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Barnwell Industries (BRN)

Barnwell Industries, Inc. engages in the oil and natural gas exploration, land investment, and contract drilling services. It operates through the following segments: Oil and Natural Gas, Land Investment, and Contract Drilling. The Oil and Natural Gas segment engages in the exploration, development, production and sale of oil and natural gas in Canada. The Land Investment segment invests in land interest in Hawaii. The Contract Drilling segment provides well drilling services and water pumping system installation and repairs in Hawaii. The company was founded by Morton H. Kinzler in 1956 and is headquartered in Honolulu, HI.

Company profile

Ticker
BRN
Exchange
Website
CEO
Alexander C. Kinzler
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Barnwell of Canada, Limited • Water Resources International, Inc. • Barnwell Hawaiian Properties, Inc. • Barnwell Kona Corporation • Barnwell Alakea Properties, Inc. • Kaupulehu Mauka Investors, LLC • Barnwell Makai, Inc. • BOK Drilling, LLC • Bill Robbins Drilling, Ltd. • Gypsy Petroleum Ltd. ...
IRS number
720496921

BRN stock data

Calendar

13 May 22
12 Aug 22
30 Sep 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Sep 21 Sep 20 Sep 19 Sep 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 9.63M 9.63M 9.63M 9.63M 9.63M 9.63M
Cash burn (monthly) 838.67K (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 3.69M n/a n/a n/a n/a n/a
Cash remaining 5.93M n/a n/a n/a n/a n/a
Runway (months of cash) 7.1 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
14 Jun 22 Douglas N Woodrum Common Stock Buy Acquire P No No 2.66 100,000 266K 100,000
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 6.1 2,800 17.08K 943,060
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 5.81 1,000 5.81K 945,860
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 5.9 13,000 76.7K 946,860
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 6.0817 5,747 34.95K 959,860
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 5.92 1,000 5.92K 965,607
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 5.95 2,000 11.9K 966,607
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 5.77 1,000 5.77K 968,607
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 5.74 1,000 5.74K 969,607
8 Mar 22 Joseph Eugene Magaro Common Stock Sell Dispose S No No 5.6 2,000 11.2K 970,607
9.8% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 7 14 -50.0%
Opened positions 2 3 -33.3%
Closed positions 9 3 +200.0%
Increased positions 1 2 -50.0%
Reduced positions 0 3 EXIT
13F shares Current Prev Q Change
Total value 2.15M 2.45M -12.1%
Total shares 977.83K 1.05M -6.5%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Renaissance Technologies 554.34K $1.61M +28.3%
Sherwood Ned L 238.04K $0 0.0%
Geode Capital Management 98.86K $287K 0.0%
BLK Blackrock 68.87K $200K 0.0%
Acadian Asset Management 16.63K $48K NEW
Earnest Partners 1K $3K 0.0%
CoreCap Advisors 100 $1K NEW
Proequities 0 $0
Largest transactions Shares Bought/sold Change
Renaissance Technologies 554.34K +122.17K +28.3%
Vanguard 0 -62.08K EXIT
Bridgeway Capital Management 0 -60K EXIT
STT State Street 0 -34.38K EXIT
Two Sigma Investments 0 -19.33K EXIT
TROW T. Rowe Price 0 -18.2K EXIT
Acadian Asset Management 16.63K +16.63K NEW
Aristides Capital 0 -10.51K EXIT
MS Morgan Stanley 0 -2.55K EXIT
UBS UBS Group AG - Registered Shares 0 -318 EXIT

Financial report summary

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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.
Management Discussion
  • ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  • This Form 10-Q, and the documents incorporated herein by reference, contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. All such statements we make are forward-looking statements made under the safe harbor of the PSLRA, except to the extent such statements relate to the operations of a partnership or limited liability company. Forward-looking statements include phrases such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates,” “assumes,” “projects,” “may,” “will,” “will be,” “should,” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that might cause actual results to differ materially from Barnwell’s expectations are set forth in the “Forward-Looking Statements” and “Risk Factors” sections of Barnwell’s Annual Report on Form 10-K for the year ended September 30, 2021, “Risk Factors” section of Barnwell’s Quarterly Report on Form 10-Q for the period ended December 31, 2021, and “Risk Factors” section of this Quarterly Report filed on Form 10-Q. Investors should not place undue reliance on these forward-looking statements, as they speak only as of the date of filing of this Form 10-Q, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.
  • Management has determined that our most critical accounting policies and estimates are those related to the full-cost ceiling calculation and depletion of our oil and natural gas properties, the estimation of our contract drilling segment's revenues and expenses, and the calculation of our income taxes, all of which are discussed in our Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No.1, for the fiscal year ended September 30, 2021. There have been no significant changes to these critical accounting policies and estimates during the three and six months ended March 31, 2022. We continue to monitor our accounting policies to ensure proper application of current rules and regulations.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. senior Avg
New words: authorized, leak, margin, point, repaid, unchanged
Removed: beach, bordering, generate, impacted, July, largely, Pacific, portion, property, recovered