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

|   | For                the Fiscal Year ended December 31,                2005 |
|--------|---------------------------------------------------------------------------|

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

**ADAMS      RESOURCES & ENERGY, INC.**

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

**      (713) 881-3600**

**Securities      registered pursuant to Section 12(b) of the Act: None**

| Title                of each class              | Name                of each exchange on which registered |
|-------------------------------------------------|----------------------------------------------------------|
| **Common                Stock, $.10 Par Value** | **American                Stock Exchange**               |

**DOCUMENTS      INCORPORATED BY REFERENCE**

----

----

----

|      |   | Oil                Wells |   | Gas                Wells |   | Total                Wells |   |
|-----------|--------|--------------------------|--------|--------------------------|--------|----------------------------|--------|
|      |   | Gross                    |   | Net                      |   | Gross                      |   | Net |   | Gross |   | Net |   |
| Texas     |   |                     | 63     |                     |   | 14.07                      |   |   | 60 |   |   | 4.80 |   |   | 123 |   |   | 18.87 |   |
| Louisiana |   |                     | 23     |                     |   | 1.13                       |   |   | 32 |   |   | 3.42 |   |   | 55 |   |   | 4.55 |   |
| Other     |   |                     | 78     |                     |   | 1.57                       |   |   | 42 |   |   | 6.46 |   |   | 120 |   |   | 8.03 |   |
|      |   |                     | 164    |                     |   | 16.77                      |   |   | 134 |   |   | 14.68 |   |   | 298 |   |   | 31.45 |   |

|      |   | Developed                Acreage |   | Undeveloped                Acreage |   |
|-----------|--------|----------------------------------|--------|------------------------------------|--------|
|      |   | Gross                            |   | Net                                |   | Gross |   | Net |   |
| Texas     |   |                             | 63,249 |                               |   | 11,406 |   |   | 91,246 |   |   | 10,409 |   |
| Louisiana |   |                             | 7,612  |                               |   | 560 |   |   | 6,282 |   |   | 320 |   |
| Other     |   |                             | 3,862  |                               |   | 708 |   |   | 15,353 |   |   | 1,829 |   |
|      |   |                             | 74,723 |                               |   | 12,674 |   |   | 112,881 |   |   | 12,558 |   |

|                                     |   | 2005   |   | 2004   |   | 2003   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                     |   | Gross  |   | Net    |   | Gross  |   | Net |   | Gross |   | Net |   |
| Exploratory                wells drilled |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| -                Productive              |   |   | 4      |   |   | .33    |   |   | 12 |   |   | .59 |   |   | 7 |   |   | .49 |   |
| -                Dry                     |   |   | 6      |   |   | .58    |   |   | 6 |   |   | .44 |   |   | 11 |   |   | 1.03 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Development                wells drilled |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| -                Productive              |   |   | 20     |   |   | 1.12   |   |   | 8 |   |   | .42 |   |   | 16 |   |   | 1.42 |   |
| -                Dry                     |   |   | 5      |   |   | .44    |   |   | 1 |   |   | .01 |   |   | 1 |   |   | .20 |   |

|                                                     |   | December                31, |   |
|----------------------------------------------------------|--------|-----------------------------|--------|
|                                                     |   | 2005                        |   | 2004 |   | 2003 |   |
| Crude                oil (barrels)                       |   |                        | 396    |   |   | 436 |   |   | 438 |   |
| Natural                gas (mcf)                         |   |                        | 9,643  |   |   | 10,950 |   |   | 8,971 |   |
| Standardized                measure of discounted future |   |                        |   |   |   |   |   |   |   |   |
| net                cash flows from oil and gas reserves  |   | $                           | 29,960 |   | $ | 22,797 |   | $ | 18,371 |   |

----

| Years                Ended  |   | Crude                Oil |   | Natural                  |   |
|-----------------------------|--------|--------------------------|--------|--------------------------|--------|
| December                31, |   | (barrels)                |   | Gas                (mcf) |   |
| 2005                        |   |                     | 66,600 |                     |   | 1,388,000 |   |
| 2004                        |   |                     | 71,300 |                     |   | 1,309,000 |   |
| 2003                        |   |                     | 61,900 |                     |   | 1,239,000 |   |

|                                                   |   | Years                Ended December 31, |   |
|--------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                   |   | 2005                                    |   | 2004 |   | 2003 |   |
| Average                oil and condensate              |   |                                    |   |   |   |   |   |   |   |   |
| Sales                price per barrel                  |   | $                                       | 54.76  |   | $ | 39.48 |   | $ | 30.67 |   |
| Average                natural gas                     |   |                                    |   |   |   |   |   |   |   |   |
| Sales                price per mcf                     |   | $                                       | 8.43   |   | $ | 6.09 |   | $ | 5.23 |   |
| Average                production cost, per equivalent |   |                                    |   |   |   |   |   |   |   |   |
| barrel,                charged to expense              |   | $                                       | 9.48   |   | $ | 10.30 |   | $ | 8.48 |   |

|                                              |   | Crude                Oil |   | Natural                Gas |   |
|---------------------------------------------------|--------|--------------------------|--------|----------------------------|--------|
| Average                Annual Price for 2005      |   | $                        | 54.76  |                       | $      | 8.43 |   |
| Average                Price for December 2005    |   | $                        | 57.16  |                       | $      | 11.29 |   |
| Average                Price on December 31, 2005 |   | $                        | 57.45  |                       | $      | 9.12 |   |

----

| -   | 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. |
|---------------|---------------------------------------------------------------------------------|

----

----

----

*Fluctuations      in oil and gas prices could have an effect on the Company*

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

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

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

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

*Revenues      are generated under contracts that must be periodically      renegotiated.*

*Anticipated      or scheduled volumes will differ from actual or delivered      volumes.*

*Environmental      liabilities and environmental regulations may have an adverse effect on the      Company.*

----

*Counterparty      credit default could have an adverse effect on the Company.*

*The      Company’s business is dependent on the ability to obtain credit*

*Operations      could result in liabilities that may not be fully covered by      insurance*

*Changes      in tax laws or regulations could adversely affect the Company*

*The      Company’s business is subject to changing government      regulations*

----

*Estimating      reserves, production and future net cash flow is difficult*

*The      Company’s business is dependent on the ability to replace      reserves*

*Fluctuations      in commodity prices could have an adverse effect on the      Company.*

| ·   | regional,                domestic and international supply and                demand; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | availability                and adequacy of transportation                facilities; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | energy                legislation; |
|--------------------|------------------------------------|

| ·   | federal                and state taxes, if any, on the sale or transportation of natural                gas; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | abundance                of supplies of alternative energy sources; |
|--------------------|---------------------------------------------------------------------|

| ·   | political                unrest among oil producing countries; and |
|--------------------|--------------------------------------------------------------------|

| ·   | opposition                to energy development in environmentally sensitive                areas. |
|--------------------|----------------------------------------------------------------------------------------------------|

----

*Revenues      are dependent on the ability to successfully complete drilling      activity*

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

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

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

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

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

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

*Current      and future litigation could have an adverse effect on the      Company.*

*Le      Petit Chateau De Luxe, et. al. vs Great Southern Oil & Gas Co., et.      al.*

----

*The      Wall Street Journal*

|                          |   | American                Stock Exchange |   |
|-------------------------------|--------|----------------------------------------|--------|
|                          |   | High                                   |   | Low |   |
| 2004                          |   |                                   |   |   |   |   |   |
| First                Quarter  |   | $                                      | 13.95  |   | $ | 11.90 |   |
| Second                Quarter |   |                                   | 15.20  |   |   | 12.60 |   |
| Third                Quarter  |   |                                   | 15.74  |   |   | 12.50 |   |
| Fourth                Quarter |   |                                   | 18.95  |   |   | 13.30 |   |
|                          |   |                                   |   |   |   |   |   |
| 2005                          |   |                                   |   |   |   |   |   |
| First                Quarter  |   | $                                      | 25.55  |   | $ | 17.10 |   |
| Second                Quarter |   |                                   | 22.90  |   |   | 15.00 |   |
| Third                Quarter  |   |                                   | 23.99  |   |   | 18.20 |   |
| Fourth                Quarter |   |                                   | 23.45  |   |   | 18.60 |   |

