumes, partially offset by lower insurance, fuel and driver compensation costs.

We held crude oil inventory at a weighted average composite price as follows at the dates indicated (in barrels):

	March 31, 2021			December 31, 2020
		Average			Average
	Barrels	Price		Barrels	Price
Crude oil inventory	469,226	$	62.20	421,759	$	45.83

Prices received for crude oil have been volatile and unpredictable with price volatility expected to continue. See “Part I, Item 1A. Risk Factors” in our 2020 Form 10-K.

Transportation

Our transportation segment revenues, operating earnings and selected costs were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020		Change (1)
Revenues	$	21,235	$	16,256	31	%
Operating earnings	$	774	$	605	28	%
Depreciation and amortization	$	3,001	$	2,466	22	%
Driver commissions	$	3,596	$	2,607	38	%
Insurance	$	2,148	$	1,524	41	%
Fuel	$	1,875	$	1,281	46	%
Maintenance expense	$	913	$	831	10	%
Mileage (000s)	6,932		5,240		32	%

_______________

(1)Represents the percentage increase (decrease) from the prior year period.

Our revenue rate structure includes a component for fuel costs in which fuel cost fluctuations are largely passed through to the customer. Revenues, net of fuel cost, were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Total transportation revenue	$	21,235	$	16,256
Diesel fuel cost	(1,875)		(1,281)
Revenues, net of fuel cost (1)	$	19,360	$	14,975

_______________

(1) Revenues, net of fuel cost, is a non-GAAP financial measure and is utilized for internal analysis of the results of our transportation segment.

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Transportation revenues increased by $5.0 million during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020. Transportation revenues, net of fuel cost, increased by $4.4 million during the three months ended March 31, 2021, as compared to the prior year period. These increases were primarily due to increased revenues resulting from the acquisition of substantially all of the transportation assets of CTL Transportation, LLC, a subsidiary of Comcar Industries, Inc. (the “CTL acquisition”) in June 2020 and increased transportation rates, partially offset by a decrease in business activities of our customers as a result of the continuing effects of the COVID-19 outbreak and the effects of extreme weather conditions in February 2021. On June 26, 2020, we completed the CTL acquisition, which added new customers, new market areas and new product lines to our portfolio. As a result of the CTL acquisition, we added services to new and existing customers in six new market areas, including new terminals in Louisiana, Missouri, Ohio, Georgia and Florida. We also hired approximately 140 additional drivers in connection with this acquisition. We have also been working with our customers to increase our transportation rates, which has resulted in an increase in revenues as compared to the prior year period.

The adverse economic effects of the COVID-19 outbreak, including the continued restrictions in place by governments, changes in consumer behavior related to the slowdown of the economy and the disruption of historical supply and demand patterns, decreased demand for our transportation services during early to mid-2020. However, during the second half of 2020, demand for transportation of chemicals and personal care products, along with automotive plants coming back online and strong home building product lines, resulted in an increase in our transportation operations, which continued into the first quarter of 2021. In February 2021, a severe winter storm and resulting power outages affected Texas, which resulted in a significant decline in transportation services for over a week and a temporary loss of revenues. When production and customer facilities resumed normal operating conditions, demand for truck transportation increased to even higher levels as a result of the disruption of the supply chain normally serviced by rail capacity shifting to truck transportation in an effort to get products to the end users in a more timely manner.

Our transportation operating earnings increased by $0.2 million for the three months ended March 31, 2021 as compared to the same period in 2020, primarily due to higher revenues resulting from increased miles traveled primarily as a result of the CTL acquisition, partially offset by higher depreciation and amortization expense related to new assets placed into service and higher insurance, fuel costs, maintenance expense and other operating expenses.

Fuel costs increased by $0.6 million during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020, primarily as a result of the CTL acquisition, which increased the number of miles traveled during the 2021 period. Insurance costs increased by $0.6 million during the three months ended March 31, 2021 as compared to the same period in 2020, primarily due to the CTL acquisition which resulted in a higher driver count and increased miles driven in the 2021 period. Depreciation and amortization expense increased by $0.5 million during the three months ended March 31, 2021 as compared to the same period in 2020, primarily as a result of the CTL asset acquisition in June 2020 and the purchase and lease of new tractors and trailers in 2020.

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Pipeline and Storage

Our pipeline and storage segment revenues, operating losses and selected costs were as follows for the period indicated (in thousands):

	Three Months
	Ended
	March 31,
	2021
Segment revenues (1)	$	419
Less: Intersegment revenues (1)	(186)
Revenues	$	233
Operating losses	(565)
Depreciation and amortization	254
Insurance	210

_______________

(1)Segment revenues represent revenues from the crude oil marketing segment, which are eliminated in our unaudited condensed consolidated statements of operations.

We are continuing to focus on opportunities to increase our pipeline and storage capacity utilization, by identifying opportunities with our existing and new customers to increase volumes. In addition, we are exploring new connections for the pipeline system both upstream and downstream of the pipeline, to increase the crude oil supply and take-away capability of the system.

General and Administrative Expense

General and administrative expense increased by $0.5 million during the three months ended March 31, 2021 as compared to the same period in 2020, primarily due to higher salaries and wages, outside service costs, insurance costs and office rental costs.

Income Taxes

Provision for (benefit from) income taxes is based upon federal and state tax rates, and variations in amounts are consistent with taxable income (loss) in the respective accounting periods.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted and signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating losses (“NOL”) incurred in tax years 2018, 2019 and 2020 to offset 100 percent of taxable income and be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.

We have determined that the NOL carryback provision in the CARES Act would result in a cash benefit to us for the fiscal years 2018 and 2019. We carried back our NOL for fiscal year 2018 to 2013, and in June 2020, we received a cash refund of approximately $2.7 million. We have income tax receivables at March 31, 2021 of approximately $3.7 million for the benefit of carrying back the NOL for the fiscal year 2019 to 2014 and approximately $6.8 million for the benefit of carrying back the NOL for the fiscal year 2020 to 2015 and 2016. As we are carrying the losses back to years beginning before January 1, 2018, the receivables were recorded at the previous 35 percent federal tax rate rather than the current statutory rate of 21 percent.

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Liquidity and Capital Resources

Liquidity

Our liquidity is from our cash balance and net cash provided by operating activities and is therefore dependent on the success of future operations. If our cash inflow subsides or turns negative, we will evaluate our investment plan accordingly and remain flexible.

At March 31, 2021 and December 31, 2020, we had no bank debt or other forms of debenture obligations. On May 4, 2021, we entered into a Credit Agreement (“Credit Agreement”) with Wells Fargo Bank, National Association, as Agent and Issuing Lender, under which we may borrow an aggregate of up to $40.0 million under a revolving credit facility (the “Revolving Credit Facility”), which will mature on May 4, 2024, subject to our compliance with certain financial covenants. See Note 15 in the Notes to Unaudited Condensed Consolidated Financial Statements for further information.

We maintain cash balances in order to meet the timing of day-to-day cash needs. Cash and cash equivalents (excluding restricted cash) and working capital, the excess of current assets over current liabilities, were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Cash and cash equivalents	$	58,985	$	39,293
Working capital	78,246		72,965

Our cash balance at March 31, 2021 increased by 50 percent from December 31, 2020, as discussed further below. We believe current cash balances, together with expected cash generated from future operations, and the ease of financing truck and trailer additions through leasing arrangements (should the need arise) will be sufficient to meet our short-term and long-term liquidity needs. In March 2021, we made a cash payment of $2.5 million, representing the first of four quarterly installments, plus interest of 4.0 percent per annum, of the remaining $10.0 million purchase price for the VEX acquisition. As a result of the continued uncertainty relating to the economic environment resulting from the COVID-19 pandemic, we have also continued to significantly curtail our capital spending.

On December 23, 2020, we entered into an At Market Issuance Sales Agreement (“ATM Agreement”) with B. Riley Securities, Inc., as agent (the “Agent”). Pursuant to the ATM Agreement, we may offer to sell shares of our common stock through or to the Agent for cash from time to time. We filed a registration statement initially registering an aggregate of $20.0 million of shares of common stock for sale under the ATM Agreement. The total number of shares of common stock to be sold, if any, and the price the shares will be sold at will be determined by us periodically in connection with any such sales, though the total amount sold may not exceed the limitations stated in the registration statement. We did not sell any shares of common stock under the ATM Agreement during the first quarter of 2021.

We utilize cash from operations to make discretionary investments in our crude oil marketing, transportation and pipeline and storage businesses. With the exception of operating and finance lease commitments primarily associated with storage tank terminal arrangements, leased office space, tractors, trailers and other equipment, and payment of our remaining purchase price for the VEX Pipeline System, our future commitments and planned investments can be readily curtailed if operating cash flows decrease. See “Other Items” below for information regarding our operating and finance lease obligations.

The most significant item affecting future increases or decreases in liquidity is earnings from operations, and these earnings are dependent on the success of future operations. See “Part I, Item 1A. Risk Factors” in our 2020 Form 10-K.

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Cash Flows from Operating, Investing and Financing Activities

Our consolidated cash flows from operating, investing and financing activities were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash provided by (used in):
Operating activities	$	23,001	$	(23,846)
Investing activities	835		(582)
Financing activities	(4,539)		(1,602)

Operating activities. Net cash flows provided by operating activities was $23.0 million for the three months ended March 31, 2021 as compared to net cash flows used in operating activities of $23.8 million for the three months ended March 31, 2020. The increase in net cash flows from operating activities of $46.8 million was primarily due to higher earnings in the current period and changes in our working capital accounts.

At various times each month, we may make cash prepayments and/or early payments in advance of the normal due date to certain suppliers of crude oil within our crude oil marketing operations. Crude oil supply prepayments are recouped and advanced from month to month as the suppliers deliver product to us. In addition, in order to secure crude oil supply, we may also “early pay” our suppliers in advance of the normal payment due date of the twentieth of the month following the month of production. These “early payments” reduce cash and accounts payable as of the balance sheet date.

We also require certain customers to make similar early payments or to post cash collateral with us in order to support their purchases from us. Early payments and cash collateral received from customers increases cash and reduces accounts receivable as of the balance sheet date.

Early payments received from customers and prepayments to suppliers were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Early payments received	$	20,095	$	939
Prepayments to suppliers	7,358		1,085

We rely heavily on our ability to obtain open-line trade credit from our suppliers especially with respect to our crude oil marketing operations. During December 2020, we received a small amount of early payments from certain customers in our crude oil marketing operations, while during March 2021, we received an increase in early payments from customers. Our cash balance increased by approximately $19.7 million as of March 31, 2021 relative to the year ended December 31, 2020 primarily as a result of the timing of the receipt of these early payments received during each period resulting from an increase in crude oil marketing activities, partially offset by early payments made to our suppliers.

Investing activities. Net cash flows provided by investing activities was $0.8 million for the three months ended March 31, 2021 as compared to net cash flows used in investing activities of $0.6 million for the three months ended March 31, 2020. This increase in net cash flows from investing activities of $1.4 million was primarily due to a decrease of $2.0 million in capital spending for property and equipment (see following table) and an increase of $0.5 million in cash proceeds from the sales of assets, partially offset by a decrease of $1.1 million in insurance and state collateral refunds.

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Capital spending was as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Crude oil marketing (1)	$	210	$	2,032
Transportation (2)	(58)		41
Pipeline and storage	10		—
Other (3)	8		139
Capital spending	$	170	$	2,212

_______________

(1)2021 amount primarily relates to the purchase of other field equipment. 2020 amount primarily relates to the purchase of 16 tractors and other field equipment.

(2)During the three months ended March 31, 2021, we received a refund of approximately $0.3 million for amounts previously spent in our transportation segment, which has been reflected as a reduction in property and equipment additions. The remaining 2021 amount relates to the purchase of two trailers and computer software and equipment.

(3)2021 amount relates to the purchase of computer software and equipment, and the 2020 amount relates to leasehold improvements at our corporate headquarters, both of which are not attributed to any of our reporting segments.

Financing activities. Cash used in financing activities for the three months ended March 31, 2021 increased by $2.9 million when compared to the same period in 2020. The increase was primarily due to the payment of the first $2.5 million installment related to the purchase of the VEX pipeline in October 2020, and an increase of $0.5 million in principal repayments made for finance lease obligations. See “Other Items” below for further information regarding our finance leases. During each of the three months ended March 31, 2021 and 2020, we paid a cash dividend of $0.24 per common share, or a total of $1.0 million.

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Other Items

Contractual Obligations

The following table summarizes our significant contractual obligations at March 31, 2021 (in thousands):

			Payments due by period
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Finance lease obligations (1)	$	17,669	$	4,876	$	6,486	$	5,580	$	727
Operating lease obligations (2)	8,410		2,400		3,837		1,553		620
Payments for VEX Pipeline
System acquisition (3)	7,750		7,750		—		—		—
Purchase obligations (4)	15,670		15,670		—		—		—
Total contractual obligations	$	49,499	$	30,696	$	10,323	$	7,133	$	1,347

_______________

(1)Amounts represent our principal contractual commitments, including interest, outstanding under finance leases for certain tractors, trailers, tank storage and throughput arrangements and other equipment.

(2)Amounts represent rental obligations under non-cancelable operating leases and terminal arrangements with terms in excess of one year.

