Barnwell Industries, Inc. Announces Sale of its Water Drilling Subsidiary for $1,050,000
Barnwell Industries (NYSE American: BRN) has announced the sale of its wholly owned subsidiary, Water Resources International, for $1,050,000. The water drilling subsidiary, which generated revenues of approximately $3,162,000 for the trailing-twelve-months ended December 31, 2024, specialized in deep drilling and well pumping services in Hawaii.
The strategic divestment aligns with Barnwell's plan to streamline operations and focus on its oil and natural gas business. The proceeds will be used for general corporate purposes, with emphasis on reinvesting in oil and gas operations. The company plans to reduce general and administrative expenses by transitioning personnel to Calgary and reducing its Hawaii presence.
The transaction aims to simplify Barnwell's corporate structure and equity story, allowing investors to focus on opportunities in the oil and natural gas sector. The company maintains a strong financial position with no bank debt.
Barnwell Industries (NYSE American: BRN) ha annunciato la vendita della sua controllata interamente posseduta, Water Resources International, per 1.050.000 dollari. La controllata per la perforazione dell'acqua, che ha generato ricavi di circa 3.162.000 dollari nei dodici mesi terminati il 31 dicembre 2024, si è specializzata in servizi di perforazione profonda e pompaggio di pozzi alle Hawaii.
Il disinvestimento strategico si allinea con il piano di Barnwell di semplificare le operazioni e concentrarsi sul suo business di petrolio e gas naturale. I proventi saranno utilizzati per scopi aziendali generali, con un'enfasi sul reinvestimento nelle operazioni di petrolio e gas. L'azienda prevede di ridurre le spese generali e amministrative trasferendo il personale a Calgary e riducendo la sua presenza alle Hawaii.
La transazione mira a semplificare la struttura aziendale e la narrativa patrimoniale di Barnwell, consentendo agli investitori di concentrarsi sulle opportunità nel settore del petrolio e del gas naturale. L'azienda mantiene una solida posizione finanziaria senza debiti bancari.
Barnwell Industries (NYSE American: BRN) ha anunciado la venta de su subsidiaria de propiedad total, Water Resources International, por 1.050.000 dólares. La subsidiaria de perforación de agua, que generó ingresos de aproximadamente 3.162.000 dólares durante los últimos doce meses que terminaron el 31 de diciembre de 2024, se especializó en servicios de perforación profunda y bombeo de pozos en Hawái.
La desinversión estratégica se alinea con el plan de Barnwell para simplificar las operaciones y centrarse en su negocio de petróleo y gas natural. Los ingresos se utilizarán para fines corporativos generales, con énfasis en reinvertir en operaciones de petróleo y gas. La empresa planea reducir los gastos generales y administrativos trasladando personal a Calgary y reduciendo su presencia en Hawái.
La transacción tiene como objetivo simplificar la estructura corporativa y la narrativa de capital de Barnwell, permitiendo a los inversores centrarse en las oportunidades en el sector del petróleo y el gas natural. La empresa mantiene una sólida posición financiera sin deudas bancarias.
반웰 산업(Barnwell Industries) (NYSE American: BRN)은 완전 소유 자회사인 워터 리소스 인터내셔널(Water Resources International)을 1,050,000달러에 매각한다고 발표했습니다. 이 물 굴착 자회사는 2024년 12월 31일로 종료된 12개월 동안 약 3,162,000달러의 수익을 창출하였으며, 하와이에서 깊은 굴착 및 우물 펌핑 서비스에 특화되어 있습니다.
이 전략적 매각은 반웰의 운영을 간소화하고 석유 및 천연가스 사업에 집중하려는 계획과 일치합니다. 수익금은 일반 기업 목적에 사용되며, 석유 및 가스 운영에 재투자하는 데 중점을 둡니다. 회사는 캘거리로 인력을 이전하고 하와이의 존재를 줄여 일반 및 관리 비용을 줄일 계획입니다.
이번 거래는 반웰의 기업 구조와 자본 이야기를 간소화하여 투자자들이 석유 및 천연가스 분야의 기회에 집중할 수 있도록 하는 것을 목표로 합니다. 회사는 은행 부채가 없는 강력한 재무 상태를 유지하고 있습니다.
Barnwell Industries (NYSE American: BRN) a annoncé la vente de sa filiale entièrement détenue, Water Resources International, pour 1 050 000 dollars. La filiale de forage d'eau, qui a généré des revenus d'environ 3 162 000 dollars pour les douze mois se terminant le 31 décembre 2024, s'est spécialisée dans les services de forage profond et de pompage de puits à Hawaï.
Ce désinvestissement stratégique s'inscrit dans le plan de Barnwell de rationaliser ses opérations et de se concentrer sur son activité de pétrole et de gaz naturel. Les produits seront utilisés à des fins d'entreprise générales, avec un accent sur le réinvestissement dans les opérations pétrolières et gazières. L'entreprise prévoit de réduire les frais généraux et administratifs en transférant du personnel à Calgary et en réduisant sa présence à Hawaï.
La transaction vise à simplifier la structure d'entreprise et l'histoire de l'équité de Barnwell, permettant aux investisseurs de se concentrer sur les opportunités dans le secteur du pétrole et du gaz naturel. L'entreprise maintient une solide position financière sans dettes bancaires.
