Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.22.2
Business Segment Reporting
 6 Months Ended
Jun. 30, 2022
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 for the three and six months ended June 30, 2022 and 2021 (in thousands):
Three Months Ended
June 30,		 Six Months Ended
June 30,
2022 2021 2022 2021
Revenues:
Land and resource management $ 133,385  $ 67,241  $ 246,732  $ 125,031 
Water services and operations 42,885  28,691  76,873  55,056 
Total consolidated revenues $ 176,270  $ 95,932  $ 323,605  $ 180,087 
Net income:
Land and resource management $ 96,074  $ 45,443  $ 177,230  $ 84,956 
Water services and operations 22,820  11,603  39,564  22,142 
Total consolidated net income $ 118,894  $ 57,046  $ 216,794  $ 107,098 
Capital expenditures:
Land and resource management $ 103  $ 13  $ 225  $ 13 
Water services and operations 7,239  2,161  10,122  4,899 
Total capital expenditures $ 7,342  $ 2,174  $ 10,347  $ 4,912 
Depreciation, depletion and amortization:
Land and resource management $ 529  $ 442  $ 1,065  $ 936 
Water services and operations 3,651  3,416  7,241  6,760 
Total depreciation, depletion and amortization $ 4,180  $ 3,858  $ 8,306  $ 7,696 
The following table presents total assets and property, plant and equipment, net by segment as of June 30, 2022 and December 31, 2021 (in thousands):

  June 30,
2022		 December 31,
2021
Assets:    
Land and resource management $ 618,716  $ 635,338 
Water services and operations 145,992  128,726 
Total consolidated assets $ 764,708  $ 764,064 
Property, plant and equipment, net:    
Land and resource management $ 6,355  $ 6,639 
Water services and operations 77,089  73,083 
Total consolidated property, plant and equipment, net $ 83,444  $ 79,722