Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2024 | Aug. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 500 | |
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, $0.50 par value | |
Trading Symbol | BRN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,028,090 | |
Entity Central Index Key | 0000010048 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 4,393 | $ 2,830 |
Accounts and other receivables, net of allowance for credit losses of: $344,000 at June 30, 2024; $284,000 at September 30, 2023 | 3,252 | 3,246 |
Assets held for sale | 69 | 0 |
Other current assets | 2,062 | 3,009 |
Total current assets | 9,776 | 9,085 |
Asset for retirement benefits | 4,738 | 4,471 |
Operating lease right-of-use assets | 59 | 54 |
Property and equipment: | ||
Proved oil and natural gas properties (full cost method) | 81,743 | 80,851 |
Drilling rigs and other property and equipment | 3,695 | 7,223 |
Total property and equipment | 85,438 | 88,074 |
Accumulated depletion, impairment, depreciation, and amortization | (68,613) | (66,263) |
Total property and equipment, net | 16,825 | 21,811 |
Total assets | 31,398 | 35,421 |
Current liabilities: | ||
Accounts payable | 1,343 | 881 |
Accrued capital expenditures | 462 | 1,099 |
Accrued compensation | 509 | 726 |
Accrued operating and other expenses | 1,681 | 1,747 |
Current portion of asset retirement obligation | 2,144 | 1,536 |
Other current liabilities | 345 | 609 |
Total current liabilities | 6,484 | 6,598 |
Operating lease liabilities | 15 | 47 |
Liability for retirement benefits | 1,733 | 1,664 |
Asset retirement obligation | 8,052 | 8,297 |
Deferred income tax liabilities | 105 | 58 |
Total liabilities | 16,389 | 16,664 |
Commitments and contingencies | ||
Equity: | ||
Common stock, par value $0.50 per share; authorized, 40,000,000 shares: 10,195,990 issued at June 30, 2024; 10,158,678 issued at September 30, 2023 | 5,098 | 5,079 |
Additional paid-in capital | 7,635 | 7,687 |
Retained earnings | 2,478 | 6,160 |
Accumulated other comprehensive income, net | 2,060 | 2,104 |
Treasury stock, at cost: 167,900 shares at June 30, 2024 and September 30, 2023 | (2,286) | (2,286) |
Total stockholders’ equity | 14,985 | 18,744 |
Non-controlling interests | 24 | 13 |
Total equity | 15,009 | 18,757 |
Total liabilities and equity | $ 31,398 | $ 35,421 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 344 | $ 284 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, authorized shares (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued shares (in shares) | 10,195,990 | 10,158,678 |
Treasury stock, shares (in shares) | 167,900 | 167,900 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Revenues | $ 5,527 | $ 5,675 | $ 17,456 | $ 18,425 |
Costs and expenses: | ||||
General and administrative | 1,432 | 1,328 | 4,217 | 5,627 |
Depletion, depreciation, and amortization | 1,322 | 1,257 | 4,225 | 2,858 |
Impairment of assets | 599 | 0 | 2,276 | 0 |
Foreign currency loss (gain) | 61 | (121) | 63 | (201) |
Interest expense | 0 | 1 | 2 | 1 |
Gain on sale of assets | 0 | 0 | 0 | (551) |
Total costs and expenses | 6,740 | 6,553 | 21,786 | 19,791 |
Loss before equity in income of affiliates and income taxes | (1,213) | (878) | (4,330) | (1,366) |
Equity in income of affiliates | 0 | 0 | 1,071 | 538 |
Loss before income taxes | (1,213) | (878) | (3,259) | (828) |
Income tax provision (benefit) | 21 | (163) | 187 | (87) |
Net loss | (1,234) | (715) | (3,446) | (741) |
Less: Net earnings attributable to non-controlling interests | 12 | 2 | 236 | 124 |
Net loss attributable to Barnwell Industries, Inc. | $ (1,246) | $ (717) | $ (3,682) | $ (865) |
Basic net loss per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share) | $ (0.12) | $ (0.07) | $ (0.37) | $ (0.09) |
Diluted net loss per common share attributable to Barnwell Industries, Inc. stockholders (in dollars per share) | $ (0.12) | $ (0.07) | $ (0.37) | $ (0.09) |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 10,028,090 | 9,975,044 | 10,014,609 | 9,962,806 |
Diluted (in shares) | 10,028,090 | 9,975,044 | 10,014,609 | 9,962,806 |
Oil and natural gas | ||||
Revenues: | ||||
Revenues | $ 4,452 | $ 4,503 | $ 13,726 | $ 13,415 |
Costs and expenses: | ||||
Costs and expenses | 2,234 | 3,006 | 7,355 | 7,717 |
Depletion, depreciation, and amortization | 1,293 | 1,210 | 4,093 | 2,724 |
Impairment of assets | 599 | 0 | 2,276 | 0 |
Contract drilling | ||||
Revenues: | ||||
Revenues | 1,021 | 1,134 | 3,084 | 4,583 |
Costs and expenses: | ||||
Costs and expenses | 1,092 | 1,082 | 3,648 | 4,340 |
Depletion, depreciation, and amortization | 28 | 47 | 130 | 133 |
Sale of interest in leasehold land | ||||
Revenues: | ||||
Revenues | 0 | 0 | 500 | 265 |
Gas processing and other | ||||
Revenues: | ||||
Revenues | 54 | 38 | 146 | 162 |
Costs and expenses: | ||||
Depletion, depreciation, and amortization | $ 1 | $ 0 | $ 2 | $ 1 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,234) | $ (715) | $ (3,446) | $ (741) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments, net of taxes of $0 | 12 | 15 | 20 | 17 |
Retirement plans: | ||||
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (21) | (20) | (64) | (60) |
Total other comprehensive loss | (9) | (5) | (44) | (43) |
Total comprehensive loss | (1,243) | (720) | (3,490) | (784) |
Less: Comprehensive income attributable to non-controlling interests | (12) | (2) | (236) | (124) |
Comprehensive loss attributable to Barnwell Industries, Inc. | $ (1,255) | $ (722) | $ (3,726) | $ (908) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of accumulated other comprehensive gain into net periodic benefit cost, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Non-controlling Interests |
Balance, beginning of period (in shares) at Sep. 30, 2022 | 9,956,687 | ||||||
Balance, beginning of period at Sep. 30, 2022 | $ 19,161 | $ 5,062 | $ 7,351 | $ 7,720 | $ 1,294 | $ (2,286) | $ 20 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) earnings | (741) | (865) | 124 | ||||
Foreign currency translation adjustments, net of taxes of $0 | 17 | 17 | |||||
Distributions to non-controlling interests | (128) | (128) | |||||
Share-based compensation | 178 | 178 | |||||
Dividends declared, cash paid per share | (449) | (449) | |||||
Issuance of common stock for services (in shares) | 34,091 | ||||||
Issuance of common stock for services | 90 | $ 17 | 73 | ||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (60) | (60) | |||||
Balance, end of period (in shares) at Jun. 30, 2023 | 9,990,778 | ||||||
Balance, end of period at Jun. 30, 2023 | 18,068 | $ 5,079 | 7,602 | 6,406 | 1,251 | (2,286) | 16 |
Balance, beginning of period (in shares) at Mar. 31, 2023 | 9,956,687 | ||||||
Balance, beginning of period at Mar. 31, 2023 | 18,864 | $ 5,062 | 7,541 | 7,273 | 1,256 | (2,286) | 18 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) earnings | (715) | (717) | 2 | ||||
Foreign currency translation adjustments, net of taxes of $0 | 15 | 15 | |||||
Distributions to non-controlling interests | (4) | (4) | |||||
Share-based compensation | (12) | (12) | |||||
Dividends declared, cash paid per share | (150) | (150) | |||||
Issuance of common stock for services (in shares) | 34,091 | ||||||
Issuance of common stock for services | 90 | $ 17 | 73 | ||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (20) | (20) | |||||
Balance, end of period (in shares) at Jun. 30, 2023 | 9,990,778 | ||||||
Balance, end of period at Jun. 30, 2023 | 18,068 | $ 5,079 | 7,602 | 6,406 | 1,251 | (2,286) | 16 |
Balance, beginning of period (in shares) at Sep. 30, 2023 | 9,990,778 | ||||||
Balance, beginning of period at Sep. 30, 2023 | 18,757 | $ 5,079 | 7,687 | 6,160 | 2,104 | (2,286) | 13 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) earnings | (3,446) | (3,682) | 236 | ||||
Foreign currency translation adjustments, net of taxes of $0 | 20 | 20 | |||||
Distributions to non-controlling interests | (226) | (226) | |||||
Acquisition of non-controlling interest | (185) | (186) | 1 | ||||
Share-based compensation | 153 | 153 | |||||
Issuance of common stock for restricted stock units vested (in shares) | 37,312 | ||||||
Issuance of common stock for restricted stock units vested | 0 | $ 19 | (19) | ||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (64) | (64) | |||||
Balance, end of period (in shares) at Jun. 30, 2024 | 10,028,090 | ||||||
Balance, end of period at Jun. 30, 2024 | 15,009 | $ 5,098 | 7,635 | 2,478 | 2,060 | (2,286) | 24 |
Balance, beginning of period (in shares) at Mar. 31, 2024 | 10,028,090 | ||||||
Balance, beginning of period at Mar. 31, 2024 | 16,398 | $ 5,098 | 7,779 | 3,724 | 2,069 | (2,286) | 14 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) earnings | (1,234) | (1,246) | 12 | ||||
Foreign currency translation adjustments, net of taxes of $0 | 12 | 12 | |||||
Distributions to non-controlling interests | (3) | (3) | |||||
Acquisition of non-controlling interest | (185) | (186) | 1 | ||||
Share-based compensation | 42 | 42 | |||||
Retirement plans: | |||||||
Amortization of accumulated other comprehensive gain into net periodic benefit cost, net of taxes of $0 | (21) | (21) | |||||
Balance, end of period (in shares) at Jun. 30, 2024 | 10,028,090 | ||||||
Balance, end of period at Jun. 30, 2024 | $ 15,009 | $ 5,098 | $ 7,635 | $ 2,478 | $ 2,060 | $ (2,286) | $ 24 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 | ||
Dividends declared, cash paid per share (in dollars per share) | $ 0.015 | $ 0.015 | $ 0.015 | $ 0 | $ 0.045 | |
Amortization of accumulated other comprehensive gain into net periodic benefit cost, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||||
Net loss | $ (1,234) | $ (715) | $ (3,446) | $ (741) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Equity in income of affiliates | 0 | 0 | (1,071) | (538) |
Depletion, depreciation, and amortization | 1,322 | 1,257 | 4,225 | 2,858 |
