Core Viewpoint - Barnwell Industries, Inc. has adopted a limited-duration shareholder rights plan to protect the interests of the company and all shareholders, particularly in response to the significant ownership position of the Sherwood Group, which holds approximately 30% of the company's outstanding common stock [1][2][5] Group 1: Rights Plan Adoption - The Rights Plan aims to prevent any entity or group from gaining control over Barnwell through a "creeping" acquisition, which the Special Committee believes would not be in the best interest of shareholders [4][6] - The Board adopted the Rights Plan after attempts to engage with the Sherwood Group were unsuccessful, despite the group's claims of bringing fresh ideas to the company [5][8] - The Rights Plan is designed to allow shareholders to realize the long-term value of their investment and ensure fair treatment in the event of a takeover [6][10] Group 2: Special Committee and Engagement - A Special Committee was established to review corporate governance matters and recommended the adoption of the Rights Plan [3][4] - The Special Committee is open to engaging with the Sherwood Group and other shareholders to develop constructive ideas for the company's future [7][8] - The Sherwood Group's potential control could lead to significant changes in the company's core business strategy, which the Special Committee views with concern [7] Group 3: Rights Plan Mechanics - Under the Rights Plan, Barnwell will issue one right for each common share outstanding as of February 7, 2025, which will become exercisable if a person acquires 20% or more of the outstanding common stock [9][10] - Shareholders with beneficial ownership of 20% or more prior to the announcement are grandfathered but cannot acquire additional shares representing 0.25% or more without triggering the Rights Plan [10] - The Rights Plan is effective immediately and will expire in one year unless extended with shareholder approval [10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) ...

| --- | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Exhibit 99.1 \nP R E S S | | | BARNWELL INDUSTRIES, INC. | R E L E A S E 1100 Alakea Street, Suite 500 Honolulu, Hawaii 96813 Telephone (808) 531-8400 ...

Success of Twining Drilling Program Continues While OptimizationProjects Maintain Production Levels and Reduce Operating Costs HONOLULU, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE:BRN) today reported financial results for its fourth quarter and year ended September 30, 2024. The Company had revenue of $4,268,000 and a net loss of $1,883,000 or $0.19 per share for the fourth quarter and had revenue of $21,724,000 and a net loss of $5,565,000 or $0.56 per share for the full year. The Co ...

| --- | --- | --- | |---------------------------------------------------------------------------------------------------------|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Exhibit 99.1 \nP R E S S | | BARNWELL INDUSTRIES, INC. | | R E L E A S E 1100 Alakea Street, Suite 500 Honolulu, Hawaii 96813 Telephone (808) 531-8400 Fax (808) 531-7181 Website: www ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-5103 BARNWELL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 72-0496921 (State or other jurisdiction of incorporation or organization) (I.R.S. ...

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 $5,527,000 and a net loss of $1,246,000 or $0.12 per share. In the three months ended June 30, 2023, the Company reported quarterly revenue of $5,675,000 and a net loss of $717,00 ...

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) [Registrant Information](index=1&type=section&id=Registrant%20Information) Barnwell Industries, Inc. filed this Quarterly Report on Form 10-Q as a non-accelerated, smaller reporting company with 10,028,090 shares outstanding - Filing Type: **Quarterly Report on Form 10-Q** for the period ended March 31, 2024[40](index=40&type=chunk) - Filer Status: **Non-accelerated filer** and **smaller reporting company**[42](index=42&type=chunk)[57](index=57&type=chunk) Common Stock Outstanding | As of Date | Shares Outstanding | | :--------- | :----------------- | | May 13, 2024 | 10,028,090 | [PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Barnwell's unaudited condensed consolidated financial statements for periods ended March 31, 2024 and 2023 - The financial statements are **unaudited** and prepared per SEC rules, condensing or omitting certain annual GAAP disclosures[71](index=71&type=chunk) - Management believes all necessary adjustments were made to fairly present financial position, results of operations, comprehensive loss, equity, and cash flows[95](index=95&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$35.42 million** to **$32.78 million**, driven by changes in cash, property, and equity Key Balance Sheet Data | Metric | March 31, 2024 ($) | September 30, 2023 ($) | | :--------------------------- | :----------------- | :--------------------- | | Cash and cash equivalents | 3,685,000 | 2,830,000 | | Total current assets | 9,646,000 | 9,085,000 | | Proved oil and natural gas properties, net | 82,118,000 | 80,851,000 | | Drilling rigs and other property and equipment | 3,752,000 | 7,223,000 | | Total property and equipment, net | 18,408,000 | 21,811,000 | | Total assets | 32,782,000 | 35,421,000 | | Total current liabilities | 6,314,000 | 6,598,000 | | Total liabilities | 16,384,000 | 16,664,000 | | Total stockholders' equity | 16,384,000 | 18,744,000 | | Total equity | 16,398,000 | 18,757,000 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net loss attributable to Barnwell increased to **$1.772 million** (3 months) and **$2.436 million** (6 months) due to impairment and DDA Key Operating Results | Metric | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :---------------------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Total Revenues | 5,774,000 | 5,239,000 | 11,929,000 | 12,750,000 | | Total Costs and Expenses | 8,295,000 | 6,477,000 | 15,046,000 | 13,238,000 | | Impairment of assets | 1,677,000 | — | 1,677,000 | — | | Equity in income of affiliates | 1,071,000 | — | 1,071,000 | 538,000 | | Net loss attributable to Barnwell Industries, Inc. | (1,772,000) | (1,237,000) | (2,436,000) | (148,000) | | Basic and diluted net loss per common share | (0.18) | (0.12) | (0.24) | (0.01) | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Total comprehensive loss attributable to Barnwell increased to **$1.816 million** (3 months) and **$2.471 million** (6 months) due to net loss and FX adjustments Key Comprehensive Loss Data | Metric | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :---------------------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Net loss | (1,550,000) | (1,235,000) | (2,212,000) | (26,000) | | Foreign currency translation adjustments, net of taxes of $0 | (22,000) | — | 8,000 | 2,000 | | Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (22,000) | (20,000) | (43,000) | (40,000) | | Total other comprehensive loss | (44,000) | (20,000) | (35,000) | (38,000) | | Total comprehensive loss | (1,594,000) | (1,255,000) | (2,247,000) | (64,000) | | Comprehensive loss attributable to Barnwell Industries, Inc. | (1,816,000) | (1,257,000) | (2,471,000) | (186,000) | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity decreased from **$18.757 million** to **$16.398 million**, primarily due to net loss and non-controlling interest distributions Key Equity Changes (Six months ended March 31, 2024) | Metric | Amount ($) | | :------------------------------------------------------------------------ | :--------- | | Balance at September 30, 2023 | 18,757,000 | | Net (loss) earnings | (2,436,000)| | Foreign currency translation adjustments, net of taxes of $0 | 8,000 | | Distributions to noncontrolling interests | (223,000) | | Share-based compensation | 111,000 | | Issuance of common stock for restricted stock unites vested | — | | Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (43,000) | | Balance at March 31, 2024 | 16,398,000 | Key Equity Changes (Three months ended March 31, 2023) | Metric | Amount ($) | | :------------------------------------------------------------------------ | :--------- | | Balance at December 31, 2022 | 20,210,000 | | Net (loss) earnings | (1,237,000)| | Distributions to noncontrolling interests | (16,000) | | Share-based compensation | 75,000 | | Dividends declared, $0.015 per share | (150,000) | | Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (20,000) | | Balance at March 31, 2023 | 18,864,000 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$2.262 million** (6 months), while investing and financing cash outflows decreased due to reduced capex and dividends Key Cash Flow Data | Metric | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :----------------------------------------- | :---------------------------------- | :---------------------------------- | | Net cash provided by operating activities | 2,262,000 | 734,000 | | Net cash used in investing activities | (1,186,000) | (7,370,000) |\ | Net cash used in financing activities | (223,000) | (423,000) | | Net increase (decrease) in cash and cash equivalents | 855,000 | (7,025,000) | | Cash and cash equivalents at end of period | 3,685,000 | 5,779,000 | - The **$1.528 million** increase in operating cash flows was due to higher distributions from Kukio Resort Land Development Partnerships and lower general and administrative costs, partially offset by lower operating results in the contract drilling segment[221](index=221&type=chunk) - The **$6.184 million** decrease in cash used in investing activities was primarily due to a **$6.163 million** reduction in cash paid for oil and natural gas properties investments[241](index=241&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details Barnwell's accounting policies, financial instruments, investments, and segment information, providing context to the financial statements - The condensed consolidated financial statements include Barnwell Industries, Inc. and all majority-owned subsidiaries, including Kaupulehu Developments (**77.6%**), KD Kona 2013 LLLP (**75%**), and Teton Barnwell Fund I, LLC (VIE where Company is primary beneficiary)[94](index=94&type=chunk) - Management makes significant estimates and assumptions affecting reported amounts, including valuation of deferred tax assets, asset retirement obligations, contract drilling costs, and oil and natural gas reserves[96](index=96&type=chunk)[101](index=101&type=chunk) [1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines Barnwell's accounting policies, including consolidation, estimates, receivables, derivatives, and the CECL model adoption - Barnwell consolidates majority-owned subsidiaries and undivided interests in oil and natural gas joint ventures. Equity method is used for significant non-controlling interests and VIEs where the Company is not the primary beneficiary[70](index=70&type=chunk)[94](index=94&type=chunk) - The Company adopted ASU 2016-13 (CECL model) effective October 1, 2023, which did not impact its consolidated financial statements[31](index=31&type=chunk) - Barnwell uses physical forward commodity contracts to mitigate market price risk, generally applying the normal purchases and normal sales (NPNS) exception and not hedge accounting[30](index=30&type=chunk) [2. LOSS PER COMMON SHARE](index=11&type=section&id=2.%20LOSS%20PER%20COMMON%20SHARE) Basic and diluted loss per share were **($0.18)** (3 months) and **($0.24)** (6 months), with anti-dilutive securities excluded Loss Per Common Share | Metric | Three months ended March 31, 2024 | Six months ended March 31, 2024 | Three months ended March 31, 2023 | Six months ended March 31, 2023 | | :---------------------------------------------- | :-------------------------------- | :------------------------------ | :-------------------------------- | :------------------------------ | | Net Loss (Numerator) | $(1,772,000) | $(2,436,000) | $(1,237,000) | $(148,000) | | Shares (Denominator) | 10,019,172 | 10,007,905 | 9,956,687 | 9,956,687 | | Per-Share Amount (Basic and Diluted) | $(0.18) | $(0.24) | $(0.12) | $(0.01) | - Options to purchase **465,000 shares** and **76,336 restricted stock units** were excluded from diluted EPS for the current periods due to their anti-dilutive effect[34](index=34&type=chunk) [3. INVESTMENTS](index=12&type=section&id=3.