Barnwell Industries, Inc. — Third Quarter Ended June 30, 2026 Earnings Summary

Financial Performance

• Reported revenue of $3,379,000 for the quarter ended June 30, 2026, compared to $2,535,000 in the prior quarter (Q2 2026) and $3,192,000 in the same period of the prior year (Q3 2025).
• Consolidated net loss narrowed to $403,000 for the quarter ended June 30, 2026, from $1,116,000 in the prior quarter.
• Net loss attributable to shareholders improved to $440,000 ($0.03 per share) from $1,150,000 ($0.09 per share) in the prior quarter; year-over-year net loss attributable to shareholders was $1,550,000 ($0.15 per share).
• Generated positive Adjusted EBITDA of $425,000 for the quarter, a significant improvement from negative Adjusted EBITDA of $369,000 in the preceding quarter.
• Maintained a debt-free balance sheet with $4,467,000 in cash and cash equivalents and $3,070,000 in working capital at quarter-end.
• General and administrative expenses decreased to $1,409,000 from $1,521,000 in the prior quarter; cash general and administrative expenses declined 8% sequentially to $1,280,000.
• Salaries, wages, and bonuses declined 12% compared to the prior quarter.
• Oil and natural gas operating results increased by $670,000 to $757,000, driven by an $858,000 increase in revenues and a $7,000 decrease in depletion expense, partially offset by a $195,000 increase in operating expenses.
• Recorded a $56,000 foreign currency loss on continuing operations, compared to a $58,000 gain in the prior quarter.

Guidance and Future Outlook

• Priorities include disciplined execution, maximizing value of existing assets, and positioning for the next phase of growth.
• Plans to continue pursuing production increases in core oil and gas operations where attractive returns can be achieved with modest incremental capital.
• Actively evaluating strategic alternatives for the Canadian oil and gas business, including a potential sale.
• Board and management are evaluating transformative mergers, acquisitions, and strategic transactions across a broad range of industries, not limited to the energy sector.
• Aims to identify opportunities to meaningfully enhance scale, earnings profile, and long-term value proposition.

Business Segments and Product Lines

• Oil and gas production increased by 82,000 barrels of oil equivalent (BOE) to 75,000 BOE in the quarter, representing a 9% overall increase compared to the previous quarter.
• Operating performance positively impacted by elevated recent prices for oil.
• Executing initiatives to streamline operations and reduce overhead, including the completion of the corporate transition from Honolulu to a lower-cost Houston platform.
• Established a new finance team to support the lower-cost operating structure.

Market and Competitive Landscape

• No specific market share data or direct competitor comparisons were provided in the press release.
• Company notes that quarter-on-quarter comparisons are the most meaningful framework for evaluation due to previously disclosed divestitures of U.S. and select Canadian assets which materially reduced the asset base relative to the prior year.

Risks and Challenges

• Forward-looking statements involve risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations.
• Specific risks are detailed in the Company's Form 10-K and other SEC filings, including factors affecting future performance estimates and strategic plans.

Management Commentary and Tone

• Philip Patman, Jr., CFO and Board Member, described the quarter as an "important step in Barnwell's transformation," highlighting cost reductions, production increases, positive Adjusted EBITDA, and a debt-free balance sheet.
• Management expressed confidence in the company's "leaner, more focused and financially flexible" position, stating they are "prepared to act decisively" on value-creating opportunities.
• The tone is forward-looking and strategic, emphasizing a shift from preserving the existing business to identifying transformative opportunities.

Other Key Points

• The limited-duration shareholder rights plan expired on July 29, 2026, and the Board elected not to renew it to simplify the governance structure.
• In July 2026, the Company entered into a definitive agreement to sell its remaining Hawaii real estate development interests for approximately $1,550,000 in cash (gross purchase price $1,770,000), expecting an additional pre-closing distribution of approximately $770,000.
• The Hawaii transaction is expected to close prior to the September 30, 2026 fiscal year-end, marking a full exit from longstanding real estate development activities in Hawaii.
• Retained an independent financial advisor to assist in evaluating strategic alternatives for the Canadian oil and gas business.
• The Company possesses U.S. net operating loss carryforwards and a longstanding U.S. public company platform.