|    X__ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------------------|--------------------------------------------------------------------------------------|

|   | For the Fiscal Year ended December 31, 2010 |
|--------|---------------------------------------------|

|  ____ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|------------|------------------------------------------------------------------------------------------|

|   | Commission File Number 1-7908 |
|--------|-------------------------------|

| Delaware                 | 74-1753147                           | 4400 Post Oak Pkwy Ste 2700              | 77027      |
|--------------------------|--------------------------------------|------------------------------------------|------------|
|                     |                                 | Houston, Texas                           |       |
| (State of Incorporation) | (I.R.S. Employer Identification No.) | (Address of Principal executive offices) | (Zip Code) |

| Title of each class          | Name of each exchange on which registered |
|------------------------------|-------------------------------------------|
| Common Stock, $.10 Par Value | NYSE Amex                                 |

----

----

----

|   |   | Oil Wells |   |   | Gas Wells |   |   | Total Wells |   |
|--------|--------|-----------|--------|--------|-----------|--------|--------|-------------|--------|
|   |   | Gross     |   |   | Net       |   |   | Gross       |   |   | Net |   |   | Gross |   |   | Net |   |
| Texas  |   |      | 69     |   |      |   | 9.36   |        |   |   | 130 |   |   |   | 11.56 |   |   |   | 199 |   |   |   | 20.92 |   |
| Other  |   |      | 94     |   |      |   | 4.26   |        |   |   | 54 |   |   |   | 5.40 |   |   |   | 148 |   |   |   | 9.66 |   |
|   |   |      | 163    |   |      |   | 13.62  |        |   |   | 184 |   |   |   | 16.96 |   |   |   | 347 |   |   |   | 30.58 |   |

|   |   | Developed Acreage |    |   | Undeveloped Acreage |   |
|--------|--------|-------------------|---------|--------|---------------------|--------|
|   |   | Gross             |    |   | Net                 |   |   | Gross |   |   | Net |   |
| Texas  |   |              | 92,782  |   |                |   | 10,027 |   |   |   | 213,627 |   |   |   | 16,783 |   |
| Kansas |   |              | 480     |   |                |   | 80 |   |   |   | 23,213 |   |   |   | 2,289 |   |
| Other  |   |              | 7,499   |   |                |   | 913 |   |   |   | 5,496 |   |   |   | 858 |   |
|   |   |              | 100,761 |   |                |   | 11,020 |   |   |   | 242,336 |   |   |   | 19,930 |   |

|                      |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                      |   | Gross  |   |   | Net    |   |   | Gross  |   |   | Net |   |   | Gross |   |   | Net |   |
| Exploratory wells drilled |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Productive              |   |   | -      |   |   |   | -      |   |   |   | 2 |   |   |   | .10 |   |   |   | 2 |   |   |   | .13 |   |
| - Dry                     |   |   | 12     |   |   |   | .67    |   |   |   | 7 |   |   |   | .94 |   |   |   | 2 |   |   |   | .22 |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Development wells drilled |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Productive              |   |   | 41     |   |   |   | 1.77   |   |   |   | 24 |   |   |   | 1.35 |   |   |   | 17 |   |   |   | 1.06 |   |
| - Dry                     |   |   | -      |   |   |   | -      |   |   |   | 2 |   |   |   | .10 |   |   |   | 7 |   |   |   | .68 |   |
|                      |   |   | 53     |   |   |   | 2.44   |   |   |   | 35 |   |   |   | 2.49 |   |   |   | 28 |   |   |   | 2.09 |   |

|                                                        |   | December 31, |   |
|-------------------------------------------------------------|--------|--------------|--------|
|                                                        |   | 2010         |   |   | 2009 |   |   | 2008 |   |
| Crude oil (thousands of barrels)                            |   |         | 267    |   |   |   | 242 |   |   |   | 230 |   |
| Natural gas (thousands of mcf)                              |   |         | 7,794  |   |   |   | 7,248 |   |   |   | 6,443 |   |
| Standardized measure of discounted future                   |   |         |   |   |   |   |   |   |   |   |   |   |
| net cash flows from oil and natural gas  reserves |   | $            | 16,672 |   |   | $ | 9,305 |   |   | $ | 11,547 |   |

----

| Years Ended  |   | Crude Oil |   |   | Natural   |   |
|--------------|--------|-----------|--------|--------|-----------|--------|
| December 31, |   | (barrels) |   |   | Gas (mcf) |   |
| 2010         |   |      | 54,000 |   |      |   | 1,365,000 |   |
| 2009         |   |      | 49,500 |   |      |   | 1,304,000 |   |
| 2008         |   |      | 50,500 |   |      |   | 1,243,000 |   |

|                                    |   | Years Ended December 31, |   |
|-----------------------------------------|--------|--------------------------|--------|
|                                    |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Average oil and condensate              |   |                     |   |   |   |   |   |   |   |
| sales price per barrel                  |   | $                        | 77.09  |   |   | $ | 58.10 |   |   | $ | 99.25 |   |
| Average natural gas                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| sales price per mcf                     |   | $                        | 5.02   |   |   | $ | 4.43 |   |   | $ | 9.84 |   |
| Average production cost, per equivalent |   |                     |   |   |   |   |   |   |   |   |   |   |
| barrel, charged to expense              |   | $                        | 13.99  |   |   | $ | 13.25 |   |   | $ | 18.34 |   |

| -   | The Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended. |
|---------------|-------------------------------------------------------------------------------------------------------------|

| -   | Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA" or "Superfund"), as amended. |
|---------------|---------------------------------------------------------------------------------------------------------------------|

| -   | The Clean Water Act of 1972, as amended. |
|---------------|------------------------------------------|

| -   | Federal Oil Pollution Act of 1990, as amended. |
|---------------|------------------------------------------------|

| -   | The Clean Air Act of 1970, as amended. |
|---------------|----------------------------------------|

| -   | The Toxic Substances Control Act of 1976, as amended. |
|---------------|-------------------------------------------------------|

| -   | The Emergency Planning and Community Right-to-Know Act. |
|---------------|---------------------------------------------------------|

| -   | The Occupational Safety and Health Act of 1970, as amended. |
|---------------|-------------------------------------------------------------|

----

| -   | Texas Clean Air Act. |
|---------------|----------------------|

| -   | Texas Solid Waste Disposal Act. |
|---------------|---------------------------------|

| -   | Texas Water Code. |
|---------------|-------------------|

| -   | Texas Oil Spill Prevention and Response Act of 1991, as amended. |
|---------------|------------------------------------------------------------------|

----

----

----

----

| ·   | supply and demand for oil and gas and expectations regarding supply and demand; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | political conditions in other oil-producing countries, including the possibility of insurgency or war in such areas; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | economic conditions in the United States and worldwide; |
|--------------------|---------------------------------------------------------|

| ·   | governmental regulations and taxation; |
|--------------------|----------------------------------------|

| ·   | impact of energy conservation efforts; |
|--------------------|----------------------------------------|

| ·   | the price and availability of alternative fuel sources; |
|--------------------|---------------------------------------------------------|

| ·   | weather conditions; |
|--------------------|---------------------|

| ·   | availability of local, interstate and intrastate transportation systems; and |
|--------------------|------------------------------------------------------------------------------|

| ·   | market uncertainty. |
|--------------------|---------------------|

----

----

| ·   | lack of acceptable prospective acreage; |
|--------------------|-----------------------------------------|

| ·   | inadequate capital resources; |
|--------------------|-------------------------------|

| ·   | weather; |
|--------------------|----------|

| ·   | title problems; |
|--------------------|-----------------|

| ·   | compliance with governmental regulations; and |
|--------------------|-----------------------------------------------|

| ·   | mechanical difficulties. |
|--------------------|--------------------------|

----

----

| Item 5. | MARKET FOR THE REGISTRANT'S COMMON STOCK, RELATED SECURITY HOLDER MATTERS AND ISSUER REPURCHASE OF EQUITY SECURITIES |
|---------|----------------------------------------------------------------------------------------------------------------------|

|           |   | American Stock Exchange |   |
|----------------|--------|-------------------------|--------|
|           |   | High                    |   |   | Low |   |
| 2009           |   |                    |   |   |   |   |
| First Quarter  |   | $                       | 18.40  |   |   | $ | 12.66 |   |
| Second Quarter |   |                    | 18.49  |   |   |   | 12.75 |   |
| Third Quarter  |   |                    | 21.95  |   |   |   | 14.83 |   |
| Fourth Quarter |   |                    | 25.18  |   |   |   | 19.18 |   |
|           |   |                    |   |   |   |   |   |   |
| 2010           |   |                    |   |   |   |   |   |   |
| First Quarter  |   | $                       | 23.39  |   |   | $ | 17.40 |   |
| Second Quarter |   |                    | 19.95  |   |   |   | 15.25 |   |
| Third Quarter  |   |                    | 21.49  |   |   |   | 16.00 |   |
| Fourth Quarter |   |                    | 24.95  |   |   |   | 17.86 |   |

----

| 1.   | $100.00 was invested on December 31, 2005 in the Company’s common stock, the S&P 500 Index, and the S&P 500 Integrated Oil and Gas Index. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Dividends are reinvested on the ex-dividend dates. |
|----------------|----------------------------------------------------|

|  Total Return To Shareholders         |
|--------------------------------------------|
| (Includes reinvestment of dividends)       |
|                                       |
|                                       |   | INDEXED RETURNS |
|                                       | Base | Years Ending |
|                                       | Period |   |   |   |   |   |
| Company / Index                            | Dec05 | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 |
| Adams Resources & Energy, Inc.         | 100 | 133.65 | 116.48 | 79.61 | 105.65 | 119.21 |
| S&P 500 Index                          | 100 | 115.80 | 122.16 | 76.96 | 97.33 | 111.99 |
| S&P 500 Integrated Oil & Gas Index | 100 | 134.83 | 175.08 | 136.93 | 135.17 | 160.64 |

