Annual report pursuant to Section 13 and 15(d)

Business Segment Reporting

v3.20.4
Business Segment Reporting
 12 Months Ended
Dec. 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 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 880,000 acres of land and our oil and gas royalty interests in West Texas. 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 offerings 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 (in thousands):
  Years Ended December 31,
  2020 2019 2018
Revenues:      
Land and resource management $ 195,132  $ 363,328  $ 211,476 
Water services and operations 107,422  127,168  88,744 
Total consolidated revenues $ 302,554  $ 490,496  $ 300,220 
Net income:      
Land and resource management $ 127,977  $ 258,366  $ 159,611 
Water services and operations 48,072  60,362  50,125 
Total consolidated net income $ 176,049  $ 318,728  $ 209,736 
Capital Expenditures:      
Land and resource management $ 152  $ 1,603  $ 2,790 
Water services and operations 4,934  30,606  45,088 
Total capital expenditures $ 5,086  $ 32,209  $ 47,878 
Depreciation, depletion and amortization:      
Land and resource management $ 1,514  $ 1,201  $ 506 
Water services and operations
 12,881  7,705  2,077 
Total depreciation, depletion and amortization $ 14,395  $ 8,906  $ 2,583 

The following table presents total assets and property, plant and equipment, net by segment (in thousands):

  December 31, 2020 December 31, 2019
Assets:    
Land and resource management $ 460,053  $ 467,758 
Water services and operations 111,582  130,418 
Total consolidated assets $ 571,635  $ 598,176 
Property, plant and equipment, net:    
Land and resource management $ 3,527  $ 4,359 
Water services and operations 75,740  83,964 
Total consolidated property, plant and equipment, net $ 79,267  $ 88,323