Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2016 | Aug. 08, 2016 | |
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, 2016 | |
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 | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 17,433 | $ 8,471 |
Restricted cash | 384 | 7,458 |
Accounts and other receivables, net of allowance for doubtful accounts of: $41,000 at June 30, 2016; $23,000 at September 30, 2015 | 1,851 | 2,300 |
Income taxes receivable | 190 | 82 |
Investment held for sale | 1,192 | 1,192 |
Real estate held for sale | 0 | 5,132 |
Other current assets | 1,007 | 1,043 |
Total current assets | 22,057 | 25,678 |
Restricted cash, net of current portion | 0 | 119 |
Investments | 3,544 | 6,288 |
Property and equipment | 78,541 | 75,953 |
Accumulated depletion, depreciation, and amortization | (70,554) | (66,485) |
Property and equipment, net | 7,987 | 9,468 |
Total assets | 33,588 | 41,553 |
Current liabilities: | ||
Accounts payable | 1,609 | 2,653 |
Accrued capital expenditures | 278 | 363 |
Accrued operating and other expenses | 1,226 | 1,343 |
Accrued incentive and other compensation | 344 | 560 |
Billings in excess of costs | 146 | 569 |
Payable to joint interest owners | 94 | 428 |
Current portion of asset retirement obligation | 1,130 | 506 |
Current portion of long-term debt | 0 | 3,440 |
Other current liabilities | 123 | 141 |
Total current liabilities | 4,950 | 10,003 |
Liability for retirement benefits | 4,568 | 5,409 |
Asset retirement obligation | 6,271 | 6,430 |
Deferred income taxes | 643 | 449 |
Total liabilities | 16,432 | 22,291 |
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, 2016 and September 30, 2015 | 4,223 | 4,223 |
Additional paid-in capital | 1,343 | 1,335 |
Retained earnings | 15,225 | 17,467 |
Accumulated other comprehensive loss, net | (1,882) | (2,122) |
Treasury stock, at cost: 167,900 shares at June 30, 2016 and September 30, 2015 | (2,286) | (2,286) |
Total stockholders' equity | 16,623 | 18,617 |
Non-controlling interests | 533 | 645 |
Total equity | 17,156 | 19,262 |
Total liabilities and equity | $ 33,588 | $ 41,553 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 41 | $ 23 |
Common stock, par value | $ 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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Oil and natural gas | $ 768 | $ 2,196 | $ 2,237 | $ 7,260 |
Contract drilling | 120 | 1,415 | 1,502 | 3,839 |
Sale of interest in leasehold land, net | 1,502 | 1,266 | 1,915 | 3,115 |
Residential real estate | 5,700 | 0 | 5,700 | 0 |
Gas processing and other | 126 | 54 | 237 | 241 |
Total revenues | 8,216 | 4,931 | 11,591 | 14,455 |
Costs and expenses: | ||||
Oil and natural gas operating | 757 | 1,535 | 2,510 | 4,976 |
Contract drilling operating | 263 | 815 | 1,431 | 2,812 |
Residential real estate | 5,510 | 0 | 5,510 | 0 |
General and administrative | 1,436 | 1,891 | 4,805 | 6,270 |
Depletion, depreciation, and amortization | 448 | 801 | 1,201 | 2,648 |
Impairment of oil and natural gas properties | 1,154 | 0 | 1,154 | 0 |
Gain on sales of assets | (472) | (272) | (472) | (272) |
Interest expense | 19 | 76 | 85 | 248 |
Total costs and expenses | 9,115 | 4,846 | 16,224 | 16,682 |
(Loss) earnings before equity in income of affiliates and income taxes | (899) | 85 | (4,633) | (2,227) |
Equity in income of affiliates | 2,200 | 988 | 2,616 | 1,444 |
Earnings (loss) before income taxes | 1,301 | 1,073 | (2,017) | (783) |
Income tax (benefit) provision | (72) | (140) | (529) | 160 |
Net earnings (loss) | 1,373 | 1,213 | (1,488) | (943) |
Less: Net earnings attributable to non-controlling interests | 598 | 242 | 754 | 570 |
Net earnings (loss) attributable to Barnwell Industries, Inc. | $ 775 | $ 971 | $ (2,242) | $ (1,513) |
Basic and diluted net earnings (loss) per common share attributable to Barnwell Industries, Inc. stockholders | $ 0.09 | $ 0.12 | $ (0.27) | $ (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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 1,373 | $ 1,213 | $ (1,488) | $ (943) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of taxes of $0 | (3) | 132 | 113 | (1,047) |
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 50 | 26 | 127 | 79 |
Total other comprehensive income (loss) | 47 | 158 | 240 | (968) |
Total comprehensive income (loss) | 1,420 | 1,371 | (1,248) | (1,911) |
Less: Comprehensive income attributable to non-controlling interests | 598 | 242 | 754 | 570 |
Comprehensive income (loss) attributable to Barnwell Industries, Inc. | $ 822 | $ 1,129 | $ (2,002) | $ (2,481) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
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 ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (1,488) | $ (943) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Equity in income of affiliates | (2,616) | (1,444) |
Depletion, depreciation, and amortization | 1,201 | 2,648 |
Impairment of oil and natural gas properties | 1,154 | 0 |
Foreign exchange loss | 0 | 157 |
Gain on sale of oil and natural gas properties | (472) | 0 |
Gain on sale of contract drilling assets | 0 | (272) |
Loss on sale of investment | 0 | 16 |
Distribution of income from equity investees | 3,714 | 0 |
Retirement benefits expense | 389 | 305 |
Accretion of asset retirement obligation | 345 | 458 |
Deferred income tax (benefit) expense | (2) | 796 |
Asset retirement obligation payments | (217) | (562) |
Share-based compensation benefit | (33) | (69) |
Retirement plan contributions | (1,104) | (254) |
Sale of interest in leasehold land, net | (1,915) | (3,115) |
Real estate held for sale | 5,132 | 0 |
Decrease from changes in current assets and liabilities | (1,044) | (3,087) |
Net cash provided by (used in) operating activities | 3,044 | (5,366) |
Cash flows from investing activities: | ||
Decrease in restricted cash | 7,089 | 0 |
Proceeds from sale of interest in leasehold land, net of fees paid | 1,915 | 3,115 |
Distribution from equity investees in excess of earnings | 1,646 | 0 |
Proceeds from the sale of contract drilling assets | 0 | 368 |
Proceeds from sale of investment, net of closing costs | 0 | 266 |
Payment to acquire oil and natural gas properties | 0 | (526) |
Capital expenditures - oil and natural gas | (673) | (878) |
Capital expenditures - all other | (45) | (197) |
Net cash provided by investing activities | 9,932 | 2,148 |
Cash flows from financing activities: | ||
Repayments of long-term debt | (3,440) | (2,645) |
Increase (decrease) in restricted cash | 54 | (275) |
Contributions from non-controlling interests | 0 | 120 |
Distributions to non-controlling interests | (866) | (609) |
Net cash used in financing activities | (4,252) | (3,409) |
Effect of exchange rate changes on cash and cash equivalents | 238 | (782) |
Net increase (decrease) in cash and cash equivalents | 8,962 | (7,409) |
Cash and cash equivalents at beginning of period | 8,471 | 16,104 |
Cash and cash equivalents at end of period | $ 17,433 | $ 8,695 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | 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, 2014 | 8,277,160 | ||||||
Balance, beginning of period at Sep. 30, 2014 | $ 19,945 | $ 4,223 | $ 1,315 | $ 16,204 | $ (258) | $ (2,286) | $ 747 |
Increase (Decrease) in Stockholders' Equity | |||||||
Contributions from non-controlling interests | 120 | 120 | |||||
