Barnwell Industries, Inc. Announces Sale of its Water Drilling Subsidiary for $1,050,000

Core Viewpoint - Barnwell Industries, Inc. has sold its subsidiary Water Resources International, Inc. for $1,050,000, aiming to streamline operations and reinvest in its oil and gas business [1][2][3]. Group 1: Transaction Details - The sale of Water Resources, a specialist in groundwater resource exploration and development, generated proceeds of$1,050,000 [1]. - The divested business had revenues of approximately $3,162,000 for the trailing twelve months ending December 31, 2024 [1]. Group 2: Strategic Rationale - This transaction is part of Barnwell's strategy to simplify its corporate structure and reduce general and administrative expenses [2]. - The sale allows the company to focus on higher return opportunities in its oil and natural gas business [3]. Group 3: Financial Impact - The proceeds from the sale, combined with anticipated savings from streamlining operations, are expected to improve Barnwell's financial position and balance sheet, which currently has no bank debt [3]. Group 4: Management Commentary - The CEO of Barnwell emphasized that the sale was a significant strategic objective that required considerable effort and collaboration from the management team [4].