Business Segment Reporting

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Business Segment Reporting

Business Segment Reporting

During the periods presented, we reported our financial performance based on the following segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of our strategies and objectives and provide a framework for timely and rational allocation of resources within businesses. We eliminate any inter-segment revenues and expenses upon consolidation.

The Land and Resource Management segment encompasses the business of managing our approximately 868,000 surface acres of land and our oil and gas royalty interests in West Texas, principally concentrated in the Permian Basin. The revenue streams of this segment consist primarily of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales.

The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin. The revenue streams of this segment primarily consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties.

egment financial results for the three and nine months ended September 30, 2023 and 2022 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Land and resource management	$	109,933	$	147,215	$	315,276	$	393,947
Water services and operations	48,034		43,896		149,662		120,769
Total consolidated revenues	$	157,967	$	191,111	$	464,938	$	514,716
Net income:
Land and resource management	$	82,884	$	108,188	$	217,860	$	285,418
Water services and operations	22,690		21,649		74,675		61,213
Total consolidated net income	$	105,574	$	129,837	$	292,535	$	346,631
Capital expenditures:
Land and resource management	$	47	$	114	$	191	$	339
Water services and operations	5,196		1,694		10,196		11,816
Total capital expenditures	$	5,243	$	1,808	$	10,387	$	12,155
Depreciation, depletion and amortization:
Land and resource management	$	703	$	567	$	2,233	$	1,632
Water services and operations	2,881		3,350		8,648		10,591
Total depreciation, depletion and amortization	$	3,584	$	3,917	$	10,881	$	12,223

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2023 and December 31, 2022 (in thousands):

	September 30, 2023		December 31, 2022
Assets:
Land and resource management	$	900,508	$	735,193
Water services and operations	178,810		142,234
Total consolidated assets	$	1,079,318	$	877,427
Property, plant and equipment, net:
Land and resource management	$	5,464	$	5,998
Water services and operations	81,136		79,480
Total consolidated property, plant and equipment, net	$	86,600	$	85,478