Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2021 | Feb. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-5103 | |
Entity Registrant Name | BARNWELL INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-0496921 | |
Entity Address, Address Line One | 1100 Alakea Street | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 531-8400 | |
Title of 12(b) Security | Common Stock, $0.50 par value | |
Trading Symbol | BRN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,447,220 | |
Entity Central Index Key | 0000010048 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 12,142 | $ 11,279 |
Accounts and other receivables, net of allowance for doubtful accounts of: $355,000 at December 31, 2021; $391,000 at September 30, 2021 | 3,186 | 3,069 |
Income taxes receivable | 519 | 530 |
Asset held for sale | 0 | 687 |
Other current assets | 2,696 | 2,470 |
Total current assets | 18,543 | 18,035 |
Asset for retirement benefits | 2,312 | 2,229 |
Operating lease right-of-use assets | 252 | 296 |
Property, Plant and Equipment, Gross | ||
Proved properties | 63,040 | 58,490 |
Unproved properties | 0 | 962 |
Drilling rigs and other property and equipment | 7,711 | 7,960 |
Total property and equipment | 70,751 | 67,412 |
Accumulated depletion, depreciation, and amortization | (64,183) | (63,537) |
Total property and equipment, net | 6,568 | 3,875 |
Total assets | 27,675 | 24,435 |
Current liabilities: | ||
Accounts payable | 1,207 | 1,416 |
Accrued capital expenditures | 2,754 | 909 |
Accrued compensation | 821 | 1,073 |
Accrued operating and other expenses | 1,141 | 1,171 |
Current portion of asset retirement obligation | 1,216 | 713 |
Other current liabilities | 728 | 619 |
Total current liabilities | 7,867 | 5,901 |
Long-term debt | 47 | 47 |
Operating lease liabilities | 159 | 180 |
Liability for retirement benefits | 2,117 | 2,101 |
Asset retirement obligation | 6,267 | 6,340 |
Deferred income tax liabilities | 391 | 359 |
Total liabilities | 16,848 | 14,928 |
Commitments and contingencies | ||
Equity: | ||
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 9,614,683 issued at December 31, 2021 and 9,613,525 issued at September 30, 2021 | 4,807 | 4,807 |
Additional paid-in capital | 4,846 | 4,590 |
Retained earnings | 3,429 | 2,356 |
Accumulated other comprehensive income, net | 7 | 32 |
Treasury stock, at cost: 167,900 shares at December 31, 2021 and September 30, 2021 | (2,286) | (2,286) |
Total stockholders' equity | 10,803 | 9,499 |
Non-controlling interests | 24 | 8 |
Total equity | 10,827 | 9,507 |
Total liabilities and equity | $ 27,675 | $ 24,435 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 355 | $ 391 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 9,614,683 | 9,613,525 |
Treasury stock, shares (in shares) | 167,900 | 167,900 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | ||
Revenues | $ 5,454 | $ 4,387 |
Costs and expenses: | ||
General and administrative | 1,830 | 1,185 |
Depletion, depreciation, and amortization | 483 | 276 |
Impairment of assets | 0 | 630 |
Interest expense | 0 | 1 |
Total costs and expenses | 5,209 | 4,635 |
Earnings (loss) before equity in income of affiliates and income taxes | 245 | (248) |
Equity in income of affiliates | 1,207 | 1,054 |
Earnings before income taxes | 1,452 | 806 |
Income tax provision | 112 | 63 |
Net earnings | 1,340 | 743 |
Less: Net earnings attributable to non-controlling interests | 267 | 159 |
Net earnings attributable to Barnwell Industries, Inc. | $ 1,073 | $ 584 |
Basic and diluted net earnings per common share attributable to Barnwell Industries, Inc. stockholders | $ 0.11 | $ 0.07 |
Weighted-average number of common shares outstanding: | ||
Basic and diluted (in shares) | 9,446,291 | 8,277,160 |
Oil and natural gas | ||
Revenues: | ||
Revenues | $ 3,920 | $ 1,887 |
Costs and expenses: | ||
Costs and expenses | 1,916 | 1,435 |
Depletion, depreciation, and amortization | 436 | 195 |
Impairment of assets | 0 | 630 |
Contract drilling | ||
Revenues: | ||
Revenues | 876 | 1,942 |
Costs and expenses: | ||
Costs and expenses | 980 | 1,108 |
Depletion, depreciation, and amortization | 47 | 76 |
Land investment | ||
Revenues: | ||
Revenues | 600 | 485 |
Gas processing and other | ||
Revenues: | ||
Revenues | 58 | 73 |
Costs and expenses: | ||
Depletion, depreciation, and amortization | $ 0 | $ 5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 1,340 | $ 743 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments, net of taxes of $0 | (25) | (234) |
Retirement plans: | ||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 0 | 33 |
Total other comprehensive loss | (25) | (201) |
Total comprehensive income | 1,315 | 542 |
Less: Comprehensive income attributable to non-controlling interests | (267) | (159) |
Comprehensive income attributable to Barnwell Industries, Inc. | $ 1,048 | $ 383 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 |
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests |
Balance, beginning of period (in shares) at Sep. 30, 2020 | 8,277,160 | ||||||
Balance, beginning of period at Sep. 30, 2020 | $ (1,953) | $ 4,223 | $ 1,350 | $ (3,897) | $ (1,435) | $ (2,286) | $ 92 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 743 | 584 | 159 | ||||
Foreign currency translation adjustments, net of taxes of $0 | (234) | (234) | |||||
Distributions to non-controlling interests | (248) | (248) | |||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 33 | 33 | |||||
Balance, end of period (in shares) at Dec. 31, 2020 | 8,277,160 | ||||||
Balance, end of period at Dec. 31, 2020 | (1,659) | $ 4,223 | 1,350 | (3,313) | (1,636) | (2,286) | 3 |
Balance, beginning of period (in shares) at Sep. 30, 2021 | 9,445,625 | ||||||
Balance, beginning of period at Sep. 30, 2021 | 9,507 | $ 4,807 | 4,590 | 2,356 | 32 | (2,286) | 8 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 1,340 | 1,073 | 267 | ||||
Foreign currency translation adjustments, net of taxes of $0 | (25) | (25) | |||||
Distributions to non-controlling interests | (251) | (251) | |||||
Share-based compensation | 254 | 254 | |||||
Issuance of common stock for services (in shares) | 1,158 | ||||||
Issuance of common stock for services | 2 | $ 0 | 2 | ||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 0 | ||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 9,446,783 | ||||||
Balance, end of period at Dec. 31, 2021 | $ 10,827 | $ 4,807 | $ 4,846 | $ 3,429 | $ 7 | $ (2,286) | $ 24 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 |
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net earnings | $ 1,340 | $ 743 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Equity in income of affiliates | (1,207) | (1,054) |
Depletion, depreciation, and amortization | 483 | 276 |
Impairment of assets | 0 | 630 |
Sale of interest in leasehold land, net of fees paid | (527) | (426) |
Distributions of income from equity investees | 1,207 | 1,054 |
Retirement benefits income | (68) | (8) |
Accretion of asset retirement obligation | 159 | 137 |
Non-cash rent income | (1) | (1) |
Deferred income tax expense | 32 | 39 |
Asset retirement obligation payments | (83) | (38) |
Share-based compensation expense | 254 | 0 |
Common stock issued for services | 2 | 0 |
Retirement plan contributions and payments | 0 | (2) |
Bad debt expense | 0 | 7 |
Decrease from changes in current assets and liabilities | (682) | (1,277) |
Net cash provided by operating activities | 909 | 80 |
Cash flows from investing activities: | ||
Distribution from equity investees in excess of earnings | 0 | 813 |
Proceeds from sale of interest in leasehold land, net of fees paid | 527 | 426 |
Proceeds from the sale of contract drilling assets | 687 | 0 |
Payments to acquire oil and natural gas properties | (317) | 0 |
Capital expenditures - oil and natural gas | (702) | (364) |
Capital expenditures - all other | (1) | 0 |
Net cash provided by investing activities | 194 | 875 |
Cash flows from financing activities: | ||
Borrowings on long-term debt | 0 | 31 |
Distributions to non-controlling interests | (251) | (248) |
Net cash used in financing activities | (251) | (217) |
Effect of exchange rate changes on cash and cash equivalents | 11 | 12 |
Net increase in cash and cash equivalents | 863 | 750 |
Cash and cash equivalents at beginning of period | 11,279 | 4,584 |