Impairment of assets | 599 | 0 | 2,276 | 0 |
Gain on sale of assets | 0 | 0 | 0 | (551) |
Sale of interest in leasehold land, net of fees paid | (439) | (233) | ||
Distributions of income from equity investees | 1,071 | 319 | ||
Retirement benefits income | (259) | (189) | ||
Non-cash rent income | (20) | (19) | ||
Accretion of asset retirement obligation | 667 | 596 | ||
Deferred income tax expense (benefit) | (4) | (42) | 47 | (99) |
Asset retirement obligation payments | (556) | (896) | ||
Share-based compensation expense | 153 | 178 | ||
Common stock issued for services | 0 | 90 | ||
Retirement plan contributions and payments | (3) | (2) | ||
Credit loss expense | 53 | 18 | ||
Foreign currency loss (gain) | 61 | (121) | 63 | (201) |
Increase (decrease) from changes in current assets and liabilities | 777 | (433) | ||
Net cash provided by operating activities | 3,538 | 157 | ||
Cash flows from investing activities: | ||||
Acquisition of non-controlling interest | (185) | 0 | ||
Distribution from equity investees in excess of earnings | 0 | 219 | ||
Proceeds from sale of interest in leasehold land, net of fees paid | 439 | 233 | ||
Proceeds from the sale of oil and natural gas assets | 451 | 0 | ||
Capital expenditures - oil and natural gas | (2,434) | (10,022) | ||
Capital expenditures - all other | (2) | (305) | ||
Net cash used in investing activities | (1,731) | (9,875) | ||
Cash flows from financing activities: | ||||
Distributions to non-controlling interests | (226) | (128) | ||
Payment of dividends | 0 | (449) | ||
Net cash used in financing activities | (226) | (577) | ||
Effect of exchange rate changes on cash and cash equivalents | (18) | 63 | ||
Net increase (decrease) in cash and cash equivalents | 1,563 | (10,232) | ||
Cash and cash equivalents at beginning of period | 2,830 | 12,804 | ||
Cash and cash equivalents at end of period | $ 4,393 | $ 2,572 | $ 4,393 | $ 2,572 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2024 | |
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, 2023 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1 (our “2023 Annual Report”). The Condensed Consolidated Balance Sheet as of September 30, 2023 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at June 30, 2024, results of operations, comprehensive loss, and equity for the three and nine months ended June 30, 2024 and 2023, and cash flows for the nine months ended June 30, 2024 and 2023, have been made. The results of operations for the period ended June 30, 2024 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, 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 Other than as set forth below, there have been no changes to Barnwell's significant accounting policies as described in the Notes to Consolidated Financial Statements included in Item 8 of the Company's 2023 Annual Report. Accounts and Other Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is Barnwell’s best estimate of the amount of current expected credit losses in Barnwell’s existing accounts receivable and is based on the aging of the receivable balances, analysis of historical credit loss rates, and current and future economic conditions affecting collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Barnwell does not have any off-balance sheet credit exposure related to its customers. Derivative Instruments Barnwell may utilize physical forward commodity contracts to mitigate market price risk on its oil and natural gas output when deemed appropriate. Purchase and sale contracts with a fixed price determined at inception are recorded on the consolidated balance sheet as derivative financial instruments if such contracts are readily convertible to cash - unless the contracts are eligible for and elected as the normal purchases and normal sales exception (“NPNS”); in which case, the contracts are recorded on an accrual basis and the Company recognizes the amounts relating to such transactions during the period when the commodities are physically delivered. The Company generally applies the NPNS exception to eligible oil and natural gas contracts to purchase or sell quantities it expects to use or sell in the normal course of business. The Company has not traded in any derivative contracts other than where the NPNS exception is applied, and it does not apply hedge accounting. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss model with an expected loss model referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. The FASB has subsequently issued other related ASUs which amend ASU 2016-13 to provide clarification and additional guidance. The Company adopted the provisions of this ASU effective October 1, 2023. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements. |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
LOSS PER COMMON SHARE | LOSS PER COMMON SHARE Basic loss per share is computed using the weighted-average number of common shares outstanding for the period. Diluted 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 and nonvested restricted stock units. Potentially dilutive shares are excluded from the computation of diluted loss per share if their effect is anti-dilutive. Options to purchase 465,000 shares of common stock and 106,006 restricted stock units were excluded from the computation of diluted shares for the three months ended June 30, 2024, as their inclusion would have been anti-dilutive. Options to purchase 493,022 shares of common stock and 37,312 restricted stock units were excluded from the computation of diluted shares for the three months ended June 30, 2023, as their inclusion would have been anti-dilutive. Options to purchase 465,000 shares of common stock and 86,190 restricted stock units were excluded from the computation of diluted shares for the nine months ended June 30, 2024, as their inclusion would have been anti-dilutive. Options to purchase 574,341 shares of common stock and 12,301 restricted stock units were excluded from the computation of diluted shares for the nine months ended June 30, 2023, as their inclusion would have been anti-dilutive. Reconciliations between net loss attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net loss per share computations are detailed in the following tables: Three months ended June 30, 2024 Net Loss Shares Per-Share Basic $ (1,246,000) 10,028,090 $ (0.12) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (1,246,000) 10,028,090 $ (0.12) Nine months ended June 30, 2024 Net Loss Shares Per-Share Basic $ (3,682,000) 10,014,609 $ (0.37) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (3,682,000) 10,014,609 $ (0.37) Three months ended June 30, 2023 Net Loss Shares Per-Share Basic $ (717,000) 9,975,044 $ (0.07) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (717,000) 9,975,044 $ (0.07) Nine months ended June 30, 2023 Net Loss Shares Per-Share Basic $ (865,000) 9,962,806 $ (0.09) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (865,000) 9,962,806 $ (0.09) |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Jun. 30, 2024 | |
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. 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. The partnerships derive income from the sale of residential parcels in Increment I, which is now completely sold, as well as from commissions on real estate sales by the real estate sales office and revenues resulting from the sale of private club memberships. In the quarter ended March 31, 2024, the last two remaining single-family lots of the 80 lots developed within Increment I were sold. Increment II is not yet under development, and there is no assurance that development of such acreage will occur. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report. Barnwell has the right to receive distributions from the Kukio Resort Land Development Partnerships via its non-controlling interest in KD Kona and KKM, based on its respective partnership sharing ratios of 75% and 34.45%, respectively. No cash distributions were received during the three months ended June 30, 2024 and 2023. During the nine months ended June 30, 2024, Barnwell received cash distributions of $1,071,000 (resulting in a net amount of $953,000, after distributing $118,000 to non-controlling interests) from the Kukio Resort Land Development Partnerships. During the nine months ended June 30, 2023, Barnwell received cash distributions of $538,000 from the Kukio Resort Land Development Partnerships resulting in a net amount of $478,000 after distributing $60,000 to non-controlling interests. Equity in income of affiliates was nil and $1,071,000 for the three and nine months ended June 30, 2024, respectively, as compared to equity in income of affiliates of nil and $538,000 for the three and nine months ended June 30, 2023, respectively. Summarized financial information for the Kukio Resort Land Development Partnerships is as follows: Three months ended June 30, 2024 2023 Revenue $ 518,000 $ 2,703,000 Gross profit $ 129,000 $ 1,694,000 Net (loss) earnings $ (338,000) $ 951,000 Nine months ended June 30, 2024 2023 Revenue $ 12,557,000 $ 7,699,000 Gross profit $ 8,275,000 $ 4,854,000 Net earnings $ 6,674,000 $ 2,176,000 In the quarter ended June 30, 2021, the Company received cumulative distributions from the Kukio Resort Land Development Partnerships in excess of our investment balance and in accordance with applicable accounting guidance, the Company suspended its equity method earnings recognition and the Kukio Resort Land Development Partnerships investment balance was reduced to zero with the distributions received in excess of our investment balance recorded as equity in income of affiliates because the distributions are not refundable by agreement or by law and the Company is not liable for the obligations of or otherwise committed to provide financial support to the Kukio Resort Land