Barnwell Industries, Inc. (NYSE American: BRN) ("Barnwell" or the
"Company") today announced its financial results for the fourth
quarter and year ended September 30, 2023. The Company reported
consolidated revenue of $6.8 million and a net loss of $96,000
which equates to a loss of $0.01 per share for the fourth quarter,
and $25.3 million in full year consolidated revenue, with a net
loss of $961,000 for the full year, or a loss of $0.10 per share.
Alexander Kinzler, Chief Executive Officer of
Barnwell, commented, “Our small loss for the quarter was a result
of declines in prices as compared to the prior year quarter for all
products; oil, natural gas, and natural gas liquids which decreased
10%, 46%, and 45%, respectively. We also incurred an operating loss
of $538,000 at our contract drilling segment in the quarter,
compared to a $247,000 operating profit in this segment in the
prior year period. We are enthusiastic about the proposed sale of
our contract drilling segment. The exit of this segment will
simplify our organizational structure, reduce overhead costs, and
free up capital to deploy into higher return investments including
our Oil and Gas operations. While the sale of this segment has yet
to close, the Company has already seen the benefit of reduced
general and administrative expenses throughout the year. These
expenses fell by $1,088,000 year over year, and we expect these
expenses to continue to decline.
Oil and Gas Production Increases Offset
by Price Declines
As compared to the three months ended September
30, 2022, the Company’s production of all products: oil, natural
gas, and natural gas liquids, increased by 11%, 40% and 50%,
respectively. As compared to the year ended September 30, 2022, the
Company’s production of all products: oil, natural gas, and natural
gas liquids, increased by 12%, 31% and 8%, respectively. The
increase in production was driven mainly by new production in
Canada.
For the year ended September 30, 2023, the
prices of all products; oil, natural gas, and natural gas liquids
decreased 20%, 43%, and 33%, respectively.
To partially protect against further declines in
natural gas prices, subsequent to the end of the Fiscal Year, the
Company entered into certain sale agreements to fix the price of a
portion of its natural gas sales from April 1, 2024 to October 31,
2024. With these agreements, we anticipate approximately 25% of the
natural gas the Company sells during this period will be sold at
fixed prices with the remaining 75% of such production sold at spot
prices.
“Fiscal 2023 also saw the Company make a
significant new $5,354,000 investment in two gross (0.3 net) wells
the in Permian Basin of Texas which commenced production during the
third quarter. Additionally, the Company invested $4,770,000 for
new facilities in the Twining area and three gross (0.9 net) North
Twining Unit wells, where Barnwell holds a 29% non-operated
interest. These projects commenced production during the latter
part of our third quarter.
Sale of Contract Water Well Drilling
Business
“The Company has entered into agreements for the
sale of its Hawaii contract water well drilling operation which are
anticipated to close in early 2024, subject to customary
post-closing price adjustments and the purchaser’s completion of
due diligence. We are optimistic that the disposition of this
division will promote better analysis of Barnwell by all
constituencies, and will allow us to pursue what we perceive to be
high return on invested capital opportunities in projects such as
our Twining oil property.
We expect to continue the development of Twining
with new drilling in 2024 as we continue to actively explore
acquisition, divestiture and financing opportunities related to
this lucrative field. The Company remains debt free, and ended the
year with $2,487,000 in working capital, which includes $2,830,000
in cash and cash equivalents.”
Forward-Looking
Statements
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 SEC. 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) |
|
|
Year ended |
|
Three months
ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
25,269,000 |
|
|
$ |
28,545,000 |
|
$ |
6,844,000 |
|
|
$ |
8,384,000 |
|
|
|
|
|
|
|
|
|
|
Net (loss)
earnings attributable to Barnwell
Industries, Inc. |
|
$ |
(961,000 |
) |
|
$ |
5,513,000 |
|
$ |
(96,000 |
) |
|
$ |
(143,000 |
) |
|
|
|
|
|
|
|
|
|
Net (loss)
earnings per |
|
|
|
|
|
|
|
|
share – basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
0.57 |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average
shares and |
|
|
|
|
|
|
|
equivalent shares
outstanding: |
|
|
|
|
|
|
Basic
and diluted |
|
|
9,969,856 |
|
|
|
9,732,936 |
|
|
9,990,778 |
|
|
|
9,956,687 |
|
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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