DELAWARE | 72-0496921 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1100 Alakea Street, Suite 2900, Honolulu, Hawaii | 96813 | |
(Address of principal executive offices) | (Zip code) |
(808) 531-8400 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer | o | Accelerated filer | o | |
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | x |
Emerging growth company | o |
March 31, 2017 | September 30, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 16,655,000 | $ | 15,550,000 | |||
Restricted cash | 375,000 | 381,000 | |||||
Accounts and other receivables, net of allowance for doubtful accounts of: $56,000 at March 31, 2017; $40,000 at September 30, 2016 | 1,362,000 | 1,228,000 | |||||
Asset held for sale | 1,829,000 | 1,829,000 | |||||
Investment held for sale | 1,192,000 | 1,192,000 | |||||
Other current assets | 1,629,000 | 934,000 | |||||
Total current assets | 23,042,000 | 21,114,000 | |||||
Investments | 2,892,000 | 3,552,000 | |||||
Property and equipment | 76,104,000 | 76,868,000 | |||||
Accumulated depletion, depreciation, and amortization | (69,663,000 | ) | (69,966,000 | ) | |||
Property and equipment, net | 6,441,000 | 6,902,000 | |||||
Total assets | $ | 32,375,000 | $ | 31,568,000 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,789,000 | $ | 1,423,000 | |||
Accrued capital expenditures | 250,000 | 439,000 | |||||
Accrued operating and other expenses | 982,000 | 1,031,000 | |||||
Accrued compensation | 592,000 | 449,000 | |||||
Current portion of asset retirement obligation | 1,007,000 | 1,017,000 | |||||
Other current liabilities | 348,000 | 377,000 | |||||
Total current liabilities | 4,968,000 | 4,736,000 | |||||
Liability for retirement benefits | 6,504,000 | 6,707,000 | |||||
Asset retirement obligation | 5,749,000 | 6,177,000 | |||||
Deferred income taxes | 318,000 | 204,000 | |||||
Total liabilities | 17,539,000 | 17,824,000 | |||||
Commitments and contingencies (Note 12) | |||||||
Equity: | |||||||
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 8,445,060 issued at March 31, 2017 and September 30, 2016 | 4,223,000 | 4,223,000 | |||||
Additional paid-in capital | 1,348,000 | 1,345,000 | |||||
Retained earnings | 14,878,000 | 13,852,000 | |||||
Accumulated other comprehensive loss, net | (3,775,000 | ) | (3,920,000 | ) | |||
Treasury stock, at cost: 167,900 shares at March 31, 2017 and September 30, 2016 | (2,286,000 | ) | (2,286,000 | ) | |||
Total stockholders' equity | 14,388,000 | 13,214,000 | |||||
Non-controlling interests | 448,000 | 530,000 | |||||
Total equity | 14,836,000 | 13,744,000 | |||||
Total liabilities and equity | $ | 32,375,000 | $ | 31,568,000 |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Oil and natural gas | $ | 1,409,000 | $ | 621,000 | $ | 2,550,000 | $ | 1,469,000 | |||||||
Contract drilling | 1,580,000 | 550,000 | 2,986,000 | 1,382,000 | |||||||||||
Sale of interest in leasehold land | — | 330,000 | 1,678,000 | 480,000 | |||||||||||
Gas processing and other | 40,000 | 67,000 | 105,000 | 111,000 | |||||||||||
3,029,000 | 1,568,000 | 7,319,000 | 3,442,000 | ||||||||||||
Costs and expenses: | |||||||||||||||
Oil and natural gas operating | 800,000 | 1,014,000 | 1,646,000 | 1,753,000 | |||||||||||
Contract drilling operating | 850,000 | 618,000 | 2,014,000 | 1,168,000 | |||||||||||
General and administrative | 1,752,000 | 1,574,000 | 3,775,000 | 3,436,000 | |||||||||||
Depletion, depreciation, and amortization | 384,000 | 391,000 | 708,000 | 753,000 | |||||||||||
Interest expense | 2,000 | 33,000 | 6,000 | 66,000 | |||||||||||
3,788,000 | 3,630,000 | 8,149,000 | 7,176,000 | ||||||||||||
Loss before equity in (loss) income of affiliates and income taxes | (759,000 | ) | (2,062,000 | ) | (830,000 | ) | (3,734,000 | ) | |||||||
Equity in (loss) income of affiliates | (170,000 | ) | 253,000 | 2,156,000 | 416,000 | ||||||||||
(Loss) earnings before income taxes | (929,000 | ) | (1,809,000 | ) | 1,326,000 | (3,318,000 | ) | ||||||||
Income tax benefit | (287,000 | ) | (264,000 | ) | (234,000 | ) | (457,000 | ) | |||||||
Net (loss) earnings | (642,000 | ) | (1,545,000 | ) | 1,560,000 | (2,861,000 | ) | ||||||||
Less: Net (loss) earnings attributable to non-controlling interests | (27,000 | ) | 63,000 | 534,000 | 156,000 | ||||||||||
Net (loss) earnings attributable to Barnwell Industries, Inc. | $ | (615,000 | ) | $ | (1,608,000 | ) | $ | 1,026,000 | $ | (3,017,000 | ) | ||||
Basic and diluted net (loss) earnings per common share attributable to Barnwell Industries, Inc. stockholders | $ | (0.07 | ) | $ | (0.19 | ) | $ | 0.12 | $ | (0.36 | ) | ||||
Weighted-average number of common shares outstanding: | |||||||||||||||
Basic and diluted | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net (loss) earnings | $ | (642,000 | ) | $ | (1,545,000 | ) | $ | 1,560,000 | $ | (2,861,000 | ) | ||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments, net of taxes of $0 | 22,000 | 272,000 | (48,000 | ) | 116,000 | ||||||||||
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 96,000 | 38,000 | 193,000 | 77,000 | |||||||||||
Total other comprehensive income | 118,000 | 310,000 | 145,000 | 193,000 | |||||||||||
Total comprehensive (loss) income | (524,000 | ) | (1,235,000 | ) | 1,705,000 | (2,668,000 | ) | ||||||||
Less: Comprehensive (loss) income attributable to non-controlling interests | (27,000 | ) | 63,000 | 534,000 | 156,000 | ||||||||||
Comprehensive (loss) income attributable to Barnwell Industries, Inc. | $ | (497,000 | ) | $ | (1,298,000 | ) | $ | 1,171,000 | $ | (2,824,000 | ) |
Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests | Total Equity | |||||||||||||||||||||||
Balance at September 30, 2015 | 8,277,160 | $ | 4,223,000 | $ | 1,335,000 | $ | 17,467,000 | $ | (2,122,000 | ) | $ | (2,286,000 | ) | $ | 645,000 | $ | 19,262,000 | |||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | — | (86,000 | ) | (86,000 | ) | ||||||||||||||||||||
Net earnings (loss) | — | — | — | (3,017,000 | ) | — | — | 156,000 | (2,861,000 | ) | ||||||||||||||||||||
Share-based compensation | — | — | 5,000 | — | — | — | — | 5,000 | ||||||||||||||||||||||
