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


                             FORM 10-Q



[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
    ACT OF 1934
    For the period ended March 31, 1997
                                      or

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
     EXCHANGE ACT OF 1934



                                               COMMISSION FILE NUMBER 1-12396


                              THE BEARD COMPANY
            (Exact name of registrant as specified in its charter)




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


                              ENTERPRISE PLAZA, SUITE 320
                                5600 NORTH MAY AVENUE
                               OKLAHOMA CITY, OKLAHOMA                  73112
                        (Address of principal executive offices)    (Zip Code)


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

      Indicate  by  check mark whether the registrant (1) has filed all reports
required to be filed  by  Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12  months  (or  for  such  shorter  period  that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes [X]    No [  ]

      Indicate  the  number  of  shares outstanding of each of the registrant's
classes of common stock as of March 31, 1997.


                   Common Stock $.001 par value - 2,799,074
<PAGE>

                               THE BEARD COMPANY

                                     INDEX


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

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

  Statements of Operations - Three Months ended March 31, 1997 and 1996 
    (Unaudited)

  Statements of Shareholders' Equity, Year ended December 31, 1996 
    and Three Months ended March 31, 1997 (Unaudited)

  Statements of Cash Flows - Three Months ended March 31, 1997 and 1996 
    (Unaudited)

  Notes to Financial Statements (Unaudited)

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

PART II.  OTHER INFORMATION

Item 2. Changes in Securities

ITEM 6. Exhibits and Reports on Form 8-K

SIGNATURES
<PAGE>

                      THE BEARD COMPANY AND SUBSIDIARIES

                             Financial Statements



         March 31, 1997 (Unaudited) and December 31, 1996 and for the
            Three Months Ended March 31, 1997, and 1996 (Unaudited)



                                    PART I

                             FINANCIAL INFORMATION

ITEM 1.  Financial Statements
                     THE BEARD COMPANY AND SUBSIDIARIES
                              Balance Sheets
             March 31, 1997 (Unaudited) and December 31, 1996
<TABLE>
<CAPTION>
    
                                                 March 31,        December 31,
      ASSETS                                       1997                1996
                                             ---------------      -------------
<S>                                          <C>                  <C>
Current assets:
--------------
Cash and cash equivalents                    $       240,000      $     375,000
Accounts receivable, less allowance for 
  doubtful receivables of $72,000 in 1997 
  and $71,000 in 1996                              2,396,000          2,405,000
Inventories                                          998,000          2,003,000
Prepaid expense                                      452,000            442,000
Other assets                                          72,000             73,000
                                             ---------------     --------------
              Total current assets                 4,158,000          5,298,000
                                             ----------------    --------------
Investments and other assets                       1,679,000          1,710,000

Property, plant and equipment, at cost            17,239,000         16,793,000
    Less accumulated depreciation, 
      depletion and amortization                   8,416,000          8,094,000
                                             ---------------     --------------
              Net property, plant and equipment    8,823,000          8,699,000
                                             ---------------     --------------
Intangible assets, at cost                         4,330,000          4,305,000
    Less accumulated amortization                  3,571,000          3,539,000
                                             ---------------     --------------
              Net intangible assets                  759,000            766,000
                                             ---------------     --------------
                                             $    15,419,000     $   16,473,000
                                             ===============     ==============

                   LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
-------------------
Trade accounts payable                       $    1,575,000      $    1,395,000
Accrued expense and other liabilities               426,000             609,000
Short-term debt                                        -                639,000
Current maturities of long-term debt                776,000             910,000
                                             --------------      ---------------
              Total current liabilities           2,777,000           3,553,000
                                             --------------      ---------------
Long-term debt less current maturities            3,067,000           2,911,000
Minority interest in consolidated 
  subsidiaries                                      143,000             153,000

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

Common shareholders' equity:
---------------------------

Common stock of $.001 par value per share; 
  10,000,000 shares authorized; 
  2,799,074 shares issued and outstanding 
  in 1997 and 1996                                   3,000                3,000
Capital in excess of par value                  41,629,000           41,629,000
Accumulated deficit                            (33,400,000)         (32,976,000)
                                           ---------------       --------------
              Total common shareholders' 
              equity                             8,232,000            8,656,000
                                           ---------------       --------------
Commitments and contingencies (note 8)     $    15,419,000       $   16,473,000
                                           ===============       ==============
</TABLE>
                  See accompanying notes to financial statements.

