Equus NAV Drops to $1.19 Driven by $12.35M Morgan E&P Write-Down
Equus Total Return reported net assets of $16.6 million as of December 31, 2025, down from $26.5 million at September 30, 2025, driving NAV per share to $1.19 from $1.90. A $12.35 million write-down at Morgan E&P due to lower oil forward curves and reserve eliminations partially offset by a $1.6 million valuation gain on CitroTech holdings narrowed the NAV.
1. Quarterly NAV Results
Equus Total Return ended the fourth quarter with net assets of $16.57 million, down from $26.50 million in the prior quarter, reducing NAV per share to $1.19 from $1.90. Shares outstanding remained at 13.97 million, with total net assets per share reflecting significant quarterly fluctuations.
2. Decrease in Morgan E&P Value
The company’s holding in Morgan E&P, which controls development rights to about 6,500 net acres in North Dakota’s Bakken/Three Forks formation, was written down by $12.35 million. This decline stems from a lower oil forward price curve at December 31, 2025, and the elimination of certain reserves due to limited production.
3. Increase in CitroTech Holdings
Equus’s investment in CitroTech, comprised of converted convertible notes and warrants, rose in value by $1.6 million to $6.8 million. The increase reflects a rise in CitroTech’s share price from $5.89 to $8.08 during the quarter and the conversion of a $1.5 million senior note into 664,041 shares.