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Adams Natural Resources Fund Inc V.PEO


Primary Symbol: PEO

Adams Natural Resources Fund, Inc. (the Fund) is a non-diversified investment company. The Fund is an internally managed closed-end fund specializing in energy and other natural resources stocks. The Fund's investment objectives are preservation of capital, the attainment of reasonable income from investments, and an opportunity for capital appreciation. The Fund invests at least 80% of its assets in petroleum or natural resources industries or industries connected with, serving and/or supplying the petroleum or natural resources industries. The Fund has broad flexibility to invest in stocks of varying capitalizations, and primarily invests in stocks found in the S&P 500 Energy and S&P 500 Materials sectors. The Fund invests at least 25% of its assets in petroleum and petroleum-related industries. The Fund may invest up to 25% of its assets in commodities related to petroleum, minerals and related products, including swaps. The Fund may invest up to 10% of its assets in real property.


NYSE:PEO - Post by User

Post by retiredcfon Dec 09, 2020 9:09am
72 Views
Post# 32065967

Earnings Assessment

Earnings AssessmentWe would consider the results good, though 'adjustments' caused some confusion. 'Adjusted' earnings more than doubled, and this is what analysts focus on. While revenue rose, so did operating expenses. The key adjustments, which are non-cash for the most part, were ~$11M more in depreciation, $1.5M in adjustments on carrying value of securities (mark to market, but no cash impact until they are sold), $6.5M in finance expenses, and $4.7M in acquisition related costs and one time restructuring costs. Together, these accout for a nearly $24M swing in reported profit, though as noted very little cash flow impact. In fact, if we look at operating cash flow, it was nearly $22M higher for the year, almost completely offsetting the income 'adjustments'.

So said 5iResearch and it would appear that based on the recent upgrades, the other investment firms figured this out as well. GLTA

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