Document and Entity Information
| Document and Entity Information - shares | 9 Months Ended | |
| Jun. 30, 2015 | Aug. 10, 2015 | |
| Document and Entity Information | ||
| Entity Registrant Name | BARNWELL INDUSTRIES INC | |
| Entity Central Index Key | 10,048 | |
| Document Type | 10-Q | |
| Document Period End Date | Jun. 30, 2015 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --09-30 | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Smaller Reporting Company | |
| Entity Common Stock, Shares Outstanding | 8,277,160 | |
| Document Fiscal Year Focus | 2,015 | |
| Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
| CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
| Current assets: | ||
| Cash and cash equivalents | $ 8,695 | $ 16,104 |
| Restricted cash | 131 | 0 |
| Accounts and other receivables, net of allowance for doubtful accounts of: $41,000 at June 30, 2015; $34,000 at September 30, 2014 | 2,725 | 2,910 |
| Note receivable | 906 | 0 |
| Prepaid expenses | 246 | 221 |
| Investment held for sale | 0 | 1,139 |
| Real estate held for sale | 5,448 | 5,448 |
| Other current assets | 1,167 | 698 |
| Total current assets | 19,318 | 26,520 |
| Restricted cash, net of current portion | 144 | 0 |
| Investments | 7,344 | 5,900 |
| Property and equipment | 203,842 | 223,023 |
| Accumulated depletion, depreciation, and amortization | (183,429) | (200,673) |
| Property and equipment, net | 20,413 | 22,350 |
| Total assets | 47,219 | 54,770 |
| Current liabilities: | ||
| Accounts payable | 1,897 | 3,453 |
| Accrued operating and other expenses | 2,046 | 2,464 |
| Accrued incentive and other compensation | 638 | 1,085 |
| Current portion of long-term debt | 3,654 | 4,449 |
| Other current liabilities | 2,225 | 3,072 |
| Total current liabilities | 10,460 | 14,523 |
| Long-term debt | 4,800 | 6,650 |
| Liability for retirement benefits | 4,238 | 4,266 |
| Asset retirement obligation | 8,222 | 8,185 |
| Deferred income taxes | 1,939 | 1,201 |
| Total liabilities | $ 29,659 | $ 34,825 |
| Commitments and contingencies (Note 14) | ||
| Equity: | ||
| Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 8,445,060 issued at June 30, 2015 and September 30, 2014 | $ 4,223 | $ 4,223 |
| Additional paid-in capital | 1,330 | 1,315 |
| Retained earnings | 14,691 | 16,204 |
| Accumulated other comprehensive loss, net | (1,226) | (258) |
| Treasury stock, at cost: 167,900 shares at June 30, 2015 and September 30, 2014 | (2,286) | (2,286) |
| Total stockholders' equity | 16,732 | 19,198 |
| Non-controlling interests | 828 | 747 |
| Total equity | 17,560 | 19,945 |
| Total liabilities and equity | $ 47,219 | $ 54,770 |
CONDENSED CONSOLIDATED BALANCE3
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
| Statement of Financial Position [Abstract] | ||
| Accounts receivable, allowance for doubtful accounts | $ 41 | $ 34 |
| Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
| Common stock, authorized shares | 20,000,000 | 20,000,000 |
| Common stock, issued shares | 8,445,060 | 8,445,060 |
| Treasury stock, shares | 167,900 | 167,900 |
CONDENSED CONSOLIDATED STATEMEN
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
| Revenues: | ||||
| Oil and natural gas | $ 2,196 | $ 4,619 | $ 7,260 | $ 16,343 |
| Contract drilling | 1,415 | 1,548 | 3,839 | 4,475 |
| Sale of interest in leasehold land, net | 1,266 | 258 | 3,115 | 378 |
| Gas processing and other | 326 | 385 | 513 | 696 |
| Total revenues | 5,203 | 6,810 | 14,727 | 21,892 |
| Costs and expenses: | ||||
| Oil and natural gas operating | 1,535 | 2,111 | 4,976 | 6,774 |
| Contract drilling operating | 815 | 1,268 | 2,812 | 3,669 |
| General and administrative | 1,891 | 1,844 | 6,270 | 6,049 |
| Depletion, depreciation, and amortization | 801 | 1,296 | 2,648 | 5,364 |
| Interest expense | 76 | 165 | 248 | 520 |
| Total costs and expenses | 5,118 | 6,684 | 16,954 | 22,376 |
| Income (loss) before equity in income (loss) of affiliates and income taxes | 85 | 126 | (2,227) | (484) |
| Equity in income (loss) of affiliates | 988 | (113) | 1,444 | (376) |
| Income (loss) before income taxes | 1,073 | 13 | (783) | (860) |
| Income tax (benefit) provision | (140) | 211 | 160 | 662 |
| Net income (loss) | 1,213 | (198) | (943) | (1,522) |
| Less: Net income (loss) attributable to non-controlling interests | 242 | 18 | 570 | (32) |
| Net income (loss) attributable to Barnwell Industries, Inc. | $ 971 | $ (216) | $ (1,513) | $ (1,490) |
| Basic and diluted net income (loss) per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share) | $ 0.12 | $ (0.03) | $ (0.18) | $ (0.18) |
| Weighted-average number of common shares outstanding: | ||||
| Basic and diluted (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
CONDENSED CONSOLIDATED STATEME5
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
| Statement of Comprehensive Income [Abstract] | ||||
| Net income (loss) | $ 1,213 | $ (198) | $ (943) | $ (1,522) |
| Other comprehensive income (loss): | ||||
| Foreign currency translation adjustments, net of taxes of $0 | 132 | 356 | (1,047) | (1,345) |
| Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 26 | (3) | 79 | 13 |
| Total other comprehensive income (loss) | 158 | 353 | (968) | (1,332) |
| Total comprehensive income (loss) | 1,371 | 155 | (1,911) | (2,854) |
| Less: Comprehensive income (loss) attributable to non-controlling interests | 242 | 18 | 570 | (32) |
| Comprehensive income (loss) attributable to Barnwell Industries, Inc. | $ 1,129 | $ 137 | $ (2,481) | $ (2,822) |
CONDENSED CONSOLIDATED STATEME6
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
| Statement of Comprehensive Income [Abstract] | ||||
| Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
| Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
| Jun. 30, 2015 | Jun. 30, 2014 | |
| Cash flows from operating activities: | ||
| Net income (loss) | $ (943,000) | $ (1,522,000) |
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
| Equity in (income) loss of affiliates | (1,444,000) | 376,000 |
| Depletion, depreciation, and amortization | 2,648,000 | 5,364,000 |
| Gain on sale of contract drilling assets | (272,000) | 0 |
| Foreign exchange loss (gain) | 157,000 | (271,000) |
| Loss on sale of investment | 16,000 | 0 |
| Retirement benefits expense | 305,000 | 184,000 |
| Accretion of asset retirement obligation | 458,000 | 330,000 |
| Deferred income tax expense (benefit) | 796,000 | (225,000) |
| Asset retirement obligation payments | (562,000) | (110,000) |
| Share-based compensation benefit | (69,000) | (209,000) |
| Retirement plan contributions | (254,000) | (354,000) |
| Sale of interest in leasehold land, net | (3,115,000) | (378,000) |
| (Decrease) increase from changes in current assets and liabilities | (3,087,000) | 1,302,000 |
| Net cash (used in) provided by operating activities | (5,366,000) | 4,487,000 |
| Cash flows from investing activities: | ||
| Proceeds from sale of interest in leasehold land, net of fees paid | 3,115,000 | 378,000 |
| Proceeds from sale of contract drilling assets | 368,000 | 0 |
| Proceeds from sale of investment, net of closing costs | 266,000 | 0 |
| Proceeds from sale of oil and natural gas assets | 0 | 8,448,000 |
| Proceeds from gas over bitumen royalty adjustments | 0 | 12,000 |
| Payment to acquire interest in affiliates | 0 | (5,140,000) |
| Payment to acquire oil and natural gas properties | (526,000) | 0 |
| Capital expenditures - oil and natural gas | (878,000) | (3,382,000) |
| Capital expenditures - all other | (197,000) | (42,000) |
| Net cash provided by investing activities | 2,148,000 | 274,000 |
| Cash flows from financing activities: | ||
| Proceeds from long-term debt borrowings | 0 | 5,000,000 |
| Repayments of long-term debt | (2,645,000) | (5,606,000) |
| Increase in restricted cash | (275,000) | (1,892,000) |
| Contributions from non-controlling interests | 120,000 | 170,000 |
| Distributions to non-controlling interests | (609,000) | (13,000) |
| Net cash used in financing activities | (3,409,000) | (2,341,000) |
| Effect of exchange rate changes on cash and cash equivalents | (782,000) | 7,000 |
| Net (decrease) increase in cash and cash equivalents | (7,409,000) | 2,427,000 |
| Cash and cash equivalents at beginning of period | 16,104,000 | 7,828,000 |
| Cash and cash equivalents at end of period | $ 8,695,000 | $ 10,255,000 |
CONDENSED CONSOLIDATED STATEME8
| CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests |
| Balance, beginning of period (in shares) at Sep. 30, 2013 | 8,277,160 | ||||||
| Balance, beginning of period at Sep. 30, 2013 | $ 22,320,000 | $ 4,223,000 | $ 1,289,000 | $ 15,532,000 | $ 2,991,000 | $ (2,286,000) | $ 571,000 |
| Increase (Decrease) in Stockholders' Equity | |||||||
| Contributions from non-controlling interests | 170,000 | 170,000 | |||||
| Distributions to non-controlling interests | (13,000) | (13,000) | |||||
| Net income (loss) | (1,522,000) | (1,490,000) | (32,000) | ||||
| Share-based compensation | 18,000 | 18,000 | |||||
| Foreign currency translation adjustments, net of taxes of $0 | (1,345,000) | (1,345,000) | |||||
| Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 13,000 | 13,000 | |||||
| Balance, end of period (in shares) at Jun. 30, 2014 | 8,277,160 | ||||||
| Balance, end of period at Jun. 30, 2014 | 19,641,000 | $ 4,223,000 | 1,307,000 | 14,042,000 | 1,659,000 | (2,286,000) | 696,000 |
| Balance, beginning of period (in shares) at Mar. 31, 2014 | 8,277,160 | ||||||
| Balance, beginning of period at Mar. 31, 2014 | 19,401,000 | $ 4,223,000 | 1,299,000 | 14,258,000 | 1,306,000 | (2,286,000) | 601,000 |
| Increase (Decrease) in Stockholders' Equity | |||||||
| Contributions from non-controlling interests | 90,000 | 90,000 | |||||
| Distributions to non-controlling interests | (13,000) | (13,000) | |||||
| Net income (loss) | (198,000) | (216,000) | 18,000 | ||||
| Share-based compensation | 8,000 | 8,000 | |||||
| Foreign currency translation adjustments, net of taxes of $0 | 356,000 | 356,000 | |||||
| Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | (3,000) | (3,000) | |||||
| Balance, end of period (in shares) at Jun. 30, 2014 | 8,277,160 | ||||||
| Balance, end of period at Jun. 30, 2014 | 19,641,000 | $ 4,223,000 | 1,307,000 | 14,042,000 | 1,659,000 | (2,286,000) | 696,000 |
| Balance, beginning of period (in shares) at Sep. 30, 2014 | 8,277,160 | ||||||
