Barnwell Industries Announces Intent to Sell Water Well Drilling Subsidiary
The Company Wants to Re-focus on Oil and Gas

Image via Jennifer Sharp from Getty Images Signature
Barnwell Industries, Inc. (NYSE: BRN) is taking a significant step toward reshaping its business by moving to sell its water well drilling subsidiary, Water Resources International (WRI). The company announced it has signed a non-binding letter of intent to divest WRI for $1.05 million, signaling a renewed focus on its core oil and gas exploration operations.
The planned sale represents about 7.7% of Barnwell’s $13.57 million market capitalization. Under the terms of the agreement, the buyer would provide an initial payment at closing, with the remainder distributed in installments through September 15, 2025. While this payment structure offers a predictable cash flow, it also introduces potential collection risks.
Barnwell has owned WRI since 1980, making the decision to sell a notable shift in its long-term strategy. The company has framed the move as part of a broader effort to streamline its operations and reallocate resources to strengthen its presence in the energy sector.
Although the financial impact of the sale is relatively modest, industry observers suggest it could be part of a larger effort to optimize Barnwell’s portfolio. However, with the agreement still non-binding, uncertainty remains over whether the deal will proceed as planned.
Barnwell has not disclosed potential buyers or specific details regarding how it plans to reinvest the proceeds. However, the company has emphasized its commitment to delivering long-term value for shareholders as it continues to evaluate strategic opportunities in the energy market.
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