Quarterly report [Sections 13 or 15(d)]

Business Segment Reporting (Tables)

v3.26.1
Business Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Financial Results
The following tables present segment financial results for Land and Resource Management (“LRM”) and Water Services and Operations (“WSO”) and the reconciliation to consolidated financial results for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,
2026 2025
LRM WSO Consolidated LRM WSO Consolidated
Revenues:
Oil and gas royalties $ 145,589  $ —  $ 145,589  $ 95,006  $ —  $ 95,006 
Water sales —  39,733  39,733  —  25,577  25,577 
Produced water royalties —  37,075  37,075  —  30,737  30,737 
Easements and other surface-related income 18,278  5,384  23,662  33,491  2,732  36,223 
Land sales —  —  —  —  —  — 
Total revenues 163,867  82,192  246,059  128,497  59,046  187,543 
Expenses:
Salaries and related employee expenses 8,347  7,215  15,562  7,025  7,047  14,072 
Water service-related expenses —  11,570  11,570  —  8,451  8,451 
General and administrative expenses 5,245  2,759  8,004  3,648  2,045  5,693 
Depreciation, depletion and amortization 11,695  4,944  16,639  9,137  4,562  13,699 
Ad valorem and other taxes 2,279  188  2,467  1,864  13  1,877 
Total operating expenses 27,566  26,676  54,242  21,674  22,118  43,792 
Operating income 136,301  55,516  191,817  106,823  36,928  143,751 
Interest expense (779) (194) (973) —  —  — 
Other income, net 2,140  714  2,854  4,156  1,084  5,240 
Income before income taxes 137,662  56,036  193,698  110,979  38,012  148,991 
Income tax expense 28,230  11,538  39,768  24,410  8,441  32,851 
Net income $ 109,432  $ 44,498  $ 153,930  $ 86,569  $ 29,571  $ 116,140 
Six Months Ended June 30,
2026 2025
LRM WSO Consolidated LRM WSO Consolidated
Revenues:
Oil and gas royalties $ 263,756  $ —  $ 263,756  $ 206,251  $ —  $ 206,251 
Water sales —  86,596  86,596  —  64,390  64,390 
Produced water royalties —  70,604  70,604  —  58,437  58,437 
Easements and other surface-related income 32,727  8,250  40,977  48,827  5,621  54,448 
Land sales 20,944  —  20,944  —  —  — 
Total revenues 317,427  165,450  482,877  255,078  128,448  383,526 
Expenses:
Salaries and related employee expenses 15,905  14,644  30,549  14,429  14,215  28,644 
Water service-related expenses —  25,857  25,857  —  19,577  19,577 
General and administrative expenses 10,740  5,895  16,635  6,961  4,804  11,765 
Depreciation, depletion and amortization 20,889  9,793  30,682  16,826  8,814  25,640 
Ad valorem and other taxes 4,809  200  5,009  4,053  23  4,076 
Total operating expenses 52,343  56,389  108,732  42,269  47,433  89,702 
Operating income 265,084  109,061  374,145  212,809  81,015  293,824 
Interest expense (1,572) (393) (1,965) —  —  — 
Other income, net 3,721  1,361  5,082  7,572  1,989  9,561 
Income before income taxes 267,233  110,029  377,262  220,381  83,004  303,385 
Income tax expense 56,878  23,552  80,430  48,268  18,325  66,593 
Net income $ 210,355  $ 86,477  $ 296,832  $ 172,113  $ 64,679  $ 236,792 
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
June 30,		 Six Months Ended
June 30,
2026 2025 2026 2025
Purchases of Fixed Assets:
Land and resource management $ 76  $ 161  $ 293  $ 164 
Water services and operations 20,847  3,647  27,548  13,552 
Total purchases of fixed assets $ 20,923  $ 3,808  $ 27,841  $ 13,716 

June 30,
2026		 December 31,
2025
Assets:
Land and resource management $ 1,569,215  $ 1,332,180 
Water services and operations 290,259  291,098 
Total consolidated assets $ 1,859,474  $ 1,623,278 
Property, plant and equipment, net:
Land and resource management $ 7,050  $ 7,336 
Water services and operations 175,827  157,202 
Total consolidated property, plant and equipment, net $ 182,877  $ 164,538