(3)Amount represents our contractual obligation, including interest, related to the remaining three equal quarterly installments for the remaining purchase price for the acquisition of the VEX Pipeline System in October 2020.

(4)Amount represents commitments to purchase 31 new tractors and 50 new trailers in our transportation business and 51 new tractors in our crude oil marketing business.

See Note 13 in the Notes to Unaudited Condensed Consolidated Financial Statements for further information regarding our finance and operating leases.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably expected to have a material current or future effect on our financial position, results of operations or cash flows.

Recent Accounting Pronouncements    

For information regarding recent accounting pronouncements, see Note 2 in the Notes to Unaudited Condensed Consolidated Financial Statements.

Related Party Transactions

For more information regarding related party transactions, see Note 8 in the Notes to Unaudited Condensed Consolidated Financial Statements.

Critical Accounting Policies and Use of Estimates

A discussion of our critical accounting policies and estimates is included in our 2020 Form 10-K. Certain of these accounting policies require the use of estimates. There have been no material changes to our accounting policies since the disclosures provided in our 2020 Form 10-K.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to our “Quantitative and Qualitative Disclosures about Market Risk” that have occurred since the disclosures provided in our 2020 Form 10-K.

Item 4. Controls and Procedures

As of the end of the period covered by this quarterly report, our management carried out an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 and 15d-15(e) of the Exchange Act. Based on this evaluation, as of the end of the period covered by this quarterly report, our Chief Executive Officer and our Chief Financial Officer concluded:

(i)that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow for timely decisions regarding required disclosures; and

(ii)that our disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(e) under the Exchange Act) during the fiscal quarter ended March 31, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time as incidental to our operations, we may become involved in various lawsuits and/or disputes. Primarily as an operator of an extensive trucking fleet, we are a party to motor vehicle accidents, worker compensation claims and other items of general liability as would be typical for the industry. We are presently unaware of any claims against us that are either outside the scope of insurance coverage or that may exceed the level of insurance coverage and could potentially represent a material adverse effect on our financial position or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in our 2020 Form 10-K and the risk factors and other cautionary statements contained in our other SEC filings, which could materially affect our businesses, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. There have been no material changes in our Risk Factors from those disclosed in Item 1A of our 2020 Form 10-K or our other SEC filings.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit
Number	Exhibit
3.1	Certificate of Incorporation of Adams Resources & Energy, Inc., as amended (incorporated by reference to Exhibit 3.1 to Form 10-K for the fiscal year ended December 31, 2019).
3.2	Bylaws of Adams Resources & Energy, Inc., as amended (incorporated by reference to Exhibit 3(b) to Form 10-K for the year ended December 31, 2012).
10.1+*	Form of Employee Performance Share Unit Award Agreement for 2021 Awards under the Adams Resources & Energy, Inc. 2018 Long-Term Incentive Plan.
31.1*	Sarbanes-Oxley Section 302 certification of Executive Chairman pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Sarbanes-Oxley Section 302 certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Sarbanes-Oxley Section 906 certification of Executive Chairman pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Sarbanes-Oxley Section 906 certification of Chief Financial Officer pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.CAL*	Inline XBRL Calculation Linkbase Document
101.DEF*	Inline XBRL Definition Linkbase Document
101.INS*	Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.LAB*	Inline XBRL Labels Linkbase Document
101.PRE*	Inline XBRL Presentation Linkbase Document
101.SCH*	Inline XBRL Schema Document
104*	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

____________

* Filed or furnished (in the case of Exhibits 32.1 and 32.2) with this report.

+ Management contract or compensation plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			ADAMS RESOURCES & ENERGY, INC.
			(Registrant)
Date:	May 6, 2021	By:	/s/ Kevin J. Roycraft
			Kevin J. Roycraft
			Chief Executive Officer
			(Principal Executive Officer)
		By:	/s/ Tracy E. Ohmart
			Tracy E. Ohmart
			Chief Financial Officer
			(Principal Financial Officer and Principal
			Accounting Officer)

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EX-10.1

Exhibit 10.1

2021 PERFORMANCE SHARE UNIT AWARD AGREEMENT

THIS PERFORMANCE SHARE UNIT AWARD AGREEMENT (this “Agreement”) is made as of the 1st day of March, 2021 (the “Grant Date”), between ADAMS RESOURCES & ENERGY, INC., a Delaware corporation (“Company”), and all of its Affiliates (collectively, the “Company”), and ____________ (the “Employee”). A copy of the Adams Resources & Energy, Inc. 2018 Long-Term Incentive Plan (the “Plan”) is annexed to this Agreement and shall be deemed a part hereof as if fully set forth herein. Unless the context otherwise requires, all terms that are not defined in this Agreement but which are defined in the Plan shall have the same meaning given to them in the Plan when used herein.

1.Award. Pursuant to the Plan, as of the Grant Date, _____ Restricted Stock Units (the “Performance Share Units”) shall be granted to Employee as a matter of separate inducement and not in lieu of any salary or other compensation for Employee’s services, subject to the acceptance by the Employee of the terms and conditions of this Agreement. The Employee acknowledges receipt of a copy of the Plan, and agrees that the Performance Share Units shall be subject to all of the terms and provisions of the Plan, including future amendments thereto, if any, pursuant to the terms thereof, and to all of the terms and conditions of this Agreement.

2.Performance Share Units. The Employee hereby accepts the Performance Share Units when issued and agrees with respect thereto as follows:

(a)Payment and Determination of Value. Except as otherwise provided in Section 10 below, Company shall provide to the Employee one share of the Company’s common stock, $0.10 par value per share for each Performance Share Unit on its scheduled vesting date. If any dividends are paid with respect to a share of the Company’s common stock during the vesting period, an equivalent amount shall accrue and be held by the Company without interest until the Performance Share Units become vested, at which time such amount shall be paid to the Employee, or are forfeited, at which time such amount shall be forfeited.

(b)Vesting. An Employee’s Performance Share Units shall become vested based on (i) continued service with the Company until the third (3rd) anniversary of the Vesting Commencement Date, and (ii) the attainment of the Performance Criteria specified on Exhibit A to this Agreement. Any portion of the Performance Share Units that does not become vested in accordance with the preceding provisions of this Section 2(b) and Exhibit A shall be forfeited to the Company for no consideration as of the date of the termination of the Employee’s employment with the Company.

For purposes of this Agreement, the “Vesting Commencement Date” shall be March 1, 2021.

(c)Termination of Employment. If the Employee terminates his or her employment with the Company prior to the third (3rd) anniversary of the Vesting Commencement Date, then the Performance Share Units shall be forfeited to the Company for no consideration as of the date of the termination of the Employee’s employment with the Company, except that:

(i)    if the Employee is determined to be Disabled or in the event of the death of the Employee, all of the Employee’s Performance Share Units shall become vested upon the later of (A) the completion of the Performance Period (as specified on Exhibit A), or (B) the date the Employee terminates employment with the Company, based upon the actual level of performance. In such case, Employee (or Employee’s legal representative, or the person, if any, who acquired the Performance Share Units by bequest or inheritance or by reason of the death of Employee), shall be entitled to receive any payment with respect to the Performance Share Units in accordance with this Agreement; and

(ii)    if the Employee’s employment with the Company terminates by reason of retirement following the date on which such Employee has either (I) reached sixty (60) years of age, and completed

1

at least ten (10) years of service as an employee of the Company, or (II) reached sixty-five (65) years of age, then the Performance Share Units shall become vested upon the later of (A) the completion of the Performance Period, or (B) the date the Employee terminates employment with the Company, based upon the actual level of performance, provided, however, that the Employee shall not receive such shares until their original scheduled vesting date.

Any payment made in connection with Section 2(c)(i) above shall be paid thirty (30) days after the Employee’s termination date.

3.Transfer Restrictions. The Performance Share Units may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or otherwise disposed of by the Employee.

4.Shareholder Rights. The Employee shall not have any of the rights of a shareholder of the Company with respect to the Performance Share Units.

5.Corporate Acts. The existence of the Performance Share Units shall not affect in any way the right or power of the Board of Directors of the Company or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

6.Withholding of Tax. To the extent that the receipt of the Performance Share Units results in compensation income to the Employee for federal or state income tax purposes, the Employee may elect to either (i) deliver to the Company at the time of such receipt, as the case may be, such amount of money as the Company may require to meet its withholding obligation under applicable tax laws or regulations, or (ii) have the Company withhold a portion of the shares of the Company’s common stock distributable to the Employee under this Agreement that does not exceed the amount of taxes to be withheld by reason of such resulting compensation income. If the Employee does not make a timely election regarding the manner this tax withholding obligation will be satisfied, then the Company shall withhold a portion of the shares of the Company’s common stock distributable to the Employee under this Agreement that does not exceed the amount of taxes to be withheld by reason of such resulting compensation income.

7.Employment Relationship. For purposes of this Agreement, the Employee shall be considered to be in the employment of the Company as long as the Employee remains an employee of either the Company or an Affiliate (as such term is defined in the Plan). Nothing in the adoption of the Plan or the award of the Performance Share Units thereunder pursuant to this Agreement shall confer upon the Employee the right to continued employment by the Company or affect in any way the right of the Company to terminate such employment at any time. Unless otherwise provided in a written employment agreement or by applicable law, the Employee’s employment by the Company shall be on an at-will basis, and the employment relationship may be terminated at any time by either the Employee or the Company for any reason whatsoever, with or without cause. Any question as to whether and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Committee, and its determination shall be final.

8.Notices. Any notices or other communications provided for in this Agreement shall be sufficient if in writing. In the case of the Employee, such notices or communications shall be effectively delivered when hand delivered to the Employee at his or her principal place of employment or when sent by registered or certified mail to the Employee at the last address the Employee has filed with the Company. In the case of the Company, such notices or communications shall be effectively delivered when sent by registered or certified mail to the Company at its principal executive offices.

9.Entire Agreement; Amendment. This Agreement replaces and merges all previous agreements and discussions relating to the same or similar subject matters between the Employee and the Company and constitutes the entire agreement between the Employee and the Company with respect to the subject matter of this Agreement. This Agreement may not be modified in any respect by any verbal statement, representation or

2

agreement made by any employee, officer, or representative of the Company or by any written agreement unless signed by an officer of the Company who is expressly authorized by the Company to execute such document. In addition, if it is subsequently determined by the Committee, in its sole discretion, that the terms and conditions of this Agreement and/or the Plan are not compliant with Code Section 409A, or any Treasury regulations or Internal Revenue Service guidance promulgated thereunder, this Agreement and/or the Plan may be amended by the Company accordingly.

10.Code Section 409A. If and to the extent any portion of any payment provided to the Employee under this Agreement in connection with the Employee’s separation from service (as defined in Section 409A of Internal Revenue Code of 1986, as amended (“Code Section 409A”) is determined to constitute “nonqualified deferred compensation” within the meaning of Code Section 409A and the Employee is a “specified employee” as defined in Code Section 409A(a)(2)(B)(i), as determined by the Company in accordance with the procedures separately adopted by the Company for this purpose, by which determination the Employee, as a condition to accepting benefits under this Agreement and the Plan, agrees that he or she is bound, such portion of the shares of Company’s common stock to be delivered on a vesting date shall not be delivered before the earlier of (i) the day that is six months plus one day after the date of separation from service (as determined under Code Section 409A) or (ii) the tenth (10th) day after the date of the Employee’s death (as applicable, the “New Payment Date”). The shares that otherwise would have been delivered to the Employee during the period between the date of separation from service and the New Payment Date shall be delivered to the Employee on such New Payment Date, and any remaining shares will be delivered on their original schedule. If the Employee becomes Disabled and such disability does not satisfy the requirements of Code Section 409A, then the Employee’s shares shall be delivered on the original scheduled vesting date. Neither the Company nor the Employee shall have the right to accelerate or defer the delivery of any such shares except to the extent specifically permitted or required by Code Section 409A. This Agreement is intended to comply with the provisions of Code Section 409A and this Agreement and the Plan shall, to the extent practicable, be construed in accordance therewith. Terms defined in this Agreement and the Plan shall have the meanings given such terms under Code Section 409A if and to the extent required to comply with Code Section 409A. In any event, the Company makes no representations or warranty and shall have no liability to the Employee or any other person if any provisions of or payments under this Agreement are determined to constitute deferred compensation subject to Code Section 409A but not to satisfy the conditions of that section.

11.Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under the Employee.

12.Miscellaneous. In the event of any conflict or inconsistency between the terms of this Agreement and the terms of the Plan, including any amendments or supplements thereto, the terms of this Agreement shall be controlling.

[Remainder of page intentionally left blank]

3

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Employee has agreed to and accepted the terms of this Agreement, all as of the date first above written.

COMPANY

ADAMS RESOURCES & ENERGY, INC.

By:

Name:

Title:

EMPLOYEE

By:

4

Exhibit A

2021 Performance Criteria

    The Employee’s Performance Share Units shall become vested based on the satisfaction of both the (i) the time vesting requirement described in Section 2(b)(i) of the Agreement, and (ii) the Performance Criteria described in this Exhibit A. The initial number of Performance Share Units specified in Section 1 of the Agreement shall be the “target” number of shares of Stock that may be delivered upon settlement of the Performance Share Units subject to the Agreement. This initial number of Performance Share Units shall be adjusted based on the attainment of the Performance Criteria described in Section 3 below.