Development Partnerships. The Company will record future equity method earnings only after our share of the Kukio Resort Land Development Partnerships’ cumulative earnings in excess of distributions during the suspended period exceeds our share of the Kukio Resort Land Development Partnerships’ income recognized for the excess distributions, and during this suspended period any distributions received will be recorded as equity in income of affiliates. Accordingly, the amount of equity in income of affiliates recognized in the nine months ended June 30, 2024 was equivalent to the $1,071,000 of distributions received in that period. Cumulative distributions received from the Kukio Resort Land Development Partnerships in excess of our investment balance was $300,000 at June 30, 2024 and $708,000 at September 30, 2023. Sale of Interest in Leasehold Land Kaupulehu Developments holds rights to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within Increment I, which is now fully sold, and within Increment II, which is not yet developed (see Note 16). With respect to Increment I, Kaupulehu Developments was entitled to receive payments from KD I based on 10% of the gross receipts from KD I’s sales of single-family residential lots in Increment I. In the quarter ended March 31, 2024, the last two remaining single-family lots of the 80 lots developed within Increment I were sold. The following table summarizes the Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended Nine months ended 2024 2023 2024 2023 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ — $ — $ 500,000 $ 265,000 Fees - included in general and administrative expenses — — (61,000) (32,000) Sale of interest in leasehold land, net of fees paid $ — $ — $ 439,000 $ 233,000 There is no assurance with regards to the amounts of future payments from Increment II to be received or that the remaining acreage within Increment II will be developed. No definitive development plans have been made by KD II, the developer of Increment II, as of the date of this report. Investment in Leasehold Land Interest - Lot 4C |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITY | 9 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITY | CONSOLIDATED VARIABLE INTEREST ENTITY In February 2021, Barnwell Industries, Inc. established a wholly-owned subsidiary named BOK Drilling, LLC (“BOK”) for the purpose of indirectly investing in oil and natural gas exploration and development in Oklahoma. BOK and Gros Ventre Partners, LLC (“Gros Ventre”) entered into the Limited Liability Agreement (the “Teton Operating Agreement”) of Teton Barnwell Fund I, LLC (“Teton Barnwell”), an entity formed for the purpose of directly entering into such oil and natural gas investments. Under the terms of the Teton Operating Agreement, the profits of Teton Barnwell were split between BOK and Gros Ventre at 98% and 2%, respectively, and as the manager of Teton Barnwell, Gros Ventre was paid an annual asset management fee equal to 1% of the cumulative capital contributions made to Teton Barnwell as compensation for its management services. BOK was responsible for 100% of the capital contributions made to Teton Barnwell. Teton Barnwell was a variable interest entity for which the Company was deemed the primary beneficiary and thus, was consolidated by the Company. In the quarter ended June 30, 2024, BOK acquired Gros Ventre’s 2% non-controlling interest in Teton Barnwell for $185,000 and following the acquisition, BOK now owns 100% interest in Teton Barnwell. As such, although Teton Barnwell is no longer a variable interest entity as of the acquisition date, it will continue to be consolidated by the Company. This transaction was accounted for as an equity transaction with no gain or loss recognized and the difference between the carrying amount of Gros Ventre’s non-controlling interest and the consideration given for the acquisition of the additional equity interest was recorded as a reduction in additional paid-in capital in the accompanying Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Equity. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 9 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment Assets Held-for-Sale Disclosure [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE Contract Drilling Segment Property and Equipment In the quarter ended March 31, 2024, the Company commenced the marketing of a portion of the contract drilling segment's property and equipment, the majority of which was already fully depreciated. There was no impairment related to the classification change from held and used to held for sale as the fair value, less estimated selling costs, of the disposal group exceeded its carrying value. The property and equipment deemed necessary to complete the contract drilling segment's contracts in backlog continue to be classified as held and used as of June 30, 2024. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 9 Months Ended |
Jun. 30, 2024 | |
Oil and Natural Gas Properties [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | OIL AND NATURAL GAS PROPERTIES Oil and Natural Gas Property Dispositions In the quarter ended June 30, 2024, Barnwell entered into and completed a purchase and sale agreement with an independent third party and sold its interests in certain natural gas and oil properties located in the Kaybob area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $448,000 in order to, among other things, reflect an economic effective date of May 1, 2024. The final determination of the customary adjustments to the purchase price has not yet been made, however, it is not expected to result in a material adjustment. Investments and Acquisitions In December 2022, Barnwell Texas, LLC (“Barnwell Texas”), a wholly-owned subsidiary of the Company, entered into a purchase and sale agreement with an independent third party whereby Barnwell Texas acquired a 22.3% non-operated working interest in oil and natural gas leasehold acreage in the Permian Basin in Texas for cash consideration of $806,000. Additionally, in connection with the purchase of such leasehold interests, Barnwell Texas acquired a 15.4% non-operated working interest in two oil wells in the Wolfcamp Formation in Loving and Ward Counties, Texas and paid $4,293,000 for its share of the costs to drill, complete, and equip the wells in the nine months ended June 30, 2023. 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. During the three months ended June 30, 2024, the Company incurred a non-cash ceiling test impairment of $599,000, which included impairments for our U.S. and Canadian oil and natural gas properties of $112,000 and $487,000, respectively. The impairment to our U.S. oil and natural gas properties was due to a decline in the historical 12-month rolling average first-day-of-the-month prices, primarily attributed to decreases in natural gas prices for our Texas property which is sold at the Waha hub. The impairment to our Canadian oil and natural gas properties was primarily due to capital expenditures for which there is insufficient operating history to assign a determinable increase in future cash flows from reserves at period-end. There was no ceiling test impairment during the three months ended June 30, 2023. During the nine months ended June 30, 2024, the Company incurred a non-cash ceiling test impairment of $2,276,000, which included impairments for our U.S. and Canadian oil and natural gas properties of $112,000 and $2,164,000, respectively. The impairment to our Canadian oil and natural gas properties during the nine months ended June 30, 2024 was primarily due to a decline in the historical 12-month rolling average first-day-of-the-month prices and due to capital expenditures for which there is insufficient operating history to assign a determinable increase in future cash flows from reserves at period-end. There was no ceiling test impairment during the nine months ended June 30, 2023. Changes in the 12-month 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 market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties. If oil and natural gas prices decline sufficiently from the 12-month historical rolling average first-day-of-the-month prices used in the ceiling test at June 30, 2024, it is more likely than not that the Company will 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 | 9 Months Ended |
Jun. 30, 2024 | |
