FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment
Company Act file number: 811-02736
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ADAMS
NATURAL RESOURCES FUND, INC.
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(Exact name of registrant as specified in charter)
500
East Pratt Street, Suite 1300, Baltimore, Maryland 21202
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(Address of principal executive offices)
Janis
F. Kerns
Adams Natural Resources Fund, Inc.
500 East Pratt Street, Suite 1300
Baltimore, Maryland 21202
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(Name and address of agent for service)
Registrant's telephone
number, including area code: (410) 752-5900
Date of fiscal year end: December 31
Date of reporting period: June 30, 2018
Item 1. Reports to Stockholders.
| | |
Market Value
|
| |
Percent of
Net Assets |
| ||||||
Exxon Mobil Corporation | | | | $ | 122,037,505 | | | | | | 17.7% | | |
Chevron Corporation | | | | | 71,976,599 | | | | | | 10.4 | | |
ConocoPhillips | | | | | 36,070,122 | | | | | | 5.2 | | |
Schlumberger Limited | | | | | 35,217,562 | | | | | | 5.1 | | |
Occidental Petroleum Corporation | | | | | 29,857,024 | | | | | | 4.3 | | |
DowDuPont Inc. | | | | | 29,745,411 | | | | | | 4.3 | | |
EOG Resources, Inc. | | | | | 22,360,071 | | | | | | 3.2 | | |
Halliburton Company | | | | | 20,663,164 | | | | | | 3.0 | | |
Valero Energy Corporation | | | | | 20,126,728 | | | | | | 2.9 | | |
Phillips 66 | | | | | 18,921,427 | | | | | | 2.7 | | |
| | | $ | 406,975,613 | | | | | | 58.8% | | | |
|
|
Assets
|
| | | | | | | | | | | | |
| Investments* at value: | | | | | | | | | | | | | |
|
Common stocks (cost $484,360,074)
|
| | | $ | 682,674,436 | | | | | | | | |
|
Short-term investments (cost $6,550,543)
|
| | | | 6,550,743 | | | | | $ | 689,225,179 | | |
| Cash | | | | | | | | | | | 144,098 | | |
| Dividends and other receivables | | | | | | | | | | | 737,102 | | |
| Prepaid expenses and other assets | | | | | | | | | | | 779,575 | | |
|
Total Assets
|
| | | | | | | | | | 690,885,954 | | |
| | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | |
|
Net unrealized loss on open total return swap agreements
|
| | | | | | | | | | 21,953 | | |
| Due to officers and directors (note 8) | | | | | | | | | | | 814,869 | | |
| Accrued expenses and other liabilities | | | | | | | | | | | 903,562 | | |
|
Total Liabilities
|
| | | | | | | | | | 1,740,384 | | |
|
Net Assets
|
| | | | | | | | | $ | 689,145,570 | | |
| | | | | | | | | | | | | | |
| Net Assets | | | | | | | | | | | | | |
|
Common Stock at par value $0.001 per share, authorized
50,000,000 shares; issued and outstanding 28,995,695 shares (includes 364 restricted shares and 22,307 deferred stock units) (note 7) |
| | | | | | | | | $ | 28,996 | | |
| Additional capital surplus | | | | | | | | | | | 504,870,968 | | |
| Undistributed net investment income | | | | | | | | | | | 1,021,236 | | |
| Undistributed net realized gain (loss) | | | | | | | | | | | (15,068,239) | | |
| Unrealized appreciation | | | | | | | | | | | 198,292,609 | | |
|
Net Assets Applicable to Common Stock
|
| | | | | | | | | $ | 689,145,570 | | |
|
Net Asset Value Per Share of Common Stock
|
| | | | | | | | | $ | 23.77 | | |
|
| Investment Income | | | | | | | |
|
Income:
|
| | | | | | |
|
Dividends (net of $5,443 in foreign taxes)
|
| | | $ | 8,490,553 | | |
|
Other income
|
| | | | 55,695 | | |
|
Total Income
|
| | | | 8,546,248 | | |
|
Expenses:
|
| | | | | | |
|
Investment research compensation and benefits
|
| | | | 1,191,095 | | |
|
Administration and operations compensation and benefits
|
| | | | 673,402 | | |
|
Directors’ compensation
|
| | | | 263,667 | | |
|