%20INVESTMENTS) Barnwell holds equity interests in Kukio Resort Land Development Partnerships, which saw earnings from Increment I lot sales; Lot 4C has limited potential - Barnwell holds indirect non-controlling ownership interests of **19.6%** in KD Kona and KKM, and **10.8%** in KD II, within the Kukio Resort Land Development Partnerships[37](index=37&type=chunk)[38](index=38&type=chunk) Kukio Resort Land Development Partnerships Financial Summary | Metric | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :----------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Revenue | 10,153,000 | 1,284,000 | 12,039,000 | 4,996,000 | | Gross profit | 7,329,000 | 738,000 | 8,146,000 | 3,160,000 | | Net earnings (loss)| 6,658,000 | (82,000) | 7,012,000 | 1,225,000 | - During the three months ended March 31, 2024, the last two remaining single-family lots of the **80 lots** developed within Increment I were sold[39](index=39&type=chunk) - Barnwell received cash distributions of **$1.071 million** (net **$0.953 million**) from the Kukio Resort Land Development Partnerships during the three and six months ended March 31, 2024, compared to nil and **$0.538 million** (net **$0.478 million**) in the prior year periods[9](index=9&type=chunk)[11](index=11&type=chunk) - Equity in income of affiliates was **$1.071 million** for both the three and six months ended March 31, 2024, up from nil and **$0.538 million** respectively in the prior year[12](index=12&type=chunk) - Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, prior to Barnwell's affiliation with KD I and KD II[158](index=158&type=chunk) Increment I Revenues from KD I | Metric | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Revenues - sale of interest in leasehold land | 500,000 | — | 500,000 | 265,000 | | Fees - included in general and administrative expenses | (61,000) | — | (61,000) | (32,000) | | Sale of interest in leasehold land, net of fees paid | 439,000 | — | 439,000 | 233,000 | - Increment II is not yet under development, and no definitive development plans have been made by KD II[1](index=1&type=chunk)[17](index=17&type=chunk) - Kaupulehu Developments holds an interest in approximately **1,000 acres** of vacant leasehold land (Lot 4C) with no development potential without a development agreement and zoning reclassification; the lease terminates in December 2025[18](index=18&type=chunk) [4. CONSOLIDATED VARIABLE INTEREST ENTITY](index=14&type=section&id=4.%20CONSOLIDATED%20VARIABLE%20INTEREST%20ENTITY) Barnwell consolidates Teton Barnwell Fund I, LLC, a VIE for oil and gas investments, with BOK Drilling as the primary beneficiary - BOK Drilling, LLC, a wholly-owned subsidiary, indirectly invests in oil and natural gas exploration and development in Oklahoma through Teton Barnwell Fund I, LLC[19](index=19&type=chunk) - Barnwell is the primary beneficiary of Teton Barnwell, a VIE, because BOK is responsible for **100%** of capital contributions and has the power to steer decisions impacting economic performance[20](index=20&type=chunk)[22](index=22&type=chunk) Teton Barnwell Fund I, LLC Consolidated Assets and Liabilities | Metric | March 31, 2024 ($) | September 30, 2023 ($) | | :---------------------------------------------- | :----------------- | :--------------------- | | Cash and cash equivalents | 19,000 | 83,000 | | Accounts and other receivables | 213,000 | 175,000 | | Proved oil and natural gas properties, net | 501,000 | 544,000 | | Total assets | 733,000 | 802,000 | | Accounts payable | 10,000 | 10,000 | | Accrued operating and other expenses | 19,000 | 15,000 | | Total liabilities | 29,000 | 25,000 | [5. ASSETS HELD FOR SALE](index=15&type=section&id=5.%20ASSETS%20HELD%20FOR%20SALE) Barnwell began marketing a portion of its contract drilling segment's property and equipment, with no impairment recognized - A portion of the contract drilling segment's property and equipment, largely fully depreciated, was classified as held for sale[2](index=2&type=chunk) - No impairment was recorded for the assets held for sale, as their fair value less estimated selling costs exceeded their carrying value[2](index=2&type=chunk) [6. OIL AND NATURAL GAS PROPERTIES](index=15&type=section&id=6.%20OIL%20AND%20NATURAL%20GAS%20PROPERTIES) Barnwell acquired Permian Basin interests and incurred a **$1.677 million** non-cash ceiling test impairment for Canadian oil and gas properties - Barnwell Texas acquired a **22.3%** non-operated working interest in Permian Basin oil and natural gas leasehold acreage for **$0.806 million** in December 2022[3](index=3&type=chunk) - A non-cash ceiling test impairment of **$1.677 million** was incurred for Canadian oil and natural gas properties during the three and six months ended March 31, 2024, compared to no impairment in the prior year[4](index=4&type=chunk)[5](index=5&type=chunk) - Future impairment write-downs are possible if oil and natural gas prices decline sufficiently from the 12-month historical rolling average prices used in the ceiling test[6](index=6&type=chunk) [7. RETIREMENT PLANS](index=16&type=section&id=7.%20RETIREMENT%20PLANS) Barnwell's frozen pension and SERP plans reported net periodic benefit (income) costs of **$(0.089 million)** (3 months) and **$(0.178 million)** (6 months) - Barnwell sponsors a noncontributory defined benefit pension plan and a Supplemental Executive Retirement Plan (SERP), with benefit accruals frozen and plans closed to new participants since December 31, 2019[7](index=7&type=chunk) Net Periodic Benefit (Income) Cost | Metric | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Interest cost | 102,000 | 101,000 | 205,000 | 203,000 | | Expected return on plan assets | (191,000) | (166,000) | (383,000) | (333,000) | | Amortization of net actuarial gain | — | — | — | — | | Net periodic benefit (income) cost | (89,000) | (65,000) | (178,000) | (130,000) | - No contributions are expected for the Pension Plan in fiscal 2024, and expected SERP payments are not material[25](index=25&type=chunk) [8. INCOME TAXES](index=17&type=section&id=8.%20INCOME%20TAXES) Barnwell's loss before income taxes was **$(1.672 million)** (3 months) and **$(2.270 million)** (6 months), with tax provisions of **$0.100 million** and **$0.166 million** Loss Before Income Taxes by Region | Region | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :------------ | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | United States | 538,000 | (1,275,000) | (151,000) | (1,257,000) | | Canada | (2,210,000) | 35,000 | (2,119,000) | 1,185,000 | | Total | (1,672,000) | (1,240,000) | (2,270,000) | (72,000) | Income Tax Provision (Benefit) | Type | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Current | 47,000 | 42,000 | 115,000 | 133,000 | | Deferred | 53,000 | (45,000) | 51,000 | (57,000) | | Total | 100,000 | (3,000) | 166,000 | 76,000 | - Consolidated taxes do not bear a customary relationship to pretax results due to separate taxation in Canada and the U.S., and limited benefit from consolidated or unitary losses[102](index=102&type=chunk) [9. REVENUE FROM CONTRACTS WITH CUSTOMERS](index=18&type=section&id=9.