Barnwell Industries, Inc. Reports Results for Its Third Quarter Ended June 30, 2026
Rhea-AI Summary
Barnwell Industries (NYSE American: BRN) reported third quarter FY2026 revenue of $3.38 million and a consolidated net loss of $403,000, versus revenue of $2.54 million and a net loss of $1.12 million in the prior quarter. Net loss attributable to shareholders improved to $440,000 ($0.03 per share) from $1.15 million ($0.09 per share). Oil and gas production rose to 82,000 BOE from 75,000 BOE, a 9% increase, supporting stronger operating results.
The company ended the quarter debt free with $4.47 million in cash and cash equivalents and $3.07 million of working capital, and generated positive Adjusted EBITDA of $425,000 versus negative $369,000 in the prior quarter. General and administrative expenses declined to $1.41 million, with cash G&A falling approximately 8% sequentially to $1.28 million. Barnwell entered an agreement to sell its remaining Hawai'i real estate development interests for approximately $1.55 million in cash plus an expected $770,000 pre-closing distribution, and allowed its shareholder rights plan to expire on July 29, 2026.
Positive
- Quarterly revenue increased to $3.38 million from $2.54 million sequentially
- Net loss attributable to shareholders improved to $440,000 from $1.15 million QoQ
- Oil and gas production grew 9% QoQ to 82,000 BOE
- Adjusted EBITDA turned positive to $425,000 from negative $369,000 QoQ
- Company remained debt free with $4.47 million cash and $3.07 million working capital
- Cash G&A expenses declined about 8% QoQ to $1.28 million
- Agreement to sell Hawai'i development interests for about $1.55 million plus expected $770,000 distribution
- Net loss from continuing operations reduced about 64% versus prior quarter
Negative
- Company still reported a quarterly consolidated net loss of $403,000
- Nine‑month FY2026 revenues declined to $8.66 million from $10.70 million year over year
- Nine‑month net loss attributable to the company remained high at $3.02 million
- Oil and natural gas operating expenses increased by $195,000 sequentially
News Explained
The Hawaii transaction is pending, while any Canadian sale or broader M&A remains under evaluation rather than committed.
Barnwell Industries has agreed to sell its remaining Hawai'i development interests for approximately
Although the company describes this as an exit, the disclosure supports a pending agreed sale rather than a completed exit; full departure from the Hawai'i activities would follow closing and the winding up of remaining partnership activities.
Barnwell also continues to evaluate indications of interest for its Canadian oil and gas business, while stating that it has not determined whether to pursue or consummate a transaction.
Separately, the board and management are evaluating potentially transformative mergers, acquisitions and other strategic transactions across industries, but the release describes opportunities under consideration rather than a committed transaction.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 04 | Hawaii asset sale | Positive | -1.0% | Definitive agreement to sell remaining Hawaii development interests |
| Jun 18 | Asset monetization | Positive | -2.0% | Full repayment of seller financing and continued strategic review |
| May 21 | 2Q26 earnings report | Positive | -2.6% | Smaller loss, lower costs, and improved oil and gas operating results |
| Mar 23 | Cash distribution | Positive | -2.5% | Received approximately $290,000 distribution from Hawaii partnership interests |
| Mar 19 | Oil price update | Positive | +4.4% | Highlighted increased revenue potential from stronger oil prices |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
BRN's recent news history showed negative reactions to four of five events, including several positive or strategic updates, while one oil-price update was followed by a positive reaction.
Key Terms
barrels of oil equivalent technical
adjusted ebitda financial
non-gaap financial measures financial
working capital financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Sequential Quarter-on-Quarter Results Improve as Company Increases Production, Lowers Costs, and Strengthens Balance Sheet While Continuing to Evaluate Strategic Transformational Opportunities
HOUSTON, TX / ACCESS Newswire / August 11, 2026 / Barnwell Industries, Inc. (NYSE American:BRN) today reported financial results for its third quarter ended June 30, 2026.
Barnwell continued to improve its operating and cost structure during the third quarter as the Company benefited from lower administrative expenses, improved oil and gas operating results stemming both from increased production and product pricing, and the completion of its corporate transition from Honolulu, Hawai'i to a lower-cost Houston based platform.
For the quarter ended June 30, 2026, Barnwell reported revenue of
The Company also maintained its strong balance sheet, remaining debt free and ending the quarter with
Management believes these sequential results demonstrate tangible progress in repositioning Barnwell around a leaner operating model and more focused asset base. Management also believes that quarter-on-quarter comparisons provide the most meaningful framework for evaluating the Company's recent performance given its previously disclosed divestitures of U.S. and select Canadian oil and gas assets, which materially reduced the Company's asset base relative to the prior-year.
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 March 31, 2026, 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 June 30, 2026 included a
Expiration of Shareholder Rights Plan
The Company's limited-duration shareholder rights plan expired in accordance with its terms on July 29, 2026. The Board elected not to renew the plan, further simplifying the Company's governance structure as it continues to pursue its strategic objectives.
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 continues to evaluate indications of interest from potential counterparties. The Company has not determined whether it will pursue or consummate any transaction.
Exit from Company's Longstanding Real Estate Development Activities in Hawai'i
As previously reported, in July 2026, the Company entered into a definitive agreement to sell its remaining Hawai'i development interests and related project rights for approximately
Summary and Outlook
Barnwell's immediate priorities are centered on disciplined execution and maximizing the value of its existing assets while positioning the Company for its next phase of growth. Within its core oil and gas operations, the Company will continue to pursue opportunities to increase production where attractive returns can be achieved with modest incremental capital. In parallel, Barnwell is completing its assessment of strategic alternatives for its Canadian oil and gas business, including a potential sale.