                      THE BEARD COMPANY AND SUBSIDIARIES
                           Statements of Operations
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                For the Three Months Ended
                                           ---------------------------------
                                              March 31,             March 31,
                                                 1997                   1996
                                           ------------          ------------
<S>                                        <C>                   <C>
Revenues:
       Carbon dioxide                      $  2,918,000          $  2,779,000
       Environmental/resource recovery        1,169,000               350,000
       Other                                     35,000                17,000
                                           ------------          ------------
                                              4,122,000             3,146,000
Expenses:
       Carbon dioxide                         2,053,000             2,064,000
       Environmental/resource recovery          995,000               527,000
       Selling, general and administrative    1,031,000               947,000
       Depreciation, depletion and
         amortization                           361,000               302,000
       Other                                      7,000                14,000
                                           ------------          ------------
                                              4,447,000             3,854,000
Operating profit(loss):
       Carbon dioxide                            79,000               (86,000)
       Environmental/resource recovery         (175,000)             (353,000)
       Other                                   (229,000)             (269,000)
                                           ------------          ------------
                                               (325,000)             (708,000)

Other income (expense):
       Interest income                            3,000                 2,000
       Interest expense                         (88,000)              (46,000)
       Gain on sale of assets                    53,000                12,000
       Gain on take-or-pay contract settlement
         (note 6)                                  -                   939,000
       Other, including equity in net loss 
         of unconsolidated affiliates           (77,000)              (96,000)
       Minority interest in operations of 
         consolidated subsidiaries               10,000                  -
                                           ------------          ------------
Earnings (loss) from continuing operations
  before income taxes                          (424,000)              103,000
Income taxes (note 7)                              -                     -
                                           ------------          ------------
Earnings (loss) from continuing operations $   (424,000)         $    103,000

       Loss from discontinued real 
         estate operations (note 2)                -                   (8,000)
                                           ------------          ------------
Net earnings (loss)                        $   (424,000)         $     95,000
                                           ============          ============
Net earnings (loss) attributable to common
  shareholders                             $   (424,000)               95,000
                                           ============          ============
Earnings (loss) per common share and 
  common equivalent share (primary EPS)
  (note 5):
       Earnings (loss) from continuing
       operations                          $      (0.15)         $       0.03
       Loss from discontinued operations            -                     -
       Net earnings (loss)                 $      (0.15)         $       0.03

                       See accompanying notes to financial statements.
</TABLE>


                                        THE BEARD COMPANY AND SUBSIDIARIES
                                        Statements of Shareholders' Equity
<TABLE>
<CAPTION>
                                                                                                          TOTAL
                                                                  CAPITAL IN                              COMMON
                                                  COMMON          EXCESS OF         ACCUMULATED         SHAREHOLDERS'
                                                   STOCK          PAR VALUE          DEFICIT              EQUITY
                                                 ----------    --------------     --------------       --------------      
<S>                                              <C>           <C>                <C>                  <C>
Balance, December 31, 1995                       $    3,000    $  41,446,000      $  (32,661,000)      $    8,788,000
       Net loss, year ended December 31, 1996          -                -               (315,000)            (315,000)
       Issuance of 68,244 shares of common stock       -             183,000               -                  183,000
                                                 ----------    -------------      --------------       --------------
Balance, December 31, 1996                            3,000       41,629,000         (32,976,000)           8,656,000
       Net loss, three months ended March 31, 1997     -                -               (424,000)            (424,000)
                                                 ----------    -------------      --------------       --------------
Balance, March 31, 1997                          $    3,000    $  41,629,000      $  (33,400,000)      $    8,232,000
                                                 ==========    =============      ==============       ==============
</TABLE>

                             See accompanying notes to financial statements.


