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Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.23.2
Business Segment Reporting
6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract] Ìý
Business Segment Reporting Business Segment Reporting
Ìý
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.
Ìý
The Land and Resource Management segment encompasses the business of managing our approximately 886,000 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.
Segment financial results were as follows for the three and six months ended JuneÌý30, 2023 and 2022 (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2023 2022 2023 2022
Revenues:
Land and resource management $ 101,320Ìý $ 133,385Ìý $ 205,343Ìý $ 246,732Ìý
Water services and operations 59,289Ìý 42,885Ìý 101,628Ìý 76,873Ìý
Total consolidated revenues $ 160,609Ìý $ 176,270Ìý $ 306,971Ìý $ 323,605Ìý
Net income:
Land and resource management $ 69,633Ìý $ 96,074Ìý $ 134,976Ìý $ 177,230Ìý
Water services and operations 30,760Ìý 22,820Ìý 51,985Ìý 39,564Ìý
Total consolidated net income $ 100,393Ìý $ 118,894Ìý $ 186,961Ìý $ 216,794Ìý
Capital expenditures:
Land and resource management $ (31) $ 103Ìý $ 144Ìý $ 225Ìý
Water services and operations 1,402Ìý 7,239Ìý 5,000Ìý 10,122Ìý
Total capital expenditures $ 1,371Ìý $ 7,342Ìý $ 5,144Ìý $ 10,347Ìý
Depreciation, depletion and amortization:
Land and resource management $ 912Ìý $ 529Ìý $ 1,530Ìý $ 1,065Ìý
Water services and operations 2,981Ìý 3,651Ìý 5,767Ìý 7,241Ìý
Total depreciation, depletion and amortization $ 3,893Ìý $ 4,180Ìý $ 7,297Ìý $ 8,306Ìý

The following table presents total assets and property, plant and equipment, net by segment as of JuneÌý30, 2023 and December 31, 2022 (in thousands):
Ìý June 30,
2023
December 31,
2022
Assets: Ìý Ìý
Land and resource management $ 845,847Ìý $ 735,193Ìý
Water services and operations 155,477Ìý 142,234Ìý
Total consolidated assets $ 1,001,324Ìý $ 877,427Ìý
Property, plant and equipment, net: Ìý Ìý
Land and resource management $ 5,607Ìý $ 5,998Ìý
Water services and operations 78,717Ìý 79,480Ìý
Total consolidated property, plant and equipment, net $ 84,324Ìý $ 85,478Ìý