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, 2005
Date of reporting period: March 31, 2005
Item 1: SCHEDULE OF INVESTMENTS.
SCHEDULE OF INVESTMENTS
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March 31, 2005
(unaudited)
Prin. Amt.
or Shares Value (A)
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Stocks And Convertible Securities -- 91.6%
Energy -- 81.2%
Internationals -- 26.1%
BP plc ADR 600,000 $ 37,440,000
ChevronTexaco Corp. 635,000 37,026,850
Exxon Mobil Corp. 1,120,000 66,752,000
Royal Dutch Petroleum Co. ADR 385,000 23,115,400
Total S.A. ADR 120,000 14,067,600
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178,401,850
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Domestics -- 11.1%
Amerada Hess Corp. 85,000 8,177,850
ConocoPhillips 280,000 30,195,200
Holly Corp. 155,100 5,780,577
Kerr McGee Corp. 177,153 13,876,394
Murphy Oil Corp. 182,700 18,037,972
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76,067,993
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Producers -- 16.5%
Apache Corp. 190,000 11,633,700
Burlington Resources Inc. 246,800 12,357,276
Devon Energy Corp. 397,440 18,977,760
EOG Resources, Inc. 360,000 17,546,400
Noble Energy, Inc. 215,000 14,624,300
Occidental Petroleum Corp. 200,000 14,234,000
Pioneer Natural
Resources Co. 291,000 12,431,520
XTO Energy Inc. 333,333 10,946,656
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112,751,612
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Distributors -- 13.0%
AGL Resources Inc. 250,000 8,732,500
Duke Energy Corp. 217,624 6,095,648
Energen Corp. 200,000 13,320,000
Equitable Resources Inc. 225,000 12,924,000
Keyspan Corp. 70,000 2,727,900
MDU Resources Group, Inc. 250,000 6,905,000
National Fuel Gas Co. 200,000 5,718,000
New Jersey Resources Corp. 277,500 12,079,575
Questar Corp. 200,000 11,850,000
Williams Companies, Inc. 450,000 8,464,500
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88,817,123
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Prin. Amt.
or Shares Value (A)
---------- ------------
Services -- 14.5%
Baker Hughes, Inc. 130,000 $ 5,783,700
BJ Services Co. 370,000 19,195,600
GlobalSantaFe Corp. 255,000 9,445,200
Grant Prideco Inc. (B) 308,000 7,441,280
Nabors Industries Ltd. (B) 215,000 12,715,100
Noble Corp. (B) 185,000 10,398,850
Precision Drilling Corp. (B) 32,000 2,389,120
Schlumberger Ltd. 280,000 19,734,400
Weatherford International,
Ltd. (B) 205,000 11,877,700
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98,980,950
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Basic Industries -- 10.4%
Basic Materials & Other -- 9.7%
Air Products and Chemicals, Inc. 125,000 7,911,250
Aqua America, Inc. 315,000 7,670,250
Arch Coal Inc. 100,000 4,301,000
Consol Energy Inc. 158,700 7,462,074
du Pont (E.I.) de Nemours and Co. 175,000 8,967,000
General Electric Co. 454,800 16,400,088
Martin Marietta Materials, Inc. 70,400 3,936,768
Rohm & Haas Co. 200,000 9,600,000
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66,248,430
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Paper and Forest Products -- 0.7%
Smurfit-Stone Container
Corp. (B) 300,000 4,641,000
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4,641,000
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Total Stocks And Convertible Securities
(Cost $285,530,742) (C) $625,908,958
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9
SCHEDULE OF INVESTMENTS (continued)
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March 31, 2005
(unaudited)
Prin. Amt. Value (A)
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Short-Term Investments --7.2%
U.S. Government Obligations --2.2%
U.S. Treasury Bills,
2.50%, due 5/19/05 $15,000,000 $14,950,000
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Commercial Paper -- 5.0%
AIG Funding Inc.,
2.74%, due 4/21/05 1,825,000 1,822,222
ChevronTexaco Funding Corp.,
2.65-2.74%, due 4/14/05-
4/26/05 7,000,000 6,989,612
Coca-Cola Enterprises Inc.,
2.62-2.65%, due 4/5/05-
4/12/05 6,100,000 6,095,528
General Electric Capital Corp.,
2.54-2.76%, due 4/7/05-
4/28/05 6,905,000 6,894,912
GMAC MINT, 2.73%, due
4/14/05 2,300,000 2,297,733
Prin. Amt. Value (A)
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GMAC New Center Asset Trust,
2.75%, due 4/21/05 $4,700,000 $ 4,692,819
Toyota Motor Credit Corp.,
2.52-2.75%, due 4/5/05-4/21/05 5,525,000 5,522,174
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34,315,000
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Total Short-Term Investments
(Cost $49,265,000) 49,265,000
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Total Investments -- 98.8%
(Cost $334,795,742) 675,173,958
Cash, receivables and other
assets, less liabilities -- 1.2% 8,500,816
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Net Assets -- 100.0% $683,674,774
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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) Presently non-dividend paying.
