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Adams Natural Resources Fund, Inc.NYSE:PEO Stock Report

Market Cap US$712.3m
Share Price
US$26.11
US$22.05
18.4% overvalued intrinsic discount
1Y23.0%
7D-1.0%
1D
Portfolio Value
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Adams Natural Resources Fund, Inc.

NYSE:PEO Stock Report

Market Cap: US$712.3m

Adams Natural Resources Fund (PEO) Stock Overview

A publicly owned investment manager. More details

PEO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends3/6

Rewards

Price-To-Earnings ratio (13.1x) is below the US market (18.7x)

Earnings grew by 77.5% over the past year

Risk Analysis

Large one-off items impacting financial results

Unstable dividend track record


PEO Community Fair Values

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Adams Natural Resources Fund, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Adams Natural Resources Fund
Historical stock prices
Current Share PriceUS$26.11
52 Week HighUS$28.88
52 Week LowUS$20.57
Beta0.37
1 Month Change1.01%
3 Month Change-2.21%
1 Year Change23.04%
3 Year Change28.94%
5 Year Change56.72%
Change since IPO59.86%

Recent News & Updates

Seeking Alpha • 12h

PEO: Strong Performance Not Likely To Last Much Longer

Summary Adams Natural Resources Fund, Inc. has delivered strong five-year annualized returns over 18%, but momentum has stalled as oil prices stabilize. I rate the PEO CEF a Hold, expecting oil prices to decline toward $80/barrel in 2027, which may challenge future fund performance. PEO trades at a 10.77% discount to NAV, yields 7.9%, and is heavily weighted to oil majors like XOM and CVX. Recent NAV and market price performance have leveled off; I recommend holding for income but advise caution for new entrants. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • 12h

PEO: Strong Performance Not Likely To Last Much Longer

Summary Adams Natural Resources Fund, Inc. has delivered strong five-year annualized returns over 18%, but momentum has stalled as oil prices stabilize. I rate the PEO CEF a Hold, expecting oil prices to decline toward $80/barrel in 2027, which may challenge future fund performance. PEO trades at a 10.77% discount to NAV, yields 7.9%, and is heavily weighted to oil majors like XOM and CVX. Recent NAV and market price performance have leveled off; I recommend holding for income but advise caution for new entrants. Read the full article on Seeking Alpha
Analysis Article • Nov 17

Adams Natural Resources Fund (NYSE:PEO) Will Pay A Smaller Dividend Than Last Year

Adams Natural Resources Fund, Inc.'s ( NYSE:PEO ) dividend is being reduced from last year's payment covering the same...
Seeking Alpha • Feb 20

PEO: Energy CEF With A 9% Yield, At A 10% Discount

Summary The Adams Natural Resources Fund boasts a long history and high distribution rate, currently at 9.67%, making it attractive for income investors. PEO's concentrated holdings in top energy firms like Exxon Mobil and Chevron drive excess returns but pose significant concentration risk. The fund trades at a 10% discount to NAV, which is above its 52-week average, posing potential risks if the discount widens. Investors are warned of their entry point to buying shares, but ultimately the CEF earns a buy rating. Read the full article on Seeking Alpha
Seeking Alpha • Dec 08

PEO: Exposure To The Oil Majors With 9% Yield And 12% Discount

Summary Adams Natural Resources Fund is a closed-end fund that primarily invests in the equities of large U.S. companies in the energy and materials sectors. With the new distribution policy in place, the fund yields over 9%. The high yield and nearly 12% discount to NAV make it an attractive investment for income investors. We would rate the fund as a “hold” for existing owners and a “buy” for new investors as a diversification in the energy sector and exposure to large oil and gas majors at a 12% discount. Read the full article on Seeking Alpha
Seeking Alpha • Oct 31

PEO: Energy Exposure At A Double-Digit Discount

Summary Adams Natural Resources Fund (PEO) trades at a meaningful discount to NAV, offering a discount on energy exposure, with a specific concentration in major oil companies like Exxon and Chevron. PEO's announced a new distribution policy of 2% average NAV quarterly payouts earlier this year, helping to reduce the fund's discount as it is smoothing income for investors. The concentration in the portfolio exposure may concern some investors, but the fund is actually more diversified when compared to its ETF peer, XLE. Read the full article on Seeking Alpha
Seeking Alpha • Sep 30

