Barnwell Industries (BRN) 10-Q 14 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 07, 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	Mar. 31, 2018
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	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 11,393	$ 16,281
Certificates of deposit	5,195	4,413
Accounts and other receivables, net of allowance for doubtful accounts of: $35,000 at March 31, 2018; $46,000 at September 30, 2017	1,528	1,414
Income taxes receivable	2,208	1,145
Investment held for sale	1,000	1,037
Other current assets	1,463	852
Total current assets	22,787	25,142
Income taxes receivable, net of current portion	460	0
Deferred income tax assets	0	300
Investments	1,976	2,209
Property and equipment	60,262	79,231
Accumulated depletion, depreciation, and amortization	(56,201)	(73,862)
Property and equipment, net	4,061	5,369
Total assets	29,284	33,020
Current liabilities:
Accounts payable	1,300	1,185
Accrued capital expenditures	252	348
Accrued operating and other expenses	865	1,386
Accrued compensation	396	390
Current portion of asset retirement obligation	1,223	1,231
Other current liabilities	105	258
Total current liabilities	4,141	4,798
Deferred rent	64	21
Liability for retirement benefits	4,026	4,150
Asset retirement obligation	3,412	5,632
Deferred income tax liabilities	458	236
Total liabilities	12,101	14,837
Commitments and contingencies
Equity:
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 8,445,060 issued at March 31, 2018 and September 30, 2017	4,223	4,223
Additional paid-in capital	1,351	1,350
Retained earnings	14,685	15,023
Accumulated other comprehensive loss, net	(1,182)	(1,058)
Treasury stock, at cost: 167,900 shares at March 31, 2018 and September 30, 2017	(2,286)	(2,286)
Total stockholders' equity	16,791	17,252
Non-controlling interests	392	931
Total equity	17,183	18,183
Total liabilities and equity	$ 29,284	$ 33,020

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 35	$ 46
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, authorized shares (in shares)	20,000,000	20,000,000
Common stock, issued shares (in shares)	8,445,060	8,445,060
Treasury stock, shares (in shares)	167,900	167,900

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Oil and natural gas	$ 859	$ 1,409	$ 1,812	$ 2,550
Contract drilling	1,016	1,580	1,858	2,986
Sale of interest in leasehold land	0	0	0	1,678
Gas processing and other	100	40	161	105
Total revenues	1,975	3,029	3,831	7,319
Costs and expenses:
Oil and natural gas operating	575	800	1,233	1,646
Contract drilling operating	883	850	1,704	2,014
General and administrative	1,563	1,754	3,044	3,781
Depletion, depreciation, and amortization	227	384	507	708
Impairment of assets	37	0	37	0
Gain on sales of assets	(2,250)	0	(2,250)	0
Total costs and expenses	1,035	3,788	4,275	8,149
Earnings (loss) before equity in (loss) income of affiliates and income taxes	940	(759)	(444)	(830)
Equity in (loss) income of affiliates	(80)	(170)	(233)	2,156
Earnings (loss) before income taxes	860	(929)	(677)	1,326
Income tax provision (benefit)	197	(287)	(306)	(234)
Net earnings (loss)	663	(642)	(371)	1,560
Less: Net (loss) earnings attributable to non-controlling interests	(16)	(27)	(33)	534
Net earnings (loss) attributable to Barnwell Industries, Inc.	$ 679	$ (615)	$ (338)	$ 1,026
Basic and diluted net (loss) earnings per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share)	$ 0.08	$ (0.07)	$ (0.04)	$ 0.12
Weighted-average number of common shares outstanding:
Basic and diluted (in shares)	8,277	8,277	8,277	8,277

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net earnings (loss)	$ 663	$ (642)	$ (371)	$ 1,560
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of taxes of $0	(181)	22	(187)	(48)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	39	96	63	193
Total other comprehensive (loss) income	(142)	118	(124)	145
Total comprehensive earnings (loss)	521	(524)	(495)	1,705
Less: Comprehensive (loss) earnings attributable to non-controlling interests	(16)	(27)	(33)	534
Comprehensive earnings (loss) attributable to Barnwell Industries, Inc.	$ 537	$ (497)	$ (462)	$ 1,171

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
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 EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive 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	(616)						(616)
Net earnings (loss)	1,560			1,026			534
Share-based compensation	3		3
Foreign currency translation adjustments, net of taxes of $0	(48)				(48)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	193				193
Balance, end of period (in shares) at Mar. 31, 2017		8,277,160
Balance, end of period at Mar. 31, 2017	14,836	$ 4,223	1,348	14,878	(3,775)	(2,286)	448
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)	(371)			(338)			(33)
Share-based compensation	1		1
Foreign currency translation adjustments, net of taxes of $0	(187)				(187)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	63				63
Balance, end of period (in shares) at Mar. 31, 2018		8,277,160
Balance, end of period at Mar. 31, 2018	$ 17,183	$ 4,223	$ 1,351	$ 14,685	$ (1,182)	$ (2,286)	$ 392

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
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

