Barnwell Industries, Inc. Reports Results for its Second Quarter Ended March 31, 2024
May 14 2024 - 6:00AM
Barnwell Industries, Inc. (NYSE American: BRN) today reported
financial results for its second fiscal quarter ended March 31,
2024. For the quarter, the Company had revenue of $5,774,000 and a
net loss of $1,772,000, $0.18 per share. In the three months ended
March 31, 2023, the Company reported quarterly revenue of
$5,239,000 and a net loss of $1,237,000, $0.12 per share.
Mr. Craig D. Hopkins, Chief Executive Officer of
Barnwell, commented “On April 1, 2024, I started in my new role as
President and CEO of the Company. I am excited about Barnwell’s
prospects in Twining and the growth from our investments in that
region. I am also confident we can continue to reduce general and
administrative expenses through increased focus on our key
business. Along with greater investor engagement and a rigorous
focus on capital allocation, I hope to make impactful changes to
our operations. The Twining oil property continues to perform well,
and plans are in place to drill at least one 100%-owned and
operated new well during the remainder of fiscal 2024.”
Oil and Gas Production Increases Offset
by Non-Cash Impairment
Oil, gas and natural gas liquids production
increased 16%, 47% and 100%, respectively, for the three months
ended March 31, 2024, compared to the prior year’s quarter. The net
loss for the three months ended March 31, 2024, was primarily due
to a $1,677,000 non-cash impairment of our oil and natural gas
properties during the current quarter. This impairment is largely
due to the changing rolling average first-day-of-the-month prices
used in the ceiling test calculation. Operating costs increased
this quarter due to new production from our Texas property which
commenced production in the third fiscal quarter of 2023, in
addition to increased investments to enhance production and
efficiency for existing wells and facilities at our Twining
property in Alberta.
Land Segment Generates Cash
Proceeds
The land investment segment operating results
improved significantly due to the Kukio Resort Development
Partnerships sale of the last two remaining single-family lots
within Increment I in the second quarter, which resulted in the
Company receiving $500,000 in percentage of sales payments and
$953,000 in net cash distributions during the three months ended
March 31, 2024. These real estate sales increased our reported
earnings of affiliates by $1,071,000 for the three months ended
March 31, 2024, as compared to the same period in the prior
year.
Contract Drilling Segment
As previously stated, the Company continues to
investigate the appropriate strategic, business and financial
alternatives for Water Resources which may include, among other
things, a sale of its stock or assets, or an orderly wind-down of
its operations after all contracts in backlog are complete, along
with a liquidation of WRI’s drilling rigs and equipment. The
contract drilling segment’s operating loss increased $424,000 in
the three months ended March 31, 2024, as compared to the same
period in the prior year due to operational issues encountered on
jobs, resultant increases in estimated costs, and higher labor
expense.
Continued Reduction in General and
Administrative Expenses
General and administrative expenses decreased
$669,000, 33%, for the three months ended March 31, 2024 compared
to the prior year period, primarily due to decreases in
professional fees and costs attributed to the shareholders’
cooperation and support agreement in the prior year period as
compared to no such costs in the current year period.
The Company ended the quarter with $3,332,000 in
working capital and remains debt free, allowing plenty of
flexibility to make additional investments in Twining.
The information contained in this press release
contains “forward-looking statements,” within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. A forward-looking
statement is one which is based on current expectations of future
events or conditions and does not relate to historical or current
facts. These statements include various estimates, forecasts,
projections of Barnwell’s future performance, statements of
Barnwell’s plans and objectives, and other similar statements.
Forward-looking statements include phrases such as “expects,”
“anticipates,” “intends,” “plans,” “believes,” “predicts,”
“estimates,” “assumes,” “projects,” “may,” “will,” “will be,”
“should,” or similar expressions. Although Barnwell believes that
its current expectations are based on reasonable assumptions, it
cannot assure that the expectations contained in such
forward-looking statements will be achieved. Forward-looking
statements involve risks, uncertainties and assumptions which could
cause actual results to differ materially from those contained in
such statements. The risks, uncertainties and other factors that
might cause actual results to differ materially from Barnwell’s
expectations are set forth in the “Forward-Looking Statements,”
“Risk Factors” and other sections of Barnwell’s annual report on
Form 10-K for the last fiscal year and Barnwell’s other filings
with the Securities and Exchange Commission. Investors should not
place undue reliance on the forward-looking statements contained in
this press release, as they speak only as of the date of this press
release, and Barnwell expressly disclaims any obligation or
undertaking to publicly release any updates or revisions to any
forward-looking statements contained herein.
COMPARATIVE OPERATING RESULTS |
(Unaudited) |
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Three months ended |
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Six months ended |
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March 31, |
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March 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues |
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$ |
5,774,000 |
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$ |
5,239,000 |
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$ |
11,929,000 |
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$ |
12,750,000 |
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Net loss attributable to Barnwell Industries, Inc. |
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$ |
(1,772,000 |
) |
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$ |
(1,237,000 |
) |
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$ |
(2,436,000 |
) |
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$ |
(148,000 |
) |
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Net loss per |
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share – basic and diluted |
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$ |
(0.18 |
) |
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$ |
(0.12 |
) |
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$ |
(0.24 |
) |
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$ |
(0.01 |
) |
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Weighted-average shares and |
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equivalent shares outstanding: |
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Basic and diluted |
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10,019,172 |
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9,956,687 |
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10,007,905 |
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9,956,687 |
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CONTACT: |
Craig D.
Hopkins |
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Chief Executive Officer and President |
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Phone: (403) 531-1560 |
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Email: info@bocl.ca |
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