Foreign currency translation adjustments, net of taxes of $0 | — | — | — | — | 116,000 | — | — | 116,000 | ||||||||||||||||||||||
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | — | — | — | — | 77,000 | — | — | 77,000 | ||||||||||||||||||||||
Balance at March 31, 2016 | 8,277,160 | $ | 4,223,000 | $ | 1,340,000 | $ | 14,450,000 | $ | (1,929,000 | ) | $ | (2,286,000 | ) | $ | 715,000 | $ | 16,513,000 | |||||||||||||
Balance at September 30, 2016 | 8,277,160 | $ | 4,223,000 | $ | 1,345,000 | $ | 13,852,000 | $ | (3,920,000 | ) | $ | (2,286,000 | ) | $ | 530,000 | $ | 13,744,000 | |||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | — | (616,000 | ) | (616,000 | ) | ||||||||||||||||||||
Net earnings | — | — | — | 1,026,000 | — | — | 534,000 | 1,560,000 | ||||||||||||||||||||||
Share-based compensation | — | — | 3,000 | — | — | — | — | 3,000 | ||||||||||||||||||||||
Foreign currency translation adjustments, net of taxes of $0 | — | — | — | — | (48,000 | ) | — | — | (48,000 | ) | ||||||||||||||||||||
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | — | — | — | — | 193,000 | — | — | 193,000 | ||||||||||||||||||||||
Balance at March 31, 2017 | 8,277,160 | $ | 4,223,000 | $ | 1,348,000 | $ | 14,878,000 | $ | (3,775,000 | ) | $ | (2,286,000 | ) | $ | 448,000 | $ | 14,836,000 |
Six months ended March 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net earnings (loss) | $ | 1,560,000 | $ | (2,861,000 | ) | ||
Adjustments to reconcile net earnings (loss) to net cash | |||||||
provided by (used in) operating activities: | |||||||
Equity in income of affiliates | (2,156,000 | ) | (416,000 | ) | |||
Depletion, depreciation, and amortization | 708,000 | 753,000 | |||||
Distribution of income from equity investees | 2,164,000 | — | |||||
Retirement benefits expense | 345,000 | 265,000 | |||||
Accretion of asset retirement obligation | 213,000 | 226,000 | |||||
Deferred income tax expense (benefit) | 114,000 | (89,000 | ) | ||||
Asset retirement obligation payments | (480,000 | ) | (125,000 | ) | |||
Share-based compensation expense (benefit) | 45,000 | (23,000 | ) | ||||
Retirement plan contributions | (355,000 | ) | (353,000 | ) | |||
Sale of interest in leasehold land, net of fees paid | (1,418,000 | ) | (413,000 | ) | |||
Decrease from changes in current assets and liabilities | (424,000 | ) | (1,571,000 | ) | |||
Net cash provided by (used in) operating activities | 316,000 | (4,607,000 | ) | ||||
Cash flows from investing activities: | |||||||
Distribution from equity investees in excess of earnings | 652,000 | — | |||||
Proceeds from sale of interest in leasehold land, net of fees paid | 1,418,000 | 413,000 | |||||
Decrease in restricted cash | — | 4,957,000 | |||||
Capital expenditures - oil and natural gas | (447,000 | ) | (598,000 | ) | |||
Capital expenditures - all other | (120,000 | ) | (39,000 | ) | |||
Net cash provided by investing activities | 1,503,000 | 4,733,000 | |||||
Cash flows from financing activities: | |||||||
Distributions to non-controlling interests | (616,000 | ) | (86,000 | ) | |||
Decrease in restricted cash | — | 166,000 | |||||
Net cash (used in) provided by financing activities | (616,000 | ) | 80,000 | ||||
Effect of exchange rate changes on cash and cash equivalents | (98,000 | ) | 272,000 | ||||
Net increase in cash and cash equivalents | 1,105,000 | 478,000 | |||||
Cash and cash equivalents at beginning of period | 15,550,000 | 8,471,000 | |||||
Cash and cash equivalents at end of period | $ | 16,655,000 | $ | 8,949,000 |
Three months ended March 31, 2017 | ||||||||||
Net Loss (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
Basic net loss per share | $ | (615,000 | ) | 8,277,160 | $ | (0.07 | ) | |||
Effect of dilutive securities - | ||||||||||
common stock options | — | — | ||||||||
Diluted net loss per share | $ | (615,000 | ) | 8,277,160 | $ | (0.07 | ) |
Six months ended March 31, 2017 | ||||||||||
Net Earnings (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
Basic net earnings per share | $ | 1,026,000 | 8,277,160 | $ | 0.12 | |||||
Effect of dilutive securities - | ||||||||||
common stock options | — | — | ||||||||
Diluted net earnings per share | $ | 1,026,000 | 8,277,160 | $ | 0.12 |
Three months ended March 31, 2016 | ||||||||||
Net Loss (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
Basic net loss per share | $ | (1,608,000 | ) | 8,277,160 | $ | (0.19 | ) | |||
Effect of dilutive securities - | ||||||||||
common stock options | — | — | ||||||||
Diluted net loss per share | $ | (1,608,000 | ) | 8,277,160 | $ | (0.19 | ) |
Six months ended March 31, 2016 | ||||||||||
Net Loss (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
Basic net loss per share | $ | (3,017,000 | ) | 8,277,160 | $ | (0.36 | ) | |||
Effect of dilutive securities - | ||||||||||
common stock options | — | — | ||||||||
Diluted net loss per share | $ | (3,017,000 | ) | 8,277,160 | $ | (0.36 | ) |
March 31, 2017 | September 30, 2016 | ||||||
Investment in Kukio Resort land development partnerships | $ | 2,842,000 | $ | 3,502,000 | |||
Investment in leasehold land interest – Lot 4C | 50,000 | 50,000 | |||||
Total investments | $ | 2,892,000 | $ | 3,552,000 |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
Revenue | $ | 1,322,000 | $ | 4,416,000 | |||
Gross profit | $ | 454,000 | $ | 2,097,000 | |||
Net (loss) earnings | $ | (598,000 | ) | $ | 1,168,000 |
Six months ended March 31, | |||||||
2017 | 2016 | ||||||
Revenue | $ | 26,196,000 | $ | 8,119,000 | |||
Gross profit | $ | 11,950,000 | $ | 3,454,000 | |||
Net earnings | $ | 10,062,000 | $ | 1,991,000 |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sale of interest in leasehold land: | |||||||||||||||
Revenues - sale of interest in leasehold land | $ | — | $ | 330,000 | $ | 1,678,000 | $ | 480,000 | |||||||
Fees - included in general and administrative expenses | — | (46,000 | ) | (260,000 | ) | (67,000 | ) | ||||||||
Proceeds from sale of interest in leasehold land, net of fees paid | $ | — | $ | 284,000 | $ | 1,418,000 | $ | 413,000 |
