Crude transport firm rides tide of oil prices
For Adams Resources & Energy, 2018 was more about keeping up with demand than generating it. The company, whose Service Transport Co. (STC) and GulfMark Energy Inc. (GM) divisions specialize in the marketing, transportation and storage of crude oil and dry-bulk chemicals, rode the wave of rising crude-oil prices by expanding its trucking fleet and adding drivers.
Founded by and named for Houston Oilers founding owner Kenneth
Stanley “Bud” Adams Jr., the company boosted its 2018 revenue by 32 percent to $1.75 billion, while generating net income of $2.95 million, compared to a $482,000 year-earlier net loss. About a third of its approximately 750 employees are in the Houston area.
Much of the credit can go to the continued rise in crude-oil prices, whose average price received for Adams advanced 29 percent last year to $64.53 per barrel.
“The increase in STC is organic and driven by rate increases due to the strong trucking market along with an increase in the number of drivers,” said Adams Chief Financial Officer Tracy Ohmart. “For GM, the revenue growth was due to higher oil prices coupled with a fourthquarter acquisition that added approximately 40,000 barrels per day to our gathered volume.”
Adams looked to double down by adding 113 tractortrailer trucks and 126 trailers in the north Texas and southern Oklahoma area via an acquisition that was finalized last October. This year, the company said it would add another 40 trucks and 53 trailers in the Houston area with the announcement of its acquisition of EH Transport in May.
Meanwhile, Adams has tried to address the challenge of retaining and boosting its driver count within both of its divisions by broadening its perks. Ohmart said the company has had a net addition of 80 drivers during the past year.
“STC has provided increased pay and benefits to drivers, along with providing one of the youngest fleets in the industry,” he added. “STC also has a tuition reimbursement program targeting new drivers.”