CONDENSED CONSOLIDATED STATEME9

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net earnings (loss)	$ (371)	$ 1,560
Adjustments to reconcile net earnings (loss) to net cash (used in) provided by operating activities:
Equity in loss (income) of affiliates	233	(2,156)
Depletion, depreciation, and amortization	507	708
Gain on sale of oil and natural gas properties	2,250	0
Impairment of assets	37	0
Distribution of income from equity investees	0	2,164
Retirement benefits expense	148	345
Income tax receivable	(460)	0
Deferred rent liability	43	0
Accretion of asset retirement obligation	136	213
Deferred income tax expense	523	114
Asset retirement obligation payments	(538)	(480)
Share-based compensation expense (benefit)	(26)	45
Retirement plan contributions and payments	(210)	(355)
Sale of interest in leasehold land, net of fees paid	0	(1,418)
Decrease from changes in current assets and liabilities	(1,233)	(424)
Net cash (used in) provided by operating activities	(3,461)	316
Cash flows from investing activities:
Purchase of certificates of deposit	(3,958)	0
Proceeds from the maturity of certificates of deposit	3,176	0
Distribution from equity investees in excess of earnings	0	652
Net (fees paid on) proceeds from sale of interest in leasehold land	(343)	1,418
Proceeds from the sale of oil and natural gas properties	763	0
Capital expenditures - oil and natural gas	(288)	(447)
Capital expenditures - all other	(65)	(120)
Net cash (used in) provided by investing activities	(715)	1,503
Cash flows from financing activities:
Distributions to non-controlling interests	(506)	(616)
Net cash used in financing activities	(506)	(616)
Effect of exchange rate changes on cash and cash equivalents	(206)	(98)
Net (decrease) increase in cash and cash equivalents	(4,888)	1,105
Cash and cash equivalents at beginning of period	16,281	15,550
Cash and cash equivalents at end of period	$ 11,393	$ 16,655

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2018
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 March 31, 2018 , results of operations and comprehensive income (loss) for the three and six months ended March 31, 2018 and 2017 , and equity and cash flows for the six months ended March 31, 2018 and 2017 , have been made. The results of operations for the period ended March 31, 2018 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	6 Months Ended
	Mar. 31, 2018
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 and six months ended March 31, 2018 and 2017 , respectively, as their inclusion would have been antidilutive. Reconciliations between net earnings (loss) attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations are detailed in the following tables: Three months ended March 31, 2018 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 679,000 8,277,160 $ 0.08 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 679,000 8,277,160 $ 0.08 Six months ended March 31, 2018 Net Loss (Numerator) Shares Per-Share Basic net loss per share $ (338,000 ) 8,277,160 $ (0.04 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (338,000 ) 8,277,160 $ (0.04 ) Three months ended March 31, 2017 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (615,000 ) 8,277,160 $ (0.07 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (615,000 ) 8,277,160 $ (0.07 ) Six months ended March 31, 2017 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 1,026,000 8,277,160 $ 0.12 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 1,026,000 8,277,160 $ 0.12

INVESTMENT HELD FOR SALE

INVESTMENT HELD FOR SALE	6 Months Ended
	Mar. 31, 2018
INVESTMENT HELD FOR SALE [Abstract]
INVESTMENT HELD FOR SALE	INVESTMENT HELD FOR SALE At March 31, 2018 , 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. In March 2018, Kaupulehu 2007, LLLP entered into a contract for the sale of the residential lot for net proceeds of $1,000,000 . Accordingly, the lot's carrying value at March 31, 2018 was adjusted to the amount of the contract currently in escrow, and a $37,000 impairment of the value of the investment held for sale was recognized in the three and six months ended March 31, 2018.

INVESTMENTS

INVESTMENTS	6 Months Ended
	Mar. 31, 2018
Investments, All Other Investments [Abstract]
INVESTMENTS	INVESTMENTS A summary of Barnwell’s investments is as follows: March 31, September 30, Investment in Kukio Resort land development partnerships $ 1,926,000 $ 2,159,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 1,976,000 $ 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 as well as from commission on real estate sales by the real estate sales office. As of March 31, 2018 , 23 lots remained to be sold at Kaupulehu Increment I. During the six months ended March 31, 2017 , Barnwell received net cash distributions in the amount of $2,509,000 from the Kukio Resort land development partnerships after distributing $ 307,000 to minority interests. Barnwell's share of the loss of its equity affiliates was $80,000 and $233,000 for the three and six months ended March 31, 2018 , respectively, and $170,000 for the three months ended March 31, 2017 . Equity in income of affiliates was $2,156,000 for the six months ended March 31, 2017 . 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 March 31, 2018 , 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 $0 and $3,000 for the three and six months ended March 31, 2018 , respectively, and $1,000 and $20,000 for the three and six months ended March 31, 2017 , respectively, increased equity in income of affiliates. Summarized financial information for the Kukio Resort land development partnerships is as follows: Three months ended March 31, 2018 2017 Revenue $ 2,230,000 $ 1,322,000 Gross profit $ 1,048,000 $ 454,000 Net loss $ (185,000 ) $ (598,000 ) Six months ended March 31, 2018 2017 Revenue $ 3,790,000 $ 26,196,000 Gross profit $ 1,734,000 $ 11,950,000 Net (loss) earnings $ (688,000 ) $ 10,062,000 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 Six months ended 2018 2017 2018 2017 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.

