UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
--- Exchange Act of 1934
For the quarterly period ended December 31, 1998
Transition Report Pursuant to Section 13 or 15(d) of the Securities
--- Exchange Act of 1934
COMMISSION FILE NUMBER 1-5103
BARNWELL INDUSTRIES, INC.
(Exact name of small business issuer as specified in its charter)
DELAWARE 72-0496921
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1100 ALAKEA STREET, SUITE 2900, HONOLULU, HAWAII 96813
(Address of principal executive offices) (Zip code)
(808) 531-8400
(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
--- ---
As of February 5, 1999 there were 1,316,952 shares of common stock, par value
$0.50, outstanding.
Transitional Small Business Disclosure Format Yes No X
--- ---
1
<PAGE>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
INDEX
-----
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
December 31, 1998 and September 30, 1998 (Unaudited)
Consolidated Statements of Operations
three months ended December 31, 1998 and 1997 (Unaudited)
Condensed Consolidated Statements of Cash Flows
three months ended December 31, 1998 and 1997 (Unaudited)
Consolidated Statements of Stockholders' Equity
three months ended December 31, 1998 and 1997 (Unaudited)
Notes to Condensed Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. OTHER INFORMATION:
Item 6. Exhibits and reports on Form 8-K
2
<PAGE>
BARNWELL INDUSTRIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, see Note A below)
ASSETS
- ------
DECEMBER 31, September 30,
1998 1998
------------- -------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,669,000 $ 2,178,000
Accounts receivable, net 1,914,000 1,593,000
Other current assets 727,000 855,000
------------ ------------
TOTAL CURRENT ASSETS 4,310,000 4,626,000
------------ ------------
INVESTMENT IN LAND 2,881,000 2,710,000
------------ ------------
OTHER ASSETS 212,000 213,000
------------ ------------
NET PROPERTY AND EQUIPMENT 23,598,000 24,112,000
------------ ------------
TOTAL ASSETS $ 31,001,000 $ 31,661,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 2,027,000 $ 2,836,000
Accrued expenses 1,788,000 1,963,000
Other current liabilities 1,089,000 851,000
------------ ------------
TOTAL CURRENT LIABILITIES 4,904,000 5,650,000
------------ ------------
LONG-TERM DEBT 13,676,000 13,630,000
------------ ------------
DEFERRED INCOME TAXES 5,643,000 5,637,000
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock, par value $.50 a share:
Authorized, 4,000,000 shares
Issued, 1,642,797 shares 821,000 821,000
Additional paid-in capital 3,103,000 3,103,000
Retained earnings 11,331,000 11,281,000
Accumulated other comprehensive loss (3,688,000) (3,672,000)
Treasury stock, at cost, 325,845 shares (4,789,000) (4,789,000)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 6,778,000 6,744,000
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 31,001,000 $ 31,661,000
============ ============
Note A: The condensed consolidated balance sheet at September 30, 1998 has been
derived from the audited financial statements at that date.
See Notes to Condensed Consolidated Financial Statements
3
<PAGE>
BARNWELL INDUSTRIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
December 31,
-----------------------------
1998 1997
----------- ------------
Revenues:
Oil and natural gas $ 2,350,000 $ 2,930,000
Contract drilling 750,000 180,000
Gas processing and other 200,000 260,000
----------- ------------
3,300,000 3,370,000
----------- ------------
Costs and expenses:
Oil and natural gas operating 817,000 808,000
Contract drilling operating 576,000 259,000
General and administrative 764,000 792,000
Depreciation, depletion and amortization 694,000 796,000
Interest expense 206,000 157,000
----------- -----------
3,057,000 2,812,000
----------- -----------
Earnings before income taxes 243,000 558,000
Income tax provision 193,000 438,000
----------- -----------
NET EARNINGS $ 50,000 $ 120,000
=========== ===========
BASIC AND DILUTED EARNINGS PER COMMON SHARE $0.04 $0.09
===== =====
See Notes to Condensed Consolidated Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
December 31,
--------------------------
1998 1997
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $ 50,000 $ 120,000
Adjustments to reconcile net earnings to net
cash used in operating activities:
Depreciation, depletion, and amortization 694,000 796,000
Deferred income taxes 15,000 141,000
----------- -----------
759,000 1,057,000
Decrease from changes
in current assets and liabilities (931,000) (1,287,000)
----------- -----------
Net cash used in operating activities (172,000) (230,000)
----------- -----------
Cash Flows from Investing Activities:
Capital expenditures - oil and natural gas (211,000) (1,574,000)
Additions to investment in land (171,000) (159,000)
Capital expenditures - contract drilling and other (24,000) (137,000)
