v3.26.1
Business Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segment Reporting Business Segment Reporting
 
During the periods presented, we reported our financial performance based on the following reportable segments: Land and Resource Management and Water Services and Operations. We eliminate inter-segment revenues and expenses, if any, upon consolidation. There were no inter-segment revenues for the three months ended March 31, 2026 and 2025.

The Land and Resource Management segment encompasses the business of managing our approximately 881,000 surface acres of land and our approximately 224,000 NRA of oil and gas royalty interests, principally concentrated in the Permian Basin. 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 primarily consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties.
The following table presents segment financial results for Land and Resource Management (“LRM”) and Water Service and Operations (“WSO”) and the reconciliation to consolidated financial results for the three months ended March 31, 2026 and 2025 (in thousands):
 Three Months Ended March 31,
 20262025
LRMWSOConsolidatedLRMWSOConsolidated
Revenues:
Oil and gas royalties$118,167 $— $118,167 $111,245 $— $111,245 
Water sales— 46,863 46,863 — 38,813 38,813 
Produced water royalties— 33,529 33,529 — 27,700 27,700 
Easements and other surface-related income14,449 2,866 17,315 15,336 2,889 18,225 
Land sale20,944 — 20,944 — — — 
Total revenues153,560 83,258 236,818 126,581 69,402 195,983 
Expenses:
Salaries and related employee expenses7,558 7,429 14,987 7,404 7,168 14,572 
Water service-related expenses— 14,287 14,287 — 11,126 11,126 
General and administrative expenses5,495 3,136 8,631 3,313 2,759 6,072 
Depreciation, depletion and amortization9,194 4,849 14,043 7,689 4,252 11,941 
Ad valorem and other taxes2,530 12 2,542 2,189 10 2,199 
Total operating expenses24,777 29,713 54,490 20,595 25,315 45,910 
Operating income128,783 53,545 182,328 105,986 44,087 150,073 
Interest expense(793)(199)(992)— — — 
Other income, net1,581 647 2,228 3,416 905 4,321 
Income before income taxes129,571 53,993 183,564 109,402 44,992 154,394 
Income tax expense28,648 12,014 40,662 23,858 9,884 33,742 
Net income$100,923 $41,979 $142,902 $85,544 $35,108 $120,652 

Interest income by segment is included in other income, net in the table above.
The following tables present purchases of fixed assets, total assets and property, plant and equipment, net by segment for the periods presented (in thousands):
Three Months Ended
March 31,
20262025
Purchases of Fixed Assets:
Land and resource management$217 $3 
Water services and operations6,701 9,905 
Total purchases of fixed assets$6,918 $9,908 

 March 31,
2026		December 31,
2025
Assets:  
Land and resource management$1,456,377 $1,332,180 
Water services and operations295,076 291,098 
Total consolidated assets$1,751,453 $1,623,278 
Property, plant and equipment, net:  
Land and resource management$7,263 $7,336 
Water services and operations159,488 157,202 
Total consolidated property, plant and equipment, net$166,751 $164,538