| Balance, beginning of period at Sep. 30, 2014 | 19,945,000 | $ 4,223,000 | 1,315,000 | 16,204,000 | $ (258,000) | $ (2,286,000) | 747,000 |
| Increase (Decrease) in Stockholders' Equity | |||||||
| Contributions from non-controlling interests | 120,000 | 120,000 | |||||
| Distributions to non-controlling interests | (609,000) | (609,000) | |||||
| Net income (loss) | (943,000) | (1,513,000) | 570,000 | ||||
| Share-based compensation | 15,000 | 15,000 | |||||
| Foreign currency translation adjustments, net of taxes of $0 | (1,047,000) | $ (1,047,000) | |||||
| Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 79,000 | 79,000 | |||||
| Balance, end of period (in shares) at Jun. 30, 2015 | 8,277,160 | ||||||
| Balance, end of period at Jun. 30, 2015 | 17,560,000 | $ 4,223,000 | 1,330,000 | 14,691,000 | (1,226,000) | $ (2,286,000) | 828,000 |
| Balance, beginning of period (in shares) at Mar. 31, 2015 | 8,277,160 | ||||||
| Balance, beginning of period at Mar. 31, 2015 | 16,430,000 | $ 4,223,000 | 1,326,000 | 13,720,000 | (1,384,000) | (2,286,000) | 831,000 |
| Increase (Decrease) in Stockholders' Equity | |||||||
| Contributions from non-controlling interests | 30,000 | 30,000 | |||||
| Distributions to non-controlling interests | (275,000) | (275,000) | |||||
| Net income (loss) | 1,213,000 | 971,000 | 242,000 | ||||
| Share-based compensation | 4,000 | 4,000 | |||||
| Foreign currency translation adjustments, net of taxes of $0 | 132,000 | 132,000 | |||||
| Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 26,000 | 26,000 | |||||
| Balance, end of period (in shares) at Jun. 30, 2015 | 8,277,160 | ||||||
| Balance, end of period at Jun. 30, 2015 | $ 17,560,000 | $ 4,223,000 | $ 1,330,000 | $ 14,691,000 | $ (1,226,000) | $ (2,286,000) | $ 828,000 |
CONDENSED CONSOLIDATED STATEME9
| CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
| Statement of Stockholders' Equity [Abstract] | ||||
| Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
| Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
| Jun. 30, 2015 | |
| 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 two 80%-owned joint ventures (Kaupulehu 2007, LLLP and Kaupulehu Investors, LLC). All significant intercompany accounts and transactions have been eliminated. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities (“VIE”) 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, 2014 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2014 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 June 30, 2015 , results of operations, comprehensive income (loss), and equity for the three and nine months ended June 30, 2015 and 2014 , and cash flows for the nine months ended June 30, 2015 and 2014 , have been made. The results of operations for the period ended June 30, 2015 are not necessarily indicative of the operating results for the full year. Use of Estimates The preparation of the 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 Accounting Policies Other than as set forth below, 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. Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting. Purchase prices are allocated to acquired assets and assumed liabilities based on their estimated fair value at the time of the acquisition. A business combination may result in the recognition of a gain or goodwill based on the fair value of the assets acquired and liabilities assumed at the acquisition date as compared to the fair value of consideration transferred. Note Receivable The note receivable consists of a purchase money mortgage related to the sale of one residential parcel. Barnwell estimates an allowance for this financing receivable based on an evaluation of the credit worthiness of the counterparty and has determined that no allowance was needed at June 30, 2015 . This financing receivable is considered in default if not paid in full on the maturity date at which time the amount in default will accrue interest. Amounts deemed uncollectible will be written off against an established allowance. Recent Accounting Pronouncements In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date.” This update provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. Examples of obligations within this guidance are debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” This update provides guidance on releasing cumulative translation adjustments when a reporting entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, these amendments provide guidance on the release of cumulative translation adjustments in partial sales of equity method investments and in step acquisitions. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In April 2013, the FASB issued ASU No. 2013-07, “Liquidation Basis of Accounting,” which provides guidance on when and how to apply the liquidation basis of accounting and on what to disclose. The update requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent, as defined in the update. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In November 2014, the FASB issued ASU 2014-17, “Pushdown Accounting,” which provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The election to apply pushdown accounting can be made either in the period in which the change of control occurred or in a subsequent period. If the election is made in a subsequent period, it would be considered a change in accounting principle and treated in accordance with Topic 250, “Accounting Changes and Error Corrections.” The Company adopted the provisions of this ASU on November 18, 2014, as the amendments in the update were effective upon issuance. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. |
LIQUIDITY
| LIQUIDITY | 9 Months Ended |
| Jun. 30, 2015 | |
| Risks and Uncertainties [Abstract] | |
| LIQUIDITY | LIQUIDITY As of June 30, 2015 , Barnwell had $8,695,000 in cash and cash equivalents and working capital totaled $8,858,000 . Upon the April 2015 renewal of our secured Canadian credit facility, the borrowing capacity thereunder was reduced from $11,800,000 Canadian dollars to $6,500,000 Canadian dollars, or US $5,211,000 at the June 30, 2015 exchange rate. This reduction in the borrowing capacity is largely due to a tightening credit market for oil and natural gas companies due to the uncertainty of future oil and natural gas prices and significant declines in Royal Bank of Canada’s forecast of oil and natural gas prices and leaves Barnwell with minimal available credit under the facility. In August 2015, Barnwell entered into a purchase and sale agreement with an independent third party to sell the interest in its principal oil and natural gas properties located in the Dunvegan and Belloy areas of Alberta, Canada, for approximately $15,000,000 , which will be adjusted at closing for customary purchase price adjustments in order to, among other things, reflect an economic effective date of April 1, 2015. On closing the buyer will withhold 50 percent of the proceeds in trust for the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes related to the sale and the precise timing for the release of these funds cannot be determined. The sale of these interests is expected to close in the fourth quarter of fiscal 2015, subject to customary closing conditions. However, there can be no assurance that all of the conditions to closing the sale will be satisfied. Barnwell will be required to use a portion of the proceeds received upon closing for Canadian income tax payments and repayment of most or all of the $4,800,000 of the Canadian credit facility currently outstanding as there will be a significant reduction of the borrowing capacity as a result of the sale. See Note 17 for additional details. Because of the combined impact on our oil and natural gas segment of declines in oil and natural gas prices and declines in production due to oil and natural gas property sales, which will further be reduced after the sale of Dunvegan and Belloy, Barnwell estimates that it will be heavily reliant upon land investment segment proceeds from percentage of sales payments and any future distributions from investee partnerships in order to provide sufficient liquidity to fund our operations in the near term. Although there has been a recent increase in land investment segment proceeds, there can be no assurance that this trend will continue or that the amount of future land investment segment proceeds will provide the liquidity needed. If the sale of Dunvegan and Belloy does not close as expected and if oil and natural gas, land investment and residential real estate segment proceeds are not sufficient and Barnwell’s Canadian revolving credit facility is further reduced below the level of borrowings under the facility upon the April 2016 review there will be a material adverse effect on our operations, liquidity, cash flows and financial condition, and the Company will need to obtain alternative terms or sources of financing or liquidate investments and/or operating assets to make any required cash outflows. Our liquidity issues may force us to curtail existing operations, reduce or delay capital expenditures, or sell assets on less favorable terms. There can be no assurance the Company will be able to secure the sale of any of its oil and natural gas properties or realize enough proceeds from such sales to fund its operations, or to otherwise resolve its liquidity issues. |
EARNINGS (LOSS) PER COMMON SHAR
| EARNINGS (LOSS) PER COMMON SHARE | 9 Months Ended |
| Jun. 30, 2015 | |
| Earnings Per Share [Abstract] | |
| EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) 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 (loss) per share if their effect is anti-dilutive. Options to purchase 621,250 and 837,250 shares of common stock were excluded from the computation of diluted shares for the three and nine months ended June 30, 2015 and 2014 , respectively, as their inclusion would have been antidilutive. Reconciliations between net earnings (loss) attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations are detailed in the following tables: Three months ended June 30, 2015 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 971,000 8,277,160 $ 0.12 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 971,000 8,277,160 $ 0.12 Nine months ended June 30, 2015 Net Loss Shares Per-Share Basic net loss per share $ (1,513,000 ) 8,277,160 $ (0.18 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,513,000 ) 8,277,160 $ (0.18 ) Three months ended June 30, 2014 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (216,000 ) 8,277,160 $ (0.03 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (216,000 ) 8,277,160 $ (0.03 ) Nine months ended June 30, 2014 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (1,490,000 ) 8,277,160 $ (0.18 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,490,000 ) 8,277,160 $ (0.18 ) |