Proceeds from sale of oil and natural gas properties 18,000 -
Decrease in other assets 1,000 5,000
----------- -----------
Net cash used in investing activities (387,000) (1,865,000)
----------- -----------
Cash Flows from Financing Activities:
Long-term debt borrowings 150,000 -
Repayments of long-term debt (100,000) -
----------- -----------
Net cash provided by financing activities 50,000 -
----------- -----------
Effect of exchange rate changes
on cash and cash equivalents - (37,000)
----------- -----------
Net decrease in cash and cash equivalents (509,000) (2,132,000)
Cash and cash equivalents at beginning of period 2,178,000 4,402,000
----------- -----------
Cash and cash equivalents at end of period $ 1,669,000 $ 2,270,000
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amounts capitalized) $ 195,000 $ 107,000
=========== ===========
Income taxes $ 52,000 $ 229,000
=========== ===========
<FN>
See Notes to Condensed Consolidated Financial Statements
</FN>
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
Accumulated
Additional Comprehensive Other Total
Common Paid-In Income Retained Comprehensive Treasury Stockholders'
Stock Capital (Loss) Earnings Loss Stock Equity
-------- ---------- ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
At September 30, 1997 $821,000 $3,103,000 $15,171,000 $ (2,240,000) $ (4,705,000) $ 12,150,000
Comprehensive loss:
Net earnings $ 120,000 120,000 120,000
---------
Other comprehensive loss:
Foreign currency
translation adjustments (376,000)
Unrealized holding
gain on securities 2,000
---------
Other comprehensive loss (374,000) (374,000) (374,000)
---------
Total comprehensive loss $(254,000)
-------- ---------- ========= ----------- ------------ ------------ ------------
At December 31, 1997 $821,000 $3,103,000 $15,291,000 $ (2,614,000) $ (4,705,000) $ 11,896,000
======== ========== =========== ============ ============ ============
At September 30, 1998 $821,000 $3,103,000 $11,281,000 $ (3,672,000) $ (4,789,000) $ 6,744,000
Comprehensive income:
Net earnings $ 50,000 50,000 50,000
Other comprehensive loss -
Foreign currency
translation adjustments (16,000) (16,000) (16,000)
---------
Total comprehensive income $ 34,000
-------- ---------- ========= ----------- ------------ ------------ ------------
At December 31, 1998 $821,000 $3,103,000 $11,331,000 $ (3,688,000) $ (4,789,000) $ 6,778,000
======== ========== =========== ============ ============ ============
<FN>
See Notes to Condensed Consolidated Financial Statements
</FN>
</TABLE>
6
<PAGE>
BARNWELL INDUSTRIES, INC.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
-------------------------------------------
The Condensed Consolidated Balance Sheet as of December 31, 1998, and the
Consolidated Statements of Operations, the Condensed Consolidated Statements of
Cash Flows, and the Consolidated Statements of Stockholders' Equity for the
three months ended December 31, 1998 and 1997 have been prepared by Barnwell
Industries, Inc. (referred to herein together with its subsidiaries as
"Barnwell" or the "Company") without audit. In the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and changes in cash
flows at December 31, 1998 and for all periods presented have been made. The
Condensed Consolidated Balance Sheet as of September 30, 1998 has been derived
from audited financial statements.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these condensed
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's September 30, 1998 annual
report to stockholders. The results of operations for the period ended December
31, 1998 are not necessarily indicative of the operating results for the full
year.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenues
and expenses and the disclosure of contingent assets and liabilities. Actual
results could differ significantly from those estimates.
2. EARNINGS PER COMMON SHARE
-------------------------
Basic earnings per share ("EPS") excludes dilution and is computed by
dividing net earnings by the weighted-average number of common shares
outstanding for the period. The weighted-average number of common shares
outstanding for three months ended December 31, 1998 and 1997 was 1,316,952 and
1,322,052, respectively.
Diluted EPS includes the potentially dilutive effect of outstanding common
stock options and securities which are convertible to common shares. The
weighted-average number of common and potentially dilutive common shares
outstanding for the three months ended December 31, 1998 and 1997 was 1,316,952
and 1,325,504, respectively.
Assumed conversion of common stock options was excluded from the
computation of diluted EPS for the three months ended December 31, 1998 because
its effect would be antidilutive. As of December 31, 1998, options to acquire
55,000 shares of the Company's common stock were outstanding.