Occupancy and other office expenses
|
| | | | 158,586 | | |
|
Shareholder reports and communications
|
| | | | 97,840 | | |
|
Investment data services
|
| | | | 97,134 | | |
|
Transfer agent, custody, and listing fees
|
| | | | 63,426 | | |
|
Audit and tax services
|
| | | | 54,379 | | |
|
Accounting, recordkeeping and other professional fees
|
| | | | 34,304 | | |
|
Insurance
|
| | | | 25,633 | | |
|
Legal services
|
| | | | 7,884 | | |
|
Total Expenses
|
| | | | 2,667,350 | | |
|
Net Investment Income
|
| | | | 5,878,898 | | |
| | | | | | | | |
| Realized Gain (Loss) and Change in Unrealized Appreciation | | | | | | | |
|
Net realized gain (loss) on investments
|
| | | | (13,795,821) | | |
|
Net realized gain (loss) on total return swap agreements
|
| | | | (905,312) | | |
|
Change in unrealized appreciation on investments
|
| | | | 29,467,505 | | |
|
Change in unrealized appreciation on total return swap agreements
|
| | | | (21,953) | | |
|
Net Gain (Loss)
|
| | |
|
14,744,419
|
| |
| Change in Net Assets from Operations | | | |
$
|
20,623,317
|
| |
|
| | |
(unaudited)
Six Months Ended June 30, 2018 |
| |
Year Ended
December 31, 2017 |
| ||||||
From Operations: | | | | | | | | | | | | | |
Net investment income
|
| | | $ | 5,878,898 | | | | | $ | 13,230,614 | | |
Net realized gain (loss)
|
| | | | (14,701,133) | | | | | | 19,900,174 | | |
Change in unrealized appreciation
|
| | | | 29,445,552 | | | | | | (19,426,261) | | |
Change in Net Assets from Operations
|
| | | | 20,623,317 | | | | | | 13,704,527 | | |
| | | | | | | | | | | | | |
Distributions to Shareholders from: | | | | | | | | | | | | | |
Net investment income
|
| | | | (5,219,084) | | | | | | (13,133,440) | | |
Net realized gain
|
| | | | (579,880) | | | | | | (20,556,258) | | |
Change in Net Assets from Distributions
|
| | | | (5,798,964) | | | | | | (33,689,698) | | |
| | | | | | | | | | | | | |
From Capital Share Transactions: | | | | | | | | | | | | | |
Value of shares issued in payment of distributions (note 5)
|
| | | | 33,811 | | | | | | 8,430,416 | | |
Deferred compensation (notes 5, 7)
|
| | | | (100,880) | | | | | | 61,012 | | |
Change in Net Assets from Capital Share Transactions
|
| | | | (67,069) | | | | | | 8,491,428 | | |
Total Change in Net Assets
|
| | | | 14,757,284 | | | | | | (11,493,743) | | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period
|
| | | | 674,388,286 | | | | | | 685,882,029 | | |
End of period (including undistributed net investment income of $1,021,236 and $361,422 respectively)
|
| | | $ | 689,145,570 | | | | | $ | 674,388,286 | | |
|
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stocks | | | | $ | 682,674,436 | | | | | $ | — | | | | | $ | — | | | | | $ | 682,674,436 | | |
Short-term investments
|
| | | | 6,550,743 | | | | | | — | | | | | | — | | | | | | 6,550,743 | | |
Total investments | | | | $ | 689,225,179 | | | | | $ | — | | | | | $ | — | | | | | $ | 689,225,179 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total return swap agreements*
|
| | | $ | — | | | | | $ | (21,953) | | | | | $ | — | | | | | $ | (21,953) | | |
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||
| | |
Six months
ended June 30, 2018 |
| |
Year ended
December 31, 2017 |
| |
Six months
ended June 30, 2018 |
| |
Year ended
December 31, 2017 |
| ||||||||||||
Shares issued in payment of distributions
|
| | | | 1,713 | | | | | | 449,140 | | | | | $ | 33,811 | | | | | $ | 8,430,416 | | |
Net activity under the 2005 Equity Incentive Compensation Plan
|
| | | | (5,214) | | | | | | (5,249) | | | | | | (100,880) | | | | | | 61,012 | | |
Net change | | | | | (3,501) | | | | | | 443,891 | | | | | $ | (67,069) | | | | | $ | 8,491,428 | | |
|
Awards
|