                      THE BEARD COMPANY AND SUBSIDIARIES
                          Statements of Cash Flows
                               (Unaudited)
<TABLE>
<CAPTION>
                                               For the Three Months Ended
                                           -----------------------------------
                                           March 31, 1997       March 31, 1996
                                           --------------       --------------
<S>                                        <C>                  <C>
Operating activities:
    Cash received from customers           $ 5,332,000          $ 3,361,000
    Cash paid to suppliers and employees    (4,426,000)          (3,812,000)
    Cash received from settlement of 
      take-or-pay contract                        -                 539,000
    Interest received                            3,000                1,000
    Interest paid                             (136,000)             (47,000)
                                           -----------          -----------
        Net cash provided by operating 
          activities                           773,000               42,000
                                           -----------          -----------
Investing Activities:
    Acquisition of property, plant 
      and equipment                           (369,000)            (341,000)
    Proceeds from sale of assets                55,000              149,000
    Other investments                           16,000               (8,000)
                                           -----------          -----------
        Net cash used in investing 
          activities                          (298,000)            (200,000)
                                           -----------          -----------
Financing Activities:                                         
    Proceeds from line of credit and 
      term notes                               985,000            1,085,000
    Payments on line of credit and 
      short-term notes                      (1,595,000)            (891,000)
    Proceeds from issuance of stock               -                  10,000
                                           -----------          -----------
        Net cash provided by (used in) 
          financing activities                (610,000)             204,000
                                           -----------          -----------
Net increase (decrease) in cash and
  cash equivalents                            (135,000)              46,000
Cash and cash equivalents at beginning
  of period                                    375,000              220,000
                                           -----------          -----------
Cash and cash equivalents at end of
  period                                   $   240,000          $   266,000
                                           ===========          ===========
</TABLE>

                                   Continued


                       THE BEARD COMPANY AND SUBSIDIARIES
                             Statements of Cash Flows
                                  (Unaudited)

Reconciliation of Net earnings (loss) to Net Cash Provided by Operating 
----------------------------------------------------------------------
Activities
----------
<TABLE>
<CAPTION>
                                              For the Three Months Ended
                                          -----------------------------------
                                          March 31, 1997       March 31, 1996
                                          --------------       --------------
<S>                                       <C>                <C>    
Net earnings (loss)                       $   (424,000)        $      95,000
Adjustments to reconcile net earnings
  (loss) to net cash provided by operating 
  activities:
    Depreciation, depletion and amortization   361,000               303,000
    Gain on sale of assets                     (53,000)              (12,000)
    Receipt of equipment as part of
      settlement of take-or-pay contract          -                 (400,000)
    Interest and other costs (capitalized) 
      recognized on real estate project        464,000               (30,000)
    Other, including minority interest in 
      consolidated subsidiaries                 83,000                99,000
                                          ------------         -------------
        Net cash provided by operations 
          before changes in current assets 
          and liabilities                      431,000                55,000
    (Increase) decrease in accounts 
      receivable, prepaids and other 
      current assets                            (3,000)               53,000
    (Increase) decrease in inventories         541,000              (258,000)
    Increase (decrease) in accounts 
      payable, accrued expenses and other 
      liabilities                             (196,000)              192,000
                                          ------------         -------------
    Net cash provided by operating 
      activities                          $    773,000         $      42,000
                                          ============         =============

Supplemental Schedule of Noncash Investing and Financing Activities
-------------------------------------------------------------------

Purchase of property, plant and equipment 
  and intangible assets through issuance 
  of debt obligations                     $       -            $      99,000
                                          ============         =============
Receipt of equipment as part of
  settlement of take-or-pay contract      $       -            $     400,000
                                          ============         =============
</TABLE>

                         See accompanying notes to financial statements.
<PAGE>

                           THE BEARD COMPANY AND SUBSIDIARIES
                              Notes to Financial Statements

                                 March 31, 1997 and 1996
                                       (Unaudited)

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

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

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

   The results of operations for the three-month period ended March  31,  1997,
   are  not  necessarily  indicative of the results to be expected for the full
   year.

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

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

   Results of operations of the R/E segment for the  three  months  ended March
   31,  1996, have been restated as discontinued operations in the accompanying
   statements  of operations.  Operating results of the discontinued operations
   through the date  of  sale  of  all  remaining assets are not expected to be
   significant.

   During the three months ended March 31,  1997,  the Company disposed of real
   estate construction and development assets for $1,196,000 which approximated
   the Company's estimated disposition values of these assets.

   As of March 31, 1997, the significant assets of the R/E segment included two
   speculative homes valued at approximately $574,000.

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

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

(5)  EARNINGS (LOSS) PER SHARE
   Loss per common share for the  three-month  period ended March 31, 1997, has
   been computed by dividing the loss by the weighted  average number of common
   shares  outstanding during the quarter.  Common share  equivalents  and  any
   potentially dilutive securities outstanding were not considered in the March
   31, 1997, calculations, as the effects would have been antidilutive.

