----

| x   | Quarterly      report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of      1934 |
|---------------|----------------------------------------------------------------------------------------------------|

| o   | Transition      report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of      1934 |
|---------------|-----------------------------------------------------------------------------------------------------|

| Delaware                                                                |   | 74-1753147                                    |
|-------------------------------------------------------------------------|--------|-----------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | (I.R.S.      EmployerIdentification      No.) |

| 4400 Post Oak Pkwy Ste 2700 , Houston,      Texas  77027 |
|--------------------------------------------------------------------|
| (Address      of principal executive office & ZipCode)         |

----

|                                                                                                                                                                        |   | Three      Months Ended |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                                                                                                        |   | March      31,          |    |
|                                                                                                                                                                        |   | 2008                    |    |   | 2007 |   |
| REVENUES:                                                                                                                                                                   |   |                    |    |   |   |   |
| Marketing                                                                                                                                                                   |   | $                       | 945,637 |   |   | $ | 469,141 |   |
| Transportation                                                                                                                                                              |   |                    | 16,404  |   |   |   | 13,802 |   |
| Oil      and gas                                                                                                                                                            |   |                    | 3,947   |   |   |   | 3,423 |   |
|                                                                                                                                                                        |   |                    | 965,988 |   |   |   | 486,366 |   |
| COSTS      AND EXPENSES:                                                                                                                                                    |   |                    |    |   |   |   |   |   |
| Marketing                            |   |                    | 940,919 |   |   |   | 465,649 |   |
| Transportation                                                                                                                                                              |   |                    | 14,687  |   |   |   | 11,909 |   |
| Oil      and gas                                                                                                                                                            |   |                    | 1,426   |   |   |   | 2,888 |   |
| General      and administrative                                                                                                                                             |   |                    | 2,917   |   |   |   | 2,602 |   |
| Depreciation,      depletion and amortization                                                                                                                               |   |                    | 3,038   |   |   |   | 2,491 |   |
|                                                                                                                                                                        |   |                    | 962,987 |   |   |   | 485,539 |   |
|                                                                                                                                                                        |   |                    |    |   |   |   |   |   |
| Operating      earnings                                                                                                                                                     |   |                    | 3,001   |   |   |   | 827 |   |
| Other      income (expense):                                                                                                                                                |   |                    |    |   |   |   |   |   |
| Interest      income                                                                                                                                                        |   |                    | 355     |   |   |   | 367 |   |
| Interest      expense                                                                                                                                                       |   |                    | (4      | ) |   |   | (31 | ) |
| Earnings      before income tax                                                                                                                                             |   |                    | 3,352   |   |   |   | 1,163 |   |
|                                                                                                                                                                        |   |                    |    |   |   |   |   |   |
| Income      tax provision                                                                                                                                                   |   |                    | 1,141   |   |   |   | 251 |   |
|                                                                                                                                                                        |   |                    |    |   |   |   |   |   |
| Net      earnings                                                                                                                                                           |   | $                       | 2,211   |   |   | $ | 912 |   |
|                                                                                                                                                                        |   |                    |    |   |   |   |   |   |
| EARNINGS      PER SHARE:                                                                                                                                                    |   |                    |    |   |   |   |   |   |
| Basic      and diluted net earnings                                                                                                                                         |   |                    |    |   |   |   |   |   |
| per      common share                                                                                                                                                       |   | $                       | .52     |   |   | $ | .22 |   |
|                                                                                                                                                                        |   |                    |    |   |   |   |   |   |
| DIVIDENDS      PER COMMON SHARE                                                                                                                                             |   | $                       | -       |   |   | $ | - |   |