----

|                                        |   | Years Ended December 31,              |
|---------------------------------------------|--------|---------------------------------------|
|                                        |   |  2010                            | 2009 |   |   | 2008 |   |   |  2007 |  2006 |   |   |   |   |   |
|                                        |   | (In thousands, except per share data) |
| Revenues:                                   |   |                                  |
| Marketing                                   |   | $                                     | 2,144,082 |   |   | $ | 1,889,583 |   |   | $ | 4,074,677 |   |   | $ | 2,558,545 |   |   | $ | 2,167,502 |   |
| Transportation                              |   |                                  | 56,867 |   |   |   | 44,895 |   |   |   | 67,747 |   |   |   | 63,894 |   |   |   | 62,151 |   |
| Oil and natural gas                         |   |                                  | 11,021 |   |   |   | 8,650 |   |   |   | 17,248 |   |   |   | 13,783 |   |   |   | 16,950 |   |
|                                        |   | $                                     | 2,211,970 |   |   | $ | 1,943,128 |   |   | $ | 4,159,672 |   |   | $ | 2,636,222 |   |   | $ | 2,246,603 |   |
| Operating Earnings:                         |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Marketing                                   |   | $                                     | 16,724 |   |   | $ | 17,487 |   |   | $ | (2,704 | ) |   | $ | 20,152 |   |   | $ | 12,975 |   |
| Transportation                              |   |                                  | 6,623 |   |   |   | 2,128 |   |   |   | 4,245 |   |   |   | 5,504 |   |   |   | 5,173 |   |
| Oil and gas operations                      |   |                                  | (1,757 | ) |   |   | (3,625 | ) |   |   | (3,348 | ) |   |   | (2,853 | ) |   |   | 5,355 |   |
| Oil and gas property sale                   |   |                                  | - |   |   |   | - |   |   |   | - |   |   |   | 12,078 |   |   |   | - |   |
| General and administrative                  |   |                                  | (9,044 | ) |   |   | (9,589 | ) |   |   | (9,667 | ) |   |   | (10,974 | ) |   |   | (8,536 | ) |
|                                        |   |                                  | 12,546 |   |   |   | 6,401 |   |   |   | (11,474 | ) |   |   | 23,907 |   |   |   | 14,967 |   |
| Other income (expense):                     |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                             |   |                                  | 191 |   |   |   | 125 |   |   |   | 1,103 |   |   |   | 1,741 |   |   |   | 965 |   |
| Interest expense                            |   |                                  | (36 | ) |   |   | (25 | ) |   |   | (187 | ) |   |   | (134 | ) |   |   | (159 | ) |
| Earnings (loss) from continuing operations  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| before income taxes                         |   |                                  | 12,701 |   |   |   | 6,501 |   |   |   | (10,558 | ) |   |   | 25,514 |   |   |   | 15,773 |   |
|                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Income tax (provision) benefit              |   |                                  | (4,070 | ) |   |   | (2,352 | ) |   |   | 4,986 |   |   |   | (8,458 | ) |   |   | (5,290 | ) |
|                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                         |   | $                                     | 8,631 |   |   | $ | 4,149 |   |   | $ | (5,572 | ) |   | $ | 17,056 |   |   | $ | 10,483 |   |
|                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (Loss) Per Share                   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings (loss) per share |   | $                                     | 2.05 |   |   | $ | .98 |   |   | $ | (1.32 | ) |   | $ | 4.04 |   |   | $ | 2.49 |   |
|                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Dividends per common share                  |   | $                                     | .54 |   |   | $ | .50 |   |   | $ | .50 |   |   | $ | .47 |   |   | $ | .42 |   |
|                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Financial Position                          |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Working capital                             |   | $                                     | 39,978 |   |   | $ | 38,372 |   |   | $ | 41,559 |   |   | $ | 50,572 |   |   | $ | 35,208 |   |
| Total assets                                |   |                                  | 301,305 |   |   |   | 249,401 |   |   |   | 210,926 |   |   |   | 357,075 |   |   |   | 289,287 |   |
| Long-term debt, net of                      |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| current maturities                          |   |                                  | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |
| Shareholders’ equity                  |   |                                  | 90,155 |   |   |   | 83,801 |   |   |   | 81,761 |   |   |   | 89,442 |   |   |   | 74,368 |   |
| Dividends on common shares                  |   |                                  | 2,277 |   |   |   | 2,109 |   |   |   | 2,109 |   |   |   | 1,982 |   |   |   | 1,771 |   |

| -   | In 2007, certain oil and natural gas producing properties were sold for $14.9 million producing a net gain of $12.1 million. |
|---------------|------------------------------------------------------------------------------------------------------------------------------|

----

|   | Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------|-----------------------------------------------------------------------------------------------|

|                      |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|---------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Revenues                  |   |   |      |   |   |   |      |   |   |
| Crude oil                 |   | $      | 2,005,301 |   |   | $      | 1,770,600 |   |   | $ | 3,849,531 |   |
| Natural gas               |   |   | 10,592    |   |   |   | 14,232    |   |   |   | 11,586 |   |
| Refined products          |   |   | 128,189   |   |   |   | 104,751   |   |   |   | 213,560 |   |
| Total                     |   | $      | 2,144,082 |   |   | $      | 1,889,583 |   |   | $ | 4,074,677 |   |
|                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Operating Earnings (loss) |   |   |      |   |   |   |      |   |   |   |   |   |
| Crude oil                 |   | $      | 13,530    |   |   | $      | 15,404    |   |   | $ | (4,545 | ) |
| Natural gas               |   |   | 3,073     |   |   |   | 2,749     |   |   |   | 2,247 |   |
| Refined products          |   |   | 121       |   |   |   | (666      | )      |   |   | (406 | ) |
| Total                     |   | $      | 16,724    |   |   | $      | 17,487    |   |   | $ | (2,704 | ) |
|                      |   |   |      |   |   |   |      |   |   |   |   |   |
| Depreciation              |   |   |      |   |   |   |      |   |   |   |   |   |
| Crude oil                 |   | $      | 2,320     |   |   | $      | 1,997     |   |   | $ | 2,039 |   |
| Natural gas               |   |   | 44        |   |   |   | 166       |   |   |   | 163 |   |
| Refined products          |   |   | 503       |   |   |   | 533       |   |   |   | 565 |   |
| Total                     |   | $      | 2,867     |   |   | $      | 2,696     |   |   | $ | 2,767 |   |

|                              |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                              |   |   |    |   |   |   |    |   |   |
| Field Level Purchases per day (1) |   |   |    |   |   |   |    |   |   |
| Crude Oil – barrels         |   |   | 69,000  |   |   |   | 66,100  |   |   |   | 67,800 |   |
| Natural Gas – mmbtu’s |   |   | 258,000 |   |   |   | 363,000 |   |   |   | 437,000 |   |
|                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Average Purchase Price            |   |   |    |   |   |   |    |   |   |   |   |   |
| Crude Oil – per barrel      |   | $      | 77.20   |   |   | $      | 58.32   |   |   | $ | 99.72 |   |
| Natural Gas – per mmbtu     |   | $      | 4.28    |   |   | $      | 3.75    |   |   | $ | 8.63 |   |

|   | (1) Reflects the volume purchased from third parties at the oil and natural gas field level and pipeline pooling points. |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

|                                                   |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| As reported operating earnings                         |   | $      | 13,530 |   |   | $      | 15,404 |   |   | $ | (4,545 | ) |
|      Inventory liquidation (gains) |   |   | (2,272 | )      |   |   | (5,780 | )      |   |   | 11,883 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | $      | 11,258 |   |   | $      | 9,624  |   |   | $ | 7,338 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diesel fuel expense                                    |   | $      | 6,001  |   |   | $      | 4,612  |   |   | $ | 7,271 |   |

----

|               |   | 2010   |   |   | 2009      |   |   | 2008   |   |
|--------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
|               |   | Amount |   |   | Change(1) |   |   | Amount |   |   | Change(1) |   |   | Amount |   |   | Change(1) |   |
|               |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues           |   | $      | 56,867 |   |      |   | 27     | %      |   | $ | 44,895 |   |   |   | (34 | )% |   | $ | 67,747 |   |   |   | 6 | % |
|               |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating earnings |   | $      | 6,623  |   |      |   | 211    | %      |   | $ | 2,128 |   |   |   | (50 | )% |   | $ | 4,245 |   |   |   | (23 | )% |
|               |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation       |   | $      | 4,288  |   |      |   | 8      | %      |   | $ | 3,970 |   |   |   | 3 | % |   | $ | 3,843 |   |   |   | (10 | )% |

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

----

|                           |   | 2010   |   |   | 2009      |   |   | 2008   |   |
|--------------------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
|                           |   | Amount |   |   | Change(1) |   |   | Amount |   |   | Change(1) |   |   | Amount |   |   | Change(1) |   |
|                           |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                       |   | $      | 11,021 |   |      |   | 27     | %      |   | $ | 8,650 |   |   |   | (50 | )% |   | $ | 17,248 |   |   |   | 25 | % |
|                           |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating earnings (loss)      |   |   | (1,757 | )      |      |   | 51     | %      |   |   | (3,625 | ) |   |   | 8 | % |   |   | (3,348 | ) |   |   | 17 | % |
|                           |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and depletion     |   |   | 4,662  |   |      |   | 28     | %      |   |   | 3,654 |   |   |   | (46 | )% |   |   | 6,763 |   |   |   | 16 | % |
|                           |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Producing property impairments |   |   | 946    |   |      |   | (30    | )%     |   |   | 1,350 |   |   |   | (56 | )% |   |   | 3,078 |   |   |   | 153 | % |

