Barnwell Industries (BRN)

Risks

• Our business operations and financial condition have been and may continue to be materially and adversely affected by the outbreak of a novel strain of coronavirus, which resulted in the global health pandemic referred to as COVID-19.
• We are subject to the Continued Listing Criteria of the NYSE American and our failure to maintain continued compliance with the listing requirements of the NYSE American exchange could result in the delisting of our common stock.
• Stockholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through the issuance of securities.
• A small number of stockholders, including our CEO, own a significant amount of our common stock and have influence over our business regardless of the opposition of other stockholders.
• Our operations are subject to currency rate fluctuations.
• Adverse changes in actuarial assumptions used to calculate retirement plan costs due to economic or other factors, or lower returns on plan assets could adversely affect Barnwell’s results and financial condition.
• The price of our common stock has been volatile and could continue to fluctuate substantially.
• Failure to retain key personnel could hurt our operations.
• We are a smaller reporting company and benefit from certain reduced governance and disclosure requirements, including that our independent registered public accounting firm is not required to attest to the effectiveness of our internal control over financial reporting. We cannot be certain if the omission of reduced disclosure requirements applicable to smaller reporting companies will make our common stock less attractive to investors.
• Acquisitions or discoveries of additional reserves are needed to increase our oil and natural gas segment operating results and cash flow.
• Oil and natural gas prices are highly volatile and further declines, or extended low prices will significantly affect our financial condition and results of operations.
• The inability of one or more of our working interest partners to meet their obligations may adversely affect our financial results.
• We may incur material costs to comply with or as a result of health, safety, and environmental laws and regulations.
• We may fail to fully identify potential problems related to acquired reserves or to properly estimate those reserves.
• If oil and natural gas prices decline, we may be required to take write-downs of the carrying values of our oil and natural gas properties.
• An increase in operating costs greater than anticipated could have a material adverse effect on our results of operations and financial condition.
• Our operating results are affected by our ability to market the oil and natural gas that we produce.
• We are not the operator and have limited influence over the operations of certain of our oil and natural gas properties.
• Actual reserves will vary from reserve estimates.
• SEC rules could limit our ability to book additional proved undeveloped reserves (“PUDs”) in the future.
• Part of our strategy involves using some of the latest available horizontal drilling and completion techniques. The results of our drilling are subject to drilling and completion technique risks, and results may not meet our expectations for reserves or production.
• Delays in business operations could adversely affect the amount and timing of our cash inflows.
• The oil and natural gas market in which we operate exposes us to potential liabilities that may not be covered by insurance.
• Our operations are subject to domestic and foreign government regulation and other risks, particularly in Canada and the United States.
• Compliance with foreign tax and other laws may adversely affect our operations.
• Unforeseen title defects may result in a loss of entitlement to production and reserves.
• Receipt of future payments from KD I and KD II and cash distributions from the Kukio Resort Land Development Partnerships is dependent upon the developer’s continued efforts and ability to develop and market the property.
• We hold investment interests in unconsolidated land development partnerships, which are accounted for using the equity method of accounting, in which we do not have a controlling interest. These investments involve risks and are highly illiquid.
• We may be required to write-down the carrying value of our investment in the Kukio Resort Land Development Partnerships if our assumptions about future lot sales and profitability prove incorrect. Any write-down would negatively impact our results of operations.
• Our land investment business is concentrated in the state of Hawaii. As a result, our financial results are dependent on the economic growth and health of Hawaii, particularly the island of Hawaii.
• The occurrence of natural disasters in Hawaii could adversely affect our business.
• Demand for water well drilling and/or pump installation is volatile. A decrease in demand for our services could adversely affect our revenues and results of operations.
• If we are unable to accurately estimate the overall risks, requirements or costs when bidding on or negotiating a contract that is ultimately awarded, we may achieve a lower than anticipated profit or incur a loss on the contract.
• A significant portion of our contract drilling business is dependent on municipalities and a decline in municipal spending could adversely impact our business.
• Our contract drilling operations face significant competition.
• The loss of or damage to key vendor, customer or sub-contractor relationships would adversely affect our operations.
• Awarding of contracts is dependent upon our ability to obtain contract bid and performance bonds from insurers.
• The contracts in our backlog are subject to change orders and cancellation.
• The occurrence of natural disasters in Hawaii could adversely affect our business.