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Annual report pursuant to Section 13 and 15(d)

Business Segment Reporting

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Business Segment Reporting
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract] Ìý
Business Segment Reporting Business Segment Reporting
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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 strategies and objectives of the Trust and provide a framework for timely and rational allocation of resources within businesses. We eliminate any inter-segment revenues and expenses upon consolidation.
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The Land and Resource Management segment encompasses the business of managing approximately 900,000 acres of land and related resources in West Texas owned by the Trust. 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 full-service water offerings to operators in the Permian Basin. The revenue streams of this segment consist of revenue generated from sales of sourced and treated water as well as revenue from royalties on water service-related activity.

Segment financial results were as follows (in thousands):
Ìý Years Ended December 31,
Ìý 2019 2018 2017
Revenues: Ìý Ìý Ìý
Land and resource management $ 363,328Ìý Ìý $ 211,476Ìý Ìý $ 123,340Ìý Ìý
Water services and operations 127,168Ìý Ìý 88,744Ìý Ìý 31,294Ìý Ìý
Total consolidated revenues $ 490,496Ìý Ìý $ 300,220Ìý Ìý $ 154,634Ìý Ìý
Net income: Ìý Ìý Ìý
Land and resource management $ 258,366Ìý Ìý $ 159,611Ìý Ìý $ 78,468Ìý Ìý
Water services and operations 60,362Ìý Ìý 50,125Ìý Ìý 18,763Ìý Ìý
Total consolidated net income $ 318,728Ìý Ìý $ 209,736Ìý Ìý $ 97,231Ìý Ìý
Capital Expenditures: Ìý Ìý Ìý
Land and resource management $ 1,603Ìý Ìý $ 2,790Ìý Ìý $ 920Ìý Ìý
Water services and operations 30,606Ìý Ìý 45,088Ìý Ìý 17,827Ìý Ìý
Total capital expenditures $ 32,209Ìý Ìý $ 47,878Ìý Ìý $ 18,747Ìý Ìý
Depreciation, depletion and amortization: Ìý Ìý Ìý
Land and resource management $ 1,201Ìý Ìý $ 506Ìý Ìý $ 136Ìý Ìý
Water services and operations
 7,705Ìý Ìý 2,077Ìý Ìý 240Ìý Ìý
Total depreciation, depletion and amortization $ 8,906Ìý Ìý $ 2,583Ìý Ìý $ 376Ìý Ìý

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

Ìý December 31, 2019 December 31, 2018
Assets: Ìý Ìý
Land and resource management $ 467,758Ìý Ìý $ 198,922Ìý Ìý
Water services and operations 130,418Ìý Ìý 86,153Ìý Ìý
Total consolidated assets $ 598,176Ìý Ìý $ 285,075Ìý Ìý
Property, plant and equipment, net: Ìý Ìý
Land and resource management $ 4,359Ìý Ìý $ 3,720Ìý Ìý
Water services and operations 83,964Ìý Ìý 61,082Ìý Ìý
Total consolidated property, plant and equipment, net $ 88,323Ìý Ìý $ 64,802Ìý Ìý