Oil Prices on the Rise as a Hidden Gem Surfaces!(1)(2)

See why now could be the best time to start your research on Equus Total Return, Inc. (NYSE: EQS).

Oil Prices Surge Amid Strong U.S. Economy and Geopolitical Tensions (1)

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Oil prices have experienced a significant surge, reaching their highest levels since December, driven by a combination of factors that are impacting both supply and demand. (1)

Strong U.S. Economic Growth (1)

One of the primary drivers behind the recent increase in oil prices is the faster-than-expected growth of the U.S. economy in the last quarter of the year. (1)

U.S. economic data has revealed robust growth, signaling increased demand for oil and energy resources. This positive demand indicator has contributed to the upward pressure on oil prices.(1)

Geopolitical Tensions in the Middle East (1)

Geopolitical tensions in the Middle East continue to play a pivotal role in the oil market. Disruptions in the Red Sea corridor, a critical global trade route, have caused concerns and pushed oil prices higher.(1)
The recent Houthi missile attack that forced Maersk ships, including those carrying U.S. military supplies, to retreat in the Bab al-Mandab Strait off Yemen has heightened these concerns.(1)

Joshua Mahony, Chief Market Analyst at Scope Markets, noted, “We are finally seeing energy markets wake up to the distinct possibility that these supply chain disruptions will rumble on for months yet.” (1)

The uncertainty surrounding a potential military solution to ensure safe passage further adds to the tension. (1)

Ukrainian Drone Attack on Russian Oil Refinery (1)

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Another factor contributing to supply worries and driving up oil prices is a Ukrainian drone attack on an oil refinery in southern Russia. This incident has raised concerns about the stability of oil supply in the region. (1)

Drawdown in U.S. Crude Inventories (1)

In the United States, a larger-than-expected drawdown in crude oil inventories, primarily attributed to extreme cold weather conditions, has also supported the recent surge in oil prices. U.S. inventories fell by 9.2 million barrels last week, according to the Energy Information Administration. (1)

China's Economic Recovery (1)

Additionally, oil prices have received a boost from expectations of China’s economic recovery. China’s central bank’s announcement of a significant cut in bank reserves has raised hopes of increased oil demand. This stimulus had been anticipated for several months, and its realization could further drive up oil prices. (1)

In this dynamic oil market environment, Equus Total Return, Inc. (NYSE: EQS) is one little-known company to keep an eye on.(2)

As oil prices respond to a multitude of factors, including economic data, geopolitical tensions, and supply disruptions, Equus Total Return, Inc. (NYSE: EQS)’s strategic positioning in the energy sector may present opportunities for industry stakeholders seeking exposure to this volatile market.(2)

As the situation continues to evolve,you should immediately begin your research on Equus Total Return, Inc. (NYSE: EQS).

5 Reasons Why Equus Total Return, Inc. (NYSE: EQS) Could Witness Significant Upside Potential in 2024

1. Hidden Gem Emerges Amid Oil Price Surge:

As oil prices reach their highest levels since December, Equus Total Return, Inc. (NYSE: EQS) has surfaced as an intriguing hidden gem amidst the market turmoil, making it a compelling research subject.(1)(2)

2. Ultra-Low Float Situation

With an incredibly low float of less than 7 million shares available as of January 26, 2024, Equus Total Return, Inc. (NYSE: EQS) is in a unique position. Such scarcity often leads to significant price swings, making it very important to keep a close eye on this (5)(6)

3. Nano-Cap Status

Classified as a nano-cap company, Equus Total Return, Inc. (NYSE: EQS) typically has market capitalizations below $50 million. The smaller size of nano-caps offers a higher potential for rapid valuation changes, adding to its appeal. (5)(6)

4. Strong Insider Ownership

With over 54% insider ownership, Equus Total Return, Inc. (NYSE: EQS) demonstrates a high level of confidence from its management team. Such insider interest aligns their success with that of other shareholders, providing transparency and potential for long-term growth. (6)(9)

5. Strategic Expansion

Amidst the recent surge in oil prices, Morgan E&P, a subsidiary of Equus Total Return, Inc. (NYSE: EQS), has been strategically expanding its net acreage and reserves in the Bakken region which has recently witnessed acquisition activity. This expansion signifies a commitment to growth and adds depth to the company's potential. (1)(2)

Keep reading to see why Equus Total Return, Inc. (NYSE: EQS) needs to be on the top of your daily watchlist.