| |
Shares/Units
|
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Balance at December 31, 2017 | | | | | 38,087 | | | | | $ | 26.44 | | |
Reinvested dividend equivalents | | | | | 155 | | | | | | 19.25 | | |
Vested & issued | | | | | (15,571) | | | | | | 24.28 | | |
Balance at June 30, 2018 | | | | | 22,671 | | | | | $ | 27.88 | | |
|
| Remainder of 2018 | | | | $ | 53,512 | | |
| 2019 | | | | | 102,934 | | |
| 2020 | | | | | 102,197 | | |
| 2021 | | | | | 100,217 | | |
| 2022 | | | | | 102,737 | | |
| Thereafter | | | | | 437,320 | | |
| Total | | | | $ | 898,917 | | |
|
| | |
(unaudited)
Six Months Ended |
| | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
| | |
June 30,
2018 |
| |
June 30,
2017 |
| |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||||||||||||
Per Share Operating Performance
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period
|
| | | | $23.26 | | | | | | $24.02 | | | | | | $24.02 | | | | | | $20.74 | | | | | | $27.56 | | | | | | $32.26 | | | | | | $27.84 | | |
Net investment income
|
| | | | 0.20 | | | | | | 0.20 | | | | | | 0.46 | | | | | | 0.41 | | | | | | 0.37 | | | | | | 0.50 | | | | | | 0.44 | | |
Net realized gain (loss) and change in unrealized appreciation
|
| | | | 0.51 | | | | | | (2.49) | | | | | | 0.02 | | | | | | 4.07 | | | | | | (5.80) | | | | | | (3.23) | | | | | | 5.93 | | |
Change in accumulated other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.05 | | | | | | (0.01) | | | | | | 0.03 | | |
Total from operations | | | | | 0.71 | | | | | | (2.29) | | | | | | 0.48 | | | | | | 4.48 | | | | | | (5.38) | | | | | | (2.74) | | | | | | 6.40 | | |
Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income
|
| | | | (0.18) | | | | | | (0.16) | | | | | | (0.46) | | | | | | (0.41) | | | | | | (0.38) | | | | | | (0.51) | | | | | | (0.46) | | |
Net realized gain
|
| | | | (0.02) | | | | | | (0.04) | | | | | | (0.72) | | | | | | (0.73) | | | | | | (1.00) | | | | | | (1.38) | | | | | | (1.42) | | |
Total distributions | | | | | (0.20) | | | | | | (0.20) | | | | | | (1.18) | | | | | | (1.14) | | | | | | (1.38) | | | | | | (1.89) | | | | | | (1.88) | | |
Capital share repurchases (note 5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.03 | | | | | | 0.05 | | |
Reinvestment of distributions
|
| | | | — | | | | | | — | | | | | | (0.06) | | | | | | (0.06) | | | | | | (0.06) | | | | | | (0.10) | | | | | | (0.15) | | |
Total capital share transactions | | | | | — | | | | | | — | | | | | | (0.06) | | | | | | (0.06) | | | | | | (0.06) | | | | | | (0.07) | | | | | | (0.10) | | |
Net asset value, end of period
|
| | | | $23.77 | | | | | | $21.53 | | | | | | $23.26 | | | | | | $24.02 | | | | | | $20.74 | | | | | | $27.56 | | | | | | $32.26 | | |
Market price, end of period | | | | | $20.09 | | | | | | $18.70 | | | | | | $19.84 | | | | | | $20.17 | | | | | | $17.74 | | | | | | $23.84 | | | | | | $27.38 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investment Return (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Based on market price
|
| | | | 2.3% | | | | | | -6.3% | | | | | | 4.6% | | | | | | 20.2% | | | | | | -20.0% | | | | | | -6.3% | | | | | | 22.7% | | |
Based on net asset value
|
| | | | 3.3% | | | | | | -9.5% | | | | | | 3.0% | | | | | | 22.5% | | | | | | -19.1% | | | | | | -8.0% | | | | | | 24.2% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios/Supplemental Data (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (in millions)
|
| | | | $689 | | | | | | $615 | | | | | | $674 | | | | | | $686 | | | | | | $583 | | | | | | $755 | | | | | | $864 | | |
Ratio of expenses to average net assets
|
| | | | 0.80% | | | | | | 0.78% | | | | | | 0.78% | | | | | | 0.82% | | | | | | 1.26% (c) | | | | | | 0.63% | | | | | | 0.78% (c) | | |
