Equus Total Return Shares Update: Q3 Valuation Insights
Equus Total Return, Inc. Reports Third Quarter Financial Results
Equus Total Return, Inc. (NYSE: EQS) has shared the important details regarding its financial standing as of the end of September. The company revealed that its net assets stood at $40.2 million, reflecting a notable shift in its net asset value per share, which decreased to $2.96 from $3.66 at the end of June.
Understanding the Shift in Net Asset Values
The decline in net asset value per share may raise eyebrows among investors. This is a critical metric for evaluating the performance and health of a company that operates as a closed-end fund. Every decrease can have implications for shareholder confidence and future investments. As of the end of September, the net assets showed a significant decrease compared to previous quarters.
Net Asset Comparison
The details regarding net asset comparisons for the last five quarters provide a clearer picture:
- Q3 2024: Net assets are at $40,165,000.
- Q2 2024: Previous net assets were $49,792,000.
- Q1 2024: $45,892,000 was reported.
- Q4 2023: The net assets were $48,287,000.
- Q3 2023: Assets were at $47,128,000.
As we can observe, the decrease in assets reflects a challenging landscape for the company during this period.
Key Contributors to Decreased Fair Values
Several factors contributed to the shifts in portfolio valuation for Equus during the third quarter:
Decline in Fair Value of Morgan E&P
One of the principal factors was the decrease in the fair value of equity holdings in Morgan E&P, LLC. In recent months, Morgan acquired 6,707 net acres within the Bakken/Three Forks formation. However, as oil prices dipped by 17.6% in the last quarter, production from their operating wells saw a decline. This combination led to a $7.0 million drop in fair value for Equus’s stake in Morgan, down from $26.0 million to $19.0 million by the end of September.
Decrease in Fair Value of Equus Energy
Another area of concern was the Equus Energy, LLC holdings. The fair value held by Equus experienced a $2 million downturn, going from $10 million down to $8 million, primarily due to the same decrease in oil prices that affected Morgan E&P.
Support and Valuation Assistance
To gain clarity in valuing investments such as Morgan and Equus Energy, Equus Total Return sought the expertise of a third-party valuation firm. This underscores the company’s commitment to maintaining transparency and accuracy in their financial reporting and asset evaluations.
About Equus Total Return, Inc.
Equus Total Return operates as a business development company and is traded as a closed-end fund on the stock exchange. The ticker symbol for Equus is "EQS," and it is essential for investors to monitor the Company’s updates actively.
For anyone interested in the latest developments on Equus, more information can be found on their website. Understanding the financial health and prevailing market conditions is vital for making informed investment decisions.
Contact Information
If you require further information, you can reach out to Patricia Baronowski at Pristine Advisers, LLC by calling (631) 756-2486.
Frequently Asked Questions
What is the latest net asset value for Equus Total Return?
The latest net asset value per share is $2.96 as of September 30, 2024.
What caused the decrease in Equus's net assets?
The decrease was primarily due to a decline in the fair value of holdings in Morgan E&P and Equus Energy, influenced by falling oil prices.
How much did Equus Energy decrease in value?
Equus Energy decreased by $2 million, dropping its fair value from $10 million to $8 million during the quarter.
Who can I contact for additional information about Equus?
You can contact Patricia Baronowski at Pristine Advisers, LLC at (631) 756-2486 for further inquiries.
What is the ticker symbol for Equus?
The ticker symbol for Equus Total Return is "EQS" on the New York Stock Exchange.
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