Cash and cash equivalents at end of period | $ 12,142 | $ 5,334 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land investment partnership (KD Kona 2013 LLLP), and a variable interest entity (Teton Barnwell Fund I, LLC) for which the Company is deemed to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars. Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2021 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. The Condensed Consolidated Balance Sheet as of September 30, 2021 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at December 31, 2021, results of operations, comprehensive income, equity (deficit) and cash flows for the three months ended December 31, 2021 and 2020, have been made. The results of operations for the period ended December 31, 2021 are not necessarily indicative of the operating results for the full year. Use of Estimates in the Preparation of Condensed Consolidated Financial Statements The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Significant assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to complete, proved oil and natural gas reserves, and the carrying value of other assets, and such assumptions may impact the amount at which such items are recorded. Significant Accounting Policies There have been no changes to Barnwell's significant accounting policies as described in the Notes to Consolidated Financial Statements included in Item 8 of the Company's most recently filed Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. The Company adopted the provisions of this ASU effective October 1, 2021. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share is computed using the weighted-average number of common shares outstanding for the period. Diluted earnings per share is calculated using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities, which consist of outstanding stock options. Potentially dilutive shares are excluded from the computation of diluted earnings per share if their effect is anti-dilutive. Options to purchase 615,000 shares of common stock were excluded from the computation of diluted shares for the three months ended December 31, 2021, as their inclusion would have been anti-dilutive. There were no options outstanding at December 31, 2020. Reconciliations between net earnings attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net earnings per share computations are detailed in the following tables: Three months ended December 31, 2021 Net Earnings Shares Per-Share Basic net earnings per share $ 1,073,000 9,446,291 $ 0.11 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 1,073,000 9,446,291 $ 0.11 Three months ended December 31, 2020 Net Earnings (Numerator) Shares Per-Share Basic net earnings per share $ 584,000 8,277,160 $ 0.07 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 584,000 8,277,160 $ 0.07 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investment in Kukio Resort Land Development Partnerships On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP (“KD Kona”) and KKM Makai, LLLP (“KKM”), and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP (“KDK”) for $5,140,000. These entities, collectively referred to hereinafter as the “Kukio Resort Land Development Partnerships,” own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort’s real estate sales office operations. KDK holds interests in KD Acquisition, LLLP (“KD I”) and KD Acquisition II, LP, formerly KD Acquisition II, LLLP (“KD II”). KD I is the developer of Kaupulehu Lot 4A Increment I (“Increment I”), and KD II is the developer of Kaupulehu Lot 4A Increment II (“Increment II”). Barnwell's ownership interests in the Kukio Resort Land Development Partnerships is accounted for using the equity method of accounting. The partnerships derive income from the sale of residential parcels, of which six lots remain to be sold at Increment I as of December 31, 2021, as well as from commissions on real estate sales by the real estate sales office and revenues resulting from the sale of private club memberships. Two ocean front parcels approximately two to three acres in size each fronting the ocean were developed within Increment II by KD II, of which one was sold in fiscal 2017 and one was sold in fiscal 2016. The remaining acreage within Increment II is not yet under development, and there is no assurance that development of such acreage will in fact occur. No definitive development plans have been made by the developer of Increment II as of the date of this report. In March 2019, KD II admitted a new development partner, Replay Kaupulehu Development, LLC (“Replay”), a party unrelated to Barnwell, in an effort to move forward with development of the remainder of Increment II at Kaupulehu. KDK and Replay hold ownership interests of 55% and 45%, respectively, of KD II and Barnwell has a 10.8% indirect non-controlling ownership interest in KD II through KDK, which is accounted for using the equity method of accounting. Barnwell continues to have an indirect 19.6% non-controlling ownership interest in KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD I. Barnwell has the right to receive distributions from the Kukio Resort Land Development Partnerships via its non-controlling interests in KD Kona and KKM, based on its respective partnership sharing ratios of 75% and 34.45%, respectively. Additionally, Barnwell was entitled to a preferred return from KKM on any allocated equity in income of the Kukio Resort Land Development Partnerships in excess of its partnership sharing ratio for cumulative distributions to all of its partners in excess of $45,000,000 from those partnerships. Cumulative distributions from the Kukio Resort Land Development Partnerships have reached the $45,000,000 threshold and in the quarter ended December 31, 2020, the Kukio Resort Land Development Partnerships made distributions in excess of the threshold out of the proceeds from the sale of two lots in Increment I. Accordingly, Barnwell received a total of $459,000 in preferred return payments, which was reflected as an additional equity pickup in the "Equity in income of affiliates" line item in the accompanying Condensed Consolidated Statement of Operations for the three months ended December 31, 2020. The preferred return payments received in the quarter ended December 31, 2020 brought the cumulative preferred return total to $656,000, which was the total amount to which Barnwell was entitled. During the three months ended December 31, 2021, Barnwell received cash distributions of $1,207,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $1,075,000, after distributing $132,000 to non-controlling interests. During the three months ended December 31, 2020, Barnwell received net cash distributions in the amount of $1,712,000 from the Kukio Resort Land Development Partnerships after distributing $155,000 to non-controlling interests. Of the $1,712,000 net cash distributions received, $459,000 represented a payment of the preferred return from KKM, as discussed above. Barnwell's equity in income of affiliates was $1,207,000 for the three months ended December 31, 2021, as compared to $1,054,000, which includes the $459,000 payment of the preferred return from KKM discussed above, for the three months ended December 31, 2020. Summarized financial information for the Kukio Resort Land Development Partnerships is as follows: Three months ended 2021 2020 Revenue $ 9,253,000 $ 8,120,000 Gross profit $ 6,714,000 $ 3,998,000 Net earnings $ 5,963,000 $ 2,612,000 In the quarter ended June 30, 2021, the Company received cumulative distributions from the Kukio Resort Land Development Partnerships in excess of our investment balance and in accordance with applicable accounting guidance, the Company suspended its equity method earnings recognition and the Kukio Resort Land Development Partnership investment balance was reduced to zero with the distributions received in excess of our investment balance recorded as equity in income of affiliates because the distributions are not refundable by agreement or by law and the Company is not liable for the obligations of or otherwise committed to provide financial support to the Kukio Resort Land Development Partnerships. The Company will record future equity method earnings only after our share of the Kukio Resort Land Development Partnership’s cumulative earnings in excess of distributions during the suspended period exceeds our share of the Kukio Resort Land Development Partnership’s income recognized for the excess distributions, and during this suspended period any distributions received will be recorded as equity in income of affiliates. Accordingly, the amount of equity in income of affiliates recognized in the three months ended December 31, 2021 was equivalent to the $1,207,000 of distributions received in that period. Sale of Interest in Leasehold Land Kaupulehu Developments has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within Increment I and Increment II by KD I and KD II (see Note 17). With respect to Increment I, Kaupulehu Developments is entitled to receive payments from KD I based on the following percentages of the gross receipts from KD I’s sales of single-family residential lots in Increment I: 10% of such aggregate gross proceeds greater than $100,000,000 up to $300,000,000; and 14% of such aggregate gross proceeds in excess of $300,000,000. The total amount of gross proceeds from single-family lot sales was $243,038,000 through December 31, 2021. Three single-family lots were sold during the three months