Adams Resources & Energy, Inc.

with the Securities and Exchange Commission. Adams Resources and Energy assumes no obligation to publicly update the revisions of any forward-looking statements. Management will refer to non-GAAP measures, including adjusted EBITDA, free cash flow, return on adjusted net income, and earnings per share. Reconciliation to the nearest GAAP measures can be found at the end of the earnings release. Finally, The earnings press release was issued yesterday, is posted on the Investor Relations section of our website, adamsresources.com. A copy of the release has also been included in the 8K submitted with the SEC. And now, with that, I would now like to turn the call over to the company's president and CEO, Kevin Roycraft. Kevin?

Thank you, Stephen. Good morning, all, and thank you for your interest in Adams Resources. I'm delighted to be hosting our first-ever conference call as we continue to create further transparency and understanding of our business to current and future shareholders. I will start today's call with some color on the quarter, and then I'll turn the call over to Tracy to run through the financials. Finally, I will return to provide additional color on outlook and the future ahead of us. For Q1 2023, while the top line results and earnings were negatively affected by lower oil prices, Adam saw significant quarter over quarter and quarter over prior year quarter improvement, driven primarily by the improved performance of our Gulfmark Energy Division and by the contributions of our recently acquired Phoenix Oil and Firebird bulk carriers entities. Adjusted cash flow for Q1 2023 improved by 17% over Q1 2022 and by 38% over Q4 2022. Adam's unrestricted cash balance improved from $20.5 million at the end of Q4 2022 to $42.1 million at Q1 2023 close. This growth was achieved despite the ongoing economic challenges in today's marketplace, including continued supply chain disruptions, tractor and trailer manufacturing backlogs, inflation concerns, declining crude oil prices, and a slower chemical production market. While we did not achieve all of our Q1 goals, I am pleased with the efforts of our team, including our overall ability to deliver improved cash flow in a challenging environment. As I mentioned previously, Gulfmark Energy's performance was a significant contributing factor to the improved quarter. Gulfmark's volumes for the quarter were 94,030 barrels per day versus 90,385 barrels per day in the first quarter of 2022. Though Gulfmark showed quarterly improvement, we still face headwinds as inflation and increasing costs are currently outpacing our ability to increase margins. To bring margins back in line with historical levels, Gulfmark's focus moving forward will be on cost cutting, improving crude buy-sell contracts, and volume growth. Additionally, the quarter saw construction wrap up on our portion of the BEX pipeline connection to the MAX midstream system. The pipeline continued its steady performance, delivering an average of 10,088 barrels per day to our barge loading location in Victoria, Texas, and providing efficiencies to Gulfmark by allowing those barrels to move by pipe instead of truck. After a slow post-acquisition start in the latter part of 2022, Phoenix Oil and Firebird bulk carriers have begun to find their footing by contributing $1.4 million in cash flow for the quarter. Food oil hauling volumes for Firebird remained steady at around 25,000 barrels per day, and first quarter volumes and margins for Phoenix improved over our first full quarter in Q4 2022. In the quarter, we started to benefit from synergies that exist between the divisions. These benefits include reducing dependence on third parties by beginning to bring maintenance and overflow load sharing in-house. Additionally, cross-customer selling is starting to have a positive effect by bringing new opportunities to expand our offering to all the different entities. Turning to our chemical transport division, Service Transport Company, Service Transport performed well in the quarter, considering the macroeconomic challenges facing both the chemical and transportation industries, but struggled to maintain the upward cash flow trajectory it has seen over the past five years. Overcoming the market headwinds, Service Transport produced positive cash flow of $2.5 million for the quarter. Throughout the quarter, service transport and the industry overall saw pricing pressures due to chemical shipment volume drops causing temporary excess hauling capacity in the market. Despite these pressures, service transport has been able to capitalize on shippers rate shopping by winning new business and adding new lanes to our recently expanded footprint. This should set service transport up for a strong performance as the chemical markets rebound. Overall, we believe Adams is well positioned for any potential challenges that lie ahead in 2023. Currently, there is a lot of positive activity surrounding our assets, especially around the VEX pipeline and the potential synergies yet to be captured with our Phoenix and Firebird acquisitions. I will touch on this later in the call. With that, I would like to turn it over to Tracy to cover the financials in more detail.

Thank you, Kevin, and good morning, everyone. I'm still working through some health issues with my voice, so please bear with me. Total revenue for the first quarter of 2023 was $650.2 million compared to $774.2 million in the prior year quarter. The decline was primarily driven by lower revenues in our crude marketing oil segment, which revenue for this segment is directly tied to the price of oil and were partially offset by revenues related to our acquisition of Phoenix Oil and Firebird bulk carriers last August. Looking at the quarter by individual segments. First quarter revenue for our marketing segment was $608.5 million compared to $747.6 million in the prior year quarter. The decrease is primarily due to a 21% decrease in the price of crude oil over the past year partially offset by higher volumes. Operating income for the quarter for the marketing segment was $1.9 million compared to $10.1 million in the first quarter of 2022. The decrease is due to an inventory valuation loss of $1 million in this year's first quarter versus an inventory liquidation gain of $8.7 million in the first quarter of last year, as well as higher operating expenses reflecting cost pressures across the business. Adjusting out the inventory valuation loss and liquidation gain, the marketing segment had operating earnings of $2.9 million in 2023 versus operating earnings of $1.4 million in 2022. Our transportation segment recorded $26.4 million of revenue in the first quarter compared to $26.7 million in the prior year quarter. Operating income was $0.9 million versus $2.9 million for the first quarter of 2022. The decrease is primarily due to higher depreciation and maintenance expenses. Our logistics and repurposing segment, which consists of Fireburn Phoenix that required August of 2022, added $15.2 million in revenue for the first quarter of 2023 and $0.5 million of operating income. General and administrative expenses increased by 0.8 million from the first quarter of 2022 to 4.8 million this quarter. The increase is related to higher personnel and outside service costs, as well as higher audit fees. Interest expense increased to 0.5 million this year versus 0.1 million in last year's first quarter due to the term loan that we put in place as part of the repurchase of approximately 1.9 million shares of our stock from KSA last year. Net loss for the quarter was 2 million or 79 cents per share compared to net income of 6.1 million or $1.39 per diluted share. On an adjusted basis, net loss was 1.4 million or a loss of 54 cents per share compared to a net loss of 1 million or a loss of 24 cents per share for the prior year quarter. For the quarter, cash flow from operations was $23.7 million and capital expenditures for the quarter totaled $1.9 million. Our available cash and cash equivalents as of March 31, 2023, totaled $42.1 million compared to $20.5 million on December 31, 2022. The increase is primarily related to the timing of receipts in early payments from crude oil customers. Total liquidity as of March 31 was $81.7 million, which includes $39.6 million available under our $60 million credit agreement. Now I'll turn the call back over to Kevin for some final comments. Kevin?