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 and a noncontributory Supplemental Executive Retirement Plan (“SERP”), which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan. Effective December 31, 2019, the accrual of benefits for all participants in the Pension Plan and SERP was frozen and the plans were closed to new participants from that point forward. The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans: Pension Plan SERP Three months ended June 30, 2024 2023 2024 2023 Interest cost $ 103,000 $ 102,000 $ 24,000 $ 22,000 Expected return on plan assets (192,000) (167,000) — — Amortization of net actuarial gain — — (21,000) (20,000) Net periodic benefit (income) cost $ (89,000) $ (65,000) $ 3,000 $ 2,000 Pension Plan SERP Nine months ended June 30, 2024 2023 2024 2023 Interest cost $ 308,000 $ 305,000 $ 72,000 $ 66,000 Expected return on plan assets (575,000) (500,000) — — Amortization of net actuarial gain — — (64,000) (60,000) Net periodic benefit (income) cost $ (267,000) $ (195,000) $ 8,000 $ 6,000 The net periodic benefit (income) 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 2024. The SERP plan is unfunded and Barnwell funds benefits when payments are made. Expected payments under the SERP for fiscal 2024 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows: Three months ended Nine months ended 2024 2023 2024 2023 United States $ (894,000) $ (477,000) $ (1,045,000) $ (1,734,000) Canada (331,000) (403,000) (2,450,000) 782,000 $ (1,225,000) $ (880,000) $ (3,495,000) $ (952,000) The components of the income tax provision (benefit) are as follows: Three months ended Nine months ended 2024 2023 2024 2023 Current $ 25,000 $ (121,000) $ 140,000 $ 12,000 Deferred (4,000) (42,000) 47,000 (99,000) $ 21,000 $ (163,000) $ 187,000 $ (87,000) 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. The Company operates two subsidiaries in Canada, one of which is a U.S. corporation operating as a branch in Canada that is treated as a non-resident for Canadian tax purposes and thus has operating results that cannot be offset against or combined with the other Canadian subsidiary that files as a resident for Canadian tax purposes. 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. Income from our investment in the Oklahoma oil venture is 100% allocable to Oklahoma. As such, Barnwell receives no benefit from consolidated or unitary losses and, therefore, is subject to Oklahoma state taxes. Our operations in Texas are subject to a franchise tax assessed by the state of Texas, however no significant amounts have been incurred to date. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables provide information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three and nine months ended June 30, 2024 and 2023. Three months ended June 30, 2024 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,597,000 $ — $ — $ — $ 3,597,000 Natural gas 378,000 — — — 378,000 Natural gas liquids 477,000 — — — 477,000 Drilling and pump — 1,021,000 — — 1,021,000 Other — — — 33,000 33,000 Total revenues before interest income $ 4,452,000 $ 1,021,000 $ — $ 33,000 $ 5,506,000 Geographical regions: United States $ 534,000 $ 1,021,000 $ — $ 1,000 $ 1,556,000 Canada 3,918,000 — — 32,000 3,950,000 Total revenues before interest income $ 4,452,000 $ 1,021,000 $ — $ 33,000 $ 5,506,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,452,000 $ — $ — $ 33,000 $ 4,485,000 Services transferred over time — 1,021,000 — — 1,021,000 Total revenues before interest income $ 4,452,000 $ 1,021,000 $ — $ 33,000 $ 5,506,000 Three months ended June 30, 2023 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,423,000 $ — $ — $ — $ 3,423,000 Natural gas 622,000 — — — 622,000 Natural gas liquids 458,000 — — — 458,000 Drilling and pump — 1,134,000 — — 1,134,000 Other — — — 13,000 13,000 Total revenues before interest income $ 4,503,000 $ 1,134,000 $ — $ 13,000 $ 5,650,000 Geographical regions: United States $ 869,000 $ 1,134,000 $ — $ 1,000 $ 2,004,000 Canada 3,634,000 — — 12,000 3,646,000 Total revenues before interest income $ 4,503,000 $ 1,134,000 $ — $ 13,000 $ 5,650,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,503,000 $ — $ — $ 13,000 $ 4,516,000 Services transferred over time — 1,134,000 — — 1,134,000 Total revenues before interest income $ 4,503,000 $ 1,134,000 $ — $ 13,000 $ 5,650,000 Nine months ended June 30, 2024 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 10,474,000 $ — $ — $ — $ 10,474,000 Natural gas 1,768,000 — — — 1,768,000 Natural gas liquids 1,484,000 — — — 1,484,000 Drilling and pump — 3,084,000 — — 3,084,000 Contingent residual payments — — 500,000 — 500,000 Other — — — 92,000 92,000 Total revenues before interest income $ 13,726,000 $ 3,084,000 $ 500,000 $ 92,000 $ 17,402,000 Geographical regions: United States $ 1,962,000 $ 3,084,000 $ 500,000 $ 27,000 $ 5,573,000 Canada 11,764,000 — — 65,000 11,829,000 Total revenues before interest income $ 13,726,000 $ 3,084,000 $ 500,000 $ 92,000 $ 17,402,000 Timing of revenue recognition: Goods transferred at a point in time $ 13,726,000 $ — $ 500,000 $ 92,000 $ 14,318,000 Services transferred over time — 3,084,000 — — 3,084,000 Total revenues before interest income $ 13,726,000 $ 3,084,000 $ 500,000 $ 92,000 $ 17,402,000 Nine months ended June 30, 2023 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 9,696,000 $ — $ — $ — $ 9,696,000 Natural gas 2,540,000 — — — 2,540,000 Natural gas liquids 1,179,000 — — — 1,179,000 Drilling and pump — 4,583,000 — — 4,583,000 Contingent residual payments — — 265,000 — 265,000 Other — — — 85,000 85,000 Total revenues before interest income $ 13,415,000 $ 4,583,000 $ 265,000 $ 85,000 $ 18,348,000 Geographical regions: United States $ 1,695,000 $ 4,583,000 $ 265,000 $ 9,000 $ 6,552,000 Canada 11,720,000 — — 76,000 11,796,000 Total revenues before interest income $ 13,415,000 $ 4,583,000 $ 265,000 $ 85,000 $ 18,348,000 Timing of revenue recognition: Goods transferred at a point in time $ 13,415,000 $ — $ 265,000 $ 85,000 $ 13,765,000 Services transferred over time — 4,583,000 — — 4,583,000 Total revenues before interest income $ 13,415,000 $ 4,583,000 $ 265,000 $ 85,000 $ 18,348,000 Contract Balances The following table provides information about accounts receivables, contract assets and contract liabilities from contracts with customers: June 30, 2024 September 30, 2023 September 30, 2022 Accounts receivables from contracts with customers $ 2,940,000 $ 2,931,000 $ 4,038,000 Contract assets 559,000 958,000 580,000 Contract liabilities 18,000 377,000 1,087,000 Accounts receivables from contracts with customers are included in "Accounts and other receivables, net of allowance for credit losses," in the accompanying Condensed Consolidated Balance Sheets and contract assets, which includes costs and estimated earnings in excess of billings and retainage, are included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. 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 June 30, 2024 and September 30, 2023, the Company had $18,000 and $377,000, respectively, included in “Other current liabilities” in the accompanying Condensed Consolidated Balance Sheets for those performance obligations expected to be completed in the next twelve months. During the nine months ended June 30, 2024 and 2023, the amount of revenue recognized that was previously included in contract liabilities as of the beginning of the respective period was $377,000 and $1,012,000, 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 June 30, 2024, the remaining performance obligation for contract drilling jobs with original expected durations greater than one year was not material. 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 June 30, 2024 and September 30, 2023, the Company had $240,000 and $504,000, respectively, in unamortized preconstruction costs related to contracts that were not completed. During the three months ended June 30, 2024 and 2023, the amortization of preconstruction costs related to contracts were not material. During the nine months ended June 30, 2024 and 2023, the amortization of preconstruction costs related to contracts was $240,000 and $248,000, respectively. These amounts have been included in “Contract drilling operating” costs and expenses 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 and nine months ended June 30, 2024 and 2023. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil and natural gas in Canada and the U.S. (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 Nine months ended 2024 2023 2024 2023 Revenues: Oil and natural gas $ 4,452,000 $ 4,503,000 $ 13,726,000 $ 13,415,000 Contract drilling 1,021,000 1,134,000 3,084,000 4,583,000 Land investment — — 500,000 265,000 Other 33,000 13,000 92,000 85,000 Total before interest income 5,506,000 5,650,000 17,402,000 18,348,000 Interest income 21,000 25,000 54,000 77,000 Total revenues $ 5,527,000 $ 5,675,000 $ 17,456,000 $ 18,425,000 Depletion, depreciation, and amortization: Oil and natural gas $ 1,293,000 $ 1,210,000 $ 4,093,000 $ 2,724,000 Contract drilling 28,000 47,000 130,000 133,000 Other 1,000 — 2,000 1,000 Total depletion, depreciation, and amortization $ 1,322,000 $ 1,257,000 $ 4,225,000 $ 2,858,000 Impairment: Oil and natural gas $ 599,000 $ — $ 2,276,000 $ — Total impairment $ 599,000 $ — $ 2,276,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 326,000 $ 287,000 $ 2,000 $ 2,974,000 Contract drilling (99,000) 5,000 (694,000) 110,000 Land investment — — 500,000 265,000 Other 32,000 13,000 90,000 84,000 Gain on sale of assets — — — 551,000 Total operating profit (loss) 259,000 305,000 (102,000) 3,984,000 Equity in income of affiliates: Land investment — — 1,071,000 538,000 General and administrative expenses (1,432,000) (1,328,000) (4,217,000) (5,627,000) Foreign currency (loss) gain (61,000) 121,000 (63,000) 201,000 Interest expense — (1,000) (2,000) (1,000) Interest income 21,000 25,000 54,000 77,000 Loss before income taxes $ (1,213,000) $ (878,000) $ (3,259,000) $ (828,000) |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in each component of accumulated other comprehensive income were as follows: Three months ended Nine months ended 2024 2023 2024 2023 Foreign currency translation: Beginning accumulated foreign currency translation $ 228,000 $ 224,000 $ 220,000 $ 222,000 Change in cumulative translation adjustment before reclassifications 12,000 15,000 20,000 17,000 Income taxes — — — — Net current period other comprehensive income 12,000 15,000 20,000 17,000 Ending accumulated foreign currency translation 240,000 239,000 240,000 239,000 Retirement plans: Beginning accumulated retirement plans benefit income 1,841,000 1,032,000 1,884,000 1,072,000 Amortization of net actuarial gain (21,000) (20,000) (64,000) (60,000) Income taxes — — — — Net current period other comprehensive loss (21,000) (20,000) (64,000) (60,000) Ending accumulated retirement plans benefit income 1,820,000 1,012,000 1,820,000 1,012,000 Accumulated other comprehensive income, net of taxes $ 2,060,000 $ 1,251,000 $ 2,060,000 $ 1,251,000 The amortization of net actuarial gain 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 | 9 Months Ended |
Jun. 30, 2024 | |