Ratio of net investment income
to average net assets |
| | | | 1.77% | | | | | | 1.80% | | | | | | 2.05% | | | | | | 1.85% | | | | | | 1.49% (c) | | | | | | 1.53% | | | | | | 1.44% (c) | | |
Portfolio turnover
|
| | | | 40.5% | | | | | | 20.6% | | | | | | 24.4% | | | | | | 19.0% | | | | | | 16.0% | | | | | | 19.6% | | | | | | 18.7% | | |
Number of shares outstanding
at end of period (in 000’s) |
| | | | 28,996 | | | | | | 28,551 | | | | | | 28,999 | | | | | | 28,555 | | | | | | 28,097 | | | | | | 27,381 | | | | | | 26,775 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Common Stocks — 99.0% | | ||||||||||||
Energy — 80.5%
|
| ||||||||||||
Exploration & Production — 29.7%
|
| ||||||||||||
Anadarko Petroleum Corporation
|
| | | | 139,600 | | | | | $ | 10,225,700 | | |
Apache Corporation
|
| | | | 44,200 | | | | | | 2,066,350 | | |
Cabot Oil & Gas Corporation
|
| | | | 62,300 | | | | | | 1,482,740 | | |
Cheniere Energy, Inc. (b)
|
| | | | 163,500 | | | | | | 10,658,565 | | |
Concho Resources Inc. (b)
|
| | | | 70,100 | | | | | | 9,698,335 | | |
ConocoPhillips (b)
|
| | | | 518,100 | | | | | | 36,070,122 | | |
Continental Resources, Inc. (b)
|
| | | | 37,700 | | | | | | 2,441,452 | | |
Devon Energy Corporation
|
| | | | 253,800 | | | | | | 11,157,048 | | |
Diamondback Energy, Inc.
|
| | | | 57,000 | | | | | | 7,499,490 | | |
EOG Resources, Inc.
|
| | | | 179,700 | | | | | | 22,360,071 | | |
EQT Corporation
|
| | | | 81,000 | | | | | | 4,469,580 | | |
Hess Corporation
|
| | | | 131,400 | | | | | | 8,789,346 | | |
Marathon Oil Corporation
|
| | | | 614,500 | | | | | | 12,818,470 | | |
Noble Energy, Inc.
|
| | | | 190,700 | | | | | | 6,727,896 | | |
Occidental Petroleum Corporation
|
| | | | 356,800 | | | | | | 29,857,024 | | |
Parsley Energy, Inc. Class A (b)
|
| | | | 173,700 | | | | | | 5,259,636 | | |
Pioneer Natural Resources Company
|
| | | | 93,100 | | | | | | 17,618,244 | | |
RSP Permian, Inc. (b)
|
| | | | 44,500 | | | | | | 1,958,890 | | |
Whiting Petroleum Corporation (b)
|
| | | | 62,875 | | | | | | 3,314,770 | | |
| | | | | 204,473,729 | | | ||||||
Integrated Oil & Gas — 28.1%
|
| ||||||||||||
Chevron Corporation
|
| | | | 569,300 | | | | | | 71,976,599 | | |
Exxon Mobil Corporation
|
| | | | 1,475,130 | | | | | | 122,037,505 | | |
| | | | | 194,014,104 | | | ||||||
Oil Equipment & Services — 11.1%
|
| ||||||||||||
Baker Hughes, a GE company Class A
|
| | | | 49,100 | | | | | | 1,621,773 | | |
Halliburton Company
|
| | | | 458,570 | | | | | | 20,663,164 | | |
Helmerich & Payne, Inc.
|
| | | | 72,500 | | | | | | 4,622,600 | | |
National Oilwell Varco, Inc.
|
| | | | 44,200 | | | | | | 1,918,280 | | |
Oil States International, Inc. (b)
|
| | | | 120,900 | | | | | | 3,880,890 | | |
Schlumberger Limited
|
| | | | 525,400 | | | | | | 35,217,562 | | |
TechnipFMC plc
|
| | | | 264,400 | | | | | | 8,392,056 | | |
| | | | | 76,316,325 | | | ||||||
Pipelines — 3.3%
|
| ||||||||||||
Kinder Morgan, Inc.
|
| | | | 289,300 | | | | | | 5,111,931 | | |
ONEOK, Inc.
|
| | | | 53,100 | | | | | | 3,707,973 | | |
Williams Companies, Inc.
|
| | | | 513,500 | | | | | | 13,920,985 | | |
| | | | | 22,740,889 | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Refiners — 8.3%
|
| ||||||||||||
Andeavor
|
| | | | 97,480 | | | | | $ | 12,787,426 | | |
Marathon Petroleum Corporation
|
| | | | 79,000 | | | | | | 5,542,640 | | |
Phillips 66
|
| | | | 168,475 | | | | | | 18,921,427 | | |
Valero Energy Corporation
|
| | | | 181,600 | | | | | | 20,126,728 | | |
| | | | | 57,378,222 | | | ||||||
Materials — 18.5%
|
| ||||||||||||
Chemicals — 14.4%
|
| ||||||||||||
Air Products and Chemicals, Inc.
