| Schedule of Segment Financial Results |
The following tables present segment financial results for Land and Resource Management (“LRMâ€�) and Water Services and Operations (“WSOâ€�) and the reconciliation to consolidated financial results for the three and six months ended JuneÌý30, 2026 and 2025 (in thousands):
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Three Months Ended June 30, |
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2026 |
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2025 |
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LRM |
|
WSO |
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Consolidated |
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LRM |
|
WSO |
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Consolidated |
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| Revenues: |
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| Oil and gas royalties |
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$ |
145,589Ìý |
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$ |
—Ìý |
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$ |
145,589Ìý |
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$ |
95,006Ìý |
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$ |
—Ìý |
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$ |
95,006Ìý |
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| Water sales |
|
—Ìý |
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|
39,733Ìý |
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|
39,733Ìý |
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|
—Ìý |
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|
25,577Ìý |
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25,577Ìý |
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| Produced water royalties |
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—Ìý |
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37,075Ìý |
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37,075Ìý |
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—Ìý |
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|
30,737Ìý |
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30,737Ìý |
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| Easements and other surface-related income |
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18,278Ìý |
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|
5,384Ìý |
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23,662Ìý |
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33,491Ìý |
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2,732Ìý |
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36,223Ìý |
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| Land sales |
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—Ìý |
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|
—Ìý |
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|
—Ìý |
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|
—Ìý |
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|
—Ìý |
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—Ìý |
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| Total revenues |
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163,867Ìý |
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82,192Ìý |
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|
246,059Ìý |
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128,497Ìý |
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59,046Ìý |
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187,543Ìý |
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| Expenses: |
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| Salaries and related employee expenses |
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8,347Ìý |
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7,215Ìý |
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15,562Ìý |
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7,025Ìý |
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7,047Ìý |
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14,072Ìý |
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| Water service-related expenses |
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—Ìý |
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|
11,570Ìý |
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|
11,570Ìý |
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—Ìý |
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|
8,451Ìý |
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8,451Ìý |
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| General and administrative expenses |
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5,245Ìý |
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|
2,759Ìý |
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|
8,004Ìý |
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3,648Ìý |
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2,045Ìý |
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5,693Ìý |
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| Depreciation, depletion and amortization |
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11,695Ìý |
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4,944Ìý |
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16,639Ìý |
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9,137Ìý |
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4,562Ìý |
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13,699Ìý |
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| Ad valorem and other taxes |
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2,279Ìý |
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|
188Ìý |
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2,467Ìý |
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|
1,864Ìý |
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|
13Ìý |
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1,877Ìý |
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| Total operating expenses |
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27,566Ìý |
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26,676Ìý |
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54,242Ìý |
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21,674Ìý |
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22,118Ìý |
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43,792Ìý |
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| Operating income |
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136,301Ìý |
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55,516Ìý |
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191,817Ìý |
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106,823Ìý |
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36,928Ìý |
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143,751Ìý |
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| Interest expense |
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(779) |
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(194) |
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(973) |
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—Ìý |
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—Ìý |
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—Ìý |
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| Other income, net |
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2,140Ìý |
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|
714Ìý |
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2,854Ìý |
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4,156Ìý |
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1,084Ìý |
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5,240Ìý |
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| Income before income taxes |
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137,662Ìý |
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|
56,036Ìý |
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193,698Ìý |
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110,979Ìý |
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38,012Ìý |
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148,991Ìý |
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| Income tax expense |
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28,230Ìý |
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11,538Ìý |
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|
39,768Ìý |
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24,410Ìý |
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8,441Ìý |
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32,851Ìý |
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| Net income |
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$ |
109,432Ìý |
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$ |
44,498Ìý |
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$ |
153,930Ìý |
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$ |
86,569Ìý |
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$ |
29,571Ìý |
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$ |
116,140Ìý |
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Six Months Ended June 30, |
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2026 |
|
2025 |
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|
LRM |
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WSO |
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Consolidated |
|
LRM |
|
WSO |
|
Consolidated |
| Revenues: |
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| Oil and gas royalties |
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$ |
263,756Ìý |
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$ |
—Ìý |
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$ |
263,756Ìý |
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$ |
206,251Ìý |
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$ |
—Ìý |
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$ |
206,251Ìý |
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| Water sales |
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—Ìý |
