Meaningful Production Increases Across all Products
Continued Reduction in General and Administrative Expenses
HONOLULU, Feb. 12, 2024 (GLOBE NEWSWIRE) — Barnwell Industries, Inc. (NYSE:BRN) today reported financial results for the first quarter ended December 31, 2023. The Company posted quarterly revenue of $6,155,000 and a net loss of $664,000, or $0.07 per share. In the three months ended December 31, 2022, the Company had quarterly revenue of $7,511,000 and net earnings of $1,089,000, or $0.11 per share.
Mr. Alexander C. Kinzler, Chief Executive Officer of Barnwell, commented, “Our loss for the quarter was the result of a decline in prices of all products; oil, natural gas, and natural gas liquids which decreased 7%, 57%, and 34%, respectively, as compared to the prior year period, together with a decline in land investment results where our equity in income from affiliates declined $538,000. Additionally, in last year’s first quarter, our contract drilling segment recognized a $551,000 gain on the sale of one drilling rig, whereas there was no such gain this quarter.
Oil and Gas Production Increases Offset by Price Declines
“We are pleased to report that our oil, natural gas, and natural gas liquids production increased from the prior year’s quarter by 21%, 26% and 80%, respectively. The increase in production was driven mainly by new production from wells in Texas and from existing Twining wells in Canada. Importantly, through targeted well optimization investments, our Twining wells, which represent the largest portion of our production, enjoyed record quarterly production. General and administrative expenses decreased $845,000, or 38% as compared to the prior year period, primarily due to decreases in professional fees, accrued bonus expense, and share-based compensation.
“To partially protect against further declines in oil and natural gas prices, during the quarter the Company entered into certain sale agreements to fix the price of a portion of its Canadian natural gas sales from April 1, 2024 to October 31, 2024 and to fix the price of a portion of its Canadian oil sales from January 1, 2024 to June 30, 2024. With these agreements, based on the Canadian oil and natural gas production per day during the three months ended December 31, 2023, we anticipate approximately 30% of the Canadian oil and natural gas that the Company sells during those periods will be sold at fixed prices with the remaining 70% of such production sold at spot prices.
Strategic Alternatives for Water Resources
“In December 2023, the Company entered into a stock purchase agreement with a construction company for the sale of a Company subsidiary, Water Resources International, Inc. (“Water Resources” or “WRI”), subject to customary post-closing price adjustments and the purchaser’s completion of due diligence. Subsequently, the stock purchase agreement was terminated by the buyer prior to closing. 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 …
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