1.Performance Period: The performance period shall be the period between January 1, 2021 and December 31, 2021.

2.Award Value: The Performance Share Units subject to this Agreement will be earned based on the Company’s performance for the Performance Period. Following the end of the Performance Period, the Committee shall determine the number of Performance Share Units earned for the Performance Period.

3.Performance Criteria: Seventy-five percent (75%) of the Award shall be earned based on the Company’s attainment of the Adjusted Pre-Tax Cash Flow (“APTCF”) factor described in Section 3(a) below. Twenty-five percent (25%) of the Award shall be earned based on the Company’s attainment of Adjusted Pre-Tax Earnings (“APTE”) factor described in Section 3(b) below.

(a)Adjusted Pre-Tax Cash Flow – APTCF is defined as the Company’s net earnings or losses during the Performance Period adjusted by: (i) income tax expense or benefit; (ii) depreciation and amortization expense; (iii) stock-based compensation expense; (iv) inventory liquidation gains; (v) inventory valuation losses; (vi) net changes in the fair value of contracts, as each such adjustment is reported in the Company’s publicly filed financial statements for the fiscal year ending December 31, 2021; and (vii) any other adjustments the Company includes in the calculation of adjusted cash flow, as approved by the Company’s Board of Directors and reported in the Company’s earnings release. The Award Level for the APTCF factor for the Performance Period shall be determined based on the following table:

Performance Level	Adjusted Pre-Tax Cash Flow Amount	% of Target Performance Share Units Earned1
Maximum	$35,200,000	200%
Target	$28,160,000	100%
Threshold	$21,120,000	50%
<Threshold	<$21,120,000	0%

1 Linear interpolation will be applicable to the percentages between the Performance Levels.

5

(b)Adjusted Pre-Tax Earnings – APTE shall be determined based on the Company’s net earnings or losses during the Performance Period adjusted by: (i) income tax expense or benefit; (ii) stock-based compensation expense; (iii) inventory liquidation gains; (iv) inventory valuation losses; (v) net changes in the fair value of contracts, as each such adjustment is reported in the Company’s publicly filed financial statements for the fiscal year ending December 31, 2021; and (vi) any other adjustments included by the Company in the calculation of its adjusted net earnings or losses, as approved by the Company’s Board of Directors and reported in its earnings release. The Award Level for the APTE factor for the Performance Period shall be determined based on the following table:

Performance Level	Adjusted Pre-Tax Earnings Amount	% of Target Performance Share Units Earned2
Maximum	$9,750,000	200%
Target	$7,800,000	100%
Threshold	$5,850,000	50%
<Threshold	<$5,850,000	0%

(c)Forfeiture. Any portion of the Performance Share Units which are not earned at the end of the Performance Period shall be forfeited as of the last day of the Performance Period.

2 Linear interpolation will be applicable to the percentages between the Performance Levels.

6

EX-31.1

Exhibit 31.1

SARBANES-OXLEY SECTION 302 CERTIFICATION

I, Kevin J. Roycraft, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Adams Resources & Energy, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 6, 2021	By:	/s/ Kevin J. Roycraft
			Kevin J. Roycraft
			Chief Executive Officer

EX-31.2

Exhibit 31.2

SARBANES-OXLEY SECTION 302 CERTIFICATION

I, Tracy E. Ohmart, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Adams Resources & Energy, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 6, 2021	By:	/s/ Tracy E. Ohmart
			Tracy E. Ohmart
			Chief Financial Officer

EX-32.1

Exhibit 32.1

SARBANES-OXLEY SECTION 906 CERTIFICATION

CERTIFICATION OF KEVIN J. ROYCRAFT,

CHIEF EXECUTIVE OFFICER OF ADAMS RESOURCES & ENERGY, INC.

In connection with the quarterly report of Adams Resources & Energy, Inc. (the “Registrant”) on Form 10-Q for the quarterly period ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin J. Roycraft, Chief Executive Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	May 6, 2021	By:	/s/ Kevin J. Roycraft
			Kevin J. Roycraft
			Chief Executive Officer

EX-32.2

Exhibit 32.2

SARBANES-OXLEY SECTION 906 CERTIFICATION

CERTIFICATION OF TRACY E. OHMART,

CHIEF FINANCIAL OFFICER OF ADAMS RESOURCES & ENERGY, INC.

In connection with the quarterly report of Adams Resources & Energy, Inc. (the “Registrant”) on Form 10-Q for the quarterly period ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Tracy E. Ohmart, Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	May 6, 2021	By:	/s/ Tracy E. Ohmart
			Tracy E. Ohmart
			Chief Financial Officer

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 01, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-07908
Entity Registrant Name	ADAMS RESOURCES & ENERGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-1753147
Entity Address, Address Line One	17 South Briar Hollow Lane
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77027
City Area Code	713
Local Phone Number	881-3600
Title of 12(b) Security	Common Stock, $0.10 Par Value
Trading Symbol	AE
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,251,015
Document Fiscal Year Focus	2021
Entity Central Index Key	0000002178
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 58,985	$ 39,293
Restricted cash	12,377	12,772
Accounts receivable, net of allowance for doubtful accounts of $113 and $114, respectively	111,068	99,799
Accounts receivable – related party	13	0
Inventory	29,223	19,336
Derivative assets	576	61
Income tax receivable	11,638	13,288
Prepayments and other current assets	3,621	2,964
Total current assets	227,501	187,513
Property and equipment, net	90,643	94,134
Operating lease right-of-use assets, net	7,774	8,051
Intangible assets, net	3,902	4,106
Other assets	2,482	2,383
Total assets	332,302	296,187
Current liabilities:
Accounts payable	122,155	85,991
Derivative liabilities	546	52
Current portion of finance lease obligations	4,494	4,112
Current portion of operating lease liabilities	2,172	2,050
Other current liabilities	19,888	22,343
Total current liabilities	149,255	114,548
Other long-term liabilities:
Asset retirement obligations	2,325	2,308
Finance lease obligations	12,202	11,507
Operating lease liabilities	5,603	6,000
Deferred taxes and other liabilities	11,900	12,732
Total liabilities	181,285	147,095
Commitments and contingencies (Note 14)
Shareholders’ equity:
Preferred stock - $1.00 par value, 960,000 shares authorized, none outstanding	0	0
Common stock - $0.10 par value, 7,500,000 shares authorized, 4,251,015 and 4,243,716 shares outstanding, respectively	423	423
Contributed capital	13,494	13,340
Retained earnings	137,100	135,329
Total shareholders’ equity	151,017	149,092
Total liabilities and shareholders’ equity	$ 332,302	$ 296,187

XML

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Allowance for doubtful accounts	$ 113	$ 114
Shareholders’ equity:
Preferred stock - par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock - shares authorized (in shares)	960,000	960,000
Preferred stock - shares outstanding (in shares)	0	0
Common stock - par value (in dollars per share)	$ 0.10	$ 0.10
Common stock - shares authorized (in shares)	7,500,000	7,500,000
Common stock - shares outstanding (in shares)	4,251,015	4,243,716

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Total revenues	$ 325,491	$ 353,477
Costs and expenses:
General and administrative	3,376	2,894
Depreciation and amortization	5,053	4,473
Total costs and expenses	321,640	373,417
Operating earnings (losses)	3,851	(19,940)
Other income (expense):
Interest and other income	134	365
Interest expense	(220)	(150)
Total other (expense) income, net	(86)	215
Earnings (Losses) before income taxes	3,765	(19,725)
Income tax (provision) benefit	(957)	8,298
Net earnings (losses)	$ 2,808	$ (11,427)
Earnings (Losses) per share:
Basic net earnings (losses) per common share (in dollars per share)	$ 0.66	$ (2.70)
Diluted net earnings (losses) per common share (in dollars per share)	0.66	(2.69)
Dividends per common share (in dollars per share)	$ 0.24	$ 0.24
Marketing
Revenues:
Total revenues	$ 304,023	$ 337,221
Costs and expenses:
Cost of goods and services sold	295,207	352,865
Transportation
Revenues:
Total revenues	21,235	16,256
Costs and expenses:
Cost of goods and services sold	17,460	13,185
Pipeline and storage
Revenues:
Total revenues	233	0
Costs and expenses:
Cost of goods and services sold	$ 544	$ 0

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities:
Net earnings (losses)	$ 2,808	$ (11,427)
Adjustments to reconcile net losses earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	5,053	4,473
Gains on sales of property	(83)	(140)
Provision for doubtful accounts	(1)	(24)
Stock-based compensation expense	185	134
Deferred income taxes	(829)	(2,689)
Net change in fair value contracts	(21)	(19)
Changes in assets and liabilities:
Accounts receivable	(11,268)	41,617
Accounts receivable/payable, affiliates	(13)	1
Inventories	(9,887)	16,386
Income tax receivable	1,650	(5,530)
Prepayments and other current assets	(657)	253
Accounts payable	36,127	(68,384)
Accrued liabilities	51	1,506
Other	(114)	(3)
Net cash provided by (used in) operating activities	23,001	(23,846)
Investing activities:
Property and equipment additions	(170)	(2,212)
Proceeds from property sales	1,005	502
Insurance and state collateral (deposits) refunds	0	1,128
Net cash provided by (used in) investing activities	835	(582)
Financing activities:
Principal repayments of finance lease obligations	(1,014)	(532)
Payment for financed portion of VEX acquisition	(2,500)	0
Payment of contingent consideration liability	0	(54)
Dividends paid on common stock	(1,025)	(1,016)
Net cash used in financing activities	(4,539)	(1,602)
Increase (Decrease) in cash and cash equivalents, including restricted cash	19,297	(26,030)
Cash and cash equivalents, including restricted cash, at beginning of period	52,065	122,255
Cash and cash equivalents, including restricted cash, at end of period	$ 71,362	$ 96,225

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Contributed Capital	Retained Earnings
Beginning balance at Dec. 31, 2019	$ 151,641	$ 423	$ 12,778	$ 138,440
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (losses)	(11,427)			(11,427)
Stock-based compensation expense	134		134
Dividends declared:
Common stock	(1,016)			(1,016)
Awards under LTIP	(6)			(6)
Ending balance at Mar. 31, 2020	139,326	423	12,912	125,991
Beginning balance at Dec. 31, 2020	149,092	423	13,340	135,329
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (losses)	2,808			2,808
Stock-based compensation expense	185		185
Cancellation of shares withheld to cover taxes upon vesting	(31)		(31)
Dividends declared:
Common stock	(1,019)			(1,019)
Awards under LTIP	(18)			(18)
Ending balance at Mar. 31, 2021	$ 151,017	$ 423	$ 13,494	$ 137,100

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.24	$ 0.24
Awards under LTIP (in dollars per share)	$ 0.24	$ 0.24

XML

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Organization

Adams Resources & Energy, Inc. is a publicly traded Delaware corporation organized in 1973, the common shares of which are listed on the NYSE American LLC under the ticker symbol “AE”. Through our subsidiaries, we are primarily engaged in crude oil marketing, transportation, terminalling and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico, and with fifteen terminals across the U.S. Unless the context requires otherwise, references to “we,” “us,” “our” or “Company” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries.  

We operate and report in three business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; and (iii) pipeline transportation, terminalling and storage of crude oil. See Note 7 for further information regarding our business segments.

Basis of Presentation

Our results of operations for the three months ended March 31, 2021 are not necessarily indicative of results expected for the full year of 2021. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals necessary for fair presentation.  The condensed consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the rules of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) filed with the SEC on March 5, 2021. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of our financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. While we believe the estimates and assumptions used in the preparation of these condensed consolidated financial statements are appropriate, actual results could differ from those estimates.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Cash, Cash Equivalents and Restricted Cash

At March 31, 2021 and December 31, 2020, $5.1 million and $5.1 million, respectively, of the restricted cash balance represented amounts held in a segregated bank account by Wells Fargo as collateral for outstanding letters of credit. At March 31, 2021 and December 31, 2020, $1.5 million and $1.5 million, respectively, of the restricted cash balance related to the initial capitalization of our captive insurance company formed in late 2020 and $5.7 million and $6.1 million, respectively, represented the amount paid to our captive insurance company for insurance premiums.

The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported in the unaudited condensed consolidated balance sheets that totals to the amounts shown in the unaudited condensed consolidated statements of cash flows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Cash and cash equivalents	$	58,985	$	39,293
Restricted cash	12,377		12,772
Total cash, cash equivalents and restricted cash shown in the
unaudited condensed consolidated statements of cash flows	$	71,362	$	52,065

Common Shares Outstanding

The following table reconciles our outstanding common stock for the periods indicated:

	Common
	shares
Balance, January 1, 2021	4,243,716
Vesting of restricted stock unit awards	8,544
Shares withheld to cover taxes upon vesting of restricted stock unit awards	(1,245)
Balance, March 31, 2021	4,251,015

Earnings Per Share

Basic earnings (losses) per share is computed by dividing our net earnings (losses) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (losses) per share is computed by giving effect to all potential shares of common stock outstanding, including our stock related to unvested restricted stock unit awards. Unvested restricted stock unit awards granted under the Adams Resources & Energy, Inc. 2018 Long-Term Incentive Plan (“2018 LTIP”) are not considered to be participating securities as the holders of these shares do not have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares (see Note 11 for further discussion).

