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Barnwell Industries, Inc. Announces Sale of its Water Drilling Subsidiary for $1,050,000
BRNBarnwell Industries(BRN) GlobeNewswire·2025-03-17 10:00

Core Viewpoint - Barnwell Industries, Inc. has announced the sale of its subsidiary Water Resources International, Inc. for 1,050,000,aimingtostreamlineoperationsandfocusonitsoilandnaturalgasbusiness[1][2].Group1:TransactionDetails−Thesaleproceedswillbeutilizedforgeneralcorporatepurposes,particularlyreinvestmentintheoilandgasoperations[1].−WaterResourcesgeneratedapproximately1,050,000, aiming to streamline operations and focus on its oil and natural gas business [1][2]. Group 1: Transaction Details - The sale proceeds will be utilized for general corporate purposes, particularly reinvestment in the oil and gas operations [1]. - Water Resources generated approximately 3,162,000 in revenue 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 will enable the company to decrease public company costs and transition personnel to other locations, thereby reducing its legacy footprint in Hawaii [2]. Group 3: Financial Implications - The divestiture simplifies Barnwell's equity story, allowing investors to focus on opportunities in the oil and natural gas sector [3]. - The combination of sale proceeds and anticipated savings is expected to enhance Barnwell's financial position, 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 to achieve, aiming to streamline operations and focus on higher return opportunities [4].