----

**FIVE      YEAR REVIEW OF SELECTED FINANCIAL DATA**

|                                                |   | Years                Ended December 31,              |      |
|-----------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                                |   | 2005                                                 |      | 2004 |   | 2003 |   | 2002 |   | 2001 |   |
| Revenues:                                           |   | (In                thousands, except per share data) |
| Marketing                                           |   | $                                                    | 2,292,029 |   | $ | 2,010,968 |   | $ | 1,676,727 |   | $ | 1,725,042 |   | $ | 3,442,915 |   |
| Transportation                                      |   |                                                 | 57,458    |   |   | 47,323 |   |   | 35,806 |   |   | 36,406 |   |   | 33,149 |   |
| Oil                and gas                          |   |                                                 | 15,346    |   |   | 10,796 |   |   | 8,395 |   |   | 4,750 |   |   | 6,111 |   |
|                                                |   | $                                                    | 2,364,833 |   | $ | 2,069,087 |   | $ | 1,720,928 |   | $ | 1,766,198 |   | $ | 3,482,175 |   |
| Operating                Earnings:                  |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketing                                           |   | $                                                    | 22,481    |   | $ | 13,597 |   | $ | 12,117 |   | $ | 10,471 |   | $ | (9,320 | ) |
| Transportation                                      |   |                                                 | 5,714     |   |   | 5,687 |   |   | 973 |   |   | 2,142 |   |   | 1,053 |   |
| Oil                and gas                          |   |                                                 | 6,765     |   |   | 2,362 |   |   | 2,310 |   |   | (633 | ) |   | 693 |   |
| General                and administrative           |   |                                                 | (9,668    | ) |   | (7,867 | ) |   | (6,299 | ) |   | (7,259 | ) |   | (7,165 | ) |
|                                                |   |                                                 | 25,292    |   |   | 13,779 |   |   | 9,101 |   |   | 4,721 |   |   | (14,739 | ) |
| Other                income (expense):              |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                      |   |                                                 | 188       |   |   | 62 |   |   | 362 |   |   | 115 |   |   | 456 |   |
| Interest                expense                     |   |                                                 | (128      | ) |   | (107 | ) |   | (108 | ) |   | (117 | ) |   | (128 | ) |
| Earnings                (loss) from continuing      |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                before income taxes       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                cumulative effect of             |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accounting                change                    |   |                                                 | 25,352    |   |   | 13,734 |   |   | 9,355 |   |   | 4,719 |   |   | (14,411 | ) |
|                                                |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax provision (benefit)       |   |                                                 | 8,583     |   |   | 4,996 |   |   | 3,013 |   |   | 1,615 |   |   | (4,937 | ) |
|                                                |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) from continuing      |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                          |   |                                                 | 16,769    |   |   | 8,738 |   |   | 6,342 |   |   | 3,104 |   |   | (9,474 | ) |
| Earnings                (loss) from discontinued    |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations,                net of taxes             |   |                                                 | 872       |   |   | (130 | ) |   | (3,148 | ) |   | (1,652 | ) |   | 4,850 |   |
| Earnings                (loss) before cumulative    |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| effect                of accounting change          |   |                                                 | 17,641    |   |   | 8,608 |   |   | 3,194 |   |   | 1,452 |   |   | (4,624 | ) |
| Cumulative                effect of accounting      |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| change,                net of taxes                 |   |                                                 | -         |   |   | - |   |   | (92 | ) |   | - |   |   | 55 |   |
| Net                earnings (loss)                  |   | $                                                    | 17,641    |   | $ | 8,608 |   | $ | 3,102 |   | $ | 1,452 |   | $ | (4,569 | ) |
|                                                |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Earnings                (Loss) Per Share**        |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From                continuing operations           |   | $                                                    | 3.97      |   | $ | 2.07 |   | $ | 1.50 |   | $ | .73 |   | $ | (2.24 | ) |
| From                discontinued operations         |   |                                                 | .21       |   |   | (.03 | ) |   | (.74 | ) |   | (.39 | ) |   | 1.15 |   |
| Cumulative                effect of                 |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accounting                change                    |   |                                                 | -         |   |   | - |   |   | (.02 | ) |   | - |   |   | .01 |   |
| Basic                earnings (loss) per share      |   | $                                                    | 4.18      |   | $ | 2.04 |   | $ | .74 |   | $ | .34 |   | $ | (1.08 | ) |
|                                                |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                per common share           |   | $                                                    | .37       |   | $ | .30 |   | $ | .23 |   | $ | .13 |   | $ | .13 |   |
|                                                |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Financial                Position**               |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working                capital                      |   | $                                                    | 39,321    |   | $ | 35,789 |   | $ | 32,758 |   | $ | 30,628 |   | $ | 29,651 |   |
| Total                assets                         |   |                                                 | 312,662   |   |   | 238,854 |   |   | 210,607 |   |   | 202,120 |   |   | 227,027 |   |
| Long-term                debt, net of               |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| current                maturities    |   |                                                 | 11,475    |   |   | 11,475 |   |   | 11,475 |   |   | 11,475 |   |   | 12,475 |   |
| Shareholders’                equity           |   |                                                 | 65,656    |   |   | 49,575 |   |   | 42,232 |   |   | 40,100 |   |   | 39,196 |   |
| Dividends                on common shares           |   |                                                 | 1,560     |   |   | 1,265 |   |   | 970 |   |   | 548 |   |   | 548 |   |

| -   | In                2002, oil and gas operating earnings sustained a loss of $633,000.                This                loss includes $1.7 million in dry hole costs and property valuation                write-down. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | In                2001 marketing, operating earnings sustained a loss of $9,320,000.                This                loss includes $8 million in charges related to inventory price declines                and a $1.5 million bad debt provision in connection with the Enron                Corp.                bankruptcy. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Results      of Operations**

*Marketing*

|                              |   | 2005   |      | 2004   |   | 2003      |   |
|-----------------------------------|--------|--------|-----------|--------|--------|-----------|--------|
|                              |   |   |      |   |   |      |   |   |   |   |
| Revenues                          |   | $      | 2,292,029 |   | $      | 2,010,968 |   | $ | 1,676,727 |   |
|                              |   |   |      |   |   |      |   |   |   |   |
| Operating                earnings |   | $      | 22,481    |   | $      | 13,597    |   | $ | 12,117 |   |
|                              |   |   |      |   |   |      |   |   |   |   |
| Depreciation                      |   | $      | 1,252     |   | $      | 1,211     |   | $ | 896 |   |

|                                          |   | 2005   |                         | 2004   |   | 2003                         |   |
|-----------------------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                          |   |   |                         |   |   |                         |   |
| Wellhead                Purchases per day (1) |   |   |                         |   |   |                         |   |   |   |   |
| -                Crude Oil                    |   |   | 66,900                bbls   |   |   | 76,000                bbls   |   |   | 85,000                bbls |   |
| -                Natural Gas                  |   |   | 289,000                mmbtu |   |   | 294,000                mmbtu |   |   | 317,000                mmbtu |   |
|                                          |   |   |                         |   |   |                         |   |   |   |   |
| Average                Purchase Price         |   |   |                         |   |   |                         |   |   |   |   |
| -                Crude Oil                    |   | $      | 53.51/bbl                    |   | $      | 39.88/bbl                    |   | $ | 29.80/bbl |   |
| -                Natural Gas                  |   | $      | 7.98/mmbtu                   |   | $      | 5.75/mmbtu                   |   | $ | 5.28/mmbtu |   |

----

----

|   | - | *Transportation* |
|--------|---|------------------|

|                              |   | 2005   |   | 2004            |   | 2003   |   |
|-----------------------------------|--------|--------|--------|-----------------|--------|--------|--------|
|                              |   | Amount |   | Change(1)  |   | Amount |   | Change(1) |   | Amount |   | Change(1) |   |
|                              |   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                          |   | $      | 57,458 |            |   | 21     | %      | $ | 47,323 |   |   | 32 | % | $ | 35,806 |   |   | (2 | %) |
|                              |   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                earnings |   | $      | 5,714  |            |   | -      |   | $ | 5,687 |   |   | 484 | % | $ | 973 |   |   | (55 | %) |
|                              |   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                      |   | $      | 3,130  |            |   | 47     | %      | $ | 2,125 |   |   | 2 | % | $ | 2,093 |   |   | 14 | % |