NOTE RECEIVABLE
| NOTE RECEIVABLE | 9 Months Ended |
| Jun. 30, 2015 | |
| Receivables [Abstract] | |
| NOTE RECEIVABLE | NOTE RECEIVABLE In October 2014, Barnwell sold one residential parcel for $1,250,000 and received a down payment of $343,000 and a purchase money mortgage from the buyer for the remainder of the sales price. The note was due 270 days from the closing date and Barnwell collected the balance in July 2015. The note was non-interest bearing and was accordingly recorded at a discount using an interest rate based on market rates for similar instruments. See Note 6 for additional information regarding the sale of the residential parcel. |
REAL ESTATE HELD FOR SALE
| REAL ESTATE HELD FOR SALE | 9 Months Ended |
| Jun. 30, 2015 | |
| Real Estate [Abstract] | |
| REAL ESTATE HELD FOR SALE | REAL ESTATE HELD FOR SALE Kaupulehu 2007, LLLP (“Kaupulehu 2007”) currently owns one luxury residence that is available for sale in the Lot 4A Increment I area located in the North Kona District of the island of Hawaii, north of Hualalai Resort at Historic Ka`upulehu, between the Queen Kaahumanu Highway and the Pacific Ocean. |
INVESTMENTS
| INVESTMENTS | 9 Months Ended |
| Jun. 30, 2015 | |
| Investments, All Other Investments [Abstract] | |
| INVESTMENTS | INVESTMENTS A summary of Barnwell’s investments is as follows: June 30, September 30, Investment in residential parcel $ 1,192,000 $ 1,192,000 Investment in Kukio Resort land development partnerships 6,102,000 4,658,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 7,344,000 $ 5,900,000 Investment in residential parcels At June 30, 2015 , Kaupulehu 2007 owned one residential parcel in the Lot 4A Increment I area located in the North Kona District of the island of Hawaii, north of Hualalai Resort at Historic Ka`upulehu, between the Queen Kaahumanu Highway and the Pacific Ocean. A second residential parcel, which was included in investment held for sale at September 30, 2014 , was sold in October 2014 for $1,250,000 for a nominal loss which is included in general and administrative expenses in the Condensed Consolidated Statements of Operations. 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 and KKM Makai, LLLP, and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP for $5,140,000 . These entities 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. KD Kaupulehu, LLLP, which is comprised of KD Acquisition, LLLP (“KD I”) and KD Acquisition II, LLLP (“KD II”), is the developer of Kaupulehu Lot 4A Increments I and II, the area in which Barnwell has interests in percentage of sales payments. Barnwell’s investment in these entities is accounted for using the equity method of accounting. The limited liability limited partnership agreements provide for a priority return of Barnwell’s investment prior to profit distributions. Net profits, losses and cash flows of the partnerships are allocated to Barnwell and the other partners at varying percentages based on whether the initial and any additional capital contributions plus any preferred returns due to contributing partners have been repaid to the investors. Barnwell’s share of the income of its equity affiliates was $988,000 and $1,444,000 for the three and nine months ended June 30, 2015 , respectively, and the share of the loss of its equity affiliates was $113,000 and $376,000 for the three and nine months ended June 30, 2014 , respectively. The equity in the underlying net assets of the Kukio Resort land development partnerships exceeds the carrying value of the investment in affiliates by approximately $398,000 as of June 30, 2015 , which is attributable to differences in the value of capitalized development costs and a note receivable. The basis difference for the capitalized development costs will be recognized as the partnerships sell lots and recognize the associated costs. The basis difference for the note receivable will be recognized as the partnerships sell memberships for the Kukio Golf and Beach Club for which the receivable relates. The basis difference adjustment for both the three and nine months ended June 30, 2015 was a $74,000 increase in equity in income of affiliates, and the basis difference adjustment for the three and nine months ended June 30, 2014 was not material. Barnwell, as well as KD I, KD II and certain other owners of the partnerships, have jointly and severally executed a surety indemnification agreement. Bonds issued by the surety at June 30, 2015 totaled approximately $4,144,000 and relate to certain construction contracts of KD I. If any such performance bonds are called, we may be obligated to reimburse the issuer of the performance bond as Barnwell, KD I and certain other partners are jointly and severally liable, however we believe that it is remote that a material amount of any currently outstanding performance bonds will be called. Performance bonds do not have stated expiration dates. Rather, the performance bonds are released as the underlying performance is completed. As of June 30, 2015 , Barnwell’s maximum loss exposure as a result of its investment in the Kukio Resort land development partnerships was approximately $10,246,000 , consisting of the carrying value of the investment of $6,102,000 and $4,144,000 from the surety indemnification agreement of which we are jointly and severally liable. Summarized financial information for the Kukio Resort land development partnerships is as follows: Three months ended June 30, 2015 Three months ended June 30, 2014 Revenue $ 12,078,000 $ 2,228,000 Gross profit $ 5,285,000 $ 778,000 Net earnings (loss) $ 4,215,000 $ (298,000 ) Nine months ended June 30, 2015 November 27, 2013 - Revenue $ 22,785,000 $ 3,850,000 Gross profit $ 9,694,000 $ 1,541,000 Net earnings (loss) $ 6,779,000 $ (1,107,000 ) Percentage of sales payments 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 approximately 870 acres of the Kaupulehu Lot 4A area by KD I and KD II in two increments (“Increment I” and “Increment II”) (see Note 16). The following table summarizes the Increment I percentage of sales payment revenues received from KD I. Three months ended Nine months ended 2015 2014 2015 2014 Sale of interest in leasehold land: Proceeds $ 1,473,000 $ 300,000 $ 3,623,000 $ 440,000 Fees (207,000 ) (42,000 ) (508,000 ) (62,000 ) Revenues – sale of interest in leasehold land, net $ 1,266,000 $ 258,000 $ 3,115,000 $ 378,000 Investment in leasehold land interest - Lot 4C Kaupulehu Developments holds an interest in an area of approximately 1,000 acres of vacant leasehold land zoned conservation located adjacent to Lot 4A. The lease terminates in December 2025. |
OIL AND NATURAL GAS PROPERTIES
| OIL AND NATURAL GAS PROPERTIES | 9 Months Ended |
| Jun. 30, 2015 | |
| Extractive Industries [Abstract] | |
| ACQUISITION OF OIL AND NATURAL GAS PROPERTIES | OIL AND NATURAL GAS PROPERTIES Acquisition On November 13, 2014, Barnwell completed the acquisition of additional non-operated working interests in oil and natural gas properties located in the Progress area of Alberta, Canada for cash consideration. The sales price per the agreement was adjusted for customary purchase price adjustments to $526,000 in order to, among other things, reflect an economic effective date of July 1, 2014. The results of operations for the Progress acquisition have been included in the consolidated financial statements from the closing date. Pro forma information is not presented as the pro forma results would not be materially different from the information presented in the Condensed Consolidated Statements of Operations. The Progress acquisition was accounted for under the acquisition method of accounting, and as such, Barnwell estimated the fair value of the acquired property as of the November 13, 2014 acquisition date. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed in the transaction as of the acquisition date. See Note 13 for further information regarding the fair value measurement inputs. Property and equipment $ 751,000 Asset retirement obligation (225,000 ) Net identifiable assets acquired $ 526,000 |
LONG-TERM DEBT
| LONG-TERM DEBT | 9 Months Ended |
| Jun. 30, 2015 | |
| Long-term Debt, Unclassified [Abstract] | |
| LONG-TERM DEBT | LONG-TERM DEBT A summary of Barnwell’s long-term debt is as follows: June 30, September 30, Canadian revolving credit facility $ 4,800,000 $ 7,000,000 Real estate loan 3,654,000 4,099,000 8,454,000 11,099,000 Less: current portion (3,654,000 ) (4,449,000 ) Total long-term debt $ 4,800,000 $ 6,650,000 Canadian revolving credit facility On April 10, 2015, Barnwell’s credit facility at Royal Bank of Canada was amended and renewed. The amendment, among other things, provides for a decrease in the aggregate principal amount of the revolving credit facility to $6,500,000 Canadian dollars, or US $5,211,000 at the June 30, 2015 exchange rate, from $11,800,000 Canadian dollars. This reduction in the borrowing capacity is largely due to a tightening credit market for oil and natural gas companies due to the uncertainty of future oil and natural gas prices and significant declines in Royal Bank of Canada’s forecast of oil and natural gas prices and leaves Barnwell with minimal available credit under the facility. The other material terms of the credit facility remain unchanged. Borrowings under this facility were US $4,800,000 and issued letters of credit were $36,000 at June 30, 2015 . The interest rate on the facility at June 30, 2015 was 2.69% . The obligations under the credit facility are secured by substantially all of the assets of Barnwell of Canada, Limited. The credit facility subjects Barnwell to certain customary affirmative covenants, including the delivery of financial statements and annual appraisals of certain oil and gas properties. In addition, the credit facility contains customary negative covenants, including, but not limited to, restrictions on the ability of Barnwell to, among other things, merge with or acquire other entities, incur new liens, incur additional indebtedness, or sell certain oil