10048--12/15/2009--BARNWELL_INDUSTRIES

related topics

{gas, price, oil}

{condition, economic, financial}

{loan, real, estate}

{regulation, change, law}

{acquisition, growth, future}

{cost, regulation, environmental}

{customer, product, revenue}

{competitive, industry, competition}

{cost, contract, operation}

{loss, insurance, financial}

{operation, international, foreign}

{stock, price, operating}

{investment, property, distribution}

{operation, natural, condition}

{tax, income, asset}

{personnel, key, retain}

{cost, operation, labor}

{debt, indebtedness, cash}

The oil and natural gas industry is highly competitive. Oil and natural gas prices are volatile. Our results of operations and financial condition are highly dependent on the prices of and demand for our oil and natural gas production. If oil and natural gas prices decrease, we may be required to take write-downs of the carrying value of our oil and natural gas properties. An increase in operating costs or a decline in our production level could have a material adverse effect on our results of operations and financial condition. Our operating results are affected by our ability to market the oil and natural gas that we produce. We are not the operator and have limited influence over the operations of the majority of our oil and natural gas properties. Our operations are subject to domestic and foreign government regulation and other risks, particularly in Canada and the United States. Compliance with foreign tax and other laws may adversely affect our operations. We are dependent upon future discoveries or acquisitions of oil and natural gas to maintain our reserves. Actual reserves will vary from reserve estimates. Delays in business operations could adversely affect our distributions. The industry in which we operate exposes us to potential liabilities that may not be covered by insurance. We may incur material costs to comply with or as a result of health, safety, and environmental laws and regulations. We may have difficulty financing our planned capital expenditures, which could have an adverse affect on our business. Unforeseen title defects may result in a loss of entitlement to production and reserves. The real estate investment industry is experiencing a severe and extended downturn that may continue for an indefinite period. This downturn in economic conditions could adversely affect our business. Our real estate business is concentrated in the state of Hawaii. As a result, our financial results are dependent on the economic growth and health of Hawaii, particularly the island of Hawaii. The occurrence of natural disasters in Hawaii could adversely affect our business. Increases in interest rates, tightening of lending standards and decreases, limitations or restrictions in the availability of mortgage financing and other economic factors outside our control, such as consumer confidence and declines in employment levels could lead to slowed home sales, which could adversely affect our revenues and earnings. Our business is subject to extensive regulation which makes it difficult and expensive for us to conduct our operations. Receipt of future percentage of sales payments is dependent upon the developer s continued efforts to develop and market the property. If required land use entitlements are not obtained at reasonable costs, or at all, our operating results could be adversely affected. Environmental and other regulations may have an adverse effect on our business. General economic conditions in the lodging industry could adversely affect our financial results. The value of our lot acquisition rights could be impaired if the developer of the property is unable to obtain required land use entitlements or successfully negotiate development terms and agreements. The homebuilding industry is experiencing a severe and extended downturn that may continue for an indefinite period and may continue to adversely affect our business, results of operations and stockholders equity. We are reliant upon sales of residential homes and lots as a source of liquidity. If we are unable to sell the homes or lots within a reasonable timeframe, our revenues, operating results, cash inflows and financial condition could be materially impacted. We have limited experience in the homebuilding industry. We may need additional financing to fund our real estate development activities. If we are unable to obtain sufficient financing or such financing is obtained on adverse terms, we may not be able to operate our business as planned, which could adversely affect our results of operations and future growth. Our operating results from homebuilding are expected to be variable. Changes in the government regulations applicable to homebuilders could restrict our business activities, increase our operating expenses and cause our revenues to decline. Our residential real estate segment is dependent on the continued availability and satisfactory performance of our building contractors, which, if unavailable, could have a material adverse effect on our business. Shortages of labor or materials and/or increases in the price of materials could delay construction or increase the cost of home construction thereby reducing our sales and earnings. The market value of our real estate interests could drop significantly, which may require write-downs of the carrying value of our real estate held for development and investment to its estimated fair value. Any write-downs would negatively impact our results of operations. Severe weather and other natural conditions or disasters may disrupt or delay construction and may impair the value of our real estate property. The homebuilding industry is highly competitive and, with more limited resources than some of our competitors, we may not be able to compete effectively. Demand for water well drilling and/or pump installation is volatile. A decrease in demand for our services could adversely affect our revenues and results of operations. A significant portion of our contract drilling business is dependent on municipalities and a decline in municipal spending could adversely impact our business. Our contract drilling operations face significant competition from companies with greater financial resources. The loss of or damage to key vendor, customer or sub-contractor relationships would adversely affect our operations. The economic downturn may have impacts on our business and financial condition that we currently cannot predict. We are reliant upon future cash flows from operations, land investment segment development rights and percentage of sales proceeds, and available credit as a source of liquidity. If estimated cash inflows do not occur timely or are less than current expectations, our liquidity may be negatively impacted. Our future level of indebtedness and the terms of our financing arrangements may adversely affect our operations, financial condition and limit our growth. The price of our common stock has been volatile and could continue to fluctuate substantially. Failure to retain key personnel could hurt our operations. A small number of stockholders, including our executive officers, own a significant amount of our common stock and have influence over our business regardless of the opposition of other stockholders. We believe that the currently enacted requirement to comply with Section 404(b) of the Sarbanes-Oxley Act in fiscal 2010 will result in additional expenses and may divert management s attention. Adverse changes in actuarial assumptions used to calculate retirement plan costs due to economic or other factors, or lower returns on plan assets could adversely affect Barnwell s results and financial condition. We are involved as a passive minority-interest partner in joint ventures and are subject to risks associated with joint venture partnerships. as a passive minority-interest partner as a passive minority-interest partner

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10048--12/15/2009--BARNWELL_INDUSTRIES_INC