Barnwell Industries (BRN) 10-Q 12 Feb 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Feb. 08, 2018
Document and Entity Information
Entity Registrant Name	BARNWELL INDUSTRIES INC
Entity Central Index Key	10,048
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
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	2,018
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 12,764	$ 16,281
Certificates of deposit	5,157	4,413
Accounts and other receivables, net of allowance for doubtful accounts of: $36,000 at December 31, 2017; $46,000 at September 30, 2017	1,820	1,414
Income taxes receivable	1,295	1,145
Investment held for sale	1,037	1,037
Other current assets	1,245	852
Total current assets	23,318	25,142
Income taxes receivable, net of current portion	460	0
Deferred income tax assets	219	300
Investments	2,056	2,209
Property and equipment	79,274	79,231
Accumulated depletion, depreciation, and amortization	(74,096)	(73,862)
Property and equipment, net	5,178	5,369
Total assets	31,231	33,020
Current liabilities:
Accounts payable	1,367	1,185
Accrued capital expenditures	378	348
Accrued compensation	380	390
Accrued operating and other expenses	1,046	1,386
Current portion of asset retirement obligation	1,092	1,231
Other current liabilities	465	258
Total current liabilities	4,728	4,798
Deferred rent	43	21
Liability for retirement benefits	4,180	4,150
Asset retirement obligation	5,391	5,632
Deferred income tax liabilities	227	236
Total liabilities	14,569	14,837
Commitments and contingencies
Equity:
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 8,445,060 issued at December 31, 2017 and September 30, 2017	4,223	4,223
Additional paid-in capital	1,351	1,350
Retained earnings	14,006	15,023
Accumulated other comprehensive loss, net	(1,040)	(1,058)
Treasury stock, at cost: 167,900 shares at December 31, 2017 and September 30, 2017	(2,286)	(2,286)
Total stockholders' equity	16,254	17,252
Non-controlling interests	408	931
Total equity	16,662	18,183
Total liabilities and equity	$ 31,231	$ 33,020

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 36	$ 46
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
	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Oil and natural gas	$ 953	$ 1,141
Contract drilling	842	1,406
Sale of interest in leasehold land	0	1,678
Gas processing and other	61	65
Total revenues	1,856	4,290
Costs and expenses:
Oil and natural gas operating	658	846
Contract drilling operating	821	1,164
General and administrative	1,481	2,027
Depletion, depreciation, and amortization	280	324
Total costs and expenses	3,240	4,361
Loss before equity in (loss) income of affiliates and income taxes	(1,384)	(71)
Equity in (loss) income of affiliates	(153)	2,326
(Loss) earnings before income taxes	(1,537)	2,255
Income tax (benefit) provision	(503)	53
Net (loss) earnings	(1,034)	2,202
Less: Net (loss) earnings attributable to non-controlling interests	(17)	561
Net (loss) earnings attributable to Barnwell Industries, Inc.	$ (1,017)	$ 1,641
Basic and diluted net (loss) earnings per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share)	$ (0.12)	$ 0.20
Weighted-average number of common shares outstanding:
Basic and diluted (in shares)	8,277,160	8,277,160

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net (loss) earnings	$ (1,034)	$ 2,202
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $0	(6)	(70)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	24	97
Total other comprehensive income	18	27
Total comprehensive (loss) income	(1,016)	2,229
Less: Comprehensive (loss) income attributable to non-controlling interests	(17)	561
Comprehensive (loss) income attributable to Barnwell Industries, Inc.	$ (999)	$ 1,668

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, taxes	$ 0	$ 0
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME7

