Quarterly report [Sections 13 or 15(d)]

Business Segment Reporting (Tables)

v3.25.3
Business Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Schedule of Segment Financial Results
The following tables present segment financial results for Land and Resource Management (“LRM”) and Water Service and Operations (“WSO”) and the reconciliation to consolidated financial results for the three and nine months ended September 30, 2025 and 2024 (in thousands):
  Three Months Ended September 30,
  2025 2024
LRM WSO Consolidated LRM WSO Consolidated
Revenues:
Oil and gas royalties $ 108,705  $ —  $ 108,705  $ 94,444  $ —  $ 94,444 
Water sales —  44,578  44,578  —  36,211  36,211 
Produced water royalties —  32,268  32,268  —  27,727  27,727 
Easements and other surface-related income 12,741  3,974  16,715  11,303  2,977  14,280 
Land sales 819  —  819  901  —  901 
Total revenues 122,265  80,820  203,085  106,648  66,915  173,563 
Expenses:
Salaries and related employee expenses 7,298  7,089  14,387  7,182  6,848  14,030 
Water service-related expenses —  16,428  16,428  —  11,731  11,731 
General and administrative expenses 3,431  2,160  5,591  10,359  2,161  12,520 
Depreciation, depletion and amortization 10,453  4,510  14,963  2,135  3,627  5,762 
Ad valorem and other taxes 2,614  11  2,625  2,189  —  2,189 
Total operating expenses 23,796  30,198  53,994  21,865  24,367  46,232 
Operating income 98,469  50,622  149,091  84,783  42,548  127,331 
Other income, net 4,827  1,261  6,088  6,446  1,640  8,086 
Income before income taxes 103,296  51,883  155,179  91,229  44,188  135,417 
Income tax expense 22,536  11,405  33,941  19,359  9,464  28,823 
Net income $ 80,760  $ 40,478  $ 121,238  $ 71,870  $ 34,724  $ 106,594 
  Nine Months Ended September 30,
  2025 2024
LRM WSO Consolidated LRM WSO Consolidated
Revenues:
Oil and gas royalties $ 314,956  $ —  $ 314,956  $ 276,377  $ —  $ 276,377 
Water sales —  108,968  108,968  —  113,987  113,987 
Produced water royalties —  90,705  90,705  —  76,034  76,034 
Easements and other surface-related income 61,568  9,595  71,163  43,643  7,853  51,496 
Land sales 819  —  819  2,145  —  2,145 
Total revenues 377,343  209,268  586,611  322,165  197,874  520,039 
Expenses:
Salaries and related employee expenses 21,727  21,304  43,031  20,127  19,135  39,262 
Water service-related expenses —  36,005  36,005  —  36,767  36,767 
General and administrative expenses 10,392  6,964  17,356  21,022  6,709  27,731 
Depreciation, depletion and amortization 27,279  13,324  40,603  3,641  10,054  13,695 
Ad valorem and other taxes 6,667  34  6,701  5,988  2  5,990 
Total operating expenses 66,065  77,631  143,696  50,778  72,667  123,445 
Operating income 311,278  131,637  442,915  271,387  125,207  396,594 
Other income, net 12,399  3,250  15,649  25,390  5,859  31,249 
Income before income taxes 323,677  134,887  458,564  296,777  131,066  427,843 
Income tax expense 70,804  29,730  100,534  63,807  28,436  92,243 
Net income $ 252,873  $ 105,157  $ 358,030  $ 232,970  $ 102,630  $ 335,600 

Interest income by segment is included in other income, net in the table above.
Schedule of Total Assets and Property, Plant and Equipment
The following tables present purchases of fixed assets, total assets and property, plant and equipment, net by segment for the periods presented (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2025 2024 2025 2024
Purchases of Fixed Assets:
Land and resource management $ 10,050  $ 66  $ 10,214  $ 210 
Water services and operations 10,556  9,767  24,108  21,784 
Total purchases of fixed assets $ 20,606  $ 9,833  $ 34,322  $ 21,994 

  September 30,
2025		 December 31,
2024
Assets:    
Land and resource management $ 1,290,694  $ 1,024,188 
Water services and operations 234,220  223,832 
Total consolidated assets $ 1,524,914  $ 1,248,020 
Property, plant and equipment, net:    
Land and resource management $ 7,666  $ 4,805 
Water services and operations 129,861  117,773 
Total consolidated property, plant and equipment, net $ 137,527  $ 122,578