Distributions to non-controlling interests | (609) | (609) | |||||
Net earnings (loss) | (943) | (1,513) | 570 | ||||
Share-based compensation | 15 | 15 | |||||
Foreign currency translation adjustments, net of taxes of $0 | (1,047) | (1,047) | |||||
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 79 | 79 | |||||
Balance, end of period (in shares) at Jun. 30, 2015 | 8,277,160 | ||||||
Balance, end of period at Jun. 30, 2015 | 17,560 | $ 4,223 | 1,330 | 14,691 | (1,226) | (2,286) | 828 |
Balance, beginning of period (in shares) at Mar. 31, 2015 | 8,277,160 | ||||||
Balance, beginning of period at Mar. 31, 2015 | 16,430 | $ 4,223 | 1,326 | 13,720 | (1,384) | (2,286) | 831 |
Increase (Decrease) in Stockholders' Equity | |||||||
Contributions from non-controlling interests | 30 | 30 | |||||
Distributions to non-controlling interests | (275) | (275) | |||||
Net earnings (loss) | 1,213 | 971 | 242 | ||||
Share-based compensation | 4 | 4 | |||||
Foreign currency translation adjustments, net of taxes of $0 | 132 | 132 | |||||
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 26 | 26 | |||||
Balance, end of period (in shares) at Jun. 30, 2015 | 8,277,160 | ||||||
Balance, end of period at Jun. 30, 2015 | 17,560 | $ 4,223 | 1,330 | 14,691 | (1,226) | (2,286) | 828 |
Balance, beginning of period (in shares) at Sep. 30, 2015 | 8,277,160 | ||||||
Balance, beginning of period at Sep. 30, 2015 | 19,262 | $ 4,223 | 1,335 | 17,467 | (2,122) | (2,286) | 645 |
Increase (Decrease) in Stockholders' Equity | |||||||
Distributions to non-controlling interests | (866) | (866) | |||||
Net earnings (loss) | (1,488) | (2,242) | 754 | ||||
Share-based compensation | 8 | 8 | |||||
Foreign currency translation adjustments, net of taxes of $0 | 113 | 113 | |||||
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 127 | 127 | |||||
Balance, end of period (in shares) at Jun. 30, 2016 | 8,277,160 | ||||||
Balance, end of period at Jun. 30, 2016 | 17,156 | $ 4,223 | 1,343 | 15,225 | (1,882) | (2,286) | 533 |
Balance, beginning of period (in shares) at Mar. 31, 2016 | 8,277,160 | ||||||
Balance, beginning of period at Mar. 31, 2016 | 16,513 | $ 4,223 | 1,340 | 14,450 | (1,929) | (2,286) | 715 |
Increase (Decrease) in Stockholders' Equity | |||||||
Distributions to non-controlling interests | (780) | (780) | |||||
Net earnings (loss) | 1,373 | 775 | 598 | ||||
Share-based compensation | 3 | 3 | |||||
Foreign currency translation adjustments, net of taxes of $0 | (3) | (3) | |||||
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 50 | 50 | |||||
Balance, end of period (in shares) at Jun. 30, 2016 | 8,277,160 | ||||||
Balance, end of period at Jun. 30, 2016 | $ 17,156 | $ 4,223 | $ 1,343 | $ 15,225 | $ (1,882) | $ (2,286) | $ 533 |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
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, 2016 | |
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, 2015 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2015 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, 2016 , results of operations, comprehensive income (loss), and equity for the three and nine months ended June 30, 2016 and 2015 , and cash flows for the nine months ended June 30, 2016 and 2015 , have been made. The results of operations for the period ended June 30, 2016 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 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. Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU relates to discontinued operations reporting for disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The Company adopted the provisions of this ASU effective October 1, 2015. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. |
LIQUIDITY
LIQUIDITY | 9 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
LIQUIDITY | LIQUIDITY In April 2016, Barnwell’s $1,000,000 Canadian-dollar revolving credit facility at Royal Bank of Canada was terminated. The termination was due to Barnwell's significant reduction in reserves as a result of the sale of its interests in oil and natural gas properties located in the Dunvegan and Belloy areas in September 2015 as well as a tightening credit market for oil and natural gas companies due to current low oil and natural gas prices and reductions in Royal Bank of Canada's forecast of oil and natural gas prices which decreased its valuation of the Company's remaining oil and natural gas assets pledged as security. In June 2016, Barnwell entered into a new agreement with Royal Bank of Canada for a revolving demand facility in the amount of $500,000 Canadian dollars, or U.S. $384,000 at the June 30, 2016 exchange rate, which is secured by a $500,000 Canadian dollar guaranteed investment certificate pledged to the Royal Bank of Canada (see Note 8). In April 2016, Kaupulehu 2007, LLLP ("Kaupulehu 2007") sold its remaining luxury residence for $5,700,000 and repaid the real estate loan in full from a portion of the proceeds. After the repayment of the real estate loan and distributions to minority interests, the Company netted approximately $1,500,000 in cash proceeds from the sale of the residence (see Notes 5 and 8). Additionally, in April 2016, KD Acquisition II, LLLP, which is part of the Kukio Resort land development partnerships in which the Company has an indirect ownership interest and an entity from which the Company has rights to receive percentage of sales payments, sold one ocean front parcel in Kaupulehu Increment II for $20,000,000 . As a result of the sale, the Company received a percentage of sale payment in the amount of $1,600,000 . The Kukio Resort land development partnerships also made a cash distribution in April 2016 to its partners of which Barnwell received $5,320,000 , after distributing $40,000 to minority interests (see Note 6). At June 30, 2016, Barnwell had $17,433,000 in cash and cash equivalents and working capital totaled $17,107,000 . Because of the combined impact of declines in oil and natural gas prices, declines in production due to oil and natural gas property sales, and increasing costs due to the age of Barnwell's properties, Barnwell's existing oil and natural gas assets are projected to have minimal cash flow from operations at current prices and production levels. As a result, the Company's existing cash will be needed to fund upcoming cash needs including asset retirement obligations, retirement plan funding, and ongoing operating and general and administrative expenses, such that some or potentially all of the cash may not be available for reinvestment. Barnwell will therefore be reliant upon future land investment segment proceeds from percentage of sales payments and any potential future cash distributions from the Kukio Resort land development partnerships, the timing of which is highly uncertain and out of our control, to fund operations and provide capital for reinvestment on a long-term basis. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 9 Months Ended |
Jun. 30, 2016 | |
