Adams Resources & Energy (Adam Resources) has announced that it has concluded its review of strategic alternatives related to the Company's exploration and production subsidiary, Adams Resources Exploration Corporation (AREC).
AREC plans to file a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware and plans to conduct a sale process. AREC has retained Oil and Gas Asset Clearinghouse, LLC to advise it with respect to the sale process. AREC primarily holds non-operated working interest in approximately 470 wells located in the Permian Basin, Haynesville Shale and across the Gulf Coast.
Over the past few years, the Company has de-emphasized its upstream operations. The Company does not expect this Chapter 11 filing by its subsidiary to have a material adverse impact on any of its core businesses.The Company plans to direct its attention to its core businesses or other business development initiatives. The Company continues to have no debt and held approximately $87 million in cash at the end of the fiscal year ended December 31, 2016.
The Company expects to announce its first quarter 2017 earnings during the week of May 8, 2017.