A reconciliation of the calculation of basic and diluted earnings (losses) per share was as follows for the periods indicated (in thousands, except per share data):

	Three Months Ended
	March 31,
	2021		2020
Earnings (losses) per share — numerator:
Net earnings (losses)	$	2,808	$	(11,427)
Denominator:
Basic weighted average number of shares outstanding	4,246		4,236
Basic earnings (losses) per share	$	0.66	$	(2.70)
Diluted earnings (losses) per share:
Diluted weighted average number of shares outstanding:
Common shares	4,246		4,236
Restricted stock unit awards	18		12
Performance share unit awards (1)	7		2
Total diluted shares	4,271		4,250
Diluted earnings (losses) per share	$	0.66	$	(2.69)

_______________

(1)The dilutive effect of performance share awards are included in the calculation of diluted earnings per share when the performance share award performance conditions have been achieved.

Fair Value Measurements

The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are recorded at fair value based on market quotations from actively traded liquid markets.

A three-tier hierarchy has been established that classifies fair value amounts recognized in the financial statements based on the observability of inputs used to estimate these fair values.  The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3).  At each balance sheet reporting date, we categorize our financial assets and liabilities using this hierarchy.

Fair value contracts consist of derivative financial instruments and are recorded as either an asset or liability measured at its fair value. Changes in fair value are recognized immediately in earnings unless the derivatives qualify for, and we elect, cash flow hedge accounting. We had no contracts designated for hedge accounting during any current reporting periods (see Note 10 for further information).

Income Taxes

Income taxes are accounted for using the asset and liability method. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of these items and their respective tax basis.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted and signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating losses (“NOL”) incurred in tax years 2018, 2019 and 2020 to offset 100 percent of taxable income and be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.

We have determined that the NOL carryback provision in the CARES Act would result in a cash benefit to us for the fiscal years 2018 and 2019. We carried back our NOL for fiscal year 2018 to 2013, and in June 2020, we received a cash refund of approximately $2.7 million. We have income tax receivables at March 31, 2021 of approximately $3.7 million for the benefit of carrying back the NOL for the fiscal year 2019 to 2014 and approximately $6.8 million for the benefit of carrying back the NOL for the fiscal year 2020 to 2015 and 2016. As we are carrying the losses back to years beginning before January 1, 2018, the receivables were recorded at the previous 35 percent federal tax rate rather than the current statutory rate of 21 percent.

Inventory

Inventory consists of crude oil held in storage tanks and at third-party pipelines as part of our crude oil marketing and pipeline and storage operations. Crude oil inventory is carried at the lower of cost or net realizable value. At the end of each reporting period, we assess the carrying value of our inventory and make adjustments necessary to reduce the carrying value to the applicable net realizable value. Any resulting adjustments are a component of marketing costs and expenses or pipeline and storage expenses on our consolidated statements of operations. During the three months ended March 31, 2020, we recorded a charge of $24.2 million related to the write-down of our crude oil inventory in our crude oil marketing segment due to declines in prices.

Property and Equipment

Property and equipment is recorded at cost. Expenditures for additions, improvements and other enhancements to property and equipment are capitalized, and minor replacements, maintenance and repairs that do not extend asset life or add value are charged to expense as incurred. When property and equipment assets are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in results of operations in operating costs and expenses for the respective period. Property and equipment, except for land, is depreciated using the straight-line method over the estimated average useful lives ranging from two to thirty-nine years.

We review our long-lived assets for impairment whenever there is evidence that the carrying value of these assets may not be recoverable. Any impairment recognized is permanent and may not be restored. Property and equipment is reviewed at the lowest level of identifiable cash flows. For property and equipment requiring impairment, the fair value is estimated based on an internal discounted cash flow model of future cash flows.

See Note 5 for additional information regarding our property and equipment.

Stock-Based Compensation

We measure all share-based payment awards, including the issuance of restricted stock unit awards and performance share unit awards to employees and board members, using a fair-value based method. The cost of services received from employees and non-employee board members in exchange for awards of equity instruments is recognized in the consolidated statements of operations based on the estimated fair value of those awards on the grant date and is amortized on a straight-line basis over the requisite service period. The fair value of restricted stock unit awards and performance share unit awards is based on the closing price of our common stock on the grant date. We account for forfeitures as they occur. See Note 11 for additional information regarding our 2018 LTIP.

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Revenue Recognition

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Revenue Disaggregation

The following table disaggregates our revenue by segment and by major source for the periods indicated (in thousands):

	Reporting Segments
	Marketing		Transportation		Pipeline and storage		Total
Three Months Ended March 31, 2021
Revenues from contracts with customers	$	297,475	$	21,235	$	233	$	318,943
Other (1)	6,548		—		—		6,548
Total revenues	$	304,023	$	21,235	$	233	$	325,491
Timing of revenue recognition:
Goods transferred at a point in time	$	297,475	$	—	$	—	$	297,475
Services transferred over time	—		21,235		233		21,468
Total revenues from contracts with customers	$	297,475	$	21,235	$	233	$	318,943
Three Months Ended March 31, 2020
Revenues from contracts with customers	$	319,717	$	16,256	$	—	$	335,973
Other (1)	17,504		—		—		17,504
Total revenues	$	337,221	$	16,256	$	—	$	353,477
Timing of revenue recognition:
Goods transferred at a point in time	$	319,717	$	—	$	—	$	319,717
Services transferred over time	—		16,256		—		16,256
Total revenues from contracts with customers	$	319,717	$	16,256	$	—	$	335,973

_______________

(1)Other crude oil marketing revenues are recognized under ASC 815, Derivatives and Hedging, and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty.

Other Crude Oil Marketing Revenue

Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these contracts are marked-to-market and recorded on a net revenue basis in the accompanying consolidated financial statements.

Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying consolidated financial statements.

Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Revenue gross-up	$	134,866	$	157,439

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Prepayments and Other Current Assets

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepayments and Other Current Assets

Prepayments and Other Current Assets

The components of prepayments and other current assets were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Insurance premiums	$	793	$	690
Vendor prepayment	1,690		1,085
Rents, licenses and other	1,138		1,189
Total prepayments and other current assets	$	3,621	$	2,964

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Property and Equipment

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

The historical costs of our property and equipment and related accumulated depreciation and amortization balances were as follows at the dates indicated (in thousands):

	Estimated
	Useful Life	March 31,		December 31,
	in Years	2021		2020
Tractors and trailers	5 – 6	$	101,535	$	101,813
Field equipment	2 – 5	22,318		22,139
Finance lease ROU assets (1)	3 – 6	22,357		20,266
Pipeline and related facilities	20 – 25	21,275		21,265
Linefill and base gas (2)	N/A	3,333		3,333
Buildings	5 – 39	14,977		14,977
Office equipment	2 – 5	1,905		1,893
Land	N/A	1,790		1,790
Construction in progress	N/A	716		1,626
Total		190,206		189,102
Less accumulated depreciation and amortization		(99,563)		(94,968)
Property and equipment, net		$	90,643	$	94,134

_______________

(1)Our finance lease right-of-use (“ROU)” assets arise from leasing arrangements for the right to use various classes of underlying assets including tractors, trailers, a tank storage and throughput arrangement and office equipment (see Note 13 for further information). Accumulated amortization of the assets presented as “Finance lease ROU assets” was $6.2 million and $5.0 million at March 31, 2021 and December 31, 2020, respectively.

(2)Linefill and base gas represents crude oil in the VEX pipeline and storage tanks we own, and the crude oil is recorded at historical cost.

Components of depreciation and amortization expense were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Depreciation and amortization, excluding amounts under finance leases	$	3,913	$	3,920
Amortization of property and equipment under finance leases	1,140		553
Total depreciation and amortization	$	5,053	$	4,473

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Other Assets

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Other Assets

Components of other assets were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Amounts associated with liability insurance program:
Insurance collateral deposits	$	714	$	714
Excess loss fund	617		617
Accumulated interest income	459		449
Other amounts:
State collateral deposits	42		31
Materials and supplies	460		488
Other	190		84
Total other assets	$	2,482	$	2,383

We have established certain deposits to support participation in our liability insurance program and remittance of state crude oil severance taxes and other state collateral deposits. Insurance collateral deposits are held by the insurance company to cover past or potential open claims based upon a percentage of the maximum assessment under our insurance policies. Insurance collateral deposits are invested at the discretion of our insurance carrier. Excess amounts in our loss fund represent premium payments in excess of claims incurred to date that we may be entitled to recover through settlement or commutation as claim periods are closed. Interest income is earned on the majority of amounts held by the insurance companies and will be paid to us upon settlement of policy years.

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Segment Reporting

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate and report in three business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; and (iii) pipeline transportation, terminalling and storage of crude oil.

Financial information by reporting segment was as follows for the periods indicated (in thousands):

	Reporting Segments
	Marketing		Transportation		Pipeline and storage		Other		Total
Three Months Ended March 31, 2021
Segment revenues (1)	$	304,023	$	21,268	$	419	$	—	$	325,710
Less: Intersegment revenues (1)	—		(33)		(186)		—		(219)
Revenues	$	304,023	$	21,235	$	233	$	—	$	325,491
Segment operating earnings (losses) (2)	7,018		774		(565)		—		7,227
Depreciation and amortization	1,798		3,001		254		—		5,053
Property and equipment additions (3)(4)(5)	210		(58)		10		8		170
Three Months Ended March 31, 2020
Segment revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Less: Intersegment revenues	—		—		—		—		—
Revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Segment operating earnings (losses) (2)	(17,651)		605		—		—		(17,046)
Depreciation and amortization	2,007		2,466		—		—		4,473
Property and equipment additions (3) (4)	2,032		41		—		139		2,212

_______________

(1)Segment revenues include intersegment amounts that are eliminated in operating costs and expenses in our unaudited condensed consolidated statements of operations. Intersegment activities are conducted at posted tariff rates where applicable, or otherwise at rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed.

(2)Our crude oil marketing segment’s operating (losses) earnings included inventory liquidation gains of $6.9 million and inventory valuation losses of $24.2 million for the three months ended March 31, 2021 and 2020, respectively.

(3)Our segment property and equipment additions do not include assets acquired under finance leases during the three months ended March 31, 2021. See Note 13 for further information.

(4)During the three months ended March 31, 2021 and 2020, we had $8.0 thousand and $0.1 million, respectively, of property and equipment additions for computer equipment and leasehold improvements at our corporate headquarters, which were not attributed or allocated to any of our reporting segments.

(5)During the three months ended March 31, 2021, we received a refund of approximately $0.3 million for amounts previously spent in our transportation segment, which has been reflected as a reduction in property and equipment additions.

Segment operating earnings (losses) reflect revenues net of operating costs and depreciation and amortization expense and are reconciled to earnings (losses) before income taxes, as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Segment operating earnings (losses)	$	7,227	$	(17,046)
General and administrative	(3,376)		(2,894)
Operating earnings (losses)	3,851		(19,940)
Interest and other income	134		365
Interest expense	(220)		(150)
Earnings (losses) before income taxes	$	3,765	$	(19,725)

Identifiable assets by business segment were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Reporting segment:
Marketing	$	153,723	$	128,441
Transportation	65,572		72,247
Pipeline and storage	24,290		24,541
Cash and other (1)	88,717		70,958
Total assets	$	332,302	$	296,187

_______________

(1)Other identifiable assets are primarily corporate cash, corporate accounts receivable, properties and operating lease right-of-use assets not identified with any specific segment of our business.

Accounting policies for transactions between reportable segments are consistent with applicable accounting policies as disclosed herein.

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Transactions with Affiliates

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Transactions with Affiliates

Transactions with Affiliates

We enter into certain transactions in the normal course of business with affiliated entities including direct cost reimbursement for shared phone and administrative services. In addition, we lease our corporate office space in a building operated by 17 South Briar Hollow Lane, LLC, an affiliate of KSA Industries, Inc., which is an affiliated entity.

Activities with affiliates were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Affiliate billings to us	$	12	$	17
Billings to affiliates	1		1
Rentals paid to affiliate	174		122

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Other Current Liabilities

3 Months Ended

Mar. 31, 2021

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Other Current Liabilities

The components of other current liabilities were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Accrued purchase price for VEX acquisition	$	7,500	$	10,000
Accrual for payroll, benefits and bonuses	5,865		6,575
Accrued automobile and workers’ compensation claims	3,913		3,171
Accrued medical claims	1,033		915
Other	1,577		1,682
Total other current liabilities	$	19,888	$	22,343

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Derivative Instruments and Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Fair Value Measurements

Derivative Instruments and Fair Value Measurements

Derivative Instruments

In the normal course of our operations, our crude oil marketing segment purchases and sells crude oil. We seek to profit by procuring the commodity as it is produced and then delivering the material to the end users or the intermediate use marketplace. As typical for the industry, these transactions are made pursuant to the terms of forward month commodity purchase and/or sale contracts. Some of these contracts meet the definition of a derivative instrument, and therefore, we account for these contracts at fair value, unless the normal purchase and sale exception is applicable. These types of underlying contracts are standard for the industry and are the governing document for our crude oil marketing segment. None of our derivative instruments have been designated as hedging instruments.