ended December 31, 2021 and six single-family lots, of the 80 lots developed within Increment I, remained to be sold as of December 31, 2021. Under the terms of the Increment II agreement with KD II, Kaupulehu Developments is entitled to 15% of the distributions of KD II, the cost of which is to be solely borne by KDK out of its 55% ownership interest in KD II, plus a priority payout of 10% of KDK’s cumulative net profits derived from Increment II sales subsequent to Phase 2A, up to a maximum of $3,000,000 as to the priority payout. Such interests are limited to distributions or net profits interests and Barnwell will not have any partnership interests in KD II or KDK through its interest in Kaupulehu Developments. The arrangement also gives Barnwell rights to three single-family residential lots in Phase 2A of Increment II, and four single-family residential lots in phases subsequent to Phase 2A when such lots are developed by KD II, all at no cost to Barnwell. Barnwell is committed to commence construction of improvements within 90 days of the transfer of the four lots in the phases subsequent to Phase 2A as a condition of the transfer of such lots. Also, in addition to Barnwell’s existing obligations to pay professional fees to certain parties based on percentages of its gross receipts, Kaupulehu Developments also is obligated to pay an amount equal to 0.72% and 0.20% of the cumulative net profits of KD II to KD Development, LLC and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell, in compensation for the agreement of these parties to admit the new development partner for Increment II. Such compensation will be reflected as the obligation becomes probable and the amount of the obligation can be reasonably estimated. The following table summarizes Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended 2021 2020 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ 600,000 $ 485,000 Fees - included in general and administrative expenses (73,000) (59,000) Sale of interest in leasehold land, net of fees paid $ 527,000 $ 426,000 There is no assurance with regards to the amounts of future payments from Increment I or Increment II to be received, or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by the developer of Increment II as of the date of this report. Investment in Leasehold Land Interest - Lot 4C |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITY | 3 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITY | CONSOLIDATED VARIABLE INTEREST ENTITY In February 2021, Barnwell Industries, Inc. established a new wholly-owned subsidiary named BOK Drilling, LLC (“BOK”) for the purpose of indirectly investing in oil and natural gas exploration and development in Oklahoma. BOK and Gros Ventre Partners, LLC (“Gros Ventre”), an entity affiliated with the Company, entered into the Limited Liability Agreement (the “Agreement”) of Teton Barnwell Fund I, LLC (“Teton Barnwell”), an entity formed for the purpose of directly entering into such oil and natural gas investments. Under the terms of the Agreement, the profits of Teton Barnwell are split between BOK and Gros Ventre at 98% and 2%, respectively, and as the manager of Teton Barnwell, Gros Ventre is paid an annual asset management fee equal to 1% of the cumulative capital contributions made to Teton Barnwell as compensation for its management services. BOK is responsible for 100% of the capital contributions made to Teton Barnwell and as of December 31, 2021, the Company has made a total of $1,250,000 in cumulative capital contributions to Teton Barnwell to fund its oil and natural gas investments in Oklahoma. The Company has determined that Teton Barnwell is a variable interest entity (“VIE”) as the entity is structured with non-substantive voting rights and that the Company is the primary beneficiary. This is due to the fact that even though Teton Barnwell has a unanimous consent voting structure, BOK is responsible for 100% of the capital contributions required to fund Teton Barnwell’s future oil exploration and development investments pursuant to the Agreement and thus, BOK has the power to steer the decisions that most significantly impact Teton Barnwell’s economic performance and has the obligation to absorb any potential losses that could be significant to Teton Barnwell. As BOK is the primary beneficiary of the VIE, Teton Barnwell’s operating results, assets and liabilities are consolidated by the Company. Mr. Colin R. O'Farrell, a member of the Board of Directors of the Company effective July 12, 2021, is the sole member of Four Pines Operating LLC which owns a 25% interest in Gros Ventre. Mr. O'Farrell's influence as a member of the Board of Directors of the Company further supports the consolidation of Teton Barnwell's operating results, assets and liabilities as discussed above. The following table summarizes the carrying value of the assets and liabilities of Teton Barnwell that are consolidated by the Company. Intercompany balances are eliminated in consolidation and thus, are not reflected in the table below. December 31, September 30, ASSETS Cash and cash equivalents $ 444,000 $ 136,000 Accounts and other receivables 945,000 118,000 Oil and natural gas properties, full cost method of accounting: Proved properties, net 1,019,000 203,000 Unproved properties — 962,000 Total assets $ 2,408,000 $ 1,419,000 LIABILITIES Accounts payable $ 10,000 $ 3,000 Accrued capital expenditures 284,000 581,000 Accrued operating and other expenses 71,000 20,000 Total liabilities $ 365,000 $ 604,000 |
ASSET HELD FOR SALE
ASSET HELD FOR SALE | 3 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
ASSET HELD FOR SALE | ASSET HELD FOR SALE In September 2021, the Company designated a contract drilling segment drilling rig and related ancillary equipment, with an aggregate net carrying value of $725,000, as assets held for sale and recorded an impairment of $38,000 to reduce the value of these assets to its fair value, less estimated selling costs. The fair value of these assets in the aggregate amount of $687,000 was recorded as “Assets held for sale” on the Company's Condensed Consolidated Balance Sheet at September 30, 2021. In October 2021, the Company sold the drilling rig and related ancillary equipment for proceeds of $687,000, net of related costs, which was equivalent to its net carrying value. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 3 Months Ended |
Dec. 31, 2021 | |
Oil and Natural Gas Properties [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | OIL AND NATURAL GAS PROPERTIES Acquisitions In the three months ended December 31, 2021, Barnwell acquired working interests in oil and natural gas properties located in the Twining area of Alberta, Canada, for cash consideration of $317,000. There were no oil and natural gas working interest acquisitions during the three months ended December 31, 2020. Impairment of Oil and Natural Gas Properties Under the full cost method of accounting, the Company performs quarterly oil and natural gas ceiling test calculations. There was a no ceiling test impairment during the three months ended December 31, 2021. There was a $630,000 ceiling test impairment during the three months ended December 31, 2020. Changes in the mandated 12-month historical rolling average first-day-of-the-month prices for oil, natural gas and natural gas liquids prices, the value of reserve additions as compared to the amount of capital expenditures to obtain them, and changes in production rates and estimated levels of reserves, future development costs and the estimated market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties. |
RETIREMENT PLANS
