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Business Segment Reporting
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2026 and 2025.

The Land and Resource Management segment encompasses the business of managing our approximately 894,000 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 tables present segment financial results for Land and Resource Management (“LRM”) and Water Services and Operations (“WSO”) and the reconciliation to consolidated financial results for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,
20262025
LRMWSOConsolidatedLRMWSOConsolidated
Revenues:
Oil and gas royalties$145,589 $— $145,589 $95,006 $— $95,006 
Water sales— 39,733 39,733 — 25,577 25,577 
Produced water royalties— 37,075 37,075 — 30,737 30,737 
Easements and other surface-related income18,278 5,384 23,662 33,491 2,732 36,223 
Land sales— — — — — — 
Total revenues163,867 82,192 246,059 128,497 59,046 187,543 
Expenses:
Salaries and related employee expenses8,347 7,215 15,562 7,025 7,047 14,072 
Water service-related expenses— 11,570 11,570 — 8,451 8,451 
General and administrative expenses5,245 2,759 8,004 3,648 2,045 5,693 
Depreciation, depletion and amortization11,695 4,944 16,639 9,137 4,562 13,699 
Ad valorem and other taxes2,279 188 2,467 1,864 13 1,877 
Total operating expenses27,566 26,676 54,242 21,674 22,118 43,792 
Operating income136,301 55,516 191,817 106,823 36,928 143,751 
Interest expense(779)(194)(973)— — — 
Other income, net2,140 714 2,854 4,156 1,084 5,240 
Income before income taxes137,662 56,036 193,698 110,979 38,012 148,991 
Income tax expense28,230 11,538 39,768 24,410 8,441 32,851 
Net income$109,432 $44,498 $153,930 $86,569 $29,571 $116,140 
Six Months Ended June 30,
20262025
LRMWSOConsolidatedLRMWSOConsolidated
Revenues:
Oil and gas royalties$263,756 $— $263,756 $206,251 $— $206,251 
Water sales— 86,596 86,596 — 64,390 64,390 
Produced water royalties— 70,604 70,604 — 58,437 58,437 
Easements and other surface-related income32,727 8,250 40,977 48,827 5,621 54,448 
Land sales20,944 — 20,944 — — — 
Total revenues317,427 165,450 482,877 255,078 128,448 383,526 
Expenses:
Salaries and related employee expenses15,905 14,644 30,549 14,429 14,215 28,644 
Water service-related expenses— 25,857 25,857 — 19,577 19,577 
General and administrative expenses10,740 5,895 16,635 6,961 4,804 11,765 
Depreciation, depletion and amortization20,889 9,793 30,682 16,826 8,814 25,640 
Ad valorem and other taxes4,809 200 5,009 4,053 23 4,076 
Total operating expenses52,343 56,389 108,732 42,269 47,433 89,702 
Operating income265,084 109,061 374,145 212,809 81,015 293,824 
Interest expense(1,572)(393)(1,965)— — — 
Other income, net3,721 1,361 5,082 7,572 1,989 9,561 
Income before income taxes267,233 110,029 377,262 220,381 83,004 303,385 
Income tax expense56,878 23,552 80,430 48,268 18,325 66,593 
Net income$210,355 $86,477 $296,832 $172,113 $64,679 $236,792 

Interest income by segment is included in other income, net in the tables 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
June 30,		Six Months Ended
June 30,
2026202520262025
Purchases of Fixed Assets:
Land and resource management$76 $161 $293 $164 
Water services and operations20,847 3,647 27,548 13,552 
Total purchases of fixed assets$20,923 $3,808 $27,841 $13,716 

June 30,
2026		December 31,
2025
Assets:
Land and resource management$1,569,215 $1,332,180 
Water services and operations290,259 291,098 
Total consolidated assets$1,859,474 $1,623,278 
Property, plant and equipment, net:
Land and resource management$7,050 $7,336 
Water services and operations175,827 157,202 
Total consolidated property, plant and equipment, net$182,877 $164,538