UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C.  20549


                              Form 10-Q



[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities 
     Exchange Act of 1934 
     For the period ended June 30, 1997
                                 or
                                  
[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities 
     Exchange Act of 1934 
                                  
                                  
                                  
                   Commission File Number 1-12396
                                  
                                  
                          THE BEARD COMPANY
       (Exact name of registrant as specified in its charter)




      Oklahoma                                          73-0970298
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                        Identification No.)


                         Enterprise Plaza, Suite 320
                          5600 North May Avenue
                          Oklahoma City, Oklahoma                  73112
                       (Address of principal executive offices)    (Zip Code)
                                  


Registrant's telephone number, including area code:  (405) 842-2333

     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 [X]    No [  ]

     Indicate the number of shares outstanding of each of the registrant's 
classes of common stock as of June 30, 1997.

              Common Stock $.001 par value - 2,799,074
<PAGE>
                                  
                            THE BEARD COMPANY
                                  
                                INDEX


PART I. FINANCIAL INFORMATION 

Item 1.  Financial Statements

  Balance Sheets - June 30, 1997 (Unaudited) and
    December 31, 1996

  Statements of Operations - Three Months and Six Months
    ended June 30, 1997 and 1996 (Unaudited)

  Statements of Shareholders' Equity, Year ended
    December 31, 1996 and Six Months ended
    June 30, 1997 (Unaudited)

  Statements of Cash Flows - Six Months ended
    June 30, 1997 and 1996 (Unaudited)

  Notes to Financial Statements (Unaudited)

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

PART II.  OTHER INFORMATION

Item 2.  Changes in Securities

Item 6.  Exhibits and Reports on Form 8-K

Signatures
<PAGE>
                  THE BEARD COMPANY AND SUBSIDIARIES
                                  
                        Financial Statements
<PAGE>
                                  
                                  
                                  
     June 30, 1997 (Unaudited) and December 31, 1996 and for the  
  Three Months and Six Months Ended June 30, 1997, and 1996 (Unaudited)
                                  
                                  
                               PART I                                  
                        FINANCIAL INFORMATION
                                  

ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
                           THE BEARD COMPANY AND SUBSIDIARIES
                                     Balance Sheets
                     June 30, 1997 (Unaudited) and December 31, 1996
<CAPTION>
                                                                     June 30,            December 31,
    ASSETS                                                             1997                1996      
                                                                -----------------      ---------------
<S>                                                                 <C>                <C>
Current assets:
--------------                                                                             
          Cash and cash equivalents                                  $    52,000        $   375,000
          Accounts receivable, less allowance for doubtful
          receivables of $57,000 in 1997 and $71,000 in 1996           2,803,000          2,405,000
          Inventories                                                    621,000          2,003,000
          Prepaid expense                                                337,000            442,000
          Other assets                                                   140,000             73,000
                                                                     -----------       ------------
                       Total current assets                            3,953,000          5.298,000
                                                                     -----------       ------------
Investments and other assets                                           1,675,000          1,710,000

Property, plant and equipment, at cost                                17,971,000         16,793,000
          Less accumulated depreciation, depletion and amortization    8,746,000          8,094,000
                                                                     -----------       ------------
          Net property, plant and equipment                            9,225,000          8,699,000
                                                                     -----------       ------------

Intangible assets, at cost                                             4,409,000          4,305,000
          Less accumulated amortization                                3,606,000          3,539,000
                                                                     -----------       ------------                     
              Net intangible assets                                      803,000            766,000
                                                                     -----------       ------------
                                                                     $15,656,000       $ 16,473,000
                                                                     ===========       ============

                            LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
-------------------
          Trade accounts payable                                     $ 1,671,000       $  1,395,000                 
          Accrued expense and other liabilities                          451,000            609.000
          Short-term debt                                                   -               639,000
          Current maturities of long-term debt                           921,000            910,000
                                                                     -----------       ------------
               Total current liabilities                               3,043,000          3,553,000
                                                                     -----------       ------------

Long-term debt less current maturities                                 3,037,000          2,911,000

Minority interest in consolidated subsidiaries                           123,000            153,000

Redeemable preferred stock of $100 stated value;  5,000,000 shares
           authorized; 90,156 shares issued and outstanding (note 4)   1,200,000          1,200,000

Common shareholders'equity:
          Common stock of $.001 par value per share; 10,000,000 shares
          authorized; 2,799,074 shares issued and
          outstanding in 1997 and 1996                                     3,000              3,000
          Capital in excess of par value                              41,629,000         41,629,000
          Accumulated deficit                                        (33,379,000)       (32,976,000)
                                                                     ------------       ------------
                Total common shareholders' equity                      8,253,000          8,656,000
                                                                     ------------       ------------
Commitments and contingencies (note 8)
                                                                     $15,656,000        $ 16,473,000
                                                                     ===========        ============
</TABLE>
                      See accompanying notes to financial statements.
<PAGE>