RETIREMENT PLANS | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Executive Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and previously a sponsored post-retirement medical insurance benefits plan (“Post-retirement Medical”) covering eligible U.S. employees. In June 2021, the Company terminated its Post-retirement Medical plan effective June 4, 2021. Pursuant to the Post-retirement Medical plan document, the Company, as the sponsor of the Post-retirement Medical plan, had the right to terminate the plan by resolution of the Board of Directors of the Company and sixty days ’ notice to each participant in the plan. Further, under the terms of the plan document, the participants in the Post-retirement Medical plan were not entitled to any unpaid vested benefits thereunder upon termination of the plan. The Post-retirement Medical plan was an unfunded plan and the Company funded benefits when payments were made. The following table details the components of net periodic benefit (income) cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended December 31, 2021 2020 2021 2020 2021 2020 Interest cost $ 73,000 $ 65,000 $ 15,000 $ 13,000 $ — $ 18,000 Expected return on plan assets (156,000) (137,000) — — — — Amortization of net actuarial loss — 10,000 — — — 23,000 Net periodic benefit (income) cost $ (83,000) $ (62,000) $ 15,000 $ 13,000 $ — $ 41,000 The net periodic benefit (income) cost is included in “General and administrative” expenses in the Company's Condensed Consolidated Statements of Operations. Currently, no contributions are expected to be made to the Pension Plan during fiscal 2022. The SERP plan is unfunded and Barnwell funds benefits when payments are made. Expected payments under the SERP for fiscal 2022 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of earnings before income taxes, after adjusting the earnings for non-controlling interests, are as follows: Three months ended 2021 2020 United States $ 892,000 $ 1,422,000 Canada 293,000 (775,000) $ 1,185,000 $ 647,000 The components of the income tax provision are as follows: Three months ended 2021 2020 Current $ 80,000 $ 24,000 Deferred 32,000 39,000 $ 112,000 $ 63,000 Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort Land Development Partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTACTS WITH CUSTOMERS | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables provides information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three months ended December 31, 2021 and 2020. Three months ended December 31, 2021 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 2,668,000 $ — $ — $ — $ 2,668,000 Natural gas 849,000 — — — 849,000 Natural gas liquids 403,000 — — — 403,000 Drilling and pump — 876,000 — — 876,000 Contingent residual payments — — 600,000 — 600,000 Other — — — 57,000 57,000 Total revenues before interest income $ 3,920,000 $ 876,000 $ 600,000 $ 57,000 $ 5,453,000 Geographical regions: United States $ 964,000 $ 876,000 $ 600,000 $ 4,000 $ 2,444,000 Canada 2,956,000 — — 53,000 3,009,000 Total revenues before interest income $ 3,920,000 $ 876,000 $ 600,000 $ 57,000 $ 5,453,000 Timing of revenue recognition: Goods transferred at a point in time $ 3,920,000 $ — $ 600,000 $ 57,000 $ 4,577,000 Services transferred over time — 876,000 — — 876,000 Total revenues before interest income $ 3,920,000 $ 876,000 $ 600,000 $ 57,000 $ 5,453,000 Three months ended December 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,380,000 $ — $ — $ — $ 1,380,000 Natural gas 375,000 — — — 375,000 Natural gas liquids 132,000 — — — 132,000 Drilling and pump — 1,942,000 — — 1,942,000 Contingent residual payments — — 485,000 — 485,000 Other — — — 73,000 73,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Geographical regions: United States $ — $ 1,942,000 $ 485,000 $ — $ 2,427,000 Canada 1,887,000 — — 73,000 1,960,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Timing of revenue recognition: Goods transferred at a point in time $ 1,887,000 $ — $ 485,000 $ 73,000 $ 2,445,000 Services transferred over time — 1,942,000 — — 1,942,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Contract Balances The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers: December 31, 2021 September 30, 2021 Accounts receivables from contracts with customers $ 2,990,000 $ 2,797,000 Contract assets 497,000 581,000 Contract liabilities 523,000 455,000 Accounts receivables from contracts with customers are included in "Accounts and other receivables, net of allowance for doubtful accounts," and contract assets, which includes costs and estimated earnings in excess of billings and retainage, are included in “Other current assets.” Contract liabilities, which includes billings in excess of costs and estimated earnings are included in “Other current liabilities” in the accompanying Condensed Consolidated Balance Sheets. Retainage, included in contract assets, represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice, up to contractually-specified maximums. The Company classifies as a current asset those retainages that are expected to be collected in the next twelve months. Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights are generally unconditional at the time its performance obligations are satisfied. When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs and estimated earnings on uncompleted contracts. As of December 31, 2021 and September 30, 2021, the Company had $523,000 and $455,000, respectively, included in “Other current liabilities” on the balance sheet for those performance obligations expected to be completed in the next twelve months. During the three months ended December 31, 2021 and 2020, the amount of revenue recognized that was previously included in contract liabilities as of the beginning of the respective period was $186,000 and $573,000, respectively. Contracts are sometimes modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods and services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis. Performance Obligations The Company’s remaining performance obligations for drilling and pump installation contracts (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments. In addition, our customers have the right, under some infrequent circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. Nearly all of the Company's contract drilling segment contracts have original expected durations of one year or less. At December 31, 2021, the Company had four contract drilling jobs with original expected durations of greater than one year. For these contracts, approximately 13% of the remaining performance obligation of $2,818,000 is expected to be recognized as revenue in the next twelve months and the remaining, thereafter. Contract Fulfillment Costs Preconstruction costs, which include costs such as set-up and mobilization, are capitalized and allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. As of December 31, 2021 and September 30, 2021, the Company had $281,000 and $326,000, respectively, in unamortized preconstruction costs related to contracts that were not completed. During the three months ended December 31, 2021 and 2020, the amortization of preconstruction costs related to contracts were not material and were included in the accompanying Condensed Consolidated Statements of Operations. Additionally, no impairment charges in connection with the Company’s preconstruction costs were recorded during the three months ended December 31, 2021 and 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil and natural gas in Canada and Oklahoma (oil and natural gas); 2) investing in land interests in Hawaii (land investment); and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling). The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended 2021 2020 Revenues: Oil and natural gas $ 3,920,000 $ 1,887,000 Contract drilling 876,000 1,942,000 Land investment 600,000 485,000 Other 57,000 73,000 Total before interest income 5,453,000 4,387,000 Interest income 1,000 — Total revenues $ 5,454,000 $ 4,387,000 Depletion, depreciation, and amortization: Oil and natural gas $ 436,000 $ 195,000 Contract drilling 47,000 76,000 Other — 5,000 Total depletion, depreciation, and amortization $ 483,000 $ 276,000 Impairment: Oil and natural gas $ — $ 630,000 Total impairment $ — $ 630,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 1,568,000 $ (373,000) Contract drilling (151,000) 758,000 Land investment 600,000 485,000 Other 57,000 68,000 Total operating profit 2,074,000 938,000 Equity in income of affiliates: Land investment 1,207,000 1,054,000 General and administrative expenses (1,830,000) (1,185,000) Interest expense — (1,000) Interest income 1,000 — Earnings before income taxes $ 1,452,000 $ 806,000 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in each component of accumulated other comprehensive income (loss) were as follows: Three months ended 2021 2020 Foreign currency translation: Beginning accumulated foreign currency translation $ 262,000 $ 545,000 Change in cumulative translation adjustment before reclassifications (25,000) (234,000) Income taxes — — Net current period other comprehensive loss (25,000) (234,000) Ending accumulated foreign currency translation 237,000 311,000 Retirement plans: Beginning accumulated retirement plans benefit cost (230,000) (1,980,000) Amortization of net actuarial loss — 33,000 Income taxes — — Net current period other comprehensive income — 33,000 Ending accumulated retirement plans benefit cost (230,000) (1,947,000) Accumulated other comprehensive income (loss), net of taxes $ 7,000 $ (1,636,000) The amortization of net actuarial loss for the retirement plans are included in the computation of net periodic benefit (income) cost which is a component of “General and administrative” expenses on the accompanying Condensed Consolidated Statements of Operations (see Note 7 for additional details). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The estimated fair values of oil and natural gas properties and the asset retirement obligation incurred in the drilling of oil and natural gas wells or assumed in the acquisitions of additional oil and natural gas working interests are based on an estimated discounted cash flow model and market assumptions. The significant Level 3 assumptions used in the calculation of estimated discounted cash flows included future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development, operating and asset retirement costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. Barnwell estimates the fair value of asset retirement obligations based on the projected discounted future cash outflows required to settle abandonment and restoration liabilities. Such an estimate requires assumptions and judgments regarding the existence of liabilities, the amount and timing of cash outflows required to settle the liability, what constitutes adequate restoration, inflation factors, credit adjusted discount rates, and consideration of changes in legal, regulatory, environmental and political environments. Abandonment and restoration cost estimates are determined in conjunction with Barnwell’s reserve engineers based on historical information regarding costs incurred to abandon and restore similar |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Canada Emergency Business Account Loan In the quarter ended December 31, 2020, the Company’s Canadian subsidiary, Barnwell of Canada, received a loan of CAD$40,000 (in Canadian dollars) under the Canada Emergency Business Account (“CEBA”) loan program for small businesses. In the quarter ended March 31, 2021, the Company applied for an increase to our CEBA loan and received an additional CAD$20,000 for a total loan amount received of CAD$60,000 ($47,000) under the program. The CEBA loan is interest-free with no principal payments required until December 31, 2022, after which the remaining loan balance is converted to a three year term loan at 5% annual interest paid monthly. If the Company repays 66.6% of the principal amount prior to December 31, 2022, there will be loan forgiveness of 33.3% up to a maximum of CAD$20,000. |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY (DEFICIT) | STOCKHOLDERS' EQUITY (DEFICIT) At The Market Offering On March 16, 2021, the Company entered into a Sales Agreement (the “Sales Agreement”) with A.G.P./Alliance Global Partners (“A.G.P,”), with respect to an at-the-market offering program (“ATM”) pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.50 per share, having an aggregate sales price of up to $25 million (subject to certain limitations set forth in the Sales Agreement and applicable securities laws, rules and regulations), through or to A.G.P as the Company’s sales agent or as principal. Sales of our common stock under the ATM, if any, will be made by any methods deemed to be “at the market offerings” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the NYSE American, on any other existing trading market for our Common Stock, or to or through a market maker. Shares of common stock sold under the ATM are offered pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-254365), filed with the Securities and Exchange Commission on March 16, 2021, and declared effective on March 26, 2021 (the "Registration Statement”), and the prospectus dated March 26, 2021, included in the Registration Statement. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Dec. 31, 2021 | |
Loss Contingency [Abstract] | |
CONTINGENCIES | CONTINGENCIES Legal and Regulatory Matters Barnwell is routinely involved in disputes with third parties that occasionally require litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell’s management is not aware of any claims or litigation involving Barnwell that are likely to have a material adverse effect on its results of operations, financial position or liquidity. In the three months ended December 31, 2021, it was determined that a contract drilling segment well completed in the period did not meet the contract specifications for plumbness under a gyroscopic plumbness test which the contract required. While the well did pass the cage plumbness test, the contract uses the gyroscopic test as the measure of plumbness. Barnwell and the customer currently have a verbal arrangement where Barnwell will provide for centralizers and armored cabling and a warranty agreement, however Barnwell’s management believes the plumbness deviation is not impactful to the performance of the submersible pumps that will be installed in the well. Accordingly, while costs for the centralizers and armored cabling have been accrued, no accrual has been recorded as of December 31, 2021 for the warranty as there is no probable or estimable contingent liability. |
INFORMATION RELATING TO THE CON
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | 3 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS | INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSCapital expenditure accruals related to oil and natural gas exploration and development increased $1,851,000 during the three months ended December 31, 2021 and decreased $225,000 during the three months ended December 31, 2020. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $304,000 during the three months ended December 31, 2021 and decreased $176,000 during the three months ended December 31, 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Kaupulehu Developments is entitled to receive payments from the sales of lots and/or residential units by KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method of investment. The percentage of sales payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships. Changes to the arrangement above, effective March 7, 2019, are discussed in Note 3. During the three months ended December 31, 2021, Kaupulehu Developments received $600,000 in percentage of sales payments from KD I from the sale of three single-family lots within Phase II of Increment I. During the three months ended December 31, 2020, Kaupulehu Developments received $485,000 in percentage of sales payments from KD I from the sale of two single-family lots within Phase II of Increment I. Mr. Colin R. O'Farrell, a member of the Board of Directors of the Company effective July 12, 2021, is the sole member of Four Pines Operating LLC which owns a 25% interest in Gros Ventre. In |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Oil and Natural Gas Property Acquisitions Subsequent to December 31, 2021, Barnwell acquired additional working interests in oil and natural gas properties located in the Twining area of Alberta, Canada for consideration of approximately $1,250,000. The purchase price per the agreement was adjusted for customary purchase price adjustments to reflect the economic activity from the effective date to the closing date. The final determination of the customary adjustments to the purchase price has not yet been made, however it is not expected to result in a material adjustment. This transaction will be reflected in Barnwell's quarter ending March 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land investment partnership (KD Kona 2013 LLLP), and a variable interest entity (Teton Barnwell Fund I, LLC) for which the Company is deemed to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2021 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. The Condensed Consolidated Balance Sheet as of September 30, 2021 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at December 31, 2021, results of operations, comprehensive income, equity (deficit) and cash flows for the three months ended December 31, 2021 and 2020, have been made. The results of operations for the period ended December 31, 2021 are not necessarily indicative of the operating results for the full year. |
Use of Estimates in the Preparation of Condensed Consolidated Financial Statements | Use of Estimates in the Preparation of Condensed Consolidated Financial Statements The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Significant assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. The Company adopted the provisions of this ASU effective October 1, 2021. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliations between net earnings attributable to the entity's stockholders and common shares outstanding of the basic and diluted net earnings per share computations | Reconciliations between net earnings attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net earnings per share computations are detailed in the following tables: Three months ended December 31, 2021 Net Earnings Shares Per-Share Basic net earnings per share $ 1,073,000 9,446,291 $ 0.11 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 1,073,000 9,446,291 $ 0.11 Three months ended December 31, 2020 Net Earnings (Numerator) Shares Per-Share Basic net earnings per share $ 584,000 8,277,160 $ 0.07 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 584,000 8,277,160 $ 0.07 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Summarized financial information for the land development partnerships | Summarized financial information for the Kukio Resort Land Development Partnerships is as follows: Three months ended 2021 2020 Revenue $ 9,253,000 $ 8,120,000 Gross profit $ 6,714,000 $ 3,998,000 Net earnings $ 5,963,000 $ 2,612,000 |