*Oil      and Gas*

|                                      |   | 2005   |   | 2004   |   | 2003   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                      |   |   |   |   |   |   |   |   |   |   |
| Revenues                                  |   | $      | 15,346 |   | $      | 10,796 |   | $ | 8,395 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |
| Operating                earnings         |   |   | 6,765  |   |   | 2,362  |   |   | 2,310 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and depletion |   |   | 2,678  |   |   | 2,949  |   |   | 2,175 |   |

----

|                              |   | 2005   |                         | 2004   |   | 2003                         |   |
|-----------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|
|                              |   |   |                         |   |   |                         |   |   |   |   |
| Production                Volumes |   |   |                         |   |   |                         |   |   |   |   |
| -                Crude Oil        |   |   | 66,600                bbls   |   |   | 71,300                bbls   |   |   | 61,900                bbls |   |
| -                Natural Gas      |   |   | 1,388,000                mcf |   |   | 1,309,000                mcf |   |   | 1,239,000                mcf |   |
|                              |   |   |                         |   |   |                         |   |   |   |   |
| Average                Price      |   |   |                         |   |   |                         |   |   |   |   |
| -                Crude Oil        |   | $      | 54.76/bbl                    |   | $      | 39.48/bbl                    |   | $ | 30.67/bbl |   |
| -                Natural Gas      |   | $      | 8.43/mcf                     |   | $      | 6.09/mcf                     |   | $ | 5.23/mcf |   |

**Eaglewood/Tavener/Bella      Vista**

----

**Calcasieu      Parish**

**Southern      Alabama**

**Elm      Grove**

**East      Texas**

**Other**

**United      Kingdom North Sea**

----

| *-  * | *General                and administrative and income                tax* |
|-----------------|---------------------------------------------------------------------------|

| -   | *Discontinued                operations* |
|---------------|------------------------------------------|

*Outlook*

| -   | Maintain                marketing operating earnings at the $12 million                level. |
|---------------|-----------------------------------------------------------------------------------------------|

| -   | Increase                transportation operating earnings to the $6 million                level. |
|---------------|---------------------------------------------------------------------------------------------------|

| -   | Maintain                oil and gas operating earnings at the $6.5 million level and replace                110                percent of 2006 production with current reserve additions. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Liquidity      and Capital Resources**

**(in      thousands):**

|                                                          |   | Years                Ended December 31, |    |
|---------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                          |   | 2005                                    |    | 2004 |   | 2003 |   | Total |   |
|                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |
| Earnings                from continuing operations       |   | $                                       | 16,769  |   | $ | 8,738 |   | $ | 6,342 |   | $ | 31,849 |   |
|                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |
| Depreciation,                depletion and amortization  |   |                                    | 7,060   |   |   | 6,285 |   |   | 5,164 |   |   | 18,509 |   |
|                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |
| Property                and equipment additions          |   |                                    | (19,128 | ) |   | (12,161 | ) |   | (7,761 | ) |   | (39,050 | ) |
|                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |
| Cash                available for other uses             |   | $                                       | 4,701   |   | $ | 2,862 |   | $ | 3,745 |   | $ | 11,308 |   |

*Banking      Relationships*

----

*Off-balance      Sheet Arrangements*

*Contractual      Cash Obligations*

|                                      |   | 2006   |   | 2007   |   | 2008  |   | 2009   |   | 2010   |   | Thereafter |   | Total  |   |
|-------------------------------------------|--------|--------|--------|--------|--------|-------|--------|--------|--------|--------|--------|------------|--------|--------|--------|
| Long-term                debt             |   | $      | -      |   | $      | 1,434 |   | $      | 5,738  |   | $      | 4,303      |   | $      | -      |   | $ | - |   | $ | 11,475 |   |
| Interest                Rate Payments (1) |   |   | 4      |   |   | -     |   |   | -      |   |   | -          |   |   | -      |   |   | - |   |   | 4 |   |
| Operating                leases           |   |   | 4,388  |   |   | 4,239 |   |   | 4,039  |   |   | 1,717      |   |   | 727    |   |   | 300 |   |   | 15,410 |   |
| Total                                     |   | $      | 4,392  |   | $      | 5,673 |   | $      | 9,777  |   | $      | 6,020      |   | $      | 727    |   | $ | 300 |   | $ | 26,889 |   |

|                       |   | January |    | Remaining |   |   |   |   |   |       |   |   |   |
|----------------------------|--------|---------|---------|-----------|--------|--------|--------|--------|--------|------------|--------|--------|--------|
|                       |   | 2006    |    | 2006      |   | 2007   |   | 2008   |   | Thereafter |   | Total  |   |
| Crude                Oil   |   | $       | 252,066 |      | $      | 16,065 |   | $      | -      |       | $      | -      |   | $ | - |   | $ | 268,131 |   |
| Natural                Gas |   |    | 42,908  |      |   | 20,158 |   |   | 48     |       |   | -      |   |   | - |   |   | 63,114 |   |
|                       |   | $       | 294,974 |      | $      | 36,223 |   | $      | 48     |       | $      | -      |   | $ | - |   | $ | 331,245 |   |

----

*Investment      Activities*

*Insurance*

*Competition*

*Fair      Value Accounting*

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

----

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

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

*Trade      Accounts*

*Oil      and Gas Reserve Estimate*

----

*Contingencies*

*Revenue      Recognition*

*New      Accounting Pronouncements*

*Share-Based      Payment*

----

*Interest      Rate Risk*

*Commodity      Price Risk*

----

|                                                                 |   | 2005   |   |
|----------------------------------------------------------------------|--------|--------|--------|
| Net                fair value on January 1,                          |   | $      | 630    |   |
| Activity                during 2005                                  |   |   |   |   |
| -                Cash received from settled contracts                |   |   | (913   | ) |
| -                Net realized gain from prior years’ contracts |   |   | 283    |   |
| -                Net unrealized gain from current year contracts     |   |   | 1,781  |   |
| Net                fair value on December 31,                        |   | $      | 1,781  |   |

----

**ADAMS      RESOURCES & ENERGY, INC. AND SUBSIDIARIES**

**INDEX      TO FINANCIAL STATEMENTS**

|                                                                                     |   | Page   |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                     |   |   |   |
| REPORT                OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                   |   |   | 28     |   |
|                                                                                     |   |   |   |   |
| FINANCIAL                STATEMENTS:                                                     |   |   |   |   |
|                                                                                     |   |   |   |   |
| Consolidated                Balance Sheets as of December 31, 2005 and 2004              |   |   | 29     |   |
|                                                                                     |   |   |   |   |
| Consolidated                Statements of Operations for the Years Ended                 |   |   |   |   |
| December                31, 2005, 2004 and 2003                                          |   |   | 30     |   |
|                                                                                     |   |   |   |   |
| Consolidated                Statements of Shareholders’ Equity for the Years Ended |   |   |   |   |
| December                31, 2005, 2004 and 2003                                          |   |   | 31     |   |
|                                                                                     |   |   |   |   |
| Consolidated                Statements of Cash Flows for the Years Ended                 |   |   |   |   |
| December                31, 2005, 2004 and 2003                                          |   |   | 32     |   |
|                                                                                     |   |   |   |   |
| Notes                to Consolidated Financial Statements                                |   |   | 33     |   |

