菜創郭肱利 Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Business Segment Reporting

Business Segment Reporting

12 Months Ended

Dec. 31, 2018

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10.	Business Segment Reporting

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In its operation of the business, management, including our chief operating decision makers, reviews certain financial information, including segmented internal profit and loss statements prepared in accordance with GAAP. During the periods presented, we reported our financial performance based on the following segments: Land and Resource Management and Water Service 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 of royalties from oil and gas, land sales, and revenues from easements and leases.

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The Water Service and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin as well as managing agreements with energy companies and oilfield service businesses to allow such companies to explore for water, drill water wells, construct water-related infrastructure and purchase water sourced from land that we own. The revenue streams of this segment consist of revenues from direct sales of water and to a lesser extent, easements and sundry income and royalties on sales of water.

Segment financial results were as follows (in thousands):



油	Years Ended December 31,
油	2018		油	2017		油	2016
Revenues:	油		油	油		油	油
Land and resource management	$	211,476	油	$	123,340	油	$	57,984
Water service and operations	88,744		油	31,294		油	8,125
Total consolidated revenues	$	300,220	油	$	154,634	油	$	66,109
油	油		油	油		油	油
Net income:	油		油	油		油	油
Land and resource management	$	159,611	油	$	78,468	油	$	37,049
Water service and operations	50,125		油	18,763		油	5,226
Total consolidated net income	$	209,736	油	$	97,231	油	$	42,275
油	油		油	油		油	油
Capital Expenditures:	油		油	油		油	油
Land and resource management	$	2,790	油	$	920	油	$	478
Water service and operations	45,088		油	17,827		油	499
Total capital expenditures	$	47,878	油	$	18,747	油	$	977
油	油		油	油		油	油
Depreciation and amortization:	油		油	油		油	油
Land and resource management	$	506	油	$	136	油	$	24
Water service and operations	2,077		油	240		油	19
Total depreciation and amortization	$	2,583	油	$	376	油	$	43



油	December 31, 2018		油	December 31, 2017
Total Assets:	油		油	油
Land and resource management	$	198,922	油	$	97,549
Water service and operations	86,153		油	22,486
Total consolidated assets	$	285,075	油	$	120,035
Property, plant and equipment, net:	油		油	油
Land and resource management	$	3,720	油	$	1,449
Water service and operations	61,082		油	18,067
Total consolidated property, plant and equipment, net	$	64,802	油	$	19,516