Annual report pursuant to Section 13 and 15(d)

Business Segment Reporting

v3.22.0.1
Business Segment Reporting
 12 Months Ended
Dec. 31, 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 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.

Segment financial results were as follows (in thousands):
  Years Ended December 31,
  2021 2020 2019
Revenues:      
Land and resource management $ 320,387  $ 195,142  $ 363,328 
Water services and operations 130,571  107,422  127,168 
Total consolidated revenues $ 450,958  $ 302,564  $ 490,496 
Net income:      
Land and resource management $ 208,897  $ 127,977  $ 258,366 
Water services and operations 61,083  48,072  60,362 
Total consolidated net income $ 269,980  $ 176,049  $ 318,728 
Capital Expenditures:      
Land and resource management $ 4,688  $ 152  $ 1,603 
Water services and operations 11,727  4,934  30,606 
Total capital expenditures $ 16,415  $ 5,086  $ 32,209 
Depreciation, depletion and amortization:      
Land and resource management $ 2,397  $ 1,514  $ 1,201 
Water services and operations
 13,860  12,881  7,705 
Total depreciation, depletion and amortization $ 16,257  $ 14,395  $ 8,906 
The following table presents total assets and property, plant and equipment, net by segment (in thousands):

  December 31, 2021 December 31, 2020
Assets:    
Land and resource management $ 635,338  $ 460,053 
Water services and operations 128,726  111,582 
Total consolidated assets $ 764,064  $ 571,635 
Property, plant and equipment, net:    
Land and resource management $ 6,639  $ 3,527 
Water services and operations 73,083  75,740 
Total consolidated property, plant and equipment, net $ 79,722  $ 79,267