----

|                                                    |   | March      31, |    |   | December      31, |   |
|---------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                    |   | 2008           |    |   | 2007              |   |
| ASSETS                                                  |   |           |    |   |              |   |
|                                                    |   |           |    |   |              |   |
| Current      assets:                                    |   |           |    |   |              |   |
| Cash      and cash equivalents                          |   | $              | 25,957  |   |              | $      | 23,697 |   |
| Accounts      receivable, net of allowance for doubtful |   |           |    |   |              |   |   |   |
| accounts      of $216 and $192, respectively            |   |           | 303,158 |   |              |   | 261,710 |   |
| Inventories                                             |   |           | 21,507  |   |              |   | 14,776 |   |
| Fair      value contracts                               |   |           | 12,294  |   |              |   | 5,388 |   |
| Income      tax receivable                              |   |           | 2,153   |   |              |   | 2,554 |   |
| Prepayments                                             |   |           | 5,985   |   |              |   | 3,768 |   |
|                                                    |   |           |    |   |              |   |   |   |
| Total      current assets                               |   |           | 371,054 |   |              |   | 311,893 |   |
|                                                    |   |           |    |   |              |   |   |   |
| Property      and equipment                             |   |           | 116,750 |   |              |   | 110,526 |   |
| Less      – accumulated depreciation,             |   |           |    |   |              |   |   |   |
| depletion      and amortization                         |   |           | (73,578 | )      |              |   | (70,828 | ) |
|                                                    |   |           | 43,172  |   |              |   | 39,698 |   |
| Other      assets:                                      |   |           |    |   |              |   |   |   |
| Fair      value contracts                               |   |           | 2,631   |   |              |   | 1,563 |   |
| Cash      deposits and other                            |   |           | 3,988   |   |              |   | 3,921 |   |
|                                                    |   | $              | 420,845 |   |              | $      | 357,075 |   |
|                                                    |   |           |    |   |              |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY         |   |           |    |   |              |   |   |   |
|                                                    |   |           |    |   |              |   |   |   |
| Current      liabilities:                               |   |           |    |   |              |   |   |   |
| Accounts      payable                                   |   | $              | 305,474 |   |              | $      | 252,310 |   |
| Accounts      payable – related party             |   |           | 185     |   |              |   | 84 |   |
| Fair      value contracts                               |   |           | 11,148  |   |              |   | 4,116 |   |
| Accrued      and other liabilities                      |   |           | 4,078   |   |              |   | 3,707 |   |
| Current      deferred income taxes                      |   |           | 1,104   |   |              |   | 1,104 |   |
| Total      current liabilities                          |   |           | 321,989 |   |              |   | 261,321 |   |
|                                                    |   |           |    |   |              |   |   |   |
| Other      liabilities:                                 |   |           |    |   |              |   |   |   |
| Asset      retirement obligations                       |   |           | 1,182   |   |              |   | 1,153 |   |
| Deferred      income taxes and other                    |   |           | 3,700   |   |              |   | 4,063 |   |
| Fair      value contracts                               |   |           | 2,321   |   |              |   | 1,096 |   |
|                                                    |   |           | 329,192 |   |              |   | 267,633 |   |
| Commitments      and contingencies (Note 5)             |   |           |    |   |              |   |   |   |
|                                                    |   |           |    |   |              |   |   |   |
| Shareholders’      equity:                        |   |           |    |   |              |   |   |   |
| Preferred      stock - $1.00 par value, 960,000 shares  |   |           |    |   |              |   |   |   |
| authorized,      none outstanding                       |   |           | -       |   |              |   | - |   |
| Common      stock - $.10 par value, 7,500,000 shares    |   |           |    |   |              |   |   |   |
| authorized,      4,217,596 shares outstanding           |   |           | 422     |   |              |   | 422 |   |
| Contributed      capital                                |   |           | 11,693  |   |              |   | 11,693 |   |
| Retained      earnings                                  |   |           | 79,538  |   |              |   | 77,327 |   |
| Total      shareholders’ equity                   |   |           | 91,653  |   |              |   | 89,442 |   |
|                                                    |   | $              | 420,845 |   |              | $      | 357,075 |   |

