Annual report pursuant to Section 13 and 15(d)

Business Segment Reporting

v3.24.0.1
Business Segment Reporting
 12 Months Ended
Dec. 31, 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 years ended December 31, 2023, 2022 and 2021 were as follows (in thousands):
  Years Ended December 31,
  2023 2022 2021
Revenues:      
Land and resource management $ 432,105  $ 506,975  $ 320,387 
Water services and operations 199,490  160,447  130,571 
Total consolidated revenues $ 631,595  $ 667,422  $ 450,958 
Net income:      
Land and resource management $ 306,706  $ 365,041  $ 208,897 
Water services and operations 98,939  81,321  61,083 
Total consolidated net income $ 405,645  $ 446,362  $ 269,980 
Capital Expenditures:      
Land and resource management $ 241  $ 393  $ 4,688 
Water services and operations 15,190  18,574  11,727 
Total capital expenditures $ 15,431  $ 18,967  $ 16,415 
Depreciation, depletion and amortization:      
Land and resource management $ 3,073  $ 2,234  $ 2,397 
Water services and operations
 11,684  13,142  13,860 
Total depreciation, depletion and amortization $ 14,757  $ 15,376  $ 16,257 
The following table presents total assets and property, plant and equipment, net by segment as of December 31, 2023 and 2022 (in thousands):

  December 31, 2023 December 31, 2022
Assets:    
Land and resource management $ 975,136  $ 735,193 
Water services and operations 181,262  142,234 
Total consolidated assets $ 1,156,398  $ 877,427 
Property, plant and equipment, net:    
Land and resource management $ 5,322  $ 5,998 
Water services and operations 84,265  79,480 
Total consolidated property, plant and equipment, net $ 89,587  $ 85,478