UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-02736
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PETROLEUM & RESOURCES CORPORATION
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(Exact name of registrant as specified in charter)
7 Saint Paul Street, Suite 1140, Baltimore, Maryland 21202
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(Address of principal executive offices) (Zip code)
Lawrence L. Hooper, Jr.
Petroleum & Resources Corporation
7 Saint Paul Street
Suite 1140
Baltimore, Maryland 21202
Registrant's telephone number, including area code: 410-752-5900
Date of fiscal year end: December 31, 2007
Date of reporting period: March 31, 2007
Item 1: SCHEDULE OF INVESTMENTS.
SCHEDULE OF INVESTMENTS
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March 31, 2007
(unaudited)
Shares Value (A)
- --------- ------------
Stocks And Convertible Securities --95.5%
Energy --88.5%
Integrated --37.4%
BP plc ADR 180,000 $ 11,655,000
Chevron Corp. 635,000 46,964,600
ConocoPhillips 556,891 38,063,500
Exxon Mobil Corp. 1,245,000 93,935,250
Hess Corp. (B) 195,000 10,816,650
Holly Corp. 360,000 21,348,000
Marathon Oil Co. 120,000 11,859,600
Murphy Oil Corp. 216,500 11,561,100
Royal Dutch Shell plc ADR 265,000 17,569,500
Suncor Energy 100,000 7,635,000
Total S.A. ADR 220,000 15,351,600
Valero Energy Corp. 435,000 28,053,150
------------
314,812,950
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Exploration & Production --15.6%
Apache Corp. 158,200 11,184,740
Devon Energy Corp. 330,000 22,842,600
EOG Resources, Inc. 310,000 22,115,400
Forest Oil Corp (C) 37,000 1,234,690
Newfield Exploration Co. (C) 175,000 7,299,250
Noble Energy, Inc. 430,000 25,649,500
Occidental Petroleum Corp. 400,000 19,724,000
XTO Energy Inc. 390,000 21,375,900
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131,426,080
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Services --21.0%
Baker Hughes, Inc. 205,000 13,556,650
BJ Services Co. 420,000 11,718,000
Bronco Drilling Co., Inc. (C) 4,600 76,222
ENSCO International, Inc. 209,150 11,377,760
GlobalSantaFe Corp. 290,000 17,887,200
Grant Prideco Inc. (C) 308,000 15,350,720
Hercules Offshore, Inc. (B) 250,000 6,565,000
Nabors Industries Ltd. (C) 520,000 15,428,400
Noble Corp. 200,000 15,736,000
Schlumberger Ltd. 560,000 38,696,000
TODCO (C) 200,000 8,066,000
Weatherford International,
Ltd. (C) 493,560 22,259,556
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176,717,508
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Shares Value (A)
- ------- ------------
Utilities --14.5%
AGL Resources Inc. 170,000 $ 7,262,400
Duke Energy Corp. 217,624 4,415,591
Energen Corp. 400,000 20,356,000
Equitable Resources Inc. 450,000 21,744,000
MDU Resources Group, Inc. 375,000 10,777,500
National Fuel Gas Co. (B) 200,000 8,652,000
New Jersey Resources Corp. 200,000 10,010,000
Questar Corp. 200,000 17,842,000
SEMCO Energy, Inc. 670,300 5,107,686
Spectra Energy Corp. 108,812 2,858,491
Williams Companies, Inc. 450,000 12,807,000
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121,832,668
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Basic Industries --7.0%
Basic Materials & Other --7.0%
Air Products and Chemicals, Inc. 125,000 9,236,250
Aqua America, Inc. 352,000 7,902,400
du Pont (E.I.) de Nemours and Co. 157,500 7,785,225
Florida Rock Industries Inc. 105,000 7,065,450
General Electric Co. 454,800 16,081,728
Martin Marietta Materials, Inc. 5,000 676,000
Rohm & Haas Co. 200,000 10,344,000
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59,091,053
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Total Stocks And Convertible Securities
(Cost $321,568,840) (D) $803,880,259
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9
SCHEDULE OF INVESTMENTS (continued)
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March 31, 2007
(unaudited)
Prin. Amt. Value (A)
- ---------- ----------
Short-Term Investments --4.7%
U.S. Government Obligations --1.1%
U.S. Treasury Bills,
5.00%, due 5/17/07 $9,000,000 $8,932,917
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Time Deposit --0.1%
Citibank, N.A.,
4.69%, due 4/2/07 461,982
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Commercial Paper --3.5%
American General Finance, Inc.,
5.25%, due 4/19/07 2,800,000 2,792,650
AIG Funding, Inc.,
5.24%, due 4/3/07 3,600,000 3,598,953
Chevron Funding Corp.,
5.20-5.22%, due 4/5/07-4/19/07 7,000,000 6,990,063
General Electric Capital Corp.,
5.22%, due 4/26/07 600,000 597,825
General Electric Capital Services
Corp.,
5.22%, due 4/12/07 6,400,000 6,389,792
Prin. Amt. Value (A)
- ----------- ------------
Nestle Capital Co.,
5.22%, due 4/17/07 $ 2,400,000 $ 2,394,432
Toyota Motor Credit Corp.,
5.22%, due 4/5/07-4/18/07 7,000,000 6,988,965
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29,752,680
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Total Short-Term Investments
(Cost $39,147,579) 39,147,579
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Total Securities Lending Collateral --2.2%
(Cost $18,753,210)
Brown Brothers Investment
Trust, 5.26%, due 4/2/07 18,753,210
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Total Investments --102.4%
(Cost $379,469,629) 861,781,048
Cash, receivables, prepaid
expenses and other
assets, less liabilities --(2.4)% (20,124,026)
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Net Assets -- 100.0% $841,657,022
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Notes:
(A)See note 1 to financial statements. Securities are listed on the New York
Stock Exchange, the American Stock Exchange, or the NASDAQ.
