The company is investing in the Water Services and Operations segment, including the development of a patented energy-efficient desalination and treatment process. Cumulatively through March 31, 2025, $12.7 million has been spent on this new process and equipment.

During the three months ended March 31, 2025, the company acquired oil and gas royalty interests in 177 NRA for a purchase price of approximately $3.5 million, net of post-close adjustments.

There were no land sales for the three months ended March 31, 2025. For the three months ended March 31, 2024, we sold 41 acres of land in Texas for an aggregate sales price of $1.2 million.

The CEO and CFO have concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025.

There have been no changes during the quarter ended March 31, 2025 in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

The company paid $37.4 million in dividends to stockholders during the three months ended March 31, 2025. The company has set a target to maintain a cash and cash equivalents balance of approximately $700 million, and will seek to deploy the majority of free cash flow above this target towards returning capital to stockholders.

There have been no material changes in the risk factors previously disclosed in response to Part I, Item 1A. "Risk Factors" set forth in the 2024 Annual Report.

As a significant landowner in the Permian Basin and not an oil and gas producer, the company's revenue is affected by the development decisions made by companies that operate in the areas where it owns royalty interests and land.

The growth in water sales was principally due to an increase of 14.0% in water sales volumes for the three months ended March 31, 2025, compared to the same period of 2024.

The company is developing a patented energy-efficient desalination and treatment process and associated equipment that can recycle produced water into fresh water. Cumulatively through March 31, 2025, $12.7 million has been spent on this new process and equipment.

The company paid $37.4 million in dividends to stockholders during the three months ended March 31, 2025.

There were no repurchases of shares of Common Stock during the three months ended March 31, 2025.

During the three months ended March 31, 2025, the company invested approximately $9.9 million to maintain and/or enhance water sourcing assets.

In 2024, we announced our progress towards developing a patented energy-efficient desalination and treatment process and associated equipment that can recycle produced water into fresh water with quality standards appropriate for surface discharge and beneficial reuse.

Average WTI oil prices for the three months ended March 31, 2025 were down approximately 7% compared to average oil prices during the same period last year. Average Henry Hub natural gas prices during 2025 have increased approximately 93% compared to average prior year natural gas prices.

E&P companies operating in the Permian Basin continue to maintain robust drilling and development activity. Per the U.S. Energy Information Administration, Permian production is currently in excess of 6.5 million barrels per day.