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

**ADAMS      RESOURCES & ENERGY, INC. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

**(In      thousands)**

|                                                                             |   | December                31, |    |
|----------------------------------------------------------------------------------|--------|-----------------------------|---------|
| ASSETS                                                                           |   | 2005                        |    | 2004 |   |
|                                                                             |   |                        |    |   |   |   |   |
| CURRENT                ASSETS:                                                   |   |                        |    |   |   |   |   |
| Cash                and cash equivalents                                    |   | $                           | 18,817  |   | $ | 19,942 |   |
| Accounts                receivable, net of allowance for doubtful accounts of    |   |                        |    |   |   |   |   |
| $608                and $384, respectively                                  |   |                        | 217,727 |   |   | 161,885 |   |
| Inventories                                                                 |   |                        | 11,692  |   |   | 11,372 |   |
| Risk                management receivables                                  |   |                        | 13,324  |   |   | 7,795 |   |
| Income                tax receivable                                        |   |                        | 1,304   |   |   | - |   |
| Prepayments                                                                 |   |                        | 7,586   |   |   | 8,345 |   |
|                                                                             |   |                        |    |   |   |   |   |
| Total                current assets                                         |   |                        | 270,450 |   |   | 209,339 |   |
|                                                                             |   |                        |    |   |   |   |   |
| PROPERTY                AND EQUIPMENT:                                           |   |                        |    |   |   |   |   |
| Marketing                                                                   |   |                        | 14,332  |   |   | 20,659 |   |
| Transportation                                                              |   |                        | 32,319  |   |   | 22,533 |   |
| Oil                and gas (successful efforts method)                      |   |                        | 52,111  |   |   | 45,390 |   |
| Other                                                                       |   |                        | 99      |   |   | 99 |   |
|                                                                             |   |                        | 98,861  |   |   | 88,681 |   |
|                                                                             |   |                        |    |   |   |   |   |
| Less                - Accumulated depreciation, depletion and amortization  |   |                        | (58,965 | ) |   | (59,605 | ) |
|                                                                             |   |                        | 39,896  |   |   | 29,076 |   |
| OTHER                ASSETS:                                                     |   |                        |    |   |   |   |   |
| Risk                management assets                                       |   |                        | 47      |   |   | - |   |
| Other                assets                                                 |   |                        | 2,269   |   |   | 439 |   |
|                                                                             |   | $                           | 312,662 |   | $ | 238,854 |   |
| LIABILITIES                AND SHAREHOLDERS’ EQUITY                        |   |                        |    |   |   |   |   |
|                                                                             |   |                        |    |   |   |   |   |
| CURRENT                LIABILITIES:                                              |   |                        |    |   |   |   |   |
| Accounts                payable                                             |   | $                           | 213,668 |   | $ | 160,387 |   |
| Risk                management payables                                     |   |                        | 11,542  |   |   | 7,165 |   |
| Accrued                and other liabilities                                |   |                        | 4,790   |   |   | 5,904 |   |
| Current                deferred income taxes                                |   |                        | 1,129   |   |   | 94 |   |
| Total                current liabilities                                    |   |                        | 231,129 |   |   | 173,550 |   |
|                                                                             |   |                        |    |   |   |   |   |
| LONG-TERM                DEBT                                                    |   |                        | 11,475  |   |   | 11,475 |   |
|                                                                             |   |                        |    |   |   |   |   |
| OTHER                LIABILITIES:                                                |   |                        |    |   |   |   |   |
| Asset                retirement obligations                                 |   |                        | 1,058   |   |   | 723 |   |
| Deferred                income taxes and other                              |   |                        | 3,296   |   |   | 3,531 |   |
| Risk                management liabilities                                  |   |                        | 48      |   |   | - |   |
|                                                                             |   |                        | 247,006 |   |   | 189,279 |   |
| COMMITMENTS                AND CONTINGENCIES (NOTE 8)                            |   |                        |    |   |   |   |   |
|                                                                             |   |                        |    |   |   |   |   |
| 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                                            |   |                        | 53,541  |   |   | 37,460 |   |
| Total                shareholders’ equity                             |   |                        | 65,656  |   |   | 49,575 |   |
|                                                                             |   | $                           | 312,662 |   | $ | 238,854 |   |

----

**ADAMS      RESOURCES & ENERGY, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**(In      thousands, except per share data)**

|                                                                         |   | Years                Ended December 31, |      |
|------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|
|                                                                         |   | 2005                                    |      | 2004 |   | 2003 |   |
| REVENUES:                                                                    |   |                                    |      |   |   |   |   |   |   |   |
| Marketing                (includes $690,190, $735,476 and $534,464,          |   |                                    |      |   |   |   |   |   |   |   |
| respectively,                of proceeds from buy/sell arrangements)         |   | $                                       | 2,292,029 |   | $ | 2,010,968 |   | $ | 1,676,727 |   |
| Transportation                                                               |   |                                    | 57,458    |   |   | 47,323 |   |   | 35,806 |   |
| Oil                and gas                                                   |   |                                    | 15,346    |   |   | 10,796 |   |   | 8,395 |   |
|                                                                         |   |                                    | 2,364,833 |   |   | 2,069,087 |   |   | 1,720,928 |   |
| COSTS                AND EXPENSES:                                           |   |                                    |      |   |   |   |   |   |   |   |
| Marketing                (includes $696,278, $736,126 and $551,848,          |   |                                    |      |   |   |   |   |   |   |   |
| respectively,                of costs associated with buy/sell arrangements) |   |                                    | 2,268,296 |   |   | 1,996,160 |   |   | 1,663,714 |   |
| Transportation                                                               |   |                                    | 48,614    |   |   | 39,511 |   |   | 32,740 |   |
| Oil                and gas                                                   |   |                                    | 5,903     |   |   | 5,485 |   |   | 3,910 |   |
| General                and administrative                                    |   |                                    | 9,668     |   |   | 7,867 |   |   | 6,299 |   |
| Depreciation,                depletion and amortization                      |   |                                    | 7,060     |   |   | 6,285 |   |   | 5,164 |   |
|                                                                         |   |                                    | 2,339,541 |   |   | 2,055,308 |   |   | 1,711,827 |   |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| Operating                Earnings                                            |   |                                    | 25,292    |   |   | 13,779 |   |   | 9,101 |   |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| Other                Income (Expense):                                       |   |                                    |      |   |   |   |   |   |   |   |
| Interest                income                                               |   |                                    | 188       |   |   | 62 |   |   | 362 |   |
| Interest                expense                                              |   |                                    | (128      | ) |   | (107 | ) |   | (108 | ) |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| Earnings                from continuing operations before income tax         |   |                                    |      |   |   |   |   |   |   |   |
| and                cumulative effect of accounting change                    |   |                                    | 25,352    |   |   | 13,734 |   |   | 9,355 |   |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| Income                Tax Provision:                                         |   |                                    |      |   |   |   |   |   |   |   |
| Current                                                                      |   |                                    | 7,765     |   |   | 4,603 |   |   | 2,303 |   |
| Deferred                                                                     |   |                                    | 818       |   |   | 393 |   |   | 710 |   |
|                                                                         |   |                                    | 8,583     |   |   | 4,996 |   |   | 3,013 |   |
| Earnings                from continuing operations                           |   |                                    | 16,769    |   |   | 8,738 |   |   | 6,342 |   |
| Income                (loss) from discontinued operations, net of tax        |   |                                    |      |   |   |   |   |   |   |   |
| (provision)                benefit of $(443), $67 and $1,621, respectively   |   |                                    | 872       |   |   | (130 | ) |   | (3,148 | ) |
| Earnings                before cumulative effect of accounting change        |   |                                    | 17,641    |   |   | 8,608 |   |   | 3,194 |   |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| Cumulative                effect of accounting change, net of tax benefit    |   |                                    |      |   |   |   |   |   |   |   |
| of                zero, zero and $57, respectively                           |   |                                    | -         |   |   | - |   |   | (92 | ) |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| Net                Earnings                                                  |   | $                                       | 17,641    |   | $ | 8,608 |   | $ | 3,102 |   |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| EARNINGS                (LOSS) PER SHARE:                                    |   |                                    |      |   |   |   |   |   |   |   |
| From                continuing operations                                    |   | $                                       | 3.97      |   | $ | 2.07 |   | $ | 1.50 |   |
| From                discontinued operations                                  |   |                                    | .21       |   |   | (.03 | ) |   | (.74 | ) |
| Cumulative                effect of accounting change                        |   |                                    | -         |   |   | - |   |   | (.02 | ) |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| Basic                and diluted net earnings per share                      |   | $                                       | 4.18      |   | $ | 2.04 |   | $ | .74 |   |
|                                                                         |   |                                    |      |   |   |   |   |   |   |   |
| DIVIDENDS                PER COMMON SHARE                                    |   | $                                       | .37       |   | $ | .30 |   | $ | .23 |   |

