Barnwell Industries Inc (BRN, Financial) filed Quarterly Report for the period ended 2009-06-30.
BARNWELL INDUSTRIES is engaged in oil and natural gas exploration development production and sales in Canada and the United States investment in leasehold land in Hawaii and water well drilling and water pumping system installation and repair in Hawaii. Additionally they provide contract labor for the drilling and workovers of geothermal wells. Their oil and natural gas activities comprises its largest business segment. The other business segment is land investment activities and contract drilling activities. Barnwell Industries Inc has a market cap of $37.4 million; its shares were traded at around $4.54 with and P/S ratio of 0.6. Barnwell Industries Inc had an annual average earning growth of 20.9% over the past 10 years.
Our revenue, profitability, and future rate of growth are substantially dependent on existing oil and natural gas prices. Historically, oil and natural gas prices have been extremely volatile. Oil and natural gas prices hit historic high levels in recent years and during the latter half of fiscal 2008. Beginning in the fourth quarter of fiscal 2008 through the date of this filing, oil and natural gas prices have fallen sharply from their record levels. Natural gas prices for Barnwell, based on quarterly averages during the three years ended June 30, 2009, have ranged from a low of $3.19 per thousand cubic feet (the average price for the current quarter) to a high of $9.70 per thousand cubic feet (the average price for the quarter ended June 30, 2008). Oil prices for Barnwell, based on quarterly averages for the period discussed above, ranged from a low of $35.20 per barrel (the average price for
In the three and nine months ended June 30, 2009, Barnwell recorded non-cash reductions of the carrying value of oil and natural gas properties of $4,260,000 (approximately $3,000,000 net of income taxes) and $26,348,000 (approximately $18,556,000 net of income taxes), respectively. The reductions were primarily due to a significant decline in the price of natural gas. At June 30, 2009, natural gas prices declined even further from March 31, 2009 prices. This decrease was partially offset by an increase in the price for oil and to a lesser extent an increase in the price for natural gas liquids for the same period.
For the three months ended June 30, 2009, Barnwell reported a net loss totaling $3,235,000, a $6,768,000 decrease from net earnings of $3,533,000 for the three months ended June 30, 2008. This decrease was largely attributable to the following items:
For the nine months ended June 30, 2009, Barnwell reported a net loss totaling $19,808,000, a $28,345,000 decrease from net earnings of $8,537,000 for the nine months ended June 30, 2008. This decrease was largely due to the following items:
The average exchange rate of the Canadian dollar to the U.S. dollar decreased 13% and 17% in the three and nine months ended June 30, 2009, respectively, as compared to the same periods in the prior year, and the exchange rate of the Canadian dollar to the U.S. dollar increased 8% and decreased 9% at June 30, 2009 as compared to March 31, 2009 and September 30, 2008, respectively. 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 losses, respectively. Other comprehensive income and losses are not included in net (loss) earnings. The other comprehensive income due to foreign currency translation adjustments, net of taxes, for the three months ended June 30, 2009 was $2,850,000, a $2,513,000 increase from the $337,000 other comprehensive income due to foreign currency translation adjustments, net of taxes, for the same period in the prior year. The other comprehensive loss due to foreign currency translation adjustments, net of taxes, for the nine months ended June 30, 2009 was $3,807,000, a $2,970,000 increase from the $837,000 other comprehensive loss due to foreign currency translation adjustments, net of taxes, for the same period in the prior year.
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BARNWELL INDUSTRIES is engaged in oil and natural gas exploration development production and sales in Canada and the United States investment in leasehold land in Hawaii and water well drilling and water pumping system installation and repair in Hawaii. Additionally they provide contract labor for the drilling and workovers of geothermal wells. Their oil and natural gas activities comprises its largest business segment. The other business segment is land investment activities and contract drilling activities. Barnwell Industries Inc has a market cap of $37.4 million; its shares were traded at around $4.54 with and P/S ratio of 0.6. Barnwell Industries Inc had an annual average earning growth of 20.9% over the past 10 years.
Highlight of Business Operations:
· Development rights for residentially-zoned leasehold land within and adjacent to the Hualalai Golf Club which are under option to a developer. As of June 30, 2009, the development rights are under option for $5,312,000, comprised of two payments of $2,656,000 due on December 31, 2009 and December 31, 2010.Our revenue, profitability, and future rate of growth are substantially dependent on existing oil and natural gas prices. Historically, oil and natural gas prices have been extremely volatile. Oil and natural gas prices hit historic high levels in recent years and during the latter half of fiscal 2008. Beginning in the fourth quarter of fiscal 2008 through the date of this filing, oil and natural gas prices have fallen sharply from their record levels. Natural gas prices for Barnwell, based on quarterly averages during the three years ended June 30, 2009, have ranged from a low of $3.19 per thousand cubic feet (the average price for the current quarter) to a high of $9.70 per thousand cubic feet (the average price for the quarter ended June 30, 2008). Oil prices for Barnwell, based on quarterly averages for the period discussed above, ranged from a low of $35.20 per barrel (the average price for
In the three and nine months ended June 30, 2009, Barnwell recorded non-cash reductions of the carrying value of oil and natural gas properties of $4,260,000 (approximately $3,000,000 net of income taxes) and $26,348,000 (approximately $18,556,000 net of income taxes), respectively. The reductions were primarily due to a significant decline in the price of natural gas. At June 30, 2009, natural gas prices declined even further from March 31, 2009 prices. This decrease was partially offset by an increase in the price for oil and to a lesser extent an increase in the price for natural gas liquids for the same period.
For the three months ended June 30, 2009, Barnwell reported a net loss totaling $3,235,000, a $6,768,000 decrease from net earnings of $3,533,000 for the three months ended June 30, 2008. This decrease was largely attributable to the following items:
For the nine months ended June 30, 2009, Barnwell reported a net loss totaling $19,808,000, a $28,345,000 decrease from net earnings of $8,537,000 for the nine months ended June 30, 2008. This decrease was largely due to the following items:
The average exchange rate of the Canadian dollar to the U.S. dollar decreased 13% and 17% in the three and nine months ended June 30, 2009, respectively, as compared to the same periods in the prior year, and the exchange rate of the Canadian dollar to the U.S. dollar increased 8% and decreased 9% at June 30, 2009 as compared to March 31, 2009 and September 30, 2008, respectively. 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 losses, respectively. Other comprehensive income and losses are not included in net (loss) earnings. The other comprehensive income due to foreign currency translation adjustments, net of taxes, for the three months ended June 30, 2009 was $2,850,000, a $2,513,000 increase from the $337,000 other comprehensive income due to foreign currency translation adjustments, net of taxes, for the same period in the prior year. The other comprehensive loss due to foreign currency translation adjustments, net of taxes, for the nine months ended June 30, 2009 was $3,807,000, a $2,970,000 increase from the $837,000 other comprehensive loss due to foreign currency translation adjustments, net of taxes, for the same period in the prior year.
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