|
| | | | 70,100 | | | | | | 10,916,673 | | |
CF Industries Holdings, Inc.
|
| | | | 110,700 | | | | | | 4,915,080 | | |
DowDuPont Inc.
|
| | | | 451,235 | | | | | | 29,745,411 | | |
Eastman Chemical Company
|
| | | | 79,400 | | | | | | 7,936,824 | | |
Ecolab Inc.
|
| | | | 23,300 | | | | | | 3,269,689 | | |
LyondellBasell Industries N.V.
|
| | | | 129,200 | | | | | | 14,192,620 | | |
Materials Select Sector SPDR Fund
|
| | | | 162,000 | | | | | | 9,407,340 | | |
Mosaic Company
|
| | | | 167,400 | | | | | | 4,695,570 | | |
PPG Industries, Inc.
|
| | | | 76,000 | | | | | | 7,883,480 | | |
Praxair, Inc.
|
| | | | 21,100 | | | | | | 3,336,965 | | |
Rio Tinto plc Sponsored ADR
|
| | | | 61,900 | | | | | | 3,434,212 | | |
| | | | | 99,733,864 | | | ||||||
General Industrials — 1.3%
|
| ||||||||||||
Packaging Corporation of America
|
| | | | 38,100 | | | | | | 4,259,199 | | |
WestRock Company
|
| | | | 76,600 | | | | | | 4,367,732 | | |
| | | | 8,626,931 | | | |||||||
Industrial Metals — 2.5%
|
| ||||||||||||
Freeport-McMoRan, Inc.
|
| | | | 398,700 | | | | | | 6,881,562 | | |
Nucor Corporation
|
| | | | 24,600 | | | | | | 1,537,500 | | |
Reliance Steel & Aluminum Co.
|
| | | | 34,100 | | | | | | 2,985,114 | | |
Steel Dynamics, Inc.
|
| | | | 125,300 | | | | | | 5,757,535 | | |
| | | | | 17,161,711 | | | ||||||
Mining — 0.3%
|
| ||||||||||||
Newmont Mining Corporation
|
| | | | 59,100 | | | | | | 2,228,661 | | |
Total Common Stocks | | ||||||||||||
(Cost $484,360,074)
|
| | | | | | | | | | 682,674,436 | | |
| | | | | | | | | | | | | |
| | |
Shares
|
| |
Value (a)
|
| ||||||
Short-Term Investments — 1.0% | | ||||||||||||
Money Market Funds — 1.0%
|
| ||||||||||||
Fidelity Investments Money Market Funds - Prime Money Market Portfolio (Institutional Class), 2.06% (c)
|
| | | | 3,499,400 | | | | | $ | 3,500,800 | | |
Northern Institutional Treasury Portfolio, 1.74% (c)
|
| | | | 3,049,944 | | | | | | 3,049,944 | | |
Total Short-Term Investments | | ||||||||||||
(Cost $6,550,543)
|
| | | | | | | | | | 6,550,743 | | |
Total — 100.0% | | ||||||||||||
(Cost $490,910,617)
|
| | | | | | | | | | 689,225,179 | | |
Other Assets Less Liabilities — 0.0% | | | | | | | | | |
|
(79,609)
|
| |
Net Assets — 100.0% | | | | | | | | | |
$
|
689,145,570
|
| |
|
Description
|
| | | | | | | | | | |
Value and
Unrealized Appreciation (Assets) |
| |
Value and
Unrealized Depreciation (Liabilities) |
| ||||||||||||
Terms
|
| |
Contract
Type |
| |
Underlying
Security |
| |
Termination
Date |
| |
Notional
Amount |
| |||||||||||||||
Receive total return on underlying
security and pay financing amount based on notional amount and daily U.S. Federal Funds rate plus 0.55%. |
| |
Long
|
| | Cabot Oil & Gas Corporation (149,300 shares) |
| |
7/11/2019
|
| | | $ | 3,495,874 | | | | | $ | 52,598 | | | | | $ | — | | |
Pay total return on underlying security and receive financing amount based on notional amount and daily U.S. Federal Funds rate less 107.5%.