----

|                                                   |   | Three      Months Ended |    |
|--------------------------------------------------------|--------|-------------------------|---------|
|                                                   |   | March      31,          |    |
|                                                   |   | 2008                    |    |   | 2007 |   |
| CASH      PROVIDED BY OPERATIONS:                      |   |                    |    |   |   |   |
| Net      earnings                                      |   | $                       | 2,211   |   |   | $ | 912 |   |
| Adjustments      to reconcile net earnings to net cash |   |                    |    |   |   |   |   |   |
| provided      by operating activities -                |   |                    |    |   |   |   |   |   |
| Depreciation,      depletion and amortization          |   |                    | 3,038   |   |   |   | 2,491 |   |
| Gains      on property sales                           |   |                    | (22     | ) |   |   | - |   |
| Dry      hole costs incurred                           |   |                    | 90      |   |   |   | 1,051 |   |
| Impairment      of oil and gas properties              |   |                    | 197     |   |   |   | 219 |   |
| Other,      net                                        |   |                    | 10      |   |   |   | (18 | ) |
| Decrease      (increase) in accounts receivable        |   |                    | (41,448 | ) |   |   | 3,230 |   |
| Decrease      (increase) in inventories                |   |                    | (6,731  | ) |   |   | (1,337 | ) |
| Fair      value contracts                              |   |                    | 283     |   |   |   | (249 | ) |
| Decrease      (increase) in tax receivable             |   |                    | 401     |   |   |   | (754 | ) |
| Decrease      (increase) in prepayments                |   |                    | (2,217  | ) |   |   | (3,601 | ) |
| Increase      (decrease) in accounts payable           |   |                    | 53,351  |   |   |   | 7,594 |   |
| Increase      (decrease) in accrued liabilities        |   |                    | 371     |   |   |   | (4,466 | ) |
| Deferred      income taxes                             |   |                    | (358    | ) |   |   | 473 |   |
|                                                   |   |                    |    |   |   |   |   |   |
| Net      cash provided by operating activities         |   |                    | 9,176   |   |   |   | 5,545 |   |
|                                                   |   |                    |    |   |   |   |   |   |
| INVESTING      ACTIVITIES:                             |   |                    |    |   |   |   |   |   |
| Property      and equipment additions                  |   |                    | (6,885  | ) |   |   | (4,520 | ) |
| Insurance      and tax deposits                        |   |                    | (53     | ) |   |   | (386 | ) |
| Proceeds      from property sales                      |   |                    | 22      |   |   |   | - |   |
| Redemption      of short-term investments              |   |                    | 10,000  |   |   |   | - |   |
| Investment      in short-term investments              |   |                    | (10,000 | ) |   |   | - |   |
|                                                   |   |                    |    |   |   |   |   |   |
| Net      cash (used in) investing activities           |   |                    | (6,916  | ) |   |   | (4,906 | ) |
|                                                   |   |                    |    |   |   |   |   |   |
| Increase      in cash and cash equivalents             |   |                    | 2,260   |   |   |   | 639 |   |
|                                                   |   |                    |    |   |   |   |   |   |
| Cash      at beginning of period                       |   |                    | 23,697  |   |   |   | 20,668 |   |
|                                                   |   |                    |    |   |   |   |   |   |
| Cash      at end of period                             |   | $                       | 25,957  |   |   | $ | 21,307 |   |
|                                                   |   |                    |    |   |   |   |   |   |
| Supplemental      disclosure of cash flow information: |   |                    |    |   |   |   |   |   |
|                                                   |   |                    |    |   |   |   |   |   |
| Interest      paid during the period                   |   | $                       | 4       |   |   | $ | 32 |   |
|                                                   |   |                    |    |   |   |   |   |   |
| Income      taxes paid during the period               |   | $                       | 5       |   |   | $ | 535 |   |

----

----

|                    |   | March      31, |   |   | December      31, |   |
|-------------------------|--------|----------------|--------|--------|-------------------|--------|
|                    |   | 2008           |   |   | 2007              |   |
|                    |   |           |   |   |              |   |
| Crude      oil          |   | $              | 19,467 |   |              | $      | 12,437 |   |
| Petroleum      products |   |           | 2,040  |   |              |   | 2,339 |   |
|                    |   |           |   |   |              |   |   |   |
|                    |   | $              | 21,507 |   |              | $      | 14,776 |   |

