Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.24.3
Business Segment Reporting
 9 Months Ended
Sep. 30, 2024
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 873,000 surface acres of land and our approximately 199,000 NRA of oil and gas royalty interests, 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.
The following table presents segment financial results for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2024 2023 2024 2023
Revenues:
Land and resource management $ 106,648  $ 109,933  $ 322,165  $ 315,276 
Water services and operations 66,915  48,034  197,874  149,662 
Total consolidated revenues $ 173,563  $ 157,967  $ 520,039  $ 464,938 
Net income:
Land and resource management $ 71,870  $ 82,884  $ 232,970  $ 217,860 
Water services and operations 34,724  22,690  102,630  74,675 
Total consolidated net income $ 106,594  $ 105,574  $ 335,600  $ 292,535 
Capital expenditures:
Land and resource management $ 66  $ 47  $ 210  $ 191 
Water services and operations 9,767  5,196  21,784  10,196 
Total capital expenditures $ 9,833  $ 5,243  $ 21,994  $ 10,387 
Depreciation, depletion and amortization:
Land and resource management $ 2,135  $ 703  $ 3,641  $ 2,233 
Water services and operations 3,627  2,881  10,054  8,648 
Total depreciation, depletion and amortization $ 5,762  $ 3,584  $ 13,695  $ 10,881 

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2024 and December 31, 2023 (in thousands):
  September 30,
2024		 December 31,
2023
Assets:    
Land and resource management $ 954,411  $ 975,136 
Water services and operations 221,158  181,262 
Total consolidated assets $ 1,175,569  $ 1,156,398 
Property, plant and equipment, net:    
Land and resource management $ 4,937  $ 5,322 
Water services and operations 114,171  84,265 
Total consolidated property, plant and equipment, net $ 119,108  $ 89,587