Pension Plan | SERP | Postretirement Medical | |||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | 72,000 | $ | 65,000 | $ | 15,000 | $ | 16,000 | $ | — | $ | — | |||||||||||
Interest cost | 87,000 | 91,000 | 20,000 | 20,000 | 22,000 | 14,000 | |||||||||||||||||
Expected return on plan assets | (141,000 | ) | (112,000 | ) | — | — | — | — | |||||||||||||||
Amortization of prior service cost (credit) | 1,000 | 1,000 | (1,000 | ) | (1,000 | ) | — | — | |||||||||||||||
Amortization of net actuarial loss | 41,000 | 34,000 | 8,000 | 4,000 | 47,000 | — | |||||||||||||||||
Net periodic benefit cost | $ | 60,000 | $ | 79,000 | $ | 42,000 | $ | 39,000 | $ | 69,000 | $ | 14,000 |
Pension Plan | SERP | Postretirement Medical | |||||||||||||||||||||
Six months ended March 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | 144,000 | $ | 130,000 | $ | 31,000 | $ | 32,000 | $ | — | $ | — | |||||||||||
Interest cost | 174,000 | 182,000 | 41,000 | 40,000 | 44,000 | 28,000 | |||||||||||||||||
Expected return on plan assets | (282,000 | ) | (224,000 | ) | — | — | — | — | |||||||||||||||
Amortization of prior service cost (credit) | 2,000 | 2,000 | (2,000 | ) | (2,000 | ) | — | — | |||||||||||||||
Amortization of net actuarial loss | 82,000 | 68,000 | 17,000 | 9,000 | 94,000 | — | |||||||||||||||||
Net periodic benefit cost | $ | 120,000 | $ | 158,000 | $ | 87,000 | $ | 79,000 | $ | 138,000 | $ | 28,000 |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
United States | $ | (651,000 | ) | $ | (682,000 | ) | $ | 1,411,000 | $ | (1,408,000 | ) | ||||
Canada | (251,000 | ) | (1,190,000 | ) | (619,000 | ) | (2,066,000 | ) | |||||||
$ | (902,000 | ) | $ | (1,872,000 | ) | $ | 792,000 | $ | (3,474,000 | ) |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Current | $ | (276,000 | ) | $ | (159,000 | ) | $ | (348,000 | ) | $ | (368,000 | ) | |||
Deferred | (11,000 | ) | (105,000 | ) | 114,000 | (89,000 | ) | ||||||||
$ | (287,000 | ) | $ | (264,000 | ) | $ | (234,000 | ) | $ | (457,000 | ) |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Oil and natural gas | $ | 1,409,000 | $ | 621,000 | $ | 2,550,000 | $ | 1,469,000 | |||||||
Land investment | — | 330,000 | 1,678,000 | 480,000 | |||||||||||
Contract drilling | 1,580,000 | 550,000 | 2,986,000 | 1,382,000 | |||||||||||
Other | 14,000 | 47,000 | 69,000 | 89,000 | |||||||||||
Total before interest income | 3,003,000 | 1,548,000 | 7,283,000 | 3,420,000 | |||||||||||
Interest income | 26,000 | 20,000 | 36,000 | 22,000 | |||||||||||
Total revenues | $ | 3,029,000 | $ | 1,568,000 | $ | 7,319,000 | $ | 3,442,000 | |||||||
Depletion, depreciation, and amortization: | |||||||||||||||
Oil and natural gas | $ | 292,000 | $ | 305,000 | $ | 527,000 | $ | 579,000 | |||||||
Contract drilling | 70,000 | 62,000 | 136,000 | 123,000 | |||||||||||
Other | 22,000 | 24,000 | 45,000 | 51,000 | |||||||||||
Total depletion, depreciation, and amortization | $ | 384,000 | $ | 391,000 | $ | 708,000 | $ | 753,000 | |||||||
Operating profit (loss) (before general and administrative expenses): | |||||||||||||||
Oil and natural gas | $ | 317,000 | $ | (698,000 | ) | $ | 377,000 | $ | (863,000 | ) | |||||
Land investment | — | 330,000 | 1,678,000 | 480,000 | |||||||||||
Contract drilling | 660,000 | (130,000 | ) | 836,000 | 91,000 | ||||||||||
Other | (8,000 | ) | 23,000 | 24,000 | 38,000 | ||||||||||
Total operating profit (loss) | 969,000 | (475,000 | ) | 2,915,000 | (254,000 | ) | |||||||||
Equity in (loss) income of affiliates: | |||||||||||||||
Land investment | (170,000 | ) | 253,000 | 2,156,000 | 416,000 | ||||||||||
General and administrative expenses | (1,752,000 | ) | (1,574,000 | ) | (3,775,000 | ) | (3,436,000 | ) | |||||||
Interest expense | (2,000 | ) | (33,000 | ) | (6,000 | ) | (66,000 | ) | |||||||
Interest income | 26,000 | 20,000 | 36,000 | 22,000 | |||||||||||
(Loss) earnings before income taxes | $ | (929,000 | ) | $ | (1,809,000 | ) | $ | 1,326,000 | $ | (3,318,000 | ) |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Foreign currency translation: | |||||||||||||||
Beginning accumulated foreign currency translation | $ | 836,000 | $ | 663,000 | $ | 906,000 | $ | 819,000 | |||||||
Change in cumulative translation adjustment before reclassifications | 22,000 | 272,000 | (48,000 | ) | 116,000 | ||||||||||
Income taxes | — | — | — | — | |||||||||||
Net current period other comprehensive income (loss) | 22,000 | 272,000 | (48,000 | ) | 116,000 | ||||||||||
Ending accumulated foreign currency translation | 858,000 | 935,000 | 858,000 | 935,000 | |||||||||||
Retirement plans: | |||||||||||||||
Beginning accumulated retirement plans benefit cost | (4,729,000 | ) | (2,902,000 | ) | (4,826,000 | ) | (2,941,000 | ) | |||||||
Amortization of net actuarial loss and prior service cost | 96,000 | 38,000 | 193,000 | 77,000 | |||||||||||
Income taxes | — | — | — | — | |||||||||||
Net current period other comprehensive income | 96,000 | 38,000 | 193,000 | 77,000 | |||||||||||
Ending accumulated retirement plans benefit cost | (4,633,000 | ) | (2,864,000 | ) | (4,633,000 | ) | (2,864,000 | ) | |||||||
Accumulated other comprehensive loss, net of taxes | $ | (3,775,000 | ) | $ | (1,929,000 | ) | $ | (3,775,000 | ) | $ | (1,929,000 | ) |
Six months ended March 31, | |||||||
2017 | 2016 | ||||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the year for: | |||||||
Interest | $ | 5,000 | $ | 64,000 | |||
Income taxes refunded, net | $ | (180,000 | ) | $ | — | ||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Release of restricted cash held in escrow for tax installment | $ | — | $ | 2,000,000 |
• | The right to receive percentage of sales payments from KD Acquisition, LLLP ("KD I") resulting from the sale of single-family residential lots by KD I, within Increment I of the approximately 870 acres of the Kaupulehu Lot 4A area located in the North Kona District of the island of Hawaii. Kaupulehu Developments is entitled to receive payments from KD I based on the following percentages of the gross receipts from KD I’s sales: 10% of such aggregate gross proceeds greater than $100,000,000 up to $300,000,000; and 14% of such aggregate gross proceeds in excess of $300,000,000. Increment I is an area zoned for approximately 80 single-family lots, of which 25 remained to be sold at March 31, 2017, and a beach club on the portion of the property bordering the Pacific Ocean, and is partially developed. |
