Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 08, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-5103 | |
Entity Registrant Name | BARNWELL INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-0496921 | |
Entity Address, Address Line One | 1100 Alakea Street | |
Entity Address, Address Line Two | Suite 2900 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 531-8400 | |
Title of 12(b) Security | Common Stock, $0.50 par value | |
Trading Symbol | BRN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,277,160 | |
Entity Central Index Key | 0000010048 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 5,334 | $ 4,584 |
Accounts and other receivables, net of allowance for doubtful accounts of: $362,000 at December 31, 2020; $341,000 at September 30, 2020 | 2,034 | 2,176 |
Income taxes receivable | 448 | 472 |
Asset held for sale | 699 | 699 |
Other current assets | 1,464 | 1,556 |
Total current assets | 9,979 | 9,487 |
Asset for retirement benefits | 843 | 771 |
Investments | 88 | 901 |
Operating lease right-of-use assets | 227 | 249 |
Property and equipment | 76,217 | 73,431 |
Accumulated depletion, depreciation, and amortization | (73,313) | (69,657) |
Property and equipment, net | 2,904 | 3,774 |
Total assets | 14,041 | 15,182 |
Current liabilities: | ||
Accounts payable | 1,257 | 2,104 |
Accrued capital expenditures | 336 | 542 |
Accrued compensation | 390 | 408 |
Accrued operating and other expenses | 1,032 | 1,325 |
Current portion of operating lease liabilities | 116 | 111 |
Current portion of asset retirement obligation | 605 | 647 |
Other current liabilities | 873 | 1,227 |
Total current liabilities | 4,609 | 6,364 |
Long-term debt | 98 | 58 |
Operating lease liabilities | 115 | 143 |
Liability for retirement benefits | 4,858 | 4,829 |
Asset retirement obligation | 5,787 | 5,547 |
Deferred income tax liabilities | 233 | 194 |
Total liabilities | 15,700 | 17,135 |
Commitments and contingencies | ||
Equity: | ||
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 8,445,060 issued at December 31, 2020 and September 30, 2020 | 4,223 | 4,223 |
Additional paid-in capital | 1,350 | 1,350 |
Accumulated deficit | (3,313) | (3,897) |
Accumulated other comprehensive loss, net | (1,636) | (1,435) |
Treasury stock, at cost: 167,900 shares at December 31, 2020 and September 30, 2020 | (2,286) | (2,286) |
Total stockholders' deficit | (1,662) | (2,045) |
Non-controlling interests | 3 | 92 |
Total deficit | (1,659) | (1,953) |
Total liabilities and equity | $ 14,041 | $ 15,182 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 362 | $ 341 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 8,445,060 | 8,445,060 |
Treasury stock, shares (in shares) | 167,900 | 167,900 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||
Revenues | $ 4,387 | $ 4,850 |
Costs and expenses: | ||
General and administrative | 1,185 | 1,496 |
Depletion, depreciation, and amortization | 276 | 705 |
Impairment of assets | 630 | 0 |
Interest expense | 1 | 0 |
Total costs and expenses | 4,635 | 5,228 |
Loss before equity in income (loss) of affiliates and income taxes | (248) | (378) |
Equity in income (loss) of affiliates | 1,054 | (43) |
Earnings (loss) before income taxes | 806 | (421) |
Income tax provision (benefit) | 63 | (2) |
Net earnings (loss) | 743 | (419) |
Less: Net earnings (loss) attributable to non-controlling interests | 159 | (5) |
Net earnings (loss) attributable to Barnwell Industries, Inc. | $ 584 | $ (414) |
Basic and diluted net earnings (loss) per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share) | $ 0.07 | $ (0.05) |
Weighted-average number of common shares outstanding: | ||
Basic and diluted (in shares) | 8,277,160 | 8,277,160 |
Oil and natural gas | ||
Revenues: | ||
Revenues | $ 1,887 | $ 2,141 |
Costs and expenses: | ||
Costs and expenses | 1,435 | 1,213 |
Depletion, depreciation, and amortization | 195 | 606 |
Impairment of assets | 630 | 0 |
Contract drilling | ||
Revenues: | ||
Revenues | 1,942 | 2,646 |
Costs and expenses: | ||
Costs and expenses | 1,108 | 1,814 |
Depletion, depreciation, and amortization | 76 | 85 |
Land investment | ||
Revenues: | ||
Revenues | 485 | 0 |
Gas processing and other | ||
Revenues: | ||
Revenues | 73 | 63 |
Costs and expenses: | ||
Depletion, depreciation, and amortization | $ 5 | $ 14 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ 743 | $ (419) |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments, net of taxes of $0 | (234) | 5 |
Retirement plans: | ||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 33 | 60 |
Net actuarial gains arising during the period, net of taxes of $0 | 0 | 880 |
Curtailment gain, net of taxes of $0 | 0 | 1,699 |
Total other comprehensive (loss) income | (201) | 2,644 |
Total comprehensive income | 542 | 2,225 |
Less: Comprehensive (income) loss attributable to non-controlling interests | (159) | 5 |
Comprehensive income attributable to Barnwell Industries, Inc. | $ 383 | $ 2,230 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 |
Net actuarial gains arising during the period, taxes | 0 | 0 |
Curtailment gain, taxes | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interests |
Balance, beginning of period (in shares) at Sep. 30, 2019 | 8,277,160 | ||||||
Balance, beginning of period at Sep. 30, 2019 | $ 1,329 | $ 4,223 | $ 1,350 | $ 859 | $ (2,917) | $ (2,286) | $ 100 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | (419) | (414) | (5) | ||||
Foreign currency translation adjustments, net of taxes of $0 | 5 | 5 | |||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 60 | 60 | |||||
Net actuarial gains arising during the period, net of taxes of $0 | 880 | 880 | |||||
Curtailment gain, net of taxes of $0 | 1,699 | 1,699 | |||||
Balance, end of period (in shares) at Dec. 31, 2019 | 8,277,160 | ||||||
Balance, end of period at Dec. 31, 2019 | 3,554 | $ 4,223 | 1,350 | 445 | (273) | (2,286) | 95 |
Balance, beginning of period (in shares) at Sep. 30, 2020 | 8,277,160 | ||||||
Balance, beginning of period at Sep. 30, 2020 | (1,953) | $ 4,223 | 1,350 | (3,897) | (1,435) | (2,286) | 92 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | 743 | 584 | 159 | ||||
Foreign currency translation adjustments, net of taxes of $0 | (234) | (234) | |||||
Distributions to non-controlling interests | (248) | (248) | |||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 33 | 33 | |||||
Net actuarial gains arising during the period, net of taxes of $0 | 0 | ||||||
Curtailment gain, net of taxes of $0 | 0 | ||||||
Balance, end of period (in shares) at Dec. 31, 2020 | 8,277,160 | ||||||
Balance, end of period at Dec. 31, 2020 | $ (1,659) | $ 4,223 | $ 1,350 | $ (3,313) | $ (1,636) | $ (2,286) | $ 3 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 |
Net actuarial gains arising during the period, taxes | 0 | 0 |
Curtailment gain, taxes | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 743 | $ (419) |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: | ||
Equity in (income) loss of affiliates | (1,054) | 43 |
Depletion, depreciation, and amortization | 276 | 705 |
Impairment of assets | 630 | 0 |
Sale of interest in leasehold land, net of fees paid | (426) | 0 |
Distributions of income from equity investees | 1,054 | 0 |
Retirement benefits (income) expense | (8) | 71 |
Accretion of asset retirement obligation | 137 | 134 |
Non-cash rent (income) expense | (1) | 30 |
Deferred income tax expense (benefit) | 39 | (9) |
Asset retirement obligation payments | (38) | (2) |
Retirement plan contributions and payments | (2) | (2) |
Bad debt expense | 7 | 0 |
Decrease from changes in current assets and liabilities | (1,277) | (1,917) |
Net cash provided by (used in) operating activities | 80 | (1,366) |
Cash flows from investing activities: | ||
Proceeds from sale of interest in leasehold land, net of fees paid | 426 | 0 |
Distribution from equity investees in excess of earnings | 813 | 0 |
Proceeds from sale of oil and natural gas assets | 0 | 594 |
Capital expenditures - oil and natural gas | (364) | (1,444) |
Capital expenditures - all other | 0 | (13) |
Net cash provided by (used in) investing activities | 875 | (863) |
Cash flows from financing activities: | ||
Borrowings on long-term debt | 31 | 0 |
Distributions to non-controlling interests | (248) | 0 |
Net cash used in financing activities | (217) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 12 | 15 |
Net increase (decrease) in cash and cash equivalents | 750 | (2,214) |
Cash and cash equivalents at beginning of period | 4,584 | 4,613 |
Cash and cash equivalents at end of period | $ 5,334 | $ 2,399 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2020 | |
