Barnwell Industries Announces Pension Plan Termination and Planned Reversion of Surplus Assets

The estimated $3.7 million excess over retirement obligations is not net proceeds; costs, taxes and possible benefit increases remain.

Rhea-AI Summary

Barnwell Industries (BRN) has decided to terminate its defined benefit pension plan, satisfy its obligations and recover remaining surplus assets. The company intends to secure participants' benefits through annuity purchases and anticipates surplus reverting in December 2026.

As of September 30, 2026, plan assets were approximately $12.8 million, versus an estimated $7.3 million termination liability and approximately $1.8 million in related supplemental executive retirement obligations. The approximately $3.7 million excess is before administrative and transaction costs, applicable taxes and any participant benefit increase. Estimates are preliminary; final proceeds depend on annuity pricing, interest rates, investment performance and asset values through settlement, final benefits, costs and taxes. All plan liabilities must be satisfied before any reversion. Barnwell is evaluating strategic investments and acquisitions.

4 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointPlan assets exceed estimated retirement obligations by approximately $3.7 million, before costs, taxes and any benefit increase. 26% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Surplus reversion is anticipated in December 2026, potentially freeing pension capital for redeployment.
• Minor point. Forward-looking: it has not happened yet and may not happen.Plan termination is expected to reduce ongoing pension administration responsibilities and costs.
• Minor pointBarnwell is evaluating strategic investments and acquisitions to deploy its capital and public-company platform.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.All plan liabilities must be satisfied before surplus assets can revert to Barnwell.
• Minor point. Forward-looking: it has not happened yet and may not happen.Administrative and transaction costs and applicable taxes will reduce the surplus available to Barnwell.
• Minor point. Forward-looking: it has not happened yet and may not happen.Preliminary estimates may change materially; proceeds depend on pricing, rates, investment performance, asset values and final benefits.
• Minor point. Forward-looking: it has not happened yet and may not happen.Any participant benefit increase and associated obligation changes and tax reduction require adviser review and Board approval.

Key Figures

Plan assets: Approximately $12.8 million Estimated termination liability: $7.3 million Supplemental plan obligation: Approximately $1.8 million +2 more

Plan assets

Approximately $12.8 million

As of September 30, 2026

Estimated termination liability

$7.3 million

Plan estimate as of September 30, 2026

Supplemental plan obligation

Approximately $1.8 million

Related supplemental executive retirement plan

Estimated excess assets

Approximately $3.7 million

Before costs, taxes, and any participant benefit increase

Anticipated reversion

December 2026

Company anticipation; amount and timing are not assured

Key Terms

defined benefit pension plan, erisa

2 terms

defined benefit pension plan financial

"terminate its qualified defined benefit pension plan"

A defined benefit pension plan is a retirement program that promises participants a specific monthly payment in retirement, usually based on salary and years worked, with the employer responsible for funding and making up any shortfall. Think of it as the company guaranteeing a steady paycheck in retirement while handling the investments and risks. Investors care because shortfalls become long-term liabilities that can require large cash contributions, affect profitability and borrowing costs, and add uncertainty to a company’s financial health.

erisa regulatory

"separate ERISA legal counsel to advise on the termination"

ERISA is a U.S. federal law that sets rules for private employer retirement and benefit plans, requiring plan managers to act in participants’ best interests, provide regular disclosures, and follow basic reporting and funding standards. For investors, ERISA matters because it shapes a company’s pension and benefit obligations, creates potential legal and financial liabilities, and influences how corporate assets tied to employee plans are governed—think of it as rules that keep a company’s employee savings pot transparent and responsibly managed.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, TX / ACCESS Newswire / October 5, 2026 / Barnwell Industries, Inc. (NYSE American:BRN) today announced that it has decided to terminate its qualified defined benefit pension plan and satisfy all benefit obligations. The termination is another step in simplifying Barnwell's balance sheet, reducing legacy liabilities and positioning its capital for future value creation. The net surplus available after the plan termination will bolster the Company's ability to pursue strategic transactions. The Company will satisfy all plan obligations, settle related supplemental executive retirement plan obligations, and pay administrative and transaction costs and applicable excise and other taxes from plan assets.

Barnwell has retained an actuarial and pension consulting firm and separate ERISA legal counsel to advise on the termination and reversion of surplus assets. The Company intends to secure participants' benefits by purchasing annuity contracts. Any surplus remaining after the annuity purchase and satisfaction of other obligations will revert to Barnwell.

