Barnwell Industries, Inc. Reports Second Earnings

HONOLULU, May 13, 2022 (GLOBE NEWSWIRE) — Barnwell Industries, Inc. (NYSE American: BRN) today announced net earnings of $2,052,000, $0.21 per share, and $3,125,000, $0.33 per share, for the three and six months ended March 31, 2022, respectively, compared to net losses of $856,000, $0.10 per share, and $272,000, $0.03 per share, for the three and six months ended March 31, 2021, respectively.

Mr. Alexander C. Kinzler, Chairman and Chief Executive Officer of Barnwell, said, “We are pleased to report that our quarterly oil and natural gas revenue more than doubled, along with a significant increase in segment revenue. terrestrial, which contributed to the increase in our profits. compared to the prior year quarter ended March 31, 2021.

“Our oil and gas operating margins have improved as prices have increased for all products; oil, natural gas and natural gas liquids increased 75%, 53% and 95%, respectively, for our second quarter compared to the prior year quarter. Notably, our new oil production from Oklahoma accounted for 22% of our second quarter production on a barrel of oil equivalent basis, compared to none in the prior year quarter. In addition, quarterly production of all petroleum products increased from last year’s quarter.

“While our oil and natural gas segment improved the most this quarter, our land investment segment also performed well as three lots were sold under Phase II of Increment I by the Kukio resort development partnerships in Kaupulehu, North Kona, Hawaii, with the company receiving $695,000 in percentage sales payments and $1,568,000 in net cash distributions during our second quarter These real estate sales also increased significantly increased our reported affiliate earnings of $1,136,000, in this quarter, compared to the prior year quarter ended March 31, 2021.

“For the six months ended March 31, 2022, compared to the prior year six months ended March 31, 2021, the increase in earnings was also largely attributable to the operating results of the oil and natural gas segment, which recorded a improvement of $3,724,000. This was due to increases in production and prices for all products and in part an asset impairment charge of $630,000 in the prior year period, compared to no impairment charge in during the current six-month period. The land investment segment recorded an increase in affiliate earnings of $1,289,000 due to improved real estate sales, which also enabled the Company to receive $1,295,000 as a percentage of sales payments and $2,643,000 in net cash distributions. Contract drilling operating results decreased by $897,000 due to the completion of a large drilling contract during the prior year period.

“Our Oklahoma operations generated $727,000 (30%) and $1,464,000 (37%) of operating profits from our oil and natural gas segments for the three and six months ended March 31, 2022. , respectively.Our production in Oklahoma comes from shale oil wells which typically experience large declines in production.

“The Company participated in the drilling of one operated well and two unoperated wells for a total of three gross wells (1.6 net) in the Twining area of ​​Alberta, Canada. The wells were completed and began producing during the three months ended March 31, 2022 and are currently producing approximately 400 barrels of oil equivalent before royalties per day on an aggregate basis. We expect these wells to continue to increase our production in the third quarter. Capital expenditures incurred for the drilling of these wells during the six months ended March 31, 2022 totaled approximately $4,258,000. Additionally, in January 2022, the Company acquired additional working interests in oil and gas properties located in the Twining area of ​​Alberta, Canada, for consideration of $1,246,000. Barnwell also assumed $1,500,000 of long-term asset retirement obligations associated with the acquisition.

“The Company’s liquidity remains strong through our operations and the Company’s sale of 509,467 common shares, which generated net proceeds of $2,356,000 after expenses of $97,000 during the quarter ended March 31, 2022. Barnwell ended the quarter with $11,026,000 in working capital, which includes $9,626,000 in cash and cash equivalents.

The information in this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. , as amended. A forward-looking statement is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. Forward-looking statements include expressions such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “predicts”, “estimates”, “assumes”, “projects”. , “may”, “will”. ,” “will”, “should” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot guarantee that the expectations contained in these forward-looking statements will be realized. Forward-looking statements involve risks, uncertainties and assumptions that could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that could cause actual results to differ materially from Barnwell’s expectations are set forth in the ” Forward-Looking Statements”, “Risk Factors” and other sections of Barnwell’s Annual Report on Form 10-K for the past fiscal year and Barnwell’s other filings with the Securities and Exchange Commission. Investors should not place undue reliance on the forward-looking statements contained in this press release, as they are not as of the date of this press release, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements. looking for the statements contained herein.

COMPARATIVE OPERATING RESULTS
(Unaudited)
Three months completed Six months ended
March, 31st, March, 31st,
2022 2021 2022 2021
Revenue $ 6,679,000 $ 3,998,000 $ 12,133,000 $ 8,385,000
Net profit (net loss)
attributable to
Barnwell Industries, Inc.
$ 2,052,000 $ (856,000) $ 3,125,000 $ (272,000)
Net profit (loss) per
sharing – basic and diluted $ 0.21 $ (0.10) $ 0.33 $ (0.03)
Weighted average shares and
equivalent shares outstanding:
Basic and diluted 9,570,989 8,277,160 9,507,955 8,277,160
CONTACT: Alexander C. Kinzler
CEO and President

Russell M. Gifford
Executive Vice President and Chief Financial Officer

Tel: (808) 531-8400

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