Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

Business Segment Reporting
3 Months Ended
Mar. 31, 2024
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 approximate 868,000 surface acres of land and our approximate 195,000 NRA of 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.
egment financial results for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended
March 31,
2024 2023
Land and resource management $ 111,485  $ 104,023 
Water services and operations 62,657  42,339 
Total consolidated revenues $ 174,142  $ 146,362 
Net income:
Land and resource management $ 80,971  $ 65,343 
Water services and operations 33,446  21,225 
Total consolidated net income $ 114,417  $ 86,568 
Capital expenditures:
Land and resource management $ 51  $ 175 
Water services and operations 5,611  3,598 
Total capital expenditures $ 5,662  $ 3,773 
Depreciation, depletion and amortization:
Land and resource management $ 693  $ 618 
Water services and operations 3,147  2,786 
Total depreciation, depletion and amortization $ 3,840  $ 3,404 
The following table presents total assets and property, plant and equipment, net by segment as of March 31, 2024 and December 31, 2023 (in thousands):
  March 31,
December 31,
Land and resource management $ 1,069,160  $ 975,136 
Water services and operations 190,010  181,262 
Total consolidated assets $ 1,259,170  $ 1,156,398 
Property, plant and equipment, net:    
Land and resource management $ 5,179  $ 5,322 
Water services and operations 87,021  84,265 
Total consolidated property, plant and equipment, net $ 92,200  $ 89,587