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Total revenues before interest income increased to **$5.756 million** (3 months) but decreased to **$11.896 million** (6 months), with most revenue recognized at a point in time Disaggregated Revenue (Three months ended March 31, 2024) | Revenue Stream | Amount ($) | | :----------------------- | :--------- | | Oil | 2,985,000 | | Natural gas | 678,000 | | Natural gas liquids | 481,000 | | Drilling and pump | 1,070,000 | | Contingent residual payments | 500,000 | | Other | 42,000 | | Total revenues before interest income | 5,756,000 | Disaggregated Revenue (Six months ended March 31, 2024) | Revenue Stream | Amount ($) | | :----------------------- | :--------- | | Oil | 6,877,000 | | Natural gas | 1,390,000 | | Natural gas liquids | 1,007,000 | | Drilling and pump | 2,063,000 | | Contingent residual payments | 500,000 | | Other | 59,000 | | Total revenues before interest income | 11,896,000 | - For the three months ended March 31, 2024, **$4.686 million (81%)** of total revenues were from goods transferred at a point in time, and **$1.070 million (19%)** from services transferred over time[79](index=79&type=chunk) - For the six months ended March 31, 2024, **$9.833 million (83%)** of total revenues were from goods transferred at a point in time, and **$2.063 million (17%)** from services transferred over time[83](index=83&type=chunk) Contract Balances | Metric | March 31, 2024 ($) | September 30, 2023 ($) | September 30, 2022 ($) | | :--------------------------------------- | :----------------- | :--------------------- | :--------------------- | | Accounts receivables from contracts with customers | 3,046,000 | 2,931,000 | 4,038,000 | | Contract assets | 714,000 | 958,000 | 580,000 | | Contract liabilities | 320,000 | 377,000 | 1,087,000 | - Revenue recognized from contract liabilities at the beginning of the period was **$0.347 million** for the six months ended March 31, 2024, down from **$0.969 million** in the prior year[86](index=86&type=chunk) - Unamortized preconstruction costs related to uncompleted contracts were **$0.324 million** at March 31, 2024, down from **$0.504 million** at September 30, 2023[88](index=88&type=chunk) - The remaining performance obligation (backlog) for contract drilling jobs with durations greater than one year was **$0.056 million** at March 31, 2024, expected to be recognized in the next twelve months[126](index=126&type=chunk) [10. SEGMENT INFORMATION](index=22&type=section&id=10.%20SEGMENT%20INFORMATION) Barnwell operates in oil and gas, land investment, and contract drilling segments, with oil and gas and contract drilling reporting operating losses for the three months - Barnwell operates in three segments: acquiring, developing, producing and selling oil and natural gas; investing in land interests in Hawaii; and drilling wells and installing/repairing water pumping systems in Hawaii[89](index=89&type=chunk) Segment Operating Profit (Loss) (before G&A) | Segment | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :------------------ | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Oil and natural gas | (1,205,000) | 701,000 | (324,000) | 2,687,000 | | Contract drilling | (367,000) | 57,000 | (595,000) | 105,000 | | Land investment | 500,000 | — | 500,000 | 265,000 | | Other | 42,000 | 29,000 | 58,000 | 71,000 | | Gain on sale of assets | — | — | — | 551,000 | | Total operating (loss) profit | (1,030,000) | 787,000 | (361,000) | 3,679,000 | Segment Depletion, Depreciation, and Amortization | Segment | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :------------------ | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Oil and natural gas | 1,342,000 | 718,000 | 2,800,000 | 1,514,000 | | Contract drilling | 50,000 | 43,000 | 102,000 | 86,000 | | Other | — | — | 1,000 | 1,000 | | Total DDA | 1,392,000 | 761,000 | 2,903,000 | 1,601,000 | [11. ACCUMULATED OTHER COMPREHENSIVE INCOME](index=23&type=section&id=11.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME) Accumulated other comprehensive income was **$2.069 million**, reflecting foreign currency translation adjustments and amortization of net actuarial gain Changes in Accumulated Other Comprehensive Income | Metric | Three months ended March 31, 2024 ($) | Three months ended March 31, 2023 ($) | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :---------------------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Beginning accumulated foreign currency translation | 250,000 | 224,000 | 220,000 | 222,000 | | Net current period other comprehensive (loss) income (FX) | (22,000) | — | 8,000 | 2,000 | | Ending accumulated foreign currency translation | 228,000 | 224,000 | 228,000 | 224,000 | | Beginning accumulated retirement plans benefit income | 1,863,000 | 1,052,000 | 1,884,000 | 1,072,000 | | Amortization of net actuarial gain | (22,000) | (20,000) | (43,000) | (40,000) | | Net current period other comprehensive loss (Retirement) | (22,000) | (20,000) | (43,000) | (40,000) | | Accumulated other comprehensive income, net of taxes | 2,069,000 | 1,256,000 | 2,069,000 | 1,256,000 | [12. FAIR VALUE MEASUREMENTS](index=23&type=section&id=12.%20FAIR%20VALUE%20MEASUREMENTS) Barnwell estimates asset retirement obligations' fair value using discounted cash flows and Level 3 assumptions like commodity prices and reserve projections - Fair value of asset retirement obligations is estimated using a discounted cash flow model and market assumptions, primarily Level 3 assumptions[116](index=116&type=chunk)[131](index=131&type=chunk) - Assumptions include future commodity prices, estimated quantities of reserves, timing and amount of future development, operating and asset retirement costs, production rates, recovery rates, and risk-adjusted discount rates[116](index=116&type=chunk)[132](index=132&type=chunk) [13. STOCKHOLDERS' EQUITY](index=24&type=section&id=13.%20STOCKHOLDERS'%20EQUITY) Barnwell granted **76,336 restricted stock units** to directors, incurring **$0.031 million** (3 months) and **$0.061 million** (6 months) in compensation expense, with no dividends paid - **76,336 restricted stock units** were granted to independent directors in November 2023, vesting over three years[118](index=118&type=chunk) Restricted Stock Unit Activity (October 1, 2023 - March 31, 2024) | Metric | Shares | Weighted-Average Grant Date Fair Value ($) | | :----------------------------------- | :----- | :----------------------------------------- | | Nonvested at October 1, 2023 | — | — | | Granted | 76,336 | 2.62 | | Nonvested at March 31, 2024 | 76,336 | 2.62 | - Share-based compensation expense for restricted stock units was **$0.031 million** for the three months and **$0.061 million** for the six months ended March 31, 2024[119](index=119&type=chunk) - No cash dividends were declared or paid during the six months ended March 31, 2024[136](index=136&type=chunk) [14. CONTINGENCIES](index=25&type=section&id=14.