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 assumptions used in the calculation of estimated discounted cash flows were primarily Level 3 assumptions; assumptions 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 reserve engineers based on historical information regarding costs incurred to abandon and restore similar well sites, information regarding current market conditions and costs, and knowledge of subject well sites and properties. Asset retirement obligation fair value measurements in the current period were Level 3 fair value measurements. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Restricted Stock Units On November 2, 2023, the Board of Directors of the Company granted a total of 76,336 restricted stock units to the independent directors of the Board as partial payment of director fees for their service as members of the Board. The restricted stock units vest ratably over a three-year period, subject to the director’s continued service through the applicable vesting dates; provided that, any unvested restricted stock would vest upon a director’s death, disability, a change in control of the Company resulting in the director not continuing as a director or the director not being renominated for election even though he was willing to stand for re-election. On May 16, 2024, the Board of Directors of the Company granted 60,000 restricted stock units to the Company’s President and Chief Executive Officer. The restricted stock units vest ratably over a three-year period, subject to the employee’s continued service through the applicable vesting dates. The following table summarizes Barnwell’s restricted stock unit activity from October 1, 2023 through June 30, 2024: Restricted Stock Units Shares Weighted-Average Nonvested at October 1, 2023 — $ — Granted 136,336 2.62 Vested — — Forfeited — — Nonvested at June 30, 2024 136,336 $ 2.62 Compensation cost for restricted stock unit awards is measured at fair value and is recognized as an expense over the requisite service period. During the three and nine months ended June 30, 2024, the Company recognized share-based compensation expense related to restricted stock units of $42,000 and $103,000, respectively. During the three and nine months ended June 30, 2023, the Company recognized share-based compensation expense related to restricted stock units of $49,000. As of June 30, 2024, the total remaining unrecognized compensation cost related to nonvested restricted stock units was $255,000, which is expected to be recognized over the weighted-average remaining requisite service period of 1.8 years. Stock Options In the quarter ended June 30, 2023, 100,000 shares of vested stock options expired and 50,000 shares of outstanding stock options were forfeited prior to the option’s vesting date. The Company's policy is to recognize forfeitures as they occur. Thus, when an award is forfeited prior to the vesting date, the Company will recognize an adjustment for the previously recognized expense in the period of the forfeiture. Accordingly, as a result of the forfeited stock options, the Company recorded a share-based compensation benefit of $96,000 during the three and nine months ended June 30, 2023. Common Stock Issued for Services In May 2023, the Company issued a total of 34,091 shares of Barnwell common stock to certain independent directors for their services on behalf of the Company and the Board of Directors pertaining to the negotiations of the cooperation and support agreement and the settlement of the potential proxy contest at the 2023 annual meeting of stockholders (see Note 16 for additional details). The total value of the shares issued was $90,000 which was valued using the closing price of Barnwell's common stock on May 11, 2023, the date of grant. Cash Dividends No dividends were declared or paid during the nine months ended June 30, 2024. In December 2022, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on January 11, 2023 to stockholders of record on December 27, 2022. In February 2023, the Company's Board of Directors declared a cash dividend of $0.015 per share that was paid on March 13, 2023 to stockholders of record on February 23, 2023. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Jun. 30, 2024 | |
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. |
INFORMATION RELATING TO THE CON
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | 9 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended 2024 2023 Supplemental disclosure of cash flow information: Cash paid during the year for: Income taxes paid $ 71,000 $ 100,000 Capital expenditure accruals related to oil and natural gas exploration and development decreased $628,000 and $6,000 during the nine months ended June 30, 2024 and 2023, respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $367,000 and $789,000 during the nine months ended June 30, 2024 and 2023, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2024 | |
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 3. During the nine months ended June 30, 2024, Barnwell received $500,000 in percentage of sales payments from KD I from the sale of the last two single-family lots within Increment I. During the nine months ended June 30, 2023, Barnwell received $265,000 in percentage of sales payments from KD I from the sale of one single-family lot within Increment I. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENT |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2024 | |
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, 2023 Annual Report on Form 10-K, as amended by our Form 10-K/A Amendment No. 1 (our “2023 Annual Report”). The Condensed Consolidated Balance Sheet as of September 30, 2023 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at June 30, 2024, results of operations, comprehensive loss, and equity for the three and nine months ended June 30, 2024 and 2023, and cash flows for the nine months ended June 30, 2024 and 2023, have been made. The results of operations for the period ended June 30, 2024 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, 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. |
Accounts and Other Receivables | Accounts and Other Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is Barnwell’s best estimate of the amount of current expected credit losses in Barnwell’s existing accounts receivable and is based on the aging of the receivable balances, analysis of historical credit loss rates, and current and future economic conditions affecting collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Barnwell does not have any off-balance sheet credit exposure related to its customers. |
Derivative Instruments | Derivative Instruments Barnwell may utilize physical forward commodity contracts to mitigate market price risk on its oil and natural gas output when deemed appropriate. Purchase and sale contracts with a fixed price determined at inception are recorded on the consolidated balance sheet as derivative financial instruments if such contracts are readily convertible to cash - unless the contracts are eligible for and elected as the normal purchases and normal sales exception (“NPNS”); in which case, the contracts are recorded on an accrual basis and the Company recognizes the amounts relating to such transactions during the period when the commodities are physically delivered. The Company generally applies the NPNS exception to eligible oil and natural gas contracts to purchase or sell quantities it expects to use or sell in the normal course of business. The Company has not traded in any derivative contracts other than where the NPNS exception is applied, and it does not apply hedge accounting. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss model with an expected loss model referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. The FASB has subsequently issued other related ASUs which amend ASU 2016-13 to provide clarification and additional guidance. The Company adopted the provisions of this ASU effective October 1, 2023. The adoption of this update did not have an impact on Barnwell’s consolidated financial statements. |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Reconciliations between net (loss) earnings attributable to the entity's stockholders and common shares outstanding of the basic and diluted net (loss) earnings per share computations | Reconciliations between net loss attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net loss per share computations are detailed in the following tables: Three months ended June 30, 2024 Net Loss Shares Per-Share Basic $ (1,246,000) 10,028,090 $ (0.12) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (1,246,000) 10,028,090 $ (0.12) Nine months ended June 30, 2024 Net Loss Shares Per-Share Basic $ (3,682,000) 10,014,609 $ (0.37) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (3,682,000) 10,014,609 $ (0.37) Three months ended June 30, 2023 Net Loss Shares Per-Share Basic $ (717,000) 9,975,044 $ (0.07) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (717,000) 9,975,044 $ (0.07) Nine months ended June 30, 2023 Net Loss Shares Per-Share Basic $ (865,000) 9,962,806 $ (0.09) Effect of dilutive securities - common stock options and restricted stock units — — Diluted $ (865,000) 9,962,806 $ (0.09) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 2023 Revenue $ 518,000 $ 2,703,000 Gross profit $ 129,000 $ 1,694,000 Net (loss) earnings $ (338,000) $ 951,000 Nine months ended June 30, 2024 2023 Revenue $ 12,557,000 $ 7,699,000 Gross profit $ 8,275,000 $ 4,854,000 Net earnings $ 6,674,000 $ 2,176,000 |