Barnwell Industries (NYSE American: BRN) hat den Verkauf seiner hundertprozentigen Tochtergesellschaft, Water Resources International, für 1.050.000 Dollar bekannt gegeben. Die Tochtergesellschaft für Wasserbohrungen, die in den letzten zwölf Monaten bis zum 31. Dezember 2024 Einnahmen von etwa 3.162.000 Dollar erzielt hat, ist auf Tiefbohrungen und Brunnenpumpdienste in Hawaii spezialisiert.
Die strategische Desinvestition entspricht dem Plan von Barnwell, die Abläufe zu straffen und sich auf das Öl- und Erdgasgeschäft zu konzentrieren. Die Erlöse werden für allgemeine Unternehmenszwecke verwendet, mit dem Schwerpunkt auf Reinvestitionen in Öl- und Gasoperationen. Das Unternehmen plant, die allgemeinen und administrativen Kosten zu senken, indem es Personal nach Calgary verlagert und seine Präsenz in Hawaii reduziert.
Die Transaktion zielt darauf ab, die Unternehmensstruktur und die Eigenkapitalgeschichte von Barnwell zu vereinfachen, damit Investoren sich auf die Möglichkeiten im Öl- und Erdgassektor konzentrieren können. Das Unternehmen hält eine starke Finanzposition ohne Bankverbindlichkeiten.
- Sale proceeds of $1,050,000 strengthen company's financial position
- Company maintains debt-free balance sheet
- Expected reduction in general and administrative expenses
- Strategic focus on potentially higher-return oil and gas operations
- Loss of $3.16M annual revenue stream from water drilling business
- Reduction in business diversification by exiting water drilling segment
Insights
Barnwell's $1.05 million sale of Water Resources represents a strategic pivot worth examining closely. The divested water drilling business generated
This low multiple suggests either challenging profitability metrics for the water drilling unit or a strategic urgency to streamline operations. For a micro-cap company with a
The strategic benefits appear threefold: 1) Operational focus on presumably higher-margin oil and gas assets, 2) Reduced administrative overhead through personnel relocations and Hawaii footprint reduction, and 3) Simplified corporate structure with potential public company cost savings.
Notably, Barnwell reports no bank debt, indicating balance sheet flexibility. The proceeds, while modest, provide additional capital for reinvestment in core operations without diluting shareholders or increasing leverage.
This divestiture essentially transforms Barnwell into a more focused oil and gas play, which could appeal to energy-sector investors seeking pure-play exposure. However, this concentration also increases the company's sensitivity to energy price volatility compared to its previously more diversified business model.
This divestiture signals Barnwell's strategic recommitment to its oil and natural gas assets at a critical time in the energy sector. By shedding its water drilling subsidiary, which operated in the geographically isolated Hawaiian market, the company is making a calculated bet on its hydrocarbon assets.
The transaction economics reveal important insights. The
The planned relocation of personnel to Calgary - a major North American energy hub - indicates Barnwell is positioning itself closer to industry expertise, capital markets, and operational resources specific to oil and gas development. This geographical shift should create operational efficiencies and potentially improve access to industry partnerships.
For Barnwell's shareholders, this move transforms the investment thesis from a conglomerate with disparate business lines to a more concentrated energy play. While this increases exposure to energy commodity price fluctuations, it also potentially creates a clearer path to value creation through operational focus and streamlined corporate overhead.
The absence of debt provides important financial flexibility as the company navigates this transition and seeks growth opportunities in its core business.
Sale Will Streamline Parent Company Operations to Focus on Oil and Natural Gas Business
HONOLULU, March 17, 2025 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) (“Barnwell” or the “Company”) today announced the sale of its wholly owned subsidiary, Water Resources International, Inc. (“Water Resources”), a deep drilling and well pumping specialist in the exploration and development of groundwater resources for government, commercial and private clients in Hawaii, for
Strategic Rationale
This transaction represents a further step in Barnwell’s plan for streamlining its holding company operations, simplifying its corporate and accounting structure. This transaction will allow Barnwell’s Board to proceed with its plans to meaningfully decrease general and administrative expenses and public company costs, including implementing such steps as transitioning personnel to Calgary or elsewhere, reducing the Company’s legacy footprint in Hawaii.
The sale of Water Resources simplifies the equity story for Barnwell as investors will be able to focus on the significant opportunities the Company has identified in its oil and natural gas business. The combination of the proceeds from the sale of Water Resources and anticipated holding company savings also further improves Barnwell’s financial position and balance sheet, which has no bank debt.
Management Commentary
Mr. Craig D. Hopkins, Chief Executive Officer of Barnwell, commented, “The sale of Water Resources was an important strategic objective set by the Board of Directors that took significant time and effort to achieve. I am pleased that the current management team was able work collaboratively to deliver on this important initiative to streamline our business, reduce fixed cost, and focus on higher return opportunities.”
Forward-Looking Statements
The information contained in this press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. Forward-looking statements include phrases such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates,” “assumes,” “projects,” “may,” “will,” “will be,” “should,” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that might cause actual results to differ materially from Barnwell’s expectations are set forth in the “Forward-Looking Statements,” “Risk Factors” and other sections of Barnwell’s annual report on Form 10-K for the last fiscal year and Barnwell’s other filings with the Securities and Exchange Commission. Investors should not place undue reliance on the forward-looking statements contained in this press release, as they speak only as of the date of this press release, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.
CONTACT:
Craig D. Hopkins
Chief Executive Officer and President
Phone: (403) 531-1560
Email: info@bocl.ca
Russell M. Gifford
Executive Vice President and Chief Financial Officer
Phone: (808) 531-8400
Email: rmg@brninc.com
FAQ
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