Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.21.2
Business Segment Reporting
 6 Months Ended
Jun. 30, 2021
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 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 six months ended June 30, 2021 and 2020 (in thousands):

Three Months Ended
June 30,		 Six Months Ended
June 30,
2021 2020 2021 2020
Revenues:
Land and resource management
 $ 67,241  $ 35,597  $ 125,031  $ 92,255 
Water services and operations
 28,691  21,687  55,056  61,623 
Total consolidated revenues $ 95,932  $ 57,284  $ 180,087  $ 153,878 
Net income:
Land and resource management
 $ 45,443  $ 18,721  $ 84,956  $ 57,839 
Water services and operations
 11,603  8,862  22,142  27,145 
Total consolidated net income $ 57,046  $ 27,583  $ 107,098  $ 84,984 
Capital expenditures:
Land and resource management $ 13  $ 33  $ 13  $ 121 
Water services and operations 2,161  323  4,899  3,852 
Total capital expenditures $ 2,174  $ 356  $ 4,912  $ 3,973 
Depreciation, depletion and amortization:
Land and resource management
 $ 442  $ 350  $ 936  $ 687 
Water services and operations
 3,416  3,328  6,760  6,326 
Total depreciation, depletion and amortization $ 3,858  $ 3,678  $ 7,696  $ 7,013 

The following table presents total assets and property, plant and equipment, net by segment as of June 30, 2021 and December 31, 2020 (in thousands):
June 30, 2021 December 31, 2020
Assets:
Land and resource management
 $ 518,917  $ 460,053 
Water services and operations
 114,926  111,582 
Total consolidated assets $ 633,843  $ 571,635 
Property, plant and equipment, net:
Land and resource management
 $ 3,060  $ 3,527 
Water services and operations
 73,857  75,740 
Total consolidated property, plant and equipment, net $ 76,917  $ 79,267