|
| |
Short
|
| | SPDR S&P Oil & Gas Exploration & Production ETF Fund (83,400 shares) |
| |
7/11/2019
|
| | | | (3,521,031) | | | | | | — | | | | | | (74,551) | | |
Gross unrealized gain (loss) on open total return swap agreements | | | | $ | 52,598 | | | | | $ | (74,551) | | | |||||||||||||||
Net unrealized loss on open total return swap agreements (d) | | | | | | | | | | $ | (21,953) | | | |||||||||||||||
|
| | |
Purchases
(Cost) |
| |
Sales
(Proceeds) |
| |
Market Value Held
at June 30, 2018 |
| |||||||||
Andeavor | | | | $ | 4,280,396 | | | | | $ | 5,305,460 | | | | | $ | 12,787,426 | | |
CF Industries Holdings, Inc. | | | | | 4,625,835 | | | | | | | | | | | | 4,915,080 | | |
Chevron Corporation | | | | | 2,777,016 | | | | | | | | | | | | 71,976,599 | | |
Continental Resources, Inc. | | | | | 2,428,249 | | | | | | | | | | | | 2,441,452 | | |
Devon Energy Corporation | | | | | 9,407,878 | | | | | | | | | | | | 11,157,048 | | |
Ecolab Inc. | | | | | 3,191,291 | | | | | | | | | | | | 3,269,689 | | |
Energy Select Sector SPDR Fund | | | | | 3,868,937 | | | | | | 3,791,748 | | | | | | — | | |
Helmerich & Payne, Inc. | | | | | 5,282,945 | | | | | | | | | | | | 4,622,600 | | |
Marathon Oil Corporation | | | | | 10,188,650 | | | | | | | | | | | | 12,818,470 | | |
Marathon Petroleum Corporation | | | | | 5,781,165 | | | | | | | | | | | | 5,542,640 | | |
Materials Select Sector SPDR Fund
|
| | | | 11,717,941 | | | | | | 1,921,158 | | | | | | 9,407,340 | | |
Mosaic Company | | | | | 4,620,998 | | | | | | | | | | | | 4,695,570 | | |
Newmont Mining Corporation | | | | | 2,269,298 | | | | | | | | | | | | 2,228,661 | | |
Noble Energy, Inc. | | | | | 6,568,464 | | | | | | | | | | | | 6,727,896 | | |
Occidental Petroleum Corporation | | | | | 7,159,858 | | | | | | | | | | | | 29,857,024 | | |
ONEOK, Inc. | | | | | 3,536,147 | | | | | | | | | | | | 3,707,973 | | |
Parsley Energy, Inc. Class A | | | | | 5,574,710 | | | | | | | | | | | | 5,259,636 | | |
Praxair, Inc. | | | | | 3,207,749 | | | | | | | | | | | | 3,336,965 | | |
Rio Tinto plc Sponsored ADR | | | | | 3,354,454 | | | | | | | | | | | | 3,434,212 | | |
SPDR S&P Oil & Gas Exploration &
Production ETF |
| | | | 7,987,180 | | | | | | 8,126,798 | | | | | | — | | |
TechnipFMC plc | | | | | 8,679,521 | | | | | | | | | | | | 8,392,056 | | |
VanEck Vectors Oil Services ETF | | | | | 2,939,972 | | | | | | 3,255,234 | | | | | | — | | |
WestRock Company | | | | | 5,011,777 | | | | | | | | | | | | 4,367,732 | | |
Albemarle Corporation | | | | | | | | | | | 7,149,629 | | | | | | — | | |
Callon Petroleum Company | | | | | | | | | | | 2,821,909 | | | | | | — | | |
Cimarex Energy Company | | | | | | | | | | | 7,659,621 | | | | | | — | | |
Concho Resources Inc. | | | | | | | | | | | 2,434,319 | | | | | | 9,698,335 | | |
ConocoPhillips | | | | | | | | | | | 2,567,847 | | | | | | 36,070,122 | | |
Diamondback Energy, Inc. | | | | | | | | | | | 3,471,612 | | | | | | 7,499,490 | | |
DowDuPont Inc. | | | | | | | | | | | 7,825,889 | | | | | | 29,745,411 | | |
Enbridge Inc. | | | | | | | | | | | 4,940,255 | | | | | | — | | |
Exxon Mobil Corporation | | | | | | | | | | | 5,033,373 | | | | | | 122,037,505 | | |
Hess Corporation | | | | | | | | | | | 2,210,827 | | | | | | 8,789,346 | | |
Monsanto Company | | | | | | | | | | | 10,759,595 | | | | | | — | | |
National Oilwell Varco, Inc. | | | | | | | | | | | 3,753,450 | | | | | | 1,918,280 | | |
Newfield Exploration Company | | | | | | | | | | | 4,172,885 | | | | | | — | | |