Equus Total Return, Inc. (NYSE: EQS)’s Ultra-Low Float Needs Your Immediate Attention! (7)

Low float stocks refer to the securities that remain after a company’s stock has been issued to its controlling investors — meaning there are relatively few shares for the public to buy. (5)

Market participants typically consider a float of 10-to-20 million shares as a low float. Some larger corporations have very high floats in the billions.(7)

Companies with a low float frequently have a large portion of their equity held by controlling investors such as directors and employees, which leaves only a tiny percentage of the stock available for public trading.(5)

That limited supply can cause dramatic price swings if demand changes quickly.(5)

Because low-float stocks have fewer shares available, market participants may have difficulty finding shares available.(5)

Equus Total Return, Inc. (NYSE: EQS) has less than 7M shares available in its float (as of 1/26/2024) according to Finviz.com.(6) A low-float stock can make significant moves due to volatility from so few shares being available(7), so this could be one interesting situation to watch closely.

Equus Total Return, Inc. (NYSE: EQS) is also considered a nano-cap. In general, nano-cap companies have market capitalizations of less than $50 million.(7) Because nano-cap stocks are significantly smaller than mid-cap or large-cap companies, they have a higher potential to change valuation quickly.(8)

As of 1/26/2024, Equus Total Return, Inc. (NYSE: EQS) has a market cap of approximately $20.07M according to FinViz.com.(6) 7

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Overall, Equus Total Return, Inc. (NYSE: EQS) has several positive catalysts, such as its potential for growth and low public float, making it an attractive option for those looking to take advantage of swings with significant potential.

Maybe that’s why Equus Total Return, Inc. (NYSE: EQS) insiders are holding onto so many shares according to Finviz.(6)

Strong insider ownership can be an indication of a company’s health and long-term potential.

When insiders own a significant percentage of a company’s shares, they have a vested interest in the company’s success, which can align their interests with those of other shareholders.(9)

High insider ownership typically signals that insiders believe in the company’s future prospects and have confidence in its management team.(9)

Equus Total Return, Inc. (NYSE: EQS) has over 54% insider ownership, which is a strong indication of confidence in the company’s future prospects.(6)

This level of insider ownership could be a sign that the management team has a significant stake in the company’s success.

The market often views high insider ownership as a positive signal, as it indicates that insiders are financially interested in the company’s success.

This can also provide shareholders with greater transparency into the company’s operations and decision-making processes, as insiders are more likely to share information with shareholders who have a vested interest in the company’s success.(9)

Which is why things could get very interesting and also why you need to start your research on Equus Total Return, Inc. (NYSE: EQS).

Equus Total Return, Inc. (NYSE: EQS) Subsidiary, Morgan E&P, Expands in the Bakken: A Closer Look (2)

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Equus Total Return, Inc. (NYSE: EQS) and its wholly-owned subsidiary, Morgan E&P, LLC, have recently made significant strides in their exploration and production endeavors within the Bakken/Three Forks formation in the Williston Basin of North Dakota.(2)

This expansion comes as part of Equus Total Return, Inc. (NYSE: EQS)’s ongoing efforts to enhance its presence in the oil and gas industry.

Morgan E&P's Acreage Expansion

Morgan E&P, LLC, a subsidiary of Equus, has demonstrated its commitment to growth by strategically acquiring additional mineral rights in the Bakken region.(2)

The company has expanded its net acreage from 4,747.52 to 5,976.84, marking an impressive increase of 1,229.32 net acres, approximately 25.9% growth.(2)

This expansion reflects Morgan E&P’s confidence in the potential of the Bakken/Three Forks formation as a valuable asset in their portfolio.(2)

To further bolster their efforts in the Bakken, Morgan E&P engaged the expertise of the petroleum engineering firm, Cawley, Gillespie & Associates, Inc. (CG&A), to conduct a comprehensive reserve analysis.(2)

The evaluation utilized the November 30th, 2023 NYMEX strip pricing and applied a discount rate of 10% (PV 10 Valuation). (2)

The results have been remarkable, with proved undeveloped, probable, and possible reserves values reaching $13,575,442, $30,841,802, and $71,751,024, respectively. (2)