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

|               |   | 2010   |      |   |   | 2009   |   |      |   | 2008   |   |   |
|--------------------|--------|--------|-----------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
|               |   |   |      |   |   |   |   |      |   |   |   |   |
| Production Volumes |   |   |      |   |   |   |   |      |   |   |   |   |
| - Crude Oil        |   |   | 54,000    |   | bbls   |   |   | 49,500    |   | bbls   |   |   | 50,500 |   | bbls |
| - Natural Gas      |   |   | 1,365,000 |   | mcf    |   |   | 1,304,000 |   | mcf    |   |   | 1,243,000 |   | mcf |
|               |   |   |      |   |   |   |   |      |   |   |   |   |   |   |   |
| Average Price      |   |   |      |   |   |   |   |      |   |   |   |   |   |   |   |
| - Crude Oil        |   | $      | 77.09     |   | bbls   |   | $      | 58.10     |   | bbls   |   | $      | 99.25 |   | bbls |
| - Natural Gas      |   | $      | 5.02      |   | mcf    |   | $      | 4.43      |   | mcf    |   | $      | 9.84 |   | mcf |

|                   |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Dry hole expense       |   | $      | 1,894  |   |   | $      | 661    |   |   | $ | 2,421 |   |
| Prospect impairment    |   |   | 1,277  |   |   |   | 2,423  |   |   |   | 2,834 |   |
| Seismic and geological |   |   | 62     |   |   |   | 734    |   |   |   | 775 |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  |   | $      | 3,233  |   |   | $      | 3,818  |   |   | $ | 6,030 |   |

----

|                                      |   | 2010        |      |   | 2009        |   |      | 2008        |   |
|-------------------------------------------|--------|-------------|-----------|--------|-------------|--------|-----------|-------------|--------|
|                                      |   | (Eq. Bbls.) |      |   | (Eq. Bbls.) |   |      | (Eq. Bbls.) |   |
|                                      |   |        |      |   |        |   |      |        |   |
| Proved reserves – beginning of year |   |        | 1,450,000 |   |        |   | 1,304,000 |        |   |   | 1,475,000 |   |
| Estimated reserve additions               |   |        | 536,000   |   |        |   | 439,000   |        |   |   | 395,000 |   |
| Production volumes                        |   |        | (282,000  | )      |        |   | (267,000  | )           |   |   | (258,000 | ) |
| Revisions of previous estimates           |   |        | (138,000  | )      |        |   | (26,000   | )           |   |   | (308,000 | ) |
|                                      |   |        |      |   |        |   |      |        |   |   |   |   |
| Proved reserves - end of year             |   |        | 1,566,000 |   |        |   | 1,450,000 |        |   |   | 1,304,000 |   |

----

| -   | General and administrative, interest income and income tax |
|---------------|------------------------------------------------------------|

|   | - | Outlook |
|--------|---|---------|

| -   | Maintain marketing operating earnings at the $15 million level exclusive of inventory valuation gains or losses. |
|---------------|------------------------------------------------------------------------------------------------------------------|

| -   | Maintain transportation operating earnings at the $6 million level. |
|---------------|---------------------------------------------------------------------|

| -   | Establish oil and gas operating earnings at the $5 million level and replace 2011 production with current reserve additions. |
|---------------|------------------------------------------------------------------------------------------------------------------------------|

----

----

|           |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | 2015   |   |   | Thereafter |   |   | Total  |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
|           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |
| Lease payments |   | $      | 2,070  |   |   | $      | 1,539  |   |   | $      | 1,427  |   |   | $      | 748    |   |       | $      | 480    |   |   | $ | 1,080 |   |   | $ | 7,344 |   |

|        |   | January |    |   | Remaining |   |   |   |   |   |   |   |   |       |   |   |   |   |
|-------------|--------|---------|---------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
|        |   | 2011    |    |   | 2011      |   |   | 2012   |   |   | 2013   |   |   | Thereafter |   |   | Total  |   |
| Crude Oil   |   | $       | 186,904 |   |      | $      | 5,296  |   |   | $      | -      |   |   | $          | -      |   |   | $      | - |   |   | $ | 192,200 |   |
| Natural Gas |   |    | 22,872  |   |      |   | 125    |   |   |   | -      |   |   |       | -      |   |   |   | - |   |   |   | 22,997 |   |
|        |   | $       | 209,776 |   |      | $      | 5,421  |   |   | $      | -      |   |   | $          | -      |   |   | $      | - |   |   | $ | 215,197 |   |

----

----

----

----

----

|                                                                      | Page   |
|---------------------------------------------------------------------------|--------|
|                                                                      |   |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                   | 28     |
|                                                                      |   |
| FINANCIAL STATEMENTS:                                                     |   |
|                                                                      |   |
| Consolidated Balance Sheets as of December 31, 2010 and 2009              | 29     |
|                                                                      |   |
| Consolidated Statements of Operations for the Years Ended                 |   |
| December 31, 2010, 2009 and 2008                                          | 30     |
|                                                                      |   |
| Consolidated Statements of Shareholders’ Equity for the Years Ended |   |
| December 31, 2010, 2009 and 2008                                          | 31     |
|                                                                      |   |
| Consolidated Statements of Cash Flows for the Years Ended                 |   |
| December 31, 2010, 2009 and 2008                                          | 32     |
|                                                                      |   |
| Notes to Consolidated Financial Statements                                | 33     |

----

----

|                                                              |   | December 31, |    |
|-------------------------------------------------------------------|--------|--------------|---------|
| ASSETS                                                            |   | 2010         |    |   | 2009 |   |
|                                                              |   |         |    |   |   |   |
| CURRENT ASSETS:                                                   |   |         |    |   |   |   |
| Cash and cash equivalents                                         |   | $            | 29,032  |   |   | $ | 16,806 |   |
| Accounts receivable, net of allowance for doubtful accounts of    |   |         |    |   |   |   |   |   |
| $1,064 and $1,681, respectively                                   |   |         | 190,169 |   |   |   | 155,941 |   |
| Inventories                                                       |   |         | 14,591  |   |   |   | 15,260 |   |
| Fair value contracts                                              |   |         | 2,764   |   |   |   | 1,581 |   |
| Income tax receivable                                             |   |         | 2,316   |   |   |   | 2,171 |   |
| Prepayments                                                       |   |         | 8,104   |   |   |   | 10,804 |   |
|                                                              |   |         |    |   |   |   |   |   |
| Total current assets                                              |   |         | 246,976 |   |   |   | 202,563 |   |
|                                                              |   |         |    |   |   |   |   |   |
| PROPERTY AND EQUIPMENT:                                           |   |         |    |   |   |   |   |   |
| Marketing                                                         |   |         | 25,407  |   |   |   | 19,787 |   |
| Transportation                                                    |   |         | 43,131  |   |   |   | 38,859 |   |
| Oil and gas (successful efforts method)                           |   |         | 73,011  |   |   |   | 73,843 |   |
| Other                                                             |   |         | 188     |   |   |   | 171 |   |
|                                                              |   |         | 141,737 |   |   |   | 132,660 |   |
|                                                              |   |         |    |   |   |   |   |   |
| Less – Accumulated depreciation, depletion and amortization |   |         | (94,148 | ) |   |   | (90,355 | ) |
|                                                              |   |         | 47,589  |   |   |   | 42,305 |   |
| OTHER ASSETS:                                                     |   |         |    |   |   |   |   |   |
| Oil and gas property held for sale                                |   |         | 3,389   |   |   |   | - |   |
| Deferred income tax asset                                         |   |         | 374     |   |   |   | 1,290 |   |
| Cash deposits and other                                           |   |         | 2,977   |   |   |   | 3,243 |   |
|                                                              |   | $            | 301,305 |   |   | $ | 249,401 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                        |   |         |    |   |   |   |   |   |
|                                                              |   |         |    |   |   |   |   |   |
| CURRENT LIABILITIES:                                              |   |         |    |   |   |   |   |   |
| Accounts payable                                                  |   | $            | 200,763 |   |   | $ | 158,176 |   |
| Accounts payable – related party                            |   |         | 9       |   |   |   | 75 |   |
| Fair value contracts                                              |   |         | 1,478   |   |   |   | 1,331 |   |
| Accrued and other liabilities                                     |   |         | 3,894   |   |   |   | 3,872 |   |
| Current deferred income taxes                                     |   |         | 854     |   |   |   | 737 |   |
| Total current liabilities                                         |   |         | 206,998 |   |   |   | 164,191 |   |
|                                                              |   |         |    |   |   |   |   |   |
| LONG-TERM DEBT                                                    |   |         | -       |   |   |   | - |   |
|                                                              |   |         |    |   |   |   |   |   |
| OTHER LIABILITIES:                                                |   |         |    |   |   |   |   |   |
| Asset retirement obligations                                      |   |         | 1,390   |   |   |   | 1,315 |   |
| Deferred taxes and other liabilities                              |   |         | 2,762   |   |   |   | 94 |   |
|                                                              |   |         | 211,150 |   |   |   | 165,000 |   |
|                                                              |   |         |    |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES (NOTE 6)                            |   |         |    |   |   |   |   |   |
|                                                              |   |         |    |   |   |   |   |   |
| 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 issued and outstanding                                  |   |         | 422     |   |   |   | 422 |   |
| Contributed capital                                               |   |         | 11,693  |   |   |   | 11,693 |   |
| Retained earnings                                                 |   |         | 78,040  |   |   |   | 71,686 |   |
| Total shareholders’ equity                                  |   |         | 90,155  |   |   |   | 83,801 |   |
|                                                              |   | $            | 301,305 |   |   | $ | 249,401 |   |