and gas properties or petroleum and natural gas reserves (other than the sale of production from such oil and gas properties in the ordinary course of business). The credit facility also contains provisions concerning customary events of default, including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, and certain events of bankruptcy and insolvency. If an event of default occurs and is continuing, amounts due under the credit facility may be accelerated, and the rights and remedies of Royal Bank of Canada under the credit facility may be exercised, including rights with respect to the collateral securing Barnwell’s obligations thereunder. Barnwell repaid $200,000 and $2,200,000 of the credit facility during the three and nine months ended June 30, 2015 , respectively. During the three and nine months ended June 30, 2015 , Barnwell realized foreign currency transaction losses of $11,000 and $157,000 , respectively, as a result of the repayment of U.S. dollar denominated debt using Canadian dollars. The renewed facility is available in U.S. dollars at the London Interbank Offer Rate plus 2.50% , at Royal Bank of Canada’s U.S. base rate plus 1.50% , or in Canadian dollars at Royal Bank of Canada’s prime rate plus 1.50% . A standby fee of 0.625% per annum is charged on the unused facility balance. Under the financing agreement with Royal Bank of Canada, the facility is reviewed annually, with the next review planned for April 2016. Subject to that review, the facility may be renewed for one year with no required debt repayments or converted to a two-year term loan by the bank. If the facility is converted to a two -year term loan, Barnwell has agreed to the following repayment schedule of the then outstanding loan balance: first year of the term period - 20% ( 5% per quarter), and in the second year of the term period - 80% ( 5% per quarter for the first three quarters and 65% in the final quarter). Based on the terms of this agreement, if Royal Bank of Canada were to convert the facility to a two-year term loan upon its next review in April 2016, Barnwell would be obligated to make quarterly principal and interest repayments beginning in July 2016. As no debt repayments will be required on or before June 30, 2016, the entire outstanding loan balance at June 30, 2015 is classified as long-term debt. Real estate loan Barnwell, together with its real estate joint venture, Kaupulehu 2007, has a non-revolving real estate loan with a Hawaii bank. In January 2015, the loan was amended from monthly principal and interest payments to monthly interest-only payments effective February 1, 2015. All other terms of the loan remained unchanged. The principal balance and any accrued interest will be due and payable on April 1, 2018. The interest rate adjusts each April for the remaining term of the loan to the lender’s then prevailing interest rate for similarly priced commercial mortgage loans or a floating rate equal to the lender’s base rate. The interest rate at June 30, 2015 was 3.59% . The loan is collateralized by, among other things, a first mortgage on Kaupulehu 2007’s lots together with all improvements thereon. Kaupulehu 2007 will be required to make a principal payment upon the sale of the house or the residential parcel in the amount of the net sales proceeds of the house or residential parcel; the loan agreement defines net sales proceeds as the gross sales proceeds for the house or residential parcel, less reasonable commissions and normal closing costs. As a result of the sale of one of the residential parcels in October 2014, Kaupulehu 2007 repaid $266,000 of the real estate loan, as required from the net proceeds of the sale. The remaining $907,000 due from the buyer was recorded as a purchase money mortgage, which was collected by Barnwell in July 2015. This amount is currently being held in an agency account by the real estate loan lender until negotiations regarding the required repayment amount are complete. The loan agreement contains provisions requiring us to maintain compliance with certain covenants including a consolidated debt service coverage ratio and a consolidated total liabilities to tangible net worth ratio. However, in June 2015, the bank suspended these financial covenants in exchange for an interest reserve account of $275,000 , which is included in restricted cash on the Condensed Consolidated Balance Sheets at June 30, 2015 . These financial covenants will remain suspended as long as there are sufficient funds in the interest reserve account. The home collateralizing the loan is currently available for sale; therefore, the entire balance outstanding at June 30, 2015 under the term loan has been classified as a current liability. |
RETIREMENT PLANS
| RETIREMENT PLANS | 9 Months Ended |
| Jun. 30, 2015 | |
| Compensation and Retirement Disclosure [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 Employee 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 a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees. The following table details the components of net periodic benefit cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 64,000 $ — $ 15,000 $ 12,000 $ — $ 3,000 Interest cost 89,000 73,000 19,000 17,000 13,000 13,000 Expected return on plan assets (125,000 ) (113,000 ) — — — — Amortization of prior service cost (credit) 1,000 1,000 (1,000 ) (1,000 ) — 3,000 Amortization of net actuarial loss (gain) 21,000 (3,000 ) 6,000 2,000 (1,000 ) (5,000 ) Net periodic benefit cost $ 50,000 $ (42,000 ) $ 39,000 $ 30,000 $ 12,000 $ 14,000 Pension Plan SERP Postretirement Medical Nine months ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 192,000 $ 118,000 $ 46,000 $ 35,000 $ — $ 9,000 Interest cost 267,000 242,000 57,000 50,000 39,000 40,000 Expected return on plan assets (375,000 ) (323,000 ) — — — — Amortization of prior service cost (credit) 4,000 4,000 (3,000 ) (4,000 ) — 9,000 Amortization of net actuarial loss (gain) 64,000 15,000 18,000 4,000 (4,000 ) (15,000 ) Net periodic benefit cost $ 152,000 $ 56,000 $ 118,000 $ 85,000 $ 35,000 $ 43,000 Barnwell contributed $250,000 to the Pension Plan during the nine months ended June 30, 2015 and does not expect to make any further contributions during the remainder of fiscal 2015. The SERP and Postretirement Medical plans are unfunded, and Barnwell funds benefits when payments are made. Barnwell does not expect to make any benefit payments under the Postretirement Medical plan during fiscal 2015 and expected payments under the SERP for fiscal 2015 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 | 9 Months Ended |
| Jun. 30, 2015 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests, are as follows: Three months ended Nine months ended 2015 2014 2015 2014 United States $ 1,684,000 $ (710,000 ) $ 1,269,000 $ (2,949,000 ) Canada (853,000 ) 705,000 (2,622,000 ) 2,121,000 $ 831,000 $ (5,000 ) $ (1,353,000 ) $ (828,000 ) The components of the income tax provision (benefit) are as follows: Three months ended Nine months ended 2015 2014 2015 2014 Current $ (289,000 ) $ 344,000 $ (636,000 ) $ 887,000 Deferred 149,000 (133,000 ) 796,000 (225,000 ) $ (140,000 ) $ 211,000 $ 160,000 $ 662,000 As a result of significant declines in prices, funds available for oil and natural gas capital expenditures are projected to be minimal in the near term and thus Barnwell's ability to replace production and abate declining reserves has been significantly restricted as compared to the recent past. Accordingly, Barnwell has determined that it is not more likely than not that all of our oil and natural gas deferred tax assets under Canadian tax law are realizable. Included in the deferred income tax expense for the three and nine months ended June 30, 2015 was $78,000 and $863,000 , respectively, for the valuation allowance necessary for the portion of Canadian tax law deferred tax assets that may not be realizable. There was no such valuation allowance recorded in the same periods of the prior year. On June 29, 2015, the Canadian province of Alberta enacted legislation that increased the provincial corporate tax rate from 10% to 12% effective July 1, 2015, bringing the total Canadian statutory tax rate applicable to our business from 28.75% to 30.65% . The impact of the enactment of $92,000 was recorded as a charge to income taxes during the quarter ended June 30, 2015 . 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, Canadian income taxes are not estimated to have a future benefit as foreign tax credits or deductions for U.S. tax purposes, and U.S. consolidated net operating losses and other deferred tax assets under U.S. tax law are not estimated to have any future U.S. tax benefit. In addition, consolidated taxes in the current year periods include the aforementioned valuation allowance for a portion of deferred tax assets under Canadian tax law. |
SEGMENT INFORMATION
| SEGMENT INFORMATION | 9 Months Ended |
| Jun. 30, 2015 | |
| Segment Reporting [Abstract] | |
| SEGMENT INFORMATION | SEGMENT INFORMATION Barnwell operates the following segments: 1) exploring for, developing, acquiring, producing and selling oil and natural gas in Canada (oil and natural gas); 2) investing in land interests in Hawaii (land investment); 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling); and 4) developing homes for sale in Hawaii (residential real estate). 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 Nine months ended 2015 2014 2015 2014 Revenues: Oil and natural gas $ 2,196,000 $ 4,619,000 $ 7,260,000 $ 16,343,000 Land investment 1,266,000 258,000 3,115,000 378,000 Contract drilling 1,415,000 1,548,000 3,839,000 4,475,000 Other 307,000 377,000 461,000 678,000 Total before interest income 5,184,000 6,802,000 14,675,000 21,874,000 Interest income 19,000 8,000 52,000 18,000 Total revenues $ 5,203,000 $ 6,810,000 $ 14,727,000 $ 21,892,000 Depletion, depreciation, and amortization: Oil and natural gas $ 707,000 $ 1,187,000 $ 2,362,000 $ 5,043,000 Contract drilling 66,000 79,000 207,000 235,000 Other 28,000 30,000 79,000 86,000 Total depletion, depreciation, and amortization $ 801,000 $ 1,296,000 $ 2,648,000 $ 5,364,000 Operating profit (before general and administrative expenses): Oil and natural gas $ (46,000 ) $ 1,321,000 $ (78,000 ) $ 4,526,000 Land investment 1,266,000 258,000 3,115,000 378,000 Contract drilling 534,000 201,000 820,000 571,000 Other 279,000 347,000 382,000 592,000 Total operating profit 2,033,000 2,127,000 4,239,000 6,067,000 Equity in income (loss) of affiliates: Land investment 988,000 (113,000 ) 1,444,000 (376,000 ) General and administrative expenses (1,891,000 ) (1,844,000 ) (6,270,000 ) (6,049,000 ) Interest expense (76,000 ) (165,000 ) (248,000 ) (520,000 ) Interest income 19,000 8,000 52,000 18,000 Income (loss) before income taxes $ 1,073,000 $ 13,000 $ (783,000 ) $ (860,000 ) |