Summary of increment I and increment II percentage of sales payment revenues received | The following table summarizes Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended 2021 2020 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ 600,000 $ 485,000 Fees - included in general and administrative expenses (73,000) (59,000) Sale of interest in leasehold land, net of fees paid $ 527,000 $ 426,000 |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITY (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Schedule of assets and liabilities of variable interest entity | The following table summarizes the carrying value of the assets and liabilities of Teton Barnwell that are consolidated by the Company. Intercompany balances are eliminated in consolidation and thus, are not reflected in the table below. December 31, September 30, ASSETS Cash and cash equivalents $ 444,000 $ 136,000 Accounts and other receivables 945,000 118,000 Oil and natural gas properties, full cost method of accounting: Proved properties, net 1,019,000 203,000 Unproved properties — 962,000 Total assets $ 2,408,000 $ 1,419,000 LIABILITIES Accounts payable $ 10,000 $ 3,000 Accrued capital expenditures 284,000 581,000 Accrued operating and other expenses 71,000 20,000 Total liabilities $ 365,000 $ 604,000 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost (income) | The following table details the components of net periodic benefit (income) cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended December 31, 2021 2020 2021 2020 2021 2020 Interest cost $ 73,000 $ 65,000 $ 15,000 $ 13,000 $ — $ 18,000 Expected return on plan assets (156,000) (137,000) — — — — Amortization of net actuarial loss — 10,000 — — — 23,000 Net periodic benefit (income) cost $ (83,000) $ (62,000) $ 15,000 $ 13,000 $ — $ 41,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income before income taxes, after adjusting the earnings for non-controlling interests | The components of earnings before income taxes, after adjusting the earnings for non-controlling interests, are as follows: Three months ended 2021 2020 United States $ 892,000 $ 1,422,000 Canada 293,000 (775,000) $ 1,185,000 $ 647,000 |
Schedule of components of the income tax provision | The components of the income tax provision are as follows: Three months ended 2021 2020 Current $ 80,000 $ 24,000 Deferred 32,000 39,000 $ 112,000 $ 63,000 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue | The following tables provides information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three months ended December 31, 2021 and 2020. Three months ended December 31, 2021 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 2,668,000 $ — $ — $ — $ 2,668,000 Natural gas 849,000 — — — 849,000 Natural gas liquids 403,000 — — — 403,000 Drilling and pump — 876,000 — — 876,000 Contingent residual payments — — 600,000 — 600,000 Other — — — 57,000 57,000 Total revenues before interest income $ 3,920,000 $ 876,000 $ 600,000 $ 57,000 $ 5,453,000 Geographical regions: United States $ 964,000 $ 876,000 $ 600,000 $ 4,000 $ 2,444,000 Canada 2,956,000 — — 53,000 3,009,000 Total revenues before interest income $ 3,920,000 $ 876,000 $ 600,000 $ 57,000 $ 5,453,000 Timing of revenue recognition: Goods transferred at a point in time $ 3,920,000 $ — $ 600,000 $ 57,000 $ 4,577,000 Services transferred over time — 876,000 — — 876,000 Total revenues before interest income $ 3,920,000 $ 876,000 $ 600,000 $ 57,000 $ 5,453,000 Three months ended December 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,380,000 $ — $ — $ — $ 1,380,000 Natural gas 375,000 — — — 375,000 Natural gas liquids 132,000 — — — 132,000 Drilling and pump — 1,942,000 — — 1,942,000 Contingent residual payments — — 485,000 — 485,000 Other — — — 73,000 73,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Geographical regions: United States $ — $ 1,942,000 $ 485,000 $ — $ 2,427,000 Canada 1,887,000 — — 73,000 1,960,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Timing of revenue recognition: Goods transferred at a point in time $ 1,887,000 $ — $ 485,000 $ 73,000 $ 2,445,000 Services transferred over time — 1,942,000 — — 1,942,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 |
Summary of contract with customer, asset and liability | The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers: December 31, 2021 September 30, 2021 Accounts receivables from contracts with customers $ 2,990,000 $ 2,797,000 Contract assets 497,000 581,000 Contract liabilities 523,000 455,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of financial information related to reporting segments | The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended 2021 2020 Revenues: Oil and natural gas $ 3,920,000 $ 1,887,000 Contract drilling 876,000 1,942,000 Land investment 600,000 485,000 Other 57,000 73,000 Total before interest income 5,453,000 4,387,000 Interest income 1,000 — Total revenues $ 5,454,000 $ 4,387,000 Depletion, depreciation, and amortization: Oil and natural gas $ 436,000 $ 195,000 Contract drilling 47,000 76,000 Other — 5,000 Total depletion, depreciation, and amortization $ 483,000 $ 276,000 Impairment: Oil and natural gas $ — $ 630,000 Total impairment $ — $ 630,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 1,568,000 $ (373,000) Contract drilling (151,000) 758,000 Land investment 600,000 485,000 Other 57,000 68,000 Total operating profit 2,074,000 938,000 Equity in income of affiliates: Land investment 1,207,000 1,054,000 General and administrative expenses (1,830,000) (1,185,000) Interest expense — (1,000) Interest income 1,000 — Earnings before income taxes $ 1,452,000 $ 806,000 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in each component of accumulated other comprehensive income (loss) | The changes in each component of accumulated other comprehensive income (loss) were as follows: Three months ended 2021 2020 Foreign currency translation: Beginning accumulated foreign currency translation $ 262,000 $ 545,000 Change in cumulative translation adjustment before reclassifications (25,000) (234,000) Income taxes — — Net current period other comprehensive loss (25,000) (234,000) Ending accumulated foreign currency translation 237,000 311,000 Retirement plans: Beginning accumulated retirement plans benefit cost (230,000) (1,980,000) Amortization of net actuarial loss — 33,000 Income taxes — — Net current period other comprehensive income — 33,000 Ending accumulated retirement plans benefit cost (230,000) (1,947,000) Accumulated other comprehensive income (loss), net of taxes $ 7,000 $ (1,636,000) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Dec. 31, 2021 | |
Kaupulehu Developments | |
Principles of Consolidation | |
Ownership interest in subsidiaries (as a percent) | 77.60% |
KD Kona 2013 LLLP | |
Principles of Consolidation | |
Ownership interest in subsidiaries (as a percent) | 75.00% |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net Earnings (Loss) (Numerator) | ||
Basic | $ 1,073 | $ 584 |
Effect of dilutive securities - common stock options | 0 | 0 |
Diluted | $ 1,073 | $ 584 |
Shares (Denominator) | ||
Basic (in shares) | 9,446,291 | 8,277,160 |
Effect of dilutive securities - common stock options | 0 | 0 |
Diluted (in shares) | 9,446,291 | 8,277,160 |
Per-Share Amount | ||
Basic net earnings per share (in dollars per share) | $ 0.11 | $ 0.07 |
Diluted net earnings per share (in dollars per share) | $ 0.11 | $ 0.07 |
Options | ||
Antidilutive shares of common stock excluded from the computation of diluted shares | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 615,000 | 0 |
INVESTMENTS - INVESTMENT IN KUK
INVESTMENTS - INVESTMENT IN KUKIO RESORT LAND DEVELOPMENT PARTNERSHIP (Details) $ in Thousands | Nov. 27, 2013USD ($)partnership | Dec. 31, 2021USD ($)lot | Dec. 31, 2020USD ($) | Sep. 30, 2017a | Sep. 30, 2016 | Jun. 30, 2021USD ($) | Mar. 07, 2019 |
Investment Holdings [Line Items] | |||||||
Equity in income of affiliates | $ 1,207 | $ 1,054 | |||||
Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of limited liability limited partnerships formed | partnership | 2 | ||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, made to date | 45,000 | ||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, partial payment preferred return | 459 | ||||||
Cumulative cash distributions from Kukio Resort land development Partnerships, preferred return | 656 | ||||||
Cash distribution from equity method investment, gross | 1,207 | ||||||
Cash distribution from equity method investment, net | 1,075 | 1,712 | |||||
Equity in income of affiliates | $ 1,207 | 1,054 | |||||
Investment in Kukio Resort Land Development Partnerships | $ 0 | ||||||
KD Kukio Resorts LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