PEO: Buy The Dip In This Resources Fund Before The Oil Price Rises

Summary Adams Natural Resources Fund offers concentrated exposure to large energy companies, with a consistent distribution policy and a low expense ratio of 0.6%. PEO trades at a discount to NAV, with potential for tightening due to improved distribution policies and activist investor Saba Capital's involvement. Despite past underperformance, PEO has outperformed its benchmarks over the last five years, and the energy sector outlook appears more promising. Risks include a weaker global economic outlook and growth in EVs, but high free cash flow yields and prudent capital management offer a favorable risk/reward profile. Read the full article on Seeking Alpha
Seeking Alpha • Aug 26

PEO: Join Saba Capital And Get Exposure To Top Energy Stocks At A Discount

Summary There has been significant recent buying from closed-end fund activist Saba Capital. PEO recently implemented an 8% managed distribution policy, providing higher distributions on a quarterly basis. The fund has a 9.5% annual distribution yield and a 13.4% discount to NAV. Read the full article on Seeking Alpha
Seeking Alpha • Jun 03

PEO: Buy The Oil Majors At A 14% Discount And Prep Your Portfolio For AI Energy Demand

Summary Adams Natural Resources Fund is undervalued, trading at a 14% discount to NAV, with a yield over 6%. The fund primarily invests in energy and natural resource stocks, providing diversification and reduced risks. The demand for energy, particularly from fossil fuels, is expected to increase due to AI, data centers, and global population growth. Read the full article on Seeking Alpha
Analysis Article • Apr 22

Adams Natural Resources Fund (NYSE:PEO) Has Announced A Dividend Of $0.10

Adams Natural Resources Fund, Inc. ( NYSE:PEO ) will pay a dividend of $0.10 on the 31st of May. The dividend yield...
Seeking Alpha • Jan 26

PEO: A Buy The Dip Opportunity In This 6% Yield Natural Resources CEF

Summary PEO invests across energy and materials sector stocks. The fund has outperformed sector benchmarks over the past 5 years. PEO's diversified exposure sector large-caps are well-positioned to benefit from a pricing rebound in natural resources. The fund yields 6% through a managed distribution. Read the full article on Seeking Alpha
Seeking Alpha • Oct 18

PEO: You Are Better Off With An ETF Here (Rating Downgrade)

Summary The Adams Natural Resources Fund is an equities closed-end fund focused on energy and materials equities. PEO aims for long-term capital appreciation rather than income, but fails to outperform a simple 80% energy / 20% materials portfolio. PEO doesn't effectively utilize CEF features like leverage or high dividend yields, which are common in CEFs. The fund has a managed distribution policy, targeting a 6% minimum annual distribution. It pays small distributions quarterly, but has a large year-end distribution in December. Read the full article on Seeking Alpha
Seeking Alpha • Feb 08

Adams Natural Resources Fund goes ex-dividend tomorrow

Adams Natural Resources Fund (NYSE:PEO) had declared $0.05/share dividend. Payable March 1; for shareholders of record Feb. 10; ex-div Feb. 9. See PEO Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Dec 12

PEO: Energy CEF Flying Under The Radar, +31% YTD

Summary PEO is an Energy and Materials closed-end fund. The CEF has concentrated positions in Exxon and Chevron, which account for over 32% of the portfolio. PEO exhibits better 5-year total returns than its much wider-known peer Blackrock Energy and Resources Trust (BGR). This article covers CEFs from our suite of products.
Seeking Alpha • Nov 14

Adams Natural Resources Fund declares $1.33 dividend

Adams Natural Resources Fund (NYSE:PEO) declares $1.33/share year-end dividend. The year-end distribution consists of $0.53 per share from 2022 net investment income; and $0.80 per share from net capital gains realized during 2022, of which $0.15 was short-term gain and $0.65 was long-term gain.  The total distributions by the fund for 2022 will be $1.63, including the distributions totaling $0.30 per share made prior to today’s announcement. The annual distribution rate represented by these distributions is 8.1%. Payable Dec. 16; for shareholders of record Nov. 21; ex-div Nov. 18. See PEO Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Sep 18