Summary of increment I and increment II percentage of sales payment revenues received | The following table summarizes the Increment I revenues from KD I and the amount of fees directly related to such revenues: Three months ended Nine months ended 2024 2023 2024 2023 Sale of interest in leasehold land: Revenues - sale of interest in leasehold land $ — $ — $ 500,000 $ 265,000 Fees - included in general and administrative expenses — — (61,000) (32,000) Sale of interest in leasehold land, net of fees paid $ — $ — $ 439,000 $ 233,000 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost (income) | The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans: Pension Plan SERP Three months ended June 30, 2024 2023 2024 2023 Interest cost $ 103,000 $ 102,000 $ 24,000 $ 22,000 Expected return on plan assets (192,000) (167,000) — — Amortization of net actuarial gain — — (21,000) (20,000) Net periodic benefit (income) cost $ (89,000) $ (65,000) $ 3,000 $ 2,000 Pension Plan SERP Nine months ended June 30, 2024 2023 2024 2023 Interest cost $ 308,000 $ 305,000 $ 72,000 $ 66,000 Expected return on plan assets (575,000) (500,000) — — Amortization of net actuarial gain — — (64,000) (60,000) Net periodic benefit (income) cost $ (267,000) $ (195,000) $ 8,000 $ 6,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Components of income (loss) before income taxes, after adjusting earnings for non-controlling interests | The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows: Three months ended Nine months ended 2024 2023 2024 2023 United States $ (894,000) $ (477,000) $ (1,045,000) $ (1,734,000) Canada (331,000) (403,000) (2,450,000) 782,000 $ (1,225,000) $ (880,000) $ (3,495,000) $ (952,000) |
Schedule of components of the income tax (benefit) provision | The components of the income tax provision (benefit) are as follows: Three months ended Nine months ended 2024 2023 2024 2023 Current $ 25,000 $ (121,000) $ 140,000 $ 12,000 Deferred (4,000) (42,000) 47,000 (99,000) $ 21,000 $ (163,000) $ 187,000 $ (87,000) |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue | The following tables provide information about disaggregated revenue by revenue streams, reportable segments, geographical region, and timing of revenue recognition for the three and nine months ended June 30, 2024 and 2023. Three months ended June 30, 2024 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,597,000 $ — $ — $ — $ 3,597,000 Natural gas 378,000 — — — 378,000 Natural gas liquids 477,000 — — — 477,000 Drilling and pump — 1,021,000 — — 1,021,000 Other — — — 33,000 33,000 Total revenues before interest income $ 4,452,000 $ 1,021,000 $ — $ 33,000 $ 5,506,000 Geographical regions: United States $ 534,000 $ 1,021,000 $ — $ 1,000 $ 1,556,000 Canada 3,918,000 — — 32,000 3,950,000 Total revenues before interest income $ 4,452,000 $ 1,021,000 $ — $ 33,000 $ 5,506,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,452,000 $ — $ — $ 33,000 $ 4,485,000 Services transferred over time — 1,021,000 — — 1,021,000 Total revenues before interest income $ 4,452,000 $ 1,021,000 $ — $ 33,000 $ 5,506,000 Three months ended June 30, 2023 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 3,423,000 $ — $ — $ — $ 3,423,000 Natural gas 622,000 — — — 622,000 Natural gas liquids 458,000 — — — 458,000 Drilling and pump — 1,134,000 — — 1,134,000 Other — — — 13,000 13,000 Total revenues before interest income $ 4,503,000 $ 1,134,000 $ — $ 13,000 $ 5,650,000 Geographical regions: United States $ 869,000 $ 1,134,000 $ — $ 1,000 $ 2,004,000 Canada 3,634,000 — — 12,000 3,646,000 Total revenues before interest income $ 4,503,000 $ 1,134,000 $ — $ 13,000 $ 5,650,000 Timing of revenue recognition: Goods transferred at a point in time $ 4,503,000 $ — $ — $ 13,000 $ 4,516,000 Services transferred over time — 1,134,000 — — 1,134,000 Total revenues before interest income $ 4,503,000 $ 1,134,000 $ — $ 13,000 $ 5,650,000 Nine months ended June 30, 2024 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 10,474,000 $ — $ — $ — $ 10,474,000 Natural gas 1,768,000 — — — 1,768,000 Natural gas liquids 1,484,000 — — — 1,484,000 Drilling and pump — 3,084,000 — — 3,084,000 Contingent residual payments — — 500,000 — 500,000 Other — — — 92,000 92,000 Total revenues before interest income $ 13,726,000 $ 3,084,000 $ 500,000 $ 92,000 $ 17,402,000 Geographical regions: United States $ 1,962,000 $ 3,084,000 $ 500,000 $ 27,000 $ 5,573,000 Canada 11,764,000 — — 65,000 11,829,000 Total revenues before interest income $ 13,726,000 $ 3,084,000 $ 500,000 $ 92,000 $ 17,402,000 Timing of revenue recognition: Goods transferred at a point in time $ 13,726,000 $ — $ 500,000 $ 92,000 $ 14,318,000 Services transferred over time — 3,084,000 — — 3,084,000 Total revenues before interest income $ 13,726,000 $ 3,084,000 $ 500,000 $ 92,000 $ 17,402,000 Nine months ended June 30, 2023 Oil and natural gas Contract drilling Land investment Other Total Revenue streams: Oil $ 9,696,000 $ — $ — $ — $ 9,696,000 Natural gas 2,540,000 — — — 2,540,000 Natural gas liquids 1,179,000 — — — 1,179,000 Drilling and pump — 4,583,000 — — 4,583,000 Contingent residual payments — — 265,000 — 265,000 Other — — — 85,000 85,000 Total revenues before interest income $ 13,415,000 $ 4,583,000 $ 265,000 $ 85,000 $ 18,348,000 Geographical regions: United States $ 1,695,000 $ 4,583,000 $ 265,000 $ 9,000 $ 6,552,000 Canada 11,720,000 — — 76,000 11,796,000 Total revenues before interest income $ 13,415,000 $ 4,583,000 $ 265,000 $ 85,000 $ 18,348,000 Timing of revenue recognition: Goods transferred at a point in time $ 13,415,000 $ — $ 265,000 $ 85,000 $ 13,765,000 Services transferred over time — 4,583,000 — — 4,583,000 Total revenues before interest income $ 13,415,000 $ 4,583,000 $ 265,000 $ 85,000 $ 18,348,000 |
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: June 30, 2024 September 30, 2023 September 30, 2022 Accounts receivables from contracts with customers $ 2,940,000 $ 2,931,000 $ 4,038,000 Contract assets 559,000 958,000 580,000 Contract liabilities 18,000 377,000 1,087,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of financial information related to reporting segments | The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended Nine months ended 2024 2023 2024 2023 Revenues: Oil and natural gas $ 4,452,000 $ 4,503,000 $ 13,726,000 $ 13,415,000 Contract drilling 1,021,000 1,134,000 3,084,000 4,583,000 Land investment — — 500,000 265,000 Other 33,000 13,000 92,000 85,000 Total before interest income 5,506,000 5,650,000 17,402,000 18,348,000 Interest income 21,000 25,000 54,000 77,000 Total revenues $ 5,527,000 $ 5,675,000 $ 17,456,000 $ 18,425,000 Depletion, depreciation, and amortization: Oil and natural gas $ 1,293,000 $ 1,210,000 $ 4,093,000 $ 2,724,000 Contract drilling 28,000 47,000 130,000 133,000 Other 1,000 — 2,000 1,000 Total depletion, depreciation, and amortization $ 1,322,000 $ 1,257,000 $ 4,225,000 $ 2,858,000 Impairment: Oil and natural gas $ 599,000 $ — $ 2,276,000 $ — Total impairment $ 599,000 $ — $ 2,276,000 $ — Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ 326,000 $ 287,000 $ 2,000 $ 2,974,000 Contract drilling (99,000) 5,000 (694,000) 110,000 Land investment — — 500,000 265,000 Other 32,000 13,000 90,000 84,000 Gain on sale of assets — — — 551,000 Total operating profit (loss) 259,000 305,000 (102,000) 3,984,000 Equity in income of affiliates: Land investment — — 1,071,000 538,000 General and administrative expenses (1,432,000) (1,328,000) (4,217,000) (5,627,000) Foreign currency (loss) gain (61,000) 121,000 (63,000) 201,000 Interest expense — (1,000) (2,000) (1,000) Interest income 21,000 25,000 54,000 77,000 Loss before income taxes $ (1,213,000) $ (878,000) $ (3,259,000) $ (828,000) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 income were as follows: Three months ended Nine months ended 2024 2023 2024 2023 Foreign currency translation: Beginning accumulated foreign currency translation $ 228,000 $ 224,000 $ 220,000 $ 222,000 Change in cumulative translation adjustment before reclassifications 12,000 15,000 20,000 17,000 Income taxes — — — — Net current period other comprehensive income 12,000 15,000 20,000 17,000 Ending accumulated foreign currency translation 240,000 239,000 240,000 239,000 Retirement plans: Beginning accumulated retirement plans benefit income 1,841,000 1,032,000 1,884,000 1,072,000 Amortization of net actuarial gain (21,000) (20,000) (64,000) (60,000) Income taxes — — — — Net current period other comprehensive loss (21,000) (20,000) (64,000) (60,000) Ending accumulated retirement plans benefit income 1,820,000 1,012,000 1,820,000 1,012,000 Accumulated other comprehensive income, net of taxes $ 2,060,000 $ 1,251,000 $ 2,060,000 $ 1,251,000 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Summary of the Activity in Restricted Stock Units | The following table summarizes Barnwell’s restricted stock unit activity from October 1, 2023 through June 30, 2024: Restricted Stock Units Shares Weighted-Average Nonvested at October 1, 2023 — $ — Granted 136,336 2.62 Vested — — Forfeited — — Nonvested at June 30, 2024 136,336 $ 2.62 |
INFORMATION RELATING TO THE C_2
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | Nine months ended 2024 2023 Supplemental disclosure of cash flow information: Cash paid during the year for: Income taxes paid $ 71,000 $ 100,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended |
Jun. 30, 2024 | |
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% |
LOSS PER COMMON SHARE (Details)
LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Loss (Numerator) | ||||
Basic | $ (1,246) | $ (717) | $ (3,682) | $ (865) |
Effect of dilutive securities - common stock options and restricted stock units | 0 | 0 | 0 | 0 |
Diluted | $ (1,246) | $ (717) | $ (3,682) | $ (865) |
Shares (Denominator) | ||||
Basic (in shares) | 10,028,090 | 9,975,044 | 10,014,609 | 9,962,806 |
Effect of dilutive securities - common stock options and restricted stock units (in shares) | 0 | 0 | 0 | 0 |
Diluted (in shares) | 10,028,090 | 9,975,044 | 10,014,609 | 9,962,806 |
Per-Share Amount | ||||
Basic net loss per share (in dollars per share) | $ (0.12) | $ (0.07) | $ (0.37) | $ (0.09) |
Diluted net loss per share (in dollars per share) | $ (0.12) | $ (0.07) | $ (0.37) | $ (0.09) |