----

**ADAMS      RESOURCES & ENERGY, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF SHAREHOLDERS' EQUITY**

**(In      thousands)**

|                                          |   |       |   |            |   |         |   | **Total**               |   |
|-----------------------------------------------|--------|------------|--------|-----------------|--------|--------------|--------|-------------------------|--------|
|                                          |   | **Common** |   | **Contributed** |   | **Retained** |   | **Shareholders’** |   |
|                                          |   | **Stock**  |   | **Capital**     |   | **Earnings** |   | **Equity**              |   |
|                                          |   |       |   |            |   |         |   |                    |   |   |   |   |   |
| BALANCE,                January 1, 2003       |   | $          | 422    |            | $      | 11,693       |   | $                       | 27,985 |   | $ | 40,100 |   |
| Net                earnings                   |   |       | -      |            |   | -            |   |                    | 3,102  |   |   | 3,102 |   |
| Dividends                paid on common stock |   |       | -      |            |   | -            |   |                    | (970   | ) |   | (970 | ) |
| BALANCE,                December 31, 2003     |   | $          | 422    |            | $      | 11,693       |   | $                       | 30,117 |   | $ | 42,232 |   |
| Net                earnings                   |   |       | -      |            |   | -            |   |                    | 8,608  |   |   | 8,608 |   |
| Dividends                paid on common stock |   |       | -      |            |   | -            |   |                    | (1,265 | ) |   | (1,265 | ) |
| BALANCE,                December 31, 2004     |   | $          | 422    |            | $      | 11,693       |   | $                       | 37,460 |   | $ | 49,575 |   |
| Net                earnings                   |   |       | -      |            |   | -            |   |                    | 17,641 |   |   | 17,641 |   |
| Dividends                paid on common stock |   |       | -      |            |   | -            |   |                    | (1,560 | ) |   | (1,560 | ) |
| BALANCE,                December 31, 2005     |   | $          | 422    |            | $      | 11,693       |   | $                       | 53,541 |   | $ | 65,656 |   |

----

**ADAMS      RESOURCES & ENERGY, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(In      thousands)**

|                                                                |   | Years                Ended December 31, |    |
|---------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                |   | 2005                                    |    | 2004 |   | 2003 |   |
|                                                                |   |                                    |    |   |   |   |   |   |   |   |
| CASH                PROVIDED BY OPERATIONS:                         |   |                                    |    |   |   |   |   |   |   |   |
| Earnings                from continuing operations                  |   | $                                       | 16,769  |   | $ | 8,738 |   | $ | 6,342 |   |
| Adjustments                to reconcile net earnings to net cash    |   |                                    |    |   |   |   |   |   |   |   |
| provided                by (used in) operating activities-          |   |                                    |    |   |   |   |   |   |   |   |
| Depreciation,                depletion and amortization             |   |                                    | 7,060   |   |   | 6,285 |   |   | 5,164 |   |
| Gains                on property sales                              |   |                                    | (1,159  | ) |   | (1,438 | ) |   | (448 | ) |
| Impairment                of non-producing oil and gas properties   |   |                                    | 391     |   |   | 616 |   |   | 461 |   |
| Cumulative                effect of accounting change               |   |                                    | -       |   |   | - |   |   | (149 | ) |
| Other,                net                                           |   |                                    | (157    | ) |   | (188 | ) |   | 330 |   |
| Decrease                (increase) in accounts receivable           |   |                                    | (55,842 | ) |   | (26,579 | ) |   | (15,270 | ) |
| Decrease                (increase) in inventories                   |   |                                    | (320    | ) |   | (5,072 | ) |   | (1,319 | ) |
| Risk                management activities                           |   |                                    | (1,151  | ) |   | 62 |   |   | (762 | ) |
| Decrease                (increase) in tax receivable                |   |                                    | (1,304  | ) |   | 1,310 |   |   | (928 | ) |
| Decrease                (increase) in prepayments                   |   |                                    | 759     |   |   | (3,475 | ) |   | (1,723 | ) |
| Increase                (decrease) in accounts payable              |   |                                    | 53,200  |   |   | 15,138 |   |   | 7,947 |   |
| Increase                (decrease) in accrued liabilities           |   |                                    | (1,114  | ) |   | 2,540 |   |   | (586 | ) |
| Deferred                taxes                                       |   |                                    | 818     |   |   | 393 |   |   | 710 |   |
| Net                cash (used in) provided by continuing operations |   |                                    | 17,950  |   |   | (1,670 | ) |   | (231 | ) |
| Net                cash provided by discontinued operations         |   |                                    | 332     |   |   | 4,160 |   |   | 9,314 |   |
| Net                cash provided by operating activities            |   |                                    | 18,282  |   |   | 2,490 |   |   | 9,083 |   |
|                                                                |   |                                    |    |   |   |   |   |   |   |   |
| INVESTING                ACTIVITIES:                                |   |                                    |    |   |   |   |   |   |   |   |
| Property                and equipment additions                     |   |                                    | (19,128 | ) |   | (12,161 | ) |   | (7,761 | ) |
| Insurance                and tax deposits                           |   |                                    | (1,787  | ) |   | - |   |   | - |   |
| Proceeds                from property sales                         |   |                                    | 2,078   |   |   | 2,536 |   |   | 728 |   |
|                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Net                cash (used in) continuing operations             |   |                                    | (18,837 | ) |   | (9,625 | ) |   | (7,033 | ) |
| Proceeds                from sale of discontinued operations        |   |                                    | 990     |   |   | - |   |   | - |   |
| Net                cash (used in) investing activities              |   |                                    | (17,847 | ) |   | (9,625 | ) |   | (7,033 | ) |
|                                                                |   |                                    |    |   |   |   |   |   |   |   |
| FINANCING                ACTIVITIES:                                |   |                                    |    |   |   |   |   |   |   |   |
| Dividend                payments                                    |   |                                    | (1,560  | ) |   | (1,265 | ) |   | (970 | ) |
| Net                cash (used in) financing activities              |   |                                    | (1,560  | ) |   | (1,265 | ) |   | (970 | ) |
|                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Increase                (decrease) in cash and cash equivalents     |   |                                    | (1,125  | ) |   | (8,400 | ) |   | 1,080 |   |
|                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Cash                and cash equivalents at beginning of year       |   |                                    | 19,942  |   |   | 28,342 |   |   | 27,262 |   |
|                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Cash                and cash equivalents at end of year             |   | $                                       | 18,817  |   | $ | 19,942 |   | $ | 28,342 |   |

----

**(1)      Summary of Significant Accounting Policies**

*Principles      of Consolidation *

*Nature      of Operations*

*Cash      and Cash Equivalents*

*Inventories*

|                              |   | December                31, |   |
|-----------------------------------|--------|-----------------------------|--------|
|                              |   | 2005                        |   | 2004 |   |
|                              |   |                        |   |   |   |   |   |
| Crude                oil          |   | $                           | 9,924  |   | $ | 9,663 |   |
| Petroleum                products |   |                        | 1,768  |   |   | 1,709 |   |
|                              |   | $                           | 11,692 |   | $ | 11,372 |   |

*Property      and Equipment*

----

*Other      Assets*

*Revenue      Recognition*

----

*Statement      of Cash Flows*

*Earnings      Per Share*

*Use      of Estimates*

*Price      Risk Management Activities*

----

|                                                                     |   | 2005   |   | 2004   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Net                fair value on January 1,                              |   | $      | 630    |   | $      | 692 |   |
| Activity                during 2005                                      |   |   |   |   |   |   |   |
| -                Cash received from settled contracts                    |   |   | (913   | )      |   | (1,061 | ) |
| -                Net realized gain from prior years’ contracts     |   |   | 283    |   |   | 369 |   |
| -                Net unrealized gain from current years’ contracts |   |   | 1,781  |   |   | 630 |   |
| Net                fair value on December 31,                            |   | $      | 1,781  |   | $      | 630 |   |