7
<PAGE>
A reconciliation between the numerators and denominators of the basic and
diluted EPS computations for the three months ended December 31, 1997 is as
follows:
Three months ended December 31, 1997
---------------------------------------
Net Earnings Shares Per-Share
(Numerator) (Denominator) Amount
------------ ------------ ---------
Basic earnings per share $ 120,000 1,322,052 $0.09
Effect of dilutive
securities - common stock options - 3,452 -
------------ ------------ ---------
Diluted earnings per share $ 120,000 1,325,504 $0.09
============ ============ =========
Assumed conversion of the convertible debentures to 95,000 and 100,000
shares of common stock was excluded from the computation of diluted EPS for the
three months ended December 31, 1998 and 1997, respectively, because its effect
would be antidilutive.
3. INCOME TAXES
------------
The components of the income tax provision for the three months ended
December 31, 1998 and 1997 are as follows:
Three months ended
December 31,
---------------------------
1998 1997
---------- ----------
Current - U.S. $ - $ -
Current - Foreign 178,000 297,000
---------- ----------
Total - Current 178,000 297,000
---------- ----------
Deferred - U.S. 15,000 25,000
Deferred - Foreign - 116,000
---------- ----------
Total - Deferred 15,000 141,000
---------- ----------
$ 193,000 $ 438,000
========== ==========
8
<PAGE>
4. NEW STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS
------------------------------------------------
In June 1997, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 130, "Reporting Comprehensive Income." SFAS No. 130 establishes
standards for reporting and display of comprehensive income and its components
(revenues, expenses, gains and losses) in a full set of general-purpose
financial statements. This statement requires that all items currently
recognized under accounting standards as components of comprehensive income be
reported in a financial statement that is displayed with the same prominence as
other financial statements and is effective for fiscal years beginning after
December 15, 1997. SFAS No. 130 requires reclassification of financial
statements presented for earlier periods. The Company adopted the provisions of
SFAS No. 130 in the first quarter of fiscal 1999.
In June 1997, the FASB also issued SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information." This statement provides
guidance for public business enterprises in reporting information about
operating segments in annual financial statements and requires that those
enterprises report selected information about operating segments in interim
financial reports to shareholders. This statement also establishes standards for
related disclosures about products and services, geographic areas and major
customers. This statement is effective for fiscal years beginning after December
15, 1997. SFAS No. 131 need not be applied to interim financial statements in
the initial year of its application. The Company will adopt the provisions of
SFAS No. 131 in its fiscal 1999 consolidated financial statements. Management
does not expect adoption of SFAS No. 131 will have a material effect on the
Company's reported financial information.
In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits," which amends the disclosure
requirements of SFAS No. 87, "Employers' Accounting for Pensions," SFAS No. 88,
"Employers' Accounting for Settlements and Curtailments of Defined Benefit
Pension Plans and for Termination Benefits," and SFAS No. 106, "Employers'
Accounting for Postretirement Benefits Other Than Pensions." This statement
standardizes the disclosure requirements of SFAS No.'s 87 and 106 to the extent
practicable and recommends a parallel format for presenting information about
pensions and other postretirement benefits. SFAS No. 132 addresses disclosure
only and does not change any of the measurement or recognition provisions
provided for in SFAS No.'s 87, 88 or 106. This statement is effective for fiscal
years beginning after December 15, 1997. The Company will adopt the provisions
of SFAS No. 132 in its fiscal 1999 consolidated financial statements. Management
does not expect adoption of SFAS No. 132 will have a material effect on the
Company's reported financial information.
In March 1998, the American Institute of Certified Public Accountants
("AICPA") Accounting Standards Executive Committee issued Statement of Position
("SOP") 98-1, "Accounting for the Costs of Computer Software Developed or
Obtained for Internal Use," which requires that certain costs, including certain
payroll and payroll-related costs, be capitalized and amortized over the
estimated useful life of the software. The provisions of SOP 98-1 are effective
for fiscal years beginning after December 31, 1998. The Company adopted the
provisions of SOP 98-1 in the first quarter of fiscal 1999. The adoption of SOP
98-1 did not have a material effect on the Company's financial condition,
results of operations or liquidity.