----

----

|   | Level      1 – quoted prices in active markets for identical assets or liabilities      that may be accessed at the measurement date.  Active markets      are those in which transactions for the asset or liability occur in      sufficient frequency and volume to provide pricing information on an      ongoing basis. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      2 – (a) quoted prices for similar assets or liabilities in active markets,      (b) quoted prices for identical assets or liabilities but in markets that      are not actively traded or in which little information is released to the      public, (c) observable inputs other than quoted prices and (d) inputs      derived from observable marketdata. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      3 – Unobservable market data inputs for assets or    liabilities. |
|--------|------------------------------------------------------------------------------------|

----

|                               |   | Market      Data Inputs |   |   |         |   |
|------------------------------------|--------|-------------------------|--------|--------|--------------|--------|
|                               |   | Level      1            |   |   | Level      2 |   |   | Level      3 |   |   |   |   |
|                               |   | Quoted      Prices      |   |   | Observable   |   |   | Unobservable |   |   | Total |   |
| Derivatives                        |   |                    |   |   |         |   |   |   |   |   |   |   |
| -      Current assets              |   | $                       | 262    |   |         | $      | 12,032 |   |   | $ | - |   |   | $ | 12,294 |   |
| -  Long-term      assets |   |                    | 32     |   |         |   | 2,599 |   |   |   | - |   |   |   | 2,631 |   |
| -      Current liabilities         |   |                    | -      |   |         |   | (11,148 | ) |   |   | - |   |   |   | (11,148 | ) |
| -      Long-term liabilities       |   |                    | -      |   |         |   | (2,321 | ) |   |   | - |   |   |   | (2,321 | ) |
| Net      Value                     |   | $                       | 294    |   |         | $      | 1,162 |   |   | $ | - |   |   | $ | 1,456 |   |

|                         |   | 2008   |   |   | 2007   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|
|                         |   |   |   |   |   |   |
| Balance      on January 1,   |   | $      | 1,153  |   |   | $      | 1,152 |   |
| -Liabilities      incurred   |   |   | 5      |   |   |   | 13 |   |
| -Accretion      of discount  |   |   | 42     |   |   |   | 50 |   |
| -Liabilities      settled    |   |   | (18    | )      |   |   | - |   |
| -Revisions      to estimates |   |   | -      |   |   |   | - |   |
| Balance      on March 31,    |   | $      | 1,182  |   |   | $      | 1,215 |   |

----

|                            |   |     |    |   | Segment         |   |   | Depreciation       |   |   | Property      and |   |
|---------------------------------|--------|----------|---------|--------|-----------------|--------|--------|--------------------|--------|--------|-------------------|--------|
|                            |   |     |    |   | Operating       |   |   | Depletion      and |   |   | Equipment         |   |
|                            |   | Revenues |    |   | Earnings (Loss) |   |   | Amortization       |   |   | Additions         |   |
| For      the three months ended |   |     |    |   |            |   |   |               |   |   |              |   |
| March      31, 2008             |   |     |    |   |            |   |   |               |   |   |              |   |
| Marketing                       |   |     |    |   |            |   |   |               |   |   |              |   |
| -      Crude Oil                |   | $        | 895,412 |   |            | $      | 4,285  |               |   | $      | 329               |   |   | $ | 4,369 |   |
| -      Natural gas              |   |     | 2,860   |   |            |   | 532    |               |   |   | 40                |   |   |   | - |   |
| -      Refined Products         |   |     | 47,365  |   |            |   | (615   | )                  |   |   | 147               |   |   |   | 61 |   |
| Marketing      Total            |   |     | 945,637 |   |            |   | 4,202  |               |   |   | 516               |   |   |   | 4,430 |   |
| Transportation                  |   |     | 16,404  |   |            |   | 760    |               |   |   | 957               |   |   |   | 350 |   |
| Oil      and gas                |   |     | 3,947   |   |            |   | 956    |               |   |   | 1,565             |   |   |   | 2,105 |   |
|                            |   |     | 965,988 |   |            |   | 5,918  |               |   | $      | 3,038             |   |   | $ | 6,885 |   |
| March      31, 2007             |   |     |    |   |            |   |   |               |   |   |              |   |   |   |   |   |
| Marketing                       |   |     |    |   |            |   |   |               |   |   |              |   |   |   |   |   |
| -      Crude oil                |   | $        | 430,436 |   |            | $      | 1,784  |               |   | $      | 147               |   |   | $ | 228 |   |
| -      Natural gas              |   |     | 3,436   |   |            |   | 1,294  |               |   |   | 15                |   |   |   | 35 |   |
| -      Refined products         |   |     | 35,269  |   |            |   | 145    |               |   |   | 107               |   |   |   | 162 |   |
| Marketing      Total            |   |     | 469,141 |   |            |   | 3,223  |               |   |   | 269               |   |   |   | 425 |   |
| Transportation                  |   |     | 13,802  |   |            |   | 726    |               |   |   | 1,167             |   |   |   | 38 |   |
| Oil      and gas                |   |     | 3,423   |   |            |   | (520   | )                  |   |   | 1,055             |   |   |   | 4,057 |   |
|                            |   | $        | 486,366 |   |            | $      | 3,429  |               |   | $      | 2,491             |   |   | $ | 4,520 |   |

