Business Segment Reporting

3 Months Ended

Mar. 31, 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 full-service water offering to operators in the Permian Basin. The revenue streams of this segment consist of revenue generated from sales of sourced and treated water as well as revenue from royalties on water service-related activity.

Segment financial results were as follows for the three months ended March 31, 2020 and 2019 (in thousands):

	Three Months Ended March 31,
	2020		2019
Revenues:
Land and resource management	$	56,658	$	160,459
Water services and operations	39,936		30,865
Total consolidated revenues	$	96,594	$	191,324
Net income:
Land and resource management	$	39,118	$	123,117
Water services and operations	18,283		16,881
Total consolidated net income	$	57,401	$	139,998
Capital expenditures:
Land and resource management	$	88	$	534
Water services and operations	3,529		8,713
Total capital expenditures	$	3,617	$	9,247
Depreciation, depletion and amortization:
Land and resource management	$	337	$	177
Water services and operations	2,998		1,027
Total depreciation, depletion and amortization	$	3,335	$	1,204

The following table presents total assets and property, plant and equipment, net by segment as of March 31, 2020 and December 31, 2019 (in thousands):

	March 31, 2020		December 31, 2019
Assets:
Land and resource management	$	396,004	$	467,758
Water services and operations	148,645		130,418
Total consolidated assets	$	544,649	$	598,176
Property, plant and equipment, net:
Land and resource management	$	4,211	$	4,359
Water services and operations	84,498		83,964
Total consolidated property, plant and equipment, net	$	88,709	$	88,323