   Primary earnings per common share for the three-month period ended March 31,
   1996,  were   computed   by   dividing  net  earnings  available  to  common
   shareholders by the weighted average  number  of  shares of common stock and
   common  stock  equivalents  outstanding  during  the period.   Common  stock
   equivalents include the effect of shares issuable upon exercise of incentive
   and  non-qualified  stock options using the treasury  stock  method.   Fully
   diluted earnings per  share  include  the potential dilution of the earnings
   available to common stockholders as if  the preferred stock was converted to
   common  stock.   The calculation includes the  weighted  average  number  of
   shares of common shares  outstanding,  the common stock equivalents, and the
   common shares that would result from the conversion of the preferred shares.

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

                           THE BEARD COMPANY AND SUBSIDIARIES
                              Notes to Financial Statements
  
                                   March 31, 1997 and 1996
                                         (Unaudited)
<TABLE>
<CAPTION>
                                               For the Three Months Ended
                                             --------------------------------
                                              March 31,             March 31,
                                                1997                  1996
                                              ---------             ---------
<S>                                           <C>                   <C>
Primary EPS:
     Weighted average of common
       shares outstanding                     2,799,074             2,734,094
     Options considered to be
       common stock equivalents                    -                   17,752
                                              ---------             ---------
                                              2,799,074             2,751,846
                                              =========             =========
</TABLE>

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

(7)  INCOME TAXES
   In accordance with  the  provisions of the Statement of Financial Accounting
   Standard  No. 109,  Accounting  for  Income  Taxes  ("SFAS  No.  109"),  the
   Company's net  deferred tax asset is being carried at zero book value, which
   reflects  the  uncertainties   of  the  Company's  utilization  of  the  net
   deductible timing differences.   There  is  no provision for income taxes in
   1997  or  1996  due to the availability of net operating  losses  and  other
   carryforwards.

   At March 31, 1997,  the  Company  estimates that it had the following income
   tax carryforwards available for both  income  tax  and  financial  reporting
   purposes (in thousands):

<TABLE>
<CAPTION>
                                             Expiration
                                               Date              Amount
                                             ----------       ----------
<S>                                          <C>              <C>                                                             
Federal regular tax operating loss carry-
  forwards                                    2001-2011       $  67,388
Investment tax credit carryforward            1997-2000             679
Tax depletion carryforward                    Indefinite          5,500
                                              ----------      ----------
                                               Total          $  73,567
                                                              ==========
</TABLE>

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

(9)  CHANGE IN CONTROL COMPENSATION AGREEMENTS
     In January 1997, the Company's dry ice subsidiary entered  into Change of
     Control Compensation agreements with its President and two other employees.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  AND
        RESULTS OF OPERATIONS

     The  following  discussion  focuses  on  material  changes  in the 
     Company's financial condition since December 31, 1996 and results of opera-
     tions for the quarter  ended  March  31, 1997 compared to the prior year 
     first quarter.  Such discussion  should  be  read   in  conjunction  with  
     the Company's financial statements including the related footnotes.

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

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

MATERIAL  CHANGES  IN  FINANCIAL  CONDITION  -  MARCH 31, 1997 AS COMPARED WITH
DECEMBER 31, 1996.

     The following table reflects some of the changes in the Company's financial
condition during the periods indicated:
<TABLE>
<CAPTION>
                                        March 31,             December 31,            Increase
                                          1997                    1996               (Decrease)
                                        ---------             ------------            --------
<S>                                    <C>                    <C>                    <C>     
Cash and cash equivalents              $  240,000              $  375,000              $(135,000)
Working capital                        $1,381,000              $1,745,000              $(364,000)
Current ratio                           1.50 to 1               1.49 to 1
                                 
</TABLE>


   The Company's ability to generate working capital from operations during the
first quarter of 1997 was adversely affected by operating  losses from the E/RR
Segment and the low sales volumes of the CO2 Segment.   The  Company's  core 
operations are affected by seasonality.   The first quarter is normally a poor  
one for the dry ice business, and cold and/or rainy   weather   also  normally  
causes   a   slowdown   of   sales   in   the environmental/resource  recovery 
Segment.  As previously mentioned, the Company has discontinued the R/E  Segment
and  the  sale  of  substantially all of its assets in this Segment during the 
quarter provided cash of $996,000 and working capital  of $220,000.  The 
proceeds from the sale were used  to  pay  down  the short-term debt associated 
with the construction cost of these assets.  Despite the seasonal  decline, 
however, net working capital generated by operations for the first three  months
of 1997 amounted to $431,000, a strong improvement over the $55,000 generated in
the 1996 quarter.