<TABLE>
                  THE BEARD COMPANY AND SUBSIDIARIES
                        Statements of Operations
                              (Unaudited)
<CAPTION>
                                                 For Three Months Ended             For Six Months Ended
                                               -------------------------          ------------------------
                                                 June 30,       June 30,            June 30,      June 30,
                                                   1997          1996                 1997          1996
                                               -------------------------          ------------------------
<S>                                            <C>            <C>                 <C>           <C>

Revenues:                                 
  Carbon dioxide                               $ 3,891,000    $ 3,553,000         $ 6,809,000   $ 6,332,000
  Environmental/resource recovery                1,252,000        708,000           2,421,000     1,058,000
  Other                                             92,000         13,000             127,000        30,000    
                                               -----------    -----------         -----------   ----------- 
                                                 5,235,000      4,274,000           9,357,000     7,420,000 
Expenses:
  Carbon dioxide                                 2,501,000      2,419,000           4,554,000     4,483,000 
  Environmental/resource recovery                1,139,000        603,000           2,134,000     1,130,000 
  Selling, general and administrative            1,181,000      1,087,000           2,212,000     2,034,000 
  Depreciation, depletion & amortization           373,000        320,000             734,000       622,000
  Other                                              9,000          8,000              16,000        22,000
                                              ------------    -----------         -----------     ---------
                                                 5,203,000      4,437,000           9,650,000     8,291,000 

Operating profit (loss):
  Carbon dioxide                                   435,000        246,000             514,000       160,000   
  Environmental/resource recovery                 (165,000)      (139,000)           (340,000)     (492,000)
  Other                                           (238,000)      (270,000)           (467,000)     (539,000)
                                              -------------   ------------        ------------    ----------
                                                    32,000       (163,000)           (293,000)     (871,000)
Other income (expense):
  Interest income                                    4,000          4,000               7,000         6,000 
  Interest expense                                 (99,000)       (52,000)           (187,000)      (98,000)        
  Gain on sale of assets                              -            74,000              53,000        86,000
  Gain on take-or-pay contract settlement (note 6)    -              -                   -          939,000  
  Other, including unconsolidated affiliates        89,000         (7,000)             12,000      (103,000) 
  Minority interest in operations of
    consolidated subsidiaries                       20,000         (3,000)             30,000        (3,000)
                                              -------------   ------------        ------------    ----------
Earnings (loss) from continuing operations 
    before income tax                               46,000       (147,000)           (378,000)      (44,000) 

Income taxes (note 7)                              (25,000)          -                (25,000)          -   
                                              -------------   ------------        ------------    ----------
Earnings (loss) from continuing operations          21,000       (147,000)           (403,000)      (44,000)
                                                                                             
  Loss from discontinued real estate 
   operations (note 2)                                -            (8,000)                -         (16,000)
                                              -------------   ------------        ------------    ----------
Net earnings (loss)                           $     21,000    $  (155,000)        $  (403,000)    $ (60,000)
                                              =============   ============        ============    ==========

Net earnings (loss attributable to
   common shareholders                        $     21,000    $  (155,000)        $  (403,000)    $ (60,000)
                                              ============    ============        ============    ==========
Earnings (loss) per common share and common
   equivalent share (primary EPS) (note 5):                                          
   Earnings (loss) from continuing operations $       0.01    $     (0.06)        $     (0.14)        (0.02)
   Loss from discontinued operations                    -              -                   -             - 
   Earnings (loss)                            $       0.01    $     (0.06)        $     (0.14)    $   (0.02)

</TABLE>
                           See accompanying notes to financial statements.
<PAGE>

<TABLE>
                                       THE BEARD COMPANY AND SUBSIDIARIES
                                       Statements of Shareholders' Equity
<CAPTION>
                                                                                                                      TOTAL
                                                                        CAPITAL IN                                   COMMON
                                                     COMMON              EXCESS OF          ACCUMULATED           SHAREHOLDERS'
                                                      STOCK              PAR VALUE            DEFICIT                EQUITY
                                                     ------            -----------          ------------          --------------
<S>                                                  <C>               <C>                  <C>                   <C>
Balance, December 31, 1995                           $3,000            $41,446,000          $(32,661,000)             $8,788,000

  Net loss, year ended December 31, 1996                  -                      -              (315,000)               (315,000)

  Issuance of 68,244 shares of common stock               -                183,000                     -                 183,000
                                                     ------            -----------          ------------          --------------
Balance, December 31, 1996                            3,000             41,629,000           (32,976,000)              8,656,000

  Net loss, six months ended June 30, 1997                -                      -              (403,000)               (403,000)
                                                     ------            -----------          ------------          --------------
Balance, June 30, 1997                               $3,000            $41,629,000          $(33,379,000)             $8,253,000
                                                     ======            ===========          ============          ==============
</TABLE>

                             See accompanying notes to financial statements.
<PAGE>
<TABLE>
                       THE BEARD COMPANY AND SUBSIDIARIES
                            Statements of Cash Flows
                                  (Unaudited)

