Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.20.2
Business Segment Reporting
 9 Months Ended
Sep. 30, 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 880,000 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 a full-service water offering to operators in the Permian Basin. The revenue streams of this segment principally consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties.
Segment financial results were as follows for the three and nine months ended September 30, 2020 and 2019 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2020 2019 2020 2019
Revenues:
Land and resource management
 $ 49,896  $ 65,076  $ 142,140  $ 284,223 
Water services and operations
 24,487  33,454  86,110  92,941 
Total consolidated revenues $ 74,383  $ 98,530  $ 228,250  $ 377,164 
Net income:
Land and resource management
 $ 34,359  $ 43,911  $ 92,197  $ 204,222 
Water services and operations
 11,916  16,111  39,061  45,384 
Total consolidated net income $ 46,275  $ 60,022  $ 131,258  $ 249,606 
Capital expenditures:
Land and resource management $ —  $ 29  $ 121  $ 1,445 
Water services and operations 353  4,949  4,205  26,134 
Total capital expenditures $ 353  $ 4,978  $ 4,326  $ 27,579 
Depreciation, depletion and amortization:
Land and resource management
 $ 505  $ 257  $ 1,192  $ 695 
Water services and operations
 3,255  2,374  9,581  4,591 
Total depreciation, depletion and amortization $ 3,760  $ 2,631  $ 10,773  $ 5,286 

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2020 and December 31, 2019 (in thousands):
September 30, 2020 December 31, 2019
Assets:
Land and resource management
 $ 490,026  $ 467,758 
Water services and operations
 111,155  130,418 
Total consolidated assets $ 601,181  $ 598,176 
Property, plant and equipment, net:
Land and resource management
 $ 3,736  $ 4,359 
Water services and operations
 78,594  83,964 
Total consolidated property, plant and equipment, net $ 82,330  $ 88,323