Barnwell Industries Inc (BRN, Financial) filed Annual Report for the period ended 2011-09-30.
Barnwell Industries Inc. has a market cap of $27.3 million; its shares were traded at around $3.1215 with a P/E ratio of 55 and P/S ratio of 0.6. Barnwell Industries Inc. had an annual average earning growth of 6.8% over the past 10 years.
Oil and natural gas revenues increased $1,248,000 (5%) from $27,556,000 in fiscal 2010 to $28,804,000 in fiscal 2011, primarily due to increases in oil and natural gas liquids prices, which increased 22% and 23%, respectively, as compared to prices in fiscal 2010, and a 12% increase in net oil production. The increase was partially offset by decreases in natural gas prices and production which declined 10% and 9%, respectively, as compared to fiscal 2010.
Net natural gas production decreased 9% during fiscal 2011, as compared to fiscal 2010. Gross natural gas production decreased 14% during fiscal 2011, as compared to fiscal 2010. The decrease in production was primarily due to natural declines, including the Dunvegan property where natural gas production on a gross basis decreased 10%. The decrease in production on a net basis was partially offset by lower royalty rates resulting from the aforementioned modification to the royalty framework effective January 1, 2011 and lower natural gas prices. At Dunvegan, natural gas production on a net basis decreased 59,000 Mcf or 3% and net natural gas production at all other properties decreased 18%. Dunvegan contributed 64% of Barnwells net natural gas production in fiscal 2011, as compared to 60% in fiscal 2010. In fiscal 2011, natural gas production from the Dunvegan Unit was responsible for 60% of Barnwells natural gas revenues, as compared to 57% in fiscal 2010.
Contract drilling revenues decreased $2,662,000 (41%) to $3,855,000 in fiscal 2011, as compared to $6,517,000 in fiscal 2010, and contract drilling costs decreased $1,718,000 (31%) to $3,882,000 in fiscal 2011, as compared to $5,600,000 in fiscal 2010. The contract drilling segment generated a $587,000 operating loss before general and administrative expenses during 2011, a decrease of $1,024,000 as compared to an operating profit before general and administrative expenses of $437,000 in fiscal 2010. The decrease in operating results was due to fewer well drilling contracts, lower well drilling contract amounts and margins, and unforeseen difficulties experienced on certain well drilling and water pump contracts in the current year period.
Net cash used in investing activities totaled $11,473,000 for fiscal 2011, as compared to $1,811,000 of cash flows provided by investing activities for the same period in fiscal 2010. The $13,284,000 change was primarily attributable to a $10,258,000 increase in capital expenditures due to higher oil and natural gas capital expenditures and the purchase of an office in New York City by a subsidiary of the Company, and a $2,102,000 decrease in proceeds from land investment segment sales during fiscal 2011, as compared to the same period of the prior year.
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Barnwell Industries Inc. has a market cap of $27.3 million; its shares were traded at around $3.1215 with a P/E ratio of 55 and P/S ratio of 0.6. Barnwell Industries Inc. had an annual average earning growth of 6.8% over the past 10 years.
Highlight of Business Operations:
The average exchange rate of the Canadian dollar to the U.S. dollar increased 6% in fiscal 2011, as compared to fiscal 2010, and the exchange rate of the Canadian dollar to the U.S. dollar decreased 1% at September 30, 2011, as compared to September 30, 2010. Accordingly, the assets, liabilities, stockholders equity, and revenues and expenses of Barnwells subsidiaries operating in Canada have been adjusted to reflect the change in the exchange rates. Barnwells Canadian dollar assets are greater than its Canadian dollar liabilities; therefore, increases or decreases in the value of the Canadian dollar to the U.S. dollar generate other comprehensive income or loss, respectively. Other comprehensive income and losses are not included in net (loss) earnings. The other comprehensive loss due to foreign currency translation adjustments, net of taxes, for fiscal 2011 was $446,000, a $1,842,000 decrease from other comprehensive income due to foreign currency translation adjustments, net of taxes, of $1,396,000 in fiscal 2010. There were no taxes on other comprehensive (loss) income due to foreign currency translation adjustments in fiscal 2011 and 2010 due to a full valuation allowance on the related deferred tax assets.Oil and natural gas revenues increased $1,248,000 (5%) from $27,556,000 in fiscal 2010 to $28,804,000 in fiscal 2011, primarily due to increases in oil and natural gas liquids prices, which increased 22% and 23%, respectively, as compared to prices in fiscal 2010, and a 12% increase in net oil production. The increase was partially offset by decreases in natural gas prices and production which declined 10% and 9%, respectively, as compared to fiscal 2010.
Net natural gas production decreased 9% during fiscal 2011, as compared to fiscal 2010. Gross natural gas production decreased 14% during fiscal 2011, as compared to fiscal 2010. The decrease in production was primarily due to natural declines, including the Dunvegan property where natural gas production on a gross basis decreased 10%. The decrease in production on a net basis was partially offset by lower royalty rates resulting from the aforementioned modification to the royalty framework effective January 1, 2011 and lower natural gas prices. At Dunvegan, natural gas production on a net basis decreased 59,000 Mcf or 3% and net natural gas production at all other properties decreased 18%. Dunvegan contributed 64% of Barnwells net natural gas production in fiscal 2011, as compared to 60% in fiscal 2010. In fiscal 2011, natural gas production from the Dunvegan Unit was responsible for 60% of Barnwells natural gas revenues, as compared to 57% in fiscal 2010.
Contract drilling revenues decreased $2,662,000 (41%) to $3,855,000 in fiscal 2011, as compared to $6,517,000 in fiscal 2010, and contract drilling costs decreased $1,718,000 (31%) to $3,882,000 in fiscal 2011, as compared to $5,600,000 in fiscal 2010. The contract drilling segment generated a $587,000 operating loss before general and administrative expenses during 2011, a decrease of $1,024,000 as compared to an operating profit before general and administrative expenses of $437,000 in fiscal 2010. The decrease in operating results was due to fewer well drilling contracts, lower well drilling contract amounts and margins, and unforeseen difficulties experienced on certain well drilling and water pump contracts in the current year period.
Net cash used in investing activities totaled $11,473,000 for fiscal 2011, as compared to $1,811,000 of cash flows provided by investing activities for the same period in fiscal 2010. The $13,284,000 change was primarily attributable to a $10,258,000 increase in capital expenditures due to higher oil and natural gas capital expenditures and the purchase of an office in New York City by a subsidiary of the Company, and a $2,102,000 decrease in proceeds from land investment segment sales during fiscal 2011, as compared to the same period of the prior year.
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