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 shares of common stock were excluded from the computation of diluted shares for the three and nine months ended June 30, 2016 and 2015 , 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, 2016 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 775,000 8,277,160 $ 0.09 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 775,000 8,277,160 $ 0.09 Nine months ended June 30, 2016 Net Loss Shares Per-Share Basic net loss per share $ (2,242,000 ) 8,277,160 $ (0.27 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (2,242,000 ) 8,277,160 $ (0.27 ) 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 (Numerator) Shares (Denominator) Per-Share Amount 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 ) |
INVESTMENT HELD FOR SALE
INVESTMENT HELD FOR SALE | 9 Months Ended |
Jun. 30, 2016 | |
Investment held for sale [Abstract] | |
INVESTMENT HELD FOR SALE | INVESTMENT HELD FOR SALE At June 30, 2016 , Kaupulehu 2007 owned one residential lot 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. A second residential parcel 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 for the nine months ended June 30, 2015 . |
REAL ESTATE HELD FOR SALE
REAL ESTATE HELD FOR SALE | 9 Months Ended |
Jun. 30, 2016 | |
Real Estate [Abstract] | |
REAL ESTATE HELD FOR SALE | REAL ESTATE HELD FOR SALE In April 2016, the residence that was available for sale in Lot 4A Increment I was sold for $5,700,000 in gross proceeds, before commission and other closing costs, and as a result of the sale, income in the amount of $190,000 was recognized during the three and nine months ended June 30, 2016. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Jun. 30, 2016 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | INVESTMENTS A summary of Barnwell’s investments is as follows: June 30, September 30, Investment in Kukio Resort land development partnerships $ 3,494,000 $ 6,238,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 3,544,000 $ 6,288,000 Investment in Kukio Resort land development partnerships On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP ("KD Kona") and KKM Makai, LLLP ("KKM Makai"), and indirectly acquired, through their ownership of interest in Kaupulehu Makai, LLLP ("Kaupulehu Makai"), 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 partnerships derive income from the sale of residential parcels as well as from commission on real estate sales by the real estate sales office. As of June 30, 2016 , 25 lots remained to be sold at Kaupulehu Increment I, one ocean front parcel in Kaupulehu Increment II was available for sale, and one lot remained to be sold at Maniniowali. In April 2016, the Kukio Resort land development partnerships made a cash distribution to its partners of which Barnwell received $5,320,000 , after distributing $40,000 to minority interests. Equity in income of affiliates was $2,200,000 and $2,616,000 for the three and nine months ended June 30, 2016 , respectively, and $988,000 and $1,444,000 for the three and nine months ended June 30, 2015 , 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 $356,000 as of June 30, 2016 , which is attributable to differences in the value of capitalized development costs and a note receivable. The basis difference will be recognized as the partnerships sell lots and recognize the associated costs and sell memberships for the Kuki`o Golf and Beach Club for which the receivable relates. The basis difference adjustments of $17,000 and $34,000 for the three and nine months ended June 30, 2016 , respectively, increased equity in income of affiliates, and 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. 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, 2016 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, 2016 , Barnwell’s maximum loss exposure as a result of its investment in the Kukio Resort land development partnerships was approximately $7,638,000 , consisting of the carrying value of the investment of $3,494,000 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, 2016 Three months ended June 30, 2015 Revenue $ 23,584,000 $ 12,078,000 Gross profit $ 10,732,000 $ 5,285,000 Net earnings $ 10,029,000 $ 4,215,000 Nine months ended June 30, 2016 Nine months ended June 30, 2015 Revenue $ 31,703,000 $ 22,785,000 Gross profit $ 14,186,000 $ 9,694,000 Net earnings $ 12,020,000 $ 6,779,000 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 total of Increment I and Increment II percentage of sales payment revenues received from KD I and KD II: Three months ended Nine months ended 2016 2015 2016 2015 Sale of interest in leasehold land: Proceeds $ 1,775,000 $ 1,473,000 $ 2,255,000 $ 3,623,000 Fees (273,000 ) (207,000 ) (340,000 ) (508,000 ) Revenues – sale of interest in leasehold land, net $ 1,502,000 $ 1,266,000 $ 1,915,000 $ 3,115,000 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, 2016 | |
OIL AND NATURAL GAS PROPERTIES [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | OIL AND NATURAL GAS PROPERTIES Under the full cost method of accounting, we are required to perform quarterly ceiling test calculations. Barnwell’s net capitalized costs exceeded the ceiling limitation at June 30, 2016 . As such, Barnwell reduced the carrying value of its oil and natural gas properties by $1,154,000 during the three and nine months ended June 30, 2016 . No such reduction was necessary during the three and nine months ended June 30, 2015 . The reduction is included in the Condensed Consolidated Statements of Operations under the caption “Impairment of oil and natural gas properties.” In September 2015, Barnwell sold its interests in its principal oil and natural gas properties located in the Dunvegan and Belloy areas of Alberta, Canada. The disposition was recorded in the fourth quarter of fiscal 2015 using preliminary purchase price adjustments. The purchase price is subject to final adjustments in accordance with the terms of the purchase and sale agreement. Barnwell and the purchaser updated the estimated purchase price adjustments during the current quarter which resulted in the recognition of an additional gain in the amount of $472,000 during the three and nine months ended June 30, 2016 , bringing the total gain on the sale of these properties to $6,689,000 . The estimated purchase price adjustments remain subject to change pending finalization. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Jun. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Canadian revolving credit facility In April 2016, Barnwell’s $1,000,000 Canadian-dollar revolving credit facility at Royal Bank of Canada was terminated. Borrowings under this facility were $0 at September 30, 2015, thus no repayment was necessary upon termination. Barnwell repaid $200,000 and $2,200,000 of the credit facility during the three and nine months ended June 30, 2015, respectively, representing a portion of the then outstanding borrowings under the Canadian revolving credit facility. 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. Canadian revolving demand facility In June 2016, Barnwell entered into a new agreement with Royal Bank of Canada for a revolving demand facility in the amount of $500,000 Canadian dollars, or U.S. $384,000 at the June 30, 2016 exchange rate. Borrowings under this facility were $0 and issued letters of credit were $35,000 at June 30, 2016 . The revolving demand facility is available in U.S. dollars at the London Interbank Offer Rate plus 1.0%, at Royal Bank of Canada’s U.S. base rate, or in Canadian dollars at Royal Bank of Canada’s prime rate. The obligations under the credit facility are secured by a $500,000 Canadian dollar guaranteed investment certificate pledged to the Royal Bank of Canada, which is classified as "Restricted cash" on the accompanying Condensed Consolidated Balance Sheet. Real estate loan Barnwell, together with its real estate joint venture, Kaupulehu 2007, had a non-revolving real estate loan with a Hawaii bank. At September 30, 2015, the balance of the real estate loan was $3,440,000 . In April 2016, the home collateralizing the loan was sold and in accordance with the terms of the loan agreement a portion of the proceeds from the sale was used to repay the real estate loan in full. |
