Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.23.3
Business Segment Reporting
 9 Months Ended
Sep. 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 868,000 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.
egment financial results for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2023 2022 2023 2022
Revenues:
Land and resource management $ 109,933  $ 147,215  $ 315,276  $ 393,947 
Water services and operations 48,034  43,896  149,662  120,769 
Total consolidated revenues $ 157,967  $ 191,111  $ 464,938  $ 514,716 
Net income:
Land and resource management $ 82,884  $ 108,188  $ 217,860  $ 285,418 
Water services and operations 22,690  21,649  74,675  61,213 
Total consolidated net income $ 105,574  $ 129,837  $ 292,535  $ 346,631 
Capital expenditures:
Land and resource management $ 47  $ 114  $ 191  $ 339 
Water services and operations 5,196  1,694  10,196  11,816 
Total capital expenditures $ 5,243  $ 1,808  $ 10,387  $ 12,155 
Depreciation, depletion and amortization:
Land and resource management $ 703  $ 567  $ 2,233  $ 1,632 
Water services and operations 2,881  3,350  8,648  10,591 
Total depreciation, depletion and amortization $ 3,584  $ 3,917  $ 10,881  $ 12,223 

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2023 and December 31, 2022 (in thousands):
  September 30,
2023		 December 31,
2022
Assets:    
Land and resource management $ 900,508  $ 735,193 
Water services and operations 178,810  142,234 
Total consolidated assets $ 1,079,318  $ 877,427 
Property, plant and equipment, net:    
Land and resource management $ 5,464  $ 5,998 
Water services and operations 81,136  79,480 
Total consolidated property, plant and equipment, net $ 86,600  $ 85,478