At March 31, 2021, we had in place seven commodity purchase and sale contracts, of which five had a fair value associated with them as the contractual prices of crude oil were outside of the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately 740 barrels per day of crude oil during April 2021 through December 2021.

At December 31, 2020, we had in place six commodity purchase and sale contracts, of which three had a fair value associated with them as the contractual prices of crude oil were outside the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately 192 barrels per day of crude oil during January 2021 through December 2021.

The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheets were as follows at the dates indicated (in thousands):

	Balance Sheet Location and Amount
	Current		Other		Current		Other
	Assets		Assets		Liabilities		Liabilities
March 31, 2021
Asset derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	$	576	$	—	$	—	$	—
Liability derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	—		—		546		—
Less counterparty offsets	—		—		—		—
As reported fair value contracts	$	576	$	—	$	546	$	—
December 31, 2020
Asset derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	$	61	$	—	$	—	$	—
Liability derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	—		—		52		—
Less counterparty offsets	—		—		—		—
As reported fair value contracts	$	61	$	—	$	52	$	—

We only enter into commodity contracts with creditworthy counterparties and evaluate our exposure to significant counterparties on an ongoing basis. At March 31, 2021 and December 31, 2020, we were not holding nor have we posted any collateral to support our forward month fair value derivative activity. We are not subject to any credit-risk related trigger events. We have no other financial investment arrangements that would serve to offset our derivative contracts.

Forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated statements of operations were as follows for the periods indicated (in thousands):

	Gains (losses)
	Three Months Ended
	March 31,
	2021		2020
Revenues – marketing	$	20	$	19

Fair Value Measurements

The following tables set forth, by level with the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated (in thousands):

	Fair Value Measurements Using
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	and Liabilities		Inputs		Inputs		Counterparty
	(Level 1)		(Level 2)		(Level 3)		Offsets		Total
March 31, 2021
Derivatives:
Current assets	$	—	$	576	$	—	$	—	$	576
Current liabilities	—		(546)		—		—		(546)
Net value	$	—	$	30	$	—	$	—	$	30
December 31, 2020
Derivatives:
Current assets	$	—	$	61	$	—	$	—	$	61
Current liabilities	—		(52)		—		—		(52)
Net value	$	—	$	9	$	—	$	—	$	9

These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of these inputs requires judgments.

When determining fair value measurements, we make credit valuation adjustments to reflect both our own nonperformance risk and our counterparty’s nonperformance risk. When adjusting the fair value of derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements. Credit valuation adjustments utilize Level 3 inputs, such as credit scores to evaluate the likelihood of default by us or our counterparties. At March 31, 2021 and December 31, 2020, credit valuation adjustments were not significant to the overall valuation of our fair value contracts. As a result, applicable fair value assets and liabilities are included in their entirety in the fair value hierarchy.

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Stock-Based Compensation Plan

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Plan

Stock-Based Compensation Plan

We have in place a long-term incentive plan in which any employee or non-employee director who provides services to us is eligible to participate. The 2018 LTIP, which is overseen by the Compensation Committee of our Board of Directors, provides for the grant of various types of equity awards, of which restricted stock unit awards and performance-based compensation awards have been granted. The maximum number of shares authorized for issuance under the 2018 LTIP is 150,000 shares, and the 2018 LTIP is effective until May 8, 2028. After giving effect to awards granted and forfeitures made under the 2018 LTIP, the achievement of performance factors through December 31, 2020, and assuming the potential achievement of the maximum amounts of the performance factors through March 31, 2021, a total of 37,761 shares were available for issuance.

Compensation expense recognized in connection with equity-based awards was as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Compensation expense	$	185	$	134

At March 31, 2021 and December 31, 2020, we had $62,900 and $50,800, respectively, of accrued dividend amounts for awards granted under the 2018 LTIP.

Restricted Stock Unit Awards

The following table presents restricted stock unit award activity for the periods indicated:

		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share (1)
Restricted stock unit awards at January 1, 2021	27,490	$	28.64
Granted (2)	26,369	$	29.70
Vested	(8,544)	$	24.83
Forfeited	—	$	—
Restricted stock unit awards at March 31, 2021	45,315	$	29.97

_______________

(1)Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2)The aggregate grant date fair value of restricted stock unit awards issued during 2021 was $0.8 million based on a grant date market price of our common shares ranging from $29.70 to $30.00 per share.

Unrecognized compensation cost associated with restricted stock unit awards was approximately $0.9 million at March 31, 2021. Due to the graded vesting provisions of these awards, we expect to recognize the remaining compensation cost for these awards over a weighted-average period of 1.7 years.

Performance Share Unit Awards

The following table presents performance share unit award activity for the periods indicated:

		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share (1)
Performance share unit awards at January 1, 2021	16,241	$	27.67
Granted (2)	12,205	$	29.70
Vested	—	$	—
Forfeited	—	$	—
Performance share unit awards at March 31, 2021	28,446	$	28.54

_______________

(1)Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2)The aggregate grant date fair value of performance share unit awards issued during 2021 was $0.4 million based on a grant date market price of our common shares of $29.70 per share and assuming a performance factor of 100 percent.

Unrecognized compensation cost associated with performance share unit awards was approximately $0.6 million at March 31, 2021. We expect to recognize the remaining compensation cost for these awards over a weighted-average period of 2.5 years.

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Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash paid for interest	$	220	$	150
Cash paid for federal and state income taxes	2		21
Non-cash transactions:
Change in accounts payable related to property and equipment additions	(44)		1,129
Property and equipment acquired under finance leases	2,091		—

See Note 13 for information related to other non-cash transactions related to leases.

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Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Leases

The following table provides the components of lease expense for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Finance lease cost:
Amortization of ROU assets	$	1,140	$	553
Interest on lease liabilities	110		74
Operating lease cost	623		679
Short-term lease cost	3,212		2,503
Variable lease cost	1		—
Total lease expense	$	5,086	$	3,809

The following table provides supplemental cash flow and other information related to leases for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	622	$	678
Operating cash flows from finance leases	109		105
Financing cash flows from finance leases	1,014		532
ROU assets obtained in exchange for new lease liabilities:
Finance leases	2,091		—
Operating leases	264		81

______________

(1)Amounts are included in Other operating activities on the unaudited condensed consolidated statements of cash flows.

The following table provides the lease terms and discount rates for the periods indicated:

	Three Months Ended
	March 31,
	2021	2020
Weighted-average remaining lease term (years):
Finance leases	4.10	2.78
Operating leases	4.32	4.58
Weighted-average discount rate:
Finance leases	2.8%	4.9%
Operating leases	4.2%	5.0%

The following table provides supplemental balance sheet information related to leases at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Assets
Finance lease ROU assets (1)	$	16,202	$	15,251
Operating lease ROU assets	7,774		8,051
Liabilities
Current
Finance lease liabilities	4,494		4,112
Operating lease liabilities	2,172		2,050
Noncurrent
Finance lease liabilities	12,202		11,507
Operating lease liabilities	5,603		6,000

______________

(1)Amounts are included in Property and equipment, net on the unaudited condensed consolidated balance sheets.

The following table provides maturities of undiscounted lease liabilities at March 31, 2021 (in thousands):

	Finance		Operating
	Lease		Lease
Remainder of 2021	$	3,657	$	1,845
2022	3,942		2,128
2023	3,145		1,839
2024	2,350		1,702
2025	3,773		222
Thereafter	802		674
Total lease payments	17,669		8,410
Less: Interest	(973)		(635)
Present value of lease liabilities	16,696		7,775
Less: Current portion of lease obligation	(4,494)		(2,172)
Total long-term lease obligation	$	12,202	$	5,603

The following table provides maturities of undiscounted lease liabilities at December 31, 2020 (in thousands):

	Finance		Operating
	Lease		Lease
2021	$	4,496	$	2,343
2022	3,562		2,002
2023	2,764		1,821
2024	1,969		1,700
2025	2,992		222
Thereafter	802		675
Total lease payments	16,585		8,763
Less: Interest	(966)		(713)
Present value of lease liabilities	15,619		8,050
Less: Current portion of lease obligation	(4,112)		(2,050)
Total long-term lease obligation	$	11,507	$	6,000

Leases

Leases

The following table provides the components of lease expense for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Finance lease cost:
Amortization of ROU assets	$	1,140	$	553
Interest on lease liabilities	110		74
Operating lease cost	623		679
Short-term lease cost	3,212		2,503
Variable lease cost	1		—
Total lease expense	$	5,086	$	3,809

The following table provides supplemental cash flow and other information related to leases for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	622	$	678
Operating cash flows from finance leases	109		105
Financing cash flows from finance leases	1,014		532
ROU assets obtained in exchange for new lease liabilities:
Finance leases	2,091		—
Operating leases	264		81

______________

(1)Amounts are included in Other operating activities on the unaudited condensed consolidated statements of cash flows.

The following table provides the lease terms and discount rates for the periods indicated:

	Three Months Ended
	March 31,
	2021	2020
Weighted-average remaining lease term (years):
Finance leases	4.10	2.78
Operating leases	4.32	4.58
Weighted-average discount rate:
Finance leases	2.8%	4.9%
Operating leases	4.2%	5.0%

The following table provides supplemental balance sheet information related to leases at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Assets
Finance lease ROU assets (1)	$	16,202	$	15,251
Operating lease ROU assets	7,774		8,051
Liabilities
Current
Finance lease liabilities	4,494		4,112
Operating lease liabilities	2,172		2,050
Noncurrent
Finance lease liabilities	12,202		11,507
Operating lease liabilities	5,603		6,000

______________

(1)Amounts are included in Property and equipment, net on the unaudited condensed consolidated balance sheets.

The following table provides maturities of undiscounted lease liabilities at March 31, 2021 (in thousands):

	Finance		Operating
	Lease		Lease
Remainder of 2021	$	3,657	$	1,845
2022	3,942		2,128
2023	3,145		1,839
2024	2,350		1,702
2025	3,773		222
Thereafter	802		674
Total lease payments	17,669		8,410
Less: Interest	(973)		(635)
Present value of lease liabilities	16,696		7,775
Less: Current portion of lease obligation	(4,494)		(2,172)
Total long-term lease obligation	$	12,202	$	5,603

The following table provides maturities of undiscounted lease liabilities at December 31, 2020 (in thousands):

	Finance		Operating
	Lease		Lease
2021	$	4,496	$	2,343
2022	3,562		2,002
2023	2,764		1,821
2024	1,969		1,700
2025	2,992		222
Thereafter	802		675
Total lease payments	16,585		8,763
Less: Interest	(966)		(713)
Present value of lease liabilities	15,619		8,050
Less: Current portion of lease obligation	(4,112)		(2,050)
Total long-term lease obligation	$	11,507	$	6,000

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Insurance

We have accrued liabilities for estimated workers’ compensation and other casualty claims incurred based upon claim reserves plus an estimate for loss development and incurred but not reported claims. We self-insure a significant portion of expected losses relating to workers’ compensation, general liability and automobile liability, with a self-insured retention of $1.0 million. Insurance is purchased over our retention to reduce our exposure to catastrophic events. We also share 20 percent of the risk of loss, capped at $1.0 million for any claims in excess of $5.0 million. Estimates are recorded for potential and incurred outstanding liabilities for workers’ compensation, auto and general liability claims and claims that are incurred but not reported. Estimates are based on adjusters’ estimates, historical experience and statistical methods commonly used within the insurance industry that we believe are reliable. We have also engaged a third-party actuary to perform a review of our accrued liability for these claims as well as potential funded losses in our captive insurance company. Insurance estimates include certain assumptions and management judgments regarding the frequency and severity of claims, claim development and settlement practices and the selection of estimated loss among estimates derived using different methods. Unanticipated changes in these factors may produce materially different amounts of expense that would be reported under these programs.

On October 1, 2020, we elected to utilize a wholly owned insurance captive to insure the self-insured retention for our workers’ compensation, general liability and automobile liability insurance programs. All accrued liabilities associated with periods from October 1, 2017 through current were transferred to the captive.

We maintain excess property and casualty reinsurance programs with third-party insurers in an effort to limit the financial impact of significant events covered under these programs. Our operating subsidiaries pay premiums to both the excess and reinsurance carriers and our captive for the estimated losses based on an external actuarial analysis. These premiums held by our wholly owned captive are currently held in a restricted account, resulting in a transfer of risk from our operating subsidiaries to the captive.

We also maintain a self-insurance program for managing employee medical claims in excess of employee deductibles. As claims are paid, the liability is relieved. We also maintain third party insurance stop-loss coverage for individual medical claims exceeding a certain minimum threshold. In addition, we maintain $1.4 million of umbrella insurance coverage for annual aggregate medical claims exceeding approximately $7.5 million.

Our accruals for automobile, workers’ compensation and medical claims were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Pre-funded premiums for losses incurred but not reported	$	55	$	55
Accrued automobile and workers’ compensation claims	3,913		3,171
Accrued medical claims	1,033		915

Litigation

From time to time as incidental to our operations, we may become involved in various lawsuits and/or disputes. Primarily as an operator of an extensive trucking fleet, we are a party to motor vehicle accidents, worker compensation claims and other items of general liability as would be typical for the industry. We are presently unaware of any claims against us that are either outside the scope of insurance coverage or that may exceed the level of insurance coverage and could potentially represent a material adverse effect on our financial position, results of operations or cash flows.