RETIREMENT PLANS
RETIREMENT PLANS | 9 Months Ended |
Jun. 30, 2016 | |
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 tables detail the components of net periodic benefit cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 65,000 $ 64,000 $ 19,000 $ 15,000 $ — $ — Interest cost 91,000 89,000 24,000 19,000 14,000 13,000 Expected return on plan assets (139,000 ) (125,000 ) — — — — Amortization of prior service cost (credit) 2,000 1,000 (2,000 ) (1,000 ) — — Amortization of net actuarial loss (gain) 38,000 21,000 12,000 6,000 — (1,000 ) Net periodic benefit cost $ 57,000 $ 50,000 $ 53,000 $ 39,000 $ 14,000 $ 12,000 Pension Plan SERP Postretirement Medical Nine months ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 195,000 $ 192,000 $ 51,000 $ 46,000 $ — $ — Interest cost 273,000 267,000 64,000 57,000 42,000 39,000 Expected return on plan assets (363,000 ) (375,000 ) — — — — Amortization of prior service cost (credit) 4,000 4,000 (4,000 ) (3,000 ) — — Amortization of net actuarial loss (gain) 106,000 64,000 21,000 18,000 — (4,000 ) Net periodic benefit cost $ 215,000 $ 152,000 $ 132,000 $ 118,000 $ 42,000 $ 35,000 Barnwell contributed $1,100,000 to the Pension Plan during the nine months ended June 30, 2016 and estimates that it will make no further contributions during the remainder of fiscal 2016. 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 2016 and expected payments under the SERP for fiscal 2016 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, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests, are as follows: Three months ended Nine months ended 2016 2015 2016 2015 United States $ 2,201,000 $ 1,684,000 $ 793,000 $ 1,269,000 Canada (1,498,000 ) (853,000 ) (3,564,000 ) (2,622,000 ) $ 703,000 $ 831,000 $ (2,771,000 ) $ (1,353,000 ) The components of the income tax provision (benefit) are as follows: Three months ended Nine months ended 2016 2015 2016 2015 Current $ (159,000 ) $ (289,000 ) $ (527,000 ) $ (636,000 ) Deferred 87,000 149,000 (2,000 ) 796,000 $ (72,000 ) $ (140,000 ) $ (529,000 ) $ 160,000 In the second quarter of fiscal 2015, Barnwell determined that it was not more likely than not that all of our oil and natural gas deferred tax assets under Canadian tax law were realizable due to significant declines in oil and natural gas prices, which in turn restricted funds available for the oil and natural gas capital expenditures needed to replace production and abate declining reserves. As a result the Company recorded a valuation allowance for the portion of Canadian tax law deferred tax assets related to asset retirement obligations that may not be realizable. The change in the valuation allowance included in the deferred income tax provision (benefit) for the three and nine months ended June 30, 2016 , was a charge of $235,000 and $373,000 , respectively. The change in the valuation allowance included in the deferred income tax provision for the three and nine months ended June 30, 2015 was a charge of $78,000 and $863,000 , respectively. 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 include the aforementioned valuation allowances for a portion of deferred tax assets under Canadian tax law. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Barnwell operates the following segments: 1) acquiring, developing, 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 2016 2015 2016 2015 Revenues: Oil and natural gas $ 768,000 $ 2,196,000 $ 2,237,000 $ 7,260,000 Land investment 1,502,000 1,266,000 1,915,000 3,115,000 Contract drilling 120,000 1,415,000 1,502,000 3,839,000 Residential real estate 5,700,000 — 5,700,000 — Other 109,000 35,000 198,000 189,000 Total before interest income 8,199,000 4,912,000 11,552,000 14,403,000 Interest income 17,000 19,000 39,000 52,000 Total revenues $ 8,216,000 $ 4,931,000 $ 11,591,000 $ 14,455,000 Depletion, depreciation, and amortization: Oil and natural gas $ 351,000 $ 707,000 $ 930,000 $ 2,362,000 Contract drilling 64,000 66,000 187,000 207,000 Other 33,000 28,000 84,000 79,000 Total depletion, depreciation, and amortization $ 448,000 $ 801,000 $ 1,201,000 $ 2,648,000 Impairment: Oil and natural gas $ 1,154,000 $ — $ 1,154,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ (1,494,000 ) $ (46,000 ) $ (2,357,000 ) $ (78,000 ) Land investment 1,502,000 1,266,000 1,915,000 3,115,000 Contract drilling (207,000 ) 534,000 (116,000 ) 820,000 Residential real estate 190,000 — 190,000 — Other 76,000 7,000 114,000 110,000 Gain on sales of assets 472,000 272,000 472,000 272,000 Total operating profit 539,000 2,033,000 218,000 4,239,000 Equity in income of affiliates: Land investment 2,200,000 988,000 2,616,000 1,444,000 General and administrative expenses (1,436,000 ) (1,891,000 ) (4,805,000 ) (6,270,000 ) Interest expense (19,000 ) (76,000 ) (85,000 ) (248,000 ) Interest income 17,000 19,000 39,000 52,000 Earnings (loss) before income taxes $ 1,301,000 $ 1,073,000 $ (2,017,000 ) $ (783,000 ) Assets By Segment: June 30, September 30, 2015 Oil and natural gas (1) $ 6,364,000 $ 7,298,000 Land investment (2) 4,736,000 7,480,000 Contract drilling (2) 1,482,000 2,338,000 Residential real estate (2) — 5,132,000 Other: Cash and cash equivalents 17,433,000 8,471,000 Restricted cash 384,000 7,577,000 Corporate and other 3,189,000 3,257,000 Total $ 33,588,000 $ 41,553,000 ______________ (1) Primarily located in the province of Alberta, Canada. (2) Located in Hawaii. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 9 Months Ended |
Jun. 30, 2016 | |
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 2016 2015 2016 2015 Foreign currency translation: Beginning accumulated foreign currency translation $ 935,000 $ 513,000 $ 819,000 $ 1,692,000 Change in cumulative translation adjustment before reclassifications (3,000 ) 121,000 113,000 (1,204,000 ) Amounts reclassified from accumulated other comprehensive income — 11,000 — 157,000 Income taxes — — — — Net current period other comprehensive income (loss) (3,000 ) 132,000 113,000 (1,047,000 ) Ending accumulated foreign currency translation 932,000 645,000 932,000 645,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,864,000 ) (1,897,000 ) (2,941,000 ) (1,950,000 ) Amortization of net actuarial loss and prior service cost 50,000 26,000 127,000 79,000 Income taxes — — — — Net current period other comprehensive income 50,000 26,000 127,000 79,000 Ending accumulated retirement plans benefit cost (2,814,000 ) (1,871,000 ) (2,814,000 ) (1,871,000 ) Accumulated other comprehensive loss, net of taxes $ (1,882,000 ) $ (1,226,000 ) $ (1,882,000 ) $ (1,226,000 ) The realized foreign currency transaction loss related to the repayment of debt during the nine months ended June 30, 2015 was reclassified from accumulated other comprehensive loss 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 is 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, 2016 | |
