Barnwell Industries Advances Strategic Transformation Through Sale of Remaining Hawaii Development Interests

About this update from Barnwell Industries, Inc.

Transaction Advances Portfolio Simplification, Strengthens Balance Sheet and Enhances Strategic Flexibility HOUSTON, TX / ACCESS Newswire / August 4, 2026 / Barnwell Industries, Inc. (NYSE American:BRN) today announced that it has entered into a definitive agreement to sell its remaining Hawaii development interests and related project rights. The transaction represents another important step in Barnwell's strategy to simplify its portfolio, strengthen its balance sheet and redeploy capital toward higher-return opportunities. Barnwell expects to receive approximately $1.5 million in net cash proceeds from the sale, based on a gross purchase price of $1.77 million, as well as an additional pre-closing distribution of approximately $0.1 million. The transaction is subject to customary closing conditions and is expected to close before the end of the Company's fiscal year on September 30, 2026. The definitive agreement provides for the sale of Barnwell's indirect partnership interests in KKM Makai, LLLP and KD Kona 2013 LLLP, which hold interests in the leases covering the Increment 1 and Increment 2 areas of Lot 4-A at Ka'upulehu on the Island of Hawaii. The transaction also includes development rights held by Ka'upulehu Developments (the "Partnership") in the Increment 2 area. Barnwell expects the limited remaining activities relating to the winding up of the Partnership and its affairs to be completed promptly and at minimal additional cost, likely allowing the Company to complete its exit from Hawaii also by the end of fiscal 2026. "The Board believes capital should be allocated where it can earn the highest long-term risk-adjusted returns," said Philip Patman, Jr., Chief Financial Officer and a member of Barnwell's Board of Directors. "This transaction reflects that philosophy by monetizing a legacy asset whose value we believe is better realized through a sale than continued ownership. We will continue evaluating our portfolio with the same disciplined approach, monetizing assets where appropriate and redeploying capital into higher-return opportunities. Our priorities remain disciplined capital allocation, strategic investments and acquisitions, balance-sheet strength and, where appropriate, returning capital to shareholders." "In addition to generating immediate cash proceeds and an additional distribution, this transaction reduces future capital com...

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