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Annual report pursuant to Section 13 and 15(d)

Business Segment Reporting

v3.22.4
Business Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract] Ìý
Business Segment Reporting Business Segment Reporting
Ìý
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 our strategies and objectives and provide a framework for timely and rational allocation of resources within businesses. We eliminate any inter-segment revenues and expenses upon consolidation.
Ìý
The Land and Resource Management segment encompasses the business of managing our approximately 874,000 surface acres of land and our oil and gas royalty interests in West Texas, principally concentrated in the Permian Basin. 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 a full-service water offering to operators in the Permian Basin. The revenue streams of this segment primarily consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties.
Segment financial results were as follows (in thousands):
Ìý Years Ended December 31,
Ìý 2022 2021 2020
Revenues: Ìý Ìý Ìý
Land and resource management $ 506,975Ìý $ 320,387Ìý $ 195,142Ìý
Water services and operations 160,447Ìý 130,571Ìý 107,422Ìý
Total consolidated revenues $ 667,422Ìý $ 450,958Ìý $ 302,564Ìý
Net income: Ìý Ìý Ìý
Land and resource management $ 365,041Ìý $ 208,897Ìý $ 127,977Ìý
Water services and operations 81,321Ìý 61,083Ìý 48,072Ìý
Total consolidated net income $ 446,362Ìý $ 269,980Ìý $ 176,049Ìý
Capital Expenditures: Ìý Ìý Ìý
Land and resource management $ 393Ìý $ 4,688Ìý $ 152Ìý
Water services and operations 18,574Ìý 11,727Ìý 4,934Ìý
Total capital expenditures $ 18,967Ìý $ 16,415Ìý $ 5,086Ìý
Depreciation, depletion and amortization: Ìý Ìý Ìý
Land and resource management $ 2,234Ìý $ 2,397Ìý $ 1,514Ìý
Water services and operations
 13,142Ìý 13,860Ìý 12,881Ìý
Total depreciation, depletion and amortization $ 15,376Ìý $ 16,257Ìý $ 14,395Ìý

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

Ìý December 31, 2022 December 31, 2021
Assets: Ìý Ìý
Land and resource management $ 735,193Ìý $ 635,338Ìý
Water services and operations 142,234Ìý 128,726Ìý
Total consolidated assets $ 877,427Ìý $ 764,064Ìý
Property, plant and equipment, net: Ìý Ìý
Land and resource management $ 5,998Ìý $ 6,639Ìý
Water services and operations 79,480Ìý 73,083Ìý
Total consolidated property, plant and equipment, net $ 85,478Ìý $ 79,722Ìý