9
<PAGE>
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," which establishes accounting and reporting
standards for derivative instruments and hedging activities and requires that an
entity recognize all derivatives as either assets or liabilities in the
statement of financial position and measure those instruments at fair value. The
provisions of SFAS No. 133 are effective for all fiscal quarters of fiscal years
beginning after June 15, 1999. The Company has not determined when it will adopt
SFAS No. 133. The Company currently holds no derivative instruments, nor is it
currently participating in hedging activities.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
------------------------------------------------------------------------
OF OPERATIONS
-------------
FORWARD-LOOKING STATEMENTS
- --------------------------
This Form 10-QSB contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including various forecasts, projections of the Company's
future performance, statements of the Company's plans and objectives or other
similar types of information. Although the Company believes that its
expectations are based on reasonable assumptions, it cannot assure that the
expectations contained in such forward-looking statements will be achieved. Such
statements involve risks, uncertainties and assumptions which could cause actual
results to differ materially from those contained in such statements. These
forward-looking statements speak only as of the date of filing of this Form
10-QSB, and the Company expressly disclaims any obligation or undertaking to
publicly release any updates or revisions to any forward-looking statements
contained herein.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Cash flows used by operations decreased $58,000 for the three months ended
December 31, 1998, as compared to the same period in the prior year, due
primarily to a $395,000 increase in cash flows attributable to the timing of
receivable collections and payables disbursements. This decrease in cash flows
used by operations was partially offset by a decrease in operating profit
generated by the Company's oil and natural gas segment.
At December 31, 1998, the Company had $1,669,000 in cash and cash
equivalents, and approximately $700,000 of available credit under its credit
facility with a Canadian bank and approximately $500,000 of available credit
under Kaupulehu Developments' (a 50.1% owned joint venture) land rezoning credit
facility with a Hawaii bank.
During the quarter ended December 31, 1998, the Company invested $211,000
in oil and natural gas properties (all in Canada), as compared to $1,574,000
($1,333,000 in Canada and $241,000 in the U.S.) during the prior year's first
quarter. Capital expenditures have decreased due to the completion of several
development projects in fiscal 1998, no capital expenditures in the U.S. in the
current period, and a reduction of the Company's oil and natural gas capital
expenditures budget for fiscal 1999, as compared to the level of capital
expenditures for fiscal 1998, due to the decline in oil prices.
10
<PAGE>
The Company participated in the drilling of 4 successful wells, one with
two producing zones, in Alberta, Canada, during the three months ended December
31, 1998 as follows:
Productive Productive
Oil Wells Gas Wells Dry Holes Total Wells
------------- ------------- ------------- -------------
Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev.
---- ---- ---- ---- ---- ---- ---- ----
Gross - - 1.00 3.00 - - 1.00 3.00
Net - - 0.10 0.28 - - 0.10 0.28
The Company also invested $171,000 (including interest costs capitalized)
towards the rezoning of the North Kona, Hawaii property held by Kaupulehu
Developments, a 50.1% owned joint venture.
The Company's computer systems are in the process of being upgraded. The
Company expects to complete its information systems upgrades, which are
represented to be Year 2000 compliant by respective vendors, by the summer of
1999. The Company estimates that the total combined internal and external cost
of upgrading information systems specifically for Year 2000 compliance to be
less than $30,000, and expects to fund these costs by utilizing cash flows from
operations. Analysis of embedded technology issues, including, but not limited
to, such items as microprocessors in petroleum and water pump controls, and
potential impacts relating to third parties with which the Company has a
material relationship is ongoing and to date has not brought to light evidence
of potential negative impacts. Expenditures related to Year 2000 compliance in
the three months ended December 31, 1998 and 1997 were not significant and were
expensed as incurred.
No amount of preparation and testing can guarantee Year 2000 compliance.
Accordingly, the Company is developing contingency plans to overcome the most
reasonably likely worst case scenarios which may result from failure by the
Company or third parties to complete their Year 2000 initiatives on a timely
basis. The Company expects to complete its contingency plans by September of
1999. Such contingency plans may include using alternative processes, such as
manual procedures or work-around applications to substitute for non-compliant
systems; arranging for alternate marketers, operators, and suppliers and service
providers; and developing procedures internally and in collaboration with
significant third parties to address compliance issues as they arise. There is
particular difficulty in the assessment of Year 2000 compliance of third
parties. Accordingly, the Company considers the potential disruptions caused by
such parties to present the most reasonably likely worst case scenarios. Adverse
effects on the Company could include business disruption, increased costs,
delays of sales and other similar ramifications.
The costs to address Year 2000 issues, the dates on which the Company
believes that it will complete activities to address such issues and the
Company's evaluation of third-party effects are estimates and subject to change.
