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Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.23.3
Business Segment Reporting
 9 Months Ended
Sep. 30, 2023
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 868,000 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.
egment financial results for the three and nine months ended SeptemberÌý30, 2023 and 2022 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2023 2022 2023 2022
Revenues:
Land and resource management $ 109,933Ìý $ 147,215Ìý $ 315,276Ìý $ 393,947Ìý
Water services and operations 48,034Ìý 43,896Ìý 149,662Ìý 120,769Ìý
Total consolidated revenues $ 157,967Ìý $ 191,111Ìý $ 464,938Ìý $ 514,716Ìý
Net income:
Land and resource management $ 82,884Ìý $ 108,188Ìý $ 217,860Ìý $ 285,418Ìý
Water services and operations 22,690Ìý 21,649Ìý 74,675Ìý 61,213Ìý
Total consolidated net income $ 105,574Ìý $ 129,837Ìý $ 292,535Ìý $ 346,631Ìý
Capital expenditures:
Land and resource management $ 47Ìý $ 114Ìý $ 191Ìý $ 339Ìý
Water services and operations 5,196Ìý 1,694Ìý 10,196Ìý 11,816Ìý
Total capital expenditures $ 5,243Ìý $ 1,808Ìý $ 10,387Ìý $ 12,155Ìý
Depreciation, depletion and amortization:
Land and resource management $ 703Ìý $ 567Ìý $ 2,233Ìý $ 1,632Ìý
Water services and operations 2,881Ìý 3,350Ìý 8,648Ìý 10,591Ìý
Total depreciation, depletion and amortization $ 3,584Ìý $ 3,917Ìý $ 10,881Ìý $ 12,223Ìý

The following table presents total assets and property, plant and equipment, net by segment as of SeptemberÌý30, 2023 and December 31, 2022 (in thousands):
Ìý September 30,
2023		 December 31,
2022
Assets: Ìý Ìý
Land and resource management $ 900,508Ìý $ 735,193Ìý
Water services and operations 178,810Ìý 142,234Ìý
Total consolidated assets $ 1,079,318Ìý $ 877,427Ìý
Property, plant and equipment, net: Ìý Ìý
Land and resource management $ 5,464Ìý $ 5,998Ìý
Water services and operations 81,136Ìý 79,480Ìý
Total consolidated property, plant and equipment, net $ 86,600Ìý $ 85,478Ìý