• | The right to receive percentage of sales payments from KD Acquisition II, LLLP ("KD II") resulting from the sale of lots and/or residential units by KD II, within Increment II of Kaupulehu Lot 4A. Increment II is the remaining portion of the approximately 870-acre property and is zoned for single-family and multi-family residential units and a golf course and clubhouse. Kaupulehu Developments is entitled to receive payments from KD II based on a percentage of the gross proceeds from KD II’s sales ranging from 8% to 10% of the price of improved or unimproved lots or 2.60% to 3.25% of the price of units constructed on a lot, to be determined in the future depending upon a number of variables, including whether the lots are sold prior to improvement. Kaupulehu Developments is also entitled to receive up to $8,000,000 in additional payments after the members of KD II have received distributions equal to the original basis of capital invested in the project. The managing partner of KD II has represented that KD II’s partners are nearing recovery of the original basis of the capital invested in the project, and once that threshold is reached, Kaupulehu Developments would be entitled to receive 50% of any such post-threshold distributions from KD II up to a maximum of $8,000,000. The amount and timing of any such receipts by Kaupulehu Developments cannot be determined at this time as distributions by KD II are solely at the discretion of KD II’s managing partner, who holds the controlling interest in KD II, and as future distributions are also dependent upon the future performance of KD II’s operations. Two ocean front parcels approximately two to three acres in size were developed within Increment II by KD II. At March 31, 2017, both of the parcels have been sold and the remaining acreage within Increment II is not yet under development. |
• | An indirect 19.6% non-controlling ownership interest in the Kukio Resort land development partnerships which is comprised of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP. These entities own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort’s real estate sales office operations. KD Kaupulehu, LLLP, which wholly owns KD I and KD II, is the developer of Kaupulehu Lot 4A Increments I and II, the area in which Barnwell has interests in percentage of sales payments. The partnerships derive income from the sale of residential parcels as well as from commission on real estate sales by the real estate sales office. As of March 31, 2017, 25 lots remained to be sold at Kaupulehu Increment I. |
• | Approximately 1,000 acres of vacant leasehold land zoned conservation in the Kaupulehu Lot 4C area located adjacent to the 870-acre Lot 4A described above. |
• | A $1,015,000 increase in oil and natural gas segment operating results, before income taxes, due primarily to increases in prices for all products; |
• | A $790,000 increase in contract drilling operating results, before income taxes, primarily resulting from increased activity; |
• | A $330,000 decrease in land investment segment operating profit, before income taxes and non-controlling interests’ share of such profits, due to decreased percentage of sales receipts as a result of no lot sales by the Kukio Resort land development partnerships in the current quarter; |
• | A $178,000 increase in general and administrative expenses; and |
• | A $423,000 decrease in equity in income from affiliates as a result of decreased Kukio Resort land development partnerships’ operating results. |
• | A $1,240,000 increase in oil and natural gas segment operating results, before income taxes, due primarily to increases in prices for all products; |
• | A $1,198,000 increase in land investment segment operating profit, before income taxes and non-controlling interests’ share of such profits, due to increased percentage of sales receipts as a result of the Kukio Resort land development partnerships’ sale of a two-acre ocean front parcel in Kaupulehu Increment II for $20,975,000 from which we received an 8% percentage of sale payment; |
• | A $745,000 increase in contract drilling operating results, before income taxes, primarily resulting from increased activity; |
• | A $339,000 increase in general and administrative expenses; and |
• | A $1,740,000 increase in equity in income from affiliates as a result of increased Kukio Resort land development partnerships’ operating results. |
Average Price Per Unit | ||||||||||||||
Three months ended | Increase | |||||||||||||
March 31, | (Decrease) | |||||||||||||
2017 | 2016 | $ | % | |||||||||||
Natural Gas (Mcf)* | $ | 2.24 | $ | 0.93 | $ | 1.31 | 141 | % | ||||||
Oil (Bbls)** | $ | 43.00 | $ | 21.95 | $ | 21.05 | 96 | % | ||||||
Liquids (Bbls)** | $ | 30.00 | $ | 22.00 | $ | 8.00 | 36 | % |
Average Price Per Unit | ||||||||||||||
Six months ended | Increase | |||||||||||||
March 31, | (Decrease) | |||||||||||||
2017 | 2016 | $ | % | |||||||||||
Natural Gas (Mcf)* | $ | 2.27 | $ | 1.33 | $ | 0.94 | 71 | % | ||||||
Oil (Bbls)** | $ | 41.63 | $ | 26.46 | $ | 15.17 | 57 | % | ||||||
Liquids (Bbls)** | $ | 29.65 | $ | 22.22 | $ | 7.43 | 33 | % |
Net Production | |||||||||||
Three months ended | Increase | ||||||||||
March 31, | (Decrease) | ||||||||||
2017 | 2016 | Units | % | ||||||||
Natural Gas (Mcf)* | 99,000 | 120,000 | (21,000 | ) | (18 | %) | |||||
Oil (Bbls)** | 24,000 | 21,000 | 3,000 | 14 | % | ||||||
Liquids (Bbls)** | 1,000 | 1,000 | — | — | % |
Net Production | |||||||||||
Six months ended | Increase | ||||||||||
March 31, | (Decrease) | ||||||||||
2017 | 2016 | Units | % | ||||||||
Natural Gas (Mcf)* | 203,000 | 252,000 | (49,000 | ) | (19 | %) | |||||
Oil (Bbls)** | 45,000 | 39,000 | 6,000 | 15 | % | ||||||