PEO: Natural Resources Exposure, Significant Weighting In Oil Majors

Summary PEO invests primarily in oil majors, but also has some other more specific industry exposure. They've put up reasonable results against their benchmarks. The fund has a 6% annual minimum distribution policy. Written by Nick Ackerman, co-produced by Stanford Chemist. This article was originally published to members of the CEF/ETF Income Laboratory on September 3rd, 2022. Adams Natural Resources Fund (PEO) is a fairly unique energy fund. Many of the closed-end funds that focus on energy/infrastructure will incorporate significant exposure to MLPs and midstream companies. In the case of PEO, they invest with a majority of their exposure in the oil majors. They also have some exposure to the more volatile exploration and production companies. Another fund that first came to mind that is somewhat similar is BlackRock Energy and Resources (BGR). They share significant overlap in their top allocations, seemingly concentrating on a select few of the highest quality companies. Interestingly, they actually both carry significant weighting to their top holdings. PEO's top ten come to 67.5% of the fund. BGR's top ten is a nearly identical concentration at ~68% of the total portfolio. The funds also share another characteristic; that's both funds trade at deep discounts. Their distribution policy and investment strategy are where they start to diverge a bit. Beyond just investing in natural resource companies, BGR utilizes a call-writing strategy in its portfolio. My personal view is I'm more bullish on energy short-term, but longer term, I'm less optimistic. Renewables will become more and more viable every day as costs come down and cut into fossil fuel demand. That isn't to say that oil and natural gas won't play a role; I believe they'll be around forever. Renewable growth outpaces fossil fuels, and that faster pace of growth is set to continue. The companies that PEO invests in are some of the largest that I believe will survive and have the capability of transitioning along with the industry. That makes them quite appealing as an investment option. The Basics 1-Year Z-score: 0.76 Discount: -13.26% Distribution Yield: 1.86% (regular distribution only) Expense Ratio: 0.63% Leverage: N/A Managed Assets: $603 million Structure: Perpetual PEO "seeks to deliver superior returns over time by capitalizing on the long-term demand for energy and materials. The Fund invests in energy and natural resources stocks and seeks to generate returns that exceed its benchmark as well as consistently distribute dividend income and capital gains to shareholders." Similar to the other Adams fund, Adams Diversified Equity Fund (ADX), PEO has an incredibly long history. The inception date goes back to 1929. PEO also went through a name change when ADX had. Formerly, the fund was known as the Petroleum & Resources Corporation. Another similarity with ADX is that the fund doesn't utilize any leverage. That can be a positive, especially when your underlying investments are volatile enough. The fund's expense ratio is incredibly low for the closed-end fund space - another characteristic that is present in ADX. However, it's still on the higher end if it was competing against an ETF. In 2021, the average expense ratio for an ETF was 0.49%. Performance - Competitive To Its Benchmarks Energy has been an incredibly volatile sector to invest in. They are cyclical stocks and go through booms and busts. A couple of years ago, we saw negative prices for oil, and then we started to see some of the highest prices earlier this year. Now, we are back down significantly. YCharts Where the price can go next, nobody knows. But I would suspect it continues to be quite volatile. From 2015 to 2020, there was a lot of pain in the sector. However, it seems to have left the companies better off concentrating on strengthening their balance sheets and rewarding shareholders now that they can. The longer-term results for PEO reflect this, with the longer-term results rather poor, but more recently, the performance has been looking much better. They use the S&P 500 Energy Sector Index and Materials Sector Index as their benchmarks. We can see both periods where PEO has outperformed its benchmark, meeting its goal of delivering "superior returns." PEO Annualized Returns (Adams Funds) These better results for the sector have seemed to get some attention from investors. PEO trades at a deep discount but still higher than the decade-long average discount. Still, I'd say the fund is still attractively discounted, and discount expansion from this level back to the average wouldn't be too painful. I'd be more concerned about the overall energy market already making a massive run. If we enter into anything more than a mild recession, these are the types of stocks that will get hit significantly. PEO Discount or Premium to NAV data by YCharts When comparing the results between PEO and BGR, we can see that PEO came out ahead quite significantly over the last decade. This had really picked up after the bottom of 2020. One of the reasons for this is that BGR's options strategy during a bull market will be a drag on its performance. The position will either be called away, limiting the upside, or the fund will have to close the position, generating losses. YCharts Covered call writing strategies can work best in a flat market. It can provide a bit of a hedge when there are shallow declines. Distribution - 6% Minimum Policy Another similarity between PEO and ADX is their 6% minimum distribution policy. These funds pay out a small regular quarterly distribution. A large year-end special then tops it off to achieve that minimum level. PEO Distribution History (Adams Funds) The latest regular distribution works out to $0.10. They've paid that going back to 2009. Since they adjust the year-end and pay out a minimal amount throughout the year, it's pretty easy for them to keep the regular rate stable. In 2021, they didn't pay a massive year-end that some investors might have been looking for. The reason for this is that it appears they didn't realize the majority of their portfolio. Instead, they kept their gains mostly as unrealized appreciation. In that way, they wouldn't be required to make any sort of significant payment. PEO Semi-Annual Report (Adams Funds) Based on what we see above, they look set to deliver a larger year-end for 2022. That would be the assumption at this point, with the fund realizing more gains at this midway point. Additionally, the fund looks like the net investment income is set to surpass last year's NII as well. It's still a little early to make any guess, though. They release quarterly reports, so when we see Q3, we'll get a better idea of what the fund might be able to pay out. For tax purposes, the bulk of the distributions in 2021 was investment income. A sizeable portion was characterized as short-term capital gains, too. PEO Tax Character 2021 (Adams Funds)
Seeking Alpha • Aug 16