As of September 30, 2026, the plan held approximately $12.8 million in assets, compared with an estimated termination liability of $7.3 million. Barnwell also has a related supplemental executive retirement plan obligation of approximately $1.8 million. Plan assets therefore exceed these estimated retirement obligations by approximately $3.7 million, before administrative and transaction costs, applicable excise and other taxes, and any participant benefit increase adopted in connection with the termination.

Any participant benefit increase, its effect on supplemental executive retirement plan obligations, and any associated tax reduction remain subject to review by Barnwell's pension consulting firm and legal counsel and approval by its Board of Directors. These estimates are preliminary and may change materially. The ultimate net cash proceeds and other value will depend on annuity pricing, interest rates, investment performance and plan asset values through settlement, final participant benefits, administrative and transaction costs, and applicable taxes. All plan liabilities must be satisfied before surplus assets can revert to the Company.

Barnwell currently anticipates a reversion in December 2026, but cannot assure its amount or timing or the resulting benefit to shareholders. The expected reversion is expected to add to Barnwell's financial resources, reduce ongoing pension administration responsibilities, and enhance its ability to pursue strategic opportunities while strengthening its balance sheet.

"This is another important step in simplifying Barnwell and increasing our financial flexibility," said Philip Patman, Jr., Chief Financial Officer and a member of Barnwell's Board of Directors. "Our first priority is to secure the benefits promised to plan participants. Once those obligations are satisfied, we expect the remaining surplus, net of taxes and administrative costs, to become available for redeployment. This would free capital historically held in the pension plan, reduce complexity and ongoing costs, and give the Company greater financial flexibility."

Patman continued, "Our goal is to build a stronger, more valuable Barnwell through disciplined capital allocation. We are evaluating strategic investments and acquisitions that put our capital and public-company platform to work, including opportunities that could materially transform Barnwell's scale and earnings profile. We will remain patient and focused on valuation, with balance-sheet strength and long-term per-share value creation guiding our decisions."

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about the pension plan termination, annuity purchases, potential participant benefit increases, surplus reversion, supplemental retirement settlements, tax treatment, the amount and timing of net proceeds and other value, and the use of the net surplus. They also include statements about Barnwell's strategy and strategic repositioning, liquidity, capital allocation, business prospects, commodity prices, oil and gas asset values, potential future distributions and asset sales, the strategic alternatives process, potential merger candidates, possible business combinations or other transactions, and opportunities to generate shareholder returns.

Forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially. These include changes in interest rates, plan asset values and benefit obligations; insurer capacity and annuity pricing; pension termination requirements, tax treatment, and administrative and transaction costs; commodity price volatility; the timing and outcome of asset sales; the Company's ability to complete strategic transactions; the availability and terms of merger or business combination opportunities; general economic and market conditions; and other risks described in Barnwell's SEC filings, including its most recent Annual Report on Form 10-K and subsequent filings.

Barnwell undertakes no obligation to update any forward-looking statements except as required by law.

COMPANY: Barnwell Industries, Inc.
24 Greenway Plaza, Suite 1800Q
Houston, Texas 77046
Telephone: (713) 730-7026
Website: www.brninc.com

CONTACT: Philip Patman, Jr.
Chief Financial Officer and Treasurer
Phone: (713) 730-7026
Email: barnwellinfo@brninc.com

SOURCE: Barnwell Industries

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much pension surplus could revert to Barnwell Industries?

Plan assets exceed estimated retirement obligations by approximately $3.7 million, before administrative and transaction costs, applicable excise and other taxes, and any participant benefit increase. This is not a final net proceeds estimate. All plan liabilities must be satisfied before remaining surplus can revert to Barnwell.

When does Barnwell Industries expect its pension surplus reversion?

Barnwell anticipates a reversion in December 2026, but its amount, timing and resulting benefit to shareholders are not assured. The company intends to purchase annuity contracts to secure participants' benefits before remaining surplus reverts.

What approvals are needed for a Barnwell pension participant benefit increase?

Any participant benefit increase remains subject to review by Barnwell's pension consulting firm and legal counsel and approval by its Board of Directors. Its effect on supplemental executive retirement obligations and any associated tax reduction are also subject to that review and approval.