Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.20.2
Business Segment Reporting
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
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 principally 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 for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended
June 30,		 Six Months Ended
June 30,
2020 2019 2020 2019
Revenues:
Land and resource management
 $ 32,881    $ 58,688    $ 89,539    $ 219,147   
Water services and operations
 21,687    28,622    61,623    59,487   
Total consolidated revenues $ 54,568    $ 87,310    $ 151,162    $ 278,634   
Net income:
Land and resource management
 $ 18,721    $ 37,194    $ 57,839    $ 160,311   
Water services and operations
 8,862    12,392    27,145    29,273   
Total consolidated net income $ 27,583    $ 49,586    $ 84,984    $ 189,584   
Capital expenditures:
Land and resource management
 $ 33    $ 881    $ 121    $ 1,415   
Water services and operations
 323    12,472    3,852    21,185   
Total capital expenditures $ 356    $ 13,353    $ 3,973    $ 22,600   
Depreciation, depletion and amortization:
Land and resource management
 $ 350    $ 261    $ 687    $ 438   
Water services and operations
 3,328    1,190    6,326    2,217   
Total depreciation, depletion and amortization $ 3,678    $ 1,451    $ 7,013    $ 2,655   
The following table presents total assets and property, plant and equipment, net by segment as of June 30, 2020 and December 31, 2019 (in thousands):
June 30, 2020 December 31, 2019
Assets:
Land and resource management
 $ 432,912    $ 467,758   
Water services and operations
 120,688    130,418   
Total consolidated assets $ 553,600    $ 598,176   
Property, plant and equipment, net:
Land and resource management
 $ 3,976    $ 4,359   
Water services and operations
 81,501    83,964   
Total consolidated property, plant and equipment, net $ 85,477    $ 88,323