Adams Natural Resources Fund goes ex dividend tomorrow

Adams Natural Resources Fund (NYSE:PEO) declares $0.10/share quarterly dividend, in line with previous. Forward yield 1.88% Payable Sept. 1; for shareholders of record Aug. 18; ex-div Aug. 17. See PEO Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Feb 25

PEO: A Good Choice For Energy Bulls And Income Investors

PEO is a non-leveraged long-only equity CEF that invests across energy and materials sector stocks. The fund is benefiting from strong momentum in energy prices with a portfolio tilt towards leading oil producers. The fund maintains a distribution policy targeting a 6% yield. We are bullish on PEO which captures several of the positive high-level tailwinds for natural resource stocks.
Analysis Article • Jul 19

Adams Natural Resources Fund (NYSE:PEO) Has Re-Affirmed Its Dividend Of US$0.10

Adams Natural Resources Fund, Inc. ( NYSE:PEO ) will pay a dividend of US$0.10 on the 1st of September. This makes the...
Analysis Article • Apr 09

Shareholders Will Probably Be Cautious Of Increasing Adams Natural Resources Fund, Inc.'s (NYSE:PEO) CEO Compensation At The Moment

The disappointing performance at Adams Natural Resources Fund, Inc. ( NYSE:PEO ) will make some shareholders rather...
Analysis Article • Feb 06

Just Four Days Till Adams Natural Resources Fund, Inc. (NYSE:PEO) Will Be Trading Ex-Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Adams Natural...

Shareholder Returns

PEOUS Capital MarketsUS Market
7D-1.0%-0.5%-3.3%
1Y23.0%9.0%22.3%

Return vs Industry: PEO exceeded the US Capital Markets industry which returned 9% over the past year.

Return vs Market: PEO matched the US Market which returned 22.3% over the past year.

Price Volatility

Is PEO's price volatile compared to industry and market?
PEO volatility
PEO Average Weekly Movement3.0%
Capital Markets Industry Average Movement3.6%
Market Average Movement7.2%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: PEO has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: PEO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1929n/aJim Hayniewww.adamsfunds.com

Adams Natural Resources Fund, Inc. is a publicly owned investment manager. The firm invests in the public equity markets across the globe. The firm manages closed-end equity fund focused on the energy and material sectors.

Adams Natural Resources Fund, Inc. Fundamentals Summary

How do Adams Natural Resources Fund's earnings and revenue compare to its market cap?
PEO fundamental statistics
Market capUS$712.30m
Earnings (TTM)US$54.76m
Revenue (TTM)US$20.29m
13.1x
P/E Ratio
35.4x
P/S Ratio

Is PEO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
PEO income statement (TTM)
RevenueUS$20.29m
Cost of RevenueUS$0
Gross ProfitUS$20.29m
Other Expenses-US$34.47m
EarningsUS$54.76m

Last Reported Earnings

Dec 31, 2025

Next Earnings Date

n/a

Earnings per share (EPS)1.99
Gross Margin100.00%
Net Profit Margin269.92%
Debt/Equity Ratio0%

How did PEO perform over the long term?

See historical performance and comparison

Dividends

7.9%
Current Dividend Yield
103%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/10 02:45
End of Day Share Price 2026/06/10 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Adams Natural Resources Fund, Inc. is covered by 0 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.