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Subsequent Event

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On May 4, 2021, we entered into a Credit Agreement (“Credit Agreement”) with Wells Fargo Bank, National Association, as Agent and Issuing Lender, under which we may borrow an aggregate of up to $40.0 million under a revolving credit facility (the “Revolving Credit Facility”), which will mature on May 4, 2024, subject to our compliance with certain financial covenants.

For each borrowing under the Revolving Credit Facility, we can elect whether the loans bear interest at (i) the Base Rate plus Applicable Margin; or (ii) the LIBOR Rate plus Applicable Margin. Base Rate is the highest of (a) the Prime Rate, (b) the Federal Funds Rate, plus 0.50% and (c) LIBOR for an interest period of three months plus 1.00%. The Applicable Margin to be added to a Base Rate borrowing is 0.75%. The LIBOR Rate is (x) LIBOR (which shall not be less than 1.00%) divided by (y) 1.00 minus the Eurodollar Reserve Percentage. The Applicable Margin to be added to a LIBOR borrowing is 1.75%. A commitment fee of 0.25% per annum will accrue on the daily average unused amount of the commitments under the Revolving Credit Facility.

Under the Credit Agreement, we are required to maintain compliance with certain financial covenants, as described in the Credit Agreement, commencing with the quarter ending June 30, 2021. Our obligations under the Credit Agreement are secured by a pledge of substantially all of our personal property and substantially all of the personal property of certain of our other direct and indirect subsidiaries.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Organization

Organization

Adams Resources & Energy, Inc. is a publicly traded Delaware corporation organized in 1973, the common shares of which are listed on the NYSE American LLC under the ticker symbol “AE”. Through our subsidiaries, we are primarily engaged in crude oil marketing, transportation, terminalling and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico, and with fifteen terminals across the U.S. Unless the context requires otherwise, references to “we,” “us,” “our” or “Company” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries.  

We operate and report in three business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; and (iii) pipeline transportation, terminalling and storage of crude oil. See Note 7 for further information regarding our business segments.

Basis of Presentation

Basis of Presentation

Our results of operations for the three months ended March 31, 2021 are not necessarily indicative of results expected for the full year of 2021. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals necessary for fair presentation.  The condensed consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the rules of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) filed with the SEC on March 5, 2021. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Use of EstimatesThe preparation of our financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. While we believe the estimates and assumptions used in the preparation of these condensed consolidated financial statements are appropriate, actual results could differ from those estimates.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted CashAt March 31, 2021 and December 31, 2020, $5.1 million and $5.1 million, respectively, of the restricted cash balance represented amounts held in a segregated bank account by Wells Fargo as collateral for outstanding letters of credit. At March 31, 2021 and December 31, 2020, $1.5 million and $1.5 million, respectively, of the restricted cash balance related to the initial capitalization of our captive insurance company formed in late 2020 and $5.7 million and $6.1 million, respectively, represented the amount paid to our captive insurance company for insurance premiums.

Earnings Per Share

Earnings Per ShareBasic earnings (losses) per share is computed by dividing our net earnings (losses) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (losses) per share is computed by giving effect to all potential shares of common stock outstanding, including our stock related to unvested restricted stock unit awards. Unvested restricted stock unit awards granted under the Adams Resources & Energy, Inc. 2018 Long-Term Incentive Plan (“2018 LTIP”) are not considered to be participating securities as the holders of these shares do not have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares (see Note 11 for further discussion).

Fair Value Measurements

Fair Value Measurements

The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are recorded at fair value based on market quotations from actively traded liquid markets.

A three-tier hierarchy has been established that classifies fair value amounts recognized in the financial statements based on the observability of inputs used to estimate these fair values.  The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3).  At each balance sheet reporting date, we categorize our financial assets and liabilities using this hierarchy.

Fair value contracts consist of derivative financial instruments and are recorded as either an asset or liability measured at its fair value. Changes in fair value are recognized immediately in earnings unless the derivatives qualify for, and we elect, cash flow hedge accounting. We had no contracts designated for hedge accounting during any current reporting periods (see Note 10 for further information).

Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability method. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of these items and their respective tax basis.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted and signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating losses (“NOL”) incurred in tax years 2018, 2019 and 2020 to offset 100 percent of taxable income and be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.

We have determined that the NOL carryback provision in the CARES Act would result in a cash benefit to us for the fiscal years 2018 and 2019. We carried back our NOL for fiscal year 2018 to 2013, and in June 2020, we received a cash refund of approximately $2.7 million. We have income tax receivables at March 31, 2021 of approximately $3.7 million for the benefit of carrying back the NOL for the fiscal year 2019 to 2014 and approximately $6.8 million for the benefit of carrying back the NOL for the fiscal year 2020 to 2015 and 2016. As we are carrying the losses back to years beginning before January 1, 2018, the receivables were recorded at the previous 35 percent federal tax rate rather than the current statutory rate of 21 percent.

Inventory

InventoryInventory consists of crude oil held in storage tanks and at third-party pipelines as part of our crude oil marketing and pipeline and storage operations. Crude oil inventory is carried at the lower of cost or net realizable value. At the end of each reporting period, we assess the carrying value of our inventory and make adjustments necessary to reduce the carrying value to the applicable net realizable value. Any resulting adjustments are a component of marketing costs and expenses or pipeline and storage expenses on our consolidated statements of operations. During the three months ended March 31, 2020, we recorded a charge of $24.2 million related to the write-down of our crude oil inventory in our crude oil marketing segment due to declines in prices.

Property and Equipment

Property and Equipment

Property and equipment is recorded at cost. Expenditures for additions, improvements and other enhancements to property and equipment are capitalized, and minor replacements, maintenance and repairs that do not extend asset life or add value are charged to expense as incurred. When property and equipment assets are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in results of operations in operating costs and expenses for the respective period. Property and equipment, except for land, is depreciated using the straight-line method over the estimated average useful lives ranging from two to thirty-nine years.

We review our long-lived assets for impairment whenever there is evidence that the carrying value of these assets may not be recoverable. Any impairment recognized is permanent and may not be restored. Property and equipment is reviewed at the lowest level of identifiable cash flows. For property and equipment requiring impairment, the fair value is estimated based on an internal discounted cash flow model of future cash flows.

Stock-Based Compensation

Stock-Based CompensationWe measure all share-based payment awards, including the issuance of restricted stock unit awards and performance share unit awards to employees and board members, using a fair-value based method. The cost of services received from employees and non-employee board members in exchange for awards of equity instruments is recognized in the consolidated statements of operations based on the estimated fair value of those awards on the grant date and is amortized on a straight-line basis over the requisite service period. The fair value of restricted stock unit awards and performance share unit awards is based on the closing price of our common stock on the grant date. We account for forfeitures as they occur.

Other Crude Oil Marketing Revenue

Other Crude Oil Marketing Revenue

Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these contracts are marked-to-market and recorded on a net revenue basis in the accompanying consolidated financial statements.

Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying consolidated financial statements

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Cash and Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash as reported in the unaudited condensed consolidated balance sheets that totals to the amounts shown in the unaudited condensed consolidated statements of cash flows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Cash and cash equivalents	$	58,985	$	39,293
Restricted cash	12,377		12,772
Total cash, cash equivalents and restricted cash shown in the
unaudited condensed consolidated statements of cash flows	$	71,362	$	52,065

Schedule of Common Stock Outstanding

The following table reconciles our outstanding common stock for the periods indicated:

	Common
	shares
Balance, January 1, 2021	4,243,716
Vesting of restricted stock unit awards	8,544
Shares withheld to cover taxes upon vesting of restricted stock unit awards	(1,245)
Balance, March 31, 2021	4,251,015

Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of the calculation of basic and diluted earnings (losses) per share was as follows for the periods indicated (in thousands, except per share data):

	Three Months Ended
	March 31,
	2021		2020
Earnings (losses) per share — numerator:
Net earnings (losses)	$	2,808	$	(11,427)
Denominator:
Basic weighted average number of shares outstanding	4,246		4,236
Basic earnings (losses) per share	$	0.66	$	(2.70)
Diluted earnings (losses) per share:
Diluted weighted average number of shares outstanding:
Common shares	4,246		4,236
Restricted stock unit awards	18		12
Performance share unit awards (1)	7		2
Total diluted shares	4,271		4,250
Diluted earnings (losses) per share	$	0.66	$	(2.69)

_______________

(1)The dilutive effect of performance share awards are included in the calculation of diluted earnings per share when the performance share award performance conditions have been achieved.

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates our revenue by segment and by major source for the periods indicated (in thousands):

	Reporting Segments
	Marketing		Transportation		Pipeline and storage		Total
Three Months Ended March 31, 2021
Revenues from contracts with customers	$	297,475	$	21,235	$	233	$	318,943
Other (1)	6,548		—		—		6,548
Total revenues	$	304,023	$	21,235	$	233	$	325,491
Timing of revenue recognition:
Goods transferred at a point in time	$	297,475	$	—	$	—	$	297,475
Services transferred over time	—		21,235		233		21,468
Total revenues from contracts with customers	$	297,475	$	21,235	$	233	$	318,943
Three Months Ended March 31, 2020
Revenues from contracts with customers	$	319,717	$	16,256	$	—	$	335,973
Other (1)	17,504		—		—		17,504
Total revenues	$	337,221	$	16,256	$	—	$	353,477
Timing of revenue recognition:
Goods transferred at a point in time	$	319,717	$	—	$	—	$	319,717
Services transferred over time	—		16,256		—		16,256
Total revenues from contracts with customers	$	319,717	$	16,256	$	—	$	335,973

_______________

(1)Other crude oil marketing revenues are recognized under ASC 815, Derivatives and Hedging, and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Revenue gross-up	$	134,866	$	157,439

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Prepayments and Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Components of Prepayments and Other Current Assets

The components of prepayments and other current assets were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Insurance premiums	$	793	$	690
Vendor prepayment	1,690		1,085
Rents, licenses and other	1,138		1,189
Total prepayments and other current assets	$	3,621	$	2,964

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property and equipment

The historical costs of our property and equipment and related accumulated depreciation and amortization balances were as follows at the dates indicated (in thousands):

	Estimated
	Useful Life	March 31,		December 31,
	in Years	2021		2020
Tractors and trailers	5 – 6	$	101,535	$	101,813
Field equipment	2 – 5	22,318		22,139
Finance lease ROU assets (1)	3 – 6	22,357		20,266
Pipeline and related facilities	20 – 25	21,275		21,265
Linefill and base gas (2)	N/A	3,333		3,333
Buildings	5 – 39	14,977		14,977
Office equipment	2 – 5	1,905		1,893
Land	N/A	1,790		1,790
Construction in progress	N/A	716		1,626
Total		190,206		189,102
Less accumulated depreciation and amortization		(99,563)		(94,968)
Property and equipment, net		$	90,643	$	94,134

_______________

(1)Our finance lease right-of-use (“ROU)” assets arise from leasing arrangements for the right to use various classes of underlying assets including tractors, trailers, a tank storage and throughput arrangement and office equipment (see Note 13 for further information). Accumulated amortization of the assets presented as “Finance lease ROU assets” was $6.2 million and $5.0 million at March 31, 2021 and December 31, 2020, respectively.

(2)Linefill and base gas represents crude oil in the VEX pipeline and storage tanks we own, and the crude oil is recorded at historical cost.

Components of depreciation and amortization expense were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Depreciation and amortization, excluding amounts under finance leases	$	3,913	$	3,920
Amortization of property and equipment under finance leases	1,140		553
Total depreciation and amortization	$	5,053	$	4,473

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Other Assets (Tables)

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

Components of other assets were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Amounts associated with liability insurance program:
Insurance collateral deposits	$	714	$	714
Excess loss fund	617		617
Accumulated interest income	459		449
Other amounts:
State collateral deposits	42		31
Materials and supplies	460		488
Other	190		84
Total other assets	$	2,482	$	2,383

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Information concerning business activities

Financial information by reporting segment was as follows for the periods indicated (in thousands):

	Reporting Segments
	Marketing		Transportation		Pipeline and storage		Other		Total
Three Months Ended March 31, 2021
Segment revenues (1)	$	304,023	$	21,268	$	419	$	—	$	325,710
Less: Intersegment revenues (1)	—		(33)		(186)		—		(219)
Revenues	$	304,023	$	21,235	$	233	$	—	$	325,491
Segment operating earnings (losses) (2)	7,018		774		(565)		—		7,227
Depreciation and amortization	1,798		3,001		254		—		5,053
Property and equipment additions (3)(4)(5)	210		(58)		10		8		170
Three Months Ended March 31, 2020
Segment revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Less: Intersegment revenues	—		—		—		—		—
Revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Segment operating earnings (losses) (2)	(17,651)		605		—		—		(17,046)
Depreciation and amortization	2,007		2,466		—		—		4,473
Property and equipment additions (3) (4)	2,032		41		—		139		2,212

_______________

(1)Segment revenues include intersegment amounts that are eliminated in operating costs and expenses in our unaudited condensed consolidated statements of operations. Intersegment activities are conducted at posted tariff rates where applicable, or otherwise at rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed.