CG&A’s analysis has also reaffirmed the presence of forty-eight (48) gross drilling locations, with an increase in Morgan’s net drilling locations from fifteen (15) to eighteen (18). (2)

As Morgan E&P continues to acquire additional net acreage and working interests, the number of net drilling locations is expected to grow accordingly. (2)

It’s important to note that while these estimates are promising, neither CG&A nor Morgan can guarantee the exact recoverable amounts from these properties. (2)

However, based on geological data, the estimated ultimate recovery (“EUR”) from a single well is expected to be approximately 814,000 barrels of oil equivalent. (2)

About Morgan E&P, LLC

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Morgan E&P, LLC, operates as an upstream exploration and production company with a primary focus on developing oil and gas assets across North America. (2)

As a wholly-owned subsidiary of Equus Total Return, IncMorgan E&P plays a pivotal role in Equus’ strategy to expand and diversify its energy-related ventures. (2)

Equus Total Return, Inc. (NYSE: EQS): Transitioning from BDC to an Operating Company

Understanding Equus Total Return, Inc. as a BDC

Equus Total Return, Inc. (NYSE: EQS) operates as a Business Development Company (BDC), specializing in investments in privately owned, small- and medium-sized enterprises. BDCs like Equus provide access to private market opportunities and offer liquidity, making them attractive to a broad range of investors. (12)

Advantages of BDCs (13)

BDCs offer advantages such as access to private companies, enhanced liquidity, and transparency due to their regulated nature. Equus, along with its subsidiary, Morgan E&P, LLC, has been actively expanding in the Bakken region, demonstrating growth potential.

Seeking to Transform Equus into an Operating Company (12)

Changing Their Status as an Investment Company

Equus Total Return, Inc. (NYSE: EQS) plans to shift from its BDC status to become an operating company, unlocking various benefits: (12)

Anticipated Timeline (12)

Equus Total Return, Inc. (NYSE: EQS) is actively evaluating merger and acquisition candidates and transaction structures. (12)

After securing shareholder approval, they will actively pursue the transformation into an operating company, with the timeline contingent on meeting necessary conditions.

Equus Total Return, Inc. (NYSE: EQS) is on the path to transition from a BDC to an operating company, aiming to provide enhanced growth opportunities and benefits for both the company and its shareholders. (12)

The Acquisition Wave Reshaping the Williston Basin Landscape (15)

The Williston Basin, predominantly nestled in North Dakota, has witnessed a remarkable surge in acquisition activities that are rapidly redefining its energy landscape. These strategic acquisitions across the upstream and midstream sectors underscore the region’s growing significance and its potential for substantial economic development. (15)

Enerplus's Strategic Move (15)

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In March 2021, Enerplus executed a significant acquisition, acquiring private Williston Basin operator Bruin E&P Partners LLC for a substantial $465 million. This transformative deal brought an impressive 151,000 net acres into Enerplus’s fold, further solidifying its presence in the lucrative Bakken play. With a portfolio boasting light oil assets scattered throughout North Dakota and Montana, Enerplus is poised to leverage the basin’s vast resources. (15)

Northern Oil & Gas Seizes Opportunities

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In 2022, Northern Oil and Gas boldly entered into an agreement with an undisclosed entity for the acquisition of non-operated interests in the Williston Basin, primarily concentrated in Dunn, McKenzie, and Williams counties, North Dakota. As the Permian Basin continues to be a source of growth, Northern Oil & Gas remains committed to expanding its Williston Basin portfolio. President Adam Dirlam’s statement underscores the company’s strategic approach to seize opportunities in the region. (15)

Summit's Strategic Pivot

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Summit Midstream Partners made a strategic shift within the Williston Basin following its $40 million sale of the Bison gas gathering system to Steel Reef in 2022. This move redirected Summit’s focus towards expanding crude oil and produced water gathering systems, particularly in Williams and Divide Counties, North Dakota. Summit’s adaptability reflects its dedication to meeting the evolving needs of the basin. (15)

Summit's Strategic Pivot

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Devon Energy made headlines with its $865 million acquisition of the assets of RimRock Oil and Gas, a Warburg Pincus portfolio company operating in the Williston Basin. This acquisition introduced a contiguous position of 38,000 net acres (88% working interest) that perfectly aligned with Devon’s existing holdings. The transaction also enriched Devon’s inventory with over 100 highly undrilled locations, ensuring sustained high-margin production and robust cash flow. (15)