ACCUMULATED OTHER COMPREHENSIVE
| ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 9 Months Ended |
| Jun. 30, 2015 | |
| Equity [Abstract] | |
| ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The changes in each component of accumulated other comprehensive (loss) income were as follows: Three months ended Nine months ended 2015 2014 2015 2014 Foreign currency translation: Beginning accumulated foreign currency translation $ 513,000 $ 2,000,000 $ 1,692,000 $ 3,701,000 Change in cumulative translation adjustment before reclassifications 121,000 579,000 (1,204,000 ) (1,074,000 ) Amounts reclassified from accumulated other comprehensive income 11,000 (223,000 ) 157,000 (271,000 ) Income taxes — — — — Net current period other comprehensive income (loss) 132,000 356,000 (1,047,000 ) (1,345,000 ) Ending accumulated foreign currency translation 645,000 2,356,000 645,000 2,356,000 Retirement plans: Beginning accumulated retirement plans benefit cost (1,897,000 ) (694,000 ) (1,950,000 ) (710,000 ) Amortization of net actuarial loss and prior service cost 26,000 (3,000 ) 79,000 13,000 Income taxes — — — — Net current period other comprehensive income (loss) 26,000 (3,000 ) 79,000 13,000 Ending accumulated retirement plans benefit cost (1,871,000 ) (697,000 ) (1,871,000 ) (697,000 ) Accumulated other comprehensive (loss) income, net of taxes $ (1,226,000 ) $ 1,659,000 $ (1,226,000 ) $ 1,659,000 The realized foreign currency transaction loss (gain) related to the repayment of debt was reclassified from accumulated other comprehensive income to general and administrative expenses on the accompanying Condensed Consolidated Statements of Operations. The amortization of accumulated other comprehensive loss components for the retirement plans are included in the computation of net periodic benefit cost which is a component of general and administrative expenses on the accompanying Condensed Consolidated Statements of Operations (see Note 9 for additional details). |
FAIR VALUE MEASUREMENTS
| FAIR VALUE MEASUREMENTS | 9 Months Ended |
| Jun. 30, 2015 | |
| Fair Value Disclosures [Abstract] | |
| FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments. The carrying value of the note receivable approximates fair value as it has been recorded at a discount using an interest rate based on market rates for similar instruments. The carrying value of long-term debt approximates fair value as the terms approximate current market terms for similar debt instruments of comparable risk and maturities. The estimated fair values of oil and natural gas properties and the asset retirement obligation assumed in the acquisition of additional non-operated working interests located in the Progress area of Alberta, Canada, 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. See Note 7 for additional information regarding the Progress acquisition. |
COMMITMENTS AND CONTINGENCIES
| COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
| Jun. 30, 2015 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental Matters In January 2015, there was an oil and salt water spill at one of our operated oil properties in Alberta, Canada. We have estimated that probable environmental remediation costs will be approximately $2,300,000 . Barnwell’s working interest in the well is 58% , and we have recovered substantially all of the monies from the other working interest owners for their share of the costs. Additionally, we have filed a claim under our insurance policy, which has a deductible of approximately $80,000 , and as of June 30, 2015 , we have collected $722,000 in insurance proceeds and have recorded a receivable of $410,000 for the remaining estimated recovery amount. The total estimated net financial impact for Barnwell, which includes the insurance deductible, estimated legal fees and estimated monitoring and other costs, is approximately $221,000 , which has been recorded as a charge to operating results in the nine months ended June 30, 2015 . Liabilities at June 30, 2015 and September 30, 2014 , include environmental remediation costs of $390,000 and $501,000 , respectively, for estimated probable environmental remediation costs for soil contamination from infrastructure issues at the Dunvegan and Wood River properties in which we own a non-operating working interest. The estimated liability is based on authorization for expenditure requests and cost estimates received by Barnwell from the property operators in 2013. Environmental remediation costs for Dunvegan and Wood River have not been discounted and were accrued in “Accrued operating and other expenses” on the Condensed Consolidated Balance Sheets. Because of the inherent uncertainties associated with environmental assessment and remediation activities, future expenses to remediate the currently identified sites, and sites identified in the future, if any, could be incurred. Guarantee See Note 6 for a discussion of Barnwell’s guarantee of the Kukio Resort land development partnership’s performance bonds. |
INFORMATION RELATING TO THE CON
| INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | 9 Months Ended |
| Jun. 30, 2015 | |
| Supplemental Cash Flow Elements [Abstract] | |
| INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS | INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended 2015 2014 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ 235,000 $ 489,000 Income taxes paid $ — $ (103,000 ) Supplemental disclosure of non-cash investing and financing activities: Note receivable for sale of investment $ 907,000 $ — Capital expenditure accruals related to oil and natural gas exploration and development increased $95,000 and decreased $1,329,000 during the nine months ended June 30, 2015 and 2014 , respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $938,000 and $58,000 during the nine months ended June 30, 2015 and 2014 , respectively. |
RELATED PARTY TRANSACTIONS
| RELATED PARTY TRANSACTIONS | 9 Months Ended |
| Jun. 30, 2015 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Kaupulehu Developments is entitled to receive a percentage of the gross receipts from the sales of single-family residential lots in Increment I from KD I, a land development partnership in which Barnwell holds a 19.6% non-controlling ownership interest accounted for under the equity method of investment. The percentage payments are part of a 2004 transaction where Kaupulehu Developments sold its leasehold interest in Increment I, which was prior to Barnwell’s affiliation with KD I which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort land development partnerships. During the nine months ended June 30, 2015 , Barnwell received $3,623,000 in percentage of sales payments from KD I from the sale of six contiguous lots within Phase I of Increment I to a single buyer and ten lots within Phase II of Increment I. During the three months ended June 30, 2014 , Barnwell received $300,000 in percentage of sales payments from KD I from the sale of one lot within Phase II of Increment I. The lot sale during the first quarter of fiscal 2014 occurred prior to our purchase of ownership interests in the Kukio Resort land development partnerships. |
SUBSEQUENT EVENT
| SUBSEQUENT EVENT | 9 Months Ended |
| Jun. 30, 2015 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENT | SUBSEQUENT EVENT In August 2015, Barnwell entered into a purchase and sale agreement with an independent third party to sell the interest in its principal oil and natural gas properties located in the Dunvegan and Belloy areas of Alberta, Canada. The Company's share of the sales price per the agreement is approximately $15,000,000 which will be adjusted at closing for customary purchase price adjustments in order to, among other things, reflect an economic effective date of April 1, 2015. On closing the buyer will withhold 50 percent of the proceeds in trust for the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes related to the sale and the precise timing for the release of these funds cannot be determined. Barnwell will be required to use a portion of the proceeds received upon closing for Canadian income tax payments and repayment of most or all of the $4,800,000 of the Canadian credit facility currently outstanding as there will be a significant reduction of the borrowing capacity as a result of the sale. The sale of these interests is expected to close in the fourth quarter of fiscal 2015, subject to customary closing conditions. However, there can be no assurance that all of the conditions to closing the sale will be satisfied. The difference in the relationship between capitalized costs and proved reserves of Dunvegan and Belloy as compared to that of the retained properties is significant. Accordingly, Barnwell expects to record a gain on the sale of Dunvegan and Belloy in accordance with the guidance in Rule 4-10(c)(6)(i) of Regulation S-X. |
SUMMARY OF SIGNIFICANT ACCOUN27
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
| Jun. 30, 2015 | |
| 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 two 80%-owned joint ventures (Kaupulehu 2007, LLLP and Kaupulehu Investors, LLC). All significant intercompany accounts and transactions have been eliminated. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities (“VIE”) 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, 2014 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2014 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 June 30, 2015 , results of operations, comprehensive income (loss), and equity for the three and nine months ended June 30, 2015 and 2014 , and cash flows for the nine months ended June 30, 2015 and 2014 , have been made. The results of operations for the period ended June 30, 2015 are not necessarily indicative of the operating results for the full year. |
| Use of Estimates | Use of Estimates The preparation of the 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. |
