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LONG-TERM WATER ASSETS | 6 Months Ended
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Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract] |
LONG-TERM WATER ASSETS | LONG-TERM WATER ASSETS Long-term water assets consist of water and water purchase contracts held for future use or sale. The water is held at cost, which includes the price paid for the water and the cost to pump and deliver the water from the California aqueduct into the water bank. Water is currently held in a water bank on Company land in southern Kern County and by TCWD in Kern County Water Banks. The Company has secured SWP water purchase contracts from the Tulare Lake Basin Water Storage District and the Dudley-Ridge Water District, totaling 3,444 acre-feet of SWP water annually, subject to SWP allocations. These contracts extend through 2085 and have been transferred to AVEK for the Company's use in the Antelope Valley. In 2013, the Company acquired a contract to purchase water that obligates the Company to purchase 6,693 acre-feet of water each year from the Nickel Family, LLC, or Nickel, a California limited liability company that is located in Kern County. The initial term of the water purchase agreement with Nickel runs to 2044 and includes a Company option to extend the contract for an additional 35 years. The purchase cost of water in 2026 is $1,021 per acre-foot. The purchase cost is subject to annual cost increases based on the greater of the Consumer Price Index or 3%. The water purchased above will ultimately be used in the development of the Company’s land for commercial/industrial real estate development, resort/residential real estate development, and farming. Interim uses may include the sale of portions of this water to third-party users on an annual basis until this water is fully allocated to Company uses, as just described. Water revenues and cost of sales were as follows for the six months ended ($ in thousands):
| June 30, 2026 |  | June 30, 2025
Acre-Feet Sold | 2,310 |  |  | 1,100 |
Revenues | $ | 2,291 |  |  | $ | 1,468 |
Cost of sales | 1,741 |  |  | 1,183 |
Profit | $ | 550 |  |  | $ | 285 |
Costs assigned to water assets held for future use were as follows ($ in thousands):
| June 30, 2026 |  | December 31, 2025
Banked water and water for future delivery | $ | 42,622 |  |  | $ | 44,681 |
Transferable water | 7,205 |  |  | 266 |
Total water held for future use at cost | $ | 49,827 |  |  | $ | 44,947 |
Intangible Water Assets The Company’s carrying amounts of its purchased water contracts were as follows ($ in thousands):
| June 30, 2026 |  | December 31, 2025
| Costs |  | Accumulated Depreciation |  | Costs |  | Accumulated Depreciation
Dudley-Ridge water purchase contract * | $ | 11,581 |  |  | $ | (7,479) |  |  | $ | 11,581 |  |  | $ | (7,237) |
Nickel water purchase contract * | 18,740 |  |  | (8,139) |  |  | 18,740 |  |  | (7,817) |
Tulare Lake Basin water purchase contract * | 6,479 |  |  | (4,219) |  |  | 6,479 |  |  | (4,100) |
| $ | 36,800 |  |  | $ | (19,837) |  |  | $ | 36,800 |  |  | $ | (19,154) |
Net cost of purchased water contracts | 16,963 |  |  |  |  | 17,646 |  |  |
Total cost of water held for future use | 49,827 |  |  |  |  | 44,947 |  |  |
Net investments in water assets | $ | 66,790 |  |  |  |  | $ | 62,593 |  |  |
*All water purchase contracts were acquired from third parties.
Water contracts with WRMWSD and TCWD are also in place, but were entered into with each district at inception of the contract and not purchased later from third parties, and do not have a related financial value on the books of the Company. Therefore, there is no amortization expense related to these contracts. Total water resources, including both recurring and one-time usage are:
(in acre-feet, unaudited) | June 30, 2026 |  | December 31, 2025
Water held for future use |  |  |
TCWD - Banked water owned by the Company | 61,341 |  |  | 65,199 |
Company water bank | 54,728 |  |  | 54,728 |
Transferable water | 7,262 |  |  | 265 |
Recharged water | 6,797 |  |  | 6,797 |
Total water held for future use | 130,128 |  |  | 126,989 |
Purchased water contracts |  |  |
Water Contracts (Dudley-Ridge, Nickel and Tulare) | 10,137 |  |  | 10,137 |
WRMWSD - Contracts with the Company | 15,547 |  |  | 15,547 |
TCWD - Contracts with the Company | 5,749 |  |  | 5,749 |
Total purchased water contracts | 31,433 |  |  | 31,433 |
Total water held for future use and purchased water contracts | 161,561 |  |  | 158,422 |

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