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) and a 75%-owned land investment partnership (KD Kona 2013 LLLP). All significant intercompany accounts and transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities 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, 2020 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. The Condensed Consolidated Balance Sheet as of September 30, 2020 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, 2020, results of operations, comprehensive income, equity (deficit) and cash flows for the three months ended December 31, 2020 and 2019, have been made. The results of operations for the period ended December 31, 2020 are not necessarily indicative of the operating results for the full year. Use of Estimates in the Preparation of Condensed Consolidated Financial Statements The preparation of the condensed consolidated 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 assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to complete, proved oil and natural gas reserves, and the carrying value of other assets, and such assumptions may impact the amount at which such items are recorded. 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, as amended by our Form 10-K/A Amendment No. 1. Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, “Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” which provides changes to certain fair value disclosure requirements. The Company adopted the provisions of this Accounting Standards Update (“ASU”) effective October 1, 2020. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-17, “Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities,” which modifies the guidance related to indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interest. The Company adopted the provisions of this ASU effective October 1, 2020. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | GOING CONCERN The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business for the twelve-month period following the date of issuance of these condensed consolidated financial statements. Our ability to sustain our business in the future will depend on sufficient oil and natural gas operating cash flows, which are highly sensitive to volatile oil and natural gas prices, sufficient contract drilling operating cash flows, which are subject to large changes in demand, and sufficient future land investment segment proceeds and distributions from the Kukio Resort Land Development Partnerships, the timing of which are both highly uncertain and not within Barnwell’s control. A sufficient level of such cash inflows are necessary to fund discretionary oil and natural gas capital expenditures, which must be economically successful to provide sufficient returns, as well as fund our non-discretionary outflows such as oil and natural gas asset retirement obligations and ongoing operating and general and administrative expenses. We have experienced a trend of losses and negative operating cash flows in three of the last four years. Due to uncertainties regarding oil prices and the continuing impacts and uncertainties of the COVID-19 pandemic, we now face a greater uncertainty about our cash inflows as described above, which in turn leads to substantial doubt regarding our ability to make the required discretionary cash outflows for the capital expenditures necessary to convert our proved undeveloped reserves to proved developed reserves. Furthermore, because of the greater uncertainty about our cash inflows described above, there is substantial doubt about our ability to fund our non-discretionary cash outflows and thus substantial doubt about our ability to continue as a going concern for one year from the date of the filing of this report. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 3 Months Ended |
Dec. 31, 2020 | |
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. There were no options outstanding at December 31, 2020. Options to purchase 60,000 shares of common stock were excluded from the computation of diluted shares for the three months ended December 31, 2019, 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, 2020 Net Earnings Shares Per-Share Basic net earnings per share $ 584,000 8,277,160 $ 0.07 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 584,000 8,277,160 $ 0.07 Three months ended December 31, 2019 Net Loss (Numerator) Shares Per-Share Basic net loss per share $ (414,000) 8,277,160 $ (0.05) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (414,000) 8,277,160 $ (0.05) |
ASSET HELD FOR SALE
ASSET HELD FOR SALE | 3 Months Ended |
Dec. 31, 2020 | |
Asset Held For Sale [Abstract] | |
ASSET HELD FOR SALE | ASSET HELD FOR SALE The Company's Honolulu corporate office is currently listed for sale. Accordingly, the Company has designated this property as an asset held for sale and the carrying value in the aggregate amount of $699,000 is included in “Asset held for sale” on the Company's Condensed Consolidated Balance Sheets at December 31, 2020 and September 30, 2020. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investment in Kukio Resort Land Development Partnerships On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP (“KD Kona”) and KKM Makai, LLLP (“KKM”), and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP (“KDK”) for $5,140,000. These entities, collectively referred to hereinafter as the “Kukio Resort Land Development Partnerships,” 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. KDK holds interests in KD Acquisition, LLLP (“KD I”) and KD Acquisition II, LP, formerly KD Acquisition II, LLLP (“KD II”). KD I is the developer of Kaupulehu Lot 4A Increment I (“Increment I”), and KD II is the developer of Kaupulehu Lot 4A Increment II (“Increment II”). Barnwell's ownership interests in the Kukio Resort Land Development Partnerships is accounted for using the equity method of accounting. The partnerships derive income from the sale of residential parcels, of which 15 lots remain to be sold at Increment I as of December 31, 2020, as well as from commissions on real estate sales by the real estate sales office. Two ocean front parcels approximately two to three acres in size fronting the ocean were developed within Increment II by KD II, of which one was sold in fiscal 2017 and one was sold in fiscal 2016. The remaining acreage within Increment II is not yet under development, and there is no assurance that development of such acreage will in fact occur. In March 2019, KD II admitted a new development partner, Replay Kaupulehu Development, LLC (“Replay”), a party unrelated to Barnwell, in an effort to move forward with development of the remainder of Increment II at Kaupulehu. KDK and Replay hold ownership interests of 55% and 45%, respectively, of KD II and Barnwell has a 10.8% indirect non-controlling ownership interest in KD II through KDK, which is accounted for using the equity method of accounting. Barnwell continues to have an indirect 19.6% non-controlling ownership interest in KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD I. Barnwell has the right to receive distributions from the Kukio Resort Land Development Partnerships via its its non-controlling interests in KD Kona and KKM, based on its respective partnership sharing ratios of 75% and 34.45%, respectively. Additionally, Barnwell was entitled to a preferred return from KKM on any allocated equity in income of the Kukio Resort Land Development Partnerships in excess of its partnership sharing ratio for cumulative distributions to all of its partners in excess of $45,000,000 from those partnerships. Cumulative distributions from the Kukio Resort Land Development Partnerships have reached the $45,000,000 threshold and in the quarter ended December 31, 2020, the Kukio Resort Land Development Partnerships made distributions in excess of the threshold out of the proceeds from the sale of two lots in Increment I. Accordingly, Barnwell received a total of $459,000 in preferred return payments, which is reflected as an additional equity pickup in the "Equity in income (loss) of affiliates" line item on the accompanying Condensed Consolidated Statement of Operations for the three months ended December 31, 2020. The preferred return payments received during the quarter ended December 31, 2020 brought the cumulative preferred return total to $656,000, which is the total amount Barnwell was entitled to, and thus there is no more preferred return outstanding as of December 31, 2020. During the three months ended December 31, 2020, Barnwell received net cash distributions in the amount of $1,712,000 from the Kukio Resort Land Development Partnerships after distributing $155,000 to non-controlling interests. Of the $1,712,000 of net cash distributions received from the Kukio Resort Land Development Partnerships, $459,000 represented a payment of the preferred return from KKM, as discussed above. There were no cash distributions from the Kukio Resort Land Development Partnerships for the three months ended December 31, 2019. Barnwell's share of the operating results of its equity affiliates was income of $1,054,000 for the three months ended December 31, 2020, which includes the $459,000 payment of the preferred return from KKM discussed above, as compared to a loss of $43,000 for the three months ended December 31, 2019. 