Options | ||||
Antidilutive shares excluded from the computation of diluted shares | ||||
Antidilutive shares excluded from computation of loss per share (in shares) | 465,000 | 493,022 | 465,000 | 574,341 |
Restricted Stock Units (RSUs) | ||||
Antidilutive shares excluded from the computation of diluted shares | ||||
Antidilutive shares excluded from computation of loss per share (in shares) | 106,006 | 37,312 | 86,190 | 12,301 |
INVESTMENTS - INVESTMENT IN KUK
INVESTMENTS - INVESTMENT IN KUKIO RESORT LAND DEVELOPMENT PARTNERSHIP (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Nov. 27, 2013 USD ($) partnership | Jun. 30, 2024 USD ($) | Mar. 31, 2024 lot | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) lot | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2021 USD ($) | Mar. 07, 2019 | |
Investment Holdings [Line Items] | |||||||||
Number of limited liability limited partnerships formed | partnership | 2 | ||||||||
Cash distribution from equity method investment, gross | $ 0 | $ 0 | $ 1,071 | $ 538 | |||||
Cash distribution from equity method investment, net | 953 | 478 | |||||||
Equity in income of affiliates | $ 0 | $ 0 | 1,071 | 538 | |||||
Investment in Kukio Resort Land Development Partnerships | $ 0 | ||||||||
Cumulative cash distributions from Kukio Resort Land Development Partnerships in excess of our investment balance | $ 300 | $ 708 | |||||||
KD Kukio Resorts LLLP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | ||||||||
KD Kaupulehu, LLLP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | ||||||||
KD Maniniowali L L L P | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | ||||||||
Indirectly Acquired Interest | |||||||||
Investment Holdings [Line Items] | |||||||||
Aggregate cost | $ 5,140 | ||||||||
KD Acquisition, LLLP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 19.60% | 19.60% | |||||||
KD Kona 2013 LLLP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 75% | ||||||||
KKM Makai LLLP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 34.45% | ||||||||
KD Kaupulehu, LLLP | KD Acquisition II, LP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 55% | ||||||||
Replay | KD Acquisition II, LP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 45% | ||||||||
Barnwell Industries Inc | KD Acquisition II, LP | |||||||||
Investment Holdings [Line Items] | |||||||||
Ownership interest acquired | 10.80% | 10.80% | |||||||
Kaupulehu Developments | KD Kaupulehu LLLP Increment I | |||||||||
Investment Holdings [Line Items] | |||||||||
Number of single family lots sold | lot | 2 | ||||||||
Number of lots developed | lot | 80 | ||||||||
Non-controlling Interests | |||||||||
Investment Holdings [Line Items] | |||||||||
Cash distribution from equity method investment, net | $ 118 | $ 60 |
INVESTMENTS - SUMMARIZED FINANC
INVESTMENTS - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investment Holdings [Line Items] | ||||
Revenues | $ 5,527 | $ 5,675 | $ 17,456 | $ 18,425 |
Net earnings (loss) | (1,234) | (715) | (3,446) | (741) |
Investment in land development partnerships | ||||
Investment Holdings [Line Items] | ||||
Revenues | 518 | 2,703 | 12,557 | 7,699 |
Gross Profit | 129 | 1,694 | 8,275 | 4,854 |
Net earnings (loss) | $ (338) | $ 951 | $ 6,674 | $ 2,176 |
INVESTMENTS - SALE OF INTEREST
INVESTMENTS - SALE OF INTEREST IN LEASEHOLD LAND (Details) - KD Kaupulehu LLLP Increment I - Kaupulehu Developments - lot | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Jun. 30, 2024 | |
Investment Holdings [Line Items] | ||
Payments entitled to be received as percentage of gross proceeds from sale of single family lots | 10% | |
Number of single family lots sold | 2 | |
Number of lots developed | 80 |
INVESTMENTS - SUMMARY OF REVENU
INVESTMENTS - SUMMARY OF REVENUES (Details) - Kaupulehu Developments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investment Holdings [Line Items] | ||||
Revenues - sale of interest in leasehold land | $ 0 | $ 0 | $ 500 | $ 265 |
Fees - included in general and administrative expenses | 0 | 0 | (61) | (32) |
Sale of interest in leasehold land, net of fees paid | $ 0 | $ 0 | $ 439 | $ 233 |
INVESTMENTS - INVESTMENT IN LEA
INVESTMENTS - INVESTMENT IN LEASEHOLD LAND INTEREST - LOT 4C (Details) a in Thousands | Jun. 30, 2024 a |
Investments, All Other Investments [Abstract] | |
Area of land (in acres) | 1 |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITY - NARRATIVE (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Variable Interest Entity [Line Items] | |||
Percentage of capital contributions to variable interest entity | 100% | ||
Acquisition of non-controlling interest | $ 185 | $ 0 | |
BOK Drilling, LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage of Tenton Barnwell | 100% | ||
Gros Ventre Partners, LLC | |||
Variable Interest Entity [Line Items] | |||
Profit sharing ratio of variable interest entity | 2% | 2% | |
Asset management fee, percent fee of cumulative capital contributions | 1% | ||
BOK Drilling, LLC | |||
Variable Interest Entity [Line Items] | |||
Profit sharing ratio of variable interest entity | 98% |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 01, 2022 | |
Oil and Natural Gas Properties [Line Items] | ||||||
Proceeds from the sale of oil and natural gas assets | $ 451 | $ 0 | ||||
Impairment of assets | $ 599 | $ 0 | 2,276 | 0 | ||
Oil and natural gas | ||||||
Oil and Natural Gas Properties [Line Items] | ||||||
Impairment of assets | 599 | $ 0 | 2,276 | 0 | ||
Oil and natural gas | United states | ||||||
Oil and Natural Gas Properties [Line Items] | ||||||
Impairment of assets | 112 | 112 | ||||
Oil and natural gas | Canada | ||||||
Oil and Natural Gas Properties [Line Items] | ||||||
Impairment of assets | 487 | $ 2,164 | ||||
Barnwell Industries Inc | Kaybob, Alberta, Canada | ||||||
Oil and Natural Gas Properties [Line Items] | ||||||
Proceeds from the sale of oil and natural gas assets | $ 448 | |||||
Barnwell Texas, LLC | ||||||
Oil and Natural Gas Properties [Line Items] | ||||||
Working interest in oil and gas leasehold acreage | 22.30% | |||||
Cash paid to acquire working interest in oil and gas leasehold acreage | $ 806 | |||||
Working interest in oil wells | 15.40% | |||||
Costs incurred | $ 4,293 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension Plan | ||||
Net periodic benefit cost: | ||||
Interest cost | $ 103 | $ 102 | $ 308 | $ 305 |
Expected return on plan assets | (192) | (167) | (575) | (500) |
Amortization of net actuarial gain | 0 | 0 | 0 | 0 |
Net periodic benefit (income) cost | (89) | (65) | (267) | (195) |
Other disclosures | ||||
Estimated future Pension Plan contributions | 0 | 0 | ||
SERP | ||||
Net periodic benefit cost: | ||||
Interest cost | 24 | 22 | 72 | 66 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial gain | (21) | (20) | (64) | (60) |
Net periodic benefit (income) cost | $ 3 | $ 2 | $ 8 | $ 6 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Components of loss before income taxes, after adjusting the loss for non-controlling interests | ||||
United States | $ (894) | $ (477) | $ (1,045) | $ (1,734) |
Canada | (331) | (403) | (2,450) | 782 |
Total | (1,225) | (880) | (3,495) | (952) |
Components of the income tax provision (benefit) | ||||
Current | 25 | (121) | 140 | 12 |
Deferred | (4) | (42) | 47 | (99) |
Total | $ 21 | $ (163) | $ 187 | $ (87) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | $ 5,506 | $ 5,650 | $ 17,402 | $ 18,348 |
Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 3,597 | 3,423 | 10,474 | 9,696 |
Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 378 | 622 | 1,768 | 2,540 |
Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 477 | 458 | 1,484 | 1,179 |
Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,021 | 1,134 | 3,084 | 4,583 |
Contingent residual payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 500 | 265 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 33 | 13 | 92 | 85 |
United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,556 | 2,004 | 5,573 | 6,552 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 3,950 | 3,646 | 11,829 | 11,796 |
Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 4,485 | 4,516 | 14,318 | 13,765 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,021 | 1,134 | 3,084 | 4,583 |
Oil and natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 4,452 | 4,503 | 13,726 | 13,415 |
Oil and natural gas | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 3,597 | 3,423 | 10,474 | 9,696 |
Oil and natural gas | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 378 | 622 | 1,768 | 2,540 |
Oil and natural gas | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 477 | 458 | 1,484 | 1,179 |
Oil and natural gas | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 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 | 0 | 0 |
Oil and natural gas | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 534 | 869 | 1,962 | 1,695 |
Oil and natural gas | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 3,918 | 3,634 | 11,764 | 11,720 |
Oil and natural gas | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 4,452 | 4,503 | 13,726 | 13,415 |
Oil and natural gas | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,021 | 1,134 | 3,084 | 4,583 |
Contract drilling | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,021 | 1,134 | 3,084 | 4,583 |
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 | 0 | 0 |
Contract drilling | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,021 | 1,134 | 3,084 | 4,583 |
Contract drilling | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Contract drilling | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1,021 | 1,134 | 3,084 | 4,583 |
Land investment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 500 | 265 |