<CAPTION>
                                                 FOR THE SIX MONTHS ENDED
                                               -----------------------------
                                             JUNE 30, 1997     JUNE 30, 1996
                                             -------------     -------------
<S>                                          <C>               <C>
OPERATING ACTIVITIES:
  Cash received from customers                 $10,493,000        $7,501,000
  Cash paid to suppliers and employees          (9,245,000)       (7,805,000)
  Cash received from settlement of 
    take-or-pay contract                             -               539,000
  Interest received                                  6,000             4,000
  Interest paid                                   (199,000)         (140,000)
                                               -----------        ----------
    Net cash provided by operating activities    1,055,000            99,000
                                               -----------        ----------

INVESTING ACTIVITIES:
  Acquisition of property, plant and equipment    (904,000)         (813,000)
  Proceeds from sale of assets                      58,000           241,000
  Other investments                                 22,000            33,000
                                               -----------        ----------
    Net cash used in investing activities         (824,000)         (539,000)
                                               -----------        ----------

FINANCING ACTIVITIES:
  Proceeds from line of credit and term notes    1,229,000         2,263,000
  Payments on line of credit and term notes     (1,783,000)       (1,778,000)
  Proceeds from issuance of stock                    -                25,000
                                               -----------        ----------
    Net cash provided by (used in) financing
      activities                                  (554,000)          510,000
                                               -----------        ----------

NET INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                     (323,000)           70,000

CASH AND CASH EQUIVALENTS AT BEGINNING OF
  PERIOD                                           375,000           220,000
                                               -----------        ----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD         $52,000          $290,000
                                               ===========        ==========

                                        Continued
</TABLE>

<TABLE>
                       THE BEARD COMPANY AND SUBSIDIARIES
                             Statements of Cash Flows
                                   (Unaudited)                        
<CAPTION>
Reconciliation of Net loss to Net Cash
Provided by Operating Activities

                                               FOR THE SIX MONTHS ENDED
                                          ----------------------------------
                                          June 30, 1997        June 30, 1996
                                          -------------        -------------
<S>                                       <C>                  <C>
Net loss                                  $(403,000)            $(60,000)
Adjustments to reconcile
  net loss to net cash
  provided by (used in)
  operating activities:
    Depreciation, depletion and
      amortization                          734,000              625,000
    Gain on sale of assets                  (53,000)             (86,000)
    Interest and other costs 
      (capitalized) recognized
      on real estate project                478,000              (66,000)
    Provision for impairment of assets       60,000              120,000
    Gain on take-or-pay contract
      settlement                                  -             (400,000)
    Other, including minority interest
      in consolidated subsidiaries          (82,000)             (10,000)
                                         ----------           ----------
      Net cash provided by operations 
        before changes in current 
        assets and liabilities              734,000              123,000
    Increase in accounts receivable,
      prepaids and other current
      assets                               (308,000)             (53,000)
    (Increase) decrease in inventories      932,000             (543,000)
    Increase (decrease) in accounts
      payable, accrued expenses
      and other liabilities                (303,000)             572,000
                                         ----------           ----------
     Net cash provided by operating
       activities                        $1,055,000              $99,000
                                         ==========           ==========
Supplemental Schedule of Noncash
  Investing and Financing Activities

Purchase of property, plant and
  equipment and intangible assets
  through issuance of debt 
  obligations                            $        -          $1,013,000
                                         ==========          ==========
Receipt of property, plant, and
  equipment as part of settlement
  of take-or-pay contract                $        -          $  400,000
                                         ==========          ==========
Sale of inventory for a note 
  receivable                             $   87,000          $        -
                                         ==========          ==========
</TABLE>

               See accompanying notes to financial statements.
<PAGE>

                      THE BEARD COMPANY AND SUBSIDIARIES
                         Notes to Financial Statements

                            June 30, 1997 and 1996
                                  (Unaudited)




(1)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
     BASIS OF PRESENTATION
   The  accompanying  consolidated  financial statements and notes thereto have
   been prepared pursuant to the rules  and  regulations  of the Securities and
   Exchange  Commission.   Accordingly,  certain footnote disclosures  normally
   prepared in accordance with generally accepted  accounting  principles  have
   been  omitted.  The accompanying consolidated financial statements and notes
   thereto  should  be  read  in  conjunction  with  the consolidated financial
   statements and notes thereto included in Beard's 1996  annual report on Form
   10-K.

   The accompanying consolidated financial statements include  the  accounts of
   The Beard Company and its wholly and majority-owned subsidiaries ("Beard  or
   the   Company").    All  significant  intercompany  transactions  have  been
   eliminated.

   The  financial information  included  herein  is  unaudited;  however,  such
   information   reflects   all  adjustments  which  are,  in  the  opinion  of
   management, necessary for  a  fair  statement of the results for the interim
   periods presented.

   The results of operations for the three and six-month periods ended June 30,
   1997, are not necessarily indicative  of  the results to be expected for the
   full year.

