Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.21.2
Business Segment Reporting
 9 Months Ended
Sep. 30, 2021
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, 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.
Segment financial results were as follows for the three and nine months ended September 30, 2021 and 2020 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Revenues:
Land and resource management
 $ 86,792  $ 49,896  $ 211,823  $ 142,150 
Water services and operations
 36,901  24,487  91,957  86,110 
Total consolidated revenues $ 123,693  $ 74,383  $ 303,780  $ 228,260 
Net income:
Land and resource management
 $ 65,292  $ 34,359  $ 150,248  $ 92,197 
Water services and operations
 18,545  11,916  40,687  39,061 
Total consolidated net income $ 83,837  $ 46,275  $ 190,935  $ 131,258 
Capital expenditures:
Land and resource management $ 4,528  $ —  $ 4,541  $ 121 
Water services and operations 2,059  353  6,958  4,205 
Total capital expenditures $ 6,587  $ 353  $ 11,499  $ 4,326 
Depreciation, depletion and amortization:
Land and resource management
 $ 363  $ 505  $ 1,299  $ 1,192 
Water services and operations
 3,503  3,255  10,263  9,581 
Total depreciation, depletion and amortization $ 3,866  $ 3,760  $ 11,562  $ 10,773 

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2021 and December 31, 2020 (in thousands):
September 30, 2021 December 31, 2020
Assets:
Land and resource management
 $ 570,800  $ 460,053 
Water services and operations
 124,817  111,582 
Total consolidated assets $ 695,617  $ 571,635 
Property, plant and equipment, net:
Land and resource management
 $ 6,786  $ 3,527 
Water services and operations
 72,418  75,740 
Total consolidated property, plant and equipment, net $ 79,204  $ 79,267