At the same time, the Board and management are actively evaluating opportunities that could meaningfully enhance Barnwell's scale, earnings profile and long-term value proposition. This includes the consideration of potentially transformative mergers, acquisitions and other strategic transactions across a broad range of industries. Importantly, this mandate is not limited to the energy sector. The Board believes Barnwell's experienced, multidisciplinary management team and directors, together with the Company's financial flexibility and public company platform, provide the ability to identify, evaluate and execute compelling opportunities wherever they may arise.
Management believes Barnwell approaches this next phase from a position of increasing strength. The Company combines a debt-free balance sheet, growing cash and cash equivalents, positive working capital, a longstanding U.S. public company platform, U.S. net operating loss carryforwards and high-quality Canadian oil and gas assets. Collectively, these attributes provide both financial flexibility and strategic optionality as the Company evaluates opportunities capable of creating meaningful long-term shareholder value.
Philip Patman, Jr., Barnwell's Chief Financial Officer and a member of the Company's Board of Directors, stated, "This quarter represents another important step in Barnwell's transformation. We materially reduced our cost structure, entered into an agreement to exit our longstanding Hawai'i real estate development activities, increased oil and gas production, improved operating performance and generated positive Adjusted EBITDA, all while maintaining a debt-free balance sheet. We also allowed our limited-duration shareholder rights plan to expire without renewal.
"These actions have created a leaner, more focused and financially flexible Barnwell and, importantly, position us to look forward rather than backward. We are now actively evaluating opportunities to build upon that foundation, including potentially transformative M&A transactions both within and outside the energy sector. Our objective is not simply to preserve the existing business, but to identify opportunities capable of meaningfully improving Barnwell's scale, earnings potential and long-term value proposition for shareholders.
"We believe the combination of our strengthened financial position, public company platform, tax attributes and existing asset base provides us with meaningful strategic optionality. We intend to be disciplined and selective, but we are prepared to act decisively when we identify an opportunity that we believe can create substantial long-term value for Barnwell shareholders."
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.
Cash general and administrative expenses
The Company defines cash general and administrative expenses as general and administrative expenses excluding share‑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. The following table provides a reconciliation to our interim condensed consolidated financial statements.
Three months ended | ||||||||
June 30, 2026 | March 31, 2026 | |||||||
General and administrative expenses | $ | 1,409,000 | $ | 1,521,000 | ||||
Less: | ||||||||
Share-based compensation | 125,000 | 128,000 | ||||||
Other non-cash items | 4,000 | 1,000 | ||||||
Cash general and administrative expenses | $ | 1,280,000 | $ | 1,392,000 | ||||
Adjusted EBITDA
The Company defines Adjusted EBITDA as net loss attributable to Barnwell Industries, Inc. adjusted for depreciation, depletion and amortization expense, interest expense, income tax provision (benefit), impairment of assets, accretion of asset retirement obligation, net periodic benefit of pension plan, net periodic cost of supplemental executive retirement plan ("SERP"), and share-based compensation expense. Management believes Adjusted EBITDA provides useful supplemental information to investors by facilitating evaluation of the Company's operating performance and comparisons across periods by excluding the effects of financing and tax matters and certain non-cash and other items. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) or other financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures used by other companies. The following table provides a reconciliation to our interim condensed consolidated financial statements.
Three months ended | ||||||||
June 30, 2026 | March 31, 2026 | |||||||
Net loss attributable to Barnwell Industries, Inc. | $ | (440,000 | ) | $ | (1,150,000 | ) | ||
Add back: | ||||||||
Depletion, depreciation, and amortization | 546,000 | 561,000 | ||||||
Interest expense | 1,000 | - | ||||||
Income tax provision (benefit) | 108,000 | 6,000 | ||||||
Impairment of assets | - | - | ||||||
Accretion of asset retirement obligation | 187,000 | 188,000 | ||||||
Net periodic benefit of pension plan | (128,000 | ) | (128,000 | ) | ||||
Net periodic cost of SERP | 26,000 | 26,000 | ||||||
Share-based compensation | 125,000 | 128,000 | ||||||
Adjusted EBITDA | $ | 425,000 | $ | (369,000 | ) | |||
COMPARATIVE OPERATING RESULTS
(Unaudited)
Three months ended June 30, | Three months ended June 30, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenues | $ | 3,379,000 | $ | 3,192,000 | $ | 8,660,000 | $ | 10,695,000 | ||||||||
Net loss from continuing operations attributable to Barnwell Industries, Inc. | $ | (440,000 | ) | $ | (1,550,000 | ) | $ | (3,016,000 | ) | $ | (4,686,000 | ) | ||||
Net loss from discontinued operations | - | - | - | 12,000 | ||||||||||||
Net loss attributable to Barnwell Industries, Inc. | $ | (440,000 | ) | $ | (1,550,000 | ) | $ | (3,016,000 | ) | $ | (4,674,000 | ) | ||||
Basic and diluted net loss per share: | ||||||||||||||||
Net loss from continuing operations attributable to Barnwell Industries, Inc. | $ | (0.03 | ) | $ | (0.15 | ) | $ | (0.24 | ) | $ | (0.47 | ) | ||||
Net loss from discontinued operations | - | - | - | - | ||||||||||||
Net loss attributable to Barnwell Industries, Inc. | $ | (0.03 | ) | $ | (0.15 | ) | $ | (0.24 | ) | $ | (0.47 | ) | ||||
Weighted-average number of common shares outstanding: | ||||||||||||||||
Basic and diluted | 14,313,866 | 10,053,534 | 12,688,620 | 10,051,390 | ||||||||||||
COMPANY: | Barnwell Industries, Inc. |
CONTACT: | Philip Patman, Jr. |
SOURCE: Barnwell Industries
View the original press release on ACCESS Newswire