| Acquisitions | Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting. Purchase prices are allocated to acquired assets and assumed liabilities based on their estimated fair value at the time of the acquisition. A business combination may result in the recognition of a gain or goodwill based on the fair value of the assets acquired and liabilities assumed at the acquisition date as compared to the fair value of consideration transferred. |
| Note Receivable | Note Receivable The note receivable consists of a purchase money mortgage related to the sale of one residential parcel. Barnwell estimates an allowance for this financing receivable based on an evaluation of the credit worthiness of the counterparty and has determined that no allowance was needed at June 30, 2015 . This financing receivable is considered in default if not paid in full on the maturity date at which time the amount in default will accrue interest. Amounts deemed uncollectible will be written off against an established allowance. |
| Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date.” This update provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. Examples of obligations within this guidance are debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” This update provides guidance on releasing cumulative translation adjustments when a reporting entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, these amendments provide guidance on the release of cumulative translation adjustments in partial sales of equity method investments and in step acquisitions. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In April 2013, the FASB issued ASU No. 2013-07, “Liquidation Basis of Accounting,” which provides guidance on when and how to apply the liquidation basis of accounting and on what to disclose. The update requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent, as defined in the update. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. The Company adopted the provisions of this ASU effective October 1, 2014. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In November 2014, the FASB issued ASU 2014-17, “Pushdown Accounting,” which provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The election to apply pushdown accounting can be made either in the period in which the change of control occurred or in a subsequent period. If the election is made in a subsequent period, it would be considered a change in accounting principle and treated in accordance with Topic 250, “Accounting Changes and Error Corrections.” The Company adopted the provisions of this ASU on November 18, 2014, as the amendments in the update were effective upon issuance. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. |
EARNINGS (LOSS) PER COMMON SH28
| EARNINGS (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Earnings Per Share [Abstract] | |
| Reconciliations between net income (loss) attributable to the entity's stockholders and common shares outstanding of the basic and diluted net income (loss) per share computations | Reconciliations between net earnings (loss) attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations are detailed in the following tables: Three months ended June 30, 2015 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 971,000 8,277,160 $ 0.12 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 971,000 8,277,160 $ 0.12 Nine months ended June 30, 2015 Net Loss Shares Per-Share Basic net loss per share $ (1,513,000 ) 8,277,160 $ (0.18 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,513,000 ) 8,277,160 $ (0.18 ) Three months ended June 30, 2014 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (216,000 ) 8,277,160 $ (0.03 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (216,000 ) 8,277,160 $ (0.03 ) Nine months ended June 30, 2014 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (1,490,000 ) 8,277,160 $ (0.18 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,490,000 ) 8,277,160 $ (0.18 ) |
INVESTMENTS (Tables)
| INVESTMENTS (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Investments, All Other Investments [Abstract] | |
| Summary of investments | A summary of Barnwell’s investments is as follows: June 30, September 30, Investment in residential parcel $ 1,192,000 $ 1,192,000 Investment in Kukio Resort land development partnerships 6,102,000 4,658,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 7,344,000 $ 5,900,000 |
| Summarized financial information for the land development partnerships | Summarized financial information for the Kukio Resort land development partnerships is as follows: Three months ended June 30, 2015 Three months ended June 30, 2014 Revenue $ 12,078,000 $ 2,228,000 Gross profit $ 5,285,000 $ 778,000 Net earnings (loss) $ 4,215,000 $ (298,000 ) Nine months ended June 30, 2015 November 27, 2013 - Revenue $ 22,785,000 $ 3,850,000 Gross profit $ 9,694,000 $ 1,541,000 Net earnings (loss) $ 6,779,000 $ (1,107,000 ) |
| Kaupulehu Developments | |
| INVESTMENTS | |
| Summary of Increment I percentage of sales payment revenues received | The following table summarizes the Increment I percentage of sales payment revenues received from KD I. Three months ended Nine months ended 2015 2014 2015 2014 Sale of interest in leasehold land: Proceeds $ 1,473,000 $ 300,000 $ 3,623,000 $ 440,000 Fees (207,000 ) (42,000 ) (508,000 ) (62,000 ) Revenues – sale of interest in leasehold land, net $ 1,266,000 $ 258,000 $ 3,115,000 $ 378,000 |
OIL AND NATURAL GAS PROPERTIES
| OIL AND NATURAL GAS PROPERTIES (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Extractive Industries [Abstract] | |
| Summary of allocation of purchase price to the assets acquired and liabilities assumed | The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed in the transaction as of the acquisition date. See Note 13 for further information regarding the fair value measurement inputs. Property and equipment $ 751,000 Asset retirement obligation (225,000 ) Net identifiable assets acquired $ 526,000 |
LONG-TERM DEBT (Tables)
| LONG-TERM DEBT (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Long-term Debt, Unclassified [Abstract] | |
| Schedule of long-term debt | A summary of Barnwell’s long-term debt is as follows: June 30, September 30, Canadian revolving credit facility $ 4,800,000 $ 7,000,000 Real estate loan 3,654,000 4,099,000 8,454,000 11,099,000 Less: current portion (3,654,000 ) (4,449,000 ) Total long-term debt $ 4,800,000 $ 6,650,000 |
RETIREMENT PLANS (Tables)
| RETIREMENT PLANS (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Compensation and Retirement Disclosure [Abstract] | |
| Schedule of components of net periodic benefit cost | The following table details the components of net periodic benefit cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 64,000 $ — $ 15,000 $ 12,000 $ — $ 3,000 Interest cost 89,000 73,000 19,000 17,000 13,000 13,000 Expected return on plan assets (125,000 ) (113,000 ) — — — — Amortization of prior service cost (credit) 1,000 1,000 (1,000 ) (1,000 ) — 3,000 Amortization of net actuarial loss (gain) 21,000 (3,000 ) 6,000 2,000 (1,000 ) (5,000 ) Net periodic benefit cost $ 50,000 $ (42,000 ) $ 39,000 $ 30,000 $ 12,000 $ 14,000 Pension Plan SERP Postretirement Medical Nine months ended June 30, 2015 2014 2015 2014 2015 2014 Service cost $ 192,000 $ 118,000 $ 46,000 $ 35,000 $ — $ 9,000 Interest cost 267,000 242,000 57,000 50,000 39,000 40,000 Expected return on plan assets (375,000 ) (323,000 ) — — — — Amortization of prior service cost (credit) 4,000 4,000 (3,000 ) (4,000 ) — 9,000 Amortization of net actuarial loss (gain) 64,000 15,000 18,000 4,000 (4,000 ) (15,000 ) Net periodic benefit cost $ 152,000 $ 56,000 $ 118,000 $ 85,000 $ 35,000 $ 43,000 |
INCOME TAXES (Tables)
| INCOME TAXES (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Income Tax Disclosure [Abstract] | |
| Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | The components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests, are as follows: Three months ended Nine months ended 2015 2014 2015 2014 United States $ 1,684,000 $ (710,000 ) $ 1,269,000 $ (2,949,000 ) Canada (853,000 ) 705,000 (2,622,000 ) 2,121,000 $ 831,000 $ (5,000 ) $ (1,353,000 ) $ (828,000 ) |
| Schedule of components of the income tax provision (benefit) | The components of the income tax provision (benefit) are as follows: Three months ended Nine months ended 2015 2014 2015 2014 Current $ (289,000 ) $ 344,000 $ (636,000 ) $ 887,000 Deferred 149,000 (133,000 ) 796,000 (225,000 ) $ (140,000 ) $ 211,000 $ 160,000 $ 662,000 |
SEGMENT INFORMATION (Tables)
| SEGMENT INFORMATION (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| 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 Nine months ended 2015 2014 2015 2014 Revenues: Oil and natural gas $ 2,196,000 $ 4,619,000 $ 7,260,000 $ 16,343,000 Land investment 1,266,000 258,000 3,115,000 378,000 Contract drilling 1,415,000 1,548,000 3,839,000 4,475,000 Other 307,000 377,000 461,000 678,000 Total before interest income 5,184,000 6,802,000 14,675,000 21,874,000 Interest income 19,000 8,000 52,000 18,000 Total revenues $ 5,203,000 $ 6,810,000 $ 14,727,000 $ 21,892,000 Depletion, depreciation, and amortization: Oil and natural gas $ 707,000 $ 1,187,000 $ 2,362,000 $ 5,043,000 Contract drilling 66,000 79,000 207,000 235,000 Other 28,000 30,000 79,000 86,000 Total depletion, depreciation, and amortization $ 801,000 $ 1,296,000 $ 2,648,000 $ 5,364,000 Operating profit (before general and administrative expenses): Oil and natural gas $ (46,000 ) $ 1,321,000 $ (78,000 ) $ 4,526,000 Land investment 1,266,000 258,000 3,115,000 378,000 Contract drilling 534,000 201,000 820,000 571,000 Other 279,000 347,000 382,000 592,000 Total operating profit 2,033,000 2,127,000 4,239,000 6,067,000 Equity in income (loss) of affiliates: Land investment 988,000 (113,000 ) 1,444,000 (376,000 ) General and administrative expenses (1,891,000 ) (1,844,000 ) (6,270,000 ) (6,049,000 ) Interest expense (76,000 ) (165,000 ) (248,000 ) (520,000 ) Interest income 19,000 8,000 52,000 18,000 Income (loss) before income taxes $ 1,073,000 $ 13,000 $ (783,000 ) $ (860,000 ) |
ACCUMULATED OTHER COMPREHENSI35
| ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Equity [Abstract] | |