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 $263,000 as of December 31, 2020, 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 adjustment of $20,000, for the three months ended December 31, 2020, increased equity in income of affiliates. There was an immaterial basis difference adjustment for the three months ended December 31, 2019. Summarized financial information for the Kukio Resort Land Development Partnerships is as follows: Three months ended 2020 2019 Revenue $ 8,120,000 $ 1,766,000 Gross profit $ 3,998,000 $ 796,000 Net earnings (loss) $ 2,612,000 $ (168,000) As of December 31, 2020 and September 30, 2020, Barnwell's non-current investment in Kukio Resort Land Development Partnerships was $88,000 and $901,000, respectively. 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 Increment I and Increment II by KD I and KD II (see Note 16). With respect to Increment I, Kaupulehu Developments is entitled to receive payments from KD I based on the following percentages of the gross receipts from KD I’s sales of single-family residential lots in Increment I: 10% of such aggregate gross proceeds greater than $100,000,000 up to $300,000,000; and 14% of such aggregate gross proceeds in excess of $300,000,000. The total amount of gross proceeds from single-family lot sales was $224,500,000 through December 31, 2020. Two single-family lots were sold during the three months ended December 31, 2020 and 15 single-family lots, of the 80 lots developed within Increment I, remained to be sold as of December 31, 2020. Under the terms of the Increment II agreement with KD II, Kaupulehu Developments is entitled to 15% of the distributions of KD II, the cost of which is to be solely borne by KDK out of its 55% ownership interest in KD II, plus a priority payout of 10% of KDK’s cumulative net profits derived from Increment II sales subsequent to Phase 2A, up to a maximum of $3,000,000 as to the priority payout. Such interests are limited to distributions or net profits interests and Barnwell will not have any partnership interests in KD II or KDK through its interest in Kaupulehu Developments. The arrangement also gives Barnwell rights to three single-family residential lots in Phase 2A of Increment II, and four single-family residential lots in phases subsequent to Phase 2A when such lots are developed by KD II, all at no cost to Barnwell. Barnwell is committed to commence construction of improvements within 90 days of the transfer of the four lots in the phases subsequent to Phase 2A as a condition of the transfer of such lots. Also, in addition to Barnwell’s existing obligations to pay professional fees to certain parties based on percentages of its gross receipts, Kaupulehu Developments is also obligated to pay an amount equal to 0.72% and 0.20% of the cumulative net profits of KD II to KD Development, LLC and a pool of various individuals, respectively, all of whom are partners of KKM and are unrelated to Barnwell, in compensation for the agreement of these parties to admit the new development partner for Increment II. Such compensation will be reflected as the obligation becomes probable and the amount of the obligation can be reasonably estimated. The following table summarizes Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended 2020 2019 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ 485,000 $ — Fees - included in general and administrative expenses (59,000) — Sale of interest in leasehold land, net of fees paid $ 426,000 $ — There is no assurance with regards to the amounts of future payments from Increment I or Increment II to be received, or that the remaining acreage within Increment II will be developed. Investment in Leasehold Land Interest - Lot 4C |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 3 Months Ended |
Dec. 31, 2020 | |
Oil and Natural Gas Properties [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | OIL AND NATURAL GAS PROPERTIES Dispositions There were no oil and natural gas property dispositions during the three months ended December 31, 2020. In the quarter ended December 31, 2019, Barnwell entered into a purchase and sale agreement with an independent third party and sold its interests in properties located in the Progress area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $594,000 in order to, among other things, reflect an economic effective date of October 1, 2019. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of the relationship between capitalized costs and proved reserves. Acquisitions There were no significant amounts paid for oil and natural gas property acquisitions during the three months ended December 31, 2020, and 2019. Impairment of Oil and Natural Gas Properties Under the full cost method of accounting, the Company performs quarterly oil and natural gas ceiling test calculations. There was a $630,000 ceiling test impairment during the three months ended December 31, 2020. There was no ceiling test impairment during the three months ended December 31, 2019. Changes in the mandated 12-month historical rolling average first-day-of-the-month prices for oil, natural gas and natural gas liquids prices, the value of reserve additions as compared to the amount of capital expenditures to obtain them, and changes in production rates and estimated levels of reserves, future development costs and the estimated market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties. The ceiling test calculation as of December 31, 2019 included management’s estimation that the Company had the ability to fund all of the future capital expenditures necessary over the next five years to develop proved undeveloped reserves in the Twining area of Alberta, Canada. However, due to the impact on oil prices and the extreme uncertainties created by the COVID-19 pandemic on the Company's financial outlook, management is no longer reasonably certain that the Company will have the financial resources necessary to make any of the capital expenditures necessary to develop the proved undeveloped reserves. Therefore, the proved undeveloped reserves have been excluded from the quarterly ceiling test calculations subsequent to December 31, 2019. As discussed above, the ceiling test mandates the use of the 12-month historical rolling average first-day-of-the-month prices. If the 12-month historical rolling average first-day-of-the-month prices decline from the 12-month historical rolling average first-day-of-the-month prices used in the December 31, 2020 ceiling calculation, the Company could incur further impairment write-downs in future periods in the absence of any offsetting factors that are not currently known or projected. |
RETIREMENT PLANS
RETIREMENT PLANS | 3 Months Ended |
Dec. 31, 2020 | |
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 Executive 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. In December 2019, the Company’s Board of Directors approved a resolution to freeze all future benefit accruals for all participants under the Company’s Pension Plan and SERP effective December 31, 2019. Consequently, current participants in the Pension Plan and SERP no longer accrue new benefits under the plans and new employees of the Company are no longer eligible to enter the Pension Plan and SERP as participants after December 31, 2019. The freezing of the Pension Plan and SERP triggered a curtailment which required a remeasurement of the projected benefit obligations of the Pension Plan and SERP and resulted in an $880,000 actuarial gain in accumulated other comprehensive loss and a $1,699,000 reduction in unrecognized pension benefit costs that were previously included in accumulated other comprehensive loss, with a corresponding benefit in other comprehensive income which were recorded in the quarter ended December 31, 2019. The following table details the components of net periodic benefit income (cost) for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended December 31, 2020 2019 2020 2019 2020 2019 Service cost $ — $ 50,000 $ — $ 3,000 $ — $ — Interest cost 65,000 83,000 13,000 18,000 18,000 20,000 Expected return on plan assets (137,000) (163,000) — — — — Amortization of prior service cost (credit) — 1,000 — (1,000) — — Amortization of net actuarial loss 10,000 35,000 — 5,000 23,000 20,000 Curtailment cost (income) — 53,000 — (53,000) — — Net periodic benefit (income) cost $ (62,000) $ 59,000 $ 13,000 $ (28,000) $ 41,000 $ 40,000 The net periodic benefit (income) cost, including service cost, is included in “General and administrative” expenses in the Company's Condensed Consolidated Statements of Operations. Currently, no contributions are expected to be made to the Pension Plan during fiscal 2021. 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 2021 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, 2020 | |