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, 2016		8,277,160
Balance, beginning of period at Sep. 30, 2016	$ 13,744	$ 4,223	$ 1,345	$ 13,852	$ (3,920)	$ (2,286)	$ 530
Increase (Decrease) in Stockholders' Equity
Distributions to non-controlling interests	(54)						(54)
Net earnings (loss)	2,202			1,641			561
Share-based compensation	2		2
Foreign currency translation adjustments, net of taxes of $0	(70)				(70)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	97				97
Balance, end of period (in shares) at Dec. 31, 2016		8,277,160
Balance, end of period at Dec. 31, 2016	15,921	$ 4,223	1,347	15,493	(3,893)	(2,286)	1,037
Balance, beginning of period (in shares) at Sep. 30, 2017		8,277,160
Balance, beginning of period at Sep. 30, 2017	18,183	$ 4,223	1,350	15,023	(1,058)	(2,286)	931
Increase (Decrease) in Stockholders' Equity
Distributions to non-controlling interests	(506)						(506)
Net earnings (loss)	(1,034)			(1,017)			(17)
Share-based compensation	1		1
Foreign currency translation adjustments, net of taxes of $0	(6)				(6)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	24				24
Balance, end of period (in shares) at Dec. 31, 2017		8,277,160
Balance, end of period at Dec. 31, 2017	$ 16,662	$ 4,223	$ 1,351	$ 14,006	$ (1,040)	$ (2,286)	$ 408

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustments, taxes	$ 0	$ 0
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME9

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net (loss) earnings	$ (1,034)	$ 2,202
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Equity in loss (income) of affiliates	153	(2,326)
Depletion, depreciation, and amortization	280	324
Distribution of income from equity investees	0	497
Retirement benefits expense	59	174
Accretion of asset retirement obligation	96	106
Income tax receivable	(460)	0
Deferred rent liability	22	0
Deferred income tax expense	70	125
Asset retirement obligation payments	(436)	(115)
Share-based compensation expense (benefit)	17	(4)
Retirement plan contributions and payments	(5)	0
Sale of interest in leasehold land, net of fees paid	0	(1,418)
Decrease from changes in current assets and liabilities	(549)	(531)
Net cash used in operating activities	(1,787)	(966)
Cash flows from investing activities:
Purchases of certificates of deposit	(992)	0
Proceeds from the maturity of certificates of deposit	248	0
Net (fees paid on) proceeds from sale of interest in leasehold land	(343)	1,418
Proceeds from sale of oil and natural gas assets	35
Capital expenditures - oil and natural gas	(147)	(352)
Capital expenditures - all other	(18)	(95)
Net cash (used in) provided by investing activities	(1,217)	971
Cash flows from financing activities:
Distributions to non-controlling interests	(506)	(54)
Net cash used in financing activities	(506)	(54)
Effect of exchange rate changes on cash and cash equivalents	(7)	(141)
Net decrease in cash and cash equivalents	(3,517)	(190)
Cash and cash equivalents at beginning of period	16,281	15,550
Cash and cash equivalents at end of period	$ 12,764	$ 15,360

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2017
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 an 80% -owned joint venture (Kaupulehu 2007, LLLP). 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, 2017 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2017 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at December 31, 2017 , results of operations, comprehensive income (loss), equity and cash flows for the three months ended December 31, 2017 and 2016 , have been made. The results of operations for the period ended December 31, 2017 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. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-07, “Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement that when an investment subsequently qualifies for use of the equity method as a result of an increase in level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. This ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and to adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. In addition, the ASU requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The Company adopted the provisions of this ASU effective October 1, 2017. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The Company adopted the provisions of this ASU effective October 1, 2017. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, “Interests Held through Related Parties That Are under Common Control,” which modifies existing guidance with respect to how a decision maker that holds an indirect interest in a VIE through a common control party determines whether it is the primary beneficiary of the VIE as part of the analysis of whether the VIE would need to be consolidated. Under this ASU, a decision maker would need to consider only its proportionate indirect interest in the VIE held through a common control party. The Company adopted the provisions of this ASU effective October 1, 2017. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements.

EARNINGS (LOSS) PER COMMON SHAR

EARNINGS (LOSS) PER COMMON SHARE	3 Months Ended
	Dec. 31, 2017
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 493,750 and 621,250 shares of common stock were excluded from the computation of diluted shares for the three months ended December 31, 2017 and 2016 , respectively, as their inclusion would have been anti-dilutive. 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 December 31, 2017 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (1,017,000 ) 8,277,160 $ (0.12 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,017,000 ) 8,277,160 $ (0.12 ) Three months ended December 31, 2016 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 1,641,000 8,277,160 $ 0.20 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 1,641,000 8,277,160 $ 0.20