----

|                    |   | March      31, |    |   | December      31, |   |
|-------------------------|--------|----------------|---------|--------|-------------------|--------|
|                    |   | 2008           |    |   | 2007              |   |
| Marketing               |   |           |    |   |              |   |
| -      Crude oil        |   | $              | 227,442 |   |              | $      | 186,163 |   |
| -      Natural gas      |   |           | 96,778  |   |              |   | 74,585 |   |
| -      Refined products |   |           | 18,480  |   |              |   | 21,844 |   |
| Marketing      Total    |   |           | 342,700 |   |              |   | 282,592 |   |
| Transportation          |   |           | 19,488  |   |              |   | 18,282 |   |
| Oil      and gas        |   |           | 25,777  |   |              |   | 25,267 |   |
| Other                   |   |           | 32,880  |   |              |   | 30,934 |   |
|                    |   | $              | 420,845 |   |              | $      | 357,075 |   |

|                              |   | Three      months ended |   |
|-----------------------------------|--------|-------------------------|--------|
|                              |   | March      31,          |   |
|                              |   | 2008                    |   |   | 2007 |   |
| Segment      operating earnings   |   | $                       | 5,918  |   |   | $ | 3,429 |   |
| -      General and administrative |   |                    | (2,917 | ) |   |   | (2,602 | ) |
| Operating      earnings           |   |                    | 3,001  |   |   |   | 827 |   |
| -      Interest income            |   |                    | 355    |   |   |   | 367 |   |
| -      Interest expense           |   |                    | (4     | ) |   |   | (31 | ) |
| Earnings      before income tax   |   | $                       | 3,352  |   |   | $ | 1,163 |   |

----

----

|   | - | Marketing |
|--------|---|-----------|

|                             |   |     |    |   | Segment   |   |   | Depreciation       |   |
|----------------------------------|--------|----------|---------|--------|-----------|--------|--------|--------------------|--------|
|                             |   |     |    |   | Operating |   |   | Depletion      and |   |
|                             |   | Revenues |    |   | Earnings  |   |   | Amortization       |   |
| Period      ended March 31, 2008 |   |     |    |   |      |   |   |               |   |
|                             |   |     |    |   |      |   |   |               |   |
| -      Crude Oil                 |   | $        | 895,412 |   |      | $      | 4,285  |               |   | $ | 329 |   |
| -      Natural gas               |   |     | 2,860   |   |      |   | 532    |               |   |   | 40 |   |
| -      Refined Products          |   |     | 47,365  |   |      |   | (615   | )                  |   |   | 147 |   |
|  Total                      |   | $        | 945,637 |   |      | $      | 4,202  |               |   | $ | 516 |   |
|                             |   |     |    |   |      |   |   |               |   |   |   |   |
| Period      ended March 31, 2007 |   |     |    |   |      |   |   |               |   |   |   |   |
|                             |   |     |    |   |      |   |   |               |   |   |   |   |
| -      Crude oil                 |   | $        | 430,436 |   |      | $      | 1,784  |               |   | $ | 147 |   |
| -      Natural gas               |   |     | 3,436   |   |      |   | 1,294  |               |   |   | 15 |   |
| -      Refined products          |   |     | 35,269  |   |      |   | 145    |               |   |   | 107 |   |
|  Total                      |   | $        | 469,141 |   |      | $      | 3,223  |               |   | $ | 269 |   |

