Barnwell Industries Posts $1.4M Loss as Oil Revenue Falls 33% in Q1 2026
Barnwell Industries (NYSE American: BZH), an oil and natural gas producer, reported a net loss of $1.4 million for the three months ended December 31, 2025. Total revenue fell 30% to $2.7 million from $3.9 million in the prior-year quarter.
Barnwell Industries (NYSE American: BZH), an oil and natural gas producer operating primarily in Canada, reported a net loss of $1.4 million for the three months ended December 31, 2025, compared with a net loss of $1.9 million in the same period a year earlier. The company posted a loss of $0.13 per share, an improvement from a loss of $0.19 per share in the prior-year quarter. Read more earnings reports.
Total revenue dropped 30% to $2.7 million from $3.9 million in the three months ended December 31, 2024. Oil and natural gas revenue fell 33% to $2.6 million from $3.9 million, driven by lower production volumes and commodity prices. Oil revenue declined to $1.9 million from $3.1 million, while natural gas revenue rose to $471,000 from $349,000.
Operating expenses decreased to $4.2 million from $5.5 million in the prior-year quarter. Oil and natural gas operating costs fell to $2.1 million from $2.5 million. General and administrative expenses climbed 39% to $1.6 million from $1.2 million.
The company recorded depletion, depreciation, and amortization of $592,000, down from $904,000 a year earlier. The prior-year quarter included a $613,000 impairment charge that did not recur in the current period.
Balance Sheet and Cash Flow
Barnwell raised $2.4 million through a stock issuance during the quarter, net of costs. The company issued 2.2 million new shares, increasing total shares outstanding to 12.5 million from 10.1 million at September 30, 2025. Cash and cash equivalents stood at $3.6 million at December 31, 2025, up from $2.9 million three months earlier.
Cash used in operating activities from continuing operations totaled $1.8 million for the quarter, compared with $552,000 used in the prior-year period. The company paid $411,000 for asset retirement obligations during the quarter, up from $101,000 a year earlier.
Total assets increased to $21.5 million at December 31, 2025, from $20.8 million at September 30, 2025. Total equity rose to $8.2 million from $7.0 million, driven by the stock issuance.
Discontinued Operations
The prior-year quarter included a $319,000 loss from discontinued operations related to a contract drilling segment. No such operations existed in the current period.
Key Financial Metrics
| Metric | Q1 FY2026 | Q1 FY2025 |
|---|---|---|
| Total Revenue | $2,746,000 | $3,934,000 |
| Oil & Gas Revenue | $2,630,000 | $3,897,000 |
| Operating Expenses | $4,232,000 | $5,527,000 |
| Net Loss (Continuing Ops) | ($1,412,000) | ($1,600,000) |
| Net Loss (Total) | ($1,412,000) | ($1,919,000) |
| Loss Per Share | ($0.13) | ($0.19) |
| Cash (End of Period) | $3,622,000 | $1,957,000 |
The company operates oil and natural gas properties primarily in Canada, with total proved properties valued at $76.0 million before accumulated depletion of $67.4 million. Asset retirement obligations totaled $8.0 million at December 31, 2025.