Reported Late Tuesday March 28, Equus Announces Q4 Net Asset Value Of $2.61

Author: Happy Mohamed | March 29, 2023 12:44am

Equus Total Return, Inc. (NYSE:EQS) ("Equus" or the "Company") reports net assets as of December 31, 2022, of $35.2 million. Net asset value per share decreased to $2.61 as of December 31, 2022, from $2.68 as of September 30, 2022. Comparative data is summarized below (in thousands, except per share amounts):
 

As of the Quarter Ended	12/31/2022	9/30/2022	6/30/2022	3/31/2022	12/31/2021
Net assets	$35,237	$36,230	$37,155	$37,435	$36,365
Shares outstanding	13,518	13,518	13,518	13,518	13,518
Net assets per share	$2.61	$2.68	$2.75	$2.77	$2.69

The following was the principal contributor to the increase in fair value of the Company's portfolio holdings in 2022:
 

• Increase in the Value of Equus Energy. During 2022, the fair value of Equus Energy, LLC, increased from $13.0 million to $15.65 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 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 to $80.16 per barrel during the year while natural gas prices slightly decreased from $3.82 per MMBTU at the end of 2021 to $3.52 per MMBTU at the end of 2022.
  
  
  
  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.

Although the Company experienced an increase in value of its investment holding in Equus Energy, the Company's overall net asset value declined, due in part to increased professional fees and expense relating to due diligence and the examination of potential transactions that could, if consummated, be transformative for the Company.

Posted In: EQS