Barnwell Industries, Inc. Reports Results for its Third Quarter Ended June 30, 2024
Rhea-AI Summary
Barnwell Industries (NYSE American: BRN) reported financial results for Q3 ending June 30, 2024. The company posted revenue of $5.53 million and a net loss of $1.25 million or $0.12 per share, compared to Q3 2023's revenue of $5.68 million and a net loss of $717,000 or $0.07 per share.
Despite no new drilling or acquisitions, production remained steady and operating costs dropped by 26% to $2.23 million. The Twining drilling program commenced in July 2024, with completion expected by early September. The company ended the quarter debt-free with $3.29 million in working capital and $4.39 million in cash.
A non-cash impairment of $599,000 affected the net loss, along with a $61,000 foreign currency loss. The Texas and Oklahoma assets performed well, although Texas faced low gas prices. Strategic options for Water Resources are being considered, including potential sales or liquidation.
Positive
- Revenue for Q3 2024: $5.53 million.
- Operating costs decreased by 26% to $2.23 million.
- Company remains debt-free with $3.29 million in working capital and $4.39 million in cash.
Negative
- Net loss for Q3 2024: $1.25 million or $0.12 per share.
- Non-cash impairment of $599,000.
- Adverse impact from low gas prices in Texas.
- Foreign currency loss of $61,000.
News Market Reaction
On the day this news was published, BRN gained 2.47%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Twining Drilling Program is Underway While Optimization Investments
Maintain Production and Reduce Operating Costs
HONOLULU, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) today reported financial results for its third fiscal quarter ended June 30, 2024. For the quarter, the Company had revenue of
Continuing Optimization Program is Showing Positive Results
Corporate oil and gas production for the current quarter has remained level to the quarter a year ago without any new drilling activity or acquisitions. Production operating costs declined by
Twining Drilling Program is Underway
In July 2024, the Company commenced drilling one
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, but production declines are moderating.
Non-Cash Impairment
The net loss (GAAP) for the three months ended June 30, 2024, was primarily due to a
Contract Drilling Segment
As previously reported, the Company continues to investigate the 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, “We continue to be pleased with the operating performance of our oil and gas assets. The impairment related to pricing does not alter our enthusiasm for the long-term potential of Twining. We are excited to bring our new Twining development well online to further improve results. We continue to work to simplify Barnwell’s businesses and reduce the corresponding administrative costs. This should free up cash for additional drilling in Twining and acquisition opportunities to increase our corporate scale and further dilute fixed costs.”
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, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Revenues | $ | 5,527,000 | $ | 5,675,000 | $ | 17,456,000 | $ | 18,425,000 | |||||||||||
| Net loss attributable to Barnwell Industries, Inc. | $ | (1,246,000 | ) | $ | (717,000 | ) | $ | (3,682,000 | ) | $ | (865,000 | ) | |||||||
| Net loss per | |||||||||||||||||||
| share – basic and diluted | $ | (0.12 | ) | $ | (0.07 | ) | $ | (0.37 | ) | $ | (0.09 | ) | |||||||
| Weighted-average shares and equivalent shares outstanding: | |||||||||||||||||||
| Basic and diluted | 10,028,090 | 9,975,044 | 10,014,609 | 9,962,806 | |||||||||||||||
| CONTACT: | Craig D. Hopkins Chief Executive Officer and President Phone: (403) 531-1560 Email: info@bocl.ca |
This press release was published by a CLEAR® Verified individual.
FAQ
What were Barnwell Industries' financial results for Q3 2024?
How did Barnwell Industries' Q3 2024 performance compare to Q3 2023?
What is the status of Barnwell Industries' Twining drilling program?
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What are Barnwell Industries' plans for its Water Resources segment?
