Equus Announces Fourth Quarter Net Asset Value
March 28 2023 - 7:57PM
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.
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
Equus Total Return (NYSE:EQS)
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