Barnwell Industries, Inc. · AMEX:BRN
Barnwell Industries — Proxy Contest (March 2020)
17 slides from Barnwell Industries's proxy contest presentation, Mar 13, 2020
Slide 1: Barnwell Industries, Inc. Investor Presentation
Barnwell Industries, Inc. Investor Presentation March 2020
Slide 2: Executive Summary
Executive Summary Barnwell is a diversified Canadian oil and gas E&P company Careful management of the Company's operations and balance sheet have ensured its viability through to the present, unlike many of its peers Each of the Company's operating segments have significant value potential The Boar
Slide 3: Company Overview
Company Overview Company History Barnwell was founded in 1956 in Shreveport, Louisiana as a Delaware corporation, and has been engaged in oil and natural gas exploration as well as other businesses for over 63 years ©. Based in Honolulu, Hawaii since 1980 where its contract drilling and its investme
Slide 4: Oil and Natural Gas Segment
Oil and Natural Gas Segment ‘Commencing in 2014, Comp properties took actions to defend balance sheet by divesting of our mature natural gas and heavy oil + Brokered marketing in 2014, 2015, 2017 and 2020 led to 20+ transaction yielding $30¢ million in proceeds + Proactive in wells to address: ‘and
Slide 5: Twining Pekisko Oil Overview
Twining Pekisko Oil Overview Twining Oil Fairway and Wells The Twining Pekisko Pool is the 9" largest Barnwell Lands in Yellow conventional oil pool ever discovered in = aw Alberta, with close to 900 million barrels of original oil in place and only a 5.3% recovery factor to-date Barnwell has a domi
Slide 6: Other Segments
Other Segments Contract Drilling Segment + Water Resources International, Inc. contracting subsidiary had a significantly improved fiscal year 2019 + Revenues increase by $1,580,000, or 42%, to $5,349,000 in fiscal 2019, generating an operating profit + Improvement primarily due to a new well drilli
Slide 7: Barnwell's Strategic Priorities
Barnwell’s Strategic Priorities 1. Divest legacy assets + In January 2020 Company engaged a broker to. market its non-core oil and gas properties to enerate cash to fund development drilling in the Twining area Management estimates that current market E ti value of non-core properties is between Xec
Slide 8: Barnwell's Strategic Priorities, cont'd
Barnwell’s Strategic Priorities, cont’d The Company owns an interest in 19 high-end unsold lots at Kaupulehu, North Kona, Hawaii which will provide capital for future investments as they are sold ‘A new developer is moving forward with plans for another project that is already approved for up to 400
Slide 9: Barnwell Has Outperformed Relative to Peers and Inline with Index
Barnwell Has Outperformed Relative to Peers and Inline with Index, Despite Scale and Secular Challenges Total Shareholder Returns Year 3-Year S-Year = Barnwell S&P Oil & Gas E&P Peer median Source: Bloomberg, Annualized / YTD returns as of March 10, 2019. Peers include InPlay Oil Corp, Strategic Oil
Slide 10: Barnwell's Refreshed Board, Stronger and More Independent
Barnwell’s Refreshed Board, Stronger and More Independent Barnwell has taken significant steps to create a strong, independent and experienced Board + Thoughtful, deliberate process to refresh Board led to three new independent nominees with significant, relevant experience being announced in Feb 20
Slide 11: Dissidents Offer Vague and Flawed Plan
Dissidents Offer Vague and Flawed Plan Dissidents would liquidate assets at trough of market, potentially to fund their own agenda Dissidents’ plan would crystallize losses, ignores value upside and creates substantial liabilities Dissidents’ plan does not offer any tangible financial benefits for a
Slide 12: Dissident nominees lack the relevant, diverse backgrounds
Dissident nominees lack the relevant, diverse backgrounds Barnwell requires + Allfive dissident nominees come from finance backgrounds, with litle to no operational experience: + Dissident nominees have NO background in the oil and gas industry, except for one whose experience in the oil and gas ind
Slide 13: Dissident Myths vs the Facts
Dissident Myths vs the Facts X Dissidents’ new board will immediately begin to review V As previously stated, Barnwell is already divesting non- and divest all non-core money losing assets, core legacy assets and has seen positive financial results Evaluate and divest non-core money losing assets in
Slide 14: Dissident Myths vs the Facts
Dissident Myths vs the Facts X Barnwell changed its bylaws and delayed the annual ‘meeting as reactions to the dissidents’ nominations ¥ The Company has for years met higher governance standards than required for smaller reporting companies. ¥ The annual meeting was delayed for 30 days in hopes that
Slide 15: Summary
Summary Barnwell has a long history of prudent management of its operations and assets Barnwell’s strategy to create long-term value is already having a positive impact Barnwell has nominated a strong, refreshed Board committed to creating value for all stockholders Dissidents’ slate lacks relevant,
Slide 16: Barnwell Recommends Stockholders Vote For Management's Slate
Barnwell Recommends Stockholders Vote “For” Management’s Slate of Highly Experienced Director Nominees on the WHITE Proxy Card Today If you have any questions, or need assistance in voting your shares on the WHITE proxy card, please call Barnwell’s proxy solicitor: Morrow Sodali LLC (800) 662-5200 (
Slide 17: About Barnwell Industries, Inc.
About Barnwell Industries, Inc. Barnwell Industries, Inc. and its subsidiaries (“Barnwell” or the “Company”) are principally engaged in oil and natural gas exploration, development, production and sales in Canada; investing in leasehold interests in real estate in Hawaii; and well drilling services