Recent Updates — BRN
Barnwell Industries posted supplemental questions and answers regarding its previously announced agreement to sell its Canadian oil and natural gas business. The transaction involves a base purchase price of C$9 million, comprising C$4 million in cash and a 5% gross overriding royalty valued at C$5 million. The buyer has placed a C$1 million deposit in escrow. Barnwell retains the royalty interest through a subsidiary and continues to operate the business until closing. The deal remains subject to shareholder approval and customary closing conditions. Barnwell Industries is an independent oil and natural gas exploration and production company.
Barnwell Industries has entered into a definitive agreement to sell its Canadian oil and natural gas business to 2798913 Alberta Ltd. for a base purchase price of C$9 million, consisting of C$4 million in cash and a 5% gross overriding royalty valued at C$5 million. The transaction requires shareholder approval and is expected to close by January 18, 2027, subject to customary conditions including governmental approvals. Barnwell will retain excess cash and near-cash assets while transferring future site restoration obligations to the buyer. This sale marks a key step in the company's strategic transformation to simplify operations and increase financial flexibility.
The Board of Directors approved the termination of the company's qualified defined benefit pension plan, effective around November 30, 2026. The company intends to satisfy all benefit obligations by purchasing irrevocable annuity commitments from a creditworthy insurer. As of September 30, 2026, plan assets totaled approximately $12.8 million against an estimated termination liability of $7.3 million and supplemental executive retirement plan obligations of $1.8 million. This results in an estimated net surplus of $3.7 million before administrative costs, taxes, and transaction fees. The company anticipates the reversion of these funds to occur in December 2026 for general corporate purposes. Barnwell Industries operates in the oil and gas sector, focusing on the acquisition, development, and production of hydrocarbon assets.
Barnwell Industries completed the sale of its remaining Hawaii development interests on September 15, 2026, for a gross purchase price of $1.77 million in cash. Net consideration to the company was approximately $1.54 million, plus pre-closing distributions of $0.14 million, totaling $1.7 million in cash receipts. The transaction involved selling limited and general partner interests in KKM Makai LLLP and KD Kona 2013 LLLP, along with project rights at Ka‘upulehu on the Island of Hawaii. This exit completes the company's divestiture from known Hawaii real-estate-related interests, allowing for the administrative winding up of related subsidiaries. Barnwell Industries is a diversified holding company focused on energy assets and strategic capital allocation.
Barnwell Industries reported third-quarter fiscal results ending June 30, 2026, showing improved sequential performance with revenue rising to $3.38 million from $2.54 million and net loss narrowing to $403,000 from $1.12 million. Net loss attributable to shareholders decreased to $440,000 ($0.03 per share) compared to $1.15 million in the prior quarter, driven by a 9% increase in oil and gas production to 82,000 barrels of equivalent and higher pricing. The company generated positive Adjusted EBITDA of $425,000 versus negative $369,000 previously, while maintaining a debt-free balance sheet with $4.47 million in cash. Additionally, the shareholder rights plan expired on July 29, 2026, and management announced an agreement to sell its remaining Hawaii real estate interests for approximately $1.55 million in cash. Barnwell Industries operates in the oil and gas exploration and production sector while evaluating strategic transformational opportunities.
Barnwell Industries announced the entry into a Purchase and Sale Agreement to sell its remaining Hawaii development interests for $1.77 million in cash, with net proceeds estimated at approximately $1.5 million plus an additional $0.1 million distribution. The transaction involves selling partnership interests in KKM Makai, LLLP and KD Kona 2013 LLLP, along with related project rights, to David Johnston. Closing is expected by September 15, 2026, subject to customary conditions. This sale marks a complete exit from the company's Hawaii real-estate-related interests, allowing for the winding up of subsidiaries and redeployment of capital toward higher-return opportunities in its energy and related asset operations.