Barnwell Industries Files 2024 10-K

TL;DR

Barnwell Industries filed its 2024 10-K. Full year financials out.

AI Summary

Barnwell Industries Inc. filed its 10-K for the fiscal year ending September 30, 2024. The company, headquartered in Honolulu, HI, operates in the Crude Petroleum & Natural Gas sector. Key financial details and operational segments for the fiscal year are presented in this filing.

Why It Matters

This filing provides investors and stakeholders with a comprehensive overview of Barnwell Industries' financial performance, operational activities, and strategic positioning for the fiscal year 2024.

Risk Assessment

Risk Level: medium — This is a standard annual financial filing providing historical data and forward-looking statements, typical for a publicly traded company.

Key Numbers

• 20240930 — Fiscal Year End (The report covers the period up to this date.)
• 2023-10-01 — Fiscal Year Start (The report covers the period from this date.)

Key Players & Entities

• BARNWELL INDUSTRIES INC (company) — Filer
• 20240930 (date) — Fiscal Year End
• 1100 ALAKEA ST. SUITE 500 HONOLULU HI 96813 (address) — Business and Mail Address
• 808-531-8400 (phone) — Business Phone
• CRUDE PETROLEUM & NATURAL GAS (industry) — Standard Industrial Classification

FAQ

Key Financial Figures

• $0.50 — ange on which registered Common Stock, $0.50 par value BRN NYSE American Securitie
• $1.16 — ts were based on a natural gas price of $1.16 per Mcf and an oil price of $70.78 per
• $70.78 — ce of $1.16 per Mcf and an oil price of $70.78 per Bbl) and costs, and a discount fact
• $1.41 — nit of production: Mcf of natural gas* $1.41 $2.64 $4.63 Bbl of oil** $66.49 $69.77
• $2.64 — production: Mcf of natural gas* $1.41 $2.64 $4.63 Bbl of oil** $66.49 $69.77 $86.7
• $4.63 B — ction: Mcf of natural gas* $1.41 $2.64 $4.63 Bbl of oil** $66.49 $69.77 $86.73 Bbl of
• $66.49 — al gas* $1.41 $2.64 $4.63 Bbl of oil** $66.49 $69.77 $86.73 Bbl of natural gas liqui
• $69.77 — $1.41 $2.64 $4.63 Bbl of oil** $66.49 $69.77 $86.73 Bbl of natural gas liquids** $2
• $86.73 B — $2.64 $4.63 Bbl of oil** $66.49 $69.77 $86.73 Bbl of natural gas liquids** $29.38 $32.2
• $29.38 — 77 $86.73 Bbl of natural gas liquids** $29.38 $32.24 $48.06 Annual average productio
• $32.24 — 73 Bbl of natural gas liquids** $29.38 $32.24 $48.06 Annual average production cost
• $48.06 — of natural gas liquids** $29.38 $32.24 $48.06 Annual average production cost per Boe
• $19.82 — age production cost per Boe produced*** $19.82 $22.10 $23.66 Annual average productio
• $22.10 — duction cost per Boe produced*** $19.82 $22.10 $23.66 Annual average production cost
• $23.66 — cost per Boe produced*** $19.82 $22.10 $23.66 Annual average production cost per Mcf

Filing Documents

• brn-20240930.htm (10-K) — 2580KB
• exhibitno19193024.htm (EX-19.1) — 28KB
• exhibitno2193024.htm (EX-21) — 7KB
• exhibitno23193024.htm (EX-23.1) — 4KB
• exhibitno23293024.htm (EX-23.2) — 7KB
• exhibitno23393024.htm (EX-23.3) — 4KB
• exhibitno31193024.htm (EX-31.1) — 14KB
• exhibitno31293024.htm (EX-31.2) — 14KB
• exhibitno3293024.htm (EX-32) — 9KB
• exhibitno99193024.htm (EX-99.1) — 23KB
• exhibitno99293024.htm (EX-99.2) — 121KB
• image_0.jpg (GRAPHIC) — 95KB
• image_0a.jpg (GRAPHIC) — 4KB
• image_1.jpg (GRAPHIC) — 79KB
• image_1a.jpg (GRAPHIC) — 6KB
• insiteimage1a02a.jpg (GRAPHIC) — 75KB
• 0000010048-24-000020.txt ( ) — 15323KB
• brn-20240930.xsd (EX-101.SCH) — 93KB
• brn-20240930_cal.xml (EX-101.CAL) — 140KB
• brn-20240930_def.xml (EX-101.DEF) — 460KB
• brn-20240930_lab.xml (EX-101.LAB) — 1080KB
• brn-20240930_pre.xml (EX-101.PRE) — 820KB
• brn-20240930_htm.xml (XML) — 2744KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 19 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31 Item 2.