Oil States International, Inc. | | | | | | | | | | | 2,175,123 | | | | | | 3,880,890 | | |
PPG Industries, Inc. | | | | | | | | | | | 2,813,465 | | | | | | 7,883,480 | | |
Range Resources Corporation | | | | | | | | | | | 4,819,054 | | | | | | — | | |
RSP Permian, Inc. | | | | | | | | | | | 4,875,796 | | | | | | 1,958,890 | | |
| | |
Purchases
(Cost) |
| |
Sales
(Proceeds) |
| |
Market Value Held
at June 30, 2018 |
| ||||||
SPDR Gold Trust | | | | | | | $ | 4,453,785 | | | | | $ | — | | |
Targa Resources Corp. | | | | | | | | 4,750,339 | | | | | | — | | |
Valero Energy Corporation | | | | | | | | 5,072,969 | | | | | | 20,126,728 | | |
Weatherford International plc | | | | | | | | 2,849,033 | | | | | | — | | |
Year
|
| |
(000’s)
Value Of Net Assets |
| |
(000’s)
Shares Outstanding |
| |
Net Asset
Value Per Share |
| |
Market
Value Per Share |
| |
Income
Dividends Per Share |
| |
Capital
Gains Distributions Per Share |
| |
Return of
Capital Per Share |
| |
Total
Dividends and Distributions Per Share |
| |
Annual
Distribution Rate* |
| |||||||||||||||||||||||||||
2008 | | | | $ | 538,937 | | | | | | 23,959 | | | | | $ | 22.49 | | | | | $ | 19.41 | | | | | $ | .38 | | | | | $ | 2.61 | | | | | $ | — | | | | | $ | 2.99 | | | | | | 8.9% | | |
2009 | | | | | 650,718 | | | | | | 24,327 | | | | | | 26.75 | | | | | | 23.74 | | | | | | .37 | | | | | | 1.03 | | | | | | — | | | | | | 1.40 | | | | | | 6.6 | | |
2010 | | | | | 761,736 | | | | | | 24,790 | | | | | | 30.73 | | | | | | 27.01 | | | | | | .32 | | | | | | .95 | | | | | | — | | | | | | 1.27 | | | | | | 5.5 | | |
2011 | | | | | 732,811 | | | | | | 25,641 | | | | | | 28.58 | | | | | | 24.48 | | | | | | .39 | | | | | | 1.58 | | | | | | — | | | | | | 1.97 | | | | | | 7.1 | | |
2012 | | | | | 732,988 | | | | | | 26,326 | | | | | | 27.84 | | | | | | 23.92 | | | | | | .42 | | | | | | 1.18 | | | | | | — | | | | | | 1.60 | | | | | | 6.4 | | |
2013 | | | | | 863,690 | | | | | | 26,775 | | | | | | 32.26 | | | | | | 27.38 | | | | | | .46 | | | | | | 1.42 | | | | | | — | | | | | | 1.88 | | | | | | 7.2 | | |
2014 | | | | | 754,506 | | | | | | 27,381 | | | | | | 27.56 | | | | | | 23.84 | | | | | | .51 | | | | | | 1.38 | | | | | | — | | | | | | 1.89 | | | | | | 6.6 | | |
2015 | | | | | 582,677 | | | | | | 28,097 | | | | | | 20.74 | | | | | | 17.74 | | | | | | .38 | | | | | | 1.00 | | | | | | — | | | | | | 1.38 | | | | | | 6.2 | | |
2016 | | | | | 685,882 | | | | | | 28,555 | | | | | | 24.02 | | | | | | 20.17 | | | | | | .41 | | | | | | .73 | | | | | | — | | | | | | 1.14 | | | | | | 6.1 | | |
2017 | | | | | 674,388 | | | | | | 28,999 | | | | | | 23.26 | | | | | | 19.84 | | | | | | .46 | | | | | | .72 | | | | | | — | | | | | | 1.18 | | | | | | 6.1 | | |
June 30, 2018
|
| | | | 689,146 | | | | | | 28,996 | | | | | | 23.77 | | | | | | 20.09 | | | | | | .28** | | | | | | .02** | | | | | | — | | | | | | .30 | | | | | | — | | |
| | |
Votes For
|
| |
Votes Withheld
|
| ||||||
Enrique R. Arzac | | | | | 23,446,386 | | | | | | 1,044,730 | | |
Kenneth J. Dale | | | | | 23,611,931 | | | | | | 879,185 | | |
Frederic A. Escherich | | | | | 23,592,821 | | | | | | 898,295 | | |
Roger W. Gale | | | | | 23,375,664 | | | | | | 1,115,452 | | |
Lauriann C. Kloppenburg | | | | | 23,763,028 | | | | | | 728,088 | | |
Kathleen T. McGahran | | | | | 23,648,127 | | | | | | 842,989 | | |
Craig R. Smith | | | | | 23,408,240 | | | | | | 1,082,876 | | |
Mark E. Stoeckle | | | | | 23,623,430 | | | | | | 867,686 | | |