%20CONTINGENCIES) Barnwell faces routine disputes and regulatory compliance, with no material adverse litigation expected; a drilling issue was resolved without further accruals - Management believes no current claims or litigation will have a material adverse effect on Barnwell's results, financial position, or liquidity[121](index=121&type=chunk) - A contract drilling well plumbness issue was addressed with centralizers, armored cabling, and a successful pump installation and removal test, with no accrual for further costs as of March 31, 2024[138](index=138&type=chunk) [15. INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS](index=25&type=section&id=15.%20INFORMATION%20RELATING%20TO%20THE%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash paid for income taxes was **$0.071 million** (6 months), with oil and gas exploration accruals decreasing by **$0.569 million** and asset retirement obligations increasing by **$0.179 million** Supplemental Cash Flow Information | Metric | Six months ended March 31, 2024 ($) | Six months ended March 31, 2023 ($) | | :----------------- | :---------------------------------- | :---------------------------------- | | Income taxes paid | 71,000 | 100,000 | - Capital expenditure accruals related to oil and natural gas exploration and development decreased **$0.569 million** for the six months ended March 31, 2024[156](index=156&type=chunk) - Capital expenditure accruals related to oil and natural gas asset retirement obligations increased **$0.179 million** for the six months ended March 31, 2024[156](index=156&type=chunk) [16. RELATED PARTY TRANSACTIONS](index=26&type=section&id=16.%20RELATED%20PARTY%20TRANSACTIONS) Kaupulehu Developments receives payments from KD I and KD II lot sales, stemming from transactions predating Barnwell's affiliation - Kaupulehu Developments receives payments from KD I and KD II lot sales, stemming from transactions predating Barnwell's affiliation with these entities[158](index=158&type=chunk) - Barnwell received **$0.500 million** in percentage of sales payments from KD I for the sale of the last two single-family lots in Increment I during the six months ended March 31, 2024[142](index=142&type=chunk) [17. SUBSEQUENT EVENTS](index=26&type=section&id=17.%20SUBSEQUENT%20EVENTS) Barnwell sold Canadian natural gas and oil properties for **$0.448 million** post-March 31, 2024, with results to be recognized in the June 30, 2024 quarter - Barnwell sold its interests in certain Canadian natural gas and oil properties for an adjusted sales price of **$0.448 million**, effective May 1, 2024[159](index=159&type=chunk) - The financial results of this transaction will be recognized in the quarter ending June 30, 2024[159](index=159&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=27&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Barnwell's financial performance, liquidity, and capital resources, highlighting operational drivers, accounting policies, and future outlook - The discussion includes forward-looking statements subject to risks and uncertainties detailed in the 2023 Annual Report[144](index=144&type=chunk) [Cautionary Statement Relevant to Forward-Looking Information](index=27&type=section&id=Cautionary%20Statement%20Relevant%20to%20Forward-Looking%20Information) This cautionary statement highlights that forward-looking statements involve risks and uncertainties, and actual results may differ materially - Forward-looking statements are based on current expectations and involve risks, uncertainties, and assumptions that could cause actual results to differ materially[144](index=144&type=chunk) - Investors should not place undue reliance on these statements, as they speak only as of the filing date, and Barnwell disclaims any obligation to update them[144](index=144&type=chunk) [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Barnwell's critical accounting policies cover oil and gas depletion, contract drilling estimates, and income tax calculations, with no significant changes this period - Critical accounting policies and estimates relate to the full-cost ceiling calculation and depletion of oil and natural gas properties, estimation of contract drilling segment revenues and expenses, and income tax calculations[145](index=145&type=chunk) - No significant changes to these critical accounting policies and estimates occurred during the three and six months ended March 31, 2024[145](index=145&type=chunk) [Impact of Recently Issued Accounting Standards on Future Filings](index=27&type=section&id=Impact%20of%20Recently%20Issued%20Accounting%20Standards%20on%20Future%20Filings) Barnwell is evaluating ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes), both expanding disclosure requirements for future filings - ASU No. 2023-07, 'Segment Reporting,' expands disclosure requirements for reportable segments, effective for annual periods beginning after December 15, 2023[146](index=146&type=chunk) - ASU No. 2023-09, 'Income Taxes,' requires incremental income tax information and expanded disclosures of income taxes paid, effective for annual periods beginning after December 15, 2024[162](index=162&type=chunk)[163](index=163&type=chunk) - The Company is currently evaluating the impact of both ASUs on its consolidated financial statements[146](index=146&type=chunk)[163](index=163&type=chunk) [Overview](index=28&type=section&id=Overview) Barnwell operates in oil and gas, land investment (Hawaii), and contract drilling (Hawaii), with land investment including Kukio Resort lot sales and undeveloped leasehold - Barnwell's business segments are: oil and natural gas, land investment, and contract drilling[148](index=148&type=chunk) - The oil and natural gas segment involves acquisition, development, production, and sales in Canada and the U.S., including non-operated investments in Oklahoma and Texas[149](index=149&type=chunk) - The land investment segment includes rights to percentage of sales payments from KD I (Increment I, now fully sold) and KD II (Increment II, not yet developed), indirect ownership in Kukio Resort Land Development Partnerships, and undeveloped leasehold land in Kaupulehu Lot 4C[150](index=150&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - The contract drilling segment, operated by Water Resources International, Inc., drills wells and installs/repairs water pumping systems in Hawaii, with results highly dependent on contract awards[169](index=169&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Barnwell's net