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 2020 2019 United States $ 1,422,000 $ (147,000) Canada (775,000) (269,000) $ 647,000 $ (416,000) The components of the income tax provision (benefit) are as follows: Three months ended 2020 2019 Current $ 24,000 $ 7,000 Deferred 39,000 (9,000) $ 63,000 $ (2,000) 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, 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. On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act (the “Act”), an omnibus spending bill to fund the federal government that also includes an array of COVID-related tax relief for individuals and businesses. The tax-related measures contained in the Act revise and expand provisions enacted earlier in the year by the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act. The Act also extends a number of expiring tax provisions. Additionally, the Act provides for a 100% deduction for certain business meals incurred in calendar years 2021 and 2022. The Company determined that income tax effects related to the passage of the Act were not material to the financial statements for the three months ended December 31, 2020. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTACTS WITH CUSTOMERS | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables provides information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three months ended December 31, 2020 and 2019. Three months ended December 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,380,000 $ — $ — $ — $ 1,380,000 Natural gas 375,000 — — — 375,000 Natural gas liquids 132,000 — — — 132,000 Drilling and pump — 1,942,000 — — 1,942,000 Contingent residual payments — — 485,000 — 485,000 Other — — — 73,000 73,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Geographical regions: United States $ — $ 1,942,000 $ 485,000 $ — $ 2,427,000 Canada 1,887,000 — — 73,000 1,960,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Timing of revenue recognition: Goods transferred at a point in time $ 1,887,000 $ — $ 485,000 $ 73,000 $ 2,445,000 Services transferred over time — 1,942,000 — — 1,942,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Three months ended December 31, 2019 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,725,000 $ — $ — $ — $ 1,725,000 Natural gas 322,000 — — — 322,000 Natural gas liquids 94,000 — — — 94,000 Drilling and pump — 2,646,000 — — 2,646,000 Contingent residual payments — — — — — Other — — — 56,000 56,000 Total revenues before interest income $ 2,141,000 $ 2,646,000 $ — $ 56,000 $ 4,843,000 Geographical regions: United States $ — $ 2,646,000 $ — $ 7,000 $ 2,653,000 Canada 2,141,000 — — 49,000 2,190,000 Total revenues before interest income $ 2,141,000 $ 2,646,000 $ — $ 56,000 $ 4,843,000 Timing of revenue recognition: Goods transferred at a point in time $ 2,141,000 $ — $ — $ 56,000 $ 2,197,000 Services transferred over time — 2,646,000 — — 2,646,000 Total revenues before interest income $ 2,141,000 $ 2,646,000 $ — $ 56,000 $ 4,843,000 Contract Balances The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers: December 31, 2020 September 30, 2020 Accounts receivables from contracts with customers $ 1,625,000 $ 1,772,000 Contract assets 385,000 413,000 Contract liabilities 751,000 1,097,000 Accounts receivables from contracts with customers are included in "Accounts and other receivables, net of allowance for doubtful accounts," and contract assets, which includes costs and estimated earnings in excess of billings and retainage, are included in “Other current assets.” Contract liabilities, which includes billings in excess of costs and estimated earnings are included in “Other current liabilities” in the accompanying Condensed Consolidated Balance Sheets. Retainage, included in contract assets, represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice, up to contractually-specified maximums. The Company classifies as a current asset those retainages that are expected to be collected in the next twelve months. Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights are generally unconditional at the time its performance obligations are satisfied. When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs and estimated earnings on uncompleted contracts. As of December 31, 2020 and September 30, 2020, the Company had $751,000 and $1,097,000, respectively, included in “Other current liabilities” on the balance sheet for those performance obligations expected to be completed in the next twelve months. During the three months ended December 31, 2020 and 2019, the amount of revenue recognized that was previously included in contract liabilities as of the beginning of the respective period was $573,000 and $1,480,000, respectively. Contracts are sometimes modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods and services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis. Performance Obligations The Company’s remaining performance obligations for drilling and pump installation contracts (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments. In addition, our customers have the right, under some infrequent circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. Nearly all of the Company's contract drilling segment contracts have original expected durations of one year or less. At December 31, 2020, the Company had three contract drilling jobs with original expected durations of greater than one year. For these contracts, approximately 7% of the remaining performance obligation of $2,615,000 is expected to be recognized as revenue in the next twelve months and the remaining, thereafter. Contract Fulfillment Costs Preconstruction costs, which include costs such as set-up and mobilization, are capitalized and allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. As of December 31, 2020 and September 30, 2020, the Company had $147,000 and $145,000, respectively, in unamortized preconstruction costs related to contracts that were not completed. During the three months ended December 31, 2020 and 2019, the amortization of preconstruction costs related to contracts were not material and were included in the accompanying Condensed Consolidated Statements of Operations. Additionally, no impairment charges in connection with the Company’s preconstruction costs were recorded during the three months ended December 31, 2020 and 2019. Water Well Re-drill |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Revenues: Oil and natural gas $ 1,887,000 $ 2,141,000 Contract drilling 1,942,000 2,646,000 Land investment 485,000 — Other 73,000 56,000 Total before interest income 4,387,000 4,843,000 Interest income — 7,000 Total revenues $ 4,387,000 $ 4,850,000 Depletion, depreciation, and amortization: Oil and natural gas $ 195,000 $ 606,000 Contract drilling 76,000 85,000 Other 5,000 14,000 Total depletion, depreciation, and amortization $ 276,000 $ 705,000 Impairment: Oil and natural gas $ 630,000 $ — Total impairment $ 630,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ (373,000) $ 322,000 Contract drilling 758,000 747,000 Land investment 485,000 — Other 68,000 42,000 Total operating profit 938,000 1,111,000 Equity in income (loss) of affiliates: Land investment 1,054,000 (43,000) General and administrative expenses (1,185,000) (1,496,000) Interest expense (1,000) — Interest income — 7,000 Earnings (loss) before income taxes $ 806,000 $ (421,000) |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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 2020 2019 Foreign currency translation: Beginning accumulated foreign currency translation $ 545,000 $ 691,000 Change in cumulative translation adjustment before reclassifications (234,000) 5,000 Income taxes — — Net current period other comprehensive (loss) income (234,000) 5,000 Ending accumulated foreign currency translation 311,000 696,000 Retirement plans: Beginning accumulated retirement plans benefit cost (1,980,000) (3,608,000) Amortization of net actuarial loss and prior service cost 33,000 60,000 Net actuarial gains arising during the period — 2,579,000 Income taxes — — Net current period other comprehensive income 33,000 2,639,000 Ending accumulated retirement plans benefit cost (1,947,000) (969,000) Accumulated other comprehensive loss, net of taxes $ (1,636,000) $ (273,000) The amortization of net actuarial loss and prior service cost for the retirement plans are included in the computation of net periodic benefit (income) cost which is a component of “General and administrative” expenses on the accompanying Condensed Consolidated Statements of Operations (see Note 7 for additional details). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The estimated fair values of oil and natural gas properties and the asset retirement obligation incurred in the drilling of oil and natural gas wells or assumed in the acquisitions of additional oil and natural gas working interests are based on an estimated discounted cash flow model and market assumptions. The significant Level 3 assumptions used in the calculation of estimated discounted cash flows included future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development, operating and asset retirement costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. Barnwell estimates the fair value of asset retirement obligations based on the projected discounted future cash outflows required to settle abandonment and restoration liabilities. Such an estimate requires assumptions and judgments regarding the existence of liabilities, the amount and timing of cash outflows required to settle the liability, what constitutes adequate restoration, inflation factors, credit adjusted discount rates, and consideration of changes in legal, regulatory, environmental and political environments. Abandonment and restoration cost estimates are determined in conjunction with Barnwell’s |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Paycheck Protection Program Loan On April 28, 2020, the Company, as obligor, entered into a promissory note evidencing an unsecured loan in the approximate amount of $147,000 under the Paycheck Protection Program (“PPP”) pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) Act that was signed into law in March 2020. The note matures two years after the date of the loan disbursement and bears interest at a fixed annual rate of 1%, with the principal and interest payments deferred until ten months after the last day of the covered period. Under the terms of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act of 2020, and the PPP, the Company can apply for and be granted forgiveness for all or a portion of the loan issued under the PPP and the loan is expected to be forgiven to the extent the proceeds are used in accordance with the PPP to cover payroll, mortgage interest, rent, and utility costs incurred by the Company over the 24-week period following the loan disbursement date. As of the date of this filing, the Company is in the process of applying for forgiveness and believes that its use of the loan proceeds will meet the conditions for forgiveness under the PPP and expects the loan to be recorded as income when legal forgiveness is obtained. As of December 31, 2020, the current and long-term portions of the loan were $81,000 and $66,000, respectively, and the current portion is included in “Other current liabilities” in the Company's Condensed Consolidated Balance Sheet. Canada Emergency Business Account Loan During the quarter ended December 31, 2020, the Company’s Canadian subsidiary, Barnwell of Canada, received a loan of approximately $31,000 (CAD$40,000) under the Canada Emergency Business Account loan program for small businesses. The loan is interest-free with no principal payments required until December 31, 2022, after which the remaining loan balance is converted to a three |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Dec. 31, 2020 | |
Loss Contingency [Abstract] | |
CONTINGENCIES | CONTINGENCIES Legal and Regulatory Matters Barnwell is routinely involved in disputes with third parties that occasionally require litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell’s management is not aware of any claims or litigation involving Barnwell that are likely to have a material adverse effect on its results of operations, financial position or liquidity. In the year ended September 30, 2019, two of the water wells drilled by the contract drilling segment for one customer were determined to not meet the contract specifications for plumbness. Subsequently, in the quarter ended March 31, 2020, the Company executed a separate five-year warranty agreement with the customer for one of the wells that did not meet plumbness. Under the terms of the agreement, if the lack of plumbness is determined to be the cause of a pump failure within the warranty |
INFORMATION RELATING TO THE CON
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | 3 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS | INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSCapital expenditure accruals related to oil and natural gas exploration and development decreased $225,000 during the three months ended December 31, 2020 and increased $1,661,000 during the three months ended December 31, 2019. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations decreased $176,000 during the three months ended December 31, 2020 and increased $323,000 during the three months ended December 31, 2019. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Kaupulehu Developments is entitled to receive payments from the sales of lots and/or residential units by KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds indirect 19.6% and 10.8% non-controlling ownership interests, respectively, accounted for under the equity method of investment. The percentage of sales 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. Changes to the arrangement above, effective March 7, 2019, are discussed in Note 5. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In January 2021, the Company entered into a cooperation and support agreement with MRMP-Managers LLC, Ned L. Sherwood Revocable Trust, Ned L. Sherwood and Bradley M. Tirpak (collectively, the “MRMP Stockholders”), with respect to the potential proxy contest pertaining to the election of directors to our Board of Directors (the “Board”). Pursuant to the terms of the agreement, among other things, the Company will nominate its current slate of directors, which includes three of the MRMP nominees and two new independent directors elected in 2020, to stand for reelection to the Board at the upcoming 2021 annual meeting of stockholders. The MRMP Stockholders have agreed to withdraw their proposed slate of directors and to vote their shares of common stock of the Company in favor of the election of the designated slate. In exchange for this arrangement, the Company has agreed to reimburse the MRMP Stockholders for their reasonable, documented out-of-pocket fees and expenses (including legal expenses) in connection with the MRMP Stockholders’ election contest at the Company’s 2020 annual meeting of stockholders and the negotiation of this agreement incurred through the filing of an amended Schedule 13D promptly after the date of this agreement, in an amount not to exceed $300,000 in the aggregate. One-half of such expenses shall be paid promptly following the execution of the agreement and one-half of such expenses shall be paid within ninety (90) days of the date of the agreement. The financial statement impacts of this agreement will be reflected in the Company’s quarter ending March 31, 2021. Additionally, in January 2021, Barnwell received a net cash distribution in the amount of $199,000 from the Kukio Resort Land Development Partnerships. Financial results of this distribution will be reflected in Barnwell's quarter ending March 31, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
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) and a 75%-owned land investment partnership (KD Kona 2013 LLLP). All significant intercompany accounts and transactions have been eliminated. Undivided interests in oil and natural gas exploration and production joint ventures are consolidated on a proportionate basis. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities 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, 2020 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1. The Condensed Consolidated Balance Sheet as of September 30, 2020 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, 2020, results of operations, comprehensive income, equity (deficit) and cash flows for the three months ended December 31, 2020 and 2019, have been made. The results of operations for the period ended December 31, 2020 are not necessarily indicative of the operating results for the full year. |
Use of Estimates in the Preparation of Condensed Consolidated Financial Statements | Use of Estimates in the Preparation of Condensed Consolidated Financial Statements The preparation of the condensed consolidated 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 assumptions are required in the valuation of deferred tax assets, asset retirement obligations, share-based payment arrangements, obligations for retirement plans, contract drilling estimated costs to complete, proved oil and natural gas |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, “Fair Value Measurement: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” which provides changes to certain fair value disclosure requirements. The Company adopted the provisions of this Accounting Standards Update (“ASU”) effective October 1, 2020. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-17, “Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities,” which modifies the guidance related to indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interest. The Company adopted the provisions of this ASU effective October 1, 2020. The adoption of this update did not have an impact on Barnwell's consolidated financial statements. |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