|                                                  |   | Three      Months Ended |    |
|-------------------------------------------------------|--------|-------------------------|---------|
|                                                  |   | March      31,          |    |
|                                                  |   | 2008                    |    |   | 2007 |   |
|                                                  |   |                    |    |   |   |   |
| Field      Level Purchase Volumes – Per day (1) |   |                    |    |   |   |   |
| Crude      oil – barrels                        |   |                    | 63,965  |   |   |   | 58,145 |   |
| Natural      gas – mmbtu’s                |   |                    | 459,513 |   |   |   | 455,200 |   |
|                                                  |   |                    |    |   |   |   |   |   |
| Average      Purchase Price                           |   |                    |    |   |   |   |   |   |
| Crude      Oil – per barrel                     |   | $                       | 98.85   |   |   | $ | 54.43 |   |
| Natural      Gas – per mmbtu                    |   | $                       | 8.27    |   |   | $ | 6.89 |   |

----

|                    |   | Three      Months Ended |   |   |     |   |
|-------------------------|--------|-------------------------|--------|--------|----------|--------|
|                    |   | March      31,          |   |   | Increase |   |
|                    |   | 2008                    |   |   | 2007     |   |   | (Decrease) |   |
|                    |   |                    |   |   |     |   |   |   |   |
| Revenues                |   | $                       | 16,404 |   |     | $      | 13,802 |   |   |   | 18.8 | % |
|                    |   |                    |   |   |     |   |   |   |   |   |   |   |
| Operating      earnings |   | $                       | 760    |   |     | $      | 726 |   |   |   | 4.7 | % |
|                    |   |                    |   |   |     |   |   |   |   |   |   |   |
| Depreciation            |   | $                       | 957    |   |     | $      | 1,167 |   |   |   | (17.9 | )% |

----

|                            |   | Three      Months Ended |   |   |   |   |
|---------------------------------|--------|-------------------------|--------|--------|--------|--------|
|                            |   | March      31,          |   |   |   |   |
|                            |   | 2008                    |   |   | 2007   |   |   | Increase |   |
| Revenues                        |   | $                       | 3,947  |   |   | $      | 3,423 |   |   |   | 15.3 | % |
|                            |   |                    |   |   |   |   |   |   |   |   |   |   |
| Operating      earnings (loss)  |   | $                       | 956    |   |   | $      | (520 | ) |   |   | 283.8 | % |
|                            |   |                    |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and depletion |   | $                       | 1,565  |   |   | $      | 1,055 |   |   |   | 48.3 | % |

|                          |   | Three      Months Ended |    |
|-------------------------------|--------|-------------------------|---------|
|                          |   | March      31,          |    |
|                          |   | 2008                    |    |   | 2007 |   |
| Crude      Oil                |   |                    |    |   |   |   |
| Volume      – barrels   |   |                    | 11,967  |   |   |   | 17,200 |   |
| Average      price per barrel |   | $                       | 100.63  |   |   | $ | 56.73 |   |
|                          |   |                    |    |   |   |   |   |   |
| Natural      gas              |   |                    |    |   |   |   |   |   |
| Volume      – mcf       |   |                    | 287,162 |   |   |   | 335,000 |   |
| Average      price per mcf    |   | $                       | 9.55    |   |   | $ | 7.30 |   |

|                        |   | Three      Months Ended |   |
|-----------------------------|--------|-------------------------|--------|
|                        |   | March      31,          |   |
|                        |   | 2008                    |   |   | 2007 |   |
| Dry      hole expense       |   | $                       | 90     |   |   | $ | 1,051 |   |
| Prospect      impairments   |   |                    | 197    |   |   |   | 219 |   |
| Seismic      and geological |   |                    | 173    |   |   |   | 506 |   |
|                        |   |                    |   |   |   |   |   |   |
| Total                       |   | $                       | 460    |   |   | $ | 1,776 |   |