----

|                                            |   | Years Ended December 31, |      |
|-------------------------------------------------|--------|--------------------------|-----------|
|                                            |   | 2010                     |      |   | 2009 |   |   | 2008 |   |
| REVENUES:                                       |   |                     |      |   |   |   |   |   |   |
| Marketing                                       |   | $                        | 2,144,082 |   |   | $ | 1,889,583 |   |   | $ | 4,074,677 |   |
| Transportation                                  |   |                     | 56,867    |   |   |   | 44,895 |   |   |   | 67,747 |   |
| Oil and natural gas                             |   |                     | 11,021    |   |   |   | 8,650 |   |   |   | 17,248 |   |
|                                            |   |                     | 2,211,970 |   |   |   | 1,943,128 |   |   |   | 4,159,672 |   |
| COSTS AND EXPENSES:                             |   |                     |      |   |   |   |   |   |   |   |   |   |
| Marketing                                       |   |                     | 2,124,491 |   |   |   | 1,869,400 |   |   |   | 4,074,614 |   |
| Transportation                                  |   |                     | 45,956    |   |   |   | 38,797 |   |   |   | 59,659 |   |
| Oil and gas operations                          |   |                     | 8,116     |   |   |   | 8,621 |   |   |   | 13,833 |   |
| General and administrative                      |   |                     | 9,044     |   |   |   | 9,589 |   |   |   | 9,667 |   |
| Depreciation, depletion and amortization        |   |                     | 11,817    |   |   |   | 10,320 |   |   |   | 13,373 |   |
|                                            |   |                     | 2,199,424 |   |   |   | 1,936,727 |   |   |   | 4,171,146 |   |
|                                            |   |                     |      |   |   |   |   |   |   |   |   |   |
| Operating Earnings (Loss)                       |   |                     | 12,546    |   |   |   | 6,401 |   |   |   | (11,474 | ) |
|                                            |   |                     |      |   |   |   |   |   |   |   |   |   |
| Other Income (Expense):                         |   |                     |      |   |   |   |   |   |   |   |   |   |
| Interest income                                 |   |                     | 191       |   |   |   | 125 |   |   |   | 1,103 |   |
| Interest expense                                |   |                     | (36       | ) |   |   | (25 | ) |   |   | (187 | ) |
|                                            |   |                     |      |   |   |   |   |   |   |   |   |   |
| Earnings (loss) before income taxes             |   |                     | 12,701    |   |   |   | 6,501 |   |   |   | (10,558 | ) |
|                                            |   |                     |      |   |   |   |   |   |   |   |   |   |
| Income Tax (Provision) Benefit:                 |   |                     |      |   |   |   |   |   |   |   |   |   |
| Current                                         |   |                     | (371      | ) |   |   | (1,280 | ) |   |   | (1,689 | ) |
| Deferred                                        |   |                     | (3,699    | ) |   |   | (1,072 | ) |   |   | 6,675 |   |
|                                            |   |                     | (4,070    | ) |   |   | (2,352 | ) |   |   | 4,986 |   |
|                                            |   |                     |      |   |   |   |   |   |   |   |   |   |
| Net Earnings (Loss)                             |   | $                        | 8,631     |   |   | $ | 4,149 |   |   | $ | (5,572 | ) |
|                                            |   |                     |      |   |   |   |   |   |   |   |   |   |
| EARNINGS (LOSS) PER SHARE:                      |   |                     |      |   |   |   |   |   |   |   |   |   |
| Basic and diluted net earnings (loss) per share |   | $                        | 2.05      |   |   | $ | .98 |   |   | $ | (1.32 | ) |
|                                            |   |                     |      |   |   |   |   |   |   |   |   |   |

----

|                           |   |   |   |   |        |   |   |     |   |   | Total               |   |
|--------------------------------|--------|--------|--------|--------|-------------|--------|--------|----------|--------|--------|---------------------|--------|
|                           |   | Common |   |   | Contributed |   |   | Retained |   |   | Shareholders’ |   |
|                           |   | Stock  |   |   | Capital     |   |   | Earnings |   |   | Equity              |   |
|                           |   |   |   |   |        |   |   |     |   |   |                |   |
| BALANCE, January 1, 2008       |   | $      | 422    |   |        | $      | 11,693 |     |   | $      | 77,327              |   |   | $ | 89,442 |   |
| Net earnings                   |   |   | -      |   |        |   | -      |     |   |   | (5,572              | )      |   |   | (5,572 | ) |
| Dividends paid on common stock |   |   | -      |   |        |   | -      |     |   |   | (2,109              | )      |   |   | (2,109 | ) |
| BALANCE, December 31, 2008     |   | $      | 422    |   |        | $      | 11,693 |     |   | $      | 69,646              |   |   | $ | 81,761 |   |
| Net earnings (loss)            |   |   | -      |   |        |   | -      |     |   |   | 4,149               |   |   |   | 4,149 |   |
| Dividends paid on common stock |   |   | -      |   |        |   | -      |     |   |   | (2,109              | )      |   |   | (2,109 | ) |
| BALANCE, December 31, 2009     |   | $      | 422    |   |        | $      | 11,693 |     |   | $      | 71,686              |   |   | $ | 83,801 |   |
| Net earnings                   |   |   | -      |   |        |   | -      |     |   |   | 8,631               |   |   |   | 8,631 |   |
| Dividends paid on common stock |   |   | -      |   |        |   | -      |     |   |   | (2,277              | )      |   |   | (2,277 | ) |
| BALANCE, December 31, 2010     |   | $      | 422    |   |        | $      | 11,693 |     |   | $      | 78,040              |   |   | $ | 90,155 |   |

----

|                                                     |   | Years Ended December 31, |    |
|----------------------------------------------------------|--------|--------------------------|---------|
|                                                     |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
| CASH PROVIDED BY OPERATIONS:                             |   |                     |    |   |   |   |   |   |   |
| Net earnings (loss)                                      |   | $                        | 8,631   |   |   | $ | 4,149 |   |   | $ | (5,572 | ) |
| Adjustments to reconcile net earnings (loss) to net cash |   |                     |    |   |   |   |   |   |   |   |   |   |
| from operating activities-                               |   |                     |    |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization                 |   |                     | 11,817  |   |   |   | 10,320 |   |   |   | 13,373 |   |
| Property sale (gains) losses                             |   |                     | 94      |   |   |   | (177 | ) |   |   | 354 |   |
| Dry hole costs incurred                                  |   |                     | 1,894   |   |   |   | 661 |   |   |   | 2,421 |   |
| Impairment of oil and natural gas properties             |   |                     | 2,224   |   |   |   | 3,773 |   |   |   | 5,911 |   |
| Provision for doubtful accounts                          |   |                     | 29      |   |   |   | 430 |   |   |   | 1,059 |   |
| Deferred income taxes                                    |   |                     | 3,699   |   |   |   | 1,072 |   |   |   | (6,675 | ) |
| Net change in fair value contracts                       |   |                     | (1,036  | ) |   |   | 251 |   |   |   | 1,238 |   |
| Decrease (increase) in accounts receivable               |   |                     | (34,257 | ) |   |   | (36,515 | ) |   |   | 141,250 |   |
| Decrease (increase) in inventories                       |   |                     | 669     |   |   |   | (1,053 | ) |   |   | 569 |   |
| Decrease (increase) in income tax receivable             |   |                     | (145    | ) |   |   | 1,458 |   |   |   | (1,075 | ) |
| Decrease (increase) in prepayments                       |   |                     | 2,700   |   |   |   | (5,580 | ) |   |   | (1,456 | ) |
| Increase (decrease) in accounts payable                  |   |                     | 40,521  |   |   |   | 43,069 |   |   |   | (137,548 | ) |
| Increase (decrease) in accrued and other liabilities     |   |                     | (406    | ) |   |   | (58 | ) |   |   | 223 |   |
| Other changes, net                                       |   |                     | 494     |   |   |   | 485 |   |   |   | (433 | ) |
| Net cash provided by operating activities                |   |                     | 36,928  |   |   |   | 22,285 |   |   |   | 13,639 |   |
|                                                     |   |                     |    |   |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                    |   |                     |    |   |   |   |   |   |   |   |   |   |
| Property and equipment additions                         |   |                     | (22,421 | ) |   |   | (22,390 | ) |   |   | (17,688 | ) |
| Insurance and state collateral (deposits) refunds        |   |                     | (151    | ) |   |   | (192 | ) |   |   | 502 |   |
| Proceeds from property sales                             |   |                     | 147     |   |   |   | 1,004 |   |   |   | 167 |   |
| Redemption of short-term investments                     |   |                     | -       |   |   |   | - |   |   |   | 10,000 |   |
| Investment in short-term investments                     |   |                     | -       |   |   |   | - |   |   |   | (10,000 | ) |
| Net cash (used in) investing activities                  |   |                     | (22,425 | ) |   |   | (21,578 | ) |   |   | (17,019 | ) |
|                                                     |   |                     |    |   |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                    |   |                     |    |   |   |   |   |   |   |   |   |   |
| Dividend payments                                        |   |                     | (2,277  | ) |   |   | (2,109 | ) |   |   | (2,109 | ) |
| Net cash (used in) financing activities                  |   |                     | (2,277  | ) |   |   | (2,109 | ) |   |   | (2,109 | ) |
|                                                     |   |                     |    |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents         |   |                     | 12,226  |   |   |   | (1,402 | ) |   |   | (5,489 | ) |
|                                                     |   |                     |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year           |   |                     | 16,806  |   |   |   | 18,208 |   |   |   | 23,697 |   |
|                                                     |   |                     |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                 |   | $                        | 29,032  |   |   | $ | 16,806 |   |   | $ | 18,208 |   |

----

|               |   | December 31, |   |
|--------------------|--------|--------------|--------|
|               |   | 2010         |   |   | 2009 |   |
| Crude oil          |   | $            | 12,909 |   |   | $ | 14,053 |   |
| Petroleum products |   |         | 1,682  |   |   |   | 1,207 |   |
|               |   |         |   |   |   |   |   |   |
|               |   | $            | 14,591 |   |   | $ | 15,260 |   |

