Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.22.2.2
Business Segment Reporting
 9 Months Ended
Sep. 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 nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2022 2021 2022 2021
Revenues:
Land and resource management $ 147,215  $ 86,792  $ 393,947  $ 211,823 
Water services and operations 43,896  36,901  120,769  91,957 
Total consolidated revenues $ 191,111  $ 123,693  $ 514,716  $ 303,780 
Net income:
Land and resource management $ 108,188  $ 65,292  $ 285,418  $ 150,248 
Water services and operations 21,649  18,545  61,213  40,687 
Total consolidated net income $ 129,837  $ 83,837  $ 346,631  $ 190,935 
Capital expenditures:
Land and resource management $ 114  $ 4,528  $ 339  $ 4,541 
Water services and operations 1,694  2,059  11,816  6,958 
Total capital expenditures $ 1,808  $ 6,587  $ 12,155  $ 11,499 
Depreciation, depletion and amortization:
Land and resource management $ 567  $ 363  $ 1,632  $ 1,299 
Water services and operations 3,350  3,503  10,591  10,263 
Total depreciation, depletion and amortization $ 3,917  $ 3,866  $ 12,223  $ 11,562 

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2022 and December 31, 2021 (in thousands):
  September 30,
2022		 December 31,
2021
Assets:    
Land and resource management $ 676,205  $ 635,338 
Water services and operations 152,769  128,726 
Total consolidated assets $ 828,974  $ 764,064 
Property, plant and equipment, net:    
Land and resource management $ 6,197  $ 6,639 
Water services and operations 75,359  73,083 
Total consolidated property, plant and equipment, net $ 81,556  $ 79,722