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, 2020 Net Earnings Shares Per-Share Basic net earnings per share $ 584,000 8,277,160 $ 0.07 Effect of dilutive securities - common stock options — — Diluted net earnings per share $ 584,000 8,277,160 $ 0.07 Three months ended December 31, 2019 Net Loss (Numerator) Shares Per-Share Basic net loss per share $ (414,000) 8,277,160 $ (0.05) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (414,000) 8,277,160 $ (0.05) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Summarized financial information for the land development partnerships | Summarized financial information for the Kukio Resort Land Development Partnerships is as follows: Three months ended 2020 2019 Revenue $ 8,120,000 $ 1,766,000 Gross profit $ 3,998,000 $ 796,000 Net earnings (loss) $ 2,612,000 $ (168,000) |
Summary of increment I and increment II percentage of sales payment revenues received | The following table summarizes Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended 2020 2019 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ 485,000 $ — Fees - included in general and administrative expenses (59,000) — Sale of interest in leasehold land, net of fees paid $ 426,000 $ — |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost (income) | The following table details the components of net periodic benefit income (cost) for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended December 31, 2020 2019 2020 2019 2020 2019 Service cost $ — $ 50,000 $ — $ 3,000 $ — $ — Interest cost 65,000 83,000 13,000 18,000 18,000 20,000 Expected return on plan assets (137,000) (163,000) — — — — Amortization of prior service cost (credit) — 1,000 — (1,000) — — Amortization of net actuarial loss 10,000 35,000 — 5,000 23,000 20,000 Curtailment cost (income) — 53,000 — (53,000) — — Net periodic benefit (income) cost $ (62,000) $ 59,000 $ 13,000 $ (28,000) $ 41,000 $ 40,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of income (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 2020 2019 United States $ 1,422,000 $ (147,000) Canada (775,000) (269,000) $ 647,000 $ (416,000) |
Schedule of components of the income tax provision (benefit) | The components of the income tax provision (benefit) are as follows: Three months ended 2020 2019 Current $ 24,000 $ 7,000 Deferred 39,000 (9,000) $ 63,000 $ (2,000) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue | The following tables provides information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three months ended December 31, 2020 and 2019. Three months ended December 31, 2020 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,380,000 $ — $ — $ — $ 1,380,000 Natural gas 375,000 — — — 375,000 Natural gas liquids 132,000 — — — 132,000 Drilling and pump — 1,942,000 — — 1,942,000 Contingent residual payments — — 485,000 — 485,000 Other — — — 73,000 73,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Geographical regions: United States $ — $ 1,942,000 $ 485,000 $ — $ 2,427,000 Canada 1,887,000 — — 73,000 1,960,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Timing of revenue recognition: Goods transferred at a point in time $ 1,887,000 $ — $ 485,000 $ 73,000 $ 2,445,000 Services transferred over time — 1,942,000 — — 1,942,000 Total revenues before interest income $ 1,887,000 $ 1,942,000 $ 485,000 $ 73,000 $ 4,387,000 Three months ended December 31, 2019 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 1,725,000 $ — $ — $ — $ 1,725,000 Natural gas 322,000 — — — 322,000 Natural gas liquids 94,000 — — — 94,000 Drilling and pump — 2,646,000 — — 2,646,000 Contingent residual payments — — — — — Other — — — 56,000 56,000 Total revenues before interest income $ 2,141,000 $ 2,646,000 $ — $ 56,000 $ 4,843,000 Geographical regions: United States $ — $ 2,646,000 $ — $ 7,000 $ 2,653,000 Canada 2,141,000 — — 49,000 2,190,000 Total revenues before interest income $ 2,141,000 $ 2,646,000 $ — $ 56,000 $ 4,843,000 Timing of revenue recognition: Goods transferred at a point in time $ 2,141,000 $ — $ — $ 56,000 $ 2,197,000 Services transferred over time — 2,646,000 — — 2,646,000 Total revenues before interest income $ 2,141,000 $ 2,646,000 $ — $ 56,000 $ 4,843,000 |
Summary of contract with customer, asset and liability | The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers: December 31, 2020 September 30, 2020 Accounts receivables from contracts with customers $ 1,625,000 $ 1,772,000 Contract assets 385,000 413,000 Contract liabilities 751,000 1,097,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Revenues: Oil and natural gas $ 1,887,000 $ 2,141,000 Contract drilling 1,942,000 2,646,000 Land investment 485,000 — Other 73,000 56,000 Total before interest income 4,387,000 4,843,000 Interest income — 7,000 Total revenues $ 4,387,000 $ 4,850,000 Depletion, depreciation, and amortization: Oil and natural gas $ 195,000 $ 606,000 Contract drilling 76,000 85,000 Other 5,000 14,000 Total depletion, depreciation, and amortization $ 276,000 $ 705,000 Impairment: Oil and natural gas $ 630,000 $ — Total impairment $ 630,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ (373,000) $ 322,000 Contract drilling 758,000 747,000 Land investment 485,000 — Other 68,000 42,000 Total operating profit 938,000 1,111,000 Equity in income (loss) of affiliates: Land investment 1,054,000 (43,000) General and administrative expenses (1,185,000) (1,496,000) Interest expense (1,000) — Interest income — 7,000 Earnings (loss) before income taxes $ 806,000 $ (421,000) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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 2020 2019 Foreign currency translation: Beginning accumulated foreign currency translation $ 545,000 $ 691,000 Change in cumulative translation adjustment before reclassifications (234,000) 5,000 Income taxes — — Net current period other comprehensive (loss) income (234,000) 5,000 Ending accumulated foreign currency translation 311,000 696,000 Retirement plans: Beginning accumulated retirement plans benefit cost (1,980,000) (3,608,000) Amortization of net actuarial loss and prior service cost 33,000 60,000 Net actuarial gains arising during the period — 2,579,000 Income taxes — — Net current period other comprehensive income 33,000 2,639,000 Ending accumulated retirement plans benefit cost (1,947,000) (969,000) Accumulated other comprehensive loss, net of taxes $ (1,636,000) $ (273,000) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Dec. 31, 2020 | |
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% |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Earnings (Loss) (Numerator) | ||
Basic | $ 584 | $ (414) |
Effect of dilutive securities - common stock options | 0 | 0 |
Diluted | $ 584 | $ (414) |
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) | $ 0.07 | $ (0.05) |
Diluted net earnings (loss) per share (in dollars per share) | $ 0.07 | $ (0.05) |
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) | 0 | 60,000 |
ASSET HELD FOR SALE (Details)
ASSET HELD FOR SALE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Asset Held For Sale [Abstract] | ||
Asset held for sale | $ 699 | $ 699 |
INVESTMENTS - INVESTMENT IN KUK
INVESTMENTS - INVESTMENT IN KUKIO RESORT LAND DEVELOPMENT PARTNERSHIP (Details) $ in Thousands | Nov. 27, 2013USD ($)partnership | Dec. 31, 2020USD ($)lot | Dec. 31, 2019USD ($) | Sep. 30, 2017a | Sep. 30, 2016 | Sep. 30, 2020USD ($) | Mar. 07, 2019 |
Investment Holdings [Line Items] | |||||||
Equity in income (loss) of affiliates | $ 1,054 | $ (43) | |||||
Investment in Kukio Resort Land Development Partnerships | 88 | $ 901 | |||||
Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of limited liability limited partnerships formed | partnership | 2 | ||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, made to date | 45,000 | ||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, partial payment preferred return | 459 | ||||||
Cumulative cash distributions from Kukio Resort land development Partnerships, preferred return | 656 | ||||||
Cash distribution from equity method investment | 1,712 | 0 | |||||
Equity in income (loss) of affiliates | 1,054 | $ (43) | |||||
Difference between carrying amount and underlying equity | 263 | ||||||
Basis difference adjustment | 20 | ||||||
Investment in Kukio Resort Land Development Partnerships | $ 88 | $ 901 | |||||
KD Kukio Resorts LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
KD Kaupulehu, LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
KD Maniniowali LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
Indirectly Acquired Interest | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Aggregate cost | $ 5,140 | ||||||
KD Acquisition, LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 19.60% | ||||||