   The Company operates within two major industry  segments:   (1)  the  carbon
   dioxide ("CO2") Segment, comprised of (a) the manufacture and distribution 
   of dry ice (solid CO2) and (b) the production of CO2; and (2) the environ-
   mental/resource  recovery  ("E/RR") Segment, consisting  of  environmental
   services and resource recovery activities. The Company's real estate ("R/E")
   Segment,  consisting of real estate construction  and development, was dis-
   continued in January,  1997.  See  Note  2  below.   The Company  also has
   other operations, including a minority-owned investment in a joint venture
   for the extraction, production and sale of crude iodine.

(2)  DISCONTINUED OPERATIONS
   In January 1997, the Company approved a formal plan to dispose of the assets
   of its R/E Segment.  The Company  estimated  that  it  would incur a loss of
   $180,000   from  discontinuing  real  estate  construction  and  development
   activities.   The  loss  was  recorded  in  the  fourth  quarter of 1996 and
   represented  the  difference  in the estimated amounts to be  received  from
   disposing of the real estate construction  and  development  assets  and the
   asset's recorded values as of December 31, 1996.

   Results of operations of the R/E Segment for the three and six months  ended
   June  30,  1996,  have  been  restated  as  discontinued  operations  in the
   accompanying   statements   of   operations.    Operating   results  of  the
   discontinued operations through the date of sale of all remaining assets are
   not expected to be significant.

   During the six months ended June 30, 1997, the Company disposed  of  certain
   real  estate  construction  and  development  assets  for  $1,534,000  which
   approximated the Company's estimated disposition values of those assets.

   As  of  June  30,  1997  the  significant remaining asset of the R/E Segment
   consisted of one speculative home which the Company expects to dispose of by
   December 31, 1997 at its June 30, 1997 recorded value.

(3)  ACQUISITION
   On May 21, 1996, the Company acquired 80% of the outstanding common stock of
   Horizontal Drilling Technologies, Inc. ("HDT") for  $482,000.   HDT utilizes
   trenchless  technology and specializes in directional drilling for  utility,
   underground cable  and  environmental  remediation  projects.   The purchase
   price  consisted of a non-interest bearing contingent payment obligation,  a
   non-interest  bearing $150,000 note, convertible at the option of the holder
   into common stock  of  the Company, and 20% of the Company's ownership in an
   existing subsidiary involved  in environmental/resource recovery operations.
   The contingent payment obligation is payable only from 80% of specified cash
   flows of HDT and the existing environmental/resource recovery subsidiary and
   was  recorded  based upon its estimated  present  value.   The  non-interest
   bearing note was  also  recorded at its present value and was converted into
   the Company's common stock subsequent to the acquisition.  The fair value of
   the net identifiable assets  of HDT approximated $143,000 on the acquisition
   date.  The excess of the purchase  price  over  the  fair  value  of the net
   identifiable  assets  acquired  has  been  recorded as goodwill and is being
   amortized on a straight-line basis over ten years.  The acquisition has been
   accounted  for  by  the  purchase  method and accordingly,  the  results  of
   operations of HDT prior to May 21, 1996,  are  not included in the Company's
   consolidated financial statements.

(4)  REDEEMABLE PREFERRED STOCK
   The Company's preferred stock is mandatorily redeemable through December 31,
   2002, from one-third of Beard's "consolidated net  income"  as defined.  The
   Company's operations through June 30, 1997, were not sufficient to begin the
   sharing  of the consolidated net income.  Accordingly, one-third  of  future
   "consolidated  net  income"  will accrete directly to preferred stockholders
   and reduce earnings per common  share.   To  the  extent  that the preferred
   stock  is  not redeemed by December 31, 2002, the shares of preferred  stock
   can be converted into shares of the Company's common stock.

(5)  EARNINGS (LOSS) PER SHARE
   Earnings (loss)  per  common  share  for  the respective three and six-month
   periods  ended June 30, 1997 and 1996 have been  computed  by  dividing  the
   earnings (loss)  by the weighted average number of common shares outstanding
   during the respective periods.  Common share equivalents and any potentially
   dilutive securities outstanding were not considered as the effects would not
   have been dilutive.

   The table below contains  the  components  of  the  common  share and common
   equivalent  share  amounts  used in the calculation of earnings  (loss)  per
   share in the Company's statements of operations:

<TABLE>
<CAPTION>
                                  For the Three Months Ended             For the Six Months Ended
                                  -----------------------------          --------------------------
                                   June 30,            June 30,          June 30,          June 30,
                                     1997               1996               1997                1996
                                  ---------           ---------          ---------         --------
<S>                               <C>                 <C>                <C>              <C>
Primary EPS:
  Weighted average common
    shares outstanding            2,799,074           2,736,141          2,799,074        2,736,141
  Options considered to be
    common stock equivalents              -                   -                  -                -
                                  ---------           ---------          ---------        ---------
                                  2,799,074           2,736,141          2,799,074        2,736,141
                                  =========           =========          =========        =========
</TABLE>

(6)  SETTLEMENT OF TAKE-OR-PAY CONTRACT
   In February 1996, the Company negotiated a  settlement of a take-or-pay con-
   tract under  which  a  customer was obligated to purchase certain volumes of
   liquid  CO2.  As a result of the settlement, the Company  received  $539,000 
   of cash and  assets with an estimated fair value of $400,000 and the Company 
   released the party of its contractual obligation to purchase the  contracted 
   liquid  CO2 volumes.   The  Company  realized  a  gain  of  $939,000 related
   to  this settlement.

