Barnwell Industries, Inc. Reports Results for the Second Quarter and Six Months Ended March 31, 2019
May 13 2019 - 06:00AM
Barnwell Industries, Inc. (NYSE American: BRN) today reported
losses of $2,125,000, $0.26 per share, and $6,725,000, $0.81 per
share, for the three and six months ended March 31, 2019,
respectively, as compared to net earnings of $679,000, $0.08 per
share, and a net loss of $338,000, $0.04 per share, for the three
and six months ended March 31, 2018, respectively.
Mr. Alexander Kinzler, Chief Executive Officer
of Barnwell, commented, “The loss for the quarter ended March 31,
2019 as compared to last year’s net earnings for the three months
ended March 31, 2018 was largely due to a $2,250,000 gain, before
taxes, in the prior year period primarily from the sale of the
Company’s principal oil property located in the Red Earth area of
Alberta, Canada, there was no such gain in the current
period. Additionally, the comparison was impacted by a
$243,000 non-cash impairment of our oil and natural gas properties
due to low oil and natural gas prices in the current period, there
was no such oil and natural gas impairment in the prior year, and a
$384,000 decrease in contract drilling segment operating results,
due to difficulties encountered on two different drilling
contracts. On a positive note, the Company’s oil and natural
gas production more than doubled in the quarter ended March 31,
2019 as compared to last year’s three months ended March 31, 2018,
136% and 141%, respectively, due to our Twining acquisition which
closed late in fiscal 2018’s fourth quarter. Oil and natural
gas revenues also more than doubled in the current quarter, as
compared to last year.
“The increase in the loss for the six months
ended March 31, 2019 as compared to last year’s loss for the six
months ended March 31, 2018 was due to the aforementioned
$2,250,000 gain, before taxes, in the prior year period from the
sale of an oil property; a $2,413,000 non-cash impairment of our
oil and natural gas properties due to low oil and natural gas
prices; there was no such oil and natural gas impairment in the
prior year; a $1,086,000 decrease in oil and natural gas segment
operating results, before the impairment and income taxes, due
primarily to a 27% decrease in oil prices; a $554,000 decrease in
contract drilling segment operating results and a $460,000 income
tax benefit in the prior year period due to the enactment of
changes to U.S. federal income tax laws in December 2017, whereas
there was no such benefit in the current period.
“Following the December 2018 Alberta Government
announcement of mandatory production curtailments to larger
producers, the Company has seen a significant improvement in oil
and natural gas prices and the decline of Canadian oil
differentials brought on by pipeline capacity constraints.
The Company does not produce any heavy crude and is not impacted by
the production curtailments that have been imposed. The
Alberta government started phasing out this program reducing the
production cuts beginning in February and again in April 2019.
“We are also looking forward to providing more
information on the future development plans for the Increment 2
area of Kaupulehu as the new development partner completes their
planning work for the area. As previously announced, the
venture admitted a new development partner effective March 7, 2019,
bringing a new vision for the development of the remainder of
Increment 2.
“Barnwell ended the quarter with $5,193,000 in
working capital which includes $6,427,000 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 OPERATING
RESULTS |
(Unaudited) |
|
|
Three months ended |
|
Six months ended |
|
March 31, |
|
March 31, |
|
|
2019 |
|
|
|
2018 |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
2,963,000 |
|
|
$ |
1,975,000 |
|
$ |
5,558,000 |
|
|
$ |
3,831,000 |
|
Net (loss) earnings
attributable to Barnwell Industries, Inc. |
$ |
(2,125,000 |
) |
|
$ |
679,000 |
|
$ |
(6,725,000 |
) |
|
$ |
(338,000 |
) |
Net (loss) earnings per share –
basic and diluted |
$ |
(0.26 |
) |
|
$ |
0.08 |
|
$ |
(0.81 |
) |
|
$ |
(0.04 |
) |
Weighted-average shares and equivalent shares outstanding: |
|
|
|
|
|
|
Basic and diluted |
|
8,277,160 |
|
|
|
8,277,160 |
|
|
8,277,160 |
|
|
|
8,277,160 |
|
CONTACT: |
Alexander C.
Kinzler |
|
Chief Executive Officer and President |
|
|
|
Russell M. Gifford |
|
Executive Vice President and Chief Financial
Officer |
|
|
|
Tel: (808) 531-8400 |
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