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Equus Total Return (NYSE: EQS) reported net assets of $40.2 million as of September 30, 2024, with net asset value per share decreasing to $2.96 from $3.66 in the previous quarter. The decline was primarily due to decreased fair values of two major holdings: Morgan E&P decreased by $7.0 million to $19.0 million, affected by a 17.6% drop in oil prices and declining production from two wells. Equus Energy decreased by $2.0 million to $8.0 million, also due to lower oil prices. These valuations were supported by a third-party valuation firm.
Equus Total Return (NYSE: EQS) ha riportato un patrimonio netto di 40,2 milioni di dollari al 30 settembre 2024, con il valore patrimoniale netto per azione che è sceso a 2,96 dollari rispetto ai 3,66 dollari del trimestre precedente. Il calo è stato principalmente dovuto alla diminuzione dei valori equi di due investimenti principali: Morgan E&P è diminuita di 7 milioni di dollari a 19 milioni di dollari, influenzata da un calo del 17,6% dei prezzi del petrolio e dalla diminuzione della produzione da due pozzi. Equus Energy è diminuita di 2 milioni di dollari a 8 milioni di dollari, anch’essa a causa di prezzi del petrolio più bassi. Queste valutazioni sono state supportate da una società di valutazione di terze parti.
Equus Total Return (NYSE: EQS) reportó activos netos de 40.2 millones de dólares al 30 de septiembre de 2024, con un valor neto de activos por acción que disminuyó a 2.96 dólares desde 3.66 en el trimestre anterior. La disminución se debió principalmente a la reducción de los valores justos de dos participaciones importantes: Morgan E&P disminuyó en 7.0 millones de dólares a 19.0 millones de dólares, afectada por una caída del 17.6% en los precios del petróleo y la disminución de la producción de dos pozos. Equus Energy disminuyó en 2.0 millones de dólares a 8.0 millones de dólares, también debido a precios de petróleo más bajos. Estas valoraciones fueron respaldadas por una firma de valoración de terceros.
Equus Total Return (NYSE: EQS)는 2024년 9월 30일 기준으로 4,020만 달러의 순자산을 보고했으며, 주당 순자산 가치는 이전 분기 3.66달러에서 2.96달러로 감소했습니다. 감소는 주로 두 주요 자산의 공정 가치 하락에 기인합니다: Morgan E&P는 700만 달러 감소하여 1,900만 달러가 되었으며, 이는 유가가 17.6% 하락하고 두 개의 유정에서 생산량이 줄어든 데 영향을 받았습니다. Equus Energy는 유가 하락으로 인해 200만 달러 감소하여 800만 달러가 되었습니다. 이러한 평가는 제3자 평가 기관에 의해 지원되었습니다.
Equus Total Return (NYSE: EQS) a rapporté des actifs nets de 40,2 millions de dollars au 30 septembre 2024, avec une valeur nette d’actifs par action qui a diminué à 2,96 dollars contre 3,66 dollars au trimestre précédent. La baisse était principalement due à la réduction des valeurs justes de deux principales participations : Morgan E&P a diminué de 7,0 millions de dollars pour s’établir à 19,0 millions de dollars, affectée par une chute de 17,6 % des prix du pétrole et une baisse de production de deux puits. Equus Energy a également baissé de 2,0 millions de dollars pour atteindre 8,0 millions de dollars, également en raison de la baisse des prix du pétrole. Ces évaluations ont été soutenues par une société d’évaluation tierce.
Equus Total Return (NYSE: EQS) berichtete zum 30. September 2024 von einem Nettovermögen in Höhe von 40,2 Millionen Dollar, wobei der Nettoinventarwert pro Aktie auf 2,96 Dollar von 3,66 Dollar im Vorquartal gesunken ist. Der Rückgang war hauptsächlich auf den gesunkenen Fair Value von zwei Hauptbeteiligungen zurückzuführen: Morgan E&P fiel um 7,0 Millionen Dollar auf 19,0 Millionen Dollar, was durch einen Rückgang der Ölpreise um 17,6 % und einen Rückgang der Produktion aus zwei Bohrlöchern ausgelöst wurde. Equus Energy sank ebenfalls aufgrund niedrigerer Ölpreise um 2,0 Millionen Dollar auf 8,0 Millionen Dollar. Diese Bewertungen wurden von einem externen Bewertungsunternehmen unterstützt.