*Asset      Retirement Obligations*

|                                   |   | 2005   |   | 2004   |   |
|----------------------------------------|--------|--------|--------|--------|--------|
| Balance                on January 1,   |   | $      | 723    |   | $      | 706 |   |
| Liabilities                incurred    |   |   | 50     |   |   | 14 |   |
| Accretion                of discount   |   |   | 63     |   |   | 18 |   |
| Liabilities                settled     |   |   | (103   | )      |   | (15 | ) |
| Revisions                to estimates  |   |   | 325    |   |   | - |   |
| Balance                on December 31, |   | $      | 1,058  |   | $      | 723 |   |

----

*New      Accounting Pronouncements*

----

**(2)      Long-Term Debt**

|                                                                                                                                                                                                                                 |   | December                  31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                                                                                                                                 |   | 2004                          |   | 2003 |   |
| Bank                  lines of credit, secured by substantially all of the Company’s assets                  (excluding Gulfmark and ARM), due in eight quarterly installments                  commencing on October 31, 2007 |   |                          | 11,475 |   |   | 11,475 |   |
| Less                  - current maturities                                                                                                                                                                                           |   |                          | -      |   |   | - |   |
| Long-term                  debt                                                                                                                                                                                                      |   | $                             | 11,475 |   | $ | 11,475 |   |

----

**(3)      Discontinued Operations**

**(4)      Income Taxes **

|      |   | Years                ended December 31, |   |
|-----------|--------|-----------------------------------------|--------|
|      |   | 2005                                    |   | 2004 |   | 2003 |   |
| Current:  |   |                                    |   |   |   |   |   |   |   |   |
| Federal   |   | $                                       | 7,244  |   | $ | 4,076 |   | $ | 515 |   |
| State     |   |                                    | 964    |   |   | 460 |   |   | 110 |   |
|      |   |                                    | 8,208  |   |   | 4,536 |   |   | 625 |   |
| Deferred: |   |                                    |   |   |   |   |   |   |   |   |
| Federal   |   |                                    | 704    |   |   | 214 |   |   | 674 |   |
| State     |   |                                    | 114    |   |   | 179 |   |   | 36 |   |
|      |   | $                                       | 9,026  |   | $ | 4,929 |   | $ | 1,335 |   |

----

|                                                  |   | Years                ended December 31, |   |
|-------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                  |   | 2005                                    |   | 2004 |   | 2003 |   |
| From                continuing operations             |   | $                                       | 8,583  |   | $ | 4,996 |   | $ | 3,013 |   |
| From                discontinued operations           |   |                                    | 443    |   |   | (67 | ) |   | (1,621 | ) |
| Cumulative                effect of accounting change |   |                                    | -      |   |   | - |   |   | (57 | ) |
|                                                  |   | $                                       | 9,026  |   | $ | 4,929 |   | $ | 1,335 |   |

|                                                                |   | Years                ended December 31, |   |
|---------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                |   | 2005                                    |   | 2004 |   | 2003 |   |
| Statutory                federal income tax provision               |   | $                                       | 9,333  |   | $ | 4,603 |   | $ | 1,509 |   |
| State                income tax provision (net of federal benefit), |   |                                    | 751    |   |   | 321 |   |   | 96 |   |
| Federal                statutory depletion                          |   |                                    | (630   | ) |   | (306 | ) |   | (304 | ) |
| Book/tax                basis adjustment                            |   |                                    | (291   | ) |   | 120 |   |   | - |   |
| State                net operating loss valuation allowance         |   |                                    | (147   | ) |   | 152 |   |   | - |   |
| Other                                                               |   |                                    | 10     |   |   | 39 |   |   | 34 |   |
|                                                                |   | $                                       | 9,026  |   | $ | 4,929 |   | $ | 1,335 |   |

|                                                      |   | Years                Ended December 31, |   |
|-----------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                      |   | 2005                                    |   | 2004 |   |
| Current                deferred taxes                     |   |                                    |   |   |   |   |   |
| Bad                debts                                  |   | $                                       | 231    |   | $ | 146 |   |
| Prepaid                insurance                          |   |                                    | (684   | ) |   | - |   |
| Mark-to-market                contracts                   |   |                                    | (676   | ) |   | (240 | ) |
|                                                      |   |                                    |   |   |   |   |   |
| Net                current deferred tax asset (liability) |   |                                    | (1,129 | ) |   | (94 | ) |
|                                                      |   |                                    |   |   |   |   |   |
| Long-term                deferred taxes                   |   |                                    |   |   |   |   |   |
| State                net operating losses                 |   |                                    | 56     |   |   | 229 |   |
| --Less                valuation allowance                 |   |                                    | (5     | ) |   | (152 | ) |
| Basis                difference in foreign investments    |   |                                    | 281    |   |   | 120 |   |
| Property                                                  |   |                                    | (3,649 | ) |   | (3,612 | ) |
| Other                                                     |   |                                    | 174    |   |   | 55 |   |
|                                                      |   |                                    |   |   |   |   |   |
| Net                long-term deferred tax (liability)     |   |                                    | (3,143 | ) |   | (3,360 | ) |
|                                                      |   |                                    |   |   |   |   |   |
| Net                deferred tax (liability)               |   | $                                       | (4,272 | ) | $ | (3,454 | ) |

----

**(5)      Fair Value of Financial Instruments and Concentration of Credit      Risk**

*Fair      Value of Financial Instruments*

*Concentration      of Credit Risk*

|                                           |   | 2005   |   | 2004   |   | 2003   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                           |   |   |   |   |   |   |   |   |   |   |
| Balance,                beginning of year      |   | $      | 384    |   | $      | 1,935  |   | $ | 1,723 |   |
| Provisions                for bad debts        |   |   | 390    |   |   | 90     |   |   | 433 |   |
| Less:                Write-offs and recoveries |   |   | (166   | )      |   | (1,641 | )      |   | (221 | ) |
|                                           |   |   |   |   |   |   |   |   |   |   |
| Balance,                end of year            |   | $      | 608    |   | $      | 384    |   | $ | 1,935 |   |

**(6)      Employee Benefits**

----

**(7)      Transactions with Related Parties**

**(8)      Commitments and Contingencies **

*Le      Petit Chateau Le Luxe, et. al. vs Great Southern Oil & Gas Co., et.      al.*

----

**(9)      Guarantees**

|                                 |   | 2006 |   | 2007   |   | 2008 |   | 2009 |   | Thereafter |   | Total |   |
|--------------------------------------|--------|------|--------|--------|--------|------|--------|------|--------|------------|--------|-------|--------|
| Lease                residual values |   | $    | 150    |   | $      | -    |   | $    | 304    |       | $      | 1,474 |   | $ | 704 |   | $ | 2,632 |   |

|                                 |   | 2006   |   | 2007   |   | 2008  |   | 2009   |   | Thereafter |   | Total |   |
|--------------------------------------|--------|--------|--------|--------|--------|-------|--------|--------|--------|------------|--------|-------|--------|
| Bank                Debt             |   | $      | -      |   | $      | 1,434 |   | $      | 5,738  |       | $      | 4,303 |   | $ | - |   | $ | 11,475 |   |
| Operating                leases      |   |   | 4,388  |   |   | 4,239 |   |   | 4,039  |       |   | 1,717 |   |   | 1,027 |   |   | 15,410 |   |
| Lease                residual values |   |   | 150    |   |   | -     |   |   | 304    |       |   | 1,474 |   |   | 704 |   |   | 2,632 |   |
| Commodity                purchases   |   |   | 43,247 |   |   | -     |   |   | -      |       |   | -     |   |   | - |   |   | 43,247 |   |
| Letters                of credit     |   |   | 35,483 |   |   | -     |   |   | -      |       |   | -     |   |   | - |   |   | 35,483 |   |
|                                 |   | $      | 83,268 |   | $      | 5,673 |   | $      | 10,081 |       | $      | 7,494 |   | $ | 1,731 |   | $ | 108,247 |   |

