Oil prices have experienced a surge recently, demonstrating significant growth from mid-December lows, driven by a combination of factors


Low Float (NYSE: EQS) Is On Breakout Watch Based On 3 Key Potential Catalysts (Bell Watch Initiated)

February 13th

SCF Readers,

Oil prices have experienced a surge recently, demonstrating significant growth from mid-December lows, driven by a combination of factors that are impacting both supply and demand. (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.

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.

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.

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.

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.

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

Ukrainian Drone Attack on Russian Oil Refinery (1)

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.

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.

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

3 Key Reasons Why Equus Total Return, Inc. (NYSE: EQS) Could Become A Near Term Breakout Target

1. Ultra-Low Float Situation

With an incredibly low float of less than 7Mn shares available, Equus Total Return, Inc. (NYSE: EQS) is in a unique position. Such scarcity can lead to significantly volatile swings, making it very important to keep a close eye on this one.

2. 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.

3. 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.


Equus Total Return, Inc. (NYSE: EQS): Transitioning from BDC to an Operating Company (2)

Understanding Equus Total Return, Inc. as a BDC

Equus Total Return, Inc. (NYSE: EQS) operates as a Business Development Company (BDC), specializing in in-vest-ments in privately owned, small- and medium-sized enterprises. BDCs like Equus provide access to private market opp's and offer liquidity, making them attractive to track.

Advantages of BDCs

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

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

  • Growth opp's through acquisitions and organic growth.
  • Lower compliance costs as a percentage of assets.
  • Flexibility in issuing equity and other securities.
  • Streamlined related party transactions.
  • Enhanced compensation packages.
  • Expanded in-vest-ment options.

Anticipated Timeline

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

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 opp's and benefits for both the company and its shareholders.


And here's the potential catalysts to focus on right now...

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

As of Monday's closing bell, Finviz was reporting EQS to have a float of fewer than 7Mn shares.

Why is this important? One word: Volatility.

When a profile has a float this small, volatility can create an environment for explosive intraday and short term chart moves.

This environment will typically need another catalyst, like company news, whether good or bad, to spark a move.

Which is why it's important to look out for stuff like this...

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


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.

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.

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.

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

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.

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

The results have been remarkable, with proved undeveloped, probable, and possible reserves values reaching $13+Mn, $30+Mn, and $71+Mn, respectively.

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).

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

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.

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

Read more here.

#3. Strong Insider Ownership Helps Display A Very Noticeable Sign Of Potential Confidence.

Overall, Equus Total Return, Inc. (NYSE: EQS) has several potential catalysts, like a low public float and huge news from their subsidiary.

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

Strong insider ownership can be an indication of a company’s health and long-term potential. (3)

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.

High insider ownership typically signals that insiders believe in the company’s future prospects and have confidence in its management team. (3)

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

The market often views high insider ownership as a positive signal, as it indicates that insiders are fi-nan-cially interested in the company’s success. (3)

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


EQS Recap - The Top 3 Potential Catalysts To Know Right Now

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

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

#3. Strong Insider Ownership Helps Display A Very Noticeable Sign Of Potential Confidence.


Coverage is officially initiated on (NYSE: EQS). Be on the lookout for updates early this week. Talk again soon.


Axel Adams

Editor, SCF

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(Always Remember The St-ock Prices Could Be Significantly Lower Now From The Dates I Provided.)​

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