Barnwell Industries, Inc. Reports Results for its Fourth Quarter and Year Ended September 30, 2024
Rhea-AI Summary
Barnwell Industries (NYSE American: BRN) reported financial results for Q4 and FY2024 ended September 30. Key highlights include:
Revenue was $4.27M in Q4 with a net loss of $1.88M ($0.19/share), while full-year revenue reached $21.72M with a net loss of $5.57M ($0.56/share). The company remains debt-free with $4.51M in cash and $1.07M in working capital.
Natural gas and natural gas liquids production increased by 6% and 23% respectively, though revenues decreased due to lower prices. Oil production remained flat. Operating costs declined by $585,000 (6%) to $9.85M. A new Twining development well began production in September 2024, averaging 107 barrels per day. The company recorded non-cash impairments of $2.89M for the year due to declining prices.
Positive
- Natural gas and natural gas liquids production increased 6% and 23% respectively
- Operating costs reduced by $585,000 (6%) to $9.85M
- New Twining well producing 107 barrels per day
- General and administrative expenses decreased by $1.36M (20%)
- Company remains debt-free with $4.51M cash position
Negative
- Q4 net loss of $1.88M ($0.19 per share)
- Full-year net loss of $5.57M ($0.56 per share)
- Natural gas revenues declined due to lower prices
- Non-cash impairment charges of $2.89M for the year
- Texas cash flows adversely affected by low gas prices
News Market Reaction
On the day this news was published, BRN declined 4.88%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Success of Twining Drilling Program Continues While Optimization
Projects Maintain Production Levels and Reduce Operating Costs
HONOLULU, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) today reported financial results for its fourth quarter and year ended September 30, 2024. The Company had revenue of
Continuing Optimization Program is Showing Positive Results
For the year ended September 30, 2024, production of natural gas and natural gas liquids increased by
Production operating costs declined by
Twining Drilling Program
During the year ended September 30, 2024, the Company drilled one gross
US Oil and Gas Assets
The Company’s oil and gas assets in Texas and Oklahoma continue to perform well. The Texas cash flows have been adversely affected by the low realized gas prices in the area in 2024, but the commissioning of the Matterhorn Express Pipeline increases egress from the area and is expected to improve pricing.
Non-Cash Impairment
During the three months and year ended September 30, 2024, the Company incurred a non-cash impairment of our oil and natural gas properties of
Reduction in General and Administrative Expenses
General and administrative expenses decreased
Contract Drilling Segment
In the coming months, the Company will move forward with 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 and liquidation of equipment.
Summary and Outlook
Craig D. Hopkins, CEO, commented, “Twining continues to be the engine for our future growth. We were able to hold production steady for most of 2024 without drilling, and we are now pleased that our new development well is online and producing as expected. We continue to work to simplify Barnwell’s other businesses and reduce the corresponding administrative costs to improve our returns and increase our cash available for investment.”
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.
The following table summarizes Barnwell’s net production for the last two fiscal years, based on sales of natural gas, oil and natural gas liquids, from all wells in which Barnwell has or had an interest.
| Year ended September 30, | |||
| 2024 | 2023 | ||
| Annual net production: | |||
| Natural gas (Mcf) | 1,344,000 | 1,263,000 | |
| Oil (Bbls) | 203,000 | 204,000 | |
| Natural gas liquids (Bbls) | 64,000 | 52,000 | |
| Total (Boe) | 491,000 | 467,000 | |
Mcf - one thousand cubic feet of natural gas
Bbls - stock tank barrels of oil equivalent to 42 U.S. gallons
Boe - barrel of oil equivalent at the rate of 6 Mcf per Bbl of oil or natural gas liquid
| COMPARATIVE OPERATING RESULTS | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Year ended | Three months ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Revenues | $ | 21,724,000 | $ | 25,269,000 | $ | 4,268,000 | $ | 6,844,000 | ||||||||||
| Net loss attributable to Barnwell Industries, Inc. | $ | (5,565,000 | ) | $ | (961,000 | ) | $ | (1,883,000 | ) | $ | (96,000 | ) | ||||||
| Net loss per share – basic and diluted | $ | (0.56 | ) | $ | (0.10 | ) | $ | (0.19 | ) | $ | ( 0.01) | |||||||
| Weighted-average shares and equivalent shares outstanding: | ||||||||||||||||||
| Basic and diluted | 10,017,997 | 9,969,856 | 10,028,090 | 9,990,778 | ||||||||||||||
| CONTACT: | Craig D. Hopkins Chief Executive Officer and President Phone: (403) 531-1560 Email: info@bocl.ca |
FAQ
What were Barnwell Industries (BRN) financial results for Q4 2024?
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