Liquids (Bbls)** | 2,000 | 3,000 | (1,000 | ) | (33 | %) |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sale of interest in leasehold land: | |||||||||||||||
Revenues - sale of interest in leasehold land | $ | — | $ | 330,000 | $ | 1,678,000 | $ | 480,000 | |||||||
Fees - included in general and administrative expenses | — | (46,000 | ) | (260,000 | ) | (67,000 | ) | ||||||||
Proceeds from the sale of interest in leasehold land, net of fees paid | $ | — | $ | 284,000 | $ | 1,418,000 | $ | 413,000 |
Exhibit Number | Description | |
31.1 | Certification of Chief Executive Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Chief Financial Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 | |
32 | Certification Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
BARNWELL INDUSTRIES, INC. | ||
(Registrant) | ||
Date: | May 11, 2017 | /s/ Russell M. Gifford |
Russell M. Gifford | ||
Chief Financial Officer, | ||
Executive Vice President, | ||
Treasurer and Secretary |
Exhibit Number | Description | |
31.1 | Certification of Chief Executive Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Chief Financial Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 | |
32 | Certification Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
1. | I have reviewed this quarterly report on Form 10-Q of Barnwell Industries, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 11, 2017 | /s/ Alexander C. Kinzler |
Alexander C. Kinzler | ||
President, Chief Executive Officer, Chief Operating Officer, General Counsel |
1. | I have reviewed this quarterly report on Form 10-Q of Barnwell Industries, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 11, 2017 | /s/ Russell M. Gifford |
Russell M. Gifford | ||
Executive Vice President, Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | May 11, 2017 | /s/ Alexander C. Kinzler |
Alexander C. Kinzler | ||
Title: President, Chief Executive Officer, Chief Operating Officer, General Counsel | ||
Dated: | May 11, 2017 | /s/ Russell M. Gifford |
Name: Russell M. Gifford | ||
Title: Executive Vice President, Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 08, 2017 |
|
Document and Entity Information | ||
Entity Registrant Name | BARNWELL INDUSTRIES INC | |
Entity Central Index Key | 0000010048 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 8,277,160 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 56 | $ 40 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, authorized shares | 20,000,000 | 20,000,000 |
Common stock, issued shares | 8,445,060 | 8,445,060 |
Treasury stock, shares | 167,900 | 167,900 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) earnings | $ (642) | $ (1,545) | $ 1,560 | $ (2,861) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of taxes of $0 | 22 | 272 | (48) | 116 |
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 | 96 | 38 | 193 | 77 |
Total other comprehensive income | 118 | 310 | 145 | 193 |
Total comprehensive (loss) income | (524) | (1,235) | 1,705 | (2,668) |
Less: Comprehensive (loss) income attributable to non-controlling interests | (27) | 63 | 534 | 156 |
Comprehensive (loss) income attributable to Barnwell Industries, Inc. | $ (497) | $ (1,298) | $ 1,171 | $ (2,824) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
---|---|
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land investment partnership (KD Kona 2013 LLLP) and two 80%-owned joint ventures (Kaupulehu 2007, LLLP and Kaupulehu Investors, LLC). All significant intercompany accounts and transactions have been eliminated. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities (“VIE”) in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars. Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2016 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2016 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2017, results of operations and comprehensive income (loss) for the three and six months ended March 31, 2017 and 2016, and equity and cash flows for the six months ended March 31, 2017 and 2016, have been made. The results of operations for the period ended March 31, 2017 are not necessarily indicative of the operating results for the full year. Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Reclassifications Fees related to percentage of sales payments have been reclassified to general and administrative expenses rather than being presented net with sale of interest in leasehold land revenues for the prior year periods to conform to the current year periods presentation. Significant Accounting Policies There have been no changes to Barnwell’s significant accounting policies as described in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s most recently filed Annual Report on Form 10-K. Recent Accounting Pronouncements In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” which eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to separately classify, present and disclose extraordinary events and transactions. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis," which simplifies the current consolidation guidance and will require companies to reevaluate limited partnerships and similar entities for consolidation. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This amendment was issued to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. This will make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, "Plan Accounting: (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient." This ASU aims to simplify the accounting and presentation of plan accounting. Part I of this ASU requires fully benefit-responsive investment contracts to be measured at contract value instead of the current fair value measurement. Part II simplifies the investment disclosure requirements for employee benefit plans. Part III provides an alternative measurement date for fiscal periods that do not coincide with a month-end date. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." This ASU eliminates the requirement to account for business combination measurement period adjustments retrospectively. Measurement period adjustments will now be recognized prospectively in the reporting period in which the adjustment amount is determined. The nature and amount of any measurement period adjustments recognized during the reporting period must be disclosed, including the value of the adjustment to each current period income statement line item relating to the income effects that would have been recognized in previous periods if the adjustment to provisional amounts were recognized as of the acquisition date. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. |
