Barnwell Industries, Inc. Reports Results for its Second Quarter Ended March 31, 2024

Core Insights - Barnwell Industries, Inc. reported a revenue of $5,774,000 for the second fiscal quarter ended March 31, 2024, with a net loss of $1,772,000, compared to a revenue of $5,239,000 and a net loss of $1,237,000 in the same quarter of the previous year [2][11]. Financial Performance - Revenue for the quarter increased to $5,774,000 from $5,239,000 year-over-year, representing a growth of approximately 10.2% [11]. - The net loss increased to $1,772,000, or $0.18 per share, compared to a net loss of $1,237,000, or $0.12 per share, in the prior year [2][11]. - For the six months ended March 31, 2024, total revenue was $11,929,000, down from $12,750,000 in the same period of the previous year [11]. Production and Operations - Oil, gas, and natural gas liquids production increased by 16%, 47%, and 100%, respectively, compared to the same quarter last year [4]. - The increase in production was offset by a non-cash impairment of $1,677,000 related to oil and natural gas properties, primarily due to changes in pricing used in the ceiling test calculation [4]. - Operating costs rose due to new production from a Texas property and increased investments in existing wells and facilities at the Twining property in Alberta [4]. Land Segment Performance - The land investment segment saw significant improvement, with the sale of two remaining single-family lots generating $500,000 in percentage of sales payments and $953,000 in net cash distributions [5]. - These real estate sales contributed an increase of $1,071,000 to reported earnings of affiliates compared to the same period last year [5]. General and Administrative Expenses - General and administrative expenses decreased by $669,000, or 33%, compared to the prior year, mainly due to reduced professional fees and costs associated with a shareholders' cooperation agreement [7]. Strategic Outlook - The new CEO, Craig D. Hopkins, expressed optimism about the company's prospects in Twining and emphasized a focus on reducing general and administrative expenses and enhancing capital allocation [3]. - The company ended the quarter with $3,332,000 in working capital and remains debt-free, providing flexibility for further investments in Twining [8]. Contract Drilling Segment - The contract drilling segment experienced an operating loss increase of $424,000 due to operational issues, increased estimated costs, and higher labor expenses [6].