----

|                                                                     |   | December 31, |   |
|--------------------------------------------------------------------------|--------|--------------|--------|
|                                                                     |   | 2010         |   |   | 2009 |   |
|     Cash collateral deposits for commodity purchases |   | $            | 5,150  |   |   | $ | 7,670 |   |
|     Insurance premiums                               |   |         | 1,954  |   |   |   | 2,478 |   |
|     Natural gas imbalances                           |   |         | 330    |   |   |   | 89 |   |
|     Rents, license and other                         |   |         | 670    |   |   |   | 567 |   |
|                                                                     |   |         |   |   |   |   |   |   |
|                                                                     |   | $            | 8,104  |   |   | $ | 10,804 |   |

|                              |   |                                                |   |
|-----------------------------------|--------|-----------------------------------------------------|--------|
|                              |   |                                                |   |
|                              |   | Producing PropertiesSubject to FairValue Impairment |   |
|                              |   | 2010                                                |   |   | 2009 |   |
| Net book value at January 1, 2010 |   | $                                                   | 2,220  |   |   | $ | 1,744 |   |
| Property additions                |   |                                                | 1,802  |   |   |   | 960 |   |
| Depletion taken                   |   |                                                | (753   | ) |   |   | (751 | ) |
| Impairment valuation loss         |   |                                                | (946   | ) |   |   | (1,350 | ) |
| Net book at December 31, 2010     |   | $                                                   | 2,323  |   |   | $ | 603 |   |

|                          |   | December 31, |   |
|-------------------------------|--------|--------------|--------|
|                          |   | 2010         |   |   | 2009 |   |
| Insurance collateral deposits |   | $            | 2,291  |   |   | $ | 2,648 |   |
| State collateral deposits     |   |         | 166    |   |   |   | 271 |   |
| Materials and supplies        |   |         | 520    |   |   |   | 324 |   |
|                          |   | $            | 2,977  |   |   | $ | 3,243 |   |

----

----

|                             |   | Balance Sheet Location and Amount |   |
|----------------------------------|--------|-----------------------------------|--------|
|                             |   | Current                           |   |   | Other |   |   | Current |   |   | Other |   |
|                             |   | Assets                            |   |   | Assets |   |   | Liabilities |   |   | Liabilities |   |
| Asset Derivatives                |   |                              |   |   |   |   |   |   |   |   |   |   |
| - Fair Value Commodity           |   |                              |   |   |   |   |   |   |   |   |   |   |
| Contracts at Gross Valuation     |   | $                                 | 8,094  |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Liability Derivatives            |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Fair Value Commodity           |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contracts at Gross Valuation     |   |                              | -      |   |   |   | - |   |   |   | 6,808 |   |   |   | - |   |
| Less Counterparty Offsets        |   |                              | (5,330 | ) |   |   | - |   |   |   | (5,330 | ) |   |   | - |   |
| As Reported Fair Value Contracts |   | $                                 | 2,764  |   |   | $ | - |   |   | $ | 1,478 |   |   | $ | - |   |

|                             |   | Balance Sheet Location and Amount |   |
|----------------------------------|--------|-----------------------------------|--------|
|                             |   | Current                           |   |   | Other |   |   | Current |   |   | Other |   |
|                             |   | Assets                            |   |   | Assets |   |   | Liabilities |   |   | Liabilities |   |
| Asset Derivatives                |   |                              |   |   |   |   |   |   |   |   |   |   |
| - Fair Value Commodity           |   |                              |   |   |   |   |   |   |   |   |   |   |
| Contracts at Gross Valuation     |   | $                                 | 2,035  |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Liability Derivatives            |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Fair Value Commodity           |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contracts at Gross Valuation     |   |                              | -      |   |   |   | - |   |   |   | 1,785 |   |   |   | - |   |
| Less Counterparty Offsets        |   |                              | (454   | ) |   |   | - |   |   |   | (454 | ) |   |   | - |   |
| As Reported Fair Value Contracts |   | $                                 | 1,581  |   |   | $ | - |   |   | $ | 1,331 |   |   | $ | - |   |

----

|                 |   | Gain (Loss) |   |
|----------------------|--------|-------------|--------|
| Location             |   | 2010        |   |   | 2009 |   |   | 2008 |   |
|                 |   |        |   |   |   |   |   |   |   |
| Revenues - marketing |   | $           | 1,036  |   |   | $ | (251 | ) |   | $ | (1,238 | ) |

|   | 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.  The Company utilizes the New York Mercantile Exchange “NYMEX” for its |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 1 valuations. |
|--------|---------------------|

|   | 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 market data.  Source data for Level 2 inputs include information provided by the NYMEX, the Intercontinental Exchange “ICE”, published price data and indices, third party price survey data and broker provided forward price statistics. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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      |   | $                  | -      |   |       | $      | 2,764 |   |   | $ | - |   |   | $ | 2,764 |   |
| - Current liabilities |   |               | (118   | )      |       |   | (1,360 | ) |   |   | - |   |   |   | (1,478 | ) |
| Net Value             |   | $                  | (118   | )      |       | $      | 1,404 |   |   | $ | - |   |   | $ | 1,286 |   |

----

|                  |   | Market Data Inputs |   |   |       |   |
|-----------------------|--------|--------------------|--------|--------|------------|--------|
|                  |   | Level 1            |   |   | Level 2    |   |   | Level 3 |   |   |   |   |
|                  |   | Quoted Prices      |   |   | Observable |   |   | Unobservable |   |   | Total |   |
| Derivatives           |   |               |   |   |       |   |   |   |   |   |   |   |
| - Current assets      |   | $                  | 224    |   |       | $      | 1,357 |   |   | $ | - |   |   | $ | 1,581 |   |
| - Current liabilities |   |               | -      |   |       |   | (1,331 | ) |   |   | - |   |   |   | (1,331 | ) |
| Net Value             |   | $                  | 224    |   |       | $      | 26 |   |   | $ | - |   |   | $ | 250 |   |

|                            |   | Level 1       |   |   | Level 2    |   |   |   |   |
|---------------------------------|--------|---------------|--------|--------|------------|--------|--------|--------|--------|
|                            |   | Quoted Prices |   |   | Observable |   |   | Total  |   |
| Net Fair Value January 1,       |   | $             | 224    |   |       | $      | 26     |   |   | $ | 250 |   |
| - Net realized (gains) losses   |   |          | (224   | )      |       |   | (26    | )      |   |   | (250 | ) |
| - Net unrealized gains (losses) |   |          |   |   |       |   |   |   |   |   |   |   |
| at inception of contract        |   |          | (118   | )      |       |   | 1,404  |   |   |   | 1,286 |   |
| Net Fair Value December 31,     |   | $             | (118   | )      |       | $      | 1,404  |   |   | $ | 1,286 |   |

|                            |   | Level 1       |   |   | Level 2    |   |   |   |   |
|---------------------------------|--------|---------------|--------|--------|------------|--------|--------|--------|--------|
|                            |   | Quoted Prices |   |   | Observable |   |   | Total  |   |
| Net Fair Value January 1,       |   | $             | 1,029  |   |       | $      | (528   | )      |   | $ | 501 |   |
| - Net realized (gains) losses   |   |          | (1,029 | )      |       |   | 528    |   |   |   | (501 | ) |
| - Net unrealized gains (losses) |   |          |   |   |       |   |   |   |   |   |   |   |
| at inception of contract        |   |          | 224    |   |       |   | 26     |   |   |   | 250 |   |
| Net Fair Value December 31,     |   | $             | 224    |   |       | $      | 26     |   |   | $ | 250 |   |

----

|                    |   | 2010   |   |   | 2009   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|
| Balance on January 1,   |   | $      | 1,315  |   |   | $      | 1,260 |   |
| -Liabilities incurred   |   |   | 76     |   |   |   | 44 |   |
| -Accretion of discount  |   |   | 75     |   |   |   | 74 |   |
| -Liabilities settled    |   |   | (76    | )      |   |   | (60 | ) |
| -Revisions to estimates |   |   | -      |   |   |   | (3 | ) |
| Balance on December 31, |   | $      | 1,390  |   |   | $      | 1,315 |   |

----

|      |   | Years ended December 31, |   |
|-----------|--------|--------------------------|--------|
|      |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Current:  |   |                     |   |   |   |   |   |   |   |
| Federal   |   | $                        | (350   | ) |   | $ | (649 | ) |   | $ | (1,349 | ) |
| State     |   |                     | 721    |   |   |   | (631 | ) |   |   | (340 | ) |
|      |   |                     | 371    |   |   |   | (1,280 | ) |   |   | (1,689 | ) |
| Deferred: |   |                     |   |   |   |   |   |   |   |   |   |   |
| Federal   |   |                     | 3,688  |   |   |   | (1,286 | ) |   |   | 6,199 |   |
| State     |   |                     | 11     |   |   |   | 214 |   |   |   | 476 |   |
|      |   | $                        | 4,070  |   |   | $ | (2,352 | ) |   | $ | 4,986 |   |

|                                             |   | Years ended December 31, |   |
|--------------------------------------------------|--------|--------------------------|--------|
|                                             |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Statutory federal income tax (provision) benefit |   | $                        | (4,445 | ) |   | $ | (2,275 | ) |   | $ | 3,696 |   |
| State income tax (provision) benefit             |   |                     | (476   | ) |   |   | (270 | ) |   |   | 88 |   |
| Federal statutory depletion                      |   |                     | 534    |   |   |   | 186 |   |   |   | 797 |   |
| Domestic production deduction                    |   |                     | -      |   |   |   | - |   |   |   | 62 |   |
| Foreign investment write-off                     |   |                     | 201    |   |   |   | - |   |   |   | - |   |
| Reduction of prior uncertain tax position        |   |                     | -      |   |   |   | - |   |   |   | 320 |   |
| Other                                            |   |                     | 116    |   |   |   | 7 |   |   |   | 23 |   |
|                                             |   | $                        | (4,070 | ) |   | $ | (2,352 | ) |   | $ | 4,986 |   |