KD Kaupulehu, LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
KD Maniniowali LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
Indirectly Acquired Interest | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Aggregate cost | $ 5,140 | ||||||
KD Acquisition, LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
KD Kona 2013 LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 75.00% | ||||||
KKM Makai LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 34.45% | ||||||
KD Kaupulehu LLLP Increment I | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of residential lots remaining to be sold | lot | 6 | ||||||
KD Kaupulehu, LLLP | KD Acquisition II, LP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 55.00% | ||||||
Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||
Investment Holdings [Line Items] | |||||||
Number of lots developed | 2 | ||||||
Number of single family lots sold | 1 | 1 | |||||
Replay | KD Acquisition II, LP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 45.00% | ||||||
Barnwell Industries Inc | KD Acquisition II, LP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 10.80% | ||||||
Non-controlling Interests | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Cash distribution from equity method investment, net | $ 132 | $ 155 | |||||
Maximum | Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||
Investment Holdings [Line Items] | |||||||
Increment II lot size | a | 3 | ||||||
Minimum | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, threshold | $ 45,000 | ||||||
Minimum | Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||
Investment Holdings [Line Items] | |||||||
Increment II lot size | a | 2 |
INVESTMENTS - SUMMARIZED FINANC
INVESTMENTS - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 5,454 | $ 4,387 |
Net earnings | 1,340 | 743 |
Investment in land development partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 9,253 | 8,120 |
Gross Profit | 6,714 | 3,998 |
Net earnings | $ 5,963 | $ 2,612 |
INVESTMENTS - SALE OF INTEREST
INVESTMENTS - SALE OF INTEREST IN LEASEHOLD LAND (Details) | 3 Months Ended | |
Dec. 31, 2021USD ($)lot | Mar. 07, 2019USD ($)day | |
KD Acquisition II, LP | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, percentage of distributions | 15.00% | |
Collaborative agreement, percentage of cumulative net profits, priority payment | 10.00% | |
Collaborative agreement, percentage of cumulative net profits, priority payment, maximum amount | $ 3,000,000 | |
KD Acquisition II, LP | KD Kaupulehu, LLLP | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Ownership interest acquired | 55.00% | |
KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | $ 243,038,000 | |
Number of single family lots sold | lot | 3 | |
Number of lots remaining to be sold | lot | 6 | |
Number of lots developed | lot | 80 | |
KD Kaupulehu LLLP Increment II Phase 2A | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Number of single family lots, rights to | 3 | |
KD Kaupulehu LLLP Increment II Phase 2A, lots completed subsequent to Phase 2A | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Number of single family lots, rights to | 4 | |
Collaborative agreement, commitment to construct improvements, term | day | 90 | |
KD Development, LLC | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, fees, percentage of cumulative net profits | 0.72% | |
Pool of Various Individuals | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, fees, percentage of cumulative net profits | 0.20% | |
Aggregate gross proceeds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Payments entitled to be received as percentage of gross proceeds from sale of single family lots | 10.00% | |
Aggregate gross proceeds in excess of $300,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Payments entitled to be received as percentage of gross proceeds from sale of single family lots | 14.00% | |
Minimum | Aggregate gross proceeds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | $ 100,000,000 | |
Minimum | Aggregate gross proceeds in excess of $300,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | 300,000,000 | |
Maximum | Aggregate gross proceeds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | $ 300,000,000 |
INVESTMENTS - SUMMARY OF REVENU
INVESTMENTS - SUMMARY OF REVENUES (Details) - Kaupulehu Developments - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Holdings [Line Items] | ||
Revenues - sale of interest in leasehold land | $ 600 | $ 485 |
Fees - included in general and administrative expenses | (73) | (59) |
Sale of interest in leasehold land, net of fees paid | $ 527 | $ 426 |
INVESTMENTS - INVESTMENT IN LEA
INVESTMENTS - INVESTMENT IN LEASEHOLD LAND INTEREST - LOT 4C (Details) | Dec. 31, 2021a |
Investment in leasehold land interest - Lot 4C | |
Investment Holdings [Line Items] | |
Area of land (in acres) | 1,000 |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITY NARRATIVE (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Variable Interest Entity [Line Items] | |
Percentage of capital contributions to variable interest entity | 100.00% |
Cumulative capital contributions made to variable interest entity | $ 1,250 |
Gros Ventre Partners, LLC | |
Variable Interest Entity [Line Items] | |
Profit sharing ratio of variable interest entity | 2.00% |
Asset management fee, percent fee of cumulative capital contributions | 1.00% |
BOK Drilling, LLC | |
Variable Interest Entity [Line Items] | |
Profit sharing ratio of variable interest entity | 98.00% |
Four Pines Operating LLC | Gros Ventre Partners, LLC | |
Variable Interest Entity [Line Items] | |
Interest owned by member of Board of Directors | 25.00% |
CONSOLIDATED VARIABLE INTERES_4
CONSOLIDATED VARIABLE INTEREST ENTITY - CARRYING VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 12,142 | $ 11,279 |
Accounts and other receivables | 3,186 | 3,069 |
Total assets | 27,675 | 24,435 |
Liabilities [Abstract] | ||
Accounts payable | 1,207 | 1,416 |
Accrued capital expenditures | 2,754 | 909 |
Accrued operating and other expenses | 1,141 | 1,171 |
Total liabilities | 16,848 | 14,928 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Cash and cash equivalents | 444 | 136 |
Accounts and other receivables | 945 | 118 |
Proved properties, net | 1,019 | 203 |
Unproved properties | 0 | 962 |
Total assets | 2,408 | 1,419 |
Liabilities [Abstract] | ||
Accounts payable | 10 | 3 |
Accrued capital expenditures | 284 | 581 |
Accrued operating and other expenses | 71 | 20 |
Total liabilities | $ 365 | $ 604 |
ASSET HELD FOR SALE (Details)
ASSET HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Long Lived Assets Held-for-sale [Line Items] | |||
Aggregate carrying value, net | $ 6,568 | $ 3,875 | |
Proceeds from the sale of contract drilling assets | 687 | $ 0 | |
Drilling Rigs And Equipment | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Aggregate carrying value, net | 725 | ||
Impairment of long-lived assets to be disposed of | 38 | ||
Asset held for sale | $ 687 | ||
Proceeds from the sale of contract drilling assets | $ 687 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Oil and Natural Gas Properties [Line Items] | ||
Payments to acquire oil and natural gas properties | $ 317 | $ 0 |
Impairment of assets | 0 | 630 |
Oil and natural gas | ||
Oil and Natural Gas Properties [Line Items] | ||
Impairment of assets | 0 | $ 630 |
Barnwell Industries Inc | Twining, Alberta, Canada | ||
Oil and Natural Gas Properties [Line Items] | ||
Payments to acquire oil and natural gas properties | $ 317 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | ||
Net periodic benefit cost: | ||
Interest cost | $ 73 | $ 65 |
Expected return on plan assets | (156) | (137) |
Amortization of net actuarial loss | 0 | 10 |
Net periodic benefit (income) cost | (83) | (62) |
Other disclosures | ||
Estimated future Pension Plan contributions | 0 | |
SERP | ||
Net periodic benefit cost: | ||
Interest cost | 15 | 13 |
Expected return on plan assets | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 |
Net periodic benefit (income) cost | 15 | 13 |
Postretirement Medical | ||
Net periodic benefit cost: | ||
Interest cost | 0 | 18 |
Expected return on plan assets | 0 | 0 |
Amortization of net actuarial loss | 0 | 23 |
Net periodic benefit (income) cost | $ 0 | $ 41 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests | ||
United States | $ 892 | $ 1,422 |
Canada | 293 | (775) |
Total | 1,185 | 647 |
Components of the income tax provision (benefit) | ||
Current | 80 | 24 |
Deferred | 32 | 39 |
Total | $ 112 | $ 63 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | $ 5,453 | $ 4,387 |
Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 2,668 | 1,380 |
Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 849 | 375 |
Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 403 | 132 |
Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 876 | 1,942 |
Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 600 | 485 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 57 | 73 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 2,444 | 2,427 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 3,009 | 1,960 |
Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 4,577 | 2,445 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 876 | 1,942 |
Oil and natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 3,920 | 1,887 |
Oil and natural gas | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 2,668 | 1,380 |
Oil and natural gas | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 849 | 375 |
Oil and natural gas | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 403 | 132 |
Oil and natural gas | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Oil and natural gas | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Oil and natural gas | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Oil and natural gas | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 964 | 0 |
Oil and natural gas | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 2,956 | 1,887 |
Oil and natural gas | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 3,920 | 1,887 |
Oil and natural gas | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 876 | 1,942 |
Contract drilling | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 876 | 1,942 |
Contract drilling | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 876 | 1,942 |
Contract drilling | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 876 | 1,942 |
Land investment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 600 | 485 |
Land investment | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 600 | 485 |
Land investment | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 600 | 485 |
Land investment | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 600 | 485 |
Land investment | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 57 | 73 |
Other | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 57 | 73 |
Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 4 | 0 |
Other | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 53 | 73 |
Other | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 57 | 73 |
Other | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | $ 0 | $ 0 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - CONTRACT BALANCES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivables from contracts with customers | $ 2,990 | $ 2,797 |
Contract assets | 497 | 581 |
Contract liabilities | $ 523 | $ 455 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - NARRATIVE (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, current | $ 523 | $ 455 | |
Contract with customer, liability, revenue recognized | $ 186 | $ 573 | |
Percentage anticipated to be recognized in next 12 months | 13.00% | ||
Revenue, remaining performance obligation (backlog) | $ 2,818 | ||
Capitalized contract cost net, preconstruction | $ 281 | $ 326 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 5.00% | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 10.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | ||
Revenue before interest income | $ 5,453,000 | $ 4,387,000 |
Interest income | 1,000 | 0 |
Total revenues | 5,454,000 | 4,387,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 483,000 | 276,000 |
Asset Impairment Charges [Abstract] | ||
Impairment of assets | 0 | 630,000 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | 2,074,000 | 938,000 |
Equity in income (loss) of affiliates: | ||
Equity in income of affiliates | 1,207,000 | 1,054,000 |
General and administrative expenses | (1,830,000) | (1,185,000) |
Interest expense | 0 | (1,000) |
Interest income | 1,000 | 0 |
Earnings before income taxes | 1,452,000 | 806,000 |
Intersegment eliminations | ||
Revenues: | ||
Total revenues | 0 | |
Oil and natural gas | ||
Revenues: | ||
Revenue before interest income | 3,920,000 | 1,887,000 |
Total revenues | 3,920,000 | 1,887,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 436,000 | 195,000 |
Asset Impairment Charges [Abstract] | ||
Impairment of assets | 0 | 630,000 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | 1,568,000 | (373,000) |
Contract drilling | ||
Revenues: | ||
Revenue before interest income | 876,000 | 1,942,000 |
Total revenues | 876,000 | 1,942,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 47,000 | 76,000 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | (151,000) | 758,000 |
Land investment | ||
Revenues: | ||
Revenue before interest income | 600,000 | 485,000 |
Total revenues | 600,000 | 485,000 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | 600,000 | 485,000 |
Other | ||
Revenues: | ||
Revenue before interest income | 57,000 | 73,000 |
Total revenues | 58,000 | 73,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 0 | 5,000 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | $ 57,000 | $ 68,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Changes in foreign currency translation | |||
Beginning accumulated foreign currency translation | $ 262 | $ 545 | |
Change in cumulative translation adjustment before reclassifications | (25) | (234) | |
Income taxes | 0 | 0 | |
Net current period other comprehensive loss | (25) | (234) | |
Ending accumulated foreign currency translation | 237 | 311 | |
Changes in retirement plans | |||
Beginning accumulated retirement plans benefit cost | (230) | (1,980) | |
Amortization of net actuarial loss | 0 | 33 | |
Income taxes | 0 | 0 | |
Net current period other comprehensive income | 0 | 33 | |
Ending accumulated retirement plans benefit cost | (230) | (1,947) | |
Accumulated other comprehensive income (loss), net of taxes | $ 7 | $ (1,636) | $ 32 |
DEBT (Details)
DEBT (Details) - Canada Emergency Business Account Loan $ in Thousands, $ in Thousands | 3 Months Ended | |||
Dec. 31, 2021CAD ($) | Mar. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | |
Debt Instrument [Line Items] | ||||
Debt face amount | $ 60 | $ 47 | $ 40 | |
Debt instrument, net increase | $ 20 | |||
Debt term | 3 years | |||
Interest rate | 5.00% | 5.00% | ||
Percentage of loan to be repaid for debt forgiveness | 66.60% | |||
Percentage of debt forgiveness | 33.30% | |||
Maximum amount of loan forgiveness | $ 20 |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) - AT THE MARKET OFFERING (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 5 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | Mar. 16, 2021 | |
Sale of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | |
At The Market Offering | |||
Sale of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.50 | ||
Sale of stock, maximum aggregate sales price | $ 25,000 | ||
Common shares sold (in shares) | 0 | 1,167,987 | |
Proceeds from sale of common stock | $ 3,784 | ||
Stock issuance costs, commission and fees | $ 123 |
INFORMATION RELATING TO THE C_2
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - Oil and natural gas - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental disclosures of cash flow information: | ||
Increase (decrease) in capital expenditure accruals related to oil and natural gas exploration and development | $ 1,851 | $ (225) |
Increase (decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations | $ 304 | $ (176) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021USD ($)lot | Dec. 31, 2020USD ($)lot | |
Gros Ventre Partners, LLC | ||
Related party transactions | ||
Profit sharing ratio of variable interest entity | 2.00% | |
Asset management fee, percent fee of cumulative capital contributions | 1.00% | |
Kaupulehu Developments | ||
Related party transactions | ||
Revenues - sale of interest in leasehold land | $ 600 | $ 485 |
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | Increment I | ||
Related party transactions | ||
Revenues - sale of interest in leasehold land | $ 600 | $ 485 |
Number of single family lots sold | lot | 3 | 2 |
Four Pines Operating LLC | Gros Ventre Partners, LLC | ||
Related party transactions | ||
Interest owned by member of Board of Directors | 25.00% | |
KD Acquisition, LLLP | Investment in land development partnerships | ||
Related party transactions | ||
Ownership interest acquired | 19.60% | |
KD Acquisition II, LP | Barnwell Industries Inc | Investment in land development partnerships | ||
Related party transactions | ||
Ownership interest acquired | 10.80% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | |
Feb. 14, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||
Payments to acquire oil and natural gas properties | $ 317 | $ 0 | |
Twining, Alberta, Canada | Barnwell Industries Inc | |||
Subsequent Event [Line Items] | |||
Payments to acquire oil and natural gas properties | $ 317 | ||
Subsequent Event | Twining, Alberta, Canada | Barnwell Industries Inc | |||
Subsequent Event [Line Items] | |||
Payments to acquire oil and natural gas properties | $ 1,250 |