Negative
- Net asset value per share decreased 19.1% to $2.96 from $3.66 quarter-over-quarter
- Morgan E&P’s fair value declined $7.0 million (26.9%) due to oil price drop and lower production
- Equus Energy’s fair value decreased $2.0 million (20%) due to falling oil prices
- Total net assets declined by $9.6 million (19.3%) from previous quarter
Insights
The significant decline in net asset value per share from $3.66 to $2.96, representing a 19.1% drop, is concerning. Two key portfolio holdings drove this deterioration: Morgan E&P and Equus Energy, both impacted by falling oil prices and operational challenges.
Morgan E&P’s valuation dropped by $7.0 million (26.9%) due to a 17.6% decline in oil prices and reduced production from operating wells. Similarly, Equus Energy saw a $2.0 million (20%) decrease in fair value. The total NAV reduction of $9.6 million reflects the company’s high exposure to energy sector volatility.
The third-party validation of these valuations adds credibility, but the concentration risk in energy assets makes the portfolio particularly vulnerable to commodity price swings. This quarter’s performance highlights the risks of such concentrated exposure in cyclical sectors.
HOUSTON, Nov. 14, 2024 (GLOBE NEWSWIRE) — Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Company”) reports net assets as of September 30, 2024, of $40.2 million. Net asset value per share decreased to $2.96 as of September 30, 2024, from $3.66 as of June 30, 2024. Comparative data is summarized below (in thousands, except per share amounts):
| As of the Quarter Ended | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 |
| Net assets | $40,165 | $49,792 | $45,892 | $48,287 | $47,128 |
| Shares outstanding | 13,586 | 13,586 | 13,586 | 13,586 | 13,518 |
| Net assets per share | $2.96 | $3.66 | $3.38 | $3.55 | $3.49 |
The following were the principal contributors to the changes in fair value of the Company’s portfolio holdings in the third quarter of 2024:
Decrease in Fair Value of Morgan E&P. During 2023 and the first half of 2024, Morgan E&P, LLC (“Morgan”) completed the acquisition of approximately 6,707 net acres in the Bakken/Three Forks formation in the Williston Basin of North Dakota. During the third quarter of 2024, there was a decrease of 17.6% in the price of oil. Morgan also experienced a decline in production from its two operating wells. Principally as a result of these two factors, the fair value of our equity holding in Morgan decreased $7.0 million, from $26.0 million as of June 30, 2024 to $19.0 million as of September 30, 2024.
Decrease in Fair Value of Equus Energy. During the third quarter of 2024, the fair value of the Company’s holding in Equus Energy, LLC (“Equus Energy”) decreased $2.0 million, from $10.0 million to $8.0 million, largely as a consequence of the decrease in oil prices during the quarter.
The Company received advice and assistance from a third-party valuation firm to support its determination of the fair value of its investments in Morgan and Equus Energy.
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 in Q3 2024?
Equus Total Return’s net asset value per share was $2.96 as of September 30, 2024, down from $3.66 as of June 30, 2024.
How much did Morgan E&P’s fair value decrease in Q3 2024 for EQS?
Morgan E&P’s fair value decreased by $7.0 million, from $26.0 million to $19.0 million, due to a 17.6% drop in oil prices and declining production from its wells.
What caused the decline in Equus Energy’s valuation in Q3 2024?
Equus Energy’s fair value decreased by $2.0 million, from $10.0 million to $8.0 million, primarily due to the decrease in oil prices during the quarter.