INVESTMENT HELD FOR SALE

INVESTMENT HELD FOR SALE	3 Months Ended
	Dec. 31, 2017
INVESTMENT HELD FOR SALE [Abstract]
INVESTMENT HELD FOR SALE	INVESTMENT HELD FOR SALE At December 31, 2017 , Kaupulehu 2007, LLLP 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.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Dec. 31, 2017
Investments, All Other Investments [Abstract]
INVESTMENTS	INVESTMENTS A summary of Barnwell’s investments is as follows: December 31, 2017 September 30, 2017 Investment in Kukio Resort land development partnerships $ 2,006,000 $ 2,159,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 2,056,000 $ 2,209,000 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 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 and percentage of future distributions to KD II's members. 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, of which 23 lots remain to be sold at Kaupulehu Increment I as of December 31, 2017 , as well as from commissions on real estate sales by the real estate sales office. During the three months ended December 31, 2016 , Barnwell received net cash distributions in the amount of $443,000 from the Kukio Resort land development partnerships after distributing $54,000 to non-controlling interests. Equity in loss of affiliates was $153,000 for the three months ended December 31, 2017 and equity in income of affiliates was $2,326,000 for the three months ended December 31, 2016 . 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 $319,000 as of December 31, 2017 , 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 $3,000 and $19,000 , for the three months ended December 31, 2017 and 2016 , respectively, increased equity in income of affiliates. Summarized financial information for the Kukio Resort land development partnerships is as follows: Three months ended 2017 2016 Revenue $ 1,560,000 $ 24,874,000 Gross profit $ 686,000 $ 11,496,000 Net (loss) earnings $ (503,000 ) $ 10,661,000 Sale of interest in leasehold land Kaupulehu Developments has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within 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 12). The following table summarizes the percentage of sales payment revenues received from KD I and KD II and the amount of fees directly related to such revenues: Three months ended 2017 2016 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ — $ 1,678,000 Fees - included in general and administrative expenses — (260,000 ) Proceeds from sale of interest in leasehold land, net of fees paid $ — $ 1,418,000 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	3 Months Ended
	Dec. 31, 2017
Oil and Natural Gas Properties [Abstract]
OIL AND NATURAL GAS PROPERTIES	OIL AND NATURAL GAS PROPERTIES In October 2017, Barnwell entered into a Purchase and Sale Agreement with an independent third party and sold its oil and natural gas properties located in the Pouce Coupe area of Alberta, Canada. The sales price per the agreement was adjusted to $72,000 for customary purchase price adjustments to reflect the economic activity from the effective date of May 1, 2017 to the closing date. The final determination of the customary adjustments to the purchase price has not yet been made however it is not expected to result in a material adjustment. From Barnwell's net proceeds, $37,000 was withheld and remitted by the buyer to the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes. In February 2018, Barnwell sold its oil properties located in the Red Earth area of Alberta, Canada to two separate independent third parties. The sales prices per the agreements were adjusted for customary purchase price adjustments to reflect the economic activity from the effective date of October 1, 2017 to the closing date, for a combined adjusted sales price of $1,360,000 . Barnwell is expecting to record a gain on the sale of Red Earth in the quarter ending March 31, 2018 in accordance with the guidance in Rule 4-10(c)(6)(i) of Regulation S-X, which requires an allocation of capitalized costs to the reserves sold and reserves retained on the basis of the relative fair values of the properties if there is a substantial economic difference between the properties sold and those retained. However, the accounting for the sale of Red Earth is still in progress and it is not possible to estimate the amount of the gain at this time.

