Equus Announces First Quarter Net Asset Value

Rhea-AI Summary

Equus Total Return, Inc. (NYSE: EQS) reported net assets of $37.4 million as of March 31, 2022, marking an increase of approximately $1.0 million from December 31, 2021. The net asset value per share rose to $2.77, up from $2.69. Key drivers for this increase include a rise in the fair value of Equus Energy from $13.0 million to $15.0 million, bolstered by escalating crude oil prices, which increased from $75.33 to $100.28 per barrel, and natural gas prices rising from $3.82 to $5.46 per MMBTU during the same period.

Positive

• Net assets increased by $1.0 million to $37.4 million.
• Net asset value per share rose to $2.77 from $2.69.
• Fair value of Equus Energy increased from $13.0 million to $15.0 million.
• Substantial rise in crude oil prices (33.1%) and natural gas prices (42.9%) contributed to valuation improvements.

Negative

• None.

HOUSTON, May 12, 2022 (GLOBE NEWSWIRE) -- Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Company”) reports net assets as of March 31, 2022, of $37.4 million, an increase of approximately $1.0 million since December 31, 2021. Net asset value per share increased to $2.77 as of March 31, 2022 from $2.69 as of December 31, 2021. Comparative data is summarized below (in thousands, except per share amounts):

As of the Quarter Ended	3/31/2022	12/31/2021	9/30/2021	6/30/2021	3/31/2021
Net assets	$37,435	$36,365	$36,243	$34,724	$34,075
Shares outstanding	13,518	13,518	13,518	13,518	13,518
Net assets per share	$2.77	$2.69	$2.68	$2.57	$2.52

The following was the principal contributor to the growth in net asset value during the first quarter of 2022:

• Increase in the Value of Equus Energy. During the first quarter of 2022, the fair value of Equus Energy, LLC, increased from $13.0 million to $15.0 million. Among the various leasehold rights held by Equus Energy is a 50% working interest in 2,400 acres in the Permian Basin known as the Conger Field. A number of transactions that completed in 2021 and the first quarter of 2022 were concentrated in the Permian Basin, at imputed acreage values considerably in excess of values ascribed to such acreage in the past several years. In addition, West Texas Intermediate crude prices increased from $75.33 per barrel at December 31, 2021 to $100.28 per barrel at March 31, 2022, an increase of approximately 33.1%, while natural gas prices increased from $3.82 per MMBTU at the end of 2021 to $5.46 per MMBTU at the end of the first quarter of 2022, which was an increase of approximately 42.9%.
  
  Equus also holds working interests of 7.5% and 2.5% in the Burnell and North Pettus Units, respectively, which collectively comprise approximately 13,000 acres located in the area known as the ‘Eagle Ford Shale’ play. The Company received advice and assistance from a third-party valuation firm to support its determination of the fair value of this investment.

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 are the latest net asset values for Equus Total Return, Inc. (EQS)?

As of March 31, 2022, net assets for Equus Total Return, Inc. totaled $37.4 million, with a net asset value per share of $2.77.

How much did Equus Energy's fair value increase in the first quarter of 2022?

The fair value of Equus Energy increased from $13.0 million to $15.0 million during the first quarter of 2022.

What was the impact of oil and gas prices on Equus Total Return's net asset value?

The increase in crude oil prices by approximately 33.1% and natural gas prices by approximately 42.9% positively impacted Equus Total Return's net asset value in Q1 2022.