Properties

Properties 32 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mine Safety Disclosures 32 PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. [Reserved] 34 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 112 Item 9A.

Controls and Procedures

Controls and Procedures 112 Item 9B. Other Information 113 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 113 PART III Item 10. Directors, Executive Officers and Corporate Governance 114 Item 11.

Executive Compensation

Executive Compensation 114 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 114 Item 13. Certain Relationships and Related Transactions, and Director Independence 115 Item 14. Principal Accounting Fees and Services 115 PART IV Item 15. Exhibits, Financial Statement Schedules 116

Signatures

Signatures 119 Index to Exhibits 121 2 GLOSSARY OF TERMS Unless otherwise indicated, all references to "dollars" in this Form 10-K are to U.S. dollars. Defined below are certain terms used in this Form 10-K: Terms Definitions AER - Alberta Energy Regulator ARO - Asset retirement obligation ASC - Accounting Standards Codification ASU - Accounting Standards Update Barnwell of Canada - Barnwell of Canada, Limited Bbl(s) - stock tank barrel(s) of oil equivalent to 42 U.S. gallons Boe - barrel of oil equivalent at the rate of 6 Mcf per Bbl of oil or NGL Consolidated Balance Sheets - The consolidated balance sheets of Barnwell Industries, Inc. and its subsidiaries. FASB - Financial Accounting Standards Board GAAP - U.S. generally accepted accounting principles Gross - Total number of acres or wells in which Barnwell owns an interest; includes interests owned of record by Barnwell and, in addition, the portion(s) owned by others; for example, a 50% interest in a 320 acre lease represents 320 gross acres and a 50% interest in a well represents 1 gross well. In the context of production volumes, gross represents amounts before deduction of the royalty share due others. InSite - InSite Petroleum Consultants Ltd. KD I - KD Acquisition, LLLP, formerly known as WB KD Acquisition, LLC KD II - KD Acquisition II, LP, formerly known as WB KD Acquisition, II, LLC KD Development KD Development, LLC KD Kona - KD Kona 2013 LLLP KKM Makai - KKM Makai, LLLP Kukio Resort Land Development Partnerships - The following partnerships in which Barnwell owns non-controlling interest: KD Kukio Resorts, LLLP ("KD Kukio Resorts") KD Maniniowali, LLLP ("KD Maniniowali") KD Kaupulehu, LLLP, which consists of KD I and KD II ("KDK") LCA - Licensee Capability Assessment LGX - LGX Oil & Gas Ltd. MBbls - thousands of barrels of oil Mcf - one thousand cubic feet of natural gas at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit Mcfe - Mcf equivalent a

BUSINESS

ITEM 1. BUSINESS Overview Barnwell was incorporated in Delaware in 1956 and fiscal 2024 represented Barnwell's 68th year of operations. Barnwell operates in the following three principal business segments: Oil and Natural Gas Segment - Barnwell engages in oil and natural gas development, production, acquisitions and sales in Canada and in the U.S. states of Oklahoma and Texas. Land Investment Segment - Barnwell owns land interests in Hawaii. Contract Drilling Segment - Barnwell provides well drilling services and water pumping system installation and repairs in Hawaii. Oil and Natural Gas Segment Overview Barnwell acquires and develops crude oil and natural gas assets in the province of Alberta, Canada via two corporate entities, Barnwell of Canada and Octavian Oil. Barnwell of Canada is a U.S. incorporated company that has been active in Canada for over 50 years, primarily as a non-operator participating in exploration projects operated by others. Octavian Oil is a Canadian company incorporated in 2016 to achieve growth through the acquisition and development of crude oil reserves. Additionally, through its wholly-owned subsidiaries BOK Drilling, LLC ("BOK"), established in February 2021, and Barnwell Texas, LLC ("Barnwell Texas"), established in November 2022, Barnwell is involved in oil and natural gas investments in Oklahoma and Texas, respectively. Strategy Twining represents 70% of Barnwell's fiscal 2024 production (Boe) and consists of assets in the Twining field, in Alberta, Canada. These assets were purchased in August 2018 and were augmented with subsequent smaller acquisitions of partners. These assets are partially operated by the Company and partially operated by Pine Cliff Energy Ltd. The oil wells operated by the Company largely have less than 15% per year decline rates, and due to these lower decline rates, require less capital investment to replace decline. This lower capital requirement along with the fact that the land is large

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View this 10-K filing on SEC EDGAR