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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental Matters In January 2015, there was an oil and saltwater release from one of our operated oil pipelines 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, 2016 , we have collected $1,103,000 in insurance proceeds. The estimated remaining unpaid liability for the release as of June 30, 2016 and September 30, 2015 was $77,000 and $75,000 , respectively, and has not been discounted and was accrued in "Accrued operating and other expenses" on the Condensed Consolidated Balance Sheets. In February 2016, a gas migration was detected at one of our previously abandoned non-operated wells in Alberta, Canada. We have estimated that probable environmental remediation costs will be within the range of $400,000 to $800,000 . Barnwell’s working interest in the well is 50% , and accordingly we accrued approximately $200,000 at June 30, 2016 , which has not been discounted and was 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. Other Matters In June 2016, Barnwell received an assessment for underpaid royalties for one of our non-operated oil and natural gas properties for the period from January 2008 to present. Upon further investigation we noted that the royalty owner had been assessing us for royalties based on its incorrectly calculated royalty interest percentage during the subject period. The royalty owner has assessed $233,000 for its under-billed royalties and the full amount is accrued in "Accounts payable" on the Condensed Consolidated Balance Sheets at June 30, 2016, with a corresponding charge to "Oil and natural gas" revenues on the Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2016. 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, 2016 | |
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 2016 2015 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ 82,000 $ 235,000 Income taxes refunded $ (377,000 ) $ — 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 decreased $89,000 and increased $95,000 during the nine months ended June 30, 2016 and 2015 , respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $123,000 and $938,000 during the nine months ended June 30, 2016 and 2015 , respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2016 | |
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 lots in Increment I from KD I and the sales of lots and/or residential units in Increment II from KD II; KD I and KD II are part of the Kukio Resort land development partnerships in which Barnwell holds an indirect 19.6% non-controlling ownership interest accounted for under the equity method of investment. The percentage payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort land development partnerships. During the nine months ended June 30, 2016 , Barnwell received a total of $2,255,000 in percentage of sales payments from KD I and KD II from the sale of three lots within Phase II of Increment I and the sale of one lot within Increment II. 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS There were no material subsequent events that would require recognition or disclosure in the accompanying consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2016 | |
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, 2015 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2015 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, 2016 , results of operations, comprehensive income (loss), and equity for the three and nine months ended June 30, 2016 and 2015 , and cash flows for the nine months ended June 30, 2016 and 2015 , have been made. The results of operations for the period ended June 30, 2016 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU relates to discontinued operations reporting for disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The Company adopted the provisions of this ASU effective October 1, 2015. 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, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliations between net earnings (loss) attributable to the entity's stockholders and common shares outstanding of the basic and diluted net earnings (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, 2016 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 775,000 8,277,160 $ 0.09 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 775,000 8,277,160 $ 0.09 Nine months ended June 30, 2016 Net Loss Shares Per-Share Basic net loss per share $ (2,242,000 ) 8,277,160 $ (0.27 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (2,242,000 ) 8,277,160 $ (0.27 ) 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 (Numerator) Shares (Denominator) Per-Share Amount 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 ) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Investments, All Other Investments [Abstract] | |
Summary of investments | A summary of Barnwell’s investments is as follows: June 30, September 30, Investment in Kukio Resort land development partnerships $ 3,494,000 $ 6,238,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 3,544,000 $ 6,288,000 |
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, 2016 Three months ended June 30, 2015 Revenue $ 23,584,000 $ 12,078,000 Gross profit $ 10,732,000 $ 5,285,000 Net earnings $ 10,029,000 $ 4,215,000 Nine months ended June 30, 2016 Nine months ended June 30, 2015 Revenue $ 31,703,000 $ 22,785,000 Gross profit $ 14,186,000 $ 9,694,000 Net earnings $ 12,020,000 $ 6,779,000 |
Kaupulehu Developments | |
INVESTMENTS | |
Summary of Increment I and Increment II percentage of sales payment revenues received | The following table summarizes the total of Increment I and Increment II percentage of sales payment revenues received from KD I and KD II: Three months ended Nine months ended 2016 2015 2016 2015 Sale of interest in leasehold land: Proceeds $ 1,775,000 $ 1,473,000 $ 2,255,000 $ 3,623,000 Fees (273,000 ) (207,000 ) (340,000 ) (508,000 ) Revenues – sale of interest in leasehold land, net $ 1,502,000 $ 1,266,000 $ 1,915,000 $ 3,115,000 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of net periodic benefit cost | The following tables detail the components of net periodic benefit cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 65,000 $ 64,000 $ 19,000 $ 15,000 $ — $ — Interest cost 91,000 89,000 24,000 19,000 14,000 13,000 Expected return on plan assets (139,000 ) (125,000 ) — — — — Amortization of prior service cost (credit) 2,000 1,000 (2,000 ) (1,000 ) — — Amortization of net actuarial loss (gain) 38,000 21,000 12,000 6,000 — (1,000 ) Net periodic benefit cost $ 57,000 $ 50,000 $ 53,000 $ 39,000 $ 14,000 $ 12,000 Pension Plan SERP Postretirement Medical Nine months ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 195,000 $ 192,000 $ 51,000 $ 46,000 $ — $ — Interest cost 273,000 267,000 64,000 57,000 42,000 39,000 Expected return on plan assets (363,000 ) (375,000 ) — — — — Amortization of prior service cost (credit) 4,000 4,000 (4,000 ) (3,000 ) — — Amortization of net actuarial loss (gain) 106,000 64,000 21,000 18,000 — (4,000 ) Net periodic benefit cost $ 215,000 $ 152,000 $ 132,000 $ 118,000 $ 42,000 $ 35,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | The components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests, are as follows: Three months ended Nine months ended 2016 2015 2016 2015 United States $ 2,201,000 $ 1,684,000 $ 793,000 $ 1,269,000 Canada (1,498,000 ) (853,000 ) (3,564,000 ) (2,622,000 ) $ 703,000 $ 831,000 $ (2,771,000 ) $ (1,353,000 ) |
