Equus Announces Second Quarter Net Asset Value

Rhea-AI Summary

Equus Total Return, Inc. (NYSE: EQS) has reported its net assets as of June 30, 2024, at $49.8 million. The company's net asset value per share increased to $3.66 from $3.38 as of March 31, 2024. This growth was primarily driven by the performance of its wholly-owned subsidiary, Morgan E&P, . Morgan acquired an additional 810 net acres in the Bakken/Three Forks formation, expanding its total acreage to approximately 6,707 net acres. This acquisition led to an increase in Morgan's proved reserves and future drilling sites. Consequently, the fair value of Morgan's equity was recorded at $26.0 million, representing a $4.75 million increase from the previous quarter.

Positive

• Net asset value per share increased from $3.38 to $3.66 in Q2 2024
• Total net assets grew to $49.8 million as of June 30, 2024
• Morgan E&P acquired additional 810 net acres, increasing proved reserves and future drilling sites
• Fair value of Morgan E&P's equity increased by $4.75 million to $26.0 million

Negative

• None.

HOUSTON, Aug. 20, 2024 (GLOBE NEWSWIRE) -- Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Company”) reports net assets as of June 30, 2024, of $49.8 million. Net asset value per share increased to $3.66 as of June 30, 2024, from $3.38 as of March 31, 2024. Comparative data is summarized below (in thousands, except per share amounts):  

As of the Quarter Ended	6/30/2024	3/31/2024	12/31/2023	9/30/2023	6/30/2023
Net assets	$49,792	$45,892	$48,287	$47,128	$40,051
Shares outstanding	13,586	13,586	13,586	13,518	13,518
Net assets per share	$3.66	$3.38	$3.55	$3.49	$2.96

The following were the principal contributors to the changes in fair value of the Company’s portfolio holdings in the second quarter of 2024:

Increase in Fair Value of Morgan E&P.   During 2023, the Company formed Morgan E&P, LLC (“Morgan”), as a wholly-owned subsidiary and completed the acquisition of approximately 5,897 net acres in the Bakken/Three Forks formation in the Williston Basin of North Dakota. During the second quarter of 2024, Morgan acquired an additional 810 net acres, which resulted in an increase in Morgan’s proved reserves, as well as the number of future drilling sites. As of June 30, 2024, we recorded the fair value of Morgan’s equity at approximately $26.0 million, an increase of $4.75 million from March 31, 2024.

The Company received advice and assistance from a third-party valuation firm to support its determination of the fair value of its investment in Morgan.

About Equus

The Company is a business development company that trades as a closed-end fund on the New York Stock Exchange under the symbol "EQS". Additional information on the Company may be obtained from the Company’s website at www.equuscap.com.

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the performance of the Company, including our ability to achieve our expected financial and business objectives, and the other risks and uncertainties described in the Company’s filings with the SEC. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Except as required by law, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statements are material.

Contact:

Patricia Baronowski
Pristine Advisers, LLC
(631) 756-2486

FAQ

What was Equus Total Return's (EQS) net asset value per share as of June 30, 2024?

Equus Total Return's (EQS) net asset value per share was $3.66 as of June 30, 2024.

How many additional net acres did Morgan E&P acquire in Q2 2024?

Morgan E&P acquired an additional 810 net acres in the Bakken/Three Forks formation during the second quarter of 2024.

What was the fair value of Morgan E&P's equity as of June 30, 2024?

The fair value of Morgan E&P's equity was recorded at approximately $26.0 million as of June 30, 2024.

How much did Equus Total Return's (EQS) net assets increase from March 31, 2024 to June 30, 2024?

Equus Total Return's (EQS) net assets increased from $45,892,000 on March 31, 2024, to $49,792,000 on June 30, 2024, a growth of $3,900,000.