| Enrique R. Arzac (2),(3) | | |
Roger W. Gale (1),(2),(4)
|
| |
Craig R. Smith (3),(4)
|
|
|
Kenneth J. Dale (1), (3), (4)
|
| |
Lauriann C. Kloppenburg (2),(3)
|
| |
Mark E. Stoeckle (1)
|
|
|
Frederic A. Escherich (1),(2),(4)
|
| | Kathleen T. McGahran (1),(5) | | | | |
|
Mark E. Stoeckle
|
| | Chief Executive Officer | |
|
James P. Haynie, CFA
|
| | President | |
|
Brian S. Hook, CFA, CPA
|
| | Vice President, Chief Financial Officer and Treasurer | |
|
Lawrence L. Hooper, Jr.
|
| |
Vice President, General Counsel, Secretary and Chief Compliance Officer
|
|
| Gregory W. Buckley | | |
Vice President—Research
|
|
| Michael A. Kijesky, CFA | | |
Vice President—Research
|
|
| Michael E. Rega, CFA | | |
Vice President—Research
|
|
|
Christine M. Sloan, CPA
|
| | Assistant Treasurer and Director of Human Resources | |
Item 2. Code of Ethics.
Item not applicable to semi-annual report.
Item 3. Audit Committee Financial Expert.
Item not applicable to semi-annual report.
Item 4. Principal Accountant Fees and Services.
Item not applicable to semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Item not applicable to semi-annual report.
Item 6. Investments.
(a) This schedule is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Item not applicable to semi-annual report.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Item not applicable to semi-annual report.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Total Number of Shares (or Units Purchased) | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs | |||||||||||||
January 2018 | 0 | -- | 0 | 1,332,000 | ||||||||||||
February 2018 | 0 | -- | 0 | 1,332,000 | ||||||||||||
March 2018 | 0 | -- | 0 | 1,332,000 | ||||||||||||
April 2018 | 0 | -- | 0 | 1,332,000 | ||||||||||||
May 2018 | 0 | -- | 0 | 1,332,000 | ||||||||||||
June 2018 | 0 | -- | 0 | 1,332,000 | ||||||||||||
Total | 0 | -- | 0 |
(1) | There were no shares purchased other than through a publicly announced plan or program. |
(2a) | The Plan was announced on December 11, 2014. |
(2b) | The share amount approved in 2014 was 5% of outstanding shares, or 1,332,000 shares. |
(2c) | The Plan has no expiration date. |
(2d) | None. |
(2e) | None. |
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors made or implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A), or this Item.
Item 11. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this report.
(b) There have been no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies.
Item not applicable to semi-annual report.
Item 13. Exhibits.
(a) | (1) | Code of ethics exhibits: not applicable; see registrant’s response to Item 2 above. |
(2) | Separate certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached. | |
(3) | Written solicitation to purchase securities: not applicable. | |
(4) | Change in independent public accountant: not applicable. | |
(b) | A certification by the registrant's principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Adams Natural Resources Fund, Inc. | |
By: | /s/ Mark E. Stoeckle |
Mark E. Stoeckle | |
Chief Executive Officer | |
(Principal Executive Officer) | |
Date: | July 26, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Mark E. Stoeckle |
Mark E. Stoeckle | |
Chief Executive Officer | |
(Principal Executive Officer) | |
Date: | July 26, 2018 |
By: | /s/ Brian S. Hook |
Brian S. Hook | |
Vice President, Chief Financial Officer & Treasurer | |
(Principal Financial Officer) | |
Date: | July 26, 2018 |