Barnwell Industries, Inc. (NYSE American: BRN) today reported net
earnings of $2,531,000, $0.25 per share, and $5,656,000, $0.59 per
share, for the three and nine months ended June 30, 2022,
respectively, as compared to net earnings of $4,978,000, $0.59 per
share, and $4,706,000, $0.57 per share, for the three and nine
months ended June 30, 2021, respectively.
Mr. Alexander C. Kinzler, Chief Executive
Officer of Barnwell, commented, “We are pleased to report that our
oil and natural gas revenues have more than doubled in both the
three months and nine months ended June 30, 2022, as compared to
the prior year periods. This is due to higher prices for all
products; oil, natural gas, and natural gas liquids increasing 71%,
137%, and 47%, respectively, for our third quarter as compared to
the prior year’s quarter and 82%, 99%, and 59%, respectively, for
our nine-month period as compared to the prior year’s nine-month
period. At the same time our quarterly production of all petroleum
products, oil, natural gas, and natural gas liquids increased 34%,
37%, and 117%, from last year’s quarter. Our Oklahoma operations
generated $840,000 (12%) and $2,796,000 (17%) of our oil and
natural gas segment revenues for the three and nine months ended
June 30, 2022, respectively, which is from shale oil wells that
typically have steep production declines.
“The land investment segment’s performance
declined as no lots were sold within Phase II of Increment I by the
Kukio Resort Development Partnerships at Kaupulehu, North Kona,
Hawaii, as compared to six lots in last year’s third quarter. The
Company did receive $385,000 in net cash distributions in our third
quarter. Additionally, in last year’s third quarter the Company
recognized a $2,341,000 gain on termination of its post-retirement
medical plan, there was no such gain this quarter.
“For the nine months ended June 30, 2022, as
compared to last year’s nine months ended June 30, 2021, the
increase in earnings was also largely due to oil and natural gas
segment operating results which reported a $6,832,000 improvement
to $8,121,000. This was due to increases in production and prices
in all products and partially to an asset impairment charge of
$630,000 in the prior year period as compared to none in the
current nine-month period. The land investment segment had a
$443,000 decrease in operating profit and a $1,626,000 decrease in
earnings of affiliates due to lower real estate sales. Contract
drilling operating results also decreased $861,000 due to the
completion of a significant drilling contract in the prior year
period. Additionally, in the prior year period, the Company
recognized a $2,341,000 gain on termination of its post-retirement
medical plan, whereas there was no such gain in the current year
period.
“In the North Twining Unit (“NTU”) in which
Barnwell holds a 29% interest, the two new wells that began
production in our second fiscal quarter continue to perform
strongly with a gross, pre-royalty, combined average over their 120
days of initial production of 408 barrels of oil, 80 barrels of
natural gas liquids and 2,600 thousand cubic feet (“MCF”) of
natural gas per day.
“A second drilling program consisting of four
wells (1.16 net) in the NTU began in our third quarter. Of these
four, the first has been completed and began production in late
July with very encouraging initial rates. The next two wells have
been drilled and are expected to be completed and online later this
month and the fourth well is being drilled now to begin production
in September. The Company’s cost for this program is estimated to
be approximately $3,250,000. Also, the operator of the NTU has
identified potential additional drilling locations in addition to
the current program.
“Barnwell’s 100% working interest well that was
brought onstream in March 2022 has been cleaning up more slowly
than expected with an initial production over its first 120 days of
440 MCF equivalent per day, consisting of 38 barrels of oil, 5
barrels of natural gas liquids and 195 MCF of natural gas per day.
Now that 100% of the load water has been recovered, oil rates from
this well have recently started increasing, and wellhead
compression will be added in the coming weeks to further increase
rates.
“The Company’s liquidity remains strong as the
Company ended the quarter with $12,339,000 in working capital,
which includes $12,574,000 in cash and cash equivalents and as a
result we are pleased to report that the Board of Directors has
declared a cash dividend of $0.015 per share payable on September
6, 2022 to the holders of record as of the close of business on
August 23, 2022 as well as suspending sales under our at-the-market
offering program until further notice.”
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 |
|
Nine months ended |
|
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
8,028,000 |
|
|
$ |
5,114,000 |
|
|
$ |
20,161,000 |
|
|
$ |
13,499,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Barnwell Industries, Inc. |
|
$ |
2,531,000 |
|
|
$ |
4,978,000 |
|
|
$ |
5,656,000 |
|
|
$ |
4,706,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share – basic and diluted |
|
$ |
0.25 |
|
|
$ |
0.59 |
|
|
$ |
0.59 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares and equivalent shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
9,956,687 |
|
|
|
8,398,001 |
|
|
|
9,657,532 |
|
|
|
8,317,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: |
Alexander C. Kinzler Chief Executive Officer and President |
|
|
|
Russell M. Gifford Executive Vice President and Chief Financial
Officer |
|
|
|
Tel: (808) 531-8400 |
Barnwell Industries (AMEX:BRN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Barnwell Industries (AMEX:BRN)
Historical Stock Chart
From Apr 2023 to Apr 2024