RETIREMENT PLANS

RETIREMENT PLANS	3 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
RETIREMENT PLANS	RETIREMENT PLANS Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental 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 December 31, 2017 2016 2017 2016 2017 2016 Service cost $ 53,000 $ 72,000 $ 6,000 $ 16,000 $ — $ — Interest cost 89,000 87,000 15,000 21,000 19,000 22,000 Expected return on plan assets (147,000 ) (141,000 ) — — — — Amortization of prior service cost (credit) 1,000 1,000 (1,000 ) (1,000 ) — — Amortization of net actuarial loss 21,000 41,000 — 9,000 3,000 47,000 Net periodic benefit cost $ 17,000 $ 60,000 $ 20,000 $ 45,000 $ 22,000 $ 69,000 Barnwell estimates that it will make approximately $500,000 in contributions to the Pension Plan during fiscal 2018 . The SERP and Postretirement Medical plans are unfunded, and Barnwell funds benefits when payments are made. Expected payments under the Postretirement Medical plan and the SERP for fiscal 2018 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Dec. 31, 2017
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 2017 2016 United States $ (1,143,000 ) $ 2,062,000 Canada (377,000 ) (368,000 ) $ (1,520,000 ) $ 1,694,000 The components of the income tax provision (benefit) are as follows: Three months ended 2017 2016 Current $ (573,000 ) $ (72,000 ) Deferred 70,000 125,000 $ (503,000 ) $ 53,000 Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities and any amounts estimated to be realizable through tax carryback strategies, are not estimated to have a future benefit as tax credits or deductions. Income from our non-controlling interest in the Kukio Resort land development partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. The Tax Cuts and Jobs Act of 2017 (“TCJA”), enacted on December 22, 2017, contains significant changes including a reduction in the U.S. corporate income tax rate, repeal of the corporate Alternative Minimum Tax (“AMT”), restriction of the deduction for post-TCJA net operating losses to 80% of taxable income and elimination of net operating loss carrybacks, and mandatory deemed repatriation and resulting taxation of all undistributed foreign earnings, as well as various other changes that either do not currently have a significant impact to the Company, or that may impact us in the future should those provisions become applicable to the Company. We believe our assessment of the estimated impacts of the TCJA is complete based on information available to date. However, the TCJA makes broad and complex changes to the U.S. tax code and is subject to interpretation until additional guidance is issued by taxation and financial reporting authorities. The ultimate impact of the TCJA may differ from our estimates due to changes in the interpretations and assumptions we used and changes in any future regulatory guidance. The TCJA reduces the U.S. statutory tax rate from 35% to 21%, effective January 1, 2018. The Company’s U.S. federal statutory rate for the fiscal year ending September 30, 2018 will be a blended rate of 24.5% , based on a fiscal year blended rate calculation of pre- and post-TJCA rates, and will be 21% for future fiscal years. There was no financial statement impact of the TCJA’s reduction in the U.S. statutory tax rate in the quarter ended December 31, 2017 as the Company has a full valuation allowance on its net deferred tax assets under U.S. federal tax law. The repeal of the corporate AMT provides a mechanism for the refund over time of any unused AMT credit carryovers. Prior to the enactment of the TCJA, it was not more likely than not that the Company’s AMT credit carryovers would provide a future benefit, as such the AMT deferred tax asset had a full valuation allowance. As a result of the new TCJA provision for refundability of the AMT, the Company recorded a current income tax benefit of $460,000 in the quarter ended December 31, 2017 to reflect the undiscounted unused AMT credit carryover balance as a non-current income tax receivable. Respective portions of this balance will be reclassified to current income taxes receivable when amounts are eligible for refund within one year of the balance sheet date. The TCJA restricts the deduction for post-TCJA net operating losses to 80% of taxable income and eliminates the current net operating loss carryback provisions. The Company has determined that all existing pre-TCJA net operating loss carryovers are of sufficient magnitude and life such that they will fully shelter future reversals of U.S. federal deferred tax liabilities. As such, there was no financial statement impact of the TCJA’s changes to net operating losses in the quarter ended December 31, 2017. The TCJA establishes mandatory deemed repatriation and resulting taxation of all post-1986 undistributed foreign earnings. As the Company’s Canadian operations consist of a U.S. corporate subsidiary operating as a branch in Canada and other minor, inactive Canadian corporate subsidiaries there was no impact from this provision.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Dec. 31, 2017
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); and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling). The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended 2017 2016 Revenues: Oil and natural gas $ 953,000 $ 1,141,000 Land investment — 1,678,000 Contract drilling 842,000 1,406,000 Other 28,000 55,000 Total before interest income 1,823,000 4,280,000 Interest income 33,000 10,000 Total revenues $ 1,856,000 $ 4,290,000 Depletion, depreciation, and amortization: Oil and natural gas $ 199,000 $ 235,000 Contract drilling 61,000 66,000 Other 20,000 23,000 Total depletion, depreciation, and amortization $ 280,000 $ 324,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 96,000 $ 60,000 Land investment — 1,678,000 Contract drilling (40,000 ) 176,000 Other 8,000 32,000 Total operating profit 64,000 1,946,000 Equity in income (loss) of affiliates: Land investment (153,000 ) 2,326,000 General and administrative expenses (1,481,000 ) (2,027,000 ) Interest income 33,000 10,000 (Loss) earnings before income taxes $ (1,537,000 ) $ 2,255,000