(7)  INCOME TAXES
   In accordance with the provisions of the Statement  of  Financial Accounting
   Standards  No.  109,   Accounting  for  Income Taxes ("SFAS No.  109"),  the
   Company's net deferred tax asset is being  carried at zero book value, which
   reflects  the  uncertainties  of  the  Company's   utilization  of  the  net
   deductible timing differences.  There is no provision  for  regular  federal
   income taxes in 1997 or 1996 due to the availability of net operating losses
   and  other carryforwards.  The provision in the statements of operations for
   the three  and  six-month periods ending June 30, 1997 consists of $8,000 in
   state income tax and $17,000 in federal alternative minimum tax.

   At June 30, 1997, the Company estimates that it had the following income tax
   carryforwards available for both income tax and financial reporting purposes
   (in thousands):

<TABLE>
<CAPTION>
                                             Expiration
                                             Date                  Amount
                                             -----------           -------
<S>                                          <C>                 <C>
Federal regular tax operating loss 
  carryforwards                              2001-2010           $  65,788

Investment tax credit carryforward           1997-2000                 679

Tax depletion carryforward                   Indefinite              5,500
                                                                 ---------
                                               Total             $  71,967
                                                                 =========
</TABLE>   

(8)  COMMITMENTS AND CONTINGENCIES
   In the normal course  of  business  various  actions  and  claims  have been
   brought or asserted against the Company.  Management does not consider  them
   to be material to the Company's financial position, liquidity or results  of
   operations.

(9)  LETTER OF INTENT
   In  June  1997,  the Company signed a letter of intent to sell substantially
   all of the assets  of Carbonic Reserves (an 85% owned subsidiary of Beard in
   the CO2 Segment) for cash and  the  assumption  of certain liabilities.  The
   sale  is expected  to close on October 1, 1997 and result  in a gain ranging
   from $10 to  $12  million.  The sale is subject to approval by the Company's
   shareholders  at  the annual meeting scheduled to be held on  September  25,
   1997 and to certain  other  conditions.   If  the  sale  is  consummated  as
   anticipated,  the  Company's  continuing  operations  will  consist  of  its
   environmental  services  and resource recovery activities, and the  CO2 Seg-
   ment's operations will be  presented as  discontinued in the  statements  of
   operations for all periods presented.  The sale is expected to result in the
   redemption  of  approximately  $3.5 million (35,000 shares) of the Company's
   preferred stock.  The other proceeds  from  the sale are expected to be used
   to  pay  down  virtually all of the Company's outstanding  indebtedness  and
   provide working capital to exploit the Company's remaining assets.
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Conditions and 
         Results of Operations 

The following discussion focuses on material changes in the Company's financial 
condition  since  December 31,  1996 and results of operations for the  quarter
ended  June  30,  1997  compared to  the prior year second  quarter and the six 
months ended June 30, 1997 compared to the prior year six months.  Such discus-
sion should be read in conjunction with the Company's financial  statements in-
cluding the related footnotes.

In preparing the discussion and analysis, the Company has presumed readers have 
read  or have access to the discussion and analysis of the prior year's results
of  operations,  liquidity and capital resources as contained in the  Company's 
1996 Form 10-K.

The Company operates within two major industry segments: (1) the carbon dioxide
("CO2")  Segment,  comprised of (a) the manufacture and distribution of dry ice
(solid CO2) and (b) the production of CO2; (2) the  environmental/resource  re-
covery  ("E/RR")  Segment,  consisting of  environmental  services and resource 
recovery  activities.  The  Company also has other operations, including  (i) a
minority-owned investment in a joint  venture for  the  extraction,  production
and sale of crude iodine, and (ii) various assets and investments which the Com-
pany has been liquidating as opportunities have materialized, including the  as-
sets of the Company's former real estate construction  and  development  ("R/E")
Segment, the  operations  of  which were  discontinued  in January,  1997.  See 
Note 2 to the financial statements.
    
Material changes in financial condition - June 30, 1997 as compared with 
December 31, 1996.

The following table reflects some of the changes in the Company's financial con-
dition during the periods indicated:

<TABLE>
<CAPTION>
                               June 30,      December 31,      Increase
                                 1997           1996          (Decrease)
                               --------      ------------     ----------
<S>                            <C>           <C>              <C>
Cash and cash equivalents      $   52,000    $  375,000       $  (323,000)

Working capital                $  910,000    $1,745,000       $  (835,000)

Current ratio                  1.30 to 1     1.49 to 1
</TABLE>
  
The Company's ability to generate  working  capital from operations during the 
first six months of 1997 was adversely  affected  by  seasonality  during  the 
first three months of the year.  The first quarter is normally a poor one  for
the dry ice business, and cold and/or rainy  weather  also  normally  causes a 
slowdown of sales in the environmental services  portion  of the E/RR Segment.  
As  previously  mentioned, the Company has discontinued the  R/E  Segment  and
the sale of  substantially  all of its assets in this segment during the first 
six  months  of  1997  provided  cash  of  $1,305,000  and  working  capital of
$452,000.  The proceeds from the sale were  used to  pay  down  the  short-term 
debt associated with the construction cost of  these  assets.  Despite the sea-
sonal  decline, however, net working capital generated by the  above  sale  and 
by  operations  as  a  result of increased activity in the E/RR Segment for the 
first six months of 1997 amounted to $734,000,  compared  to $123,000 generated
in the first six months of 1996.