RETIREMENT PLANS

RETIREMENT PLANS	6 Months Ended
	Mar. 31, 2018
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 tables detail the components of net periodic benefit cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended March 31, 2018 2017 2018 2017 2018 2017 Service cost $ 55,000 $ 72,000 $ 13,000 $ 15,000 $ — $ — Interest cost 89,000 87,000 23,000 20,000 19,000 22,000 Expected return on plan assets (148,000 ) (141,000 ) — — — — Amortization of prior service cost (credit) 2,000 1,000 (1,000 ) (1,000 ) — — Amortization of net actuarial loss 27,000 41,000 7,000 8,000 3,000 47,000 Net periodic benefit cost $ 25,000 $ 60,000 $ 42,000 $ 42,000 $ 22,000 $ 69,000 Pension Plan SERP Postretirement Medical Six months ended March 31, 2018 2017 2018 2017 2018 2017 Service cost $ 108,000 $ 144,000 $ 20,000 $ 31,000 $ — $ — Interest cost 178,000 174,000 38,000 41,000 38,000 44,000 Expected return on plan assets (296,000 ) (282,000 ) — — — — Amortization of prior service cost (credit) 3,000 2,000 (3,000 ) (2,000 ) — — Amortization of net actuarial loss 49,000 82,000 7,000 17,000 6,000 94,000 Net periodic benefit cost $ 42,000 $ 120,000 $ 62,000 $ 87,000 $ 44,000 $ 138,000 Barnwell contributed $200,000 to the Pension Plan during the six months ended March 31, 2018 and estimates that it will make further contributions of approximately $300,000 during the remainder of 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	6 Months Ended
	Mar. 31, 2018
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 Six months ended 2018 2017 2018 2017 United States $ (982,000 ) $ (651,000 ) $ (2,125,000 ) $ 1,411,000 Canada 1,858,000 (251,000 ) 1,481,000 (619,000 ) $ 876,000 $ (902,000 ) $ (644,000 ) $ 792,000 The components of the income tax provision (benefit) are as follows: Three months ended Six months ended 2018 2017 2018 2017 Current $ (256,000 ) $ (276,000 ) $ (829,000 ) $ (348,000 ) Deferred 453,000 (11,000 ) 523,000 114,000 $ 197,000 $ (287,000 ) $ (306,000 ) $ (234,000 ) 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, 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	6 Months Ended
	Mar. 31, 2018
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 Six months ended 2018 2017 2018 2017 Revenues: Oil and natural gas $ 859,000 $ 1,409,000 $ 1,812,000 $ 2,550,000 Land investment — — — 1,678,000 Contract drilling 1,016,000 1,580,000 1,858,000 2,986,000 Other 42,000 14,000 70,000 69,000 Total before interest income 1,917,000 3,003,000 3,740,000 7,283,000 Interest income 58,000 26,000 91,000 36,000 Total revenues $ 1,975,000 $ 3,029,000 $ 3,831,000 $ 7,319,000 Depletion, depreciation, and amortization: Oil and natural gas $ 157,000 $ 292,000 $ 356,000 $ 527,000 Contract drilling 53,000 70,000 114,000 136,000 Other 17,000 22,000 37,000 45,000 Total depletion, depreciation, and amortization $ 227,000 $ 384,000 $ 507,000 $ 708,000 Impairment: Land investment $ 37,000 $ — $ 37,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 127,000 $ 317,000 $ 223,000 $ 377,000 Land investment (37,000 ) — (37,000 ) 1,678,000 Contract drilling 80,000 660,000 40,000 836,000 Other 25,000 (8,000 ) 33,000 24,000 Gain on sales of assets 2,250,000 — 2,250,000 — Total operating profit 2,445,000 969,000 2,509,000 2,915,000 Equity in income (loss) of affiliates: Land investment (80,000 ) (170,000 ) (233,000 ) 2,156,000 General and administrative expenses (1,563,000 ) (1,754,000 ) (3,044,000 ) (3,781,000 ) Interest income 58,000 26,000 91,000 36,000 Earnings (loss) before income taxes $ 860,000 $ (929,000 ) $ (677,000 ) $ 1,326,000