Chord Energy Emerges

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The year 2022 marked a monumental moment when Whiting Petroleum Corp. and Oasis Petroleum Inc. merged to create Chord Energy, valued at a staggering $6 billion. Chord Energy swiftly emerged as the largest net acreage holder and the second-largest producer in the Williston Basin, contributing to approximately 10% of the basin’s total production. Oasis Petroleum’s steadfast focus on targeting the Middle Bakken and Three Forks formations significantly bolstered Chord Energy’s position. (15)

Diamondback Energy's Strategic Transaction

In 2021, Diamondback Energy sealed a substantial $745 million cash transaction with Oasis Petroleum Inc., effectively selling select Williston Basin assets. This strategic move expanded Oasis Petroleum’s footprint and added valuable assets to its already impressive portfolio. (15)

Chord Energy Corp. Bolsters Williston Basin Presence with $375 Million ExxonMobil Asset Acquisition (16)

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In June of 2023, Chord Energy’s subsidiary inked an agreement to acquire valuable assets in the Williston Basin from Exxon Mobil and its affiliates, marking a significant milestone with a transaction valued at $375 million. (16)

A Surge of Acquisitions in the Williston Basin(15)

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The Williston Basin, sprawling over 5000 square miles, is now witnessing an unprecedented wave of acquisitions that promise to reshape its energy landscape. (15)

With 126 liquid terminals and 38 processing plants supporting resource mining, transportation, and processing, the basin has cemented its status as a key contributor to the U.S. energy sector. (15)

The Bakken oil and gas development within the basin remains a prolific producer, churning out over 1.4 million barrels of oil per day. With substantial investments pouring into midstream infrastructure, the Williston Basin is primed for further growth and expansion. (15)

Seizing the Acquisition Opportunity

Approximately 92% of produced natural gas in the Williston Basin is already captured and put to use. However, around 8% of the gas is still flared, presenting a substantial opportunity for expanding gas gathering and processing capacity or harnessing mobile gas generators. As natural gas prices continue to climb, these forward-thinking solutions hold the promise of a brighter future for the region.(15)

The Williston Basin’s acquisition frenzy is marking a new era of growth and development. These strategic moves not only signify the basin’s growing importance but also hold the potential to fuel economic prosperity and innovation across the region. (15)

Equus Total Return, Inc. (NYSE: EQS) Reports Strong Third Quarter Net Asset Value and Morgan E&P's Drilling Initiative (17)

In November 2023, Equus Total Return, Inc. (NYSE: EQS) revealed its third-quarter net asset value, marking a significant milestone for the company. (17)

The highlight of this announcement was the remarkable performance of its wholly-owned subsidiary, Morgan E&P, LLC, which has been actively expanding and enhancing its operations in the Bakken/Three Forks formation within the Williston Basin of North Dakota. (17)

Strong Growth in Net Asset Value (17)

Equus Total Return, Inc. reported net assets as of September 30, 2023, amounting to $47,128, a significant increase compared to previous quarters. The comparative data below offers a clear snapshot of EQS’s net asset value over the past year:

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The most significant takeaway from this report was the surge in net asset value per share, which rose to $3.49 as of September 30, 2023, from $2.96 as of June 30, 2023. (17)

Morgan E&P's Expansion and Drilling Initiative (17)

Morgan E&P, a wholly-owned subsidiary of Equus Total Return, Inc., has been instrumental in driving the company’s growth. On May 22, 2023, Morgan completed the acquisition of 4,747.52 net acres in the Bakken/Three Forks formation. (17)

This strategic move was followed by another acquisition of an additional 1,150 net acres during the third quarter of 2023.(17)

Moreover, the value of Morgan’s reserves experienced significant growth in the same quarter, signaling the promising potential of its assets in the Bakken region. The number of net drilling locations also increased, indicating a robust drilling program. Most notably, Morgan E&P initiated the drilling of two wells during this period. (17)

As of September 30, 2023, Equus Total Return, Inc. valued Morgan’s equity at approximately $15.0 million. This valuation is primarily based on the company’s expectations of Morgan successfully completing its two ongoing wells and generating future operating cash flow.(17)