Actual results could differ from those currently anticipated. Factors that could
cause such differences include, but are not limited to, the availability of key
Year 2000 project personnel, the ability of systems vendors to meet their
represented specifications and timetables, the Company's ability to respond to
unforeseen Year 2000 complications, the readiness of third parties, the accuracy
of third party assurances regarding Year 2000 compliance and similar
uncertainties.
11
<PAGE>
RESULTS OF OPERATIONS
- ---------------------
Oil and Natural Gas
- -------------------
SELECTED OPERATING STATISTICS
-----------------------------------------------
Average Price Per Unit
-----------------------------------------------
Three months ended Increase
December 31, (Decrease)
--------------------- ------------------
1998 1997 $ %
------ ------ ------ -----
Liquids (Bbls)* $ 8.44 $15.38 $(6.94) (45%)
Oil (Bbls)* $12.15 $17.36 $(5.21) (30%)
Natural gas (MCF)** $ 1.42 $ 1.48 $(0.06) (4%)
Net Production
-----------------------------------------------
Three months ended Increase
December 31, (Decrease)
---------------------- ------------------
1998 1997 Units %
------- ------- ------ -----
Liquids (Bbls)* 18,000 18,000 - -
Oil (Bbls)* 57,000 48,000 9,000 19%
Natural gas (MCF)** 890,000 973,000 (83,000) (9%)
*Bbls = stock tank barrel equivalent to 42 U.S. gallons
**MCF = 1,000 cubic feet
Oil and natural gas revenues decreased $580,000 (20%) for the three months
ended December 31, 1998, as compared to the same period in 1997, due to 45%, 30%
and 4% decreases in natural gas liquids, oil and natural gas prices,
respectively. In addition to these price decreases, natural gas production
declined 9% owing to production declines at Dunvegan and other properties and to
certain gas gathering system workovers at Dunvegan, the Company's principal
natural gas property, which have since been completed. These decreases were
partially offset by a 19% increase in oil production from new wells.
Contract Drilling
- -----------------
Contract drilling revenues and costs increased $570,000 (317%) and
$317,000 (122%), respectively, for the three months ended December 31, 1998, as
compared to the same period in 1997, as two drilling rigs were operating
concurrently during the current quarter, as compared to none in the same period
in 1997. Accordingly, operating results before depreciation increased to an
operating profit of $174,000 for the three months ended December 31, 1998, as
compared to an operating loss before depreciation of $79,000 for the same period
in 1997.
12
<PAGE>
Gas Processing and Other
- ------------------------
Gas processing and other income decreased $60,000 (23%) for the three
months ended December 31, 1998, as compared to the same period in 1997,
primarily due to a decrease in interest income as a result of lower average cash
balances.
Depreciation, Depletion and Amortization
- ----------------------------------------
Depreciation, depletion and amortization decreased $102,000 (13%) for the
three months ended December 31, 1998, as compared to the same period in 1997,
due to both lower natural gas production and the fact that depletion in the
prior year period included approximately $40,000 of depletion of U.S. oil and
natural gas properties; there was no depletion of U.S. oil and natural gas
properties in the current year period as the Company wrote off its investments
in U.S. oil and natural gas properties at September 30, 1998.
Interest Expense
- ----------------
Interest expense increased $49,000 (31%) for the three months ended
December 31, 1998, as compared to the same period in 1997, due to an increase in
average loan balances during the current quarter.
13
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
None.
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BARNWELL INDUSTRIES, INC.
-------------------------
(Registrant)
/s/ Russell M. Gifford
----------------------
Russell M. Gifford
Executive Vice President, Chief Financial Officer
Date: February 12, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Barnwell Industries Inc.'s 1999 first quarter 10-QSB and is qualified
in its entirety by reference to such 10-QSB.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> DEC-31-1998
<CASH> 1669
<SECURITIES> 0
<RECEIVABLES> 2000
<ALLOWANCES> 86
<INVENTORY> 92
<CURRENT-ASSETS> 4310
<PP&E> 56358
<DEPRECIATION> 32760
<TOTAL-ASSETS> 31001
<CURRENT-LIABILITIES> 4904
<BONDS> 14076
0
0
<COMMON> 821
<OTHER-SE> 5957
<TOTAL-LIABILITY-AND-EQUITY> 31001
<SALES> 3100
<TOTAL-REVENUES> 3300
<CGS> 1393
<TOTAL-COSTS> 1393
<OTHER-EXPENSES> 694
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 206
<INCOME-PRETAX> 243
<INCOME-TAX> 193
<INCOME-CONTINUING> 50
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 50
<EPS-PRIMARY> .04
<EPS-DILUTED> .04
</TABLE>
