Barnwell Industries, Inc. (NYSE American: BRN) today reported
financial results for the first quarter ended December 31, 2023.
The Company posted quarterly revenue of $6,155,000 and a net loss
of $664,000, or $0.07 per share. In the three months ended December
31, 2022, the Company had quarterly revenue of $7,511,000 and net
earnings of $1,089,000, or $0.11 per share.
Mr. Alexander C. Kinzler, Chief Executive
Officer of Barnwell, commented, “Our loss for the quarter was the
result of a decline in prices of all products; oil, natural gas,
and natural gas liquids which decreased 7%, 57%, and 34%,
respectively, as compared to the prior year period, together with a
decline in land investment results where our equity in income from
affiliates declined $538,000. Additionally, in last year’s first
quarter, our contract drilling segment recognized a $551,000 gain
on the sale of one drilling rig, whereas there was no such gain
this quarter.
Oil and Gas Production Increases Offset by
Price Declines
“We are pleased to report that our oil, natural
gas, and natural gas liquids production increased from the prior
year’s quarter by 21%, 26% and 80%, respectively. The increase in
production was driven mainly by new production from wells in Texas
and from existing Twining wells in Canada. Importantly, through
targeted well optimization investments, our Twining wells, which
represent the largest portion of our production, enjoyed record
quarterly production. General and administrative expenses decreased
$845,000, or 38% as compared to the prior year period, primarily
due to decreases in professional fees, accrued bonus expense, and
share-based compensation.
“To partially protect against further declines
in oil and natural gas prices, during the quarter the Company
entered into certain sale agreements to fix the price of a portion
of its Canadian natural gas sales from April 1, 2024 to October 31,
2024 and to fix the price of a portion of its Canadian oil sales
from January 1, 2024 to June 30, 2024. With these agreements, based
on the Canadian oil and natural gas production per day during the
three months ended December 31, 2023, we anticipate approximately
30% of the Canadian oil and natural gas that the Company sells
during those periods will be sold at fixed prices with the
remaining 70% of such production sold at spot prices.
Strategic Alternatives for Water
Resources
“In December 2023, the Company entered into a
stock purchase agreement with a construction company for the sale
of a Company subsidiary, Water Resources International, Inc.
(“Water Resources” or “WRI”), subject to customary post-closing
price adjustments and the purchaser’s completion of due diligence.
Subsequently, the stock purchase agreement was terminated by the
buyer prior to closing. 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.
Planned Investment in Core
Business
“We remain extremely encouraged by the prospects
in our Twining oil property and are planning to follow up on our
fiscal 2023 approximately $5,000,000 investment in this unique
field. We are currently laying the groundwork to drill one or two
wells in our 100%-owned Twining property in subsequent
quarters.
“The Company remains debt free, and ended the
quarter with $2,478,000 in working capital, including $3,223,000 in
cash and cash equivalents”.
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 RESULTS |
(Unaudited) |
|
Quarter ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
Revenues |
$ |
6,155,000 |
|
|
$ |
7,511,000 |
|
|
|
|
Net (loss)
earnings attributable to Barnwell Industries, Inc. |
$ |
(664,000 |
) |
|
$ |
1,089,000 |
|
|
|
|
Net (loss)
earnings per share – basic and diluted |
$ |
(0.07 |
) |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
Weighted-average shares and equivalent shares
outstanding: |
|
|
|
Basic and
diluted |
|
9,996,760 |
|
|
|
9,956,687 |
CONTACT: |
Alexander C. Kinzler Chief Executive Officer and President Russell
M. Gifford Executive Vice President and Chief Financial
OfficerTelephone (808) 531-8400Fax (808) 531-7181 Website:
www.brninc.com |
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