Barnwell Industries, Inc. Reports Results for Its Second Quarter Ended March 31, 2026
Rhea-AI Summary
Barnwell Industries (NYSE American: BRN) reported Q2 2026 revenue of $2.54 million and a consolidated net loss of $1.12 million, improving from the prior quarter’s $1.41 million loss. The company stayed debt free with $4.02 million in cash, cut cash G&A about 8–10% sequentially, improved oil and gas operating results to a $87,000 profit, completed its headquarters move to Houston, expanded its at-the-market share sales capacity, and continued strategic reviews including a potential sale of its Canadian oil and gas business and Hawaiian real estate interests.
Positive
- Net loss from continuing operations reduced about 21% quarter-over-quarter
- Cash general and administrative expenses down roughly 8–10% sequentially
- Oil and gas operating results improved to positive $87,000 from a loss
- Ended quarter debt free with $4.02 million cash and $2.15 million working capital
- Raised $2.30 million gross via at-the-market equity sales to date
- Headquarters relocation to Houston expected to further lower operating costs
Negative
- Company still reported a consolidated net loss of $1.12 million
- Quarterly revenue slipped to $2.54 million from $2.63 million sequentially
- Recorded a $58,000 foreign currency loss versus a prior $47,000 gain
- Issued 1,810,496 new shares, creating equity dilution for existing shareholders
- Planned Hawaiian Increment II real estate sales remain subject to buyer election
News Market Reaction – BRN
In the May 21 session, BRN declined 2.65%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 23 | Hawaii cash distribution | Positive | -2.5% | Announced ~$290,000 cash distribution from Hawaii resort partnerships. |
| Mar 19 | Oil leverage, review | Positive | +4.4% | Highlighted leverage to higher oil prices and ongoing Canadian asset review. |
| Mar 11 | Strategic advisor hire | Positive | +8.9% | Appointed Sean Wallace to bolster M&A and capital markets capabilities. |
| Mar 04 | Production update | Positive | +2.6% | Reported reliable Canadian winter output of 86,667 BOEs (~950 BOE/day). |
| Feb 23 | Q1 earnings | Neutral | +3.0% | Q1 results with $2.746M revenue and $1.412M loss from continuing ops. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent operational/strategic updates have often seen modestly positive price reactions, with one divergence on a positive real estate cash distribution.
Over the past few months, Barnwell has emphasized its dual energy and Hawaii real estate profile. Q1 results on Feb 23, 2026 showed revenue of $2,746,000 and a net loss but highlighted a debt-free balance sheet. Subsequent updates in early March underscored reliable Canadian production (~950 BOE/day) and a formal strategic review of those assets. The March cash distribution of about $290,000 from Hawaii partnerships further showcased non-energy value. Today’s quarter continues that theme of cost control, balance sheet strength and ongoing strategic review.
Key Terms
at the market offerings financial
net operating loss carryforwards financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Sequential Quarter-on-Quarter Results Improve as Company Lowers Costs, Strengthens Balance Sheet and Advances Strategic Review
HOUSTON, TX / ACCESS Newswire / May 21, 2026 / Barnwell Industries, Inc. (NYSE American:BRN) today reported financial results for its second quarter ended March 31, 2026.
Barnwell continued to improve its operating and cost structure during the second quarter as the Company benefited from lower administrative expenses, improved oil and gas operating results, and the completion of its corporate transition from Honolulu, Hawai'i to a lower-cost Houston based platform.
For the quarter ended March 31, 2026, Barnwell reported revenue of
Management believes sequential quarter-on-quarter comparisons provide the most meaningful framework for evaluating recent performance given the Company's previously disclosed divestitures of its U.S. and select Canadian oil and gas assets, which meaningfully reduced the asset base relative to the prior-year, as well as the Company's ongoing transition towards a leaner and more efficient operating structure.
Efficiencies, Cost Reduction Initiatives, and Overall Operational Results Improvements
During the quarter, Barnwell continued to execute initiatives focused on streamlining operations, reducing overhead, and improving long-term operating leverage. Salaries, wages and bonuses declined
Compared to the quarter ended December 31, 2025, Barnwell reduced its net loss from continuing operations by approximately
Oil and Natural Gas Operating Results
Oil and natural gas operating results increased by
Foreign Currency Gain
Net loss from continuing operations for the three months ended March 31, 2026 included a
Completed Transition from Honolulu to Houston Headquarters
As previously reported, during the quarter, Barnwell completed the relocation of its corporate headquarters from Honolulu to Houston. The Company believes that this transition has already contributed meaningfully to lower compensation and administrative costs, despite only a portion of the current quarter reflecting the benefits of the reduced cost structure. Barnwell's Calgary, Alberta office remains an important operational hub supporting the Company's Canadian operations, including its Twining oil and gas asset, and ensuring continuity through the presence of key management personnel.
Canadian Oil and Gas Business Sale Process
As previously reported, Barnwell has retained an independent financial advisor to assist in evaluating strategic alternatives with respect to its Canadian oil and gas business, including the potential sale of such assets. As part of this process, the Company has solicited and is evaluating indications of interest from potential counterparties. The Company has not determined whether it will pursue or consummate any transaction. However, management and the Board of the Directors believe that the current commodity price environment and industry backdrop may present an attractive opportunity to maximize shareholder value in this respect. There can be no assurance that this process will result in a transaction or that any such transaction will achieve the benefits management anticipates.
