Annual report pursuant to Section 13 and 15(d)

Business Segment Reporting

v3.22.4
Business Segment Reporting
 12 Months Ended
Dec. 31, 2022
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 874,000 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 (in thousands):
  Years Ended December 31,
  2022 2021 2020
Revenues:      
Land and resource management $ 506,975  $ 320,387  $ 195,142 
Water services and operations 160,447  130,571  107,422 
Total consolidated revenues $ 667,422  $ 450,958  $ 302,564 
Net income:      
Land and resource management $ 365,041  $ 208,897  $ 127,977 
Water services and operations 81,321  61,083  48,072 
Total consolidated net income $ 446,362  $ 269,980  $ 176,049 
Capital Expenditures:      
Land and resource management $ 393  $ 4,688  $ 152 
Water services and operations 18,574  11,727  4,934 
Total capital expenditures $ 18,967  $ 16,415  $ 5,086 
Depreciation, depletion and amortization:      
Land and resource management $ 2,234  $ 2,397  $ 1,514 
Water services and operations
 13,142  13,860  12,881 
Total depreciation, depletion and amortization $ 15,376  $ 16,257  $ 14,395 

The following table presents total assets and property, plant and equipment, net by segment (in thousands):

  December 31, 2022 December 31, 2021
Assets:    
Land and resource management $ 735,193  $ 635,338 
Water services and operations 142,234  128,726 
Total consolidated assets $ 877,427  $ 764,064 
Property, plant and equipment, net:    
Land and resource management $ 5,998  $ 6,639 
Water services and operations 79,480  73,083 
Total consolidated property, plant and equipment, net $ 85,478  $ 79,722