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in each component of accumulated other comprehensive income (loss) were as follows: Three months ended 2017 2016 Foreign currency translation: Beginning accumulated foreign currency translation $ 1,053,000 $ 906,000 Change in cumulative translation adjustment before reclassifications (6,000 ) (70,000 ) Income taxes — — Net current period other comprehensive loss (6,000 ) (70,000 ) Ending accumulated foreign currency translation 1,047,000 836,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,111,000 ) (4,826,000 ) Amortization of net actuarial loss and prior service cost 24,000 97,000 Income taxes — — Net current period other comprehensive income 24,000 97,000 Ending accumulated retirement plans benefit cost (2,087,000 ) (4,729,000 ) Accumulated other comprehensive loss, net of taxes $ (1,040,000 ) $ (3,893,000 ) 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 6 for additional details).

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, certificates of deposit, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments.

INFORMATION RELATING TO THE CON

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	3 Months Ended
	Dec. 31, 2017
Supplemental Cash Flow Elements [Abstract]
INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS	INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended 2017 2016 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ — $ 4,000 Income taxes paid $ — $ 10,000 Supplemental disclosure of non-cash investing activities: Canadian income tax withholding on proceeds from the sale of oil and natural gas properties $ 37,000 $ — Capital expenditure accruals related to oil and natural gas exploration and development increased $30,000 during the three months ended December 31, 2017 and decreased $95,000 during the three months ended December 31, 2016 . Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations decreased $30,000 and $62,000 during the three months ended December 31, 2017 and 2016 , respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2017
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. Kaupulehu Developments is also entitled to receive 50% of any future distributions otherwise payable from KD II to its members up to $8,000,000 , of which $2,500,000 has been received to date. 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 of sales payments and percent of distribution 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 three months ended December 31, 2016 , Barnwell received $1,678,000 in percentage of sales payments from KD II from the sale of one lot within Increment II. No lots were sold during the three months ended December 31, 2017.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT In February 2018, Barnwell closed on the sale of its oil properties located in the Red Earth area of Alberta, Canada (See Note 5 for additional details).

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2017
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 an 80% -owned joint venture (Kaupulehu 2007, LLLP). 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, 2017 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2017 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at December 31, 2017 , results of operations, comprehensive income (loss), equity and cash flows for the three months ended December 31, 2017 and 2016 , have been made. The results of operations for the period ended December 31, 2017 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.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-07, “Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement that when an investment subsequently qualifies for use of the equity method as a result of an increase in level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. This ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and to adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. In addition, the ASU requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The Company adopted the provisions of this ASU effective October 1, 2017. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The Company adopted the provisions of this ASU effective October 1, 2017. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, “Interests Held through Related Parties That Are under Common Control,” which modifies existing guidance with respect to how a decision maker that holds an indirect interest in a VIE through a common control party determines whether it is the primary beneficiary of the VIE as part of the analysis of whether the VIE would need to be consolidated. Under this ASU, a decision maker would need to consider only its proportionate indirect interest in the VIE held through a common control party. The Company adopted the provisions of this ASU effective October 1, 2017. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements.