In addition to the proceeds from the sale of assets in the R/E Segment, the Com-
pany has been able to satisfy its liquidity needs through its working capital 
and borrowing arrangements.  Future cash flows and availability of credit are
subject to a number of variables, including the price and demand for dry ice, a 
continuing source of economical CO2, continuing private and governmental demand 
for environmental services.  Despite these uncertainties, the Company antici-
pates that its cash flow from operations and continued availability of credit
on a basis similar to that experienced to date will be sufficient to meet its
planned operating costs and capital spending requirements.
  
Capital additions of $1,185,000 were made by the following segments during the 
first six months of 1997, as reflected in the table on the following page:
   
             Carbon dioxide                      $   915,000
             Environmental/resource recovery         266,000
             Other                                     4,000
                                                 -----------
                                                 $ 1,185,000
                                                 ===========

Seller-provided financing and other debt obligations provided $281,000 of the 
funds for such capital investments.

The Company's working capital, the CO2 Segment's line of credit, and a recently 
finalized $500,000 bank line of credit are expected to be sufficient to fund the
Company's current and presently foreseeable capital expenditure requirements,
including the $264,000 projected for the last six months of 1997.

In June 1997, the Company signed a letter of intent to sell substantially all 
of its dry ice assets for cash and the assumption of certain liabilities.  
The sale is subject to approval by the Company's shareholders at its annual 
meeting of stockholders presently scheduled to be held on September 25, 1997.
If consummated, the sale is expected to close on October 1, 1997 and result 
in (i) a gain ranging from  $10 to $12 million, (ii) the redemption of ap-
proximately $3.5 million (35,000 shares) of the Company's preferred stock 
and (iii) the paydown of virtually all of the Company's outstanding indebted-
ness.  If the sale is consummated as anticipated, it will significantly enhance
the Company's working capital and liquidity and improve the Company's common 
shareholders' equity.  See Note 9 to the accompanying financial statements.  

Through the period ending December 31, 2002, the Company's liquidity will be 
reduced to the extent it is required to redeem any of the Beard preferred 
stock pursuant to the mandatory redemption provisions.  See Note 4 to the
accompanying financial statements.

Material changes in results of operations - Quarter ended June 30, 1997 as 
compared with the Quarter ended June 30, 1996.

The income for the quarter ended June 30, 1997 was $21,000, compared to a loss 
of $155,000 for the second quarter of the prior year.  There was a significant 
improvement in the operating margin in the CO2 Segment while a small decline 
in the operating margin in the E/RR Segment was more than offset by a small
improvement in "Other", primarily general and corporate activities.  As a 
result, operating results improved $195,000 from a $163,000 loss in the 
second quarter of 1996 to a profit of $32,000 for the same period in 1997.

Operating results of the Company's two segments are reflected below:

<TABLE>
<CAPTION>
                                         1997           1996
                                         ----           ----
<S>                                    <C>            <C>
Operating profit (loss):
  Carbon dioxide                       $   435,000    $   246,000
  Environmental/resource recovery         (165,000)      (139,000)
                                       -----------    -----------
     Subtotal                              270,000        107,000
  Other                                   (238,000)      (270,000)
                                       -----------    -----------
     Total                             $    32,000    $  (163,000)
                                       ===========    ===========
</TABLE>

The "Other" in the above table reflects primarily general and corporate 
activities, as well as other activities and investments of the Company.

Carbon dioxide

Second quarter 1997 operations reflected an operating gain of $435,000 compared 
to a $246,000 gain for the 1996 second quarter.  The primary component of 
revenues for this segment is dry ice sales which are seasonal with the down-
turn occurring from December through February, while the brisk sales period oc-
curs from June through August and then again in October.  The dry ice component
of this segment generated an operating profit of $330,000 in the second 
quarter of 1997 versus an operating profit of $198,000 in the comparable period
of 1996. 
  
Revenues from this segment totaled $3,891,000 for the second quarter of 1997, a
10% increase over last year's second quarter.  The factors contributing to this
improvement included increases in the volume of dry ice sales, in the sales 
of equipment, and in the Company's allocated share of sales from its working 
interest in a producing CO2 unit.  This improvement in revenues was somewhat 
offset by increases in expenses associated with advertising and sales, in-
surance, and an incentive-sales arrangement for employees.