   In addition to  the proceeds from the sale of assets in the R/E Segment, the
Company has been able  to  satisfy  its  liquidity  needs  through  its working
capital  and  borrowing  arrangements.   Future cash flows and availability  of
credit are subject to a number of variables, including the price and demand for
dry ice, a continuing source of economical CO2, and continuing private and 
governmental  demand  for  environmental services.  Despite these uncertainties,
the Company anticipates that  its  cash  flow from operations  and  continuing  
availability of credit on a basis similar to  that experienced to date will be 
sufficient  to meet its planned operating costs and capital spending require-
ments.

   Additional capital expenditures of  $369,000  were  made by the following
Segments  in  property, plant and equipment during the first  three  months  of
1997:

<TABLE>
<CAPTION>
              <S>                                <C>
              Carbon dioxide                     $272,000
              Environmental/resource recovery      59,000
              Other                                38,000
                                                 --------
                                                 $369,000
                                                 ========
</TABLE>

   The CO2 Segment's line of credit will be sufficient to fund its presently 
foreseeable capital expenditure requirements, including the $713,000 projected 
for the last nine  months  of  1997.  The Company's other credit lines and cash 
flow will be adequate to fund the $449,000 of capital expenditures projected for
the rest of the Company for the last nine months of the year.

   Through the period ending December 31, 2002, the Company's liquidity will
be reduced to the extent  it  is  required to redeem any of the Beard preferred
stock pursuant to the mandatory redemption  provisions.   See  Note  2  to  the
accompanying financial statements.

MATERIAL  CHANGES  IN  RESULTS  OF OPERATIONS - QUARTER ENDED MARCH 31, 1997 AS
COMPARED WITH THE QUARTER ENDED MARCH 31, 1996.

   The loss for the first quarter of 1997 was $424,000, compared to earnings
of  $95,000  for  the  same time period  in  1996.   There was  a  significant
improvement in operating margins across the board; the CO2 Segment improved by 
$165,000,  the  E/RR  Segment  by  $178,000,  and Other by $40,000.  As a 
result, the operating loss for the current quarter decreased 54% to  $325,000  
versus  $708,000  a  year  ago.   The  first  quarter of 1996 was favorably  
impacted  by  a $939,000 gain from the settlement of  a  take-or-pay contract in
the CO2 Segment.

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

<TABLE>
<CAPTION>
                                    1997              1996
                                    ----              ----
<S>                              <C>               <C>
OPERATING PROFIT (LOSS):
   Carbon dioxide                $79,000           $(86,000)
   Environmental/resource
       recovery                 (175,000)          (353,000)
                                ----------         ----------
          Subtotal               (96,000)          (439,000)
   Other                        (229,000)          (269,000)
                                ----------         ----------
                                (325,000)          (708,000)
                                ==========         ==========
</TABLE>

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

CARBON DIOXIDE

  First  quarter 1997 operations reflected  an  operating  profit  of  $79,000
compared to  an $86,000 loss for the 1996 first quarter.  The primary component
of revenues for  this  Segment  is  dry  ice  sales which are seasonal with the
downturn occurring from December through February, while the brisk sales period
occurs from June through August and then again  in October.  The operating loss
for the dry ice component of this Segment decreased  to  $6,000  in  1997  from
$141,000 in 1996 as a result of increased sales and lower operating costs.

   Revenues from this Segment totaled $2,918,000 for the 1997 first quarter,  a
5%  increase  over last year's first quarter.  The factors contributing to this
improvement included  increases in the volume of dry ice sales, in the sales of
equipment, and in the Company's  allocated  share  of  sales  from  its working
interest in a producing CO2 unit.   This  improvement  in  revenues was par-
tially offset by increases  in expenses associated with advertising  and  sales,
insurance, and an incentive-sales arrangement for employees.

ENVIRONMENTAL/RESOURCE RECOVERY

   A significant increase in revenues generated by the  E/RR  Segment  led to a
sharply reduced operating loss by this Segment in the first quarter of 1997  as
compared  to  the  same period in 1996.  This increase in revenue was primarily
caused by an increase  in  environmental services activity and the operation of
the Horizontal Drilling rigs acquired in the acquisition of Horizontal Drilling
Technologies,  Inc.  ("HDT")  in  May,  1996  (see  Note  3  to  the  Financial
Statements).  This increase was  offset  somewhat, however, by a decline in the
revenues generated by resource recovery activities  due  to  the  completion in
February 1996 of a contract with the U. S. Department of Energy related  to the
Company's  patented  Mulled  Coal technology.  Management has been pursuing and
will continue to pursue the commercial  development  of  this technology during
the remainder of 1997.