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|
86,596Ìý |
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86,596Ìý |
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|
—Ìý |
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|
64,390Ìý |
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64,390Ìý |
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| Produced water royalties |
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—Ìý |
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|
70,604Ìý |
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70,604Ìý |
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|
—Ìý |
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|
58,437Ìý |
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58,437Ìý |
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| Easements and other surface-related income |
|
32,727Ìý |
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|
8,250Ìý |
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|
40,977Ìý |
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48,827Ìý |
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5,621Ìý |
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|
54,448Ìý |
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| Land sales |
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20,944Ìý |
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|
—Ìý |
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20,944Ìý |
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|
—Ìý |
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|
—Ìý |
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|
—Ìý |
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| Total revenues |
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317,427Ìý |
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|
165,450Ìý |
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482,877Ìý |
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255,078Ìý |
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128,448Ìý |
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383,526Ìý |
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| Expenses: |
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| Salaries and related employee expenses |
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15,905Ìý |
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14,644Ìý |
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30,549Ìý |
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14,429Ìý |
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14,215Ìý |
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28,644Ìý |
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| Water service-related expenses |
|
—Ìý |
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|
25,857Ìý |
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25,857Ìý |
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—Ìý |
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19,577Ìý |
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19,577Ìý |
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| General and administrative expenses |
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10,740Ìý |
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5,895Ìý |
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16,635Ìý |
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6,961Ìý |
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4,804Ìý |
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11,765Ìý |
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| Depreciation, depletion and amortization |
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20,889Ìý |
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|
9,793Ìý |
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30,682Ìý |
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16,826Ìý |
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8,814Ìý |
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25,640Ìý |
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| Ad valorem and other taxes |
|
4,809Ìý |
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|
200Ìý |
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|
5,009Ìý |
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4,053Ìý |
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|
23Ìý |
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4,076Ìý |
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| Total operating expenses |
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52,343Ìý |
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56,389Ìý |
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108,732Ìý |
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42,269Ìý |
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47,433Ìý |
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89,702Ìý |
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| Operating income |
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265,084Ìý |
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|
109,061Ìý |
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374,145Ìý |
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212,809Ìý |
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81,015Ìý |
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293,824Ìý |
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| Interest expense |
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(1,572) |
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|
(393) |
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|
(1,965) |
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|
—Ìý |
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|
—Ìý |
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|
—Ìý |
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| Other income, net |
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3,721Ìý |
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1,361Ìý |
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5,082Ìý |
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7,572Ìý |
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1,989Ìý |
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9,561Ìý |
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| Income before income taxes |
|
267,233Ìý |
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110,029Ìý |
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377,262Ìý |
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|
220,381Ìý |
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|
83,004Ìý |
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|
303,385Ìý |
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| Income tax expense |
|
56,878Ìý |
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|
23,552Ìý |
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|
80,430Ìý |
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|
48,268Ìý |
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|
18,325Ìý |
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|
66,593Ìý |
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| Net income |
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$ |
210,355Ìý |
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$ |
86,477Ìý |
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$ |
296,832Ìý |
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$ |
172,113Ìý |
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$ |
64,679Ìý |
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$ |
236,792Ìý |
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| Schedule of Total Assets and Property, Plant and Equipment |
The following tables present purchases of fixed assets, total assets and property, plant and equipment, net by segment for the periods presented (in thousands):
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
| Purchases of Fixed Assets: |
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| Land and resource management |
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$ |
76Ìý |
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$ |
161Ìý |
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$ |
293Ìý |
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$ |
164Ìý |
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| Water services and operations |
|
20,847Ìý |
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|
3,647Ìý |
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|
27,548Ìý |
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|
13,552Ìý |
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| Total purchases of fixed assets |
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$ |
20,923Ìý |
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$ |
3,808Ìý |
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$ |
27,841Ìý |
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$ |
13,716Ìý |
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June 30, 2026 |
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December 31, 2025 |
| Assets: |
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| Land and resource management |
|
$ |
1,569,215Ìý |
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|
$ |
1,332,180Ìý |
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| Water services and operations |
|
290,259Ìý |
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|
291,098Ìý |
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| Total consolidated assets |
|
$ |
1,859,474Ìý |
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$ |
1,623,278Ìý |
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| Property, plant and equipment, net: |
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| Land and resource management |
|
$ |
7,050Ìý |
|
|
$ |
7,336Ìý |
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| Water services and operations |
|
175,827Ìý |
|
|
157,202Ìý |
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| Total consolidated property, plant and equipment, net |
|
$ |
182,877Ìý |
|
|
$ |
164,538Ìý |
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|