loss increased to **$1.772 million** (3 months) and **$2.436 million** (6 months), driven by oil and gas impairment and lower drilling results Net Loss Attributable to Barnwell | Period | Net Loss Attributable to Barnwell ($) | | :------------------------------------ | :------------------------------------ | | Three months ended March 31, 2024 | (1,772,000) | | Three months ended March 31, 2023 | (1,237,000) | | Six months ended March 31, 2024 | (2,436,000) | | Six months ended March 31, 2023 | (148,000) | - Key factors affecting results for the three months ended March 31, 2024, include a **$1.906 million** decrease in oil and natural gas operating results (due to **$1.677 million** impairment), a **$1.071 million** increase in equity in income from affiliates, a **$0.500 million** increase in land investment operating results (due to two lot sales), and a **$0.424 million** decrease in contract drilling operating results[170](index=170&type=chunk)[194](index=194&type=chunk) - Key factors affecting results for the six months ended March 31, 2024, include a **$3.011 million** decrease in oil and natural gas operating results (due to **$1.677 million** impairment and increased depletion), a **$0.700 million** decrease in contract drilling operating results, a **$0.533 million** increase in equity in income from affiliates, and a **$0.235 million** increase in land investment operating results[170](index=170&type=chunk)[195](index=195&type=chunk) [General](index=31&type=section&id=General) Barnwell's U.S. and Canadian operations expose it to foreign currency fluctuations, resulting in a **$0.022 million** loss (3 months) and **$0.008 million** income (6 months) from translation adjustments - Barnwell is subject to foreign currency translation and transaction gains and losses due to fluctuations between the Canadian and U.S. dollars[197](index=197&type=chunk) - Other comprehensive loss due to foreign currency translation adjustments was **$0.022 million** for the three months ended March 31, 2024 (a **$0.022 million** change from prior year nil), and income was **$0.008 million** for the six months (a **$0.006 million** change from prior year **$0.002 million**)[173](index=173&type=chunk) [Oil and Natural Gas](index=31&type=section&id=Oil%20and%20Natural%20Gas) Oil and natural gas segment reported operating losses of **$1.205 million** (3 months) and **$0.324 million** (6 months), driven by impairment and depletion, despite higher production Average Price Per Unit | Commodity | Three months ended March 31, 2024 | Three months ended March 31, 2023 | Change ($) | Change (%) | | :----------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Natural Gas (Mcf) | $1.91 | $2.61 | $(0.70) | (27%) | | Oil (Bbls) | $60.62 | $64.61 | $(3.99) | (6%) | | Natural gas liquids (Bbls) | $30.06 | $35.13 | $(5.07) | (14%) | | Commodity | Six months ended March 31, 2024 | Six months ended March 31, 2023 | Change ($) | Change (%) | | :----------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Natural Gas (Mcf) | $1.87 | $3.54 | $(1.67) | (47%) | | Oil (Bbls) | $64.09 | $68.68 | $(4.59) | (7%) | | Natural gas liquids (Bbls) | $29.60 | $40.09 | $(10.49) | (26%) | Net Production Volumes | Commodity | Three months ended March 31, 2024 | Three months ended March 31, 2023 | Increase (Decrease) Units | Increase (Decrease) % | | :----------------------- | :-------------------------------- | :-------------------------------- | :------------------------ | :-------------------- | | Natural Gas (Mcf) | 334,000 | 227,000 | 107,000 | 47% | | Oil (Bbls) | 50,000 | 43,000 | 7,000 | 16% | | Natural gas liquids (Bbls) | 16,000 | 8,000 | 8,000 | 100% | | Commodity | Six months ended March 31, 2024 | Six months ended March 31, 2023 | Increase (Decrease) Units | Increase (Decrease) % | | :----------------------- | :-------------------------------- | :-------------------------------- | :------------------------ | :-------------------- | | Natural Gas (Mcf) | 713,000 | 527,000 | 186,000 | 35% | | Oil (Bbls) | 108,000 | 91,000 | 17,000 | 19% | | Natural gas liquids (Bbls) | 34,000 | 18,000 | 16,000 | 89% | - Oil and natural gas revenues increased by **$0.458 million (12%)** and **$0.362 million (4%)** for the three and six months ended March 31, 2024, respectively, primarily due to increased production from new wells in Twining and Texas[176](index=176&type=chunk) - Oil and natural gas operating expenses increased by **$0.063 million (3%)** and **$0.410 million (9%)** for the three and six months ended March 31, 2024, respectively, due to costs associated with new production[177](index=177&type=chunk) - Depletion expense increased by **$0.624 million (87%)** and **$1.286 million (85%)** for the three and six months ended March 31, 2024, respectively, due to higher depletion rates for Canadian properties, increased production, and depletion from Texas production[177](index=177&type=chunk) - Barnwell amended Canadian natural gas and oil sales contracts to fixed index prices for a portion of volumes from April 2024 to October 2024 and January 2024 to June 2024, respectively, applying the normal purchase and normal sales exception[202](index=202&type=chunk) [Land Investment Segment](index=34&type=section&id=Land%20Investment%20Segment) Barnwell received **$0.500 million** from KD I lot sales in Increment I, with future payments from undeveloped Increment II remaining uncertain - Barnwell received **$0.500 million** in percentage of sales payments from KD I for the sale of the last two single-family lots in Increment I during the three and six months ended March 31, 2024[178](index=178&type=chunk)[205](index=205&type=chunk) - No definitive development plans have been made for Increment II, making future payments uncertain[179](index=179&type=chunk) [Contract Drilling Segment](index=34&type=section&id=Contract%20Drilling%20Segment) Contract drilling reported operating losses of **$0.367 million** (3 months) and **$0.595 million** (6 months) due to drilling issues, increased costs, and a cancelled **$2.4 million** contract; Barnwell is exploring strategic options - Contract drilling revenues decreased by **$0.431 million (29%)** for the three months and **$1.386 million (40%)** for the six months ended March 31, 2024[180](index=180&type=chunk) - Operating losses for the contract drilling segment were **$0.367 million** for the three months and **$0.595 million** for the six months ended March 31, 2024, a decrease in operating results of **$0.424 million** and **$0.700 million** respectively[180](index=180&type=chunk) - Decreases were due to less