----

**(10)      Segment Reporting**

|                                         |   |     |      | Segment                Operating |   | Depreciation                Depletion and |   | Property                and Equipment |   |
|----------------------------------------------|--------|----------|-----------|----------------------------------|--------|-------------------------------------------|--------|---------------------------------------|--------|
|                                         |   | Revenues |      | Earnings                         |   | Amortization                              |   | Additions                             |   |
| Year                ended December 31, 2005- |   |     |      |                             |   |                                      |   |                                  |   |   |   |   |   |
| Marketing                                    |   | $        | 2,292,029 |                             | $      | 22,481                                    |   | $                                     | 1,252  |   | $ | 516 |   |
| Transportation                               |   |     | 57,458    |                             |   | 5,714                                     |   |                                  | 3,130  |   |   | 11,188 |   |
| Oil                and gas                   |   |     | 15,346    |                             |   | 6,765                                     |   |                                  | 2,678  |   |   | 7,424 |   |
|                                         |   | $        | 2,364,833 |                             | $      | 34,960                                    |   | $                                     | 7,060  |   | $ | 19,128 |   |
| Year                ended December 31, 2004- |   |     |      |                             |   |                                      |   |                                  |   |   |   |   |   |
| Marketing                                    |   | $        | 2,010,968 |                             | $      | 13,597                                    |   | $                                     | 1,211  |   | $ | 1,278 |   |
| Transportation                               |   |     | 47,323    |                             |   | 5,687                                     |   |                                  | 2,125  |   |   | 6,736 |   |
| Oil                and gas                   |   |     | 10,796    |                             |   | 2,362                                     |   |                                  | 2,949  |   |   | 4,147 |   |
|                                         |   | $        | 2,069,087 |                             | $      | 21,646                                    |   | $                                     | 6,285  |   | $ | 12,161 |   |
| Year                ended December 31, 2003- |   |     |      |                             |   |                                      |   |                                  |   |   |   |   |   |
| Marketing                                    |   | $        | 1,676,727 |                             | $      | 12,117                                    |   | $                                     | 896    |   | $ | 1,798 |   |
| Transportation                               |   |     | 35,806    |                             |   | 973                                       |   |                                  | 2,093  |   |   | 1,377 |   |
| Oil                and gas                   |   |     | 8,395     |                             |   | 2,310                                     |   |                                  | 2,175  |   |   | 4,586 |   |
|                                         |   | $        | 1,720,928 |                             | $      | 15,400                                    |   | $                                     | 5,164  |   | $ | 7,761 |   |

|                                               |   | Years                Ended December 31, |   |
|----------------------------------------------------|--------|-----------------------------------------|--------|
|                                               |   | 2005                                    |   | 2004 |   | 2003 |   |
| Segment                operating earnings          |   | $                                       | 34,960 |   | $ | 21,646 |   | $ | 15,400 |   |
| General                and administrative expenses |   |                                    | (9,668 | ) |   | (7,867 | ) |   | (6,299 | ) |
| Operating                earnings                  |   |                                    | 25,292 |   |   | 13,779 |   |   | 9,101 |   |
| Interest                income                     |   |                                    | 188    |   |   | 62 |   |   | 362 |   |
| Interest                expense                    |   |                                    | (128   | ) |   | (107 | ) |   | (108 | ) |
| Earnings                from continuing operations |   |                                    |   |   |   |   |   |   |   |   |
| before                income taxes                 |   | $                                       | 25,352 |   | $ | 13,734 |   | $ | 9,355 |   |

|                       |   | Years                Ended December 31, |    |
|----------------------------|--------|-----------------------------------------|---------|
|                       |   | 2005                                    |    | 2004 |   |
| Marketing                  |   | $                                       | 240,309 |   | $ | 178,691 |   |
| Transportation             |   |                                    | 28,412  |   |   | 22,308 |   |
| Oil                and gas |   |                                    | 20,780  |   |   | 15,354 |   |
| Other                      |   |                                    | 23,161  |   |   | 22,501 |   |
|                       |   | $                                       | 312,662 |   | $ | 238,854 |   |

----

**(11)      Marketing Joint Venture**

**(12)      Quarterly Financial Data (Unaudited) - **

|                        |   |     |      | Earnings                from |   |                        |   |      |   |
|-----------------------------|--------|----------|-----------|------------------------------|--------|-----------------------------|--------|-----------|--------|
|                        |   |     |      | Continuing                   |   |                        |   |      |   |
|                        |   |     |      | Operations                   |   | Net                Earnings |   | Dividends |   |
|                        |   |     |      |                         |   | Per                         |   |      |   | Per |   |   |   | Per |   |
|                        |   | Revenues |      | Amount                       |   | Share                       |   | Amount    |   | Share |   | Amount |   | Share |   |
| **2005                -**   |   |     |      |                         |   |                        |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                31     |   | $        | 527,643   |                         | $      | 2,910                       |   | $         | .69    |   | $ | 2,851 |   | $ | .68 |   | $ | - |   | $ | - |   |
| June                30      |   |     | 542,195   |                         |   | 1,849                       |   |      | .44    |   |   | 1,886 |   |   | .44 |   |   | - |   |   | - |   |
| September                30 |   |     | 637,007   |                         |   | 4,996                       |   |      | 1.18   |   |   | 5,297 |   |   | 1.26 |   |   | - |   |   | - |   |
| December                31  |   |     | 657,988   |                         |   | 7,014                       |   |      | 1.66   |   |   | 7,607(1 | ) |   | 1.80 |   |   | 1,560 |   |   | .37 |   |
|                        |   | $        | 2,364,833 |                         | $      | 16,769                      |   | $         | 3.97   |   | $ | 17,641 |   | $ | 4.18 |   | $ | 1,560 |   | $ | .37 |   |
|                        |   |     |      |                         |   |                        |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **2004                -**   |   |     |      |                         |   |                        |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                31     |   | $        | 461,120   |                         | $      | 1,167                       |   | $         | .27    |   | $ | 938 |   | $ | .22 |   | $ | - |   | $ | - |   |
| June                30      |   |     | 495,428   |                         |   | 1,091                       |   |      | .26    |   |   | 1,118 |   |   | .27 |   |   | - |   |   | - |   |
| September                30 |   |     | 550,393   |                         |   | 4,303                       |   |      | 1.02   |   |   | 4,352 |   |   | 1.03 |   |   | - |   |   | - |   |
| December                31  |   |     | 562,146   |                         |   | 2,177                       |   |      | .52    |   |   | 2,200 |   |   | .52 |   |   | 1,265 |   |   | .30 |   |
|                        |   | $        | 2,069,087 |                         | $      | 8,738                       |   | $         | 2.07   |   | $ | 8,608 |   | $ | 2.04 |   | $ | 1,265 |   | $ | .30 |   |

----

**(13)**
**Oil      and Gas Producing Activities (Unaudited)**

*Oil      and Gas Producing Activities (Unaudited) - *

|                                      |   | Years                Ended December 31, |   |
|-------------------------------------------|--------|-----------------------------------------|--------|
|                                      |   | 2005                                    |   | 2004 |   | 2003 |   |
| Property                acquisition costs |   |                                    |   |   |   |   |   |   |   |   |
| Unproved                                  |   | $                                       | 1,460  |   | $ | 574 |   | $ | 1,311 |   |
| Proved                                    |   |                                    | -      |   |   | - |   |   | - |   |
| Exploration                costs          |   |                                    |   |   |   |   |   |   |   |   |
| Expensed                                  |   |                                    | 3,078  |   |   | 2,504 |   |   | 1,638 |   |
| Capitalized                               |   |                                    | 927    |   |   | 1,565 |   |   | 1,339 |   |
| Development                costs          |   |                                    | 5,037  |   |   | 2,210 |   |   | 1,936 |   |
| Total                costs incurred       |   | $                                       | 10,502 |   | $ | 6,853 |   | $ | 6,224 |   |

|                                               |   | December                31, |    |
|----------------------------------------------------|--------|-----------------------------|---------|
|                                               |   | 2005                        |    | 2004 |   |
|                                               |   |                        |    |   |   |   |   |
| Unproved                oil and gas properties     |   | $                           | 5,857   |   | $ | 3,293 |   |
| Proved                oil and gas properties       |   |                        | 46,254  |   |   | 42,096 |   |
|                                               |   |                        |    |   |   |   |   |
| Accumulated                depreciation, depletion |   |                        |    |   |   |   |   |
| and                amortization                    |   |                        | (34,536 | ) |   | (32,242 | ) |
|                                               |   |                        |    |   |   |   |   |
| Net                capitalized cost                |   | $                           | 17,575  |   | $ | 13,147 |   |