----

|                                                    |   | Years Ended December 31, |   |
|---------------------------------------------------------|--------|--------------------------|--------|
|                                                    |   | 2010                     |   |   | 2009 |   |
| Current deferred tax asset (liability)                  |   |                     |   |   |   |   |
| Bad debts                                               |   | $                        | 372    |   |   | $ | 421 |   |
| Prepaid insurance                                       |   |                     | (776   | ) |   |   | (1,070 | ) |
| Mark-to-market contracts                                |   |                     | (450   | ) |   |   | (88 | ) |
|                                                    |   |                     |   |   |   |   |   |   |
| Net current deferred tax (liability)                    |   |                     | (854   | ) |   |   | (737 | ) |
|                                                    |   |                     |   |   |   |   |   |   |
| Long-term deferred tax asset (liability)                |   |                     |   |   |   |   |   |   |
| Property                                                |   |                     | (2,885 | ) |   |   | 884 |   |
| Uniform capitalization                                  |   |                     | 396    |   |   |   | 322 |   |
| Insurance returns                                       |   |                     | (45    | ) |   |   | (166 | ) |
| Other                                                   |   |                     | 243    |   |   |   | 250 |   |
| Net long-term deferred tax  asset (liability) |   |                     | (2,291 | ) |   |   | 1,290 |   |
|                                                    |   |                     |   |   |   |   |   |   |
| Net deferred tax asset (liability)                      |   | $                        | (3,145 | ) |   | $ | 553 |   |

|                                       |   | 2010   |   |   | 2009   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance as of January 1,                   |   | $      | 72     |   |   | $      | 63 |   |
| Additions for tax positions of prior years |   |   | -      |   |   |   | 9 |   |
| Reductions of prior positions              |   |   | (53    | )      |   |   | - |   |
| Balance as of December 31,                 |   | $      | 19     |   |   | $      | 72 |   |

|      | Earliest Open |
|-----------|---------------|
|      | Tax Year      |
|      |          |
| Federal   | 2007          |
| Texas     | 2006          |
| Louisiana | 2007          |
| Michigan  | 2007          |

----

|                                       |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance, beginning of year                 |   | $      | 1,681  |   |   | $      | 1,251  |   |   | $ | 192 |   |
| Provisions for bad debts                   |   |   | 29     |   |   |   | 704    |   |   |   | 1,099 |   |
| Less:  Write-offs and recoveries |   |   | (646   | )      |   |   | (274   | )      |   |   | (40 | ) |
| Balance, end of year                       |   | $      | 1,064  |   |   | $      | 1,681  |   |   | $ | 1,251 |   |

----

----

|                      |   | 2011 |   |   | 2012   |   |   | 2013   |   |   | Thereafter |   |   | Total |   |
|---------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|-------|--------|
| Equipment residual values |   | $    | 181    |   |   | $      | 72     |   |   | $      | 216        |   |   | $     | -      |   |   | $ | 469 |   |

|                      |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014 |   |   | Thereafter |   |   | Total  |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|------------|--------|--------|--------|--------|
| Lease payments            |   | $      | 186    |   |   | $      | 56     |   |   | $      | 47   |   |   |       | -      |   |   |   | - |   |   |   | 289 |   |
| Equipment residual values |   |   | 181    |   |   |   | 72     |   |   |   | 216  |   |   |       | -      |   |   |   | - |   |   |   | 469 |   |
| Commodity purchases       |   |   | 49,411 |   |   |   | -      |   |   |   | -    |   |   |       | -      |   |   |   | - |   |   |   | 49,411 |   |
| Letters of credit         |   |   | 23,912 |   |   |   | -      |   |   |   | -    |   |   |       | -      |   |   |   | - |   |   |   | 23,912 |   |
|                      |   | $      | 73,690 |   |   | $      | 128    |   |   | $      | 263  |   |   | $          | -      |   |   | $      | - |   |   | $ | 74,081 |   |

----

|                          |   |     |      |   | Segment Operating |   |   | Depreciation Depletion and |   |   | Property and Equipment |   |
|-------------------------------|--------|----------|-----------|--------|-------------------|--------|--------|----------------------------|--------|--------|------------------------|--------|
|                          |   | Revenues |      |   | Earnings (loss)   |   |   | Amortization               |   |   | Additions              |   |
| Year ended December 31, 2010- |   |     |      |   |              |   |   |                       |   |   |                   |   |
| Marketing                     |   |     |      |   |              |   |   |                       |   |   |                   |   |
| - Crude oil                   |   | $        | 2,005,301 |   |              | $      | 13,530 |                       |   | $      | 2,320                  |   |   | $ | 6,051 |   |
| - Natural gas                 |   |     | 10,592    |   |              |   | 3,073  |                       |   |   | 44                     |   |   |   | 115 |   |
| - Refined products            |   |     | 128,189   |   |              |   | 121    |                       |   |   | 503                    |   |   |   | 146 |   |
| Marketing Total               |   |     | 2,144,082 |   |              |   | 16,724 |                       |   |   | 2,867                  |   |   |   | 6,312 |   |
| Transportation                |   |     | 56,867    |   |              |   | 6,623  |                       |   |   | 4,288                  |   |   |   | 4,410 |   |
| Oil and gas                   |   |     | 11,021    |   |              |   | (1,757 | )                          |   |   | 4,662                  |   |   |   | 11,699 |   |
|                          |   | $        | 2,211,970 |   |              | $      | 21,590 |                       |   | $      | 11,817                 |   |   | $ | 22,421 |   |
| Year ended December 31, 2009- |   |     |      |   |              |   |   |                       |   |   |                   |   |   |   |   |   |
| Marketing                     |   |     |      |   |              |   |   |                       |   |   |                   |   |   |   |   |   |
| - Crude oil                   |   | $        | 1,770,600 |   |              | $      | 15,404 |                       |   | $      | 1,997                  |   |   | $ | 1,947 |   |
| - Natural gas                 |   |     | 14,232    |   |              |   | 2,749  |                       |   |   | 166                    |   |   |   | - |   |
| - Refined products            |   |     | 104,751   |   |              |   | (666   | )                          |   |   | 533                    |   |   |   | 177 |   |
| Marketing Total               |   |     | 1,889,583 |   |              |   | 17,487 |                       |   |   | 2,696                  |   |   |   | 2,124 |   |
| Transportation                |   |     | 44,895    |   |              |   | 2,128  |                       |   |   | 3,970                  |   |   |   | 7,524 |   |
| Oil and gas                   |   |     | 8,650     |   |              |   | (3,625 | )                          |   |   | 3,654                  |   |   |   | 12,742 |   |
|                          |   | $        | 1,943,128 |   |              | $      | 15,990 |                       |   | $      | 10,320                 |   |   | $ | 22,390 |   |
| Year ended December 31, 2008- |   |     |      |   |              |   |   |                       |   |   |                   |   |   |   |   |   |
| Marketing                     |   |     |      |   |              |   |   |                       |   |   |                   |   |   |   |   |   |
| - Crude oil                   |   | $        | 3,849,531 |   |              | $      | (4,545 | )                          |   | $      | 2,039                  |   |   | $ | 4,715 |   |
| - Natural gas                 |   |     | 11,586    |   |              |   | 2,247  |                       |   |   | 163                    |   |   |   | 12 |   |
| - Refined products            |   |     | 213,560   |   |              |   | (406   | )                          |   |   | 565                    |   |   |   | 114 |   |
| Marketing Total               |   |     | 4,074,677 |   |              |   | (2,704 | )                          |   |   | 2,767                  |   |   |   | 4,841 |   |
| Transportation                |   |     | 67,747    |   |              |   | 4,245  |                       |   |   | 3,843                  |   |   |   | 809 |   |
| Oil and gas                   |   |     | 17,248    |   |              |   | (3,348 | )                          |   |   | 6,763                  |   |   |   | 12,038 |   |
|                          |   | $        | 4,159,672 |   |              | $      | (1,807 | )                          |   | $      | 13,373                 |   |   | $ | 17,688 |   |

|   | Intersegment sales are insignificant and all sales by the Company occurred in the United States. |
|--------|--------------------------------------------------------------------------------------------------|

|                                  |   | Years Ended December 31, |   |
|---------------------------------------|--------|--------------------------|--------|
|                                  |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Segment operating earnings (loss)     |   | $                        | 21,590 |   |   | $ | 15,990 |   |   | $ | (1,807 | ) |
| - General and administrative expenses |   |                     | (9,044 | ) |   |   | (9,589 | ) |   |   | (9,667 | ) |
| Operating earnings                    |   |                     | 12,546 |   |   |   | 6,401 |   |   |   | (11,474 | ) |
| - Interest income                     |   |                     | 191    |   |   |   | 125 |   |   |   | 1,103 |   |
| - Interest expense                    |   |                     | (36    | ) |   |   | (25 | ) |   |   | (187 | ) |
| Earnings (loss) before income taxes   |   | $                        | 12,701 |   |   | $ | 6,501 |   |   | $ | (10,558 | ) |

