SEGMENT INFORMATION

9 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

9. SEGMENT INFORMATION

Barnwell operates four segments: 1) exploring for, developing, producing and selling oil and natural gas in Canada (oil and natural gas); 2) investing in land interests in Hawaii (land investment); 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling); and 4) developing homes for sale in Hawaii (residential real estate).

The following table presents certain financial information related to Barnwell’s reporting segments.  All revenues reported are from external customers with no intersegment sales or transfers.

	Three months ended								Nine months ended
	June 30,								June 30,
	2011				2010				2011				2010
Revenues:
Oil and natural gas		$	7,559,000			$	5,947,000			$	21,220,000			$	20,650,000
Gain from drilling royalty credits		98,000				-				1,424,000				-
Oil and natural gas segment total		7,657,000				5,947,000				22,644,000				20,650,000
Land investment		681,000				1,128,000				3,742,000				5,844,000
Contract drilling		490,000				1,599,000				2,871,000				4,882,000
Other		143,000				100,000				300,000				313,000
Total before interest income		8,971,000				8,774,000				29,557,000				31,689,000
Interest income		18,000				5,000				32,000				15,000
Total revenues		$	8,989,000			$	8,779,000			$	29,589,000			$	31,704,000
Depletion, depreciation, and amortization:
Oil and natural gas		$	2,299,000			$	2,030,000			$	6,840,000			$	6,404,000
Contract drilling		138,000				115,000				423,000				343,000
Other		24,000				18,000				71,000				70,000
Total depletion, depreciation, and amortization		$	2,461,000			$	2,163,000			$	7,334,000			$	6,817,000
Reduction of carrying value of assets:
Land investment		$	-			$	-			$	190,000			$	798,000
Other		-				-				121,000				-
Total reduction of carrying value of assets		$	-			$	-			$	311,000			$	798,000
Operating profit (before general and administrative expenses):
Oil and natural gas		$	2,393,000			$	1,258,000			$	7,359,000			$	6,728,000
Land investment		681,000				1,128,000				3,552,000				5,046,000
Contract drilling		(481,000		)		(335,000		)		(596,000		)		336,000
Other		119,000				82,000				108,000				243,000
Total operating profit		2,712,000				2,133,000				10,423,000				12,353,000
General and administrative expenses		(1,201,000		)		(1,591,000		)		(7,334,000		)		(6,001,000		)
Interest expense		(242,000		)		(326,000		)		(862,000		)		(906,000		)
Interest income		18,000				5,000				32,000				15,000
Earnings before income taxes		$	1,287,000			$	221,000			$	2,259,000			$	5,461,000