- Barnwell reported Q2 2025 results with revenue of $3.57 million, a 32.3% YoY decline and a 20.3% QoQ decline, reflecting ongoing sensitivity to commodity cycles and asset mix in a small-cap E&P footprint. Gross profit was $0.829 million (gross margin 23.2%), while operating income remained negative at $1.333 million and net income posted a deficit of $1.208 million, or -$0.12 per share. Despite the top-line softness, gross margin expanded meaningfully YoY, underscoring some degree of cost discipline and favorable product mix within a constrained revenue base.
- From a cash-flow and balance-sheet perspective, BRN generated negative operating cash flow (-$0.095 million) and free cash flow (-$0.095 million) for the quarter, with total cash and cash equivalents of $1.432 million at period-end. The company carries modest absolute debt (long-term debt of $0.112 million; total debt $0.112 million) and reports a net debt position of -$1.320 million driven by cash on hand, suggesting modest liquidity headroom for near-term obligations but limited cushion for any sustained adverse price moves. Total assets stand at $24.377 million with equity of $10.135 million; current ratio is approximately 0.99, indicating tight working capital but no immediate liquidity distress from current liabilities.
- The business is exposed to commodity price volatility and production volumes given its diversified but small-scale asset base across Oil & Natural Gas, Land Investment, and Contract Drilling. Absent a formal forward-looking guidance disclosure, the investment case hinges on execution efficiency, potential strategic asset movements, and macro energy price trajectories. Investors should monitor WTI/realized prices, production volumes, capex cadence, and the company’s ability to generate free cash flow into positive territory over successive quarters.