Environmental/resource recovery

The E/RR Segment generated a larger operating loss in the second quarter of 
1997 as compared with the same period in 1996.  The segment reflected a 77% 
increase in revenues, which resulted primarily from the increased activity
of the environmental services companies, as well as the full quarter impact 
of Horizontal Drilling Technologies, Inc. ("HDT"), resulting from Beard's 
purchase of 80% of HDT's common stock (the "HDT acquisition") in May 1996.  
The increase in revenues created by HDT was offset by a decline in the revenues 
generated by resource recovery activities due to the completion in February 1996
of a contract with U. S. Department of Energy involving activities related to
the Company's patented Mulled Coal technology.  Management has been pursuing 
and will continue to pursue the commercial development of this technology 
during the remainder of 1997.  The costs of pursuing this development, addi-
tional HDT operations resulting from the HDT acquisition, as well as increased 
operating expenses related to the Company's other environmental services 
activities, more than offset the increased revenues and resulted in the 
decline in operating margins.

Other activities

Other operations, consisting mostly of general and corporate activities, gen-
erated a slightly smaller operating loss for the second quarter of 1997 than 
the same period of last year.

Selling, general and administrative expenses

The Company's selling, general and administrative expenses ("SG&A") in the cur-
rent quarter increased to $1,181,000 from $1,087,000 in the 1996 second quarter.
SG&A expenses incurred by the CO2 Segment during the second quarter of 1997, 
which represent 57% of the total SG&A costs, increased by $44,000 over the 
same period last year.  This increase was associated with an increase in 
expenses related to Carbonics' advertising and sales expenses, insurance, 
and an incentive sales arrangement for employees.  SG&A expenses incurred by 
the E/RR Segment during the second quarter of 1997 increased by $79,000 over 
the same period for 1996.  $67,000 of this increase was due to the impact of 
the HDT acquisition.  Other operations incurred approximately $23,000 less in
SG&A for the second quarter of 1997 compared to the same period in 1996.

Depreciation, depletion and amortization expenses

The second quarter of 1997 had an increase in DD&A expense of $53,000, reflect-
ing additions to property, plant and equipment made since June 30, 1996.

Other income and expenses

Other income and expenses netted to a total income of $14,000 for the second 
quarter of 1997, down slightly from the $16,000 in income recorded for such 
items in the same period of 1996.  The decrease was due primarily to a 
$123,000 increase in the earnings of unconsolidated affiliates, offset by a 
decrease in the gain on sale of assets of $74,000, as well as a $47,000 in-
crease in interest expense.

Discontinued operations

As previously noted, the Company discontinued its real estate construction and 
development activities in January of 1997 in order to focus its attention on 
other segments which are considered to have greater potential for growth and
profitability.  As discussed in Note 2 to the Financial Statements, the Com-
pany recognized the estimated loss of disposing of the R/E Segment's assets 
in the fourth quarter of 1996.  In the first quarter of 1997, the Company 
sold all of the R/E Segment's assets, except for two completed speculative 
homes, for $1,196,000.  One of the two homes was sold during the second 
quarter of 1997 for $338,000.  The Company expects to dispose of the remain-
ing speculative home by December 31, 1997.

Material changes in results of operations - Six months ended June 30, 1997 as 
compared with the Six months ended June 30, 1996.

The loss for the six months ended June 30, 1997 was $403,000, compared to a loss
of $60,000 for the first six months of the prior year.  The first half of 1996 
benefited from the February 1996 settlement of a take-or-pay agreement in the
amount of $939,000.  The first half of 1997 benefited from increased revenues  
due to an approximate 11% increase in sales volume of dry ice.  In addition, 
the segment benefited from increased revenue from the sale of CO2 gas from 
the Company's working interests in two producing CO2 gas units in Colorado and 
New Mexico.  The E/RR Segment benefited from an increase in revenues of 
$1,363,000.  These increases, however, were partially offset by increased 
operating expenses of the Company's two operating segments. 

Operating results of the Company's two segments are reflected below:

<TABLE>
<CAPTION>
                                     1997               1996
                                     ----               ----
<S>                                <C>              <C>
Operating profit (loss):
   Carbon dioxide                  $   514,000      $   160,000
   Environmental/resource recovery    (340,000)        (492,000)
                                   -----------      -----------
          Subtotal                     174,000         (332,000)
   Other                              (467,000)        (539,000)
                                   -----------      -----------
          Total                    $  (293,000)     $  (871,000)
                                   ===========      ===========
</TABLE>

The "Other" in the above table reflects primarily general and corporate 
activities, as well as other activities and investments of the Company.

Carbon dioxide

Operations for the first six months of 1997 resulted in an operating profit of 
$514,000 compared to a $160,000 operating profit for the 1996 first half.  The 
primary component of revenues for this segment is dry ice sales which are
seasonal with the downturn occurring from December through February, while 
the brisk sales period occurs from June through August and then again in 
October.  The six months operating results of both 1997 and 1996 reflect 
the normal downturn in the sales cycle at the first of the year.  The dry ice 
component of this segment generated an operating profit of $324,000 in the 
1997 first half versus an operating profit of $58,000 in the comparable 1996 
period. 
  