KD Kona 2013 LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 75.00% | ||||||
KKM Makai LLLP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 34.45% | ||||||
KD Kaupulehu LLLP Increment I | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Number of residential lots remaining to be sold | lot | 15 | ||||||
KD Kaupulehu, LLLP | KD Acquisition II, LP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 55.00% | ||||||
Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||
Investment Holdings [Line Items] | |||||||
Number of lots developed | 2 | ||||||
Number of single family lots sold | 1 | 1 | |||||
Replay | KD Acquisition II, LP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 45.00% | ||||||
Barnwell Industries Inc | KD Acquisition II, LP | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Ownership interest acquired | 10.80% | ||||||
Non-controlling Interests | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Cash distribution from equity method investment | $ 155 | ||||||
Maximum | Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||
Investment Holdings [Line Items] | |||||||
Increment II lot size | a | 3 | ||||||
Minimum | Investment in land development partnerships | |||||||
Investment Holdings [Line Items] | |||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships, threshold | $ 45,000 | ||||||
Minimum | Kaupulehu Developments | KD Kaupulehu LLLP Increment II | |||||||
Investment Holdings [Line Items] | |||||||
Increment II lot size | a | 2 |
INVESTMENTS - SUMMARIZED FINANC
INVESTMENTS - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 4,387 | $ 4,850 |
Net earnings (loss) | 743 | (419) |
Investment in land development partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 8,120 | 1,766 |
Gross Profit | 3,998 | 796 |
Net earnings (loss) | $ 2,612 | $ (168) |
INVESTMENTS - SALE OF INTEREST
INVESTMENTS - SALE OF INTEREST IN LEASEHOLD LAND (Details) | 3 Months Ended | |
Dec. 31, 2020USD ($)lot | Mar. 07, 2019USD ($)day | |
KD Acquisition II, LP | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, percentage of distributions | 15.00% | |
Collaborative agreement, percentage of cumulative net profits, priority payment | 10.00% | |
Collaborative agreement, percentage of cumulative net profits, priority payment, maximum amount | $ 3,000,000 | |
KD Acquisition II, LP | KD Kaupulehu, LLLP | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Ownership interest acquired | 55.00% | |
KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | $ 224,500,000 | |
Number of single family lots sold | lot | 2 | |
Number of lots remaining to be sold | lot | 15 | |
Number of lots developed | lot | 80 | |
KD Kaupulehu LLLP Increment II Phase 2A | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Number of single family lots, rights to | 3 | |
KD Kaupulehu LLLP Increment II Phase 2A, lots completed subsequent to Phase 2A | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Number of single family lots, rights to | 4 | |
Collaborative agreement, commitment to construct improvements, term | day | 90 | |
KD Development, LLC | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, fees, percentage of cumulative net profits | 0.20% | |
Pool of Various Individuals | Investment in land development partnerships | ||
Investment Holdings [Line Items] | ||
Collaborative agreement, fees, percentage of cumulative net profits | 0.72% | |
Aggregate gross proceeds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Payments entitled to be received as percentage of gross proceeds from sale of single family lots | 10.00% | |
Aggregate gross proceeds in excess of $300,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Payments entitled to be received as percentage of gross proceeds from sale of single family lots | 14.00% | |
Minimum | Aggregate gross proceeds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | $ 100,000,000 | |
Minimum | Aggregate gross proceeds in excess of $300,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | 300,000,000 | |
Maximum | Aggregate gross proceeds greater than $100,000,000 up to $300,000,000 | KD Kaupulehu LLLP Increment I | Kaupulehu Developments | ||
Investment Holdings [Line Items] | ||
Aggregate gross proceeds from sale of increment I single family lots for calculating payments entitled to be received | $ 300,000,000 |
INVESTMENTS - SUMMARY OF REVENU
INVESTMENTS - SUMMARY OF REVENUES (Details) - Kaupulehu Developments - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | ||
Revenues - sale of interest in leasehold land | $ 485 | $ 0 |
Fees - included in general and administrative expenses | (59) | 0 |
Sale of interest in leasehold land, net of fees paid | $ 426 | $ 0 |
INVESTMENTS - INVESTMENT IN LEA
INVESTMENTS - INVESTMENT IN LEASEHOLD LAND INTEREST - LOT 4C (Details) | Dec. 31, 2020a |
Investment in leasehold land interest - Lot 4C | |
Investment Holdings [Line Items] | |
Area of land (in acres) | 1,000 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Oil and Natural Gas Properties [Line Items] | ||
Proceeds from sale of oil and natural gas assets | $ 0 | $ 594 |
Impairment of assets | 630 | 0 |
Oil and natural gas | ||
Oil and Natural Gas Properties [Line Items] | ||
Impairment of assets | $ 630 | 0 |
Barnwell Industries Inc | Progress | ||
Oil and Natural Gas Properties [Line Items] | ||
Proceeds from sale of oil and natural gas assets | $ 594 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other disclosures | ||
Net actuarial gains arising during the period | $ 0 | $ 880 |
Reduction in unrecognized benefit costs previously included in AOCL | (33) | (60) |
Curtailment gain, net of taxes of $0 | 0 | 1,699 |
Pension Plan | ||
Net periodic benefit cost: | ||
Service cost | 0 | 50 |
Interest cost | 65 | 83 |
Expected return on plan assets | (137) | (163) |
Amortization of prior service cost (credit) | 0 | 1 |
Amortization of net actuarial loss | 10 | 35 |
Curtailment cost (income) | 0 | 53 |
Net periodic benefit (income) cost | (62) | 59 |
Other disclosures | ||
Estimated future Pension Plan contributions | 0 | |
SERP | ||
Net periodic benefit cost: | ||
Service cost | 0 | 3 |
Interest cost | 13 | 18 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | 0 | (1) |
Amortization of net actuarial loss | 0 | 5 |
Curtailment cost (income) | 0 | (53) |
Net periodic benefit (income) cost | 13 | (28) |
Postretirement Medical | ||
Net periodic benefit cost: | ||
Service cost | 0 | 0 |
Interest cost | 18 | 20 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 |
Amortization of net actuarial loss | 23 | 20 |
Curtailment cost (income) | 0 | 0 |
Net periodic benefit (income) cost | $ 41 | 40 |
Pension Plan and SERP | ||
Other disclosures | ||
Net actuarial gains arising during the period | 880 | |
Reduction in unrecognized benefit costs previously included in AOCL | 1,699 | |
Curtailment gain, net of taxes of $0 | $ 1,699 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests | ||
United States | $ 1,422 | $ (147) |
Canada | (775) | (269) |
Total | 647 | (416) |
Components of the income tax provision (benefit) | ||
Current | 24 | 7 |
Deferred | 39 | (9) |
Total | $ 63 | $ (2) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | $ 4,387 | $ 4,843 |
Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,380 | 1,725 |
Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 375 | 322 |
Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 132 | 94 |
Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,942 | 2,646 |
Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 485 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 73 | 56 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 2,427 | 2,653 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,960 | 2,190 |
Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 2,445 | 2,197 |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,942 | 2,646 |
Oil and natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,887 | 2,141 |
Oil and natural gas | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,380 | 1,725 |
Oil and natural gas | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 375 | 322 |
Oil and natural gas | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 132 | 94 |
Oil and natural gas | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Oil and natural gas | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Oil and natural gas | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Oil and natural gas | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Oil and natural gas | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,887 | 2,141 |
Oil and natural gas | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,887 | 2,141 |
Oil and natural gas | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,942 | 2,646 |
Contract drilling | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,942 | 2,646 |
Contract drilling | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,942 | 2,646 |