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 2016 2015 2016 2015 Current $ (159,000 ) $ (289,000 ) $ (527,000 ) $ (636,000 ) Deferred 87,000 149,000 (2,000 ) 796,000 $ (72,000 ) $ (140,000 ) $ (529,000 ) $ 160,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
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 2016 2015 2016 2015 Revenues: Oil and natural gas $ 768,000 $ 2,196,000 $ 2,237,000 $ 7,260,000 Land investment 1,502,000 1,266,000 1,915,000 3,115,000 Contract drilling 120,000 1,415,000 1,502,000 3,839,000 Residential real estate 5,700,000 — 5,700,000 — Other 109,000 35,000 198,000 189,000 Total before interest income 8,199,000 4,912,000 11,552,000 14,403,000 Interest income 17,000 19,000 39,000 52,000 Total revenues $ 8,216,000 $ 4,931,000 $ 11,591,000 $ 14,455,000 Depletion, depreciation, and amortization: Oil and natural gas $ 351,000 $ 707,000 $ 930,000 $ 2,362,000 Contract drilling 64,000 66,000 187,000 207,000 Other 33,000 28,000 84,000 79,000 Total depletion, depreciation, and amortization $ 448,000 $ 801,000 $ 1,201,000 $ 2,648,000 Impairment: Oil and natural gas $ 1,154,000 $ — $ 1,154,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ (1,494,000 ) $ (46,000 ) $ (2,357,000 ) $ (78,000 ) Land investment 1,502,000 1,266,000 1,915,000 3,115,000 Contract drilling (207,000 ) 534,000 (116,000 ) 820,000 Residential real estate 190,000 — 190,000 — Other 76,000 7,000 114,000 110,000 Gain on sales of assets 472,000 272,000 472,000 272,000 Total operating profit 539,000 2,033,000 218,000 4,239,000 Equity in income of affiliates: Land investment 2,200,000 988,000 2,616,000 1,444,000 General and administrative expenses (1,436,000 ) (1,891,000 ) (4,805,000 ) (6,270,000 ) Interest expense (19,000 ) (76,000 ) (85,000 ) (248,000 ) Interest income 17,000 19,000 39,000 52,000 Earnings (loss) before income taxes $ 1,301,000 $ 1,073,000 $ (2,017,000 ) $ (783,000 ) Assets By Segment: June 30, September 30, 2015 Oil and natural gas (1) $ 6,364,000 $ 7,298,000 Land investment (2) 4,736,000 7,480,000 Contract drilling (2) 1,482,000 2,338,000 Residential real estate (2) — 5,132,000 Other: Cash and cash equivalents 17,433,000 8,471,000 Restricted cash 384,000 7,577,000 Corporate and other 3,189,000 3,257,000 Total $ 33,588,000 $ 41,553,000 ______________ (1) Primarily located in the province of Alberta, Canada. (2) Located in Hawaii. |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
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 2016 2015 2016 2015 Foreign currency translation: Beginning accumulated foreign currency translation $ 935,000 $ 513,000 $ 819,000 $ 1,692,000 Change in cumulative translation adjustment before reclassifications (3,000 ) 121,000 113,000 (1,204,000 ) Amounts reclassified from accumulated other comprehensive income — 11,000 — 157,000 Income taxes — — — — Net current period other comprehensive income (loss) (3,000 ) 132,000 113,000 (1,047,000 ) Ending accumulated foreign currency translation 932,000 645,000 932,000 645,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,864,000 ) (1,897,000 ) (2,941,000 ) (1,950,000 ) Amortization of net actuarial loss and prior service cost 50,000 26,000 127,000 79,000 Income taxes — — — — Net current period other comprehensive income 50,000 26,000 127,000 79,000 Ending accumulated retirement plans benefit cost (2,814,000 ) (1,871,000 ) (2,814,000 ) (1,871,000 ) Accumulated other comprehensive loss, net of taxes $ (1,882,000 ) $ (1,226,000 ) $ (1,882,000 ) $ (1,226,000 ) |
INFORMATION RELATING TO THE C34
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) | 9 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Nine months ended 2016 2015 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ 82,000 $ 235,000 Income taxes refunded $ (377,000 ) $ — Supplemental disclosure of non-cash investing and financing activities: Note receivable for sale of investment $ — $ 907,000 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Jun. 30, 2016venture | |
Principles of Consolidation | |
Number of 80%-owned joint ventures | 2 |
Kaupulehu Developments | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 77.60% |
KD Kona 2013 LLLP | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 75.00% |
Kaupulehu 2007, LLLP | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 80.00% |
Kaupulehu Investors, LLC | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 80.00% |
LIQUIDITY - CREDIT FACILITY (De
LIQUIDITY - CREDIT FACILITY (Details) CAD in Thousands, $ in Thousands | Jun. 30, 2016CAD | Jun. 30, 2016USD ($) | Sep. 30, 2015CAD |
Canadian revolving credit facility | |||
Revolving Demand Facility | |||
Maximum borrowing capacity | CAD 1,000 | ||
Revolving Demand Facility | |||
Revolving Demand Facility | |||
Maximum borrowing capacity | CAD 500 | $ 384 | |
Restricted Cash and Cash Equivalents | CAD 500 |
LIQUIDITY - REAL ESTATE AND LAN
LIQUIDITY - REAL ESTATE AND LAND INVESTMENT (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016USD ($)lot | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Investment Holdings [Line Items] | |||||
Residential real estate | $ 5,700,000 | $ 0 | $ 5,700,000 | $ 0 | |
Investment in land development partnerships | |||||
Investment Holdings [Line Items] | |||||
Number of single family lots sold | lot | 1 | ||||
Gross proceeds from sale of lot by equity investee | $ 20,000,000 | ||||
Cash distribution from equity investees | 5,320,000 | ||||
Minority Interest portion of the distribution from equity investee | 40,000 | ||||
Kaupulehu 2007, LLLP | |||||
Investment Holdings [Line Items] | |||||
Residential real estate | 5,700,000 | ||||
Net Cash Received On Sale Of Real Estate | 1,500,000 | ||||
Kaupulehu Developments | |||||
Investment Holdings [Line Items] | |||||
Percentage of sales payment received | $ 1,775,000 | $ 1,473,000 | $ 2,255,000 | $ 3,623,000 | |
Kaupulehu Developments | Increment II | |||||
Investment Holdings [Line Items] | |||||
Percentage of sales payment received | $ 1,600,000 |
LIQUIDITY - CASH AND WORKING CA
LIQUIDITY - CASH AND WORKING CAPITAL (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 |
LIQUIDITY [Line Items] | ||||
Cash and cash equivalents | $ 17,433 | $ 8,471 | $ 8,695 | $ 16,104 |
Cash and working capital [Member] | ||||
LIQUIDITY [Line Items] | ||||
Cash and cash equivalents | 17,433 | |||
Working Capital | $ 17,107 |
EARNINGS (LOSS) PER COMMON SH39
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Earnings (Loss) (Numerator) | ||||
Basic | $ 775 | $ 971 | $ (2,242) | $ (1,513) |
Effect of dilutive securities - common stock options | 0 | 0 | 0 | 0 |
Diluted | $ 775 | $ 971 | $ (2,242) | $ (1,513) |
Shares (Denominator) | ||||
Basic (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
Effect of dilutive securities - common stock options (in shares) | 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) | $ 0.09 | $ 0.12 | $ (0.27) | $ (0.18) |
Diluted net earnings (loss) per share (in dollars per share) | $ 0.09 | $ 0.12 | $ (0.27) | $ (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 | 621,250 | 621,250 | 621,250 |
INVESTMENT HELD FOR SALE (Detai