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in each component of accumulated other comprehensive loss were as follows: Three months ended Six months ended 2018 2017 2018 2017 Foreign currency translation: Beginning accumulated foreign currency translation $ 1,047,000 $ 836,000 $ 1,053,000 $ 906,000 Change in cumulative translation adjustment before reclassifications (181,000 ) 22,000 (187,000 ) (48,000 ) Income taxes — — — — Net current period other comprehensive (loss) income (181,000 ) 22,000 (187,000 ) (48,000 ) Ending accumulated foreign currency translation 866,000 858,000 866,000 858,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,087,000 ) (4,729,000 ) (2,111,000 ) (4,826,000 ) Amortization of net actuarial loss and prior service cost 39,000 96,000 63,000 193,000 Income taxes — — — — Net current period other comprehensive income 39,000 96,000 63,000 193,000 Ending accumulated retirement plans benefit cost (2,048,000 ) (4,633,000 ) (2,048,000 ) (4,633,000 ) Accumulated other comprehensive loss, net of taxes $ (1,182,000 ) $ (3,775,000 ) $ (1,182,000 ) $ (3,775,000 ) 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	6 Months Ended
	Mar. 31, 2018
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. In March 2018, Kaupulehu 2007, LLLP entered into a contract for the sale of the residential lot for net proceeds of $1,000,000 . Accordingly, the lot's carrying value at March 31, 2018 was adjusted to the amount of the contract currently in escrow, and a $37,000 impairment of the value of the investment held for sale was recognized in the three and six months ended March 31, 2018.

INFORMATION RELATING TO THE CON

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	6 Months Ended
	Mar. 31, 2018
Supplemental Cash Flow Elements [Abstract]
INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS	INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended 2018 2017 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ — $ 5,000 Income taxes refunded, net $ (20,000 ) $ (180,000 ) Supplemental disclosure of non-cash investing activities: Canadian income tax withholding on proceeds from the sale of oil and natural gas properties $ 789,000 $ — Capital expenditure accruals related to oil and natural gas exploration and development decreased $88,000 and $183,000 during the six months ended March 31, 2018 and 2017 , respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations decreased $38,000 and $62,000 during the six months ended March 31, 2018 and 2017 , respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2018
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 six months ended March 31, 2017 , 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 six months ended March 31, 2018 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In April 2018, Kaupulehu Developments received a percentage of sales payment of $310,000 from the sale of a lot within Phase II of Increment I. Financial results from the receipt of this payment will be reflected in Barnwell’s quarter ending June 30, 2018. In April 2018, the Kukio Resort land development partnerships made a cash distribution to its partners of which Barnwell received $373,000 , after distributing $48,000 to minority interests. The receipt of this distribution, which does not impact net earnings or loss, will be reflected in Barnwell's quarter ending June 30, 2018. In May 2018, the Kilauea volcano on the island of Hawaii erupted in the district of Puna on the eastern part of the island. Barnwell owns approximately sixteen acres of land near the sites of the eruptions with a carrying value of $165,000 . Any impact to the carrying value of the land will be reflected in Barnwell’s quarter ending June 30, 2018.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2018
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 March 31, 2018 , results of operations and comprehensive income (loss) for the three and six months ended March 31, 2018 and 2017 , and equity and cash flows for the six months ended March 31, 2018 and 2017 , have been made. The results of operations for the period ended March 31, 2018 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 SH23

EARNINGS (LOSS) PER COMMON SHARE (Tables)	6 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 679,000 8,277,160 $ 0.08 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 679,000 8,277,160 $ 0.08 Six months ended March 31, 2018 Net Loss (Numerator) Shares Per-Share Basic net loss per share $ (338,000 ) 8,277,160 $ (0.04 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (338,000 ) 8,277,160 $ (0.04 ) Three months ended March 31, 2017 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (615,000 ) 8,277,160 $ (0.07 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (615,000 ) 8,277,160 $ (0.07 ) Six months ended March 31, 2017 Net Earnings (Numerator) Shares (Denominator) Per-Share Amount Basic net earnings per share $ 1,026,000 8,277,160 $ 0.12 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 1,026,000 8,277,160 $ 0.12

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Mar. 31, 2018
Investments, All Other Investments [Abstract]
Summary of investments	A summary of Barnwell’s investments is as follows: March 31, September 30, Investment in Kukio Resort land development partnerships $ 1,926,000 $ 2,159,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 1,976,000 $ 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 March 31, 2018 2017 Revenue $ 2,230,000 $ 1,322,000 Gross profit $ 1,048,000 $ 454,000 Net loss $ (185,000 ) $ (598,000 ) Six months ended March 31, 2018 2017 Revenue $ 3,790,000 $ 26,196,000 Gross profit $ 1,734,000 $ 11,950,000 Net (loss) earnings $ (688,000 ) $ 10,062,000
Kaupulehu Developments
INVESTMENTS
Summary of percentage of sales payment revenues 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 Six months ended 2018 2017 2018 2017 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

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES AND ASSET RETIREMENT OBLIGATION (Tables)	6 Months Ended
	Mar. 31, 2018
Oil and Natural Gas Properties [Abstract]
Pro forma information	Six months ended March 31, 2018 Pro forma (unaudited) Historical Pro forma Total revenues $ 3,831,000 $ 3,439,000 Net loss $ (371,000 ) $ (2,223,000 ) Net loss attributable to Barnwell Industries, Inc. stockholders $ (338,000 ) $ (2,190,000 ) Net loss per common share attributable to Barnwell Industries, Inc. stockholders $ (0.04 ) $ (0.26 ) Six months ended March 31, 2017 Pro forma (unaudited) Historical Pro forma Total revenues $ 7,319,000 $ 6,794,000 Net earnings $ 1,560,000 $ 1,450,000 Net earnings attributable to Barnwell Industries, Inc. stockholders $ 1,026,000 $ 916,000 Net earnings per common share attributable to Barnwell Industries, Inc. stockholders $ 0.12 $ 0.11
Schedule of change in asset retirement obligation	The following is a reconciliation of the asset retirement obligation: Six months ended March 31, 2018 Asset retirement obligation as of beginning of period $ 6,863,000 Liabilities associated with properties sold (1,752,000 ) Revision of estimated obligation 47,000 Accretion expense 136,000 Payments (538,000 ) Foreign currency translation adjustment (121,000 ) Asset retirement obligation as of end of period 4,635,000 Less current portion (1,223,000 ) Asset retirement obligation, long-term $ 3,412,000