Land investment | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Contingent residual payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 500 | 265 | ||
Land investment | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 500 | 265 |
Land investment | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Land investment | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 500 | 265 |
Land investment | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 33 | 13 | 92 | 85 |
Other | Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 0 | 0 |
Other | Drilling and pump | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 0 | 0 | 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 | 33 | 13 | 92 | 85 |
Other | United states | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 1 | 1 | 27 | 9 |
Other | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 32 | 12 | 65 | 76 |
Other | Goods transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | 33 | 13 | 92 | 85 |
Other | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue before interest income | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - CONTRACT BALANCES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivables from contracts with customers | $ 2,940 | $ 2,931 | $ 4,038 |
Contract assets | 559 | 958 | 580 |
Contract liabilities | $ 18 | $ 377 | $ 1,087 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - NARRATIVE (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, liability, current | $ 18 | $ 377 | |
Contract with customer, liability, revenue recognized | 377 | $ 1,012 | |
Capitalized contract cost net, preconstruction | 240 | $ 504 | |
Capitalized contract cost, amortization of preconstruction | $ 240 | $ 248 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 5% | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract receivable retainage percentage | 10% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Revenue before interest income | $ 5,506,000 | $ 5,650,000 | $ 17,402,000 | $ 18,348,000 |
Interest income | 21,000 | 25,000 | 54,000 | 77,000 |
Total revenues | 5,527,000 | 5,675,000 | 17,456,000 | 18,425,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 1,322,000 | 1,257,000 | 4,225,000 | 2,858,000 |
Asset Impairment Charges | ||||
Impairment of assets | 599,000 | 0 | 2,276,000 | 0 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 259,000 | 305,000 | (102,000) | 3,984,000 |
Equity in income of affiliates: | ||||
Equity in income of affiliates | 0 | 0 | 1,071,000 | 538,000 |
General and administrative expenses | (1,432,000) | (1,328,000) | (4,217,000) | (5,627,000) |
Foreign currency (loss) gain | (61,000) | 121,000 | (63,000) | 201,000 |
Interest expense | 0 | (1,000) | (2,000) | (1,000) |
Interest income | 21,000 | 25,000 | 54,000 | 77,000 |
Loss before income taxes | (1,213,000) | (878,000) | (3,259,000) | (828,000) |
Intersegment eliminations | External Customer | ||||
Revenues: | ||||
Total revenues | 0 | |||
Oil and natural gas | ||||
Revenues: | ||||
Revenue before interest income | 4,452,000 | 4,503,000 | 13,726,000 | 13,415,000 |
Total revenues | 4,452,000 | 4,503,000 | 13,726,000 | 13,415,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 1,293,000 | 1,210,000 | 4,093,000 | 2,724,000 |
Asset Impairment Charges | ||||
Impairment of assets | 599,000 | 0 | 2,276,000 | 0 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 326,000 | 287,000 | 2,000 | 2,974,000 |
Contract drilling | ||||
Revenues: | ||||
Revenue before interest income | 1,021,000 | 1,134,000 | 3,084,000 | 4,583,000 |
Total revenues | 1,021,000 | 1,134,000 | 3,084,000 | 4,583,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 28,000 | 47,000 | 130,000 | 133,000 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | (99,000) | 5,000 | (694,000) | 110,000 |
Land investment | ||||
Revenues: | ||||
Revenue before interest income | 0 | 0 | 500,000 | 265,000 |
Total revenues | 0 | 0 | 500,000 | 265,000 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 0 | 0 | 500,000 | 265,000 |
Other | ||||
Revenues: | ||||
Revenue before interest income | 33,000 | 13,000 | 92,000 | 85,000 |
Total revenues | 54,000 | 38,000 | 146,000 | 162,000 |
Depletion, depreciation, and amortization: | ||||
Depletion, depreciation, and amortization | 1,000 | 0 | 2,000 | 1,000 |
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | 32,000 | 13,000 | 90,000 | 84,000 |
Gain on sale of asset | ||||
Operating profit (loss) (before general and administrative expenses): | ||||
Operating profit (loss) (before general and administrative expenses) | $ 0 | $ 0 | $ 0 | $ 551,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Changes in foreign currency translation | |||||
Beginning accumulated foreign currency translation | $ 228 | $ 224 | $ 220 | $ 222 | |
Change in cumulative translation adjustment before reclassifications | 12 | 15 | 20 | 17 | |
Income taxes | 0 | 0 | 0 | 0 | |
Net current period other comprehensive income | 12 | 15 | 20 | 17 | |
Ending accumulated foreign currency translation | 240 | 239 | 240 | 239 | |
Changes in retirement plans | |||||
Beginning accumulated retirement plans benefit income | 1,841 | 1,032 | 1,884 | 1,072 | |
Amortization of net actuarial gain | (21) | (20) | (64) | (60) | |
Income taxes | 0 | 0 | 0 | 0 | |
Net current period other comprehensive loss | (21) | (20) | (64) | (60) | |
Ending accumulated retirement plans benefit income | 1,820 | 1,012 | 1,820 | 1,012 | |
Accumulated other comprehensive income, net of taxes | $ 2,060 | $ 1,251 | $ 2,060 | $ 1,251 | $ 2,104 |
STOCKHOLDERS' EQUITY - SHARE-BA
STOCKHOLDERS' EQUITY - SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
May 16, 2024 | Nov. 02, 2023 | May 11, 2023 | May 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Value of common stock issued for services | $ 90 | $ 90 | $ 90 | |||||
Share-based Payment Arrangement, Independent Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issuance of common stock for services (in shares) | 34,091 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of restricted stock units granted (in shares) | 136,336 | |||||||
Share-based compensation expense | $ 42 | 49 | $ 103 | 49 | ||||
Total unrecognized compensation cost | $ 255 | $ 255 | ||||||
Period over which unrecognized compensation cost is expected to be recognized | 1 year 9 months 18 days | |||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Independent Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of restricted stock units granted (in shares) | 76,336 | |||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Employee | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of restricted stock units granted (in shares) | 60,000 | |||||||
Equity-classified share options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ (96) | $ (96) | ||||||
Number of stock options expired in the period (in shares) | 100,000 | |||||||
Number of stock options forfeited in the period (in shares) | 50,000 |
STOCKHOLDERS' EQUITY - RESTRICT
STOCKHOLDERS' EQUITY - RESTRICTED STOCK UNIT AWARDS (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Shares | |
Nonvested at the beginning of the period (in shares) | shares | 0 |
Granted (in shares) | shares | 136,336 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Nonvested at the end of the period (in shares) | shares | 136,336 |
Weighted-Average Grant Date Fair Value | |
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 2.62 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 2.62 |
STOCKHOLDERS' EQUITY NARRATIVE
STOCKHOLDERS' EQUITY NARRATIVE (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity [Abstract] | |||||
Dividends declared, cash paid per share (in dollars per share) | $ 0.015 | $ 0.015 | $ 0.015 | $ 0 | $ 0.045 |
INFORMATION RELATING TO THE C_3
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | $ 71 | $ 100 |
Oil and natural gas | ||
Supplemental disclosures of cash flow information: | ||
Increase (decrease) in capital expenditure accruals related to oil and natural gas exploration and development | (628) | (6) |
Increase (decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations | $ 367 | $ 789 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 11, 2023 USD ($) shares | May 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) lot | Jun. 30, 2023 USD ($) lot | |
Related party transactions | ||||||
Value of common stock issued for services | $ 90 | $ 90 | $ 90 | |||
Mr. Kenneth Grossman | ||||||
Related party transactions | ||||||
Expenses incurred from transactions with related parties | $ 100 | |||||
One-time special director fee paid in cash | 40 | |||||
Issuance of common stock for services (in shares) | shares | 22,728 | |||||
Value of common stock issued for services | $ 60 | |||||
Mr. Douglas Woodrum | ||||||
Related party transactions | ||||||
Expenses incurred from transactions with related parties | 50 | |||||
One-time special director fee paid in cash | $ 20 | |||||
Issuance of common stock for services (in shares) | shares | 11,363 | |||||
Value of common stock issued for services | $ 30 | |||||
Kaupulehu Developments | ||||||
Related party transactions | ||||||
Revenues - sale of interest in leasehold land | $ 0 | $ 0 | $ 500 | 265 | ||
Kaupulehu Developments | KD Kaupulehu, LLLP | Increment I | ||||||
Related party transactions | ||||||
Revenues - sale of interest in leasehold land | $ 500 | $ 265 | ||||
Number of single family lots sold | lot | 2 | 1 | ||||
KD Acquisition, LLLP | ||||||
Related party transactions | ||||||
Ownership interest acquired | 19.60% | 19.60% | ||||
KD Acquisition II, LP | Barnwell Industries Inc | ||||||
Related party transactions | ||||||
Ownership interest acquired | 10.80% | 10.80% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - Twining, Alberta, Canada | 1 Months Ended |
Jul. 30, 2024 well | |
Subsequent Event [Line Items] | |
Number of oil wells drilled | 1 |
Ownership percent of development oil well | 1 |