*Estimated      Oil and Natural Gas Reserves (Unaudited) - *

----

|                                           |   | Years                Ended December 31, |   |
|------------------------------------------------|--------|-----------------------------------------|--------|
|                                           |   | 2005                                    |   | 2004 |   | 2003 |   |
|                                           |   | Natural                                 |   |   |   | Natural |   |   |   | Natural |   |   |   |
|                                           |   | Gas                                     |   | Oil |   | Gas |   | Oil |   | Gas |   | Oil |   |
|                                           |   | (Mcf’s)                           |   | (Bbls.) |   | (Mcf’s) |   | (Bbls.) |   | (Mcf’s) |   | (Bbls.) |   |
| Total                proved reserves-          |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning                of year               |   |                                    | 10,950 |   |   | 436 |   |   | 8,971 |   |   | 438 |   |   | 7,480 |   |   | 579 |   |
| Revisions                of previous estimates |   |                                    | (1,120 | ) |   | 42 |   |   | 122 |   |   | (52 | ) |   | 37 |   |   | (223 | ) |
| Oil                and gas reserves sold       |   |                                    | (441   | ) |   | (61 | ) |   | - |   |   | - |   |   | - |   |   | - |   |
| Extensions,                discoveries and     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other                reserve additions         |   |                                    | 1,642  |   |   | 46 |   |   | 3,166 |   |   | 121 |   |   | 2,693 |   |   | 144 |   |
| Production                                     |   |                                    | (1,388 | ) |   | (67 | ) |   | (1,309 | ) |   | (71 | ) |   | (1,239 | ) |   | (62 | ) |
| End                of year                     |   |                                    | 9,643  |   |   | 396 |   |   | 10,950 |   |   | 436 |   |   | 8,971 |   |   | 438 |   |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved                developed reserves-      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End                of year                     |   |                                    | 9,643  |   |   | 396 |   |   | 10,220 |   |   | 410 |   |   | 8,971 |   |   | 438 |   |

*Standardized      Measure of Discounted Future Net Cash Flows from Oil and Gas Operations and      Changes Therein (Unaudited) - *

|                                                     |   | YYears                Ended December 31, |    |
|----------------------------------------------------------|--------|------------------------------------------|---------|
|                                                     |   | 2005                                     |    | 2004 |   | 2003 |   |
|                                                     |   |                                     |    |   |   |   |   |
| Future                gross revenues                     |   | $                                        | 110,720 |   | $ | 83,668 |   | $ | 64,442 |   |
| Future                costs -                            |   |                                     |    |   |   |   |   |   |   |   |
| Lease                operating expenses                  |   |                                     | (26,674 | ) |   | (20,128 | ) |   | (18,035 | ) |
| Development                costs                         |   |                                     | (600    | ) |   | (1,228 | ) |   | (221 | ) |
| Future                net cash flows before income taxes |   |                                     | 83,446  |   |   | 62,312 |   |   | 46,186 |   |
| Discount                at 10% per annum                 |   |                                     | (35,124 | ) |   | (27,771 | ) |   | (18,351 | ) |
| Discounted                future net cash flows          |   |                                     |    |   |   |   |   |   |   |   |
| before                income taxes                       |   |                                     | 48,322  |   |   | 34,541 |   |   | 27,835 |   |
| Future                income taxes, net of discount at   |   |                                     |    |   |   |   |   |   |   |   |
| 10%                per annum                             |   |                                     | (18,362 | ) |   | (11,744 | ) |   | (9,464 | ) |
| Standardized                measure of discounted        |   |                                     |    |   |   |   |   |   |   |   |
| future                net cash flows                     |   | $                                        | 29,960  |   | $ | 22,797 |   | $ | 18,371 |   |

----

|                                                                  |   | Years                Ended December 31, |    |
|-----------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                  |   | 2005                                    |    | 2004 |   | 2003 |   |
| Beginning                of year                                      |   | $                                       | 22,797  |   | $ | 18,371 |   | $ | 11,041 |   |
| Revisions                to reserves proved in prior years -          |   |                                    |    |   |   |   |   |   |   |   |
| Net                change in prices and production costs              |   |                                    | 16,308  |   |   | 2,306 |   |   | 6,508 |   |
| Net                change due to revisions in quantity estimates      |   |                                    | (6,334  | ) |   | (534 | ) |   | (3,235 | ) |
| Accretion                of discount                                  |   |                                    | 2,777   |   |   | 1,835 |   |   | 1,465 |   |
| Production                rate changes and other                      |   |                                    | 2,405   |   |   | (1,280 | ) |   | 1,228 |   |
| Total                revisions                                        |   |                                    | 15,156  |   |   | 2,327 |   |   | 5,966 |   |
| Sale                of oil and gas reserves                           |   |                                    | (1,623  | ) |   | - |   |   | - |   |
| New                field discoveries and extensions, net of future    |   |                                    |    |   |   |   |   |   |   |   |
| production                costs                                       |   |                                    | 12,769  |   |   | 12,194 |   |   | 11,264 |   |
| Sales                of oil and gas produced, net of production costs |   |                                    | (12,521 | ) |   | (7,815 | ) |   | (6,123 | ) |
| Net                change in income taxes                             |   |                                    | (6,618  | ) |   | (2,280 | ) |   | (3,777 | ) |
| Net                change in standardized measure of                  |   |                                    |    |   |   |   |   |   |   |   |
| discounted                future net cash flows                       |   |                                    | 7,163   |   |   | 4,426 |   |   | 7,330 |   |
| End                of year                                            |   | $                                       | 29,960  |   | $ | 22,797 |   | $ | 18,371 |   |

*Results      of Operations for Oil and Gas Producing Activities (Unaudited) -*

|                                                       |   | Years                Ended December 31, |   |
|------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                       |   | 2005                                    |   | 2004 |   | 2003 |   |
|                                                       |   |                                    |   |   |   |   |   |
| Revenues                                                   |   | $                                       | 15,346 |   | $ | 10,796 |   | $ | 8,395 |   |
| Costs                and expenses -                        |   |                                    |   |   |   |   |   |   |   |   |
| Production                                                 |   |                                    | 2,825  |   |   | 2,981 |   |   | 2,272 |   |
| Exploration                                                |   |                                    | 3,078  |   |   | 2,504 |   |   | 1,638 |   |
| Depreciation,                depletion and amortization    |   |                                    | 2,678  |   |   | 2,949 |   |   | 2,175 |   |
| Operating                income before income taxes        |   |                                    | 6,765  |   |   | 2,362 |   |   | 2,310 |   |
| Income                tax expense                          |   |                                    | (2,368 | ) |   | (803 | ) |   | (788 | ) |
| Operating                income from continuing operations |   | $                                       | 4,397  |   | $ | 1,559 |   | $ | 1,522 |   |

----

----

----

| 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 |
|----------------|----------------------------------------------|

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**SIGNATURES**

|                                        | 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, Director     | Chairman                of the Board and              |
| and                Chief Financial Officer) | Chief                Executive Officer)               |

| By                /s/                FRANK T. WEBSTER      | By                /s/                E. C. REINAUER, JR.  |
|------------------------------------------------------------|-----------------------------------------------------------|
| (Frank                T. Webster, Director)                | (E.                C. Reinauer, Jr., Director)            |
|                                                       |                                                      |
|                                                       |                                                      |
|                                                       |                                                      |
| By                /s/                EDWARD WIECK          | By                /s/                E. JACK WEBSTER, JR. |
| (Edward                Wieck, Director)                    | (E.                Jack Webster, Jr., Director)           |
|                                                       |                                                      |
|                                                       |                                                      |
|                                                       |                                                      |
| By                /s/                WILLIAM B. WIENER III |                                                      |
| (William                B. Wiener III, Director)           |                                                      |
|                                                       |                                                      |
|                                                       |                                                      |
|                                                       |                                                      |
|                                                       |                                                      |
|                                                       |                                                      |

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**EXHIBIT      INDEX**