Revenues from this segment totaled $6,809,000 for the first six months of 1997, 
an 8% increase over the same period last year.  The factors contributing to this
improvement included increases in the volume of dry ice sales and in the 
Company's allocated share of sales from its working interest in a producing CO2 
unit.  This improvement in revenues was somewhat offset by increases in expenses
associated with advertising and sales, insurance, and an incentive-sales ar-
rangement for employees.

Environmental/resource recovery

A significant increase in revenues generated by the E/RR Segment led to an 
improvement in operating margins in the first six months of 1997 as compared 
to the same period in 1996.  This increase in revenues was primarily caused
by an increase in environmental services activity in the first six months of 
the year, as well as the inclusion, for the full six months in 1997, of the 
operations of HDT, acquired on May 21, 1996.  The increase in revenues 
created by HDT was partially offset by the completion in February 1996 of a 
contract involving the resource recovery activities related to the Company's 
patented Mulled Coal technology.  Management intends to pursue the commercial
development of this technology during the remainder of 1997.  Increased revenue
as a result of increases in environmental services activity in the first 
quarter of 1997 as compared to the same period in 1996 coupled with a de-
crease in operating expenses as a percentage of sales have resulted in an 
improvement in the operating margins for this segment for the six months in 
1997 compared to the same period in 1996.

Other activities

Other operations, consisting mostly of general and corporate activities, gen-
erated a slightly smaller operating loss for the first half of 1997 as com-
pared to the same period last year. 

Selling, general and administrative expenses

The Company's selling, general and administrative expenses ("SG&A") in the 
first half of 1997 increased to $2,212,000 from $2,034,000 in the 1996 six 
months.  SG&A expenses incurred by the CO2 Segment during the first half of 
1997, which represent 54% of the total SG&A costs, increased by $12,000 over 
the same period last year. This increase was associated with increases in 
expenses related to advertising and sales, insurance, and an incentive-sales
arrangement for employees.  SG&A of the E/RR Segment increased by $237,000 
during the first six months of 1997 compared to the same period in 1996.  
The effect of the HDT acquisition accounted for $162,000 or 68% of this
increase.  Other members of the segment incurred increases in SG&A as a 
result of increased operating activity.

Depreciation, depletion and amortization expenses

The first half of 1997 had an increase in DD&A expense of $112,000, reflecting 
additions to property, plant and equipment made since June 30, 1996.

Other income and expenses

The other income and expenses for the first six months of 1997 netted to an 
$85,000 loss compared to $827,000 in net income for the same period in 1996.  
As previously mentioned, the Company benefited in the first six months of
1996 from the February 1996 settlement of a take-or-pay agreement in the CO2 
Segment.  This settlement resulted in a gain of $939,000. The first six 
months of 1997 included an increase of $89,000 in interest expense as a 
result of greater borrowings to meet working capital needs, a $33,000 de-
crease in the gain on sale of assets, a $32,000 increase in the minority 
interest in the operations of consolidated subsidiaries and a $129,000 in-
crease in income from unconsolidated affiliates.

Impact of Recently Issued Accounting Standards Not Yet Adopted

In February, 1997, the Financial Accounting Standards Board issued Statement of 
Financial Accounting Standards No. 128, "Earnings Per Share."  SFAS No. 128 is 
effective for financial statements issued for periods ending after December 
15, 1997, and restatement of prior-period earnings per share data is required.  
The new standard will not apply to Beard's financial statements until the fourth
quarter of 1997.  SFAS No. 128 revises the current calculation methods and 
presentation of primary and fully diluted earnings per share.  Beard has re-
viewed the requirements of SFAS No. 128 and has concluded that they will not 
have a material effect on the calculation of Beard's historical earnings 
(loss) per share data.
<PAGE>
 

PART II.            OTHER INFORMATION.

Item 2.  Changes in Securities.

The Company's preferred stock is mandatorily redeemable through December 31, 
2002 from one-third of Beard's "consolidated net income" as defined in the 
instrument governing the rights of the preferred stockholders.  Accordingly,
one-third of future "consolidated net income" will accrete directly to pre-
ferred stockholders and reduce earnings per common share.  As a result of 
these redemption requirements, the payment of any dividends to the common 
stockholders in the near future is very unlikely.  See Note 4 to the ac-
companying financial statements.

Item 6.  Exhibits and Reports on Form 8-K:

(a)  The following exhibits are filed with this Form 10-Q and are identified 
by the numbers indicated:

   27     Financial Data Schedules. 

(b)  No reports on Form 8-K were filed during the period covered by this report.
  
<PAGE>
     
                           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 under-
signed, thereunto duly authorized. 

                               (Registrant)   THE BEARD COMPANY

August 8, 1997                  HERB MEE, JR.
                                Herb Mee, Jr., President and
                                Chief Financial Officer

August 8, 1997                  JACK A. MARTINE
                                Jack A. Martine, Controller and
                                Chief Accounting Officer