Forestar Group Inc. is a real estate, oil and gas, and other natural resources company based in Austin, Texas. The company owns directly or through ventures almost 120,000 acres (49,000 ha) of real estate located in ten states and 13 markets, approximately 590,000 acres of oil and gas mineral interests and approximately 358,000 net acres of leasehold oil and gas interests.

The company operates three business segments: Real Estate, Oil and Gas, and Other Natural Resources.

The real estate segment secures entitlements and develops infrastructure on its lands, primarily for single-family residential and mixed-use communities, and develops multi-family apartments. Forestar invests in new projects in strategic growth corridors, which represent markets with significant growth characteristics for population, employment and household formation that make them attractive for long-term real estate investment.

The real estate segment has 11 real estate projects representing approximately 24,400 acres currently in the entitlement process, and 73 projects entitled, developed, or under development in eight states and 13 markets. The company sells land for commercial uses to national retailers and local commercial developers. In addition, the company will sell its undeveloped land, principally in Georgia, when it has reached its highest and best use. The company markets land for sale on its web site.

The oil and gas segment is focused on driving exploration and production activity in high quality, lower risk conventional and unconventional oil and gas prospects on its fee and leasehold mineral interests. Leasehold interests include acreage in the Bakken and Three Forks formations. Forestar also seeks to maximize the value from royalties and other lease revenues from its fee oil and gas mineral interests located in Texas, Louisiana, Alabama, and Georgia.

Other natural resources includes the sale of wood fiber, primarily in Georgia, and manages the company’s recreational leases, and approximately 1.5 million acres of groundwater resources including a 45% nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes from approximately 1.4 million acres in Texas, Louisiana, Georgia and Alabama and about 20,000 acres of groundwater leases in Central Texas.

The company’s origins date back to the 1955 incorporation of Lumbermen’s Investment Corporation, which in 2006 changed its name to Forestar (USA) Real Estate Group Inc. The company has a long legacy of residential and commercial real estate development operations, primarily in Texas. In 1991, Forestar and Cousins Properties Incorporated formed Temco Associates, LLC as a venture to develop residential sites in Paulding County, Georgia, and in 2002 Forestar and Cousins formed CL Realty, L.L.C. as a venture to develop residential and mixed-use communities in Texas and across the southeastern U.S. Those ventures continue today. In 2001, Forestar opened an office in the Atlanta area to manage nearby land with a focus on its long-term real estate development potential. In 2006, Temple-Inland Inc. began reporting Forestar Real Estate Group as a separate business segment. On December 28, 2007, Temple-Inland distributed 100% of the issued and outstanding shares of Forestar’s common stock to its shareholders. In September 2012, Forestar acquired CREDO Petroleum, an oil and gas exploration, development and production company with leasehold interests in over 135,000 net mineral acres.