| Schedule of changes in each component of accumulated other comprehensive (loss) income | The changes in each component of accumulated other comprehensive (loss) income were as follows: Three months ended Nine months ended 2015 2014 2015 2014 Foreign currency translation: Beginning accumulated foreign currency translation $ 513,000 $ 2,000,000 $ 1,692,000 $ 3,701,000 Change in cumulative translation adjustment before reclassifications 121,000 579,000 (1,204,000 ) (1,074,000 ) Amounts reclassified from accumulated other comprehensive income 11,000 (223,000 ) 157,000 (271,000 ) Income taxes — — — — Net current period other comprehensive income (loss) 132,000 356,000 (1,047,000 ) (1,345,000 ) Ending accumulated foreign currency translation 645,000 2,356,000 645,000 2,356,000 Retirement plans: Beginning accumulated retirement plans benefit cost (1,897,000 ) (694,000 ) (1,950,000 ) (710,000 ) Amortization of net actuarial loss and prior service cost 26,000 (3,000 ) 79,000 13,000 Income taxes — — — — Net current period other comprehensive income (loss) 26,000 (3,000 ) 79,000 13,000 Ending accumulated retirement plans benefit cost (1,871,000 ) (697,000 ) (1,871,000 ) (697,000 ) Accumulated other comprehensive (loss) income, net of taxes $ (1,226,000 ) $ 1,659,000 $ (1,226,000 ) $ 1,659,000 |
INFORMATION RELATING TO THE C36
| INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) | 9 Months Ended |
| Jun. 30, 2015 | |
| Supplemental Cash Flow Elements [Abstract] | |
| Schedule of supplemental cash flow information | Nine months ended 2015 2014 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ 235,000 $ 489,000 Income taxes paid $ — $ (103,000 ) Supplemental disclosure of non-cash investing and financing activities: Note receivable for sale of investment $ 907,000 $ — |
SUMMARY OF SIGNIFICANT ACCOUN37
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 1 Months Ended | 3 Months Ended |
| Oct. 31, 2014parcel | Jun. 30, 2015USD ($)venture | |
| Principles of Consolidation | ||
| Number of 80%-owned joint ventures | venture | 2 | |
| Investment in land | ||
| Note Receivable | ||
| Number of residential parcels sold | 1 | |
| Allowance for note receivable | $ | $ 0 | |
| 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% | |
| Kaupulehu 2007, LLLP | ||
| Principles of Consolidation | ||
| Ownership interest in subsidiaries (as a percent) | 80.00% | |
| Kaupulehu Investors, LLC | ||
| Principles of Consolidation | ||
| Ownership interest in subsidiaries (as a percent) | 80.00% |
LIQUIDITY LIQUIDITY - CREDIT FA
| LIQUIDITY LIQUIDITY - CREDIT FACILITY (Details) | Jun. 30, 2015CAD | Jun. 30, 2015USD ($) | Mar. 31, 2015CAD | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2013USD ($) |
| Line of Credit Facility [Line Items] | ||||||
| Cash and cash equivalents | $ 8,695,000 | $ 16,104,000 | $ 10,255,000 | $ 7,828,000 | ||
| Working Capital | 8,858,000 | |||||
| Long-term Debt | 8,454,000 | $ 11,099,000 | ||||
| Credit Agreement | ||||||
| Line of Credit Facility [Line Items] | ||||||
| Maximum borrowing capacity | CAD 6,500,000 | 5,211,000 | CAD 11,800,000 | |||
| Long-term Debt | $ 4,800,000 |
LIQUIDITY - OIL AND NATURAL GAS
| LIQUIDITY - OIL AND NATURAL GAS PROPERTIES (Details) - Aug. 10, 2015 - Oil and natural gas properties - Oil and natural gas properties - Dunvegan area of Alberta - USD ($) $ in Thousands | Total |
| Subsequent events | |
| Sales price per the Purchase and Sales Agreement | $ 15,000 |
| Canadian Tax Withholding | 50.00% |
EARNINGS (LOSS) PER COMMON SH40
| EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
| Net Earnings (Loss) (Numerator) | ||||
| Basic | $ 971 | $ (216) | $ (1,513) | $ (1,490) |
| Effect of dilutive securities - common stock options | 0 | 0 | 0 | 0 |
| Diluted | $ 971 | $ (216) | $ (1,513) | $ (1,490) |
| Shares (Denominator) | ||||
| Basic (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
| Effect of dilutive securities - common stock options | 0 | 0 | 0 | 0 |
| Diluted (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
| Per-Share Amount | ||||
| Basic net earnings (loss) per share (in dollars per share) | $ 0.12 | $ (0.03) | $ (0.18) | $ (0.18) |
| Diluted net earnings (loss) per share (in dollars per share) | $ 0.12 | $ (0.03) | $ (0.18) | $ (0.18) |
| Options | ||||
| Antidilutive shares of common stock excluded from the computation of diluted shares | ||||
| Antidilutive shares excluded from computation of earnings (loss) per share (in shares) | 621,250 | 837,250 | ||
NOTE RECEIVABLE (Details)
| NOTE RECEIVABLE (Details) - Oct. 31, 2014 - Investment in land $ in Thousands | USD ($)parcel |
| Note receivable | |
| Number of residential parcels sold | parcel | 1 |
| Purchase or sales price | $ 1,250 |
| Cash proceeds received | $ 343 |
| Period after purchase closing date mortgage is due | 270 days |
REAL ESTATE HELD FOR SALE (Deta
| REAL ESTATE HELD FOR SALE (Details) | Jun. 30, 2015home |
| Kaupulehu 2007, LLLP | |
| Real estate held for sale | |
| Number of luxury residences owned | 1 |
INVESTMENTS (Details)
| INVESTMENTS (Details) $ in Thousands | Nov. 27, 2013USD ($)partnership | Jun. 30, 2015USD ($)parcel | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)parcel | Jun. 30, 2014USD ($) | Oct. 31, 2014USD ($) |
| Investment Holdings [Line Items] | ||||||
| Land investment | $ 988 | $ (113) | $ 1,444 | $ (376) | ||
| Investment in land | ||||||
| Investment Holdings [Line Items] | ||||||
| Number of residential parcels owned | parcel | 1 | 1 | ||||
| Purchase or sales price | $ 1,250 | |||||
| Investment in land development partnerships | ||||||
| Investment Holdings [Line Items] | ||||||
| Number of limited liability limited partnerships formed | partnership | 2 | |||||
| Basis Difference Adjustment | $ 74 | |||||
| Basis difference between the underlying equity in net assets of the investee and the carrying value of the entity's investment | $ 398 | 398 | ||||
| Bonds issued by the surety | 4,144 | 4,144 | ||||
| Maximum loss exposure | $ 10,246 | $ 10,246 | ||||
| Investment in land development partnerships | KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD Kaupulehu, LLLP | ||||||
| Investment Holdings [Line Items] | ||||||
| Ownership interest acquired, aggregate cost | $ 5,140 | |||||
| Investment in land development partnerships | KD Kukio Resorts, LLLP | ||||||
| Investment Holdings [Line Items] | ||||||
| Ownership interest acquired (as a percent) | 19.60% | |||||
| Investment in land development partnerships | KD Maniniowali, LLLP | ||||||
| Investment Holdings [Line Items] | ||||||
| Ownership interest acquired (as a percent) | 19.60% | |||||
| Investment in land development partnerships | KD Kaupulehu, LLLP | ||||||
| Investment Holdings [Line Items] | ||||||
| Ownership interest acquired (as a percent) | 19.60% |
INVESTMENTS - SUMMARY OF INVEST
| INVESTMENTS - SUMMARY OF INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
| Investment Holdings [Line Items] | ||
| Investments | $ 7,344 | $ 5,900 |
| Residential Parcel | ||
| Investment Holdings [Line Items] | ||
| Investments | 1,192 | 1,192 |
| Investment in land development partnerships | ||
| Investment Holdings [Line Items] | ||
| Investments | 6,102 | 4,658 |
| Investment in leasehold land interest - Lot 4C | ||
| Investment Holdings [Line Items] | ||
| Investments | $ 50 | $ 50 |
INVESTMENTS - LAND DEVELOPMENT
| INVESTMENTS - LAND DEVELOPMENT PARTNERSHIPS (Details) - Investment in land development partnerships - USD ($) $ in Thousands | 3 Months Ended | 7 Months Ended | 9 Months Ended | |
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | |
| Investment Holdings [Line Items] | ||||
| Revenue | $ 12,078 | $ 2,228 | $ 3,850 | $ 22,785 |
| Gross profit | 5,285 | 778 | 1,541 | 9,694 |
| Net earnings (loss) | $ 4,215 | $ (298) | $ (1,107) | $ 6,779 |
INVESTMENTS - PERCENTAGE OF SAL
| INVESTMENTS - PERCENTAGE OF SALES PAYMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015USD ($)aincrement | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)a | Jun. 30, 2014USD ($) | |
| Investment Holdings [Line Items] | ||||
| Sale of interest in leasehold land, net | $ 1,266 | $ 258 | $ 3,115 | $ 378 |
| Kaupulehu Developments | ||||
| Investment Holdings [Line Items] | ||||
| Proceeds from Sale of Interest in Leasehold Land Gross | 1,473 | 300 | 3,623 | 440 |
| Fees Related to Sale of Interest in Leasehold Land | (207) | (42) | (508) | (62) |
| Sale of interest in leasehold land, net | $ 1,266 | $ 258 | $ 3,115 | $ 378 |
| Area of land (in acres) | a | 870 | 870 | ||
| Number of development increments | increment | 2 | |||
| Land Interest | ||||
| Investment Holdings [Line Items] | ||||
| Area of land (in acres) | a | 1,000 | 1,000 | ||
OIL AND NATURAL GAS PROPERTIE47
| OIL AND NATURAL GAS PROPERTIES (Detail) - Oil and natural gas properties - Progress area of Alberta $ in Thousands | Nov. 13, 2014USD ($) |
| Oil and natural gas properties | |
| Purchase or sales price | $ 526 |
| Allocation of the purchase price to the assets acquired and liabilities assumed | |
| Property and equipment | 751 |
| Asset retirement obligation | (225) |
| Net identifiable assets acquired | $ 526 |
LONG-TERM DEBT (Details)
| LONG-TERM DEBT (Details) CAD in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
| Oct. 31, 2014USD ($)parcel | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015CAD | Jun. 30, 2015USD ($) | Mar. 31, 2015CAD | Sep. 30, 2014USD ($) | |
| Long-term debt | |||||||
| Long-term debt | $ 8,454,000 | $ 11,099,000 | |||||
| Less: current portion | (3,654,000) | (4,449,000) | |||||
| Total long-term debt | 4,800,000 | 6,650,000 | |||||
| Long-term debt, additional disclosures | |||||||
| Note receivable | 906,000 | 0 | |||||
| Investment in land | |||||||
| Long-term debt, additional disclosures | |||||||
| Number of residential parcels sold | parcel | 1 | ||||||
| Canadian revolving credit facility | |||||||
| Long-term debt | |||||||
| Long-term debt | 4,800,000 | 7,000,000 | |||||
| Long-term debt, additional disclosures | |||||||
| Maximum borrowing capacity | CAD 6,500 | 5,211,000 | CAD 11,800 | ||||
| Letters of Credit Outstanding, Amount | $ 36,000 | ||||||
| Repayments of lines of credit | $ 200,000 | $ 2,200,000 | |||||
| Foreign currency transaction loss | $ 11,000 | $ 157,000 | |||||
| Interest rate on the facility (as a percent) | 2.69% | 2.69% | |||||
| Standby fee (as a percent) | 0.625% | ||||||
| Renewal period with no required debt repayments | 1 year | ||||||
| Period of term loan if credit facility term date is not extended | 2 years | ||||||
| Line of Credit Facility Required Debt Repayments on Renewal for Specified Period | $ 0 | ||||||
