BALTIMORE, MARYLAND, January 17, 2019 - Adams Natural Resources Fund, Inc. (NYSE:PEO) announces the Fund’s investment returns for 2018. “We recognize that over the past year it has been difficult to be an Energy investor. However, there is still a need and strong demand for fossil fuels, and, in our view, the Energy sector is oversold heading into 2019,” said Mark Stoeckle, CEO of Adams Funds.
The total return on the Fund’s net asset value for the year was -18.5%, with dividends and capital gains reinvested. The comparable figures for the Lipper Global Natural Resources Funds Average, the S&P 500 Energy Sector, and the S&P 500 Materials Sector were -21.0%, -18.1%, and -14.7%, respectively. The total return on the Fund’s market price for the same period was -21.4%.
The Fund paid $1.17 per share in income dividends, realized capital gain distributions, and return of capital distributions to shareholders in 2018, producing an annual distribution rate of 6.0%, consistent with the Fund’s annual 6% minimum distribution rate commitment. Details regarding the annual 6% minimum distribution rate commitment can be found at adamsfund.com.
The 2018 Annual Report is expected to be released on or about February 27, 2019.
ANNUALIZED ONE, THREE, AND FIVE-YEAR COMPARATIVE RETURNS (12/31/18)
| 1 Year | 3 Year | 5 Year | |
| Adams Natural Resources Fund (NAV) | -18.5% | 0.9% | -5.2% |
| Adams Natural Resources Fund (market price) | -21.4% | -0.4% | -5.8% |
| Lipper Global Natural Resources Funds Average | -21.0% | 1.6% | -6.9% |
| S&P 500 Energy Sector | -18.1% | 1.1% | -5.6% |
| S&P 500 Materials Sector | -14.7% | 7.2% | 3.8% |
NET ASSET VALUE ANNOUNCED
The Fund’s net asset value at the end of 2018, compared with the year earlier, was:
| 12/31/18 | 12/31/17 | |
| Net assets | $522,997,331 | $674,388,286 |
| Shares outstanding | 29,534,111 | 28,999,196 |
| Net asset value per share | $17.71 | $23.26 |
TEN LARGEST EQUITY PORTFOLIO HOLDINGS (12/31/18)
| % of Net Assets | |
| Exxon Mobil Corporation | 18.9% |
| Chevron Corporation | 12.6% |
| DowDuPont Inc. | 4.9% |
| EOG Resources, Inc. | 4.7% |
| ConocoPhillips | 4.5% |
| Occidental Petroleum Corporation | 4.3% |
| Marathon Petroleum Corporation | 4.0% |
| Schlumberger Limited | 3.0% |
| Kinder Morgan, Inc. | 2.8% |
| Phillips 66 | 2.8% |
| Total | 62.5% |
SECTOR WEIGHTINGS (12/31/18)
| % of Net Assets | |
| Energy | |
| Integrated Oil & Gas | 32.4% |
| Exploration & Production | 25.9% |
| Refining & Marketing | 9.0% |
| Equipment & Services | 6.2% |
| Storage & Transportation | 6.0% |
| Materials | |
| Chemicals | 14.4% |
| Construction Materials | 2.4% |
| Containers & Packaging | 2.0% |
| Metals & Mining | 1.2% |
During the fourth quarter, we initiated new positions in Celanese and Linde.
Since 1929, Adams Funds has consistently helped generations of investors reach their investment goals. Adams Funds is comprised of two closed-end funds, Adams Diversified Equity Fund, Inc. (NYSE: ADX) and Adams Natural Resources Fund, Inc. (NYSE: PEO). The Funds are actively managed by an experienced team with a disciplined approach and have paid dividends for more than 80 years across many market cycles. The Funds are committed to paying an annual distribution rate of 6% or more, providing reliable income to long-term investors. Shares can be purchased through our transfer agent or through a broker. For more information about Adams Funds, please visit: adamsfunds.com.
For further information, please contact:
Lyn Walther
Director of Shareholder Communications
800.638.2479
email