Quarterly report [Sections 13 or 15(d)]

Business Segment Reporting (Tables)

v3.26.3
Business Segment Reporting (Tables)
 9 Months Ended
Sep. 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 nine months ended September 30, 2026 and 2025 (in thousands):
Three Months Ended September 30,
2026 2025
LRM WSO Consolidated LRM WSO Consolidated
Revenues:
Oil and gas royalties $ 167,275  $ —  $ 167,275  $ 108,705  $ —  $ 108,705 
Water sales —  28,437  28,437  —  44,578  44,578 
Produced water royalties —  41,386  41,386  —  32,268  32,268 
Easements and other surface-related income 34,182  1,999  36,181  12,741  3,974  16,715 
Land sales 111  —  111  819  —  819 
Total revenues 201,568  71,822  273,390  122,265  80,820  203,085 
Expenses:
Salaries and related employee expenses 9,247  7,920  17,167  7,298  7,089  14,387 
Water service-related expenses —  13,817  13,817  —  16,428  16,428 
General and administrative expenses 7,247  3,353  10,600  3,431  2,160  5,591 
Depreciation, depletion and amortization 17,647  5,186  22,833  10,453  4,510  14,963 
Ad valorem and other taxes 1,149  41  1,190  2,614  11  2,625 
Total operating expenses 35,290  30,317  65,607  23,796  30,198  53,994 
Operating income 166,278  41,505  207,783  98,469  50,622  149,091 
Interest expense (785) (196) (981) —  —  — 
Other income, net 2,728  862  3,590  4,827  1,261  6,088 
Income before income taxes 168,221  42,171  210,392  103,296  51,883  155,179 
Income tax expense 34,456  8,568  43,024  22,536  11,405  33,941 
Net income $ 133,765  $ 33,603  $ 167,368  $ 80,760  $ 40,478  $ 121,238 
Nine Months Ended September 30,
2026 2025
LRM WSO Consolidated LRM WSO Consolidated
Revenues:
Oil and gas royalties $ 431,031  $ —  $ 431,031  $ 314,956  $ —  $ 314,956 
Water sales —  115,033  115,033  —  108,968  108,968 
Produced water royalties —  111,990  111,990  —  90,705  90,705 
Easements and other surface-related income 66,909  10,249  77,158  61,568  9,595  71,163 
Land sales 21,055  —  21,055  819  —  819 
Total revenues 518,995  237,272  756,267  377,343  209,268  586,611 
Expenses:
Salaries and related employee expenses 25,152  22,564  47,716  21,727  21,304  43,031 
Water service-related expenses —  39,674  39,674  —  36,005  36,005 
General and administrative expenses 17,987  9,248  27,235  10,392  6,964  17,356 
Depreciation, depletion and amortization 38,536  14,979  53,515  27,279  13,324  40,603 
Ad valorem and other taxes 5,958  241  6,199  6,667  34  6,701 
Total operating expenses 87,633  86,706  174,339  66,065  77,631  143,696 
Operating income 431,362  150,566  581,928  311,278  131,637  442,915 
Interest expense (2,357) (589) (2,946) —  —  — 
Other income, net 6,449  2,223  8,672  12,399  3,250  15,649 
Income before income taxes 435,454  152,200  587,654  323,677  134,887  458,564 
Income tax expense 91,334  32,120  123,454  70,804  29,730  100,534 
Net income $ 344,120  $ 120,080  $ 464,200  $ 252,873  $ 105,157  $ 358,030 
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,
2026 2025 2026 2025
Purchases of Fixed Assets:
Land and resource management $ 711  $ 10,050  $ 1,004  $ 10,214 
Water services and operations 13,778  10,556  41,326  24,108 
Total purchases of fixed assets $ 14,489  $ 20,606  $ 42,330  $ 34,322 

September 30,
2026		 December 31,
2025
Assets:
Land and resource management $ 1,689,882  $ 1,332,180 
Water services and operations 298,182  291,098 
Total consolidated assets $ 1,988,064  $ 1,623,278 
Property, plant and equipment, net:
Land and resource management $ 7,412  $ 7,336 
Water services and operations 184,380  157,202 
Total consolidated property, plant and equipment, net $ 191,792  $ 164,538