Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.20.1
Business Segment Reporting
 3 Months Ended
Mar. 31, 2020
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 strategies and objectives of the Trust 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 approximately 900,000 acres of land and related resources in West Texas owned by the Trust. 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 full-service water offering to operators in the Permian Basin. The revenue streams of this segment consist of revenue generated from sales of sourced and treated water as well as revenue from royalties on water service-related activity.
Segment financial results were as follows for the three months ended March 31, 2020 and 2019 (in thousands):
Three Months Ended
March 31,
2020 2019
Revenues:
Land and resource management
 $ 56,658    $ 160,459   
Water services and operations
 39,936    30,865   
Total consolidated revenues $ 96,594    $ 191,324   
Net income:
Land and resource management
 $ 39,118    $ 123,117   
Water services and operations
 18,283    16,881   
Total consolidated net income $ 57,401    $ 139,998   
Capital expenditures:
Land and resource management
 $ 88    $ 534   
Water services and operations
 3,529    8,713   
Total capital expenditures $ 3,617    $ 9,247   
Depreciation, depletion and amortization:
Land and resource management
 $ 337    $ 177   
Water services and operations
 2,998    1,027   
Total depreciation, depletion and amortization $ 3,335    $ 1,204   

The following table presents total assets and property, plant and equipment, net by segment as of March 31, 2020 and December 31, 2019 (in thousands):
March 31, 2020 December 31, 2019
Assets:
Land and resource management
 $ 396,004    $ 467,758   
Water services and operations
 148,645    130,418   
Total consolidated assets $ 544,649    $ 598,176   
Property, plant and equipment, net:
Land and resource management
 $ 4,211    $ 4,359   
Water services and operations
 84,498    83,964   
Total consolidated property, plant and equipment, net $ 88,709    $ 88,323