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	6 Months Ended
	Mar. 31, 2018
Retirement Benefits [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 March 31, 2018 2017 2018 2017 2018 2017 Service cost $ 55,000 $ 72,000 $ 13,000 $ 15,000 $ — $ — Interest cost 89,000 87,000 23,000 20,000 19,000 22,000 Expected return on plan assets (148,000 ) (141,000 ) — — — — Amortization of prior service cost (credit) 2,000 1,000 (1,000 ) (1,000 ) — — Amortization of net actuarial loss 27,000 41,000 7,000 8,000 3,000 47,000 Net periodic benefit cost $ 25,000 $ 60,000 $ 42,000 $ 42,000 $ 22,000 $ 69,000 Pension Plan SERP Postretirement Medical Six months ended March 31, 2018 2017 2018 2017 2018 2017 Service cost $ 108,000 $ 144,000 $ 20,000 $ 31,000 $ — $ — Interest cost 178,000 174,000 38,000 41,000 38,000 44,000 Expected return on plan assets (296,000 ) (282,000 ) — — — — Amortization of prior service cost (credit) 3,000 2,000 (3,000 ) (2,000 ) — — Amortization of net actuarial loss 49,000 82,000 7,000 17,000 6,000 94,000 Net periodic benefit cost $ 42,000 $ 120,000 $ 62,000 $ 87,000 $ 44,000 $ 138,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Mar. 31, 2018
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 Six months ended 2018 2017 2018 2017 United States $ (982,000 ) $ (651,000 ) $ (2,125,000 ) $ 1,411,000 Canada 1,858,000 (251,000 ) 1,481,000 (619,000 ) $ 876,000 $ (902,000 ) $ (644,000 ) $ 792,000
Schedule of components of the income tax benefit	The components of the income tax provision (benefit) are as follows: Three months ended Six months ended 2018 2017 2018 2017 Current $ (256,000 ) $ (276,000 ) $ (829,000 ) $ (348,000 ) Deferred 453,000 (11,000 ) 523,000 114,000 $ 197,000 $ (287,000 ) $ (306,000 ) $ (234,000 )

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Mar. 31, 2018
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 Six months ended 2018 2017 2018 2017 Revenues: Oil and natural gas $ 859,000 $ 1,409,000 $ 1,812,000 $ 2,550,000 Land investment — — — 1,678,000 Contract drilling 1,016,000 1,580,000 1,858,000 2,986,000 Other 42,000 14,000 70,000 69,000 Total before interest income 1,917,000 3,003,000 3,740,000 7,283,000 Interest income 58,000 26,000 91,000 36,000 Total revenues $ 1,975,000 $ 3,029,000 $ 3,831,000 $ 7,319,000 Depletion, depreciation, and amortization: Oil and natural gas $ 157,000 $ 292,000 $ 356,000 $ 527,000 Contract drilling 53,000 70,000 114,000 136,000 Other 17,000 22,000 37,000 45,000 Total depletion, depreciation, and amortization $ 227,000 $ 384,000 $ 507,000 $ 708,000 Impairment: Land investment $ 37,000 $ — $ 37,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 127,000 $ 317,000 $ 223,000 $ 377,000 Land investment (37,000 ) — (37,000 ) 1,678,000 Contract drilling 80,000 660,000 40,000 836,000 Other 25,000 (8,000 ) 33,000 24,000 Gain on sales of assets 2,250,000 — 2,250,000 — Total operating profit 2,445,000 969,000 2,509,000 2,915,000 Equity in income (loss) of affiliates: Land investment (80,000 ) (170,000 ) (233,000 ) 2,156,000 General and administrative expenses (1,563,000 ) (1,754,000 ) (3,044,000 ) (3,781,000 ) Interest income 58,000 26,000 91,000 36,000 Earnings (loss) before income taxes $ 860,000 $ (929,000 ) $ (677,000 ) $ 1,326,000

