Barnwell Industry (BRN)

[OilStockReport]

I agree, I hope what I read was a good prediction.

[Rustler]

Perhaps. This stock doesn't seem to move a whole lot.

[OilStockReport]

BRN exploring new highs?

BARNWELL INDUSTRIES Inc (BRN)

The entry level is $7.11 and our initial target is $9. This comes to approximately 27%. The stop-loss is put just below the level of $6.80, which is about 5 per cent. The secondary price target is around the $10-12 area. If $12 level is reached, this means a return of 69%.

[Rustler]

A small position, yes.

[OilStockReport]

Where are you at with this stock? Still holding?

[OilStockReport]

Agreed its one I am holding long term. Results are favorable and should help sustain the deal here.

Summary

Net earnings attributable to Barnwell for the three months ended December 31, 2010 totaled $1,085,000, an $867,000 decrease from net earnings of $1,952,000 for the three months ended December 31, 2009. This decrease was largely attributable to the following items:

· Oil and natural gas operating profits before income taxes decreased $1,020,000. During the quarter ended December 31, 2009, Barnwell was notified that a non-consent 300% penalty well, of which Barnwell is a non-operator, had reached recovery. Net earnings for the quarter ended December 31, 2009 included $220,000 related to the operations of this well; there were no such revenues during the quarter ended December 31, 2010. Also contributing to the decrease was an increase in operating expenses as a result of an increase in workovers and repairs;

· Land investment segment revenues decreased $527,000 due to decreased receipts of percentage of sales payments resulting from a decrease in sales of residential lots by the developer of the project;

· A $484,000 decrease in contract drilling operating profits before income taxes due to a decrease in well drilling activity; and

· The prior year period included a $1,252,000 current income tax benefit from legislation which expanded the number of years Barnwell can carry back U.S. federal income tax losses.

The decreases in earnings above were partially offset by the fact that land investment operating profits before income taxes in the prior year quarter included a $798,000 non-cash reduction of the carrying value of Barnwell’s investment in residential parcels, whereas there was no such reduction in the current year quarter. The decrease in earnings was also partially offset by a decrease in deferred tax expense as income taxes in the prior year quarter included a significant increase in the valuation allowance for deferred tax assets.

[Rustler]

Barnwell is a long term play, i.e., five years. It will, on the average, do quite well.

[Planopenny]

This one looks nice

[OilStockReport]

Summary



Net earnings attributable to Barnwell for the three months ended June 30, 2010 totaled $314,000, a $3,549,000 increase from a net loss of $3,235,000 for the three months ended June 30, 2009. This increase was largely attributable to the following items:



· The prior year period included a non-cash reduction of the carrying value of oil and natural gas properties before income taxes of $4,260,000;



· A $1,128,000 increase in land investment segment operating profits before income taxes due to increased receipts of percentage of sales payments resulting from sales of residential lots by the developer of the project;



· The current quarter includes a $306,000 share-based compensation benefit as compared to a $46,000 share-based compensation expense in the comparable prior year period; and



· A tax benefit of $213,000 related to an income tax loss carryback.



The aforementioned increases in net earnings were offset by a $583,000 decrease in contract drilling operating results for the three months ended June 30, 2010.



Net earnings attributable to Barnwell for the nine months ended June 30, 2010 totaled $3,756,000, a $23,564,000 increase from a net loss of $19,808,000 for the nine months ended June 30, 2009. This increase was largely attributable to the following items:



· The prior year period included a non-cash reduction of the carrying value of oil and natural gas properties before income taxes of $26,348,000;



· A $4,810,000 increase in land investment segment operating profits before income taxes due to increased receipts of development rights option payments attributable to the timing of receipts, and increased receipts of percentage of sales payments;



· Oil and natural gas segment operating profit (excluding the impact of the reduction in carrying value of oil and natural gas properties discussed above) increased $3,340,000 before taxes, primarily due to lower depletion expense and higher prices received for oil; and



· An approximately $1,465,000 current income tax benefit from recent legislation which expands the number of years Barnwell can carry back U.S. federal income tax losses.



In addition, during the quarter ended December 31, 2009, Barnwell was notified that a non-consent 300% penalty well, of which Barnwell is a non-operator, had reached recovery. Net earnings for the nine months ended June 30, 2010 includes $220,000 related to the operations of this well. The aforementioned increases in net earnings for the nine months ended June 30, 2010 were partially offset by a $798,000 non-cash reduction of the carrying value of Barnwell’s investment in residential parcels.