progress on jobs from drilling difficulties, increased estimated costs, and a decrease in revenues from materials deliveries and installations[207](index=207&type=chunk) - A significant well drilling contract with an estimated backlog of **$2.4 million** was cancelled by mutual agreement in January 2024[183](index=183&type=chunk) - Barnwell is investigating strategies for Water Resources' future, including a potential sale or winding down operations after completing existing contracts (estimated by December 2024)[209](index=209&type=chunk) [General and Administrative Expenses](index=35&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by **$0.669 million (33%)** (3 months) and **$1.514 million (35%)** (6 months), primarily due to lower professional fees and stockholder costs - General and administrative expenses decreased by **$0.669 million (33%)** for the three months ended March 31, 2024, due to decreases in professional fees (**$0.153 million**) and stockholders costs (**$0.535 million**)[184](index=184&type=chunk) - General and administrative expenses decreased by **$1.514 million (35%)** for the six months ended March 31, 2024, due to decreases in share-based compensation (**$0.080 million**), professional fees (**$0.847 million**), and stockholders costs (**$0.545 million**)[211](index=211&type=chunk) [Depletion, Depreciation, and Amortization](index=35&type=section&id=Depletion,%20Depreciation,%20and%20Amortization) Depletion, depreciation, and amortization increased by **$0.631 million (83%)** (3 months) and **$1.302 million (81%)** (6 months), driven by higher Canadian depletion rates and new production - Depletion, depreciation, and amortization increased by **$0.631 million (83%)** for the three months and **$1.302 million (81%)** for the six months ended March 31, 2024[212](index=212&type=chunk) - The increases were primarily due to higher depletion rates for Canadian properties, new production from those properties, and depletion attributable to production in Texas[212](index=212&type=chunk) [Impairment of Assets](index=35&type=section&id=Impairment%20of%20Assets) Barnwell incurred a **$1.677 million** non-cash ceiling test impairment for Canadian oil and gas properties, with future impairments possible if prices decline - A non-cash ceiling test impairment of **$1.677 million** was incurred for Canadian oil and natural gas properties during the three and six months ended March 31, 2024[213](index=213&type=chunk) - No ceiling test impairment was recorded during the three and six months ended March 31, 2023[213](index=213&type=chunk) - Future impairment write-downs are more likely if oil and natural gas prices decline sufficiently from the 12-month historical rolling average prices used in the ceiling test[234](index=234&type=chunk) [Foreign Currency Loss (Gain)](index=36&type=section&id=Foreign%20Currency%20Loss%20(Gain)) Barnwell reported foreign currency losses of **$0.128 million** (3 months) and **$0.002 million** (6 months) due to exchange rate fluctuations on intercompany loans - Foreign currency loss was **$0.128 million** for the three months and **$0.002 million** for the six months ended March 31, 2024[187](index=187&type=chunk) - This compares to foreign currency gains of **$0.002 million** and **$0.080 million** for the three and six months ended March 31, 2023, respectively[187](index=187&type=chunk) - The changes are due to the effects of foreign exchange rate changes on intercompany loans and advances, which are included in net earnings as they are not considered long-term[187](index=187&type=chunk) [Gain on Sale of Assets](index=36&type=section&id=Gain%20on%20Sale%20of%20Assets) Barnwell recognized a **$0.551 million** gain from the sale of a drilling rig in the prior year, with no similar gain in the current period - A **$0.551 million** gain was recognized during the six months ended March 31, 2023, from the sale of a fully depreciated contract drilling segment drilling rig[215](index=215&type=chunk) - No gain on sale of assets was recorded in the current period[196](index=196&type=chunk) [Equity in Income of Affiliates](index=36&type=section&id=Equity%20in%20Income%20of%20Affiliates) Equity in income of affiliates was **$1.071 million** (3 and 6 months), significantly higher due to Kukio Resort Land Development Partnerships' Increment I lot sales - Equity in income of affiliates was **$1.071 million** for the three and six months ended March 31, 2024[236](index=236&type=chunk) - This compares to nil and **$0.538 million** for the three and six months ended March 31, 2023, respectively[236](index=236&type=chunk) - The increase is primarily due to the Kukio Resort Land Development Partnerships' sale of the last two lots in Increment I during the current year period[236](index=236&type=chunk) [Income Taxes](index=37&type=section&id=Income%20Taxes) Barnwell's effective consolidated income tax rate was **(6%)** (3 months) and **(7%)** (6 months), reflecting separate taxation and limited loss benefits - Barnwell's effective consolidated income tax rate was **(6%)** for the three months and **(7%)** for the six months ended March 31, 2024[218](index=218&type=chunk) - The non-customary relationship of consolidated taxes to pretax results is primarily due to separate taxation in Canada and the U.S., and the lack of future benefit from most deferred tax assets[191](index=191&type=chunk) [Net Earnings Attributable to Non-controlling Interests](index=37&type=section&id=Net%20Earnings%20Attributable%20to%20Non-controlling%20Interests) Net earnings attributable to non-controlling interests significantly increased to **$0.222 million** (3 months) and **$0.224 million** (6 months), driven by higher equity income and sales revenues - Net earnings attributable to non-controlling interests were **$0.222 million** for the three months and **$0.224 million** for the six months ended March 31, 2024[219](index=219&type=chunk) - This represents a **$0.220 million (11,000%)** increase for the three months and a **$0.102 million (84%)** increase for the six months compared to the prior year[219](index=219&type=chunk) - The changes are primarily due to increases in equity in income of affiliates and percentage of sales revenues in the current year periods[219](index=219&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Barnwell had **$3.332 million** in working capital, relying on cash and oil/gas operations for liquidity, with future funding needs for capex beyond 12 months - Barnwell had **$3.332 million** in working capital at March 31, 2024[239](index=239&type=chunk) - Primary sources