EARNINGS (LOSS) PER COMMON SH24

EARNINGS (LOSS) PER COMMON SHARE (Tables)	3 Months Ended
	Dec. 31, 2017
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 December 31, 2017 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (1,017,000 ) 8,277,160 $ (0.12 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,017,000 ) 8,277,160 $ (0.12 ) Three months ended December 31, 2016 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 1,641,000 8,277,160 $ 0.20 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 1,641,000 8,277,160 $ 0.20

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Dec. 31, 2017
Investments, All Other Investments [Abstract]
Summary of investments	A summary of Barnwell’s investments is as follows: December 31, 2017 September 30, 2017 Investment in Kukio Resort land development partnerships $ 2,006,000 $ 2,159,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 2,056,000 $ 2,209,000
Summarized financial information for the land development partnerships	Summarized financial information for the Kukio Resort land development partnerships is as follows: Three months ended 2017 2016 Revenue $ 1,560,000 $ 24,874,000 Gross profit $ 686,000 $ 11,496,000 Net (loss) earnings $ (503,000 ) $ 10,661,000
Kaupulehu Developments
INVESTMENTS
Summary of percentage of sales payment proceeds received	The following table summarizes the percentage of sales payment revenues received from KD I and KD II and the amount of fees directly related to such revenues: Three months ended 2017 2016 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ — $ 1,678,000 Fees - included in general and administrative expenses — (260,000 ) Proceeds from sale of interest in leasehold land, net of fees paid $ — $ 1,418,000

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	3 Months Ended
	Dec. 31, 2017
Retirement Benefits [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 December 31, 2017 2016 2017 2016 2017 2016 Service cost $ 53,000 $ 72,000 $ 6,000 $ 16,000 $ — $ — Interest cost 89,000 87,000 15,000 21,000 19,000 22,000 Expected return on plan assets (147,000 ) (141,000 ) — — — — Amortization of prior service cost (credit) 1,000 1,000 (1,000 ) (1,000 ) — — Amortization of net actuarial loss 21,000 41,000 — 9,000 3,000 47,000 Net periodic benefit cost $ 17,000 $ 60,000 $ 20,000 $ 45,000 $ 22,000 $ 69,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Components of earnings (loss) before income taxes, after adjusting the earnings (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 2017 2016 United States $ (1,143,000 ) $ 2,062,000 Canada (377,000 ) (368,000 ) $ (1,520,000 ) $ 1,694,000
Schedule of components of the income tax provision (benefit)	The components of the income tax provision (benefit) are as follows: Three months ended 2017 2016 Current $ (573,000 ) $ (72,000 ) Deferred 70,000 125,000 $ (503,000 ) $ 53,000

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Dec. 31, 2017
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 2017 2016 Revenues: Oil and natural gas $ 953,000 $ 1,141,000 Land investment — 1,678,000 Contract drilling 842,000 1,406,000 Other 28,000 55,000 Total before interest income 1,823,000 4,280,000 Interest income 33,000 10,000 Total revenues $ 1,856,000 $ 4,290,000 Depletion, depreciation, and amortization: Oil and natural gas $ 199,000 $ 235,000 Contract drilling 61,000 66,000 Other 20,000 23,000 Total depletion, depreciation, and amortization $ 280,000 $ 324,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 96,000 $ 60,000 Land investment — 1,678,000 Contract drilling (40,000 ) 176,000 Other 8,000 32,000 Total operating profit 64,000 1,946,000 Equity in income (loss) of affiliates: Land investment (153,000 ) 2,326,000 General and administrative expenses (1,481,000 ) (2,027,000 ) Interest income 33,000 10,000 (Loss) earnings before income taxes $ (1,537,000 ) $ 2,255,000

ACCUMULATED OTHER COMPREHENSI29

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of changes in each component of accumulated other comprehensive (loss) income	The changes in each component of accumulated other comprehensive income (loss) were as follows: Three months ended 2017 2016 Foreign currency translation: Beginning accumulated foreign currency translation $ 1,053,000 $ 906,000 Change in cumulative translation adjustment before reclassifications (6,000 ) (70,000 ) Income taxes — — Net current period other comprehensive loss (6,000 ) (70,000 ) Ending accumulated foreign currency translation 1,047,000 836,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,111,000 ) (4,826,000 ) Amortization of net actuarial loss and prior service cost 24,000 97,000 Income taxes — — Net current period other comprehensive income 24,000 97,000 Ending accumulated retirement plans benefit cost (2,087,000 ) (4,729,000 ) Accumulated other comprehensive loss, net of taxes $ (1,040,000 ) $ (3,893,000 )

