Core Viewpoint - The Sherwood Group, a significant shareholder of Barnwell Industries, criticizes the company's financial performance and governance, urging shareholders to focus on the deteriorating financial results and the recent going concern warning disclosed in their 10-Q [1][3]. Financial Performance - Barnwell has a long history of financial underperformance, with a distressed balance sheet and ongoing losses from operations, even during favorable commodity cycles [3][4]. - The company has spent nearly $1 million in legal fees recently and approximately $7 million over the past several years, raising concerns about its financial management [3]. - The recent financial issues are attributed to wasteful spending on non-economic matters, with a going concern warning indicating serious financial distress [3][6]. Governance Issues - The current board is accused of failing to align with shareholder interests and not taking responsibility for the company's financial decline [2][6]. - The Sherwood Group emphasizes the need for urgent changes in governance and capital allocation to restore trust and accountability [6]. - There are concerns about the board's decision-making, particularly regarding the lack of hedging activities that could mitigate volatility in energy prices [3]. Shareholder Engagement - The Sherwood Group calls for respect for shareholder votes and transparency in governance, criticizing Barnwell for not honoring the results of the consent solicitation [5][6]. - The group has encouraged shareholders to support their board nominees and abandon efforts to block a universal proxy [7].

Financial Data and Key Metrics Changes - The company reduced its net debt to EBITDA ratio from 1.0 times at the end of 2024 to 0.7 times at the end of Q1 2025 [7][25]. - Projected interest expense for 2025 was lowered by $22 million due to debt refinancing, which also eliminated quarterly amortization payments of $21 million [8][25]. - Total revenues for the quarter were $253 million, with oil contributing 49%, gas 33%, and NGLs 18% [27]. Business Line Data and Key Metrics Changes - Production for the quarter averaged 81,000 BOE per day, with a breakdown of 24% oil, 53% natural gas, and 23% NGLs [27]. - The company plans to shift its drilling focus from oil to natural gas, particularly in the Deep Anadarko Basin, while maintaining overall production levels [9][10]. Market Data and Key Metrics Changes - The current market environment is challenging, with oil prices dipping into the $50s, while the company is well-positioned with a production mix of 54% natural gas, 23% NGLs, and 23% oil projected for 2025 [9][10]. - The company expects to see double-digit growth in natural gas production in 2026 due to increased drilling activity [10]. Company Strategy and Development Direction - The company focuses on four strategic pillars: maintaining financial strength, disciplined execution, disciplined reinvestment rate, and maximizing cash distributions [4][5][17]. - The company aims to keep its reinvestment rate below 50% of operating cash flow to optimize distributions to unitholders [5][14]. - Recent acquisitions, including a $60 million deal, are aimed at enhancing cash flow and maintaining a robust drilling schedule [19][21]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather market volatility and build a stronger foundation for future growth [25][26]. - The company anticipates a balanced natural gas market in 2026, with significant production growth expected if two rigs are deployed in the Deep Anadarko [85][86]. Other Important Information - The company has distributed over $1 billion back to unitholders since its inception, with an upcoming distribution of $0.79 per unit, resulting in a 20% yield [18]. - The company has made 21 acquisitions since early 2018, spending over $2 billion, focusing on cash-flowing properties at discounted prices [20]. Q&A Session Summary Question: Can you elaborate on the recent acquisition and its impact? - Management confirmed the acquisition added significant acreage but only modest production, emphasizing the long-term value of the land [34][39]. Question: What is the current rig count and future plans? - The company is currently operating four rigs, with plans to reduce to two in June and potentially add a third rig in the Deep Anadarko by Q4, depending on cash flow [42][43]. Question: How does the company view the oil to gas ratio moving forward? - Management indicated that the decision to drill in the Oswego area is driven by the rate of return, with current conditions favoring natural gas over oil [50][51]. Question: What is the outlook for natural gas prices? - Management expressed a balanced outlook for natural gas, noting that while there are uncertainties, the market appears stable for the upcoming year [86].

Group 1 - NACCO Industries will release its 2025 First Quarter financial results on April 30, 2025, after market close [1] - A conference call to discuss the financial results is scheduled for May 1, 2025, at 8:30 a.m. Eastern Time [1] - The conference call can be accessed via telephone or webcast, with a replay available until May 8, 2025 [1] Group 2 - NACCO Industries specializes in delivering aggregates, minerals, reliable fuels, and environmental solutions through its NACCO Natural Resources businesses [2] - Additional information about NACCO Industries can be found on its website [2]