Barnwell Industries, Inc. reported a net loss of $7.1 million for the fiscal year ending September 30, 2025, a significant increase from the $5.3 million loss recorded in the previous year. The company's revenues from continuing operations decreased to $13.7 million, down from $18.1 million in fiscal 2024, primarily due to a decline in oil and natural gas production and lower commodity prices. The average price for oil fell by 9% to $60.49 per barrel, while natural gas prices decreased by 10% to $1.27 per Mcf. The total production of oil, natural gas, and natural gas liquids also saw a decline of 18%, 14%, and 13%, respectively, compared to the prior year.
In a strategic shift, Barnwell completed the sale of its U.S. oil and natural gas assets on August 8, 2025, for $2.3 million, resulting in a loss of $636,000. This divestiture was part of a broader strategy to focus on its Canadian operations, particularly in the Twining area of Alberta, which now accounts for 86% of the company's production. The company has also been actively divesting legacy assets to reduce operational risk and enhance its focus on core areas. As of September 30, 2025, Barnwell's total proved reserves decreased by 43% to 643,000 Boe, largely due to the sale of U.S. assets and natural production declines.
Operationally, Barnwell's oil and natural gas segment generated an operating profit of $588,000 before general and administrative expenses, a notable improvement from a loss of $285,000 in the previous year. However, general and administrative expenses rose by 35% to $6.9 million, driven by costs associated with a shareholder proxy contest and legal fees. The company employed 18 individuals as of December 1, 2025, reflecting a stable workforce amidst ongoing operational adjustments.
Looking ahead, Barnwell's management expressed cautious optimism, noting that the recent private placement offering raised approximately $2.4 million, alleviating previous concerns about liquidity and the company's ability to continue as a going concern. The company plans to utilize these funds for general corporate purposes and to explore new opportunities in the oil and natural gas sector. However, Barnwell remains vigilant regarding market conditions, particularly the volatility of oil and natural gas prices, which significantly impact its financial performance and operational strategies.
About BARNWELL INDUSTRIES INC
Barnwell Industries, Inc. operates primarily in oil and natural gas exploration, production, and development in Alberta, Canada, Oklahoma, and Texas. It also holds land investments in Hawaii and provides water well drilling and pump installation services there. The company’s core business model focuses on managing oil and gas assets with low decline rates, land interests in Hawaiian real estate, and contract drilling services, targeting energy markets and land developers with a diversified revenue base.
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