INFORMATION RELATING TO THE C30

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables)	3 Months Ended
	Dec. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Schedule of supplemental cash flow information	Three months ended 2017 2016 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ — $ 4,000 Income taxes paid $ — $ 10,000 Supplemental disclosure of non-cash investing activities: Canadian income tax withholding on proceeds from the sale of oil and natural gas properties $ 37,000 $ —

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Dec. 31, 2017
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%

EARNINGS (LOSS) PER COMMON SH32

EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net Earnings (Loss) (Numerator)
Basic	$ (1,017)	$ 1,641
Effect of dilutive securities - common stock options	0	0
Diluted	$ (1,017)	$ 1,641
Shares (Denominator)
Basic (in shares)	8,277,160	8,277,160
Effect of dilutive securities - common stock options	0	0
Diluted (in shares)	8,277,160	8,277,160
Per-Share Amount
Basic net earnings (loss) per share (in dollars per share)	$ (0.12)	$ 0.20
Diluted net earnings (loss) per share (in dollars per share)	$ (0.12)	$ 0.20
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)	493,750	621,250

INVESTMENT HELD FOR SALE (Detai

INVESTMENT HELD FOR SALE (Details)	Dec. 31, 2017lot
Residential Parcel [Member]
Investment in Land [Line Items]
Number of residential parcels owned	1

INVESTMENTS (Details)

INVESTMENTS (Details) $ in Thousands	Nov. 27, 2013USD ($)partnership	Dec. 31, 2017USD ($)aincrementlot	Dec. 31, 2016USD ($)	Sep. 30, 2017USD ($)
Investment in Land [Line Items]
Investments		$ 2,056		$ 2,209
Equity in (loss) income of affiliates		(153)	$ 2,326
Revenues - sale of interest in leasehold land		0	1,678
Kaupulehu Developments
Investment in Land [Line Items]
Revenues - sale of interest in leasehold land		0	1,678
Fees - included in general and administrative expenses		0	(260)
Proceeds from sale of interest in leasehold land, net of fees paid		$ 0	1,418
Area of land (in acres) | a		870
Number of development increments | increment		2
Investment in land development partnerships
Investment in Land [Line Items]
Investments		$ 2,006		2,159
Number of limited liability limited partnerships formed | partnership	2
Ownership percentage	19.60%
Number of lots remaining to be sold | lot		23
Cash Distribution from Equity Method Investment			443
Minority interests portion of distribution from equity investee			54
Equity in (loss) income of affiliates		$ (153)	2,326
Basis Difference Adjustment		3	19
Basis difference between the underlying equity in net assets of the investee and the carrying value of the entity's investment		319
Equity Method Investment, Summarized Financial Information [Abstract]
Revenue		1,560	24,874
Gross profit		686	11,496
Net earnings		(503)	$ 10,661
Investment in land development partnerships | KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD Kaupulehu, LLLP
Investment in Land [Line Items]
Ownership interest acquired, aggregate cost	$ 5,140
Investment in land development partnerships | KD Kukio Resorts LLLP
Investment in Land [Line Items]
Ownership interest acquired (as a percent)	19.60%
Investment in land development partnerships | KD Maniniowali, LLLP
Investment in Land [Line Items]
Ownership interest acquired (as a percent)	19.60%
Investment in land development partnerships | KD Kaupulehu, LLLP
Investment in Land [Line Items]
Ownership interest acquired (as a percent)	19.60%
Land Interest
Investment in Land [Line Items]
Investments		$ 50		$ 50
Area of land (in acres) | a		1,000

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Feb. 28, 2018	Oct. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Oil and Natural Gas Properties [Line Items]
Proceeds from sale of oil and natural gas assets			$ 35
Income taxes receivable			1,295		$ 1,145
Pouce Coupe [Member]
Oil and Natural Gas Properties [Line Items]
Proceeds from sale of oil and natural gas assets		$ 72
Income taxes receivable			$ 37
Subsequent Event [Member] | Red Earth [Member]
Oil and Natural Gas Properties [Line Items]
Proceeds from sale of oil and natural gas assets	$ 1,360

RETIREMENT PLANS (Details)

