Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.23.2
Business Segment Reporting
 6 Months Ended
Jun. 30, 2023
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 886,000 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, 2023 and 2022 (in thousands):
Three Months Ended
June 30,		 Six Months Ended
June 30,
2023 2022 2023 2022
Revenues:
Land and resource management $ 101,320  $ 133,385  $ 205,343  $ 246,732 
Water services and operations 59,289  42,885  101,628  76,873 
Total consolidated revenues $ 160,609  $ 176,270  $ 306,971  $ 323,605 
Net income:
Land and resource management $ 69,633  $ 96,074  $ 134,976  $ 177,230 
Water services and operations 30,760  22,820  51,985  39,564 
Total consolidated net income $ 100,393  $ 118,894  $ 186,961  $ 216,794 
Capital expenditures:
Land and resource management $ (31) $ 103  $ 144  $ 225 
Water services and operations 1,402  7,239  5,000  10,122 
Total capital expenditures $ 1,371  $ 7,342  $ 5,144  $ 10,347 
Depreciation, depletion and amortization:
Land and resource management $ 912  $ 529  $ 1,530  $ 1,065 
Water services and operations 2,981  3,651  5,767  7,241 
Total depreciation, depletion and amortization $ 3,893  $ 4,180  $ 7,297  $ 8,306 

The following table presents total assets and property, plant and equipment, net by segment as of June 30, 2023 and December 31, 2022 (in thousands):
  June 30,
2023		 December 31,
2022
Assets:    
Land and resource management $ 845,847  $ 735,193 
Water services and operations 155,477  142,234 
Total consolidated assets $ 1,001,324  $ 877,427 
Property, plant and equipment, net:    
Land and resource management $ 5,607  $ 5,998 
Water services and operations 78,717  79,480 
Total consolidated property, plant and equipment, net $ 84,324  $ 85,478