Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

8.Related Party Transactions

		Three Months Ended June 30,				Six Months Ended June 30,
	Financial Statements Location	2024		2023		2024		2023
Revenues - Related Party
Affiliate access agreements	Resource sales	$	179	$	404	$	272	$	1,488
Affiliate access agreements	Easements and other surface-related revenues	$	2,376	$	3,274	$	2,759	$	3,857
Affiliate access agreements	Surface use royalties	$	3,667	$	895	$	6,275	$	1,774
Affiliate access agreements	Resource royalties	$	1,107	$	-	$	1,107	$	-

	Financial Statements Location	June 30, 2024		December 31, 2023
Accounts Receivable - Related Party
Affiliate access agreements	Related party receivable	$	2,862	$	1,037
Accounts Payable - Related Party
Shared services agreement	Related party payable	$	498	$	453

Shared Services Agreement

The Company has a services agreement with certain affiliates consisting of NDB, WaterBridge Holdings LLC and its subsidiaries, WaterBridge NDB Operating LLC and its subsidiaries, and Desert Environmental LLC and its subsidiaries, pursuant to which it receives common management and general, administrative, overhead, and operating services in support of the Company’s operations and development activities. The Company is required to reimburse all fees incurred by it that are necessary to perform services under the agreement. For shared services, the basis of allocation is an approximation of time spent on activities supporting the Company. For shared costs paid on behalf the Company, the costs are directly allocated to it based on its pro rata share of the expenses. For the three months ended June 30, 2024 and 2023, the Company paid approximately $1.0 million and $1.1 million for the shared services and direct cost reimbursements, respectively. For the six months ended June 30, 2024 and 2023, the Company paid approximately $2.1 million and $2.9 million for the shared services and direct cost reimbursements, respectively.

Affiliate Facility Access Agreements

The Company is party to facility access and surface use agreements, including easements and rights-of-way, with certain affiliates. Under these agreements, the Company has granted the affiliates certain rights to construct, operate and maintain produced water, brackish water and waste reclamation facilities on our land in the ordinary course of business. These agreements include a standard fee schedule and provision for specified surface use activities. The agreements also include a provision for royalties related to certain specified activities.

Equity Sponsor Services Agreement

Five Point invoices the Company, and the Company reimburses Five Point in cash, for expenses associated with the Company’s use of Five Point’s geographic information system (“GIS”) and certain legal services provided by Five Point. The reimbursement includes allocated Five Point personnel costs and third-party software and hardware expenses and is determined based on the Company’s use of Five Point’s total services for such period. For the three months ended June 30, 2024 and 2023, the GIS and legal services reimbursements paid were $0.1 million and an immaterial amount, respectively. For the six months ended June 30, 2024 and 2023, the GIS and legal services reimbursements paid were $0.2 million and $0.1 million, respectively. As of June 30, 2024 and December 31, 2023, the Company had an immaterial amount due to these entities.