BARNWELL INDUSTRIES INCBRN

BARNWELL INDUSTRIES INC Segments Disclosure

10-KFiled Dec 23, 20252 min read
SEGMENT AND GEOGRAPHIC INFORMATION
 
As disclosed in Note 3 “Discontinued Operations,” on March 14, 2025, the Company completed the sale of Water Resources, which represented the Company’s contract drilling segment. The financial results of the Company’s contract drilling business has been presented as discontinued operations and therefore is excluded from segment reporting. Accordingly, Barnwell’s continuing operations include the following two principal business segments:

Oil and Natural Gas Segment - Barnwell engages in oil and natural gas development, production, acquisitions and sales in Canada and in the U.S.

Land Investment Segment - Barnwell owns leasehold land interests in Hawaii.

The Company’s Chief Operating Decision Maker is the Chief Executive Officer, who utilizes segment revenues and expenses and segment operating profit or loss to assess performance and allocate resources to each segment. General and administrative expenses are reviewed on a consolidated basis.
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.
 Year ended September 30,
 20252024
Revenues:  
Oil and natural gas$13,563,000 $17,396,000 
Land investment— 500,000 
Other80,000 91,000 
Total before interest income
13,643,000 17,987,000 
Interest income54,000 88,000 
Total revenues$13,697,000 $18,075,000 
Cost and expenses:
Oil and natural gas$8,966,000 $9,849,000 
Depletion, depreciation, and amortization:  
Oil and natural gas$3,144,000 $4,947,000 
Other2,000 3,000 
Total depletion, depreciation, and amortization$3,146,000 $4,950,000 
Impairment:  
Oil and natural gas$865,000 $2,885,000 
Operating profit (loss) (before general and administrative expenses):  
Oil and natural gas$588,000 $(285,000)
Land investment— 500,000 
Other78,000 88,000 
Loss on sale of assets(636,000)— 
Total operating profit30,000 303,000 
Equity in income of affiliates:  
Land investment— 1,071,000 
General and administrative expenses(6,937,000)(5,130,000)
Foreign currency (loss) gain(192,000)10,000 
Interest expense(7,000)— 
Interest income54,000 88,000 
Loss from continuing operations before income taxes$(7,052,000)$(3,658,000)

Capital Expenditures:
 Year ended September 30,
 20252024
Oil and natural gas$254,000 $4,228,000 
Other— — 
Total$254,000 $4,228,000 
    Oil and natural gas capital expenditures include acquisitions as well as changes to capitalized asset retirement obligations, including revisions of asset retirement obligations (see Note 8 for additional details).  
Assets By Segment:
 September 30,
 20252024
Oil and natural gas (1)
Canada
$11,118,000 $15,218,000 
United States
— 4,190,000 
Other:  
Cash and cash equivalents2,886,000 4,285,000 
Asset for retirement benefits
5,928,000 4,899,000 
Corporate and other880,000 260,000 
Total$20,812,000 $28,852,000 
______________
 
(1)          Primarily located in the province of Alberta, Canada.
 
Long-Lived Assets By Geographic Area:
 September 30,
 20252024
United States$5,965,000 $8,932,000 
Canada9,617,000 12,572,000 
Total$15,582,000 $21,504,000 
 
Revenue By Geographic Area:
 Year ended September 30,
 20252024
United States$1,172,000 $2,803,000 
Canada12,471,000 15,184,000 
Total (before interest income)$13,643,000 $17,987,000 

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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