----

|               |   | Years Ended December 31, |    |
|--------------------|--------|--------------------------|---------|
|               |   | 2010                     |    |   | 2009 |   |
| Marketing          |   |                     |    |   |   |   |
| - Crude oil        |   | $                        | 184,299 |   |   | $ | 130,840 |   |
| - Natural gas      |   |                     | 19,948  |   |   |   | 40,715 |   |
| - Refined products |   |                     | 11,594  |   |   |   | 10,133 |   |
| Marketing Total    |   |                     | 215,841 |   |   |   | 181,688 |   |
| Transportation     |   |                     | 17,378  |   |   |   | 16,078 |   |
| Oil and gas        |   |                     | 32,563  |   |   |   | 26,050 |   |
| Other              |   |                     | 35,523  |   |   |   | 25,585 |   |
|               |   | $                        | 301,305 |   |   | $ | 249,401 |   |

|         |   |   |     |      |   |            |   |   | Net Earnings (loss) |   |   | Dividends |   |
|--------------|--------|--------|----------|-----------|--------|-----------------|--------|--------|---------------------|--------|--------|-----------|--------|
|         |   |   |     |      |   | Operating       |   |   |                |   |   | Per       |   |   |   |   |   | Per |   |
|         |   |   | Revenues |      |   | Earnings (loss) |   |   | Amount              |   |   | Share     |   |   | Amount |   |   | Share |   |
|         | 2010 - |   |     |      |   |            |   |   |                |   |   |      |   |   |   |   |   |   |   |   |
| March 31     |   |   | $        | 533,785   |   |            | $      | 2,575  |                |   | $      | 1,794     |   |   | $ | .43 |   |   | $ | - |   |   | $ | - |   |
| June 30      |   |   |     | 547,141   |   |            |   | 2,656  |                |   |   | 1,685     |   |   |   | .39 |   |   |   | - |   |   |   | - |   |
| September 30 |   |   |     | 502,455   |   |            |   | 4,021  |                |   |   | 2,762     |   |   |   | .66 |   |   |   | - |   |   |   | - |   |
| December 31  |   |   |     | 628,589   |   |            |   | 3,294  |                |   |   | 2,390     |   |   |   | .57 |   |   |   | 2,277 |   |   |   | .54 |   |
| Total        |   |   | $        | 2,211,970 |   |            | $      | 12,546 |                |   | $      | 8,631     |   |   | $ | 2.05 |   |   | $ | 2,277 |   |   | $ | .54 |   |
|         |   |   |     |      |   |            |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         | 2009 - |   |     |      |   |            |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31     |   |   | $        | 340,141   |   |            | $      | 2,800  |                |   | $      | 1,870     |   |   | $ | .44 |   |   | $ | - |   |   | $ | - |   |
| June 30      |   |   |     | 515,070   |   |            |   | 4,328  |                |   |   | 2,734     |   |   |   | .65 |   |   |   | - |   |   |   | - |   |
| September 30 |   |   |     | 576,299   |   |            |   | 1,146  |                |   |   | 639       |   |   |   | .15 |   |   |   | - |   |   |   | - |   |
| December 31  |   |   |     | 511,618   |   |            |   | (1,873 | )                   |   |   | (1,094    | )      |   |   | (.26 | ) |   |   | 2,109 |   |   |   | .50 |   |
| Total        |   |   | $        | 1,943,128 |   |            | $      | 6,401  |                |   | $      | 4,149     |   |   | $ | .98 |   |   | $ | 2,109 |   |   | $ | .50 |   |

| Note: | The fourth quarter 2009 operating loss resulted from $833,000 of oil and gas producing property impairments and a $550,000 bad debt provision within the Company’s refined products segment. The full year 2010 and 2009 includes marketing segment pre-tax inventory liquidation gains totaling $2,272,000 and $5,780,000, respectively. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   | Years Ended December 31, |   |
|----------------------------|--------|--------------------------|--------|
|                       |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Property acquisition costs |   |                     |   |   |   |   |   |   |   |
| Unproved                   |   | $                        | 2,295  |   |   | $ | 6,199 |   |   | $ | 3,139 |   |
| Proved                     |   |                     | -      |   |   |   | - |   |   |   | - |   |
| Exploration costs          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Expensed                   |   |                     | 3,233  |   |   |   | 3,818 |   |   |   | 6,030 |   |
| Capitalized                |   |                     | -      |   |   |   | 1,035 |   |   |   | 178 |   |
| Development costs          |   |                     | 6,233  |   |   |   | 2,341 |   |   |   | 3,466 |   |
| Total costs incurred       |   | $                        | 11,761 |   |   | $ | 13,393 |   |   | $ | 12,813 |   |

|                                |   | December 31, |    |
|-------------------------------------|--------|--------------|---------|
|                                |   | 2010         |    |   | 2009 |   |
| Unproved oil and gas properties     |   | $            | 12,250  |   |   | $ | 9,385 |   |
| Proved oil and gas properties       |   |         | 69,011  |   |   |   | 64,458 |   |
|                                |   |         | 81,261  |   |   |   | 73,843 |   |
| Accumulated depreciation, depletion |   |         |    |   |   |   |   |   |
| and amortization                    |   |         | (51,857 | ) |   |   | (49,797 | ) |
| Net capitalized cost                |   | $            | 29,404  |   |   | $ | 24,046 |   |

|                            |   | Years Ended December 31, |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                            |   | Natural                  |   |   |   |   |   | Natural |   |   |   |   |   | Natural |   |   |   |   |
|                            |   | Gas                      |   |   | Oil |   |   | Gas |   |   | Oil |   |   | Gas |   |   | Oil |   |
|                            |   | (Mcf’s)            |   |   | (Bbls.) |   |   | (Mcf’s) |   |   | (Bbls.) |   |   | (Mcf’s) |   |   | (Bbls.) |   |
| Total proved reserves-          |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning of year               |   |                     | 7,248  |   |   |   | 242 |   |   |   | 6,443 |   |   |   | 230 |   |   |   | 7,068 |   |   |   | 297 |   |
| Revisions of previous estimates |   |                     | (832   | ) |   |   | - |   |   |   | (129 | ) |   |   | (4 | ) |   |   | (1,350 | ) |   |   | (83 | ) |
| Oil and gas reserves sold       |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Extensions, discoveries and     |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other reserve additions         |   |                     | 2,743  |   |   |   | 79 |   |   |   | 2,238 |   |   |   | 66 |   |   |   | 1,968 |   |   |   | 67 |   |
| Production                      |   |                     | (1,365 | ) |   |   | (54 | ) |   |   | (1,304 | ) |   |   | (50 | ) |   |   | (1,243 | ) |   |   | (51 | ) |
| End of year                     |   |                     | 7,794  |   |   |   | 267 |   |   |   | 7,248 |   |   |   | 242 |   |   |   | 6,443 |   |   |   | 230 |   |

|                        |   | Years Ended December 31, |   |
|-----------------------------|--------|--------------------------|--------|
|                        |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                        |   | Natural                  |   |   |   |   |   | Natural |   |   |   |   |   | Natural |   |   |   |   |
|                        |   | Gas                      |   |   | Oil |   |   | Gas |   |   | Oil |   |   | Gas |   |   | Oil |   |
|                        |   | (Mcf’s)            |   |   | (Bbls.) |   |   | (Mcf’s) |   |   | (Bbls.) |   |   | (Mcf’s) |   |   | (Bbls.) |   |
| Proved developed reserves   |   |                     | 7,134  |   |   |   | 240 |   |   |   | 6,295 |   |   |   | 242 |   |   |   | 6,443 |   |   |   | 230 |   |
| Proved undeveloped reserves |   |                     | 660    |   |   |   | 27 |   |   |   | 953 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total proved reserves       |   |                     | 7,794  |   |   |   | 267 |   |   |   | 7,248 |   |   |   | 242 |   |   |   | 6,443 |   |   |   | 230 |   |

----

|                                      |   | Years Ended December 31, |    |
|-------------------------------------------|--------|--------------------------|---------|
|                                      |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
| Future gross revenues                     |   | $                        | 61,311  |   |   | $ | 43,498 |   |   | $ | 45,081 |   |
| Future costs -                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Lease operating expenses                  |   |                     | (17,288 | ) |   |   | (15,969 | ) |   |   | (14,080 | ) |
| Development costs                         |   |                     | (1,596  | ) |   |   | (2,495 | ) |   |   | (816 | ) |
| Future net cash flows before income taxes |   |                     | 42,427  |   |   |   | 25,034 |   |   |   | 30,185 |   |
| Discount at 10% per annum                 |   |                     | (16,777 | ) |   |   | (10,719 | ) |   |   | (12,421 | ) |
| Discounted future net cash flows          |   |                     |    |   |   |   |   |   |   |   |   |   |
| before income taxes                       |   |                     | 25,650  |   |   |   | 14,315 |   |   |   | 17,764 |   |
| Future income taxes, net of discount at   |   |                     |    |   |   |   |   |   |   |   |   |   |
| 10% per annum                             |   |                     | (8,978  | ) |   |   | (5,010 | ) |   |   | (6,217 | ) |
| Standardized measure of discounted        |   |                     |    |   |   |   |   |   |   |   |   |   |
| future net cash flows                     |   | $                        | 16,672  |   |   | $ | 9,305 |   |   | $ | 11,547 |   |

|                                      |   | Years ended December 31, |    |
|-------------------------------------------|--------|--------------------------|---------|
|                                      |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
| Future net cash flows before income taxes |   | $                        | 42,427  |   |   | $ | 25,034 |   |   | $ | 30,185 |   |
| Future income taxes                       |   |                     | (14,849 | ) |   |   | (8,762 | ) |   |   | (10,565 | ) |
| Future net cash flows                     |   |                     | 27,578  |   |   |   | 16,272 |   |   |   | 19,620 |   |
| Discount at 10% per annum                 |   |                     | (10,906 | ) |   |   | (6,967 | ) |   |   | (8,073 | ) |
| Standardized measure of discounted        |   |                     |    |   |   |   |   |   |   |   |   |   |
| future net cash flows                     |   | $                        | 16,672  |   |   | $ | 9,305 |   |   | $ | 11,547 |   |

|                                                   |   | Years Ended December 31, |   |
|--------------------------------------------------------|--------|--------------------------|--------|
|                                                   |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Beginning of year                                      |   | $                        | 9,305  |   |   | $ | 11,547 |   |   | $ | 19,590 |   |
| Sale of oil and gas reserves                           |   |                     | -      |   |   |   | - |   |   |   | - |   |
| Net change in prices and production costs              |   |                     | 9,435  |   |   |   | (4,890 | ) |   |   | (10,041 | ) |
| New field discoveries and extensions, net of future    |   |                     |   |   |   |   |   |   |   |   |   |   |
| production costs                                       |   |                     | 9,068  |   |   |   | 3,471 |   |   |   | 11,571 |   |
| Sales of oil and gas produced, net of production costs |   |                     | (7,084 | ) |   |   | (5,114 | ) |   |   | (12,523 | ) |
| Net change due to revisions in quantity estimates      |   |                     | (1,369 | ) |   |   | (347 | ) |   |   | (6,293 | ) |
| Accretion of discount                                  |   |                     | 1,072  |   |   |   | 1,242 |   |   |   | 2,234 |   |
| Production rate changes and other                      |   |                     | 213    |   |   |   | 2,189 |   |   |   | 2,679 |   |
| Net change in income taxes                             |   |                     | (3,968 | ) |   |   | 1,207 |   |   |   | 4,330 |   |
| End of year                                            |   | $                        | 16,672 |   |   | $ | 9,305 |   |   | $ | 11,547 |   |