EARNINGS (LOSS) PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities, which consist of outstanding stock options. Potentially dilutive shares are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive. Options to purchase 621,250 shares of common stock were excluded from the computation of diluted shares for the three and six months ended March 31, 2017 and 2016, as their inclusion would have been antidilutive. Reconciliations between net earnings (loss) attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations are detailed in the following tables:
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ASSET HELD FOR SALE |
6 Months Ended |
---|---|
Mar. 31, 2017 | |
Asset held for sale [Abstract] | |
ASSET HELD FOR SALE | ASSET HELD FOR SALE At March 31, 2017, the Company's New York office was listed for sale. Accordingly, the Company designated this property as an asset held for sale and the carrying value in the aggregate amount of $1,829,000 is included in "Asset held for sale" on the Company's Condensed Consolidated Balance Sheets at March 31, 2017 and September 30, 2016. On May 2, 2017, the office was sold for approximately $2,370,000, net of related costs, resulting in an estimated gain of $540,000, which will be recognized in the quarter ending June 30, 2017. |
INVESTMENT HELD FOR SALE |
6 Months Ended |
---|---|
Mar. 31, 2017 | |
INVESTMENT HELD FOR SALE [Abstract] | |
INVESTMENT HELD FOR SALE | INVESTMENT HELD FOR SALE At March 31, 2017, Kaupulehu 2007, LLLP owned one residential lot available for sale in the Lot 4A Increment I area located in the North Kona District of the island of Hawaii, north of Hualalai Resort at Historic Ka`upulehu, between the Queen Kaahumanu Highway and the Pacific Ocean. |
INVESTMENTS |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS A summary of Barnwell’s investments is as follows:
Investment in Kukio Resort land development partnerships On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP and KKM Makai, LLLP, and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP for $5,140,000. These entities own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort’s real estate sales office operations. KD Kaupulehu, LLLP, which is comprised of KD Acquisition, LLLP (“KD I”) and KD Acquisition II, LLLP (“KD II”), is the developer of Kaupulehu Lot 4A Increments I and II, the area in which Barnwell has interests in percentage of sales payments. Barnwell’s investment in these entities is accounted for using the equity method of accounting. The partnerships derive income from the sale of residential parcels as well as from commission on real estate sales by the real estate sales office. As of March 31, 2017, 25 lots remained to be sold at Kaupulehu Increment I. During the six months ended March 31, 2017, Barnwell received net cash distributions in the amount of $2,509,000 from the Kukio Resort land development partnerships after distributing $307,000 to minority interests. Barnwell's share of the loss of its equity affiliates was $170,000 for the three months ended March 31, 2017. Equity in income of affiliates was $2,156,000 for the six months ended March 31, 2017 and $253,000 and $416,000 for the three and six months ended March 31, 2016, respectively. The equity in the underlying net assets of the Kukio Resort land development partnerships exceeds the carrying value of the investment in affiliates by approximately $331,000 as of March 31, 2017, which is attributable to differences in the value of capitalized development costs and a note receivable. The basis difference will be recognized as the partnerships sell lots and recognize the associated costs and sell memberships for the Kuki`o Golf and Beach Club for which the receivable relates. The basis difference adjustments of $1,000 and $20,000 for the three and six months ended March 31, 2017, respectively, and $4,000 and $17,000 for the three and six months ended March 31, 2016, respectively, increased equity in income of affiliates. Barnwell, as well as KD I, KD II and certain other owners of the partnerships, have jointly and severally executed a surety indemnification agreement. Bonds issued by the surety at March 31, 2017 totaled approximately $325,000 and relate to certain construction contracts of KD I. If any such performance bonds are called, we may be obligated to reimburse the issuer of the performance bond as Barnwell, KD I and certain other partners are jointly and severally liable, however we believe that it is remote that a material amount of any currently outstanding performance bonds will be called. Performance bonds do not have stated expiration dates. Rather, the performance bonds are released as the underlying performance is completed. As of March 31, 2017, Barnwell’s maximum loss exposure as a result of its investment in the Kukio Resort land development partnerships was approximately $3,167,000, consisting of the carrying value of the investment of $2,842,000 and $325,000 from the surety indemnification agreement of which we are jointly and severally liable. Summarized financial information for the Kukio Resort land development partnerships is as follows:
Percentage of sales payments Kaupulehu Developments has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within approximately 870 acres of the Kaupulehu Lot 4A area by KD I and KD II in two increments (“Increment I” and “Increment II”) (see Note 14). The following table summarizes the percentage of sales payment proceeds received from KD I and KD II.
