Barnwell Industries(US:BRN)2025-12-23 21:17Production and Sales - Barnwell's annual net production for fiscal 2025 was 1,105,000 Mcf of natural gas, 174,000 Bbls of oil, and 56,000 Bbls of natural gas liquids, resulting in a total production of 414,000 Boe[41]. - The average sales price per Mcf of natural gas in fiscal 2025 was $1.27, down from $2.64 in fiscal 2023, while the average price per Bbl of oil decreased to $60.49 from $69.77[41]. - In fiscal 2025, Barnwell amended contracts to fix the sales price for 1,055 gross Mcf per day of natural gas at $1.95 CAD, representing approximately 38% of daily production[56]. Capital Expenditures and Financials - Capital expenditures for fiscal 2025 were $939,000, significantly lower than $4,805,000 in fiscal 2024, primarily focused on equipment and facility upgrades[43][44]. - Barnwell received cash distributions of $1,071,000 from the Kukio Resort Land Development Partnerships, resulting in a net amount of $953,000 after distributing $118,000 to non-controlling interests in fiscal 2024[78]. Wells and Acreage - As of September 30, 2025, Barnwell had interests in 109 gross (62.9 net) producing wells, with 76 gross (58.2 net) being oil wells[49]. - Barnwell's undeveloped acreage as of September 30, 2025, included 22,506 gross acres, with 81% not subject to expiration[52]. - The company did not drill any new wells in fiscal 2025, following the drilling of one well in fiscal 2024[45][47]. Environmental and Regulatory Compliance - Barnwell is subject to extensive environmental laws and regulations, which can be costly to comply with and carry substantial penalties for non-compliance[82]. - Barnwell's cash deposits to the Orphan Well Association for site closure amounted to $975,000, with $462,000 spent on closure activities as of September 30, 2025[67]. Competition and Market Position - Barnwell competes in the oil and natural gas market against major companies and independent operators, highlighting its position as a minor participant in the industry[69]. - The competition in Barnwell's land investment segment is intense, with numerous independent companies and factors such as project location and pricing affecting market dynamics[79]. Land Development - Increment I consisted of 80 single-family lots, all sold between 2006 and 2024, while Increment II encompasses approximately 870 acres, with 420 developable acres entitled for up to 350 homesites[74]. - Kaupulehu Developments is entitled to 15% of the distributions from KD II, with a priority payout of 10% of KDK's cumulative net profits from Increment II sales, capped at $3,000,000[77]. - Barnwell holds a 19.6% interest in KDK, which agreed to sell its interests in Increment II for $2,109,000, subject to due diligence and no certainty of closing[73]. - The last two remaining single-family lots in Increment I were sold in fiscal 2024, marking the completion of sales in that segment[75]. - Barnwell has a 10.8% indirect non-controlling ownership interest in KD II through KDK, which is accounted for using the equity method[76]. - The company has not made definitive development plans for the remaining areas of Increment II, and there is uncertainty regarding future sales from this segment[74]. Employment - As of December 1, 2025, Barnwell employed 18 individuals, with 16 full-time and 2 part-time[81].