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]  
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 2018    2019 2018
Revenues:
Land and resource management
 $ 65,076    $ 47,513    $ 284,223    $ 142,642   
Water services and operations
 33,454    25,655    92,941    64,377   
Total consolidated revenues $ 98,530    $ 73,168    $ 377,164    $ 207,019   
Net income:
Land and resource management
 $ 43,911    $ 36,385    $ 204,222    $ 109,700   
Water services and operations
 16,111    14,377    45,384    37,356   
Total consolidated net income $ 60,022    $ 50,762    $ 249,606    $ 147,056   
Capital expenditures:
Land and resource management
 $ 29    $ 909    $ 1,445    $ 2,464   
Water services and operations
 4,949    7,533    26,134    37,542   
Total capital expenditures $ 4,978    $ 8,442    $ 27,579    $ 40,006   
Depreciation and amortization:
Land and resource management
 $ 257    $ 160    $ 695    $ 330   
Water services and operations
 2,374    546    4,591    1,189   
Total depreciation and amortization $ 2,631    $ 706    $ 5,286    $ 1,519   

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
 $ 398,120    $ 198,922   
Water services and operations
 123,874    86,153   
Total consolidated assets $ 521,994    $ 285,075   
Property, plant and equipment, net:
Land and resource management
 $ 4,470    $ 3,720   
Water services and operations
 82,602    61,082   
Total consolidated property, plant and equipment, net $ 87,072    $ 64,802