Barnwell Industries(BRN) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended December 31, 2024, Barnwell reported a net loss of $1,917,000, a decrease of$1,253,000 compared to a net loss of $664,000 for the same period in 2023[98]. - The oil and natural gas segment experienced an operating loss of$116,000 before general and administrative expenses, a decrease of $997,000 from an operating profit of$881,000 in the prior year[103]. - Oil and natural gas segment revenues decreased by $1,233,000 (24$759,000 for the three months ended December 31, 2024, a decrease of $2,134,000 compared to cash flows provided by operating activities of$1,375,000 for the same period in the prior year[125]. Production and Pricing - Average natural gas prices decreased by 40% to $1.82 per Mcf, while oil prices decreased by 2$67.08 per Bbl for the three months ended December 31, 2024[102]. - Net production of natural gas fell by 21% to 298,000 Mcf, oil production decreased by 17% to 48,000 Bbls, and natural gas liquids production also dropped by 17% to 15,000 Bbls compared to the same period in 2023[102]. - The latest Canadian well, which is 100%-owned and operated, started producing in mid-September 2024, contributing approximately 107 net barrels of equivalent per day, totaling around 10,000 net barrels of equivalent during the three months ended December 31, 2024[106]. - The company amended contracts to set a fixed index price for 1,055 gross Mcf per day of Canadian natural gas at $2.55 CAD per Mcf for the period from April 1, 2024, to October 31, 2024, affecting approximately 38$295,000 (11%) for the three months ended December 31, 2024, due to lower production[109]. - Depletion for the oil and natural gas segment decreased by $554,000 (38$613,000 was incurred for U.S. oil and natural gas properties during the three months ended December 31, 2024, with no impairment recorded in the same period of the prior year[118]. - The oil and natural gas segment's operating results were negatively impacted by a $613,000 non-cash ceiling test impairment recorded in the current year[104]. Land Investment and Other Segments - Barnwell's land investment segment includes a deferred profit of approximately$4,500,000 related to the Kukio Resort Land Development Partnerships, which is contingent upon the completion of project obligations[96]. - The company has a 77.6% interest in Kaupulehu Developments and a 75% interest in KD Kona, which are part of its land investment segment[95]. - Barnwell's contract drilling segment, through its subsidiary Water Resources, focuses on drilling water wells and installing water pumping systems in Hawaii[97]. - The contract drilling segment generated a $201,000 operating loss, an improvement of$27,000 compared to a $228,000 operating loss during the same period in the prior year[111]. Future Investments - The company estimates that investments in oil and natural gas properties for fiscal 2025 will range from$1,500,000 to $3,000,000, subject to changes based on cash flows and market conditions[129].