(2)Our crude oil marketing segment’s operating (losses) earnings included inventory liquidation gains of $6.9 million and inventory valuation losses of $24.2 million for the three months ended March 31, 2021 and 2020, respectively.

(3)Our segment property and equipment additions do not include assets acquired under finance leases during the three months ended March 31, 2021. See Note 13 for further information.

(4)During the three months ended March 31, 2021 and 2020, we had $8.0 thousand and $0.1 million, respectively, of property and equipment additions for computer equipment and leasehold improvements at our corporate headquarters, which were not attributed or allocated to any of our reporting segments.

(5)During the three months ended March 31, 2021, we received a refund of approximately $0.3 million for amounts previously spent in our transportation segment, which has been reflected as a reduction in property and equipment additions.

Reconciliation of segment earnings to earnings before income taxes

Segment operating earnings (losses) reflect revenues net of operating costs and depreciation and amortization expense and are reconciled to earnings (losses) before income taxes, as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Segment operating earnings (losses)	$	7,227	$	(17,046)
General and administrative	(3,376)		(2,894)
Operating earnings (losses)	3,851		(19,940)
Interest and other income	134		365
Interest expense	(220)		(150)
Earnings (losses) before income taxes	$	3,765	$	(19,725)

Identifiable assets by industry segment

Identifiable assets by business segment were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Reporting segment:
Marketing	$	153,723	$	128,441
Transportation	65,572		72,247
Pipeline and storage	24,290		24,541
Cash and other (1)	88,717		70,958
Total assets	$	332,302	$	296,187

_______________

(1)Other identifiable assets are primarily corporate cash, corporate accounts receivable, properties and operating lease right-of-use assets not identified with any specific segment of our business.

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Transactions with Affiliates (Tables)

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Activities with affiliates

Activities with affiliates were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Affiliate billings to us	$	12	$	17
Billings to affiliates	1		1
Rentals paid to affiliate	174		122

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Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

The components of other current liabilities were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Accrued purchase price for VEX acquisition	$	7,500	$	10,000
Accrual for payroll, benefits and bonuses	5,865		6,575
Accrued automobile and workers’ compensation claims	3,913		3,171
Accrued medical claims	1,033		915
Other	1,577		1,682
Total other current liabilities	$	19,888	$	22,343

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Derivative Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives reflected in the consolidated balance sheet

The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheets were as follows at the dates indicated (in thousands):

	Balance Sheet Location and Amount
	Current		Other		Current		Other
	Assets		Assets		Liabilities		Liabilities
March 31, 2021
Asset derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	$	576	$	—	$	—	$	—
Liability derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	—		—		546		—
Less counterparty offsets	—		—		—		—
As reported fair value contracts	$	576	$	—	$	546	$	—
December 31, 2020
Asset derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	$	61	$	—	$	—	$	—
Liability derivatives:
Fair value forward hydrocarbon commodity
contracts at gross valuation	—		—		52		—
Less counterparty offsets	—		—		—		—
As reported fair value contracts	$	61	$	—	$	52	$	—

Derivatives reflected in the consolidated statement of operations

Forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated statements of operations were as follows for the periods indicated (in thousands):

	Gains (losses)
	Three Months Ended
	March 31,
	2021		2020
Revenues – marketing	$	20	$	19

Fair value assets and liabilities

The following tables set forth, by level with the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated (in thousands):

	Fair Value Measurements Using
	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	and Liabilities		Inputs		Inputs		Counterparty
	(Level 1)		(Level 2)		(Level 3)		Offsets		Total
March 31, 2021
Derivatives:
Current assets	$	—	$	576	$	—	$	—	$	576
Current liabilities	—		(546)		—		—		(546)
Net value	$	—	$	30	$	—	$	—	$	30
December 31, 2020
Derivatives:
Current assets	$	—	$	61	$	—	$	—	$	61
Current liabilities	—		(52)		—		—		(52)
Net value	$	—	$	9	$	—	$	—	$	9

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Stock-Based Compensation Plan (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Payment Arrangement

Compensation expense recognized in connection with equity-based awards was as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Compensation expense	$	185	$	134

Share-based Compensation, Activity

The following table presents restricted stock unit award activity for the periods indicated:

		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share (1)
Restricted stock unit awards at January 1, 2021	27,490	$	28.64
Granted (2)	26,369	$	29.70
Vested	(8,544)	$	24.83
Forfeited	—	$	—
Restricted stock unit awards at March 31, 2021	45,315	$	29.97

_______________

(1)Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2)The aggregate grant date fair value of restricted stock unit awards issued during 2021 was $0.8 million based on a grant date market price of our common shares ranging from $29.70 to $30.00 per share.

The following table presents performance share unit award activity for the periods indicated:

		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	per Share (1)
Performance share unit awards at January 1, 2021	16,241	$	27.67
Granted (2)	12,205	$	29.70
Vested	—	$	—
Forfeited	—	$	—
Performance share unit awards at March 31, 2021	28,446	$	28.54

_______________

(1)Determined by dividing the aggregate grant date fair value of awards by the number of awards issued.

(2)The aggregate grant date fair value of performance share unit awards issued during 2021 was $0.4 million based on a grant date market price of our common shares of $29.70 per share and assuming a performance factor of 100 percent.

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash paid for interest	$	220	$	150
Cash paid for federal and state income taxes	2		21
Non-cash transactions:
Change in accounts payable related to property and equipment additions	(44)		1,129
Property and equipment acquired under finance leases	2,091		—

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Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lease, Cost

The following table provides the components of lease expense for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Finance lease cost:
Amortization of ROU assets	$	1,140	$	553
Interest on lease liabilities	110		74
Operating lease cost	623		679
Short-term lease cost	3,212		2,503
Variable lease cost	1		—
Total lease expense	$	5,086	$	3,809

The following table provides supplemental cash flow and other information related to leases for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	622	$	678
Operating cash flows from finance leases	109		105
Financing cash flows from finance leases	1,014		532
ROU assets obtained in exchange for new lease liabilities:
Finance leases	2,091		—
Operating leases	264		81

______________

(1)Amounts are included in Other operating activities on the unaudited condensed consolidated statements of cash flows.

The following table provides the lease terms and discount rates for the periods indicated:

	Three Months Ended
	March 31,
	2021	2020
Weighted-average remaining lease term (years):
Finance leases	4.10	2.78
Operating leases	4.32	4.58
Weighted-average discount rate:
Finance leases	2.8%	4.9%
Operating leases	4.2%	5.0%

Assets and Liabilities, Lessee

The following table provides supplemental balance sheet information related to leases at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Assets
Finance lease ROU assets (1)	$	16,202	$	15,251
Operating lease ROU assets	7,774		8,051
Liabilities
Current
Finance lease liabilities	4,494		4,112
Operating lease liabilities	2,172		2,050
Noncurrent
Finance lease liabilities	12,202		11,507
Operating lease liabilities	5,603		6,000

______________

(1)Amounts are included in Property and equipment, net on the unaudited condensed consolidated balance sheets.

Lessee, Operating Lease, Liability, Maturity

The following table provides maturities of undiscounted lease liabilities at March 31, 2021 (in thousands):

	Finance		Operating
	Lease		Lease
Remainder of 2021	$	3,657	$	1,845
2022	3,942		2,128
2023	3,145		1,839
2024	2,350		1,702
2025	3,773		222
Thereafter	802		674
Total lease payments	17,669		8,410
Less: Interest	(973)		(635)
Present value of lease liabilities	16,696		7,775
Less: Current portion of lease obligation	(4,494)		(2,172)
Total long-term lease obligation	$	12,202	$	5,603

The following table provides maturities of undiscounted lease liabilities at December 31, 2020 (in thousands):

	Finance		Operating
	Lease		Lease
2021	$	4,496	$	2,343
2022	3,562		2,002
2023	2,764		1,821
2024	1,969		1,700
2025	2,992		222
Thereafter	802		675
Total lease payments	16,585		8,763
Less: Interest	(966)		(713)
Present value of lease liabilities	15,619		8,050
Less: Current portion of lease obligation	(4,112)		(2,050)
Total long-term lease obligation	$	11,507	$	6,000

Finance Lease, Liability, Maturity

The following table provides maturities of undiscounted lease liabilities at March 31, 2021 (in thousands):

	Finance		Operating
	Lease		Lease
Remainder of 2021	$	3,657	$	1,845
2022	3,942		2,128
2023	3,145		1,839
2024	2,350		1,702
2025	3,773		222
Thereafter	802		674
Total lease payments	17,669		8,410
Less: Interest	(973)		(635)
Present value of lease liabilities	16,696		7,775
Less: Current portion of lease obligation	(4,494)		(2,172)
Total long-term lease obligation	$	12,202	$	5,603

The following table provides maturities of undiscounted lease liabilities at December 31, 2020 (in thousands):

	Finance		Operating
	Lease		Lease
2021	$	4,496	$	2,343
2022	3,562		2,002
2023	2,764		1,821
2024	1,969		1,700
2025	2,992		222
Thereafter	802		675
Total lease payments	16,585		8,763
Less: Interest	(966)		(713)
Present value of lease liabilities	15,619		8,050
Less: Current portion of lease obligation	(4,112)		(2,050)
Total long-term lease obligation	$	11,507	$	6,000

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of expenses and losses incurred but not reported and accrued workers' compensation

Our accruals for automobile, workers’ compensation and medical claims were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Pre-funded premiums for losses incurred but not reported	$	55	$	55
Accrued automobile and workers’ compensation claims	3,913		3,171
Accrued medical claims	1,033		915

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Organization and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2021 segment state
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states in which entity operates | state	48
Number of operating segments	3
Number of reportable segments	3

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Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 12,377	$ 12,772
Letter of Credit
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	5,100	5,100
Initial Capitalization
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	1,500	1,500
Insurance Premiums
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 5,700	$ 6,100

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Summary of Significant Accounting Policies - Reconciliation of Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 58,985	$ 39,293
Restricted cash	12,377	12,772
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statements of cash flows	$ 71,362	$ 52,065	$ 96,225	$ 122,255

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Summary of Significant Accounting Policies - Common Shares Outstanding (Details)	3 Months Ended
	Mar. 31, 2021 shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	4,243,716
Vesting of restricted stock unit awards (in shares)	8,544
Shares withheld to cover taxes upon vesting of restricted stock unit awards (in shares)	(1,245)
Ending balance (in shares)	4,251,015

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Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Earnings (Losses) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Basic earnings per share:
Net earnings (losses)	$ 2,808	$ (11,427)
Basic weighted average number of shares outstanding (in shares)	4,246	4,236
Basic earnings (losses) per share (in dollars per share)	$ 0.66	$ (2.70)
Diluted weighted average number of shares outstanding:
Common shares (in shares)	4,246	4,236
Total diluted shares (in shares)	4,271	4,250
Diluted earnings (losses) per share (in dollars per share)	$ 0.66	$ (2.69)
Restricted stock units awards
Diluted weighted average number of shares outstanding:
Unit awards (in shares)	18	12
Performance share unit awards
Diluted weighted average number of shares outstanding:
Unit awards (in shares)	7	2

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Summary of Significant Accounting Policies - Fair Value (Details)	Mar. 31, 2021 contract
Hedging accounting
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of contracts held	0

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Summary of Significant Accounting Policies - Income Taxes, Inventory and Property and Equipment (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2021	Mar. 31, 2020
Accounting Policies [Abstract]
Income tax cash refunds	$ 2,700
CARES Act, cash benefits for the fiscal year 2019		$ 3,700
CARES Act, cash benefits for the fiscal year 2020		$ 6,800
Inventory write-down			$ 24,200
Minimum
Property, Plant and Equipment [Abstract]
Property and equipment, useful life		2 years
Maximum
Property, Plant and Equipment [Abstract]
Property and equipment, useful life		39 years

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Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	$ 318,943	$ 335,973
Total revenues	325,491	353,477
Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	297,475	319,717
Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	21,468	16,256
Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	318,943	335,973
Other
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	6,548	17,504
Marketing
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	297,475	319,717
Total revenues	304,023	337,221
Marketing | Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	297,475	319,717
Marketing | Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	0	0
Marketing | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	297,475	319,717
Marketing | Other
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	6,548	17,504
Transportation
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	21,235	16,256
Total revenues	21,235	16,256
Transportation | Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	0	0
Transportation | Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	21,235	16,256
Transportation | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	21,235	16,256
Transportation | Other
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	0	0
Pipeline and storage
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	233	0
Total revenues	233	0
Pipeline and storage | Goods transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	0	0
Pipeline and storage | Services transferred over time
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	233	0
Pipeline and storage | Revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	233	0
Pipeline and storage | Other
Disaggregation of Revenue [Line Items]
Total revenues from contracts with customers	$ 0	$ 0

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Revenue Recognition - Other Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue gross-up	$ 134,866	$ 157,439

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Prepayments and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Insurance premiums	$ 793	$ 690
Vendor prepayment	1,690	1,085
Rents, licenses and other	1,138	1,189
Total prepayments and other current assets	$ 3,621	$ 2,964

