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Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.21.2
Business Segment Reporting
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract] Ìý
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 880,000 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 nine months ended September 30, 2021 and 2020 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Revenues:
Land and resource management
 $ 86,792Ìý $ 49,896Ìý $ 211,823Ìý $ 142,150Ìý
Water services and operations
 36,901Ìý 24,487Ìý 91,957Ìý 86,110Ìý
Total consolidated revenues $ 123,693Ìý $ 74,383Ìý $ 303,780Ìý $ 228,260Ìý
Net income:
Land and resource management
 $ 65,292Ìý $ 34,359Ìý $ 150,248Ìý $ 92,197Ìý
Water services and operations
 18,545Ìý 11,916Ìý 40,687Ìý 39,061Ìý
Total consolidated net income $ 83,837Ìý $ 46,275Ìý $ 190,935Ìý $ 131,258Ìý
Capital expenditures:
Land and resource management $ 4,528Ìý $ —Ìý $ 4,541Ìý $ 121Ìý
Water services and operations 2,059Ìý 353Ìý 6,958Ìý 4,205Ìý
Total capital expenditures $ 6,587Ìý $ 353Ìý $ 11,499Ìý $ 4,326Ìý
Depreciation, depletion and amortization:
Land and resource management
 $ 363Ìý $ 505Ìý $ 1,299Ìý $ 1,192Ìý
Water services and operations
 3,503Ìý 3,255Ìý 10,263Ìý 9,581Ìý
Total depreciation, depletion and amortization $ 3,866Ìý $ 3,760Ìý $ 11,562Ìý $ 10,773Ìý

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2021 and December 31, 2020 (in thousands):
September 30, 2021 December 31, 2020
Assets:
Land and resource management
 $ 570,800Ìý $ 460,053Ìý
Water services and operations
 124,817Ìý 111,582Ìý
Total consolidated assets $ 695,617Ìý $ 571,635Ìý
Property, plant and equipment, net:
Land and resource management
 $ 6,786Ìý $ 3,527Ìý
Water services and operations
 72,418Ìý 75,740Ìý
Total consolidated property, plant and equipment, net $ 79,204Ìý $ 79,267Ìý