RETIREMENT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Pension Plan
Net periodic benefit cost:
Service cost	$ 53	$ 72
Interest cost	89	87
Expected return on plan assets	(147)	(141)
Amortization of prior service cost (credit)	1	1
Amortization of net actuarial loss	21	41
Net periodic benefit cost	17	60
Other disclosures
Defined Benefit Plans, Estimated Future Employer Contributions	500
SERP
Net periodic benefit cost:
Service cost	6	16
Interest cost	15	21
Amortization of prior service cost (credit)	(1)	(1)
Amortization of net actuarial loss	0	9
Net periodic benefit cost	20	45
Postretirement Medical
Net periodic benefit cost:
Service cost	0	0
Interest cost	19	22
Amortization of prior service cost (credit)	0	0
Amortization of net actuarial loss	3	47
Net periodic benefit cost	$ 22	$ 69

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests
United States	$ (1,143,000)	$ 2,062,000
Canada	(377,000)	(368,000)
Total	(1,520,000)	1,694,000
Components of the income tax provision (benefit)
Current	(573,000)	(72,000)
Deferred	70,000	125,000
Total	(503,000)	$ 53,000
Income tax expense (benefit) from TCJA NOL changes	0
Income Tax Expense (Benefit) from remeasurement of net deferred tax assets	0
Income tax benefit from AMT credit carryover refund provision	(460,000)
Transition Tax for Accumulated Foreign Earnings Income Tax Expense Benefit	$ 0
Blended 2018 U.S. Effective Tax Rate [Member]
Components of the income tax provision (benefit)
Federal Statutory Income Tax Rate, Percent	24.50%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Revenue, Net	$ 1,823,000	$ 4,280,000
Interest income	33,000	10,000
Total revenues	1,856,000	4,290,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	280,000	324,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	64,000	1,946,000
Equity in income (loss) of affiliates:
Equity in (loss) income of affiliates	(153,000)	2,326,000
General and administrative expenses	(1,481,000)	(2,027,000)
Interest income	33,000	10,000
Earnings (loss) before income taxes	(1,537,000)	2,255,000
Oil and natural gas
Revenues:
Revenue, Net	953,000	1,141,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	199,000	235,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	96,000	60,000
Land investment
Revenues:
Revenue, Net	0	1,678,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	0	1,678,000
Contract drilling
Revenues:
Revenue, Net	842,000	1,406,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	61,000	66,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	(40,000)	176,000
Other
Revenues:
Revenue, Net	28,000	55,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	20,000	23,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	8,000	$ 32,000
Intersegment Eliminations
Revenues:
Revenue, Net	$ 0

ACCUMULATED OTHER COMPREHENSI39

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Changes in foreign currency translation
Beginning accumulated foreign currency translation	$ 1,053	$ 906
Change in cumulative translation adjustment before reclassifications	(6)	(70)
Income taxes	0	0
Net current period other comprehensive loss	(6)	(70)
Ending accumulated foreign currency translation	1,047	836
Changes in retirement plans
Beginning accumulated retirement plans benefit cost	(2,111)	(4,826)
Amortization of net actuarial loss and prior service cost	24	97
Income taxes	0	0
Net current period other comprehensive income	24	97
Ending accumulated retirement plans benefit cost	(2,087)	(4,729)
Accumulated other comprehensive loss, net of taxes	$ (1,040)	$ (3,893)	$ (1,058)

INFORMATION RELATING TO THE C40

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Supplemental disclosure of cash flow information:
Interest	$ 0	$ 4
Income taxes paid	0	10
Supplemental disclosure of non-cash investing activities:
Canadian income tax withholding on proceeds from the sale of oil and natural gas properties	37	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	30	(95)
Increase (Decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations	$ (30)	$ (62)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended			12 Months Ended
	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)lot	Sep. 30, 2017
Related party transactions
Percent of Increment II Distributions				50.00%
Contingent Payments, Unrecorded	$ 8,000
50% of Increment II Distributions Received		$ 2,500
Sale of interest in leasehold land	0		$ 1,678
Kaupulehu Developments
Related party transactions
Sale of interest in leasehold land	$ 0		1,678
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships
Related party transactions
Ownership interest acquired (as a percent)	19.60%
Sale of interest in leasehold land			$ 1,678
Increment II [Member] | Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships
Related party transactions
Number of lots sold | lot			1