| Repayment schedule if the facility is converted to a two-year term loan | |||||||
| Percentage of outstanding loan balance to be repaid in first year of the term period | 20.00% | ||||||
| Percentage of outstanding loan balance to be repaid per quarter in first year of the term period | 5.00% | ||||||
| Percentage of outstanding loan balance to be repaid in second year of the term period | 80.00% | ||||||
| Percentage of outstanding loan balance to be repaid per quarter for first three quarters in second year of the term period | 5.00% | ||||||
| Percentage of outstanding loan balance to be repaid in the final quarter of the second year of the term period | 65.00% | ||||||
| Canadian revolving credit facility | London Interbank Offered Rate (LIBOR) | |||||||
| Long-term debt, additional disclosures | |||||||
| Basis spread on variable rate (as a percent) | 2.50% | ||||||
| Canadian revolving credit facility | Base Rate | |||||||
| Long-term debt, additional disclosures | |||||||
| Basis spread on variable rate (as a percent) | 1.50% | ||||||
| Canadian revolving credit facility | Prime Rate | |||||||
| Long-term debt, additional disclosures | |||||||
| Basis spread on variable rate (as a percent) | 1.50% | ||||||
| Real estate loan | |||||||
| Long-term debt | |||||||
| Long-term debt | $ 3,654,000 | $ 4,099,000 | |||||
| Long-term debt, additional disclosures | |||||||
| Interest rate (as a percent) | 3.59% | 3.59% | |||||
| Restricted Cash and Investments | $ 275,000 | ||||||
| Real estate loan | Investment in land | |||||||
| Long-term debt, additional disclosures | |||||||
| Number of residential parcels sold | parcel | 1 | ||||||
| Note receivable | $ 907,000 | ||||||
| Debt repaid as a result of the sale of one of the residential parcels | $ 266,000 | ||||||
RETIREMENT PLANS (Details)
| RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
| Pension Plan | ||||
| Net periodic benefit cost: | ||||
| Service cost | $ 64 | $ 0 | $ 192 | $ 118 |
| Interest cost | 89 | 73 | 267 | 242 |
| Expected return on plan assets | (125) | (113) | (375) | (323) |
| Amortization of prior service cost (credit) | 1 | 1 | 4 | 4 |
| Amortization of net actuarial loss (gain) | 21 | (3) | 64 | 15 |
| Net periodic benefit cost | 50 | (42) | 152 | 56 |
| Other disclosures | ||||
| Contribution by the entity to the Pension Plan | 250 | |||
| SERP | ||||
| Net periodic benefit cost: | ||||
| Service cost | 15 | 12 | 46 | 35 |
| Interest cost | 19 | 17 | 57 | 50 |
| Amortization of prior service cost (credit) | (1) | (1) | (3) | (4) |
| Amortization of net actuarial loss (gain) | 6 | 2 | 18 | 4 |
| Net periodic benefit cost | 39 | 30 | 118 | 85 |
| Postretirement Medical | ||||
| Net periodic benefit cost: | ||||
| Service cost | 0 | 3 | 0 | 9 |
| Interest cost | 13 | 13 | 39 | 40 |
| Amortization of prior service cost (credit) | 0 | 3 | 0 | 9 |
| Amortization of net actuarial loss (gain) | (1) | (5) | (4) | (15) |
| Net periodic benefit cost | $ 12 | $ 14 | $ 35 | $ 43 |
INCOME TAXES (Details)
| INCOME TAXES (Details) - USD ($) | Jun. 29, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 28, 2015 | Jun. 30, 2014 |
| Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | ||||||
| United States | $ 1,684,000 | $ (710,000) | $ 1,269,000 | $ (2,949,000) | ||
| Canada | (853,000) | 705,000 | (2,622,000) | 2,121,000 | ||
| Total | 831,000 | (5,000) | (1,353,000) | (828,000) | ||
| Components of the income tax provision (benefit) | ||||||
| Current | (289,000) | 344,000 | (636,000) | 887,000 | ||
| Deferred | 149,000 | (133,000) | 796,000 | (225,000) | ||
| Total | (140,000) | $ 211,000 | 160,000 | 662,000 | ||
| Foreign Tax Authority | ||||||
| Components of the income tax provision (benefit) | ||||||
| Increase in valuation allowance, amount | 78,000 | $ 863,000 | $ 0 | |||
| Alberta Corporate Tax Rate | 12.00% | 10.00% | ||||
| Total Canadian Statutory Tax Rate | 30.65% | 28.75% | ||||
| Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 92,000 |
SEGMENT INFORMATION (Details)
| SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
| Revenues: | ||||
| Revenue, Net | $ 5,184,000 | $ 6,802,000 | $ 14,675,000 | $ 21,874,000 |
| Interest income | 19,000 | 8,000 | 52,000 | 18,000 |
| Total revenues | 5,203,000 | 6,810,000 | 14,727,000 | 21,892,000 |
| Depletion, depreciation, and amortization: | ||||
| Depletion, depreciation, and amortization | 801,000 | 1,296,000 | 2,648,000 | 5,364,000 |
| Operating profit (before general and administrative expenses): | ||||
| Operating profit | 2,033,000 | 2,127,000 | 4,239,000 | 6,067,000 |
| Equity in income (loss) of affiliates: | ||||
| Equity in income (loss) of affiliates | 988,000 | (113,000) | 1,444,000 | (376,000) |
| General and administrative expenses | (1,891,000) | (1,844,000) | (6,270,000) | (6,049,000) |
| Interest expense | (76,000) | (165,000) | (248,000) | (520,000) |
| Interest income | 19,000 | 8,000 | 52,000 | 18,000 |
| Income (loss) before income taxes | 1,073,000 | 13,000 | (783,000) | (860,000) |
| Oil and natural gas | ||||
| Revenues: | ||||
| Revenue, Net | 2,196,000 | 4,619,000 | 7,260,000 | 16,343,000 |
| Depletion, depreciation, and amortization: | ||||
| Depletion, depreciation, and amortization | 707,000 | 1,187,000 | 2,362,000 | 5,043,000 |
| Operating profit (before general and administrative expenses): | ||||
| Operating profit | (46,000) | 1,321,000 | (78,000) | 4,526,000 |
| Land investment | ||||
| Revenues: | ||||
| Revenue, Net | 1,266,000 | 258,000 | 3,115,000 | 378,000 |
| Operating profit (before general and administrative expenses): | ||||
| Operating profit | 1,266,000 | 258,000 | 3,115,000 | 378,000 |
| Contract drilling | ||||
| Revenues: | ||||
| Revenue, Net | 1,415,000 | 1,548,000 | 3,839,000 | 4,475,000 |
| Depletion, depreciation, and amortization: | ||||
| Depletion, depreciation, and amortization | 66,000 | 79,000 | 207,000 | 235,000 |
| Operating profit (before general and administrative expenses): | ||||
| Operating profit | 534,000 | 201,000 | 820,000 | 571,000 |
| Other | ||||
| Revenues: | ||||
| Revenue, Net | 307,000 | 377,000 | 461,000 | 678,000 |
| Depletion, depreciation, and amortization: | ||||
| Depletion, depreciation, and amortization | 28,000 | 30,000 | 79,000 | 86,000 |
| Operating profit (before general and administrative expenses): | ||||
| Operating profit | $ 279,000 | $ 347,000 | 382,000 | $ 592,000 |
| Intersegment Eliminations | ||||
| Revenues: | ||||
| Revenue, Net | $ 0 | |||
ACCUMULATED OTHER COMPREHENSI52
| ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
| Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
| Changes in foreign currency translation | |||||
| Beginning accumulated foreign currency translation | $ 513 | $ 2,000 | $ 1,692 | $ 3,701 | |
| Change in cumulative translation adjustment before reclassifications | 121 | 579 | (1,204) | (1,074) | |
| Amounts reclassified from accumulated other comprehensive income | 11 | (223) | 157 | (271) | |
| Income taxes | 0 | 0 | 0 | 0 | |
| Net current period other comprehensive income (loss) | 132 | 356 | (1,047) | (1,345) | |
| Ending accumulated foreign currency translation | 645 | 2,356 | 645 | 2,356 | |
| Changes in retirement plans | |||||
| Beginning accumulated retirement plans benefit cost | (1,897) | (694) | (1,950) | (710) | |
| Amortization of net actuarial loss and prior service cost | 26 | (3) | 79 | 13 | |
| Income taxes | 0 | 0 | 0 | 0 | |
| Net current period other comprehensive income (loss) | 26 | (3) | 79 | 13 | |
| Ending accumulated retirement plans benefit cost | (1,871) | (697) | (1,871) | (697) | |
| Accumulated other comprehensive (loss) income, net of taxes | $ (1,226) | $ 1,659 | $ (1,226) | $ 1,659 | $ (258) |
COMMITMENTS AND CONTINGENCIES (
| COMMITMENTS AND CONTINGENCIES (Detail) - USD ($) | 9 Months Ended | |
| Jun. 30, 2015 | Sep. 30, 2014 | |
| Commitments and Contingencies Disclosure [Abstract] | ||
| Estimate of probable loss | $ 2,300,000 | |
| Percentage of working interest | 58.00% | |
| Insurance deductible | $ 80,000 | |
| Insurance Recoveries | 722,000 | |
| Estimated recovery from insurance | 410,000 | |
| Environmental Remediation Expense | 221,000 | |
| Accrual for environmental remediation costs | $ 390,000 | $ 501,000 |
INFORMATION RELATING TO THE C54
| INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
| Jun. 30, 2015 | Jun. 30, 2014 | |
| Supplemental disclosure of cash flow information: | ||
| Interest | $ 235 | $ 489 |
| Income taxes paid | 0 | (103) |
| Supplemental disclosure of non-cash investing and financing activities: | ||
| Note receivable for sale of investment | 907 | 0 |
| Oil and natural gas | ||
| Supplemental disclosures of cash flow information: | ||
| Increase (Decrease) in capital expenditure accruals related to oil and natural gas exploration and development | 95 | (1,329) |
| Increase (Decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations | $ 938 | $ 58 |
RELATED PARTY TRANSACTIONS (Det
| RELATED PARTY TRANSACTIONS (Details) - Kaupulehu Developments $ in Thousands | 3 Months Ended | 9 Months Ended | ||
| Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($)lot | Jun. 30, 2015USD ($)lot | Jun. 30, 2014USD ($) | |
| Related party transactions | ||||
| Percentage of sales payment received | $ 1,473 | $ 300 | $ 3,623 | $ 440 |
| KD Kaupulehu, LLLP | Investment in land development partnerships | ||||
| Related party transactions | ||||
| Ownership interest acquired (as a percent) | 19.60% | 19.60% | ||
| Percentage of sales payment received | $ 300 | $ 3,623 | ||
| KD Kaupulehu, LLLP | Investment in land development partnerships | Phase I | ||||
| Related party transactions | ||||
| Number of lots sold in Increment I | lot | 6 | |||
| KD Kaupulehu, LLLP | Investment in land development partnerships | Phase II | ||||
| Related party transactions | ||||
| Number of lots sold in Increment I | lot | 1 | 10 | ||
SUBSEQUENT EVENT (Details)
| SUBSEQUENT EVENT (Details) - USD ($) $ in Thousands | Aug. 10, 2015 | Jun. 30, 2015 | Sep. 30, 2014 |
| Subsequent events | |||
| Long-term Debt | $ 8,454 | $ 11,099 | |
| Canadian revolving credit facility | |||
| Subsequent events | |||
| Long-term Debt | $ 4,800 | $ 7,000 | |
| Oil and natural gas properties | Oil and natural gas properties | Dunvegan area of Alberta | |||
| Subsequent events | |||
| Sales price per the Purchase and Sales Agreement | $ 15,000 | ||
| Canadian Tax Withholding | 50.00% |