ACCUMULATED OTHER COMPREHENSI29

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of changes in each component of accumulated other comprehensive income (loss)	The changes in each component of accumulated other comprehensive loss were as follows: Three months ended Six months ended 2018 2017 2018 2017 Foreign currency translation: Beginning accumulated foreign currency translation $ 1,047,000 $ 836,000 $ 1,053,000 $ 906,000 Change in cumulative translation adjustment before reclassifications (181,000 ) 22,000 (187,000 ) (48,000 ) Income taxes — — — — Net current period other comprehensive (loss) income (181,000 ) 22,000 (187,000 ) (48,000 ) Ending accumulated foreign currency translation 866,000 858,000 866,000 858,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,087,000 ) (4,729,000 ) (2,111,000 ) (4,826,000 ) Amortization of net actuarial loss and prior service cost 39,000 96,000 63,000 193,000 Income taxes — — — — Net current period other comprehensive income 39,000 96,000 63,000 193,000 Ending accumulated retirement plans benefit cost (2,048,000 ) (4,633,000 ) (2,048,000 ) (4,633,000 ) Accumulated other comprehensive loss, net of taxes $ (1,182,000 ) $ (3,775,000 ) $ (1,182,000 ) $ (3,775,000 )

INFORMATION RELATING TO THE C30

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables)	6 Months Ended
	Mar. 31, 2018
Supplemental Cash Flow Elements [Abstract]
Schedule of supplemental cash flow information	Six months ended 2018 2017 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ — $ 5,000 Income taxes refunded, net $ (20,000 ) $ (180,000 ) Supplemental disclosure of non-cash investing activities: Canadian income tax withholding on proceeds from the sale of oil and natural gas properties $ 789,000 $ —

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Mar. 31, 2018
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%

EARNINGS (LOSS) PER COMMON SH32

EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Net Earnings (Loss) (Numerator)
Basic	$ 679	$ (615)	$ (338)	$ 1,026
Effect of dilutive securities - common stock options	0	0	0	0
Diluted	$ 679	$ (615)	$ (338)	$ 1,026
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)	$ 0.08	$ (0.07)	$ (0.04)	$ 0.12
Diluted net earnings (loss) per share (in dollars per share)	$ 0.08	$ (0.07)	$ (0.04)	$ 0.12
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) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2018USD ($)	Mar. 31, 2018USD ($)parcel	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)parcel	Mar. 31, 2017USD ($)
Investment Holdings [Line Items]
Impairment of assets		$ 37	$ 0	$ 37	$ 0
Residential Parcel
Investment Holdings [Line Items]
Number of Real Estate Properties | parcel		1		1
Impairment of assets				$ 37
Subsequent Event [Member]
Investment Holdings [Line Items]
Proceeds from sale of property held-for-sale	$ 1,000
Subsequent Event [Member] | Residential Parcel
Investment Holdings [Line Items]
Proceeds from sale of property held-for-sale	$ 1,000

INVESTMENTS - SUMMARY OF INVEST

INVESTMENTS - SUMMARY OF INVESTMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Investment Holdings [Line Items]
Investments	$ 1,976	$ 2,209
Investment in Kukio Resort land development partnerships
Investment Holdings [Line Items]
Investments	1,926	2,159
Investment in leasehold land interest – Lot 4C
Investment Holdings [Line Items]
Investments	$ 50	$ 50

INVESTMENTS - LAND DEVELOPMENT

INVESTMENTS - LAND DEVELOPMENT PARTNERSHIPS (Details) $ in Thousands	Nov. 27, 2013USD ($)partnership	Mar. 31, 2018USD ($)lot	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)lot	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)
Investment Holdings [Line Items]
Equity in (loss) income of affiliates		$ (80)	$ (170)	$ (233)	$ 2,156
Investments		1,976		1,976		$ 2,209
Investment in Kukio Resort land development partnerships
Investment Holdings [Line Items]
Number of limited liability limited partnerships formed | partnership	2
Cash distribution from equity method investment					2,509
Difference between carrying amount and underlying equity		319		319
Basis difference adjustment		0	1	3	20
Investments		1,926		1,926		$ 2,159
Revenue		2,230	1,322	3,790	26,196
Gross profit		1,048	454	1,734	11,950
Net earnings (loss)		$ (185)	$ (598)	$ (688)	10,062
Investment in Kukio Resort land development partnerships | Noncontrolling Interest
Investment Holdings [Line Items]
Cash distribution from equity method investment					$ 307
K D Kukio Resorts LLLP | Investment in Kukio Resort land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	19.60%
K D Maniniowali LLLP | Investment in Kukio Resort land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	19.60%
KD Kaupulehu, LLLP | Investment in Kukio Resort land development partnerships
Investment Holdings [Line Items]
Ownership interest acquired	19.60%
Indirectly Acquired Interest | Investment in Kukio Resort land development partnerships
Investment Holdings [Line Items]
Aggregate cost	$ 5,140
KD Kaupulehu LLLP Increment I | Investment in Kukio Resort land development partnerships
Investment Holdings [Line Items]
Number of residential lots remaining to be sold | lot		23		23

INVESTMENTS - PERCENTAGE OF SAL

INVESTMENTS - PERCENTAGE OF SALES PAYMENTS (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018USD ($)a	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)aincrement	Mar. 31, 2017USD ($)
Investment Holdings [Line Items]
Revenues - sale of interest in leasehold land	$ 0	$ 0	$ 0	$ 1,678
Kaupulehu Developments
Investment Holdings [Line Items]
Area of land (in acres) | a	870		870
Number of development increments | increment			2
Revenues - sale of interest in leasehold land	$ 0	0	$ 0	1,678
Fees - included in general and administrative expenses	0	0	0	(260)
Proceeds from sale of interest in leasehold land, net of fees paid	$ 0	$ 0	$ 0	$ 1,418
Land Interest
Investment Holdings [Line Items]
Area of land (in acres) | a	1,000		1,000