INVESTMENT HELD FOR SALE (Details) - Residential Parcel $ in Thousands | Jun. 30, 2016parcel | Oct. 31, 2014USD ($) |
Investment Holdings [Line Items] | ||
Number of Real Estate Properties | parcel | 1 | |
Proceeds from sale of residential parcel | $ | $ 1,250 |
REAL ESTATE HELD FOR SALE (Deta
REAL ESTATE HELD FOR SALE (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Real estate held for sale | |||||
Residential real estate | $ 5,700 | $ 0 | $ 5,700 | $ 0 | |
Operating profit (loss) | $ 539 | $ 2,033 | 218 | $ 4,239 | |
Kaupulehu 2007, LLLP | |||||
Real estate held for sale | |||||
Residential real estate | $ 5,700 | ||||
Operating profit (loss) | $ 190 |
SUMMARY OF INVESTMENTS (Details
SUMMARY OF INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Sep. 30, 2015 |
Investment Holdings [Line Items] | ||
Investments | $ 3,544 | $ 6,288 |
Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Investments | 3,494 | 6,238 |
Investment in leasehold land interest - Lot 4C | ||
Investment Holdings [Line Items] | ||
Investments | $ 50 | $ 50 |
INVESTMENTS - LAND DEVELOPMENT
INVESTMENTS - LAND DEVELOPMENT PARTNERSHIPS (Details) | Nov. 27, 2013USD ($)partnership | Apr. 30, 2016USD ($)lot | Jun. 30, 2016USD ($)lot | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)lot | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($) |
Investment Holdings [Line Items] | |||||||
Equity in income of affiliates | $ 2,200,000 | $ 988,000 | $ 2,616,000 | $ 1,444,000 | |||
Investments | 3,544,000 | 3,544,000 | $ 6,288,000 | ||||
Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of limited liability limited partnerships formed | partnership | 2 | ||||||
Number of single family lots sold | lot | 1 | ||||||
Gross proceeds from sale of lot by equity investee | $ 20,000,000 | ||||||
Cash distribution from equity investees | 5,320,000 | ||||||
Minority Interest portion of the distribution from equity investee | $ 40,000 | ||||||
Difference between carrying amount and underlying equity | 356,000 | 356,000 | |||||
Basis difference adjustment | 17,000 | 74,000 | 34,000 | 74,000 | |||
Bonds issued by the surety | 4,144,000 | 4,144,000 | |||||
Maximum loss exposure | 7,638,000 | 7,638,000 | |||||
Investments | 3,494,000 | 3,494,000 | $ 6,238,000 | ||||
Revenue | 23,584,000 | 12,078,000 | 31,703,000 | 22,785,000 | |||
Gross profit | 10,732,000 | 5,285,000 | 14,186,000 | 9,694,000 | |||
Net earnings (loss) | $ 10,029,000 | $ 4,215,000 | $ 12,020,000 | $ 6,779,000 | |||
K D Kukio Resorts L L L P | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
K D Maniniowali L L L P | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
KD Kaupulehu, LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
Indirectly Acquired Interest | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Aggregate cost | $ 5,140,000 | ||||||
KD Kaupulehu LLLP Increment I | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of residential lots remaining to be sold | lot | 25 | 25 | |||||
KD Kaupulehu LLLP Increment II | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of residential lots remaining to be sold | lot | 1 | 1 | |||||
K D Maniniowali L L L P | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of residential lots remaining to be sold | lot | 1 | 1 |
INVESTMENTS - PERCENTAGE OF SAL
INVESTMENTS - PERCENTAGE OF SALES PAYMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016USD ($)aincrement | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)a | Jun. 30, 2015USD ($) | |
Investment Holdings [Line Items] | ||||
Sale of interest in leasehold land, net | $ 1,502 | $ 1,266 | $ 1,915 | $ 3,115 |
Kaupulehu Developments | ||||
Investment Holdings [Line Items] | ||||
Area of land (in acres) | a | 870 | 870 | ||
Number of development increments | increment | 2 | |||
Fees Related to Sale of Interest in Leasehold Land | $ (273) | (207) | $ (340) | (508) |
Sale of interest in leasehold land, net | 1,502 | 1,266 | 1,915 | 3,115 |
Percentage of sales payment received | $ 1,775 | $ 1,473 | $ 2,255 | $ 3,623 |
Land Interest | ||||
Investment Holdings [Line Items] | ||||
Area of land (in acres) | a | 1,000 | 1,000 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | |
Oil and Natural Gas Properties [Line Items] | |||||
Impairment of oil and natural gas properties | $ 1,154 | $ 0 | $ 1,154 | $ 0 | |
Gain on sale of oil and natural gas properties | 472 | $ 0 | |||
Oil and Gas Properties [Member] | Dunvegan area of Alberta [Member] | |||||
Oil and Natural Gas Properties [Line Items] | |||||
Gain on sale of oil and natural gas properties | $ 472 | $ 472 | |||
Cumulative gain on sale of oil and natural gas property | $ 6,689 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) CAD in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016CAD | Jun. 30, 2016USD ($) | Sep. 30, 2015CAD | Sep. 30, 2015USD ($) | |
Long-term debt | |||||||
Foreign currency transaction loss | $ 0 | $ (157) | |||||
Canadian revolving credit facility | |||||||
Long-term debt | |||||||
Long-term debt | $ 0 | ||||||
Maximum borrowing capacity | CAD | CAD 1,000 | ||||||
Repayments of lines of credit | $ 200 | 2,200 | |||||
Foreign currency transaction loss | $ 11 | $ 157 | |||||
Revolving Demand Facility | |||||||
Long-term debt | |||||||
Long-term debt | $ 0 | ||||||
Letters of Credit Outstanding, Amount | 35 | ||||||
Maximum borrowing capacity | CAD 500 | $ 384 | |||||
Real estate loan | |||||||
Long-term debt | |||||||
Long-term debt | $ 3,440 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Plan | ||||
Net periodic benefit cost: | ||||
Service cost | $ 65 | $ 64 | $ 195 | $ 192 |
Interest cost | 91 | 89 | 273 | 267 |
Expected return on plan assets | (139) | (125) | (363) | (375) |
Amortization of prior service cost (credit) | 2 | 1 | 4 | 4 |
Amortization of net actuarial loss (gain) | 38 | 21 | 106 | 64 |
Net periodic benefit cost | 57 | 50 | 215 | 152 |
Other disclosures | ||||
Contribution by the entity to the Pension Plan | 1,100 | |||
Estimated future employer contributions | 0 | |||
SERP | ||||
Net periodic benefit cost: | ||||
Service cost | 19 | 15 | 51 | 46 |
Interest cost | 24 | 19 | 64 | 57 |
Amortization of prior service cost (credit) | (2) | (1) | (4) | (3) |
Amortization of net actuarial loss (gain) | 12 | 6 | 21 | 18 |
Net periodic benefit cost | 53 | 39 | 132 | 118 |
Postretirement Medical | ||||
Net periodic benefit cost: | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 14 | 13 | 42 | 39 |
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | 0 | (1) | 0 | (4) |
Net periodic benefit cost | $ 14 | $ 12 | $ 42 | $ 35 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | ||||
United States | $ 2,201 | $ 1,684 | $ 793 | $ 1,269 |
Canada | (1,498) | (853) | (3,564) | (2,622) |
Total | 703 | 831 | (2,771) | (1,353) |
Components of the income tax provision (benefit) | ||||
Current | (159) | (289) | (527) | (636) |
Deferred | 87 | 149 | (2) | 796 |
Total | (72) | (140) | (529) | 160 |
Foreign Tax Authority | ||||
Components of the income tax provision (benefit) | ||||
Increase in valuation allowance, amount | $ 235 | $ 78 | $ 373 | $ 863 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Revenues: | |||||
Revenues | $ 8,199,000 | $ 4,912,000 | $ 11,552,000 | $ 14,403,000 | |
Interest income | 17,000 | 19,000 | 39,000 | 52,000 | |
Total revenues | 8,216,000 | 4,931,000 | 11,591,000 | 14,455,000 | |
