Barnwell Industries, Inc. (NYSE American:BRN) has completed the sale of its remaining Hawaii development interests and associated project rights. The transaction involved partnership interests and development rights connected to Lot 4-A at Ka‘upulehu on the Island of Hawaii.
The sale carried a gross purchase price of approximately $1.77 million. Barnwell received approximately $1.54 million in net cash proceeds from the transaction.
Separately, the applicable partnership made pre-closing distributions of approximately $0.14 million net to Barnwell. The company said the proceeds and distributions produced total cash receipts of approximately $1.7 million.
Barnwell transferred its indirect partnership interests in KKM Makai, LLLP and KD Kona 2013 LLLP. These entities hold interests in leases covering the Increment 1 and Increment 2 areas of Lot 4-A at Ka‘upulehu.
The transaction also covered development rights held by Ka‘upulehu Developments in the Increment 2 area.
With the closing complete, Barnwell said it has monetized its remaining Hawaii development interests. The company expects limited work related to winding up the Ka‘upulehu Developments partnership and its affairs to be completed promptly and at minimal additional cost. Those activities had not yet been reported as complete.
Philip Patman, Jr., Barnwell’s chief financial officer and a member of its board, said the transaction converted the interests into cash, removed related future capital commitments and simplified the company.
Patman said Barnwell is continuing to assess strategic investments, acquisitions and potential business combinations. He said the company intends to apply a disciplined approach to valuation, balance-sheet strength and capital allocation, and to pursue opportunities only when it considers the prospective returns sufficient to justify using shareholder capital.
Barnwell said its forward-looking statements are based on current expectations and assumptions and may be affected by risks and uncertainties that could cause actual results to differ materially. The company identified commodity price volatility, the timing and outcome of any asset sale process, its ability to complete a strategic transaction, the availability and terms of potential merger or business combination opportunities, and general economic and market conditions as relevant factors.
The company also referred to additional risks described in its filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
Barnwell Industries, Inc. (NYSE American:BRN) announced that it has completed the previously announced sale of its remaining Hawaii development interests and related project rights. The transaction included indirect partnership interests in KKM Makai, LLLP and KD Kona 2013 LLLP, together with development rights held by Ka‘upulehu Developments in the Increment 2 area.
The transaction had a gross purchase price of approximately $1.77 million, resulting in approximately $1.54 million in net cash proceeds to Barnwell. The applicable partnership also made pre-closing distributions of approximately $0.14 million net to Barnwell. The source states that these amounts resulted in total cash receipts to Barnwell of approximately $1.7 million.
The sale covered Barnwell's indirect partnership interests in KKM Makai, LLLP and KD Kona 2013 LLLP. Those entities hold interests in leases covering the Increment 1 and Increment 2 areas of Lot 4-A at Ka‘upulehu on the Island of Hawaii. The transaction also included development rights held by Ka‘upulehu Developments in the Increment 2 area.
The company states that, with closing completed, it has monetized its remaining Hawaii development interests. It also expects the limited remaining activities associated with winding up the related Ka‘upulehu Developments partnership and its affairs to be completed promptly and at minimal additional cost. This is a company expectation, and the source does not state that the winding-up activities have already been completed.
Barnwell’s Chief Financial Officer and Board member, Philip Patman, Jr., said the company had converted the interests into cash, eliminated associated future capital commitments and further simplified the company. He said Barnwell would continue to evaluate strategic investments, acquisitions and potential business combinations, while maintaining a disciplined approach to valuation, balance-sheet strength and capital allocation. He also said the company would pursue opportunities only where it believes the prospective returns justify committing shareholders’ capital.
Barnwell states that forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. The identified factors include commodity price volatility, the timing and outcome of any asset sale process, the company’s ability to complete any strategic transaction, the availability and terms of potential merger or business combination opportunities, and general economic and market conditions. The company also refers to other risks described in its filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
The source describes Barnwell Industries, Inc. as a diversified company with operations and interests in energy and related assets. It says the company is focused on disciplined capital allocation, operational improvement, strategic repositioning and maximising shareholder value. The source does not provide further detail on the company’s operating performance in this announcement.