Sale of Hawaiian Real Estate-Increment II
Also as previously reported, in November 2025, Kaupulehu Developments, a Hawaiian partnership, in which Barnwell holds a
At-the-Market Securities Sales Facility
In February 2026, the Company entered into a Sales Agreement (the "Sales Agreement") with Roth Capital Partners, LLC (the "Agent"), under which the Company may, from time to time, sell shares of the Company's common stock in "at the market" offerings through or to the Agent. These offerings have an aggregate offering price of up to
To date, Barnwell has issued 1,810,496 shares of common stock (926,403 in the second quarter) at an average sales price of
Summary and Outlook
Barnwell's immediate priorities include disciplined execution within its core oil and gas operations and completing the assessment of whether to sell the Canadian oil and gas business. At the same time, the Company continues to evaluate strategic alternatives and value-creation opportunities, including possible mergers and acquisitions activities, across a broader set of industries. This review is not limited to the energy sector and reflects the Board's view that Barnwell's experienced, multidisciplinary management team and directors are well positioned to assess and execute accretive opportunities where appropriate. Chief Financial Officer Philip Patman, Jr., together with Sean Wallace, former Chief Financial Officer to AST SpaceMobile and a senior advisor to the Company, continues to lead this process.
Management believes that Barnwell's debt-free balance sheet, growing cash and cash equivalents and positive working capital position, longstanding public company platform, U.S. net operating loss carryforwards, legacy operations in Hawai'i, and high-quality Canadian oil and gas assets together provide a flexible and durable foundation from which to pursue these efforts.
Mr. Patman stated, "Barnwell today is a significantly leaner, more flexible, and better capitalized company than it was a year ago. We have materially reduced our cost structure, strengthened the balance sheet, and maintained substantial strategic optionality at a time when energy markets and broader corporate transaction opportunities may become increasingly attractive.
Our focus is straightforward: allocate capital rationally, maximize the value of our existing asset base, and pursue opportunities that can generate meaningful long-term per share value creation for shareholders. We believe Barnwell's debt-free balance sheet, public company platform, tax assets, and operational infrastructure provide a strong foundation from which to execute this strategy."
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 its 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.
Key Business Metrics and Non-GAAP Financial Measures
In addition to the GAAP financial measures set forth in this press release, the Company has included certain financial measures that have not been prepared in accordance with generally accepted accounting principles ("GAAP") and constitute "non-GAAP financial measures" as defined by the Securities and Exchange Commission.
The Company defines cash general and administrative expenses as general and administrative expenses excluding stock‑based compensation expense and other non-cash items. Management believes that cash general and administrative expenses provides useful supplemental information to investors by facilitating comparisons of the Company's core operating cost structure, excluding non-cash expenses. Cash general and administrative expenses should not be considered in isolation or as a substitute for general and administrative expenses prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures used by other companies.
Reconciliation of GAAP to Non-GAAP Financial Measure
Three months ended | ||||||||
March 31, 2026 | December 31, 2025 | |||||||
General and administrative expenses | $ | 1,521,000 | $ | 1,616,000 | ||||
Less: | ||||||||
Share-based compensation | 128,000 | 94,000 | ||||||
Other non-cash items | 1,000 | 3,000 | ||||||
Cash general and administrative expenses | $ | 1,392,000 | $ | 1,519,000 | ||||
COMPARATIVE OPERATING RESULTS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended March 31, | Three months ended March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenues | $ | 2,535,000 | $ | 3,569,000 | $ | 5,281,000 | $ | 7,503,000 | ||||||||
Net loss from continuing operations attributable to Barnwell Industries, Inc. | $ | (1,150,000 | ) | $ | (1,538,000 | ) | $ | (2,576,000 | ) | $ | (3,136,000 | ) | ||||
Net loss from discontinued operations | - | 331,000 | - | 12,000 | ||||||||||||
Net loss attributable to Barnwell Industries, Inc. | $ | (1,150,000 | ) | $ | (1,207,000 | ) | $ | (2,576,000 | ) | $ | (3,124,000 | ) | ||||
Basic and diluted net loss per share: | ||||||||||||||||
Net loss from continuing operations attributable to Barnwell Industries, Inc. | $ | (0.09 | ) | $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.31 | ) | ||||
Net loss from discontinued operations | - | 0.03 | - | - | ||||||||||||
Net loss attributable to Barnwell Industries, Inc. | $ | (0.09 | ) | $ | (0.12 | ) | $ | (0.22 | ) | $ | (0.31 | ) | ||||
Weighted-average number of common shares outstanding: | ||||||||||||||||
Basic and diluted | 12,672,012 | 10,053,534 | 11,875,997 | 10,050,319 | ||||||||||||
COMPANY: | Barnwell Industries, Inc. | |
CONTACT: | Philip Patman, Jr. |
SOURCE: Barnwell Industries
View the original press release on ACCESS Newswire