OTHER ACTIVITIES

      Other   operations,   consisting  primarily  of  general  and   corporate
activities, generated a slightly  smaller  operating loss for the first quarter
of 1997 as compared to the same period last  year.   A  slight  decrease in the
revenues  generated  by  the corporate group was more than offset by  a  larger
decrease in corporate overhead expenses.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

   The Company's selling,  general  and administrative expenses ("SG&A") in the
current  quarter  increased to $1,031,000  from  $947,000  in  the  1996  first
quarter.  This resulted  primarily  from  an  increase  in the SG&A of the E/RR
Segment  as  a result of including the operations of HDT (see  Note  3  to  the
Financial Statements) which added $94,000 to SG&A.

DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES

   The first quarter  of  1997 had a minor increase in DD&A expense of $59,000,
reflecting additions to property,  plant  and  equipment  made  during the past
year.

OTHER INCOME AND EXPENSES

   The  other  income  and expenses for the first quarter of 1997 netted  to  a
$99,000 loss compared to  $811,000  net income for the same period in 1996.  As
previously mentioned, the Company benefited  in  the first quarter of 1996 from
the settlement of a take-or-pay contract in the CO2 Segment.   This  settle-
ment resulted  in  a gain of $939,000.   The  Company realized a gain of 
$53,000 on the sale of assets  during  the  first quarter of 1997 compared to 
$12,000 for the same period in 1996.

DISCONTINUED OPERATIONS

   As  previously noted, the Company discontinued its real estate  construction
and development  activities  in January of 1997 in order to focus its attention
on other segments which are considered to have greater potential for growth and
profitability.  As discussed in Note 2 to the Financial Statements, the Company
recognized the estimated loss  of  disposing of the R/E Segment's assets in the
fourth quarter of 1996.  In the first  quarter of 1997, the Company sold all of
the  R/E  Segment's assets, except for two  completed  speculative  homes,  for
$1,196,000.  One of these homes is under contract for closing on May 30, 1997.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED

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

PART II. OTHER INFORMATION.

ITEM 2.  CHANGES IN SECURITIES.

   The Company's preferred stock is mandatorily redeemable through December 31,
2002  from  one-third  of  Beard's "consolidated net income" as defined in  the
Stock Purchase Agreement.  Accordingly,  one-third  of future "consolidated net
income" will accrete directly to preferred stockholders and reduce earnings per
common share.  As a result of these redemption requirements, the payment of any
dividends to the common stockholders in the near future  is very unlikely.  See
Note 2 to the accompanying financial statements.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

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

     4     Promissory  Note  from Registrant to the Trustees of the William  M.
           Beard and Lu Beard 1988 Charitable Unitrust, dated March 7, 1997.

    10     Form of Change in  Control  Compensation  Agreement  dated  as  of
           January 24, 1997, by and between Carbonic Reserves and three em-
           ployees.

    27     Financial Data Schedule.

(b)   No  reports  on  Form  8-K  were  filed during the period covered by this
      report.
<PAGE>


                                  SIGNATURES

      Pursuant to the requirements of the  Securities Exchange Act of 1934, the
registrant  has duly caused this report to be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.


(Registrant)                              THE BEARD COMPANY

                                          HERB MEE, JR.
   (Date) May 13, 1997                    Herb Mee, Jr., President and
                                          Chief Financial Officer

                                          JACK A. MARTINE
   (Date) May 13, 1997                    Jack A. Martine, Controller and
                                          Chief Accounting Officer
<PAGE>

                      THE BEARD COMPANY AND SUBSIDIARIES

                                  EXHIBIT INDEX

                  Forming a part of Form 10-Q Quarterly Report 
                  to the U.S. Securities and Exchange Commission
<TABLE>
<CAPTION>
Exhibit
Number        Brief Description                 Method of filing
-------       -----------------                 ----------------
<S>          <C>                                <C>

4            Promissory Note from Registrant 
             to the Trustees of the William M.
             Beard and Lu Beard 1988 Charitable
             Unitrust, dated March 7, 1997      Filed herewith electronically

10           Form of Change of Control Com-
             pensation Agreement dated as of
             January 24, 1997, by and between
             Carbonic Reserves and three
             employees                          Filed herewith electronically

27           Financial Data Schedule            Filed herewith electronically
</TABLE>