Adams Natural Resources Fund Announces First Half 2025 Performance

Rhea-AI Summary

Adams Natural Resources Fund (NYSE: PEO) reported its first half 2025 performance with a 2.3% total return on net asset value (NAV), outperforming its benchmark's return of 1.8%. The Fund's market price achieved a 3.1% total return for the same period.

The Fund's net assets stood at $634.7 million as of June 30, 2025, with a NAV per share of $23.61. The portfolio maintains significant exposure to energy sector leaders, with Exxon Mobil (22.7%) and Chevron (11.5%) as its largest holdings. Energy sector investments focus primarily on Integrated Oil & Gas (35.1%) and Exploration & Production (19.8%).

Positive

• Outperformed benchmark return (2.3% vs 1.8%) in first half 2025
• Market price return of 3.1% exceeded NAV return
• Strong 3-year annualized return of 10.7% on NAV
• Well-diversified portfolio across energy and materials sectors

Negative

• Net assets declined from $689.9M to $634.7M year-over-year
• NAV per share decreased from $27.11 to $23.61 year-over-year
• Negative 1-year return of -2.2% on NAV
• Underperformed S&P 500 Materials Sector's 6.0% return in first half 2025

Insights

Portfolio Performance Analyst

Adams Natural Resources Fund outperformed its benchmark by 0.5% in H1 2025, showing resilience despite energy sector weakness.

Adams Natural Resources Fund (PEO) posted a 2.3% NAV return for the first half of 2025, outperforming both its benchmark return of 1.8% and the S&P Energy Sector's 0.8%. However, the fund lagged behind the S&P Materials Sector's strong 6.0% performance. The fund's market price outperformed its NAV with a 3.1% return, indicating positive investor sentiment despite challenging conditions.

The long-term performance tells an interesting story. While the fund's -2.2% one-year NAV return reflects recent energy sector headwinds (which saw -4.0%), PEO has maintained solid 3-year and 5-year annualized returns of 10.7% and 21.2% respectively. The fund's total NAV declined from $689.9 million to $634.7 million year-over-year, with NAV per share dropping from $27.11 to $23.61, representing a 12.9% decrease.

Portfolio composition reveals a significant concentration in energy (78.8%) versus materials (20.6%), with integrated oil & gas companies dominating at 35.1% of assets. The top 10 holdings constitute 62.9% of the portfolio, with Exxon Mobil (22.7%) and Chevron (11.5%) representing over a third of assets. This concentration helped the fund outperform the broader energy sector but created drag relative to the better-performing materials sector.

The fund's overweighting in integrated majors versus exploration & production companies (19.8%) suggests a defensive positioning that prioritizes dividend stability and operational diversification over pure upstream growth potential. This strategy appears to have provided some downside protection during the challenging energy environment reflected in the one-year numbers.

BALTIMORE, July 17, 2025 (GLOBE NEWSWIRE) -- Adams Natural Resources Fund, Inc. (NYSE: PEO) announces the Fund’s investment returns for the first half of 2025. The total return on the Fund’s net asset value for the first half of 2025 was 2.3%, with dividends and capital gains reinvested. The comparable figures for the S&P Energy Sector and the S&P 500 Materials Sector were 0.8% and 6.0%, respectively. Our benchmark, which is comprised of the S&P 500 Energy Sector (80%) and the S&P 500 Materials Sector (20%), returned 1.8%. The total return on the Fund’s market price for the same period was 3.1%.

The Semi-Annual Report to Shareholders is expected to be available on or about July 23, 2025.

ANNUALIZED COMPARATIVE RETURNS (6/30/2025)
	1 Year	3 Year	5 Year	10 Year
Adams Natural Resources Fund (NAV)	-2.2%	10.7%	21.2%	6.1%
Adams Natural Resources Fund (market price)	1.7%	12.3%	22.1%	6.8%
S&P 500 Energy Sector	-4.0%	9.7%	22.5%	5.5%
S&P 500 Materials Sector	1.9%	8.4%	11.6%	8.5%

NET ASSET VALUE ANNOUNCED

The Fund’s net asset value at June 30, 2025, compared with the year earlier, was:

	6/30/2025	6/30/2024
Net assets	$634,743,865	$689,986,546
Shares outstanding	26,888,697	25,453,641
Net asset value per share	$23.61	$27.11

TEN LARGEST EQUITY PORTFOLIO HOLDINGS (6/30/2025)
	% of Net Assets
Exxon Mobil Corporation	22.7%
Chevron Corporation	11.5%
ConocoPhilips	5.3%
Linde plc	4.7%
EOG Resources, Inc.	3.8%
Williams Companies, Inc.	3.6%
Kinder Morgan, Inc.	2.9%
Hess Corporation	2.9%
Phillips 66	2.8%
Marathon Petroleum Corporation	2.7%
Total	62.9%

INDUSTRY WEIGHTINGS (6/30/2025)
	% of Net Assets
Energy
Integrated Oil & Gas	35.1%
Exploration & Production	19.8%
Storage & Transportation	11.6%
Refining & Marketing	7.2%
Equipment & Services	5.1%
Materials
Chemicals	13.6%
Metals & Mining	3.6%
Containers & Packaging	1.8%
Construction Materials	1.6%

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 90 years across many market cycles. The Funds are committed to paying a minimum annual distribution rate of 8% of NAV paid evenly each quarter throughout the year, providing reliability for long-term shareholders. A portion of any distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain, and return of capital. The final determination of the source of all distributions for tax reporting purposes in a calendar year, including the percentage of qualified dividend income, will be made after year-end. 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: adamsfunds.com/about/contact or 800.638.2479

FAQ

What was Adams Natural Resources Fund's (PEO) performance in first half 2025?

PEO achieved a 2.3% total return on NAV and 3.1% on market price, outperforming its benchmark return of 1.8%.

What are the largest holdings in PEO's portfolio as of June 30, 2025?

The largest holdings are Exxon Mobil (22.7%), Chevron (11.5%), and ConocoPhillips (5.3%), with the top 10 holdings representing 62.9% of net assets.

How has PEO's net asset value changed from June 2024 to June 2025?

PEO's net assets decreased from $689.9 million to $634.7 million, with NAV per share declining from $27.11 to $23.61.

What are PEO's main sector allocations as of June 30, 2025?

The main allocations are Integrated Oil & Gas (35.1%), Exploration & Production (19.8%), and Chemicals (13.6%).

What are PEO's long-term performance metrics?

PEO has delivered 10.7% 3-year, 21.2% 5-year, and 6.1% 10-year annualized returns on NAV as of June 30, 2025.