Depletion, depreciation, and amortization: | |||||
Depletion, depreciation, and amortization | 448,000 | 801,000 | 1,201,000 | 2,648,000 | |
Impairment | |||||
Impairment of oil and natural gas properties | 1,154,000 | 0 | 1,154,000 | 0 | |
Operating profit (loss) (before general and administrative expenses): | |||||
Operating profit (loss) | 539,000 | 2,033,000 | 218,000 | 4,239,000 | |
Equity in income of affiliates: | |||||
Equity in income of affiliates | 2,200,000 | 988,000 | 2,616,000 | 1,444,000 | |
General and administrative expenses | (1,436,000) | (1,891,000) | (4,805,000) | (6,270,000) | |
Interest expense | (19,000) | (76,000) | (85,000) | (248,000) | |
Interest income | 17,000 | 19,000 | 39,000 | 52,000 | |
Earnings (loss) before income taxes | 1,301,000 | 1,073,000 | (2,017,000) | (783,000) | |
Assets By Segment | |||||
Total assets | 33,588,000 | 33,588,000 | $ 41,553,000 | ||
Land investment | |||||
Equity in income of affiliates: | |||||
Equity in income of affiliates | 2,200,000 | 988,000 | 2,616,000 | 1,444,000 | |
Intersegment Eliminations | |||||
Revenues: | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Oil and natural gas | |||||
Revenues: | |||||
Revenues | 768,000 | 2,196,000 | 2,237,000 | 7,260,000 | |
Depletion, depreciation, and amortization: | |||||
Depletion, depreciation, and amortization | 351,000 | 707,000 | 930,000 | 2,362,000 | |
Impairment | |||||
Impairment of oil and natural gas properties | 1,154,000 | 0 | 1,154,000 | 0 | |
Operating profit (loss) (before general and administrative expenses): | |||||
Operating profit (loss) | (1,494,000) | (46,000) | (2,357,000) | (78,000) | |
Assets By Segment | |||||
Total assets | 6,364,000 | 6,364,000 | 7,298,000 | ||
Operating Segments | Land investment | |||||
Revenues: | |||||
Revenues | 1,502,000 | 1,266,000 | 1,915,000 | 3,115,000 | |
Operating profit (loss) (before general and administrative expenses): | |||||
Operating profit (loss) | 1,502,000 | 1,266,000 | 1,915,000 | 3,115,000 | |
Assets By Segment | |||||
Total assets | 4,736,000 | 4,736,000 | 7,480,000 | ||
Operating Segments | Contract drilling | |||||
Revenues: | |||||
Revenues | 120,000 | 1,415,000 | 1,502,000 | 3,839,000 | |
Depletion, depreciation, and amortization: | |||||
Depletion, depreciation, and amortization | 64,000 | 66,000 | 187,000 | 207,000 | |
Operating profit (loss) (before general and administrative expenses): | |||||
Operating profit (loss) | (207,000) | 534,000 | (116,000) | 820,000 | |
Assets By Segment | |||||
Total assets | 1,482,000 | 1,482,000 | 2,338,000 | ||
Operating Segments | Residential real estate segment | |||||
Revenues: | |||||
Revenues | 5,700,000 | 0 | 5,700,000 | 0 | |
Operating profit (loss) (before general and administrative expenses): | |||||
Operating profit (loss) | 190,000 | 0 | 190,000 | 0 | |
Assets By Segment | |||||
Total assets | 0 | 0 | 5,132,000 | ||
Corporate and other | |||||
Revenues: | |||||
Revenues | 109,000 | 35,000 | 198,000 | 189,000 | |
Depletion, depreciation, and amortization: | |||||
Depletion, depreciation, and amortization | 33,000 | 28,000 | 84,000 | 79,000 | |
Assets By Segment | |||||
Total assets | 3,189,000 | 3,189,000 | 3,257,000 | ||
Corporate and other | Cash and Cash Equivalents | |||||
Assets By Segment | |||||
Total assets | 17,433,000 | 17,433,000 | 8,471,000 | ||
Corporate and other | Restricted Cash | |||||
Assets By Segment | |||||
Total assets | 384,000 | 384,000 | $ 7,577,000 | ||
Other operating profit (loss) | Corporate and other | |||||
Operating profit (loss) (before general and administrative expenses): | |||||
Operating profit (loss) | 76,000 | 7,000 | 114,000 | 110,000 | |
Gain (Loss) on Sale of Assets | Corporate and other | |||||
Operating profit (loss) (before general and administrative expenses): | |||||
Operating profit (loss) | $ 472,000 | $ 272,000 | $ 472,000 | $ 272,000 |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2015 | |
Changes in foreign currency translation | |||||
Beginning accumulated foreign currency translation | $ 935 | $ 513 | $ 819 | $ 1,692 | |
Change in cumulative translation adjustment before reclassifications | (3) | 121 | 113 | (1,204) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 11 | 0 | 157 | |
Income taxes | 0 | 0 | 0 | 0 | |
Net current period other comprehensive income (loss) | (3) | 132 | 113 | (1,047) | |
Ending accumulated foreign currency translation | 932 | 645 | 932 | 645 | |
Changes in retirement plans | |||||
Beginning accumulated retirement plans benefit cost | (2,864) | (1,897) | (2,941) | (1,950) | |
Amortization of net actuarial loss and prior service cost | 50 | 26 | 127 | 79 | |
Income taxes | 0 | 0 | 0 | 0 | |
Net current period other comprehensive income | 50 | 26 | 127 | 79 | |
Ending accumulated retirement plans benefit cost | (2,814) | (1,871) | (2,814) | (1,871) | |
Accumulated other comprehensive loss, net of taxes | $ (1,882) | $ (1,226) | $ (1,882) | $ (1,226) | $ (2,122) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2015 | |
Oil pipeline release | ||
Oil and Natural Gas Properties [Line Items] | ||
Estimate of probable loss | $ 2,300 | |
Percentage of working interest | 58.00% | |
Insurance deductible | $ 80 | |
Insurance Recoveries | 1,103 | |
Loss contingency accrual | $ 77 | $ 75 |
Gas leak | ||
Oil and Natural Gas Properties [Line Items] | ||
Percentage of working interest | 50.00% | |
Loss contingency accrual | $ 200 | |
Range of possible loss, minimum | 400 | |
Range of possible loss, maximum | 800 | |
Accrued Liabilities | ||
Oil and Natural Gas Properties [Line Items] | ||
Accrued Royalties | $ 233 |
INFORMATION RELATING TO THE C52
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental disclosure of cash flow information: | ||
Interest | $ 82 | $ 235 |
Income Taxes Paid (Refunded), Net | (377) | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Note receivable for sale of investment | 0 | 907 |
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 | (89) | 95 |
Increase (Decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations | $ 123 | $ 938 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016USD ($)lot | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)lot | Jun. 30, 2015USD ($)lot | |
Investment in land development partnerships | |||||
Related party transactions | |||||
Number of single family lots sold | 1 | ||||
Kaupulehu Developments | |||||
Related party transactions | |||||
Percentage of sales payment received | $ | $ 1,775 | $ 1,473 | $ 2,255 | $ 3,623 | |
Kaupulehu Developments | Increment II | |||||
Related party transactions | |||||
Percentage of sales payment received | $ | $ 1,600 | ||||
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | |||||
Related party transactions | |||||
Ownership interest acquired | 19.60% | 19.60% | |||
Percentage of sales payment received | $ | $ 2,255 | $ 3,623 | |||
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | increment I | Phase II | |||||
Related party transactions | |||||
Number of single family lots sold | 3 | 10 | |||
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | increment I | Phase I | |||||
Related party transactions | |||||
Number of single family lots sold | 6 | ||||
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | Increment II | |||||
Related party transactions | |||||
Number of single family lots sold | 1 |