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Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 190,206		$ 189,102
Less accumulated depreciation and amortization	(99,563)		(94,968)
Property and equipment, net	90,643		94,134
Total depreciation and amortization	5,053	$ 4,473
Assets not held under finance leases
Property, Plant and Equipment [Line Items]
Total depreciation and amortization	3,913	3,920
Assets held under finance leases
Property, Plant and Equipment [Line Items]
Total depreciation and amortization	$ 1,140	$ 553
Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	39 years
Tractors and trailers
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 101,535		101,813
Tractors and trailers | Assets held under finance leases
Property, Plant and Equipment [Line Items]
Less accumulated depreciation and amortization	$ (6,200)		(5,000)
Tractors and trailers | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Tractors and trailers | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	6 years
Field equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 22,318		22,139
Field equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Field equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Finance lease ROU assets
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 22,357		20,266
Finance lease ROU assets | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Finance lease ROU assets | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	6 years
Pipeline and related facilities
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 21,275		21,265
Pipeline and related facilities | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	20 years
Pipeline and related facilities | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	25 years
Linefill and base gas
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,333		3,333
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 14,977		14,977
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	39 years
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,905		1,893
Office equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Office equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,790		1,790
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 716		$ 1,626

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Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Insurance collateral deposits	$ 714	$ 714
Excess loss fund	617	617
Accumulated interest income	459	449
State collateral deposits	42	31
Materials and supplies	460	488
Other	190	84
Total other assets	$ 2,482	$ 2,383

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Segment Reporting - Information Concerning Business Activities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) segment	Mar. 31, 2020 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	3
Number of operating segments | segment	3
Segment Reporting Information [Line Items]
Revenues	$ 325,491	$ 353,477
Segment operating earnings (losses)	3,851	(19,940)
Depreciation and amortization	5,053	4,473
Property and equipment additions	170	2,212
Refund received	300
Leasehold Improvements
Segment Reporting Information [Line Items]
Property and equipment additions	8	100
Marketing
Segment Reporting Information [Line Items]
Revenues	304,023	337,221
Depreciation and amortization	1,798	2,007
Property and equipment additions	210	2,032
Inventory liquidation (losses) gains	6,900	(24,200)
Transportation
Segment Reporting Information [Line Items]
Revenues	21,235	16,256
Depreciation and amortization	3,001	2,466
Property and equipment additions	(58)	41
Pipeline and storage
Segment Reporting Information [Line Items]
Revenues	233	0
Depreciation and amortization	254	0
Property and equipment additions	10	0
Operating segments
Segment Reporting Information [Line Items]
Revenues	325,710	353,477
Segment operating earnings (losses)	7,227	(17,046)
Operating segments | Marketing
Segment Reporting Information [Line Items]
Revenues	304,023	337,221
Segment operating earnings (losses)	7,018	(17,651)
Operating segments | Transportation
Segment Reporting Information [Line Items]
Revenues	21,268	16,256
Segment operating earnings (losses)	774	605
Operating segments | Pipeline and storage
Segment Reporting Information [Line Items]
Revenues	419	0
Segment operating earnings (losses)	(565)	0
Other
Segment Reporting Information [Line Items]
Revenues	0	0
Segment operating earnings (losses)	0	0
Depreciation and amortization	0	0
Property and equipment additions	8	139
Intersegment
Segment Reporting Information [Line Items]
Revenues	(219)	0
Intersegment | Marketing
Segment Reporting Information [Line Items]
Revenues	0	0
Intersegment | Transportation
Segment Reporting Information [Line Items]
Revenues	(33)	0
Intersegment | Pipeline and storage
Segment Reporting Information [Line Items]
Revenues	$ (186)	$ 0

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Segment Reporting - Reconciliation of Segment Earnings to Earnings Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Operating earnings (losses)	$ 3,851	$ (19,940)
General and administrative	(3,376)	(2,894)
Interest and other income	134	365
Interest expense	(220)	(150)
Earnings (Losses) before income taxes	3,765	(19,725)
Operating segments
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Operating earnings (losses)	7,227	(17,046)
General and administrative
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Operating earnings (losses)	0	0
General and administrative	(3,376)	(2,894)
Segment reconciling items
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Interest and other income	134	365
Interest expense	$ (220)	$ (150)

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Segment Reporting - Identifiable Assets by Industry Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Segment Reconciliation [Abstract]
Total assets	$ 332,302	$ 296,187
Operating segments
Segment Reconciliation [Abstract]
Total assets	332,302	296,187
Operating segments | Marketing
Segment Reconciliation [Abstract]
Total assets	153,723	128,441
Operating segments | Transportation
Segment Reconciliation [Abstract]
Total assets	65,572	72,247
Operating segments | Pipeline and storage
Segment Reconciliation [Abstract]
Total assets	24,290	24,541
Cash and other
Segment Reconciliation [Abstract]
Total assets	$ 88,717	$ 70,958

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Transactions with Affiliates (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Transactions with Affiliates [Abstract]
Billings to affiliates	$ 318,943	$ 335,973
Affiliated entities
Transactions with Affiliates [Abstract]
Affiliate billings to us	12	17
Billings to affiliates	1	1
Rentals paid to affiliate	$ 174	$ 122

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Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Accrued purchase price for VEX acquisition	$ 7,500	$ 10,000
Accrual for payroll, benefits and bonuses	5,865	6,575
Accrued automobile and workers’ compensation claims	3,913	3,171
Accrued medical claims	1,033	915
Other	1,577	1,682
Total other current liabilities	$ 19,888	$ 22,343

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Derivative Instruments and Fair Value Measurements - Narrative (Details) - Commodity Contract	3 Months Ended	12 Months Ended
	Mar. 31, 2021 barrel_of_oil_per_day contract	Dec. 31, 2020 barrel_of_oil_per_day contract
Derivative Instruments, Gain (Loss) [Line Items]
Number of contracts held | contract	7	6
Number of contracts held, fair value | contract	5	3
April 2021 through December 2021
Derivative Instruments, Gain (Loss) [Line Items]
Production | barrel_of_oil_per_day	740
January 2021 through December 2021
Derivative Instruments, Gain (Loss) [Line Items]
Production | barrel_of_oil_per_day		192

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Derivative Instruments and Fair Value Measurements - Use of Derivative Instruments (Details) - Commodity Contract - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Derivatives, Fair Value [Line Items]
Asset derivatives	$ 576	$ 61
Liability derivatives	0	0
Less counterparty offsets	0	0
As reported fair value contracts	576	61
Other Assets
Derivatives, Fair Value [Line Items]
Asset derivatives	0	0
Liability derivatives	0	0
Less counterparty offsets	0	0
As reported fair value contracts	0	0
Current Liabilities
Derivatives, Fair Value [Line Items]
Asset derivatives	0	0
Liability derivatives	546	52
Less counterparty offsets	0	0
As reported fair value contracts	546	52
Other Liabilities
Derivatives, Fair Value [Line Items]
Asset derivatives	0	0
Liability derivatives	0	0
Less counterparty offsets	0	0
As reported fair value contracts	$ 0	$ 0

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Derivative Instruments and Fair Value Measurements - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues – marketing | Not Designated as Hedging Instrument | Commodity Contract
Derivative [Line Items]
Gain (loss) on derivative	$ 20	$ 19

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Derivative Instruments and Fair Value Measurements - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivatives:
Current assets	$ 576	$ 61
Current assets, counterparty offsets	0	0
Current liabilities	(546)	(52)
Current liabilities, counterparty offsets	0	0
Net value	30	9
Net value, counterparty offsets	0	0
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)
Derivatives:
Current assets	0	0
Current liabilities	0	0
Net value	0	0
Significant Other Observable Inputs (Level 2)
Derivatives:
Current assets	576	61
Current liabilities	(546)	(52)
Net value	30	9
Significant Unobservable Inputs (Level 3)
Derivatives:
Current assets	0	0
Current liabilities	0	0
Net value	$ 0	$ 0

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Stock-Based Compensation Plan (Details) - The 2018 LTIP - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	May 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	37,761			150,000
Compensation expense	$ 185,000	$ 134,000
Accrued dividends	$ 62,900		$ 50,800
Restricted stock units awards
Number of Shares
Unit awards, beginning balance (in shares)	27,490
Granted (in shares)	26,369
Vested (in shares)	(8,544)
Forfeited (in shares)	0
Unit awards, ending balance (in shares)	45,315
Weighted Average Grant Date Fair Value per Share
Unit awards, beginning balance (in dollars per share)	$ 28.64
Granted (in dollars per share)	29.70
Vested (in dollars per share)	24.83
Forfeited (in dollars per share)	0
Unit awards, ending balance (in dollars per share)	$ 29.97
Aggregate grant date fair value awards issues	$ 800,000
Unrecognized compensation cost	$ 900,000
Period for recognition for remaining compensation cost	1 year 8 months 12 days
Restricted stock units awards | Minimum
Weighted Average Grant Date Fair Value per Share
Granted (in dollars per share)	$ 29.70
Restricted stock units awards | Maximum
Weighted Average Grant Date Fair Value per Share
Granted (in dollars per share)	$ 30.00
Performance share unit awards
Number of Shares
Unit awards, beginning balance (in shares)	16,241
Granted (in shares)	12,205
Vested (in shares)	0
Forfeited (in shares)	0
Unit awards, ending balance (in shares)	28,446
Weighted Average Grant Date Fair Value per Share
Unit awards, beginning balance (in dollars per share)	$ 27.67
Granted (in dollars per share)	29.70
Vested (in dollars per share)	0
Forfeited (in dollars per share)	0
Unit awards, ending balance (in dollars per share)	$ 28.54
Aggregate grant date fair value awards issues	$ 400,000
Performance factor	100000.00%
Unrecognized compensation cost	$ 600,000
Period for recognition for remaining compensation cost	2 years 6 months

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 220	$ 150
Cash paid for federal and state income taxes	2	21
Non-cash transactions:
Change in accounts payable related to property and equipment additions	(44)	1,129
Property and equipment acquired under finance leases	$ 2,091	$ 0

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Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Lease, Cost [Abstract]
Amortization of ROU assets	$ 1,140	$ 553
Interest on lease liabilities	110	74
Operating lease cost	623	679
Short-term lease cost	3,212	2,503
Variable lease cost	1	0
Total lease expense	5,086	3,809
Operating cash flows from operating leases	622	678
Operating cash flows from finance leases	109	105
Financing cash flows from finance leases	1,014	532
ROU assets obtained in exchange for new lease liabilities, Finance leases	2,091	0
ROU assets obtained in exchange for new lease liabilities, Operating leases	$ 264	$ 81
Weighted-average remaining lease term (years), Finance leases	4 years 1 month 6 days	2 years 9 months 10 days
Weighted-average remaining lease term (years), Operating leases	4 years 3 months 25 days	4 years 6 months 29 days
Weighted-average discount rate, Finance leases	2.80%	4.90%
Weighted-average discount rate, Operating leases	4.20%	5.00%
Assets and Liabilities, Lessee [Abstract]
Finance lease ROU assets	$ 16,202		$ 15,251
Operating lease ROU assets	7,774		8,051
Finance lease liabilities, Current	4,494		4,112
Operating lease liabilities, Current	2,172		2,050
Finance lease liabilities, Noncurrent	12,202		11,507
Operating lease liabilities, Noncurrent	5,603		6,000
Finance Lease Liabilities, Payments
Remainder of 2021	3,657
2022	3,942		4,496
2023	3,145		3,562
2024	2,350		2,764
2025	3,773		1,969
Thereafter	802
2025			2,992
Thereafter			802
Total lease payments	17,669		16,585
Less: Interest	(973)		(966)
Present value of lease liabilities	16,696		15,619
Less: Current portion of lease obligation	(4,494)		(4,112)
Finance lease obligations	12,202		11,507
Operating Lease Liabilities, Payments Due
Remainder of 2020	1,845
2022	2,128		2,343
2023	1,839		2,002
2024	1,702		1,821
2025	222		1,700
Thereafter	674
2024			222
Thereafter			675
Total lease payments	8,410		8,763
Less: Interest	(635)		(713)
Present value of lease liabilities	7,775		8,050
Less: Current portion of lease obligation	(2,172)		(2,050)
Total long-term lease obligation	$ 5,603		$ 6,000

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Commitments and Contingencies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Self-insured retention	$ 1,000,000.0
Percent of risk loss shared	20.00%
Amount of risk loss shared	$ 1,000,000.0
Benchmark for risk of loss amount	5,000,000.0
Umbrellas insurance coverage	1,400,000
Aggregate medical claims for umbrella insurance coverage per calendar year	$ 7,500,000

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Commitments and Contingencies - Pre-funded Insurance (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Pre-funded premiums for losses incurred but not reported	$ 55	$ 55
Accrued automobile and workers’ compensation claims	3,913	3,171
Accrued medical claims	$ 1,033	$ 915

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Subsequent Event (Details) - Subsequent Event - Line of Credit	May 04, 2021 USD ($)
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 40,000,000.0
Commitment fee	0.25%
Aplicable margin	1.75%
Federal Funds Rate
Subsequent Event [Line Items]
Basis spread on variable rate	0.50%
LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate	1.00%
LIBOR | Minimum
Subsequent Event [Line Items]
Basis spread on variable rate	1.00%
Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate	0.75%