(B)Some of the shares of this company are on loan. See note 8 to financial
statements.
(C)Presently non-dividend paying.
(D)The aggregate market value of stocks held in escrow at March 31, 2007
covering open call option contracts written was $15,049,600. In addition,
the aggregate market value of securities segregated by the Corporation's
custodian required to collateralize open put option contracts written was
$2,587,500.
10
SCHEDULE OF OUTSTANDING OPTION CONTRACTS
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March 31, 2007
(unaudited)
Contracts Contract
(100 shares Strike Expiration Appreciation/
each) Security Price Date (Depreciation)
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COVERED CALLS
100 Air Products and Chemicals, Inc. $ 80 Jun 07 $ 2,700
100 BP plc ADR...................... 70 Oct 07 (4,800)
150 Devon Energy Corp............... 75 Apr 07 16,799
150 EOG Resources, Inc.............. 75 Apr 07 8,674
100 Holly Corp...................... 60 Jun 07 (10,301)
100 Marathon Oil Co................. 105 Apr 07 14,724
50 Martin Marietta Materials, Inc.. 130 Apr 07 (25,764)
100 Noble Energy, Inc............... 70 Aug 07 200
200 Occidental Petroleum Corp....... 55 Aug 07 (9,601)
200 Questar Corp.................... 85 Apr 07 (58,101)
200 Questar Corp.................... 90 Apr 07 61,317
200 Questar Corp.................... 90 Jul 07 (69,601)
200 Suncor Energy................... 100 Sep 07 6,899
100 Valero Energy Corp.............. 70 Jun 07 (5,300)
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1,950 (72,155)
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COLLATERALIZED PUTS
250 Bronco Drilling Co., Inc........ 12.50 Apr 07 16,250
250 ENSCO International, Inc........ 40 Jun 07 37,999
150 Exxon Mobil Corp................ 65 Jul 07 9,149
75 Florida Rock Industries Inc..... 40 Jun 07 4,275
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725 67,673
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$ (4,482)
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12
(SELECTED) NOTES TO FINANCIAL STATEMENTS (Unaudited)
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Petroleum & Resources Corporation (the Corporation) is
registered under the Investment Company Act of 1940 as a non-
diversified investment company. The Corporation is an
internally-managed fund emphasizing petroleum and other
natural resource investments. The investment objectives of
the Corporation are preservation of capital, the attainment
of reasonable income from investments, and an opportunity
for capital appreciation.
Security Valuation-Investments in securities traded on
national security exchanges are valued at the last reported
sale price on the day of valuation. Over-the-counter and
listed securities for which a sale price is not available
are valued at the last quoted bid price. Short-term
investments (excluding purchased options) are valued at
amortized cost. Purchased and written options are valued at
the last quoted asked price.
For federal income tax purposes, the identified cost of
securities at March 31, 2007 was $379,439,805 and net
unrealized appreciation aggregated $482,341,243, of which
the related gross unrealized appreciation and depreciation
were $483,421,998 and $1,080,755, respectively.
8. PORTFOLIO SECURITIES LOANED
The Corporation makes loans of securities to brokers,
secured by cash deposits, U.S. Government securities, or
bank letters of credit. The Corporation accounts for
securities lending transactions as secured financing and
receives compensation in the form of fees or retains a
portion of interest on the investment of any cash received
as collateral. The Corporation also continues to receive
interest or dividends on the securities loaned. The loans
are secured at all times by collateral of at least 102% of
the fair value of the securities loaned plus accrued
interest. Gain or loss in the fair value of securities
loaned that may occur during the term of the loan will be
for the account of the Corporation. At March 31, 2007, the
Corporation had securities on loan of $18,102,026 and held
collateral of $18,753,210, consisting of an investment trust
fund which may invest in money market instruments,
commercial paper, repurchase agreements, U.S. Treasury
Bills, and U.S. agency obligations.
Item 2. CONTROLS AND PROCEDURES.
Conclusions of principal officers concerning controls and
procedures:
(a) As of April 30, 2007, an evaluation was performed under
the supervision and with the participation of the officers
of Petroleum & Resources Corporation (the "Corporation"),
including the principal executive officer ("PEO") and
principal financial officer ("PFO"), of the effectiveness of
the Corporation's disclosure controls and procedures. Based
on that evaluation, the Corporation's officers, including
the PEO and PFO, concluded that, as of April 30, 2007, the
Corporation's disclosure controls and procedures were
reasonably designed so as to ensure: (1) that information
required to be disclosed by the Corporation on Form N-Q is
recorded, processed, summarized and reported within the time
periods specified by the rules and forms of the Securities
and Exchange Commission; and (2) that material information
relating to the Corporation is made known to the PEO and PFO
as appropriate to allow timely decisions regarding required
disclosure.
(b) There have been no significant changes in the
Corporation's internal control over financial reporting (as
defined in Rule 30 a-3(d) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(d)) that occurred during the
Corporation's last fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the
Corporation's internal control over financial reporting.
Item 3. EXHIBITS.
The certifications of the principal executive officer and
principal financial officer pursuant to Rule 30 a-2(a) under
the Investment Company Act of 1940 are attached hereto as
Form N-Q Certifications.
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.
PETROLEUM & RESOURCES CORPORATION
BY: /s/ Douglas G. Ober
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Douglas G. Ober
Chief Executive Officer
Date: April 30, 2007
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/ Douglas G. Ober
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Douglas G. Ober
Chief Executive Officer
(Principal Executive Officer)
Date: April 30, 2007
BY: /s/ Maureen A. Jones
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Maureen A. Jones
Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)
Date: April 30, 2007