Barnwell Industries (BRN) risk factors, FY2024 10-K

Other

1. 01Stockholders may be diluted significantly through our efforts to obtain financing, satisfy obligations through the issuance of securities or use our stock as consideration in certain transactions
2. 02A small number of stockholders, including our General Counsel and Secretary, own a significant amount of our common stock and may have influence over the Company
3. 03Our operations are subject to currency rate fluctuations
4. 04Adverse changes in actuarial assumptions used to calculate retirement plan costs due to economic or other factors, or lower returns on plan assets could adversely affect Barnwell’s results and financial condition
5. 05Declines in the price of our common stock could adversely affect the value of an asset on our balance sheet and our stockholders’ equity
6. 06The price of our common stock has been volatile and could continue to fluctuate substantially
7. 07Failure to retain key personnel could hurt our operations

Risks Related to Oil and Natural Gas Segment

1. 08Acquisitions or discoveries of additional reserves are needed to increase our oil and natural gas segment operating results and cash flow
2. 09We may not realize an adequate return on oil and natural gas investments
3. 10Oil and natural gas prices are highly volatile and further declines, or extended low prices will significantly affect our financial condition and results of operations
4. 11The inability of one or more of our working interest partners to meet their obligations may adversely affect our financial results
5. 12We may incur material costs to comply with or as a result of health, safety, and environmental laws and regulations
6. 13The AER may require purchasers of AER licensed oil and natural gas assets to be within Tiers 1 or 2 overall rankings in the six factors group. This requirement for well transfers hinders our ability to generate capital by selling oil and natural gas assets as there are less qualified buyers
7. 14We may fail to fully identify potential problems related to acquired reserves or to properly estimate those reserves
8. 15If oil and natural gas prices decline and remain low, we may be required to take write-downs of the carrying values of our oil and natural gas properties
9. 16The oil and natural gas industry is highly competitive
10. 17An increase in operating costs greater than anticipated could have a material adverse effect on our results of operations and financial condition
11. 18Our operating results are affected by our ability to market the oil and natural gas that we produce
12. 19We are not the operator and have limited influence over the operations of certain of our oil and natural gas properties
13. 20Actual reserves will vary from reserve estimates
14. 21Part of our strategy involves using some of the latest available horizontal drilling and completion techniques. The results of our drilling are subject to drilling and completion technique risks, and results may not meet our expectations for reserves or production
15. 22Delays in business operations could adversely affect the amount and timing of our cash inflows
16. 23The oil and natural gas market in which we operate exposes us to potential liabilities that may not be covered by insurance
17. 24insurance premiums or other costs will not rise significantly in the future, so as to make the cost of such insurance prohibitive
18. 25Our operations are subject to domestic and foreign government regulation and other risks, particularly in Canada and the U.S
19. 26Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, could adversely affect our business, prospects, financial condition, and operating results
20. 27Compliance with foreign tax and other laws may adversely affect our operations
21. 28Unforeseen title defects may result in a loss of entitlement to production and reserves

Risks Related to Land Investment Segment

1. 29Receipt of future payments from KD II and cash distributions from the Kukio Resort Land Development Partnerships is dependent upon the developer’s continued efforts and ability to develop the property
2. 30We hold investment interests in unconsolidated land development partnerships, which are accounted for using the equity method of accounting, in which we do not have a controlling interest. These investments involve risks and are highly illiquid
3. 31Our land investment business is concentrated in the state of Hawaii. As a result, our financial results are dependent on the economic growth and health of Hawaii, particularly the island of Hawaii
4. 32The occurrence of natural disasters in Hawaii could adversely affect our business

Risks Related to Contract Drilling Segment

1. 33Demand for water well drilling and/or pump installation is volatile. A decrease in demand for our services could adversely affect our revenues and results of operations
2. 34If we are unable to accurately estimate the overall risks, requirements or costs when bidding on or negotiating a contract that is ultimately awarded, we may achieve a lower than anticipated profit or incur a loss on the contract
3. 35A significant portion of our contract drilling business is dependent on municipalities and a decline in municipal spending could adversely impact our business
4. 36Our contract drilling operations face significant competition
5. 37Supply chain and manufacturing issues of well drilling and pump installation equipment could adversely affect our operating results
6. 38Awarding of contracts is dependent upon our ability to obtain contract bid and performance bonds from insurers
7. 39The contracts in our backlog are subject to change orders and cancellation