----

|                                        |   | Years Ended December 31, |   |
|---------------------------------------------|--------|--------------------------|--------|
|                                        |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Revenues                                    |   | $                        | 11,021 |   |   | $ | 8,650 |   |   | $ | 17,248 |   |
| Costs and expenses -                        |   |                     |   |   |   |   |   |   |   |   |   |   |
| Production                                  |   |                     | (3,937 | ) |   |   | (3,536 | ) |   |   | (4,725 | ) |
| Producing property impairment               |   |                     | (946   | ) |   |   | (1,350 | ) |   |   | (3,078 | ) |
| Exploration                                 |   |                     | (3,233 | ) |   |   | (3,735 | ) |   |   | (6,030 | ) |
| Depreciation, depletion and amortization    |   |                     | (4,662 | ) |   |   | (3,654 | ) |   |   | (6,763 | ) |
| Operating income (loss) before income taxes |   |                     | (1,757 | ) |   |   | (3,625 | ) |   |   | (3,348 | ) |
| Income tax (expense) benefit                |   |                     | 615    |   |   |   | 1,268 |   |   |   | 1,172 |   |
| Operating income (loss)                     |   | $                        | (1,142 | ) |   | $ | (2,357 | ) |   | $ | (2,176 | ) |

| Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------|--------------------------------------------------------------------------------------|

----

----

| Item 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------|--------------------------------------------------------|

| Item 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

| Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------|------------------------------------------------------------------------------------------------|

| Item 13. | CERTAIN RELATIONSHIPS, RELATED PARTY TRANSACTIONS AND DIRECTOR INDEPENDENCE |
|----------|-----------------------------------------------------------------------------|

| Item 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
|----------|----------------------------------------|

----

| Item 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
|----------|--------------------------------------------|

| 2.   | All financial schedules have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Exhibits required to be filed |
|----------------|-------------------------------|

| 3(a) | - | Certificate of Incorporation of the Company, as amended.  (Incorporated by reference to Exhibit 3(a) filed with the Annual Report on Form 10-K (-File No. 1-7908) of the Company for the fiscal year ended December 31, 1987) |
|------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3(b) | - | Bylaws of the Company, as amended (Incorporated by reference to Exhibits 3.2 and 3.2.1 of Amendment No. 1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on October 29, 1973 - File No. 2-48144) |
|------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3(c) | - | Amendment to the Bylaws of the Company to add an Article VII, Section 8. Indemnification of Directors, Officers, Employees and Agents (Incorporated by reference to Exhibit 3(c) of the Annual Report on Form 10-K (-File No. 1-7908) of the Company for the fiscal year ended December 31, 1986) |
|------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3(d) | - | Adams Resources & Energy, Inc. and Subsidiaries’ Code of Ethics (Incorporated by reference to Exhibit 3(d) of the Annual Report on Form 10-K (-File No. 1-7908) of the Company for the fiscal year ended December 31, 2002) |
|------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4(a) | - | Specimen common stock Certificate (Incorporated by reference to Exhibit 4(a) of the Annual Report on Form 10-K of the Company (-File No. 1-7908) for the fiscal year ended December 31, 1991) |
|------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4(b) | - | Credit and Security Agreement between Gulfmark Energy, Inc., Adams Resources Marketing, Ltd and Wells Fargo Bank, National Association dated August 27, 2009 (Incorporated by reference to Exhibit 4(b) of the Quarterly Report on Form 10-Q for the period ended September 30, 2009. |
|------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1(a) | -  Employment agreement of Frank T. Webster, President, dated May 4, 2004 by and between Adams Resources & Energy, Inc. and Frank T. Webster (Incorporated by reference to Exhibit 10.1 to the Company’s quarterly report on Form 10-Q filed on November 11, 2004) |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1(b)* | -  Amendment to Employment Agreement of Frank T. Webster, President, dated December 6, 2010 by and between Adams Resources & Energy, Inc. and Frank T. Webster. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1(c) | -  Change in control/severance agreement dated July 25, 2008 by and between Adams Resources & Energy, Inc. and Richard B. Abshire (Incorporated by reference to Exhibit 10.1 to the Company’s current report on Form 8-K filed on July 25, 2008) |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21* | - | Subsidiaries of the Registrant |
|-----|---|--------------------------------|

| 23.1* | - | Consent of Ryder Scott Company |
|-------|---|--------------------------------|

| 31.1* | - | Adams Resources & Energy, Inc. Certification Pursuant to 17 CFR 13a-14 (a)/15d-14(a), As adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|-------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2* | - | Adams Resources & Energy, Inc. Certification Pursuant to 17 CFR 13a-14(a)/15d-14(a),  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|-------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1* | - | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|-------|---|------------------------------------------------------------------------------------------------------------------------|

| 32.2* | - | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|-------|---|------------------------------------------------------------------------------------------------------------------------|

| 99.1* | - | Ryder Scott Company Report |
|-------|---|----------------------------|

|   | ______________________________ |
|--------|--------------------------------|

|   | *  - Filed herewith |
|--------|-------------------------------|

----

|                                       | ADAMS RESOURCES & ENERGY, INC. |
|--------------------------------------------|------------------------------------|
|                                       | (Registrant)                       |
|                                       |                               |
|                                       |                               |
| By  /s/Richard B. Abshire        | By /s/ K. S. Adams, Jr.            |
| Richard B. Abshire,                        | K. S. Adams, Jr.,                  |
| Vice President and Chief Financial Officer | Chairman of the Board and          |
| (Principal Financial Officer)              | Chief Executive Officer            |
|                                       | (Principal Executive Officer       |

| By /s/ Frank T. Webster    | By /s/ E. C. Reinauer, Jr.     |
|----------------------------|--------------------------------|
| Frank T. Webster, Director | E. C. Reinauer, Jr., Director  |
|                       |                           |
|                       |                           |
|                       |                           |
| By /s/ Larry E. Bell       | By /s/ E. Jack Webster, Jr.    |
| Larry E. Bell, Director    | E. Jack Webster, Jr., Director |
|                       |                           |

----

| Exhibit                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number                                                           | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3(a)                                                             | -      Certificate of Incorporation of the Company, as amended.  (Incorporated by reference to Exhibit 3(a) filed with the Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 1987)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3(b)                                                             | -      Bylaws of the Company, as amended (Incorporated by reference to Exhibits 3.2 and 3.2.1 of Amendment No. 1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on October 29, 1973 – File No. 2-48144)                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3(c)                                                             | -      Amendment to the Bylaws of the Company to add an Article VII, Section 8. Indemnification of Directors, Officers, Employees and Agents (Incorporated by reference to Exhibit 3(c) of the Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 1986)                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3(d)                                                             | -      Adams Resources & Energy, Inc. and Subsidiaries’ Code of Ethics (Incorporated by reference to Exhibit 3(d) of the Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 2002)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4(a)                                                             | -      Specimen common stock Certificate (Incorporated by reference to Exhibit 4(a) of the Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 1991)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4(b)                                                             | -     Credit and Security Agreement between Gulfmark Energy, Inc., Adams Resources Marketing, Ltd and Wells Fargo Bank, National Association dated August 27, 2010 (Incorporated by reference to Exhibit 4(b) of the Quarterly Report on Form 10-Q for the period ended September 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.1(a)   10.1(b)*  10.1(c)   | -  Employment agreement of Frank T. Webster, President, dated May 4, 2004 by and between Adams Resources & Energy, Inc. and Frank T. Webster (Incorporated by reference to Exhibit 10.1 to the Company’s quarterly report on Form 10-Q filed on November 11, 2004) -  Amendment to Employment Agreement of Frank T. Webster, President, dated December 6, 2010 by and between Adams Resources & Energy, Inc. and Frank T. Webster. -  Change in control/severance agreement dated July 25, 2008 by and between Adams Resources & Energy, Inc. and Richard B. Abshire (Incorporated by reference to Exhibit 10.1 to the Company’s current report on Form 8-K filed on July 25, 2008) |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 21*                                                              | -      Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 23.1*                                                            | -      Consent of Ryder Scott Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 31.1*                                                            | -      Certification Pursuant to 17 CFR 13a-14(a)/15d-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 31.2*                                                            | -      Certification Pursuant to 17 CFR 13a-14(a)/15d-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 32.1*                                                            | -     Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 32.2*                                                            | -     Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 99.1*                                                            | -     Ryder Scott Company Report                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

|   | ______________________________ |
|--------|--------------------------------|

|   | * - Filed herewith |
|--------|--------------------|

----