OIL AND NATURAL GAS PROPERTIE37

OIL AND NATURAL GAS PROPERTIES AND ASSET RETIREMENT OBLIGATION (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2018	Oct. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligation as of beginning of period		$ 6,863			$ 6,863
Liabilities associated with properties sold					(1,752)
Revision of estimated obligation					47
Accretion expense					136	$ 213
Payments					(538)
Foreign currency translation adjustment					(121)
Asset retirement obligation as of end of period			$ 4,635		4,635
Less current portion			(1,223)		(1,223)		$ (1,231)
Asset retirement obligation, long-term			3,412		3,412		5,632
Proceeds from the sale of oil and natural gas properties					763	0
Income taxes receivable			2,208		2,208		$ 1,145
Gain on sale of oil and natural gas properties			2,250	$ 0	2,250	0
Total revenues			1,975	3,029	3,831	7,319
Net earnings (loss)			663	(642)	(371)	1,560
Net loss attributable to Barnwell Industries, Inc. stockholders			$ 679	$ (615)	$ (338)	$ 1,026
Net loss per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share)			$ 0.08	$ (0.07)	$ (0.04)	$ 0.12
Pouce Coupe
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Proceeds from the sale of oil and natural gas properties		$ 72
Income taxes receivable			$ 37		$ 37
Red Earth
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Liabilities associated with properties sold					(1,666)
Proceeds from the sale of oil and natural gas properties	$ 1,360
Income taxes receivable			$ 752		752
Percent Difference in Capitalized Costs Divided by Proved Reserves if the Gain is Recorded as Opposed to being Credited against the full-cost pool	322.00%
Gain on sale of oil and natural gas properties					2,135
Total revenues					3,831	$ 7,319
Net earnings (loss)					(371)	1,560
Net loss attributable to Barnwell Industries, Inc. stockholders					$ (338)	$ 1,026
Net loss per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share)					$ (0.04)	$ 0.12
Stolberg
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Proceeds from the sale of oil and natural gas properties	$ 120
Gain on sale of oil and natural gas properties					$ 115
Pro Forma | Red Earth
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Total revenues					3,439	$ 6,794
Net earnings (loss)					(2,223)	1,450
Net loss attributable to Barnwell Industries, Inc. stockholders					$ (2,190)	$ 916
Net loss per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share)					$ (0.26)	$ 0.11

RETIREMENT PLANS (Details)

RETIREMENT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Pension Plan
Net periodic benefit cost:
Service cost	$ 55	$ 72	$ 108	$ 144
Interest cost	89	87	178	174
Expected return on plan assets	(148)	(141)	(296)	(282)
Amortization of prior service cost (credit)	2	1	3	2
Amortization of net actuarial loss	27	41	49	82
Net periodic benefit cost	25	60	42	120
Other disclosures
Contribution by the entity to the Pension Plan			200
Estimated future employer contributions	300		300
SERP
Net periodic benefit cost:
Service cost	13	15	20	31
Interest cost	23	20	38	41
Amortization of prior service cost (credit)	(1)	(1)	(3)	(2)
Amortization of net actuarial loss	7	8	7	17
Net periodic benefit cost	42	42	62	87
Postretirement Medical
Net periodic benefit cost:
Service cost	0	0	0	0
Interest cost	19	22	38	44
Amortization of prior service cost (credit)	0	0	0	0
Amortization of net actuarial loss	3	47	6	94
Net periodic benefit cost	$ 22	$ 69	$ 44	$ 138

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests
United States	$ (982,000)	$ (651,000)	$ (2,125,000)	$ 1,411,000
Canada	1,858,000	(251,000)	1,481,000	(619,000)
Total	876,000	(902,000)	(644,000)	792,000
Components of the income tax provision (benefit)
Current	(256,000)	(276,000)	(829,000)	(348,000)
Deferred	453,000	(11,000)	523,000	114,000
Total	$ 197,000	$ (287,000)	$ (306,000)	$ (234,000)
Federal Statutory Income Tax Rate, Percent			24.50%
Income Tax Expense (Benefit) from remeasurement of net deferred tax assets			$ 0
Income tax benefit from AMT credit carryover refund provision			(460,000)
Income tax expense (benefit) from TCJA NOL changes			0
Transition Tax for Accumulated Foreign Earnings Income Tax Expense Benefit			$ 0

