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