Investment in leasehold land interest - Lot 4C Kaupulehu Developments holds an interest in an area of approximately 1,000 acres of vacant leasehold land zoned conservation located adjacent to Lot 4A. The lease terminates in December 2025. |
LONG-TERM DEBT |
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Mar. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Canadian revolving demand facility In June 2016, Barnwell entered into an agreement with Royal Bank of Canada for a revolving demand facility in the amount of $500,000 Canadian dollars, or U.S. $375,000 at the March 31, 2017 exchange rate. Borrowings under this facility were $0 at March 31, 2017 and September 30, 2016, and issued letters of credit were $33,000 at March 31, 2017. The obligations under the credit facility were secured by a $500,000 Canadian dollar guaranteed investment certificate pledged to Royal Bank of Canada, which is classified as "Restricted cash" on the accompanying Condensed Consolidated Balance Sheets at U.S. $375,000 and U.S. $381,000 at the March 31, 2017 and September 30, 2016 exchange rates, respectively. In April 2017, the revolving demand facility was canceled and the guaranteed investment certificate matured and the funds were reclassified to cash. |
RETIREMENT PLANS |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS | RETIREMENT PLANS Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Employee Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees. The following tables detail the components of net periodic benefit cost for Barnwell’s retirement plans:
Barnwell contributed $350,000 to the Pension Plan during the six months ended March 31, 2017 and estimates that it will make further contributions of approximately $650,000 during the remainder of fiscal 2017. In January 2017, the Postretirement Medical plan commenced payments for retiree medical insurance benefits. The SERP and Postretirement Medical plans are unfunded, and Barnwell funds benefits when payments are made. Expected payments under the Postretirement Medical plan and the SERP for fiscal 2017 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests, are as follows:
The components of the income tax benefit are as follows:
Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, and essentially all deferred tax assets, net of relevant offsetting deferred tax liabilities, are not estimated to have a future benefit as tax credits or deductions. In addition, income from our non-controlling interest in the Kukio Resort land development partnerships is treated as non-unitary for state of Hawaii unitary filing purposes, thus unitary Hawaii losses provide limited sheltering of such non-unitary income. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil and natural gas in Canada (oil and natural gas); 2) investing in land interests in Hawaii (land investment); and 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling). The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in each component of accumulated other comprehensive income (loss) were as follows:
The amortization of accumulated other comprehensive loss components for the retirement plans are included in the computation of net periodic benefit cost which is a component of "General and administrative" expenses on the accompanying Condensed Consolidated Statements of Operations (see Note 7 for additional details). |
FAIR VALUE MEASUREMENTS |
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Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments. |
COMMITMENTS AND CONTINGENCIES |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental Matters In February 2016, a gas migration was detected at one of our previously abandoned non-operated wells in Alberta, Canada. Barnwell’s working interest in the well is 50% and as non-operator we have no control over the actual cost or timing of the remediation. In February 2016 we accrued approximately $200,000 for estimated probable environmental remediation costs, which was the balance of the accrual at September 30, 2016. However, based on recent information from the operator of the well, the cost to remediate will be less than originally estimated and Barnwell reduced the liability to approximately $19,000 at March 31, 2017, which has not been discounted and was accrued in "Accrued operating and other expenses" on the Condensed Consolidated Balance Sheets. Because of the inherent uncertainties associated with environmental assessment and remediation activities, future expenses to remediate the currently identified site, and sites identified in the future, if any, could be incurred. Guarantee See Note 5 for a discussion of Barnwell’s guarantee of the Kukio Resort land development partnership’s performance bonds. |
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS | INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Capital expenditure accruals related to oil and natural gas exploration and development decreased $183,000 and $69,000 during the six months ended March 31, 2017 and 2016, respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations decreased $62,000 and increased $123,000 during the six months ended March 31, 2017 and 2016, respectively. |
RELATED PARTY TRANSACTIONS |
6 Months Ended |
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Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Kaupulehu Developments is entitled to receive a percentage of the gross receipts from the sales of lots in Increment I from KD I and the sales of lots and/or residential units in Increment II from KD II; KD I and KD II are part of the Kukio Resort land development partnerships in which Barnwell holds an indirect 19.6% non-controlling ownership interest accounted for under the equity method of investment. The percentage payments are part of transactions which took place in 2004 and 2006 where Kaupulehu Developments sold its leasehold interests in Increment I and Increment II to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort land development partnerships. During the six months ended March 31, 2017, Barnwell received $1,678,000 in percentage of sales payments from KD II from the sale of one lot within Increment II. During the six months ended March 31, 2016, Barnwell received $480,000 in percentage of sales payments from KD I from the sale of two lots within Phase II of Increment I. |
SUBSEQUENT EVENTS |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENT On May 2, 2017, the Company's New York office was sold for approximately $2,370,000, net of related costs, resulting in an estimated gain of $540,000, which will be recognized in the quarter ending June 30, 2017. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments), a 75%-owned land investment partnership (KD Kona 2013 LLLP) and two 80%-owned joint ventures (Kaupulehu 2007, LLLP and Kaupulehu Investors, LLC). All significant intercompany accounts and transactions have been eliminated. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities (“VIE”) in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2016 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2016 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2017, results of operations and comprehensive income (loss) for the three and six months ended March 31, 2017 and 2016, and equity and cash flows for the six months ended March 31, 2017 and 2016, have been made. The results of operations for the period ended March 31, 2017 are not necessarily indicative of the operating results for the full year. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. |
Reclassifications | Reclassifications Fees related to percentage of sales payments have been reclassified to general and administrative expenses rather than being presented net with sale of interest in leasehold land revenues for the prior year periods to conform to the current year periods presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” which eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to separately classify, present and disclose extraordinary events and transactions. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis," which simplifies the current consolidation guidance and will require companies to reevaluate limited partnerships and similar entities for consolidation. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This amendment was issued to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. This will make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, "Plan Accounting: (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient." This ASU aims to simplify the accounting and presentation of plan accounting. Part I of this ASU requires fully benefit-responsive investment contracts to be measured at contract value instead of the current fair value measurement. Part II simplifies the investment disclosure requirements for employee benefit plans. Part III provides an alternative measurement date for fiscal periods that do not coincide with a month-end date. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." This ASU eliminates the requirement to account for business combination measurement period adjustments retrospectively. Measurement period adjustments will now be recognized prospectively in the reporting period in which the adjustment amount is determined. The nature and amount of any measurement period adjustments recognized during the reporting period must be disclosed, including the value of the adjustment to each current period income statement line item relating to the income effects that would have been recognized in previous periods if the adjustment to provisional amounts were recognized as of the acquisition date. The Company adopted the provisions of this ASU effective October 1, 2016. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements. |
EARNINGS (LOSS) PER COMMON SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations between net earnings (loss) attributable to the entity's stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations | Reconciliations between net earnings (loss) attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net earnings (loss) per share computations are detailed in the following tables:
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INVESTMENTS (Tables) |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of investments | A summary of Barnwell’s investments is as follows:
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Summarized financial information for the land development partnerships | Summarized financial information for the Kukio Resort land development partnerships is as follows:
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Kaupulehu Developments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of percentage of sales payment revenues received | The following table summarizes the percentage of sales payment proceeds received from KD I and KD II.
