Equus Total Return Reports Q2 NAV Down to $2.51, GEVI Appreciation and Morgan E&P Loan Facility

Equus Total Return reported a Q2 2025 net asset value of $34.1 million, a decrease from $49.79 million in Q2 2024. NAV per share fell to $2.51 from $2.52 in Q1 2025. The fair value of Morgan E&P decreased by $1.65 million, while investment in General Enterprise Ventures appreciated to $10.6 million. Morgan E&P secured a $3 million loan facility and hired a strategic consultant post-Q2 2025.

Equus Total Return Inc. (NYSE: EQS) reported its net assets as of June 30, 2025, amounting to $34.1 million, marking a decrease from $49.79 million in the same period last year [1]. The net asset value (NAV) per share decreased to $2.51 from $2.52 in the previous quarter (Q1 2025).

The company's portfolio experienced significant changes in two main holdings. The investment in General Enterprise Ventures (GEVI) saw substantial appreciation, with the collective value of its convertible note and warrant reaching $10.6 million as GEVI's share price increased from $1.20 to $1.95. This investment, structured as a convertible note with warrants acquired in February 2025 for $1.5 million, is now valued at $10.6 million, representing an exceptional return in just four months and constituting approximately 31% of Equus's total net assets [2].

Offsetting this gain was a $1.65 million decrease in the valuation of Morgan E&P holdings, from $14 million to $12.35 million, attributed to declining oil forward price curves. Despite this decline, Morgan E&P remains Equus's largest position at 36% of net assets. Post-quarter developments for Morgan include the strategic hiring of Michael Reger, an industry expert, and securing a $3 million loan facility for drilling operations in North Dakota's Williston Basin [2].

Equus Total Return's Q2 2025 results reveal a marginal decline in NAV per share from $2.52 to $2.51, with total net assets of $34.1 million. This represents the second consecutive quarter of relatively stable NAV following a significant drop from $2.96 in Q3 2024 to $2.17 in Q4 2024, and a partial recovery in Q1 2025 [2].

The company reported revenue of USD 0.357 million for the second quarter, compared to USD 0.331 million a year ago. Net loss was USD 0.086 million compared to net income of USD 3.9 million a year ago. Basic loss per share from continuing operations was USD 0.01 compared to basic earnings per share from continuing operations of USD 0.29 a year ago. Diluted loss per share from continuing operations was USD 0.01 compared to diluted earnings per share from continuing operations of USD 0.29 a year ago [2].

The longer-term NAV trend remains concerning, with a 31.4% decline year-over-year from $3.66 in Q2 2024. This suggests Equus continues to face challenges in maintaining portfolio value despite recent stabilization. The concentration of assets in two major holdings (GEVI and Morgan representing over 67% of the portfolio) also indicates significant exposure to sector-specific risks, particularly in energy markets where Morgan operates [2].

References:
[1] https://seekingalpha.com/news/4486502-equus-total-return-reports-q2-net-assets-of-34_1m
[2] https://www.ainvest.com/news/equus-total-return-announces-q2-net-asset-net-asset-share-decreases-2-51-2508/