(C) The aggregate market value of stocks held in escrow at March 31, 2005
covering open call option contracts written was $11,023,840. In addition,
the aggregate market value of securities segregated by the Corporation's
custodian required to collateralize open put option contracts written was
$8,475,000.
10
SCHEDULE OF OUTSTANDING OPTION CONTRACTS
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March 31, 2005
(unaudited)
Contracts Contract
(100 shares Strike Expiration Appreciation/
each) Security Price Date (Depreciation)
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COVERED CALLS
100 Amerada Hess Corp............. $ 105 May 05 $ (3,800)
100 Amerada Hess Corp............. 110 Aug 05 (7,801)
100 Arch Coal Inc................. 40 Apr 05 (28,300)
100 Arch Coal Inc................. 40 Jul 05 (35,401)
200 ConocoPhillips................ 130 Aug 05 (2,501)
100 Kerr McGee Corp............... 75 Apr 05 (37,800)
100 Kerr McGee Corp............... 85 Apr 05 14,199
200 Kerr McGee Corp............... 95 Oct 05 1,959
180 Murphy Oil Corp............... 110 Jul 05 (24,495)
100 Total S.A..................... 135 Aug 05 4,800
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1,280 (119,140)
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COLLATERALIZED PUTS
150 Consol Energy Inc............. 35 Apr 05 12,349
250 Exxon Mobil Corp.............. 55 Jul 05 (7,001)
100 GlobalSantaFe Corp............ 25 Apr 05 9,200
150 Holly Corp.................... 35 May 05 (4,201)
90 Holly Corp.................... 25 Jun 05 3,330
60 Holly Corp.................... 30 Sep 05 (780)
85 Martin Marietta Materials,
Inc........................... 45 Apr 05 6,120
100 Martin Marietta Materials,
Inc........................... 45 Jul 05 8,978
150 Murphy Oil Corp............... 70 Jul 05 15,626
100 Precision Drilling Corp....... 70 May 05 (351)
150 Precision Drilling Corp....... 55 Jun 05 8,549
150 Precision Drilling Corp....... 60 Jun 05 12,299
100 Precision Drilling Corp....... 65 Jun 05 (2,800)
250 Williams Companies, Inc....... 17.50 May 05 11,749
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1,885 73,067
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$ (46,073)
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11
(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's investment
objectives as well as the nature and risk of its investment
transactions are set forth in the Corporation's registration
statement.
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.
Item 2. CONTROLS AND PROCEDURES.
Conclusions of principal officers concerning controls and
procedures:
(a) As of May 25, 2005, 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 May 25, 2005, 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 has materially
affected, or is 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: May 25, 2005
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: May 25, 2005
BY: /s/ Maureen A. Jones
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Maureen A. Jones
Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)
Date: May 25, 2005