Equus Announces Second Quarter Net Asset Value

Rhea-AI Summary

Equus Total Return, Inc. (NYSE: EQS) reported net assets of $34.7 million as of June 30, 2021, reflecting a $0.6 million increase from March 31, 2021. The net asset value per share rose to $2.57 from $2.52. Notably, the fair value of Equus Energy, LLC increased from $8.5 million to $10.25 million due to rising crude and natural gas prices and strong transactions in the Permian Basin. Additionally, Equus invested an extra $350,000 in Equus Energy to bolster its working capital for future transactions.

Positive

• Net assets increased to $34.7 million, up from $34.1 million.
• Net asset value per share increased to $2.57 from $2.52.
• Fair value of Equus Energy rose from $8.5 million to $10.25 million.
• Equus invested an additional $350,000 in Equus Energy to enhance working capital.

Negative

• None.

HOUSTON, Aug. 16, 2021 (GLOBE NEWSWIRE) --  Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Company”) reports net assets as of June 30, 2021, of $34.7 million, an increase of approximately $0.6 million since March 31, 2021. Net asset value per share increased to $2.57 as of June 30, 2021 from $2.52 as of March 31, 2021. Comparative data is summarized below (in thousands, except per share amounts):  

As of the Quarter Ended	6/30/2021		3/31/2021		12/31/2020		9/30/2020		6/30/2020
Net assets	$	34,724	$	34,075	$	33,777	$	37,431	$	41,469
Shares outstanding		13,518		13,518		13,518		13,518		13,518
Net assets per share	$	2.57	$	2.52	$	2.50	$	2.77	$	3.07

During the second quarter of 2021 the fair value of Equus Energy, LLC, increased from $8.5 million to $10.25 million. This was due to price increases for crude and natural gas during the quarter, and recent comparable transactions in the Permian Basin where Equus Energy holds most of its productive working interests. 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 late 2020 and the first six months of 2021 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 Equus 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.

Significant Events During the Quarter

Follow-On Investment in Equus Energy— During the second quarter of 2021, we invested an additional $350,000 in Equus Energy to increase working capital and financial resources to explore potential transactions involving Equus Energy and its oil and gas assets.

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 net assets of Equus Total Return as of June 30, 2021?

Equus Total Return reported net assets of $34.7 million as of June 30, 2021.

How much did the net asset value per share increase for EQS?

The net asset value per share increased from $2.52 to $2.57.

What caused the increase in the fair value of Equus Energy?

The fair value of Equus Energy increased due to rising crude and natural gas prices and recent transactions in the Permian Basin.

What additional investment did Equus make in Equus Energy?

Equus made a follow-on investment of $350,000 in Equus Energy during the second quarter of 2021.