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RETIREMENT PLANS (Tables) |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost | The following tables detail the components of net periodic benefit cost for Barnwell’s retirement plans:
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INCOME TAXES (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | The components of earnings (loss) before income taxes, after adjusting the earnings (loss) for non-controlling interests, are as follows:
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Schedule of components of the income tax provision (benefit) | The components of the income tax benefit are as follows:
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial information related to reporting segments | The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in each component of accumulated other comprehensive income (loss) | The changes in each component of accumulated other comprehensive income (loss) were as follows:
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INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow information |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) |
6 Months Ended |
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Mar. 31, 2017
venture
| |
Principles of Consolidation | |
Number of 80%-owned joint ventures | 2 |
Kaupulehu Developments | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 77.60% |
KD Kona 2013 LLLP | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 75.00% |
Kaupulehu 2007, LLLP | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 80.00% |
Kaupulehu Investors, LLC | |
Principles of Consolidation | |
Ownership interest in subsidiaries | 80.00% |
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
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Net Earnings (Loss) (Numerator) | ||||
Basic | $ (615) | $ (1,608) | $ 1,026 | $ (3,017) |
Effect of dilutive securities - common stock options | 0 | 0 | 0 | 0 |
Diluted | $ (615) | $ (1,608) | $ 1,026 | $ (3,017) |
Shares (Denominator) | ||||
Basic (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
Effect of dilutive securities - common stock options (in shares) | 0 | 0 | 0 | 0 |
Diluted (in shares) | 8,277,160 | 8,277,160 | 8,277,160 | 8,277,160 |
Per-Share Amount | ||||
Basic net earnings (loss) per share (in dollars per share) | $ (0.07) | $ (0.19) | $ 0.12 | $ (0.36) |
Diluted net earnings (loss) per share (in dollars per share) | $ (0.07) | $ (0.19) | $ 0.12 | $ (0.36) |
Options | ||||
Antidilutive shares of common stock excluded from the computation of diluted shares | ||||
Antidilutive shares excluded from computation of earnings (loss) per share (in shares) | 621,250 | 621,250 |
ASSET HELD FOR SALE (Details) - USD ($) |
May 02, 2017 |
Mar. 31, 2017 |
Sep. 30, 2016 |
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Subsequent Event [Line Items] | |||
Asset held for sale | $ 1,829,000 | $ 1,829,000 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Proceeds from sale of property, plant, and equipment | $ 2,370,000 | ||
Gain (loss) on disposition of property plant equipment | $ 540,000 |
INVESTMENT HELD FOR SALE (Details) |
Mar. 31, 2017
parcel
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Residential Parcel | |
Investment Holdings [Line Items] | |
Number of Real Estate Properties | 1 |
INVESTMENTS - SUMMARY OF INVESTMENTS (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
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Investment Holdings [Line Items] | ||
Investments | $ 2,892 | $ 3,552 |
Investment in Kukio Resort land development partnerships | ||
Investment Holdings [Line Items] | ||
Investments | 2,842 | 3,502 |
Investment in leasehold land interest – Lot 4C | ||
Investment Holdings [Line Items] | ||
Investments | $ 50 | $ 50 |
INVESTMENTS - PERCENTAGE OF SALES PAYMENTS (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017
USD ($)
a
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2017
USD ($)
a
increment
|
Mar. 31, 2016
USD ($)
|
|
Investment Holdings [Line Items] | ||||
Revenues - sale of interest in leasehold land | $ 0 | $ 330 | $ 1,678 | $ 480 |
Kaupulehu Developments | ||||
Investment Holdings [Line Items] | ||||
Area of land (in acres) | a | 870 | 870 | ||
Number of development increments | increment | 2 | |||
Revenues - sale of interest in leasehold land | $ 0 | 330 | $ 1,678 | 480 |
Fees - included in general and administrative expenses | 0 | (46) | (260) | (67) |
Proceeds from sale of interest in leasehold land, net of fees paid | $ 0 | $ 284 | $ 1,418 | $ 413 |
Land Interest | ||||
Investment Holdings [Line Items] | ||||
Area of land (in acres) | a | 1,000 | 1,000 |
LONG-TERM DEBT (Details) CAD in Thousands |
Mar. 31, 2017
CAD
|
Mar. 31, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
---|---|---|---|
Long-term debt | |||
Restricted cash and investments, current | CAD 500 | $ 375,000 | $ 381,000 |
Revolving Demand Facility | |||
Long-term debt | |||
Maximum borrowing capacity | CAD 500 | 375,000 | |
Long-term debt | 0 | $ 0 | |
Letters of credit outstanding, amount | $ 33,000 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests | ||||
United States | $ (651) | $ (682) | $ 1,411 | $ (1,408) |
Canada | (251) | (1,190) | (619) | (2,066) |
Total | (902) | (1,872) | 792 | (3,474) |
Components of the income tax provision (benefit) | ||||
Current | (276) | (159) | (348) | (368) |
Deferred | (11) | (105) | 114 | (89) |
Total | $ (287) | $ (264) | $ (234) | $ (457) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Sep. 30, 2016 |
|
Changes in foreign currency translation | |||||
Beginning accumulated foreign currency translation | $ 836 | $ 663 | $ 906 | $ 819 | |
Change in cumulative translation adjustment before reclassifications | 22 | 272 | (48) | 116 | |
Income taxes | 0 | 0 | 0 | 0 | |
Net current period other comprehensive income (loss) | 22 | 272 | (48) | 116 | |
Ending accumulated foreign currency translation | 858 | 935 | 858 | 935 | |
Changes in retirement plans | |||||
Beginning accumulated retirement plans benefit cost | (4,729) | (2,902) | (4,826) | (2,941) | |
Amortization of net actuarial loss and prior service cost | 96 | 38 | 193 | 77 | |
Income taxes | 0 | 0 | 0 | 0 | |
Net current period other comprehensive income | 96 | 38 | 193 | 77 | |
Ending accumulated retirement plans benefit cost | (4,633) | (2,864) | (4,633) | (2,864) | |
Accumulated other comprehensive loss, net of taxes | $ (3,775) | $ (1,929) | $ (3,775) | $ (1,929) | $ (3,920) |
COMMITMENTS AND CONTINGENCIES (Detail) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Sep. 30, 2016 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Percentage of working interest | 50.00% | |
Loss contingency, accrual | $ 19 | $ 200 |
INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Supplemental disclosure of cash flow information: | ||
Interest | $ 5 | $ 64 |
Income taxes refunded, net | (180) | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Release of restricted cash held in escrow for tax installment | 0 | 2,000 |
Oil and natural gas | ||
Supplemental disclosures of cash flow information: | ||
Increase (decrease) in capital expenditure accruals related to oil and natural gas exploration and development | (183) | (69) |
Increase (decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations | $ (62) | $ 123 |
SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Thousands |
May 02, 2017
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Proceeds from sale of property, plant, and equipment | $ 2,370 |
Gain (loss) on disposition of property plant equipment | $ 540 |
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