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Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.19.3
Business Segment Reporting
 9 Months Ended
Sep. 30, 2019
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 a full-service water offering to operators in the Permian Basin. The revenue streams of this segment consist of revenue generated from direct sales of sourced and treated water as well as revenues from royalties on water service-related activity.
Segment financial results were as follows for the three and nine months ended September 30, 2019 and 2018 (in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2019 2018Ìý Ìý 2019 2018
Revenues:
Land and resource management
 $ 65,076Ìý Ìý $ 47,513Ìý Ìý $ 284,223Ìý Ìý $ 142,642Ìý Ìý
Water services and operations
 33,454Ìý Ìý 25,655Ìý Ìý 92,941Ìý Ìý 64,377Ìý Ìý
Total consolidated revenues $ 98,530Ìý Ìý $ 73,168Ìý Ìý $ 377,164Ìý Ìý $ 207,019Ìý Ìý
Net income:
Land and resource management
 $ 43,911Ìý Ìý $ 36,385Ìý Ìý $ 204,222Ìý Ìý $ 109,700Ìý Ìý
Water services and operations
 16,111Ìý Ìý 14,377Ìý Ìý 45,384Ìý Ìý 37,356Ìý Ìý
Total consolidated net income $ 60,022Ìý Ìý $ 50,762Ìý Ìý $ 249,606Ìý Ìý $ 147,056Ìý Ìý
Capital expenditures:
Land and resource management
 $ 29Ìý Ìý $ 909Ìý Ìý $ 1,445Ìý Ìý $ 2,464Ìý Ìý
Water services and operations
 4,949Ìý Ìý 7,533Ìý Ìý 26,134Ìý Ìý 37,542Ìý Ìý
Total capital expenditures $ 4,978Ìý Ìý $ 8,442Ìý Ìý $ 27,579Ìý Ìý $ 40,006Ìý Ìý
Depreciation and amortization:
Land and resource management
 $ 257Ìý Ìý $ 160Ìý Ìý $ 695Ìý Ìý $ 330Ìý Ìý
Water services and operations
 2,374Ìý Ìý 546Ìý Ìý 4,591Ìý Ìý 1,189Ìý Ìý
Total depreciation and amortization $ 2,631Ìý Ìý $ 706Ìý Ìý $ 5,286Ìý Ìý $ 1,519Ìý Ìý

The following table presents total assets and property, plant and equipment, net by segment as of September 30, 2019 and December 31, 2018 (in thousands):
September 30, 2019 December 31, 2018
Assets:
Land and resource management
 $ 398,120Ìý Ìý $ 198,922Ìý Ìý
Water services and operations
 123,874Ìý Ìý 86,153Ìý Ìý
Total consolidated assets $ 521,994Ìý Ìý $ 285,075Ìý Ìý
Property, plant and equipment, net:
Land and resource management
 $ 4,470Ìý Ìý $ 3,720Ìý Ìý
Water services and operations
 82,602Ìý Ìý 61,082Ìý Ìý
Total consolidated property, plant and equipment, net $ 87,072Ìý Ìý $ 64,802Ìý Ìý