It’s worth noting that the company enlisted the support of a reputable third-party valuation firm to ensure the accuracy and validity of the fair value determination for its investment in Morgan E&P, LLC. (17)

Equus Total Return, Inc. (NYSE: EQS)’s third-quarter net asset value report showcases a remarkable increase in its net asset value per share. (17)
This growth is largely attributed to the outstanding performance of its wholly-owned subsidiary, Morgan E&P, LLC, in the Bakken/Three Forks formation. (17)

Morgan E&P’s expansion efforts, coupled with the initiation of drilling activities, underscore the company’s commitment to maximizing the potential of its energy-related investments. (17)

As Equus Total Return, Inc. continues to monitor and support the growth of Morgan E&P, the company positions itself for further success in the dynamic energy market. Industry stakeholders should be watching Equus Total Return, Inc. (NYSE: EQS) closely as these promising developments unfold.

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Oil Prices on the Rise as a Hidden Gem Surfaces!(1)(2)

See why now could be the best time to start your research on Equus Total Return, Inc. (NYSE: EQS)

5 Reasons Why Equus Total Return, Inc. (NYSE: EQS) Could Witness Significant Upside Potential in 2024

1. Hidden Gem Emerges Amid Oil Price Surge:

As oil prices reach their highest levels since December, Equus Total Return, Inc. (NYSE: EQS) has surfaced as an intriguing hidden gem amidst the market turmoil, making it a compelling research subject.(1)(2)

2. Ultra-Low Float Situation

With an incredibly low float of less than 7 million shares available as of January 26, 2024, Equus Total Return, Inc. (NYSE: EQS) is in a unique position. Such scarcity often leads to significant price swings, making it very important to keep a close eye on this (5)(6)

3. Nano-Cap Status

Classified as a nano-cap company, Equus Total Return, Inc. (NYSE: EQS) typically has market capitalizations below $50 million. The smaller size of nano-caps offers a higher potential for rapid valuation changes, adding to its appeal. (5)(6)

4. Strong Insider Ownership

With over 54% insider ownership, Equus Total Return, Inc. (NYSE: EQS) demonstrates a high level of confidence from its management team. Such insider interest aligns their success with that of other shareholders, providing transparency and potential for long-term growth. (6)(9)

5. Strategic Expansion

Amidst the recent surge in oil prices, Morgan E&P, a subsidiary of Equus Total Return, Inc. (NYSE: EQS), has been strategically expanding its net acreage and reserves in the Bakken region which has recently witnessed acquisition activity. This expansion signifies a commitment to growth and adds depth to the company's potential. (1)(2)

Source 1: https://www.reuters.com/markets/commodities/oil-prices-rise-big-draw-us-crude-stocks-china-stimulus-hopes-2024-01-25/
Source 2:https://finance.yahoo.com/news/equus-subsidiary-morgan-e-p-142000417.html
Source 3: https://static.foxbusiness.com/foxbusiness.com/content/uploads/2020/05/oil-iStock-00407.png
Source 4: https://i.ytimg.com/vi/iogeipf4cWY/maxresdefault.jpg
Source 5: https://www.sofi.com/learn/content/understanding-low-float-stocks/
Source 6: https://finviz.com/quote.ashx?t=EQS&p=d
Source 7: https://www.investopedia.com/terms/n/nanocap.asp
Source 8: https://www.benzinga.com/money/best-nano-cap-stocks
Source 9: https://fastercapital.com/keyword/high-insider-ownership.html
Source 10: https://www.otcmarkets.com/stock/EQS/overview
Source 11: https://www.fossilfuelconnections.org/bakken-oil-shale-basin
Source 12: https://equuscap.com/about/operating-company-strategy/
Source 13: ttps://www.forbes.com/advisor/investing/business-development-company/
Source 14: https://morganep.com/
Source 15: https://rextag.com/blog/Exploring-the-Energy-Lifeline-A-Tour-of-Williston-Basin-s-Midstream-Infrastructure
Source 16: https://rextag.com/blog/Chord-Energy-Corp-Expands-Williston-Basin-Footprint-with-375-Million-Acquisition-from-Exxon-Mobil
Source 17: https://finance.yahoo.com/news/equus-announces-third-quarter-net-232200782.html

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