Adams Natural Resources Fund Announces 2020 Performance

Rhea-AI Summary

Adams Natural Resources Fund (NYSE: PEO) reported a total return of -22.2% on net asset value for 2020. This performance contrasts with a -33.7% return from the S&P 500 Energy Sector but is significantly lower than the 20.7% return from the S&P 500 Materials Sector. The Fund's market price return was -26.6%. Despite the challenges in the energy market, the Fund distributed $0.73 per share, achieving a 6.1% annual distribution rate. The Fund's net assets decreased from $561 million in 2019 to $332 million in 2020.

Positive

• Annual distribution rate of 6.1% exceeds the 6% minimum commitment.
• Fund's performance was better than the S&P 500 Energy Sector.

Negative

• Total return on net asset value down by 22.2%.
• Total return on market price down by 26.6%.
• Net assets decreased significantly from $561 million to $332 million.

BALTIMORE, Jan. 21, 2021 /PRNewswire/ -- Adams Natural Resources Fund, Inc. (NYSE: PEO) announces the Fund's investment returns for 2020. "The Energy market was exceptionally challenging in 2020. Our Fund benefited from its exposure to the Materials sector, offsetting some of the weakness in Energy," said Mark Stoeckle, CEO of Adams Funds.

The total return on the Fund's net asset value for the year was -22.2%, with dividends and capital gains reinvested. The comparable figures for the S&P 500 Energy Sector and the S&P 500 Materials Sector were -33.7% and 20.7%, respectively.  The total return on the Fund's market price for the same period was -26.6%.

The Fund paid $0.73 per share in income dividends and realized capital gain distributions to shareholders in 2020, producing an annual distribution rate of 6.1%, exceeding the Fund's annual 6.0% minimum distribution rate commitment. Details regarding the annual 6.0% minimum distribution rate commitment can be found at adamsfunds.com.

The 2020 Annual Report is expected to be released on or about February 23, 2021.

ANNUALIZED ONE, THREE, AND FIVE-YEAR COMPARATIVE RETURNS (12/31/20)

	1 Year	3 Year	5 Year
Adams Natural Resources Fund (NAV)	-22.2%	-10.3%	-1.9%
Adams Natural Resources Fund (market price)	-26.6%	-11.3%	-2.6%
S&P 500 Energy Sector	-33.7%	-15.3%	-5.2%
S&P 500 Materials Sector	20.7%	8.7%	13.1%

NET ASSET VALUE ANNOUNCED

The Fund's net asset value at the end of 2020, compared with the year earlier, was:

	12/31/20	12/31/19
Net assets	$331,941,768	$561,468,757
Shares outstanding	24,121,714	29,874,578
Net asset value per share	$13.76	$18.79

TEN LARGEST EQUITY PORTFOLIO HOLDINGS (12/31/20)

	% of Net Assets
Exxon Mobil Corporation	16.9%
Chevron Corporation	14.1%
Linde plc	5.2%
ConocoPhillips	4.6%
Schlumberger NV	3.3%
EOG Resources, Inc.	3.2%
Phillips 66	3.0%
Sherwin-Williams Company	2.7%
Marathon Petroleum Corporation	2.6%
DuPont de Nemours, Inc.	2.3%
Total	57.9%

SECTOR WEIGHTINGS (12/31/20)

	% of Net Assets
Energy
Integrated Oil & Gas	31.3%
Exploration & Production	16.6%
Refining & Marketing	8.2%
Equipment & Services	7.6%
Storage & Transportation	5.8%
Materials
Chemicals	19.3%
Metals & Mining	4.4%
Construction Materials	3.5%
Containers & Packaging	2.8%

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About Adams Funds
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.

Contact:
Lyn Walther
Director of Shareholder Communications
investorrelations@adamsfunds.com

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SOURCE Adams Natural Resources Fund, Inc.

FAQ

What was the total return for Adams Natural Resources Fund (PEO) in 2020?

The total return was -22.2% on net asset value.

How did PEO perform compared to the S&P 500 Energy Sector in 2020?

PEO outperformed the S&P 500 Energy Sector, which declined by 33.7%.

What annual distribution rate did Adams Natural Resources Fund (PEO) achieve?

The Fund achieved an annual distribution rate of 6.1%.

What was the market price return for PEO in 2020?

The market price return for PEO was -26.6%.

How much did the Fund's net assets decrease in 2020?

Net assets decreased from $561 million in 2019 to $332 million in 2020.