of liquidity are cash on hand and cash flow from oil and natural gas operations, with minimal expected cash flow from the land investment segment[239](index=239&type=chunk) - Future cash inflows from the land investment segment are uncertain due to the completion of Increment I sales and no definitive development plans for Increment II[240](index=240&type=chunk) - Management estimates sufficient cash on hand, contract drilling asset sales, and oil and natural gas cash flows for going concern for the next twelve months, but external debt or equity may be needed beyond that period for capital expenditures[240](index=240&type=chunk) [Cash Flows](index=38&type=section&id=Cash%20Flows) Operating cash flows increased to **$2.262 million** (6 months), while investing and financing cash outflows decreased due to reduced capex and lower dividends - Cash flows provided by operations totaled **$2.262 million** for the six months ended March 31, 2024, a **$1.528 million** increase from the prior year[221](index=221&type=chunk) - Cash flows used in investing activities totaled **$1.186 million** for the six months ended March 31, 2024, a **$6.184 million** decrease from the prior year, primarily due to reduced oil and natural gas capital expenditures[241](index=241&type=chunk) - Cash flows used in financing activities totaled **$0.223 million** for the six months ended March 31, 2024, a **$0.200 million** decrease from the prior year, due to a **$0.299 million** decrease in dividend payments, partially offset by increased distributions to non-controlling interests[222](index=222&type=chunk) [Cash Dividends](index=38&type=section&id=Cash%20Dividends) No cash dividends were declared or paid during the six months ended March 31, 2024, unlike the prior year's **$0.015 per share** dividend - No dividends were declared or paid during the six months ended March 31, 2024[223](index=223&type=chunk) - A cash dividend of **$0.015 per share** was declared in February 2023 and paid in March 2023[224](index=224&type=chunk) [Oil and Natural Gas Capital Expenditures](index=39&type=section&id=Oil%20and%20Natural%20Gas%20Capital%20Expenditures) Oil and natural gas capital expenditures totaled **$1.055 million** (6 months), a significant decrease from **$7.680 million** in the prior year, with fiscal 2024 estimates between **$4 million** and **$6 million** - Oil and natural gas capital expenditures totaled **$1.055 million** for the six months ended March 31, 2024, primarily for completion and equipping costs in the Twining area, Canada[225](index=225&type=chunk)[244](index=244&type=chunk) - This represents a significant decrease from **$7.680 million** in capital expenditures for the six months ended March 31, 2023, which included drilling three wells in the Twining area[226](index=226&type=chunk)[244](index=244&type=chunk) - Estimated investments in oil and natural gas properties for fiscal 2024 are projected to range from **$4 million** to **$6 million**[246](index=246&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=39&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section assesses the effectiveness of Barnwell's disclosure controls and reports on changes in internal control over financial reporting [Disclosure Controls and Procedures](index=39&type=section&id=Disclosure%20Controls%20and%20Procedures) Barnwell's CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024, ensuring timely and accurate reporting - Barnwell's CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024[247](index=247&type=chunk) - These controls ensure that required information is recorded, processed, summarized, and reported within the time periods specified by the Securities Exchange Act of 1934[247](index=247&type=chunk) [Changes in Internal Control Over Financial Reporting](index=39&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes in Barnwell's internal control over financial reporting occurred during the quarter ended March 31, 2024 - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2024[248](index=248&type=chunk) [PART II - OTHER INFORMATION](index=40&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [ITEM 6. EXHIBITS](index=40&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL taxonomy documents - Exhibits include certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 from the Chief Executive Officer and Chief Financial Officer[230](index=230&type=chunk)[233](index=233&type=chunk)[250](index=250&type=chunk)[254](index=254&type=chunk)[258](index=258&type=chunk) - Various Inline XBRL documents (Instance, Calculation Linkbase, Label Linkbase, Schema, Definition Linkbase, Presentation Linkbase) are also filed as exhibits[230](index=230&type=chunk)[233](index=233&type=chunk)[250](index=250&type=chunk)[254](index=254&type=chunk)[258](index=258&type=chunk) [SIGNATURE](index=41&type=section&id=SIGNATURE) The report is signed by Russell M. Gifford, Executive Vice President, CFO, and Treasurer of Barnwell Industries, Inc. on May 14, 2024 - The report was signed by Russell M. Gifford, Executive Vice President, Chief Financial Officer, and Treasurer, on May 14, 2024[253](index=253&type=chunk) [INDEX TO EXHIBITS](index=42&type=section&id=INDEX%20TO%20EXHIBITS) This section provides a detailed list of all exhibits accompanying the Form 10-Q filing, including certifications and XBRL documents - The index lists certifications (31.1, 31.2, 32) and various Inline XBRL documents (101.INS, 101.CAL, 101.LAB, 101.SCH, 101.DEF, 101.PRE, 104)[233](index=233&type=chunk)[254](index=254&type=chunk)[258](index=258&type=chunk)

HONOLULU, HAWAII, May 14, 2024 -- Barnwell Industries, Inc. (NYSE American: BRN) today reported financial results for its second fiscal quarter ended March 31, 2024. For the quarter, the Company had revenue of $5,774,000 and a net loss of $1,772,000, $0.18 per share. In the three months ended March 31, 2023, the Company reported quarterly revenue of $5,239,000 and a net loss of $1,237,000, $0.12 per share. Oil, gas and natural gas liquids production increased 16%, 47% and 100%, respectively, for the three m ...

Production Increases for All Products Continued Reduction in General and Administrative Expenses HONOLULU, May 14, 2024 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE:BRN) today reported financial results for its second fiscal quarter ended March 31, 2024. For the quarter, the Company had revenue of $5,774,000 and a net loss of $1,772,000, $0.18 per share. In the three months ended March 31, 2023, the Company reported quarterly revenue of $5,239,000 and a net loss of $1,237,000, $0.12 per share. Mr. Cr ...