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Revenues	$ 1,917,000	$ 3,003,000	$ 3,740,000	$ 7,283,000
Interest income	58,000	26,000	91,000	36,000
Total revenues	1,975,000	3,029,000	3,831,000	7,319,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	227,000	384,000	507,000	708,000
Asset Impairment Charges
Impairment of assets	37,000	0	37,000	0
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	2,445,000	969,000	2,509,000	2,915,000
Equity in income (loss) of affiliates:
Equity in (loss) income of affiliates	(80,000)	(170,000)	(233,000)	2,156,000
General and administrative expenses	(1,563,000)	(1,754,000)	(3,044,000)	(3,781,000)
Interest income	58,000	26,000	91,000	36,000
Earnings (loss) before income taxes	860,000	(929,000)	(677,000)	1,326,000
Oil and natural gas
Revenues:
Revenues	859,000	1,409,000	1,812,000	2,550,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	157,000	292,000	356,000	527,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	127,000	317,000	223,000	377,000
Land investment
Revenues:
Revenues	0	0	0	1,678,000
Asset Impairment Charges
Impairment of assets	37,000	0	37,000	0
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	(37,000)	0	(37,000)	1,678,000
Contract drilling
Revenues:
Revenues	1,016,000	1,580,000	1,858,000	2,986,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	53,000	70,000	114,000	136,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	80,000	660,000	40,000	836,000
Other
Revenues:
Revenues	42,000	14,000	70,000	69,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	17,000	22,000	37,000	45,000
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	25,000	(8,000)	33,000	24,000
Intersegment Eliminations
Revenues:
Revenues			0
Gain (Loss) on Sale of Assets
Operating profit (loss) (before general and administrative expenses):
Operating profit (loss)	$ 2,250,000	$ 0	$ 2,250,000	$ 0

ACCUMULATED OTHER COMPREHENSI41

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Changes in foreign currency translation
Beginning accumulated foreign currency translation	$ 1,047	$ 836	$ 1,053	$ 906
Change in cumulative translation adjustment before reclassifications	(181)	22	(187)	(48)
Income taxes	0	0	0	0
Net current period other comprehensive (loss) income	(181)	22	(187)	(48)
Ending accumulated foreign currency translation	866	858	866	858
Changes in retirement plans
Beginning accumulated retirement plans benefit cost	(2,087)	(4,729)	(2,111)	(4,826)
Amortization of net actuarial loss and prior service cost	39	96	63	193
Income taxes	0	0	0	0
Net current period other comprehensive income	39	96	63	193
Ending accumulated retirement plans benefit cost	(2,048)	(4,633)	(2,048)	(4,633)
Accumulated other comprehensive loss, net of taxes	$ (1,182)	$ (3,775)	$ (1,182)	$ (3,775)	$ (1,058)

FAIR VALUE MEASUREMENTS FAIR VA

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2018	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of assets		$ 37	$ 0	$ 37	$ 0
Subsequent Event [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Proceeds from sale of property held-for-sale	$ 1,000

INFORMATION RELATING TO THE C43

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Supplemental disclosure of cash flow information:
Interest	$ 0	$ 5
Income taxes refunded, net	(20)	(180)
Canadian income tax withholding on proceeds from the sale of oil and natural gas properties	789	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	(88)	(183)
Increase (decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations	$ (38)	$ (62)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)lot	Mar. 31, 2017USD ($)lot	Sep. 30, 2017USD ($)
Related party transactions
Revenues - sale of interest in leasehold land	$ 0	$ 0	$ 0	$ 1,678
Kaupulehu Developments
Related party transactions
Revenues - sale of interest in leasehold land	0	$ 0	$ 0	1,678
Kaupulehu Developments | KD Kaupulehu LLLP Increment II [Member]
Related party transactions
Percent of Increment II Distributions			50.00%
Contingent Payments, Unrecorded	$ 8,000		$ 8,000
50% of Increment II Distributions Received					$ 2,500
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in Kukio Resort land development partnerships
Related party transactions
Ownership interest acquired	19.60%		19.60%
Revenues - sale of interest in leasehold land				$ 1,678
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in Kukio Resort land development partnerships | Increment II [Member]
Related party transactions
Number of single family lots sold | lot			0	1

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2018USD ($)	Mar. 31, 2018USD ($)a	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)a	Mar. 31, 2017USD ($)	May 14, 2018USD ($)a
Subsequent Event [Line Items]
Sale of interest in leasehold land		$ 0	$ 0	$ 0	$ 1,678
Investment in Kukio Resort land development partnerships
Subsequent Event [Line Items]
Cash distribution from equity method investment					2,509
Investment in Kukio Resort land development partnerships | Subsequent Event [Member]
Subsequent Event [Line Items]
Cash distribution from equity method investment	$ 373
Non-controlling Interests | Investment in Kukio Resort land development partnerships
Subsequent Event [Line Items]
Cash distribution from equity method investment					307
Non-controlling Interests | Investment in Kukio Resort land development partnerships | Subsequent Event [Member]
Subsequent Event [Line Items]
Cash distribution from equity method investment	48
Kaupulehu Developments
Subsequent Event [Line Items]
Sale of interest in leasehold land		$ 0	$ 0	$ 0	$ 1,678
Area of land (in acres) | a		870		870
Kaupulehu Developments | Subsequent Event [Member]
Subsequent Event [Line Items]
Sale of interest in leasehold land	$ 310
HAWAII | Loss from Catastrophes | Subsequent Event [Member]
Subsequent Event [Line Items]
Area of land (in acres) | a						16
Land						$ 165