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Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.20.1
Business Segment Reporting
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract] Ìý
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 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.

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 offering 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 for the three months ended March 31, 2020 and 2019 (in thousands):
Three Months Ended
March 31,
2020 2019
Revenues:
Land and resource management
 $ 56,658Ìý Ìý $ 160,459Ìý Ìý
Water services and operations
 39,936Ìý Ìý 30,865Ìý Ìý
Total consolidated revenues $ 96,594Ìý Ìý $ 191,324Ìý Ìý
Net income:
Land and resource management
 $ 39,118Ìý Ìý $ 123,117Ìý Ìý
Water services and operations
 18,283Ìý Ìý 16,881Ìý Ìý
Total consolidated net income $ 57,401Ìý Ìý $ 139,998Ìý Ìý
Capital expenditures:
Land and resource management
 $ 88Ìý Ìý $ 534Ìý Ìý
Water services and operations
 3,529Ìý Ìý 8,713Ìý Ìý
Total capital expenditures $ 3,617Ìý Ìý $ 9,247Ìý Ìý
Depreciation, depletion and amortization:
Land and resource management
 $ 337Ìý Ìý $ 177Ìý Ìý
Water services and operations
 2,998Ìý Ìý 1,027Ìý Ìý
Total depreciation, depletion and amortization $ 3,335Ìý Ìý $ 1,204Ìý Ìý

The following table presents total assets and property, plant and equipment, net by segment as of March 31, 2020 and December 31, 2019 (in thousands):
March 31, 2020 December 31, 2019
Assets:
Land and resource management
 $ 396,004Ìý Ìý $ 467,758Ìý Ìý
Water services and operations
 148,645Ìý Ìý 130,418Ìý Ìý
Total consolidated assets $ 544,649Ìý Ìý $ 598,176Ìý Ìý
Property, plant and equipment, net:
Land and resource management
 $ 4,211Ìý Ìý $ 4,359Ìý Ìý
Water services and operations
 84,498Ìý Ìý 83,964Ìý Ìý
Total consolidated property, plant and equipment, net $ 88,709Ìý Ìý $ 88,323Ìý Ìý