----

|                                                             |   | Three      Months Ended |   |
|------------------------------------------------------------------|--------|-------------------------|--------|
|                                                             |   | March      31,          |   |
|                                                             |   | 2008                    |   |   | 2007 |   |
| Net      earnings                                                |   | $                       | 2,211  |   |   | $ | 912 |   |
|          Depreciation, depletion and amortization |   |                    | 3,038  |   |   |   | 2,491 |   |
| Property      and equipment additions                            |   |                    | (6,885 | ) |   |   | (4,520 | ) |
|                                                             |   |                    |   |   |   |   |   |   |
| Cash      provided by other uses                                 |   | $                       | (1,636 | ) |   | $ | (1,117 | ) |

----

----

|   | - | Fair Value      Accounting |
|--------|---|----------------------------|

| 1.   | Gross      margins, derived from certain aspects of the Company’s ongoing business,      are front-ended into the period in which contracts are      executed.  Meanwhile, personnel and other costs associated with      servicing accounts as well as substantially all risks associated with the      execution of contracts are expensed as incurred during the period of      physical product flow and titlepassage. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Mark-to-market      earnings are calculated based on stated contract volumes. A significant      risk associated with the Company’s business is the conversion of stated      contract or planned volumes into actual physical commodity movement      volumes without a loss of margin.  Again the planned profit from      such commodity contracts is bunched and front-ended into one period while      the risk of loss associated with the difference between actual versus      planned production or usage volumes falls in a subsequent      period. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Cash      flows, by their nature, match physical movements and passage of title.      Mark-to-market accounting, on the other hand, creates a divergence between      reported earnings and cash flows.  Management believes this      complicates and confuses the picture of stated financial conditions and      liquidity. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | - | Interest      Rate Risk |
|--------|---|-------------------------|

|   | - | Commodity      Price Risk |
|--------|---|---------------------------|

----

----

|   | Item      1A. - There have been no material changes in the Company’s risk factors      from those disclosed in the 2007 Form10-K. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | Item      2. - None |
|--------|---------------------|

| 31.1   | Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002 |
|--------|--------------------------------------------------------------------------------------------------------------|
|   |                                                                                                         |
| 31.2   | Certification      of Chief Financial officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002 |
|   |                                                                                                         |
| 32.1   | Certification      of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley      of 2002     |
|   |                                                                                                         |
| 32.2   | Certification      of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002 |
|   |                                                                                                         |

----

|                               | ADAMS      RESOURCES & ENERGY, INC       |
|------------------------------------|----------------------------------------------|
|                               | (Registrant)                                 |
|                               |                                         |
|                               |                                         |
|                               |                                         |
| Date:  May      13, 2008 | By  /s/K. S. Adams, Jr.            |
|                               | K.      S. Adams, Jr.                        |
|                               | Chief      Executive Officer                 |
|                               |                                         |
|                               |                                         |
|                               | By      /s/Frank T.Webster                   |
|                               | Frank      T. Webster                        |
|                               | President      & Chief Operating Officer |
|                               |                                         |
|                               |                                         |
|                               | By  /s/Richard B. Abshire          |
|                               | Richard      B. Abshire                      |
|                               | Chief      Financial Officer                 |

----

| Exhibit |                                                                                                       |
|---------|------------------------------------------------------------------------------------------------------------|
| Number  | Description                                                                                                |
|    |                                                                                                       |
| 31.1    | Certificate      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002 |
|    |                                                                                                       |
| 31.2    | Certificate      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002 |
|    |                                                                                                       |
| 32.1    | Certificate      of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002 |
|    |                                                                                                       |
| 32.2    | Certificate      of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002 |

----