Barnwell Industries, Inc. Reports First Quarter 2025 Financial Results, Highlights Decrease in Revenue and Net Loss

Barnwell Industries reports Q1 2025 revenue of $4.48 million and a net loss of $1.92 million.

Quiver AI Summary

Barnwell Industries, Inc. reported its first-quarter financial results for the period ending December 31, 2024, revealing a revenue of $4.48 million and a net loss of $1.92 million, compared to a revenue of $6.16 million and a loss of $664,000 in the same quarter of the previous year. The company noted declines in production and prices for oil and gas products, driven by natural well aging and temporary shut-ins for maintenance. A non-cash impairment of $613,000 and a foreign currency loss of $351,000 further impacted results. While general and administrative costs decreased, the company initiated a sale of a drilling rig and is considering strategic options for its water resources segment. CEO Craig D. Hopkins indicated potential challenges ahead, including concerns over a possible proxy contest, but expressed optimism about the company’s growth opportunities and cost-reduction strategies moving forward.

Potential Positives

• The Company remains debt free, ending the quarter with $642,000 in working capital, including $1,957,000 in cash and cash equivalents.
• General and administrative expenses decreased by 9%, indicating improved cost management.
• The successful performance of the new Canadian well indicates potential for future production increases and revenue growth.
• The agreement to sell a drilling rig for $585,000 could provide additional liquidity and allows for a planned refocus of business operations.

Potential Negatives

• Significant decrease in revenue: The company's revenue dropped from $6,155,000 in Q1 2023 to $4,477,000 in Q1 2024, representing a decline of 27.3% year-over-year.
• Substantial increase in net loss: The net loss increased from $664,000 (or $0.07 per share) in Q1 2023 to $1,917,000 (or $0.19 per share) in Q1 2024, indicating worsening financial performance.
• Production decreases in oil, gas, and natural gas liquids: The company reported significant declines in production—oil by 17%, gas by 21%, and natural gas liquids by 17%—which raises concerns about operational effectiveness and asset management.

FAQ

What were Barnwell Industries' financial results for Q1 2025?

Barnwell Industries reported $4,477,000 in revenue and a net loss of $1,917,000 for the first quarter of 2025.

How did oil and gas prices change in Q1 2025?

In Q1 2025, oil prices decreased by 2%, gas prices by 40%, and natural gas liquids prices by 8% compared to the previous year.

What factors contributed to Barnwell's net loss in Q1 2025?

The net loss was due to a $613,000 non-cash impairment and a $351,000 foreign currency loss related to the weakening Canadian dollar.

What is the plan for Barnwell's contract drilling segment?

Barnwell plans to sell a drilling rig and may consider strategic alternatives, including a potential wind-down of its contract drilling operations.

What is the outlook for Barnwell Industries moving forward?

The CEO highlighted plans to refocus on core operations, seek cost reductions, and explore growth opportunities after a potential proxy contest.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$BRN Insider Trading Activity

$BRN insiders have traded $BRN stock on the open market 5 times in the past 6 months. Of those trades, 5 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $BRN stock by insiders over the last 6 months:

• CRAIG DOUGLAS HOPKINS (Chief Executive Officer) has made 3 purchases buying 20,000 shares for an estimated $40,849 and 0 sales.
• JOSHUA HOROWITZ has made 2 purchases buying 17,096 shares for an estimated $38,927 and 0 sales.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$BRN Hedge Fund Activity

We have seen 5 institutional investors add shares of $BRN stock to their portfolio, and 6 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• CITADEL ADVISORS LLC removed 29,407 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $66,459
• UBS GROUP AG removed 25,508 shares (-44.7%) from their portfolio in Q3 2024, for an estimated $57,648
• SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 17,504 shares (-31.6%) from their portfolio in Q3 2024, for an estimated $39,559
• DIMENSIONAL FUND ADVISORS LP removed 7,529 shares (-11.9%) from their portfolio in Q4 2024, for an estimated $11,368
• RENAISSANCE TECHNOLOGIES LLC removed 5,159 shares (-1.5%) from their portfolio in Q4 2024, for an estimated $7,790
• LPL FINANCIAL LLC added 4,000 shares (+39.2%) to their portfolio in Q4 2024, for an estimated $6,040
• BRIDGEWAY CAPITAL MANAGEMENT, LLC added 2,546 shares (+1.4%) to their portfolio in Q3 2024, for an estimated $5,753

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

HONOLULU, Feb. 14, 2025 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) today reported financial results for its first quarter ended December 31, 2024. For the quarter, the Company had revenue of $4,477,000 and a net loss of $1,917,000 or $0.19 per share. In the three months ended December 31, 2023, the Company reported quarterly revenue of $6,155,000 and a net loss of $664,000 or $0.07 per share. The Company remains debt free and ended the quarter with $642,000 in working capital, including $1,957,000 in cash and cash equivalents.

Oil and Gas Prices and Production

During the three months ended December 31, 2024, oil, gas and natural gas liquids prices decreased 2%, 40% and 8%, respectively, compared to the prior year’s quarter. Additionally, oil, gas and natural gas liquids production decreased 17%, 21% and 17%, respectively, for the three months ended December 31, 2024, compared to the prior year’s quarter. The decreases in production are primarily the result of natural declines as the wells age. The production decreases were also partially due to properties sold and certain wells that were temporarily shut-in for workovers. The Company's latest Canadian well drilled, which is 100%-owned and operated, started producing in mid-September 2024 and contributed approximately 107 net barrels of equivalent per day for a total of approximately 10,000 net barrels of equivalent during the three months ended December 31, 2024.

Non-Cash Impairment, foreign currency loss

The net loss for the three months ended December 31, 2024, was due in part to a $613,000 non-cash impairment of our US oil and natural gas properties during the current quarter. This impairment is largely due to the changing rolling average first-day-of-the-month prices used in the ceiling test calculation. Additionally, the loss was due in part to a $351,000 foreign currency loss recorded in the current year period as compared to a $126,000 gain in the prior year period due to the weakening of the Canadian dollar against the U.S. dollar.

Reduction in General and Administrative Expenses

General and administrative expenses decreased $123,000, 9%, for the three months ended December 31, 2024, primarily due to a decrease in professional fees in the current year period as compared to the prior year period.

Contract Drilling Segment

Our contract drilling segment entered into an agreement during the quarter to sell a drilling rig and related ancillary equipment for proceeds of $585,000, which will close on the sale in the second quarter ending March 31, 2025. The Company received payment of the purchase price in the quarter ended December 31, 2024.

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, stated, “A potential proxy contest in the near term could harm the company’s liquidity and hinder investment and growth opportunities. This is particularly concerning, as we have valuable oil and gas assets with significant potential. Our new well is performing as anticipated, and we are well-positioned to drill two additional wells from the same pad once sufficient capital is secured. The planned wind-down of our contract drilling business will help refocus our efforts and reduce fixed costs in the coming quarters. We are also actively seeking ways to further reduce costs and enhance profitability. With a streamlined cost structure, Barnwell will be positioned to invest more aggressively in operations and deliver the growth our shareholders deserve.

“Regarding the potential proxy contest and board operations, I have found all current board members to be collaborative and constructive in supporting my efforts to improve Barnwell’s financial performance. Given the forgoing, I am surprised by the prospect of a contested election.”

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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.