Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.10.0.1
Business Segment Reporting
9 Months Ended
Sep. 30, 2018
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 Service and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of strategies and objectives of the Trust 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 approximately 890,000 acres of land and related resources in West Texas owned by the Trust. The revenue streams of this segment consist primarily of royalties from oil and gas, revenues from easements and leases, and land sales.
The Water Service and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin as well as managing agreements with energy companies and oilfield service businesses to allow such companies to explore for water, drill water wells, construct water-related infrastructure and purchase water sourced from land that we own. The revenue streams of this segment consist of revenue generated from direct sales of water as well as revenues from royalties on water service-related activity.
Segment financial results were as follows for the three and nine months ended September 30, 2018 and 2017 (in thousands):
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
Land and resource management
 
$
47,513

 
$
42,343

 
$
142,642

 
$
93,209

Water service and operations
 
25,655

 
9,634

 
64,377

 
21,468

Total consolidated revenues
 
$
73,168

 
$
51,977

 
$
207,019

 
$
114,677

 
 
 
 
 
 
 
 
 
Net income:
 
 
 
 
 
 
 
 
Land and resource management
 
$
36,385

 
$
27,424

 
$
109,700

 
$
59,535

Water service and operations
 
14,377

 
5,578

 
37,356

 
13,076

Total consolidated net income
 
$
50,762

 
$
33,002

 
$
147,056

 
$
72,611

 
 
 
 
 
 
 
 
 
Capital expenditures
 
 
 
 
 
 
 
 
Land and resource management
 
$
909

 
$
1,682

 
$
2,464

 
$
2,188

Water service and operations
 
7,533

 
2,678

 
37,542

 
5,782

Total capital expenditures
 
$
8,442

 
$
4,360

 
$
40,006

 
$
7,970

 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
Land and resource management
 
$
160

 
$
104

 
$
330

 
$
123

Water service and operations
 
546

 
105

 
1,189

 
190

Total depreciation and amortization
 
$
706

 
$
209

 
$
1,519

 
$
313

 
 
 
 
 
 
 
 
 

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2018 and December 31, 2017 (in thousands):
 
 
September 30, 2018
 
December 31, 2017
Assets:
 
 
 
 
Land and resource management
 
$
141,934

 
$
97,549

Water service and operations
 
77,767

 
22,486

Total consolidated assets
 
$
219,701

 
$
120,035

 
 
 
 
 
Property, plant and equipment, net
 
 
 
 
Land and resource management
 
$
3,567

 
$
1,449

Water service and operations
 
54,422

 
18,067

Total consolidated property, plant and equipment, net
 
$
57,989

 
$
19,516