Contract drilling | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Contract drilling | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 1,942 | 2,646 |
Land investment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 485 | 0 |
Land investment | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 485 | 0 |
Land investment | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 485 | 0 |
Land investment | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Land investment | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 485 | 0 |
Land investment | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 73 | 56 |
Other | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Drilling and pump | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Contingent residual payments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 0 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 73 | 56 |
Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 0 | 7 |
Other | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 73 | 49 |
Other | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | 73 | 56 |
Other | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue before interest income | $ 0 | $ 0 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - CONTRACT BALANCES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivables from contracts with customers | $ 1,625 | $ 1,772 |
Contract assets | 385 | 413 |
Contract liabilities | $ 751 | $ 1,097 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - NARRATIVE (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, current | $ 751 | $ 1,097 | |
Contract with customer, liability, revenue recognized | $ 573 | $ 1,480 | |
Percentage anticipated to be recognized in next 12 months | 7.00% | ||
Revenue, remaining performance obligation (backlog) | $ 2,615 | ||
Capitalized contract cost net, preconstruction | $ 147 | $ 145 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 5.00% | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 10.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||
Revenue before interest income | $ 4,387,000 | $ 4,843,000 |
Interest income | 0 | 7,000 |
Total revenues | 4,387,000 | 4,850,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 276,000 | 705,000 |
Asset Impairment Charges [Abstract] | ||
Impairment of assets | 630,000 | 0 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | 938,000 | 1,111,000 |
Equity in income (loss) of affiliates: | ||
Equity in income (loss) of affiliates | 1,054,000 | (43,000) |
General and administrative expenses | (1,185,000) | (1,496,000) |
Interest expense | (1,000) | 0 |
Interest income | 0 | 7,000 |
Earnings (loss) before income taxes | 806,000 | (421,000) |
Intersegment eliminations | ||
Revenues: | ||
Total revenues | 0 | |
Oil and natural gas | ||
Revenues: | ||
Revenue before interest income | 1,887,000 | 2,141,000 |
Total revenues | 1,887,000 | 2,141,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 195,000 | 606,000 |
Asset Impairment Charges [Abstract] | ||
Impairment of assets | 630,000 | 0 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | (373,000) | 322,000 |
Contract drilling | ||
Revenues: | ||
Revenue before interest income | 1,942,000 | 2,646,000 |
Total revenues | 1,942,000 | 2,646,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 76,000 | 85,000 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | 758,000 | 747,000 |
Land investment | ||
Revenues: | ||
Revenue before interest income | 485,000 | 0 |
Total revenues | 485,000 | 0 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | 485,000 | 0 |
Other | ||
Revenues: | ||
Revenue before interest income | 73,000 | 56,000 |
Total revenues | 73,000 | 63,000 |
Depletion, depreciation, and amortization: | ||
Depletion, depreciation, and amortization | 5,000 | 14,000 |
Operating profit (loss) (before general and administrative expenses): | ||
Operating profit (loss) (before general and administrative expenses): | $ 68,000 | $ 42,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Changes in foreign currency translation | |||
Beginning accumulated foreign currency translation | $ 545 | $ 691 | |
Change in cumulative translation adjustment before reclassifications | (234) | 5 | |
Income taxes | 0 | 0 | |
Net current period other comprehensive (loss) income | (234) | 5 | |
Ending accumulated foreign currency translation | 311 | 696 | |
Changes in retirement plans | |||
Beginning accumulated retirement plans benefit cost | (1,980) | (3,608) | |
Amortization of net actuarial loss and prior service cost | 33 | 60 | |
Net actuarial gains arising during the period | 0 | 2,579 | |
Income taxes | 0 | 0 | |
Net current period other comprehensive income | 33 | 2,639 | |
Ending accumulated retirement plans benefit cost | (1,947) | (969) | |
Accumulated other comprehensive loss, net of taxes | $ (1,636) | $ (273) | $ (1,435) |
DEBT (Details)
DEBT (Details) $ in Thousands, $ in Thousands | Apr. 28, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||||
Debt, long-term portion | $ 98 | $ 58 | |||
Paycheck Protection Program Loan | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 147 | ||||
Debt term | 2 years | ||||
Interest rate | 1.00% | ||||
Debt, current portion | 81 | ||||
Debt, long-term portion | 66 | ||||
Canada Emergency Business Account Loan | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 31 | $ 40 | |||
Debt term | 3 years | ||||
Interest rate | 5.00% | 5.00% | |||
Percentage of loan to be repaid for debt forgiveness | 75.00% | ||||
Percentage of debt forgiveness | 25.00% | ||||
Maximum amount of loan forgiveness | $ 10 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - Contract drilling - Unfavorable Regulatory Action $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)well | Mar. 31, 2020well | Sep. 30, 2019wellcustomer | Jul. 28, 2020USD ($) | |
Loss Contingencies | ||||
Number of wells not meeting specifications for plumbness | well | 1 | 2 | ||
Number of customers with wells not meeting specifications for plumbness | customer | 1 | |||
Warranty agreement, term | 5 years | |||
Triggering event, minimum pump failures attributable to lack of plumbness | 2 | |||
Number of wells not meeting permitted depth | well | 2 | |||
Estimate of possible loss | $ | $ 1,200 | |||
Loss contingency accrual | $ | $ 300 |
INFORMATION RELATING TO THE C_2
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - Oil and natural gas - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental disclosures of cash flow information: | ||
Increase (decrease) in capital expenditure accruals related to oil and natural gas exploration and development | $ (225) | $ 1,661 |
Increase (decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations | $ (176) | $ 323 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020USD ($)lot | Dec. 31, 2019USD ($) | |
Kaupulehu Developments | ||
Related party transactions | ||
Revenues - sale of interest in leasehold land | $ 485 | $ 0 |
Kaupulehu Developments | KD Kaupulehu, LLLP | Investment in land development partnerships | Increment I | ||
Related party transactions | ||
Revenues - sale of interest in leasehold land | $ 485 | |
Number of single family lots sold | lot | 2 | |
KD Acquisition, LLLP | Investment in land development partnerships | ||
Related party transactions | ||
Ownership interest acquired | 19.60% | |
KD Acquisition II, LP | Barnwell Industries Inc | Investment in land development partnerships | ||
Related party transactions | ||
Ownership interest acquired | 10.80% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 09, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of shares granted | 665,000 | |||
Subsequent Event | Share-based Payment Arrangement, Tranche One | ||||
Subsequent Event [Line Items] | ||||
Number of shares granted | 605,000 | |||
Shares exercise price | $ 3.33 | |||
Shares vesting period | 3 years | |||
Shares expiration period | 10 years | |||
Subsequent Event | Share-based Payment Arrangement, Tranche Two | ||||
Subsequent Event [Line Items] | ||||
Number of shares granted | 60,000 | |||
Shares exercise price | $ 3.66 | |||
Shares vesting period | 3 years | |||
Shares expiration period | 5 years | |||
Subsequent Event | Share-based Payment Arrangement, Employee | ||||
Subsequent Event [Line Items] | ||||
Number of shares granted | 355,000 | |||
Subsequent Event | Share-based Payment Arrangement, Independent Director | ||||
Subsequent Event [Line Items] | ||||
Number of shares granted | 310,000 | |||
Subsequent Event | MRMP Stockholders | ||||
Subsequent Event [Line Items] | ||||
Cooperation and support agreement reimbursement, maximum amount | $ 300 | |||
Investment in land development partnerships | ||||
Subsequent Event [Line Items] | ||||
Cash distribution from equity method investment | $ 1,712 | $ 0 | ||
Investment in land development partnerships | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash distribution from equity method investment | $ 199 |