Barnwell Industries, Inc. · AMEX:BRN
Barnwell Industries — Proxy Contest (March 2020)
17 slides from Barnwell Industries's proxy contest presentation, March 2020
Slide 1: Barnwell Industries, Inc. Investor Presentation
Barnwell Industries, Inc. Investor Presentation March 2020
Slide 2: 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 Executive 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 o Based in Honolulu, Hawaii since 1980 where its contract drilling and its investm
Slide 4: Oil and Natural Gas Segment
Oil and Natural Gas Segment • Commencing in 2014, Company took actions to defend balance sheet by divesting of our mature natural gas and heavy oil properties • Brokered marketing in 2014, 2015, 2017 and 2020 led to 20+ transaction yielding $30+ million in proceeds • Proactive in abandoning wells to
Slide 5: Twining Pekisko Oil Overview
Twining Pekisko Oil Overview Twining Oil Fairway and Wells • The Twining Pekisko Pool is the 9th largest Barnwell Lands in Yellow conventional oil pool ever discovered in 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: Executing Plan to Create Long-Term Value
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 generate cash to fund development drilling in the Twining area Executing • Management estimates that current market value of non-core properties is betw
Slide 8: Executing Plan to Create Long-Term Value (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 Executing for another project that is already approved
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 1-Year 3-Year 5-Year YTD 0% -25% -50% Barnwell S&P Oil & Gas E&P Peer median -75% 1. [Discuss Peer group here] Source: Bloomberg. Annualized / YTD returns as of March 10,
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
Slide 11: Dissidents Offer Vague and Flawed Plan
• Dissidents would liquidate assets at trough of market, potentially to fund Dissidents their own agenda Offer Vague • Dissidents’ plan would crystallize losses, ignores value upside and and Flawed creates substantial liabilities Plan • Dissidents’ plan does not offer any tangible financial benefits
Slide 12: Dissident Slate Puts Company's Current Progress at Risk
• Dissident nominees lack the relevant, diverse backgrounds Barnwell requires • All five dissident nominees come from finance backgrounds, with little to no operational experience • Dissident nominees have NO background in the oil and gas Dissident industry, except for one whose experience in the oi
Slide 13: Dissident Myths vs the Facts
Dissident Myths vs the Facts Components of Dissident Plan or Barnwell’s Response Criticism of Company ✘ Dissidents’ new board will immediately begin to review ✓ As previously stated, Barnwell is already divesting non- and divest all non-core money losing assets core legacy assets and has seen positi
Slide 14: Dissident Myths vs the Facts
Dissident Myths vs the Facts Components of Dissident Plan or Barnwell’s Response Criticism of Company ✘ Barnwell changed its bylaws and delayed the annual ✓ The Company has for years met higher governance meeting as reactions to the dissidents’ nominations standards than required for smaller reporti
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 r
Slide 16: Vote FOR Management's Slate on the WHITE Proxy Card
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: Disclaimers
Disclaimers The views expressed in this presentation (this “Presentation